Utility Rate Regulation (Tables)

6 Months Ended

Jun. 30, 2022

Utility Rate Regulation [Line Items]

Regulatory Assets and Liabilities

The following table provides information about the regulatory assets and liabilities of cost-based rate-regulated utility operations.

	PPL				PPL Electric
	June 30, 2022		December 31, 2021		June 30, 2022		December 31, 2021
Current Regulatory Assets:
Gas supply clause	$	44	$	21	$	—	$	—
Rate adjustment mechanisms	77		—		—		—
Smart meter rider	6		11		6		11
Fuel adjustment clause	47		11		—		—
Other	24		21		5		11
Total current regulatory assets	$	198	$	64	$	11	$	22
Noncurrent Regulatory Assets:
Defined benefit plans	$	603	$	523	$	241	$	256
Plant outage costs	49		54		—		—
Net metering	51		—		—		—
Environmental cost recovery	102		—		—		—
Taxes recoverable through future rates	50		—		—		—
Storm costs	146		11		—		—
Unamortized loss on debt	22		24		3		4
Interest rate swaps	10		18		—		—
Terminated interest rate swaps	67		70		—		—
Accumulated cost of removal of utility plant	226		228		226		228
AROs	309		302		—		—
Other	46		6		—		—
Total noncurrent regulatory assets	$	1,681	$	1,236	$	470	$	488

	PPL				PPL Electric
	June 30, 2022		December 31, 2021		June 30, 2022		December 31, 2021
Current Regulatory Liabilities:
Generation supply charge	$	12	$	10	$	12	$	10
Transmission service charge	14		21		14		21
Universal service rider	—		17		—		17
TCJA customer refund	20		22		20		22
Act 129 compliance rider	15		10		15		10
Transmission formula rate return on equity (a)	8		73		8		73
Economic relief billing credit	—		27		—		—
Derivative instruments	55		—		—		—
Rate adjustment mechanism	74		—		—		—
Energy efficiency	23		—		—		—
Other	20		2		—		—
Total current regulatory liabilities	$	241	$	182	$	69	$	153
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	917	$	639	$	—	$	—
Power purchase agreement - OVEC	30		35		—		—
Net deferred taxes	1,857		1,591		513		531
Defined benefit plans	106		95		36		28
Terminated interest rate swaps	62		62		—		—
Energy efficiency	35		—		—		—
Other	49		—		—		—
Total noncurrent regulatory liabilities	$	3,056	$	2,422	$	549	$	559

	LG&E				KU
	June 30, 2022		December 31, 2021		June 30, 2022		December 31, 2021
Current Regulatory Assets:
Gas supply clause	$	32	$	21	$	—	$	—
Gas line tracker	—		3		—		—
Generation formula rate	—		—		2		2
Fuel adjustment clause	17		4		30		7
Other	3		5		1		—
Total current regulatory assets	$	52	$	33	$	33	$	9
Noncurrent Regulatory Assets:
Defined benefit plans	$	189	$	164	$	123	$	103
Storm costs	8		8		3		3
Unamortized loss on debt	12		12		7		8
Interest rate swaps	10		18		—		—
Terminated interest rate swaps	39		41		28		29
AROs	75		75		222		227
Plant outage costs	13		15		36		39
Other	9		4		11		2
Total noncurrent regulatory assets	$	355	$	337	$	430	$	411

	LG&E				KU
	June 30, 2022		December 31, 2021		June 30, 2022		December 31, 2021
Current Regulatory Liabilities:
Economic relief billing credit	$	—	$	21	$	—	$	6
Other	3		—		5		2
Total current regulatory liabilities	$	3	$	21	$	5	$	8
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	274	$	262	$	379	$	377
Power purchase agreement - OVEC	21		24		9		11
Net deferred taxes	483		491		559		569
Defined benefit plans	11		10		59		57
Terminated interest rate swaps	31		31		31		31
Total noncurrent regulatory liabilities	$	820	$	818	$	1,037	$	1,045

(a)See “Regulatory Matters - Federal Matters - PPL Electric Transmission Formula Rate Return on Equity” below for additional information.