10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 10-Q
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended June 30, 2023
OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from _________ to ___________

Commission File Number	Registrant; State of Incorporation; Address and Telephone Number	IRS Employer Identification No.
1-11459	PPL Corporation (Exact name of Registrant as specified in its charter) Pennsylvania Two North Ninth Street Allentown, PA 18101-1179 (610) 774-5151	23-2758192
1-905	PPL Electric Utilities Corporation (Exact name of Registrant as specified in its charter) Pennsylvania Two North Ninth Street Allentown, PA 18101-1179 (610) 774-5151	23-0959590
1-2893	Louisville Gas and Electric Company (Exact name of Registrant as specified in its charter) Kentucky 220 West Main Street Louisville, KY 40202-1377 (502) 627-2000	61-0264150
1-3464	Kentucky Utilities Company (Exact name of Registrant as specified in its charter) (Kentucky and Virginia) One Quality Street Lexington, KY 40507-1462 (502) 627-2000	61-0247570

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol:	Name of each exchange on which registered
Common Stock of PPL Corporation	PPL	New York Stock Exchange
Junior Subordinated Notes of PPL Capital Funding, Inc.
2007 Series A due 2067	PPL/67	New York Stock Exchange

Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.

PPL Corporation	Yes	☒	No	☐
PPL Electric Utilities Corporation	Yes	☒	No	☐
Louisville Gas and Electric Company	Yes	☒	No	☐
Kentucky Utilities Company	Yes	☒	No	☐

Indicate by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit such files). 

PPL Corporation	Yes	☒	No	☐
PPL Electric Utilities Corporation	Yes	☒	No	☐
Louisville Gas and Electric Company	Yes	☒	No	☐
Kentucky Utilities Company	Yes	☒	No	☐

Indicate by check mark whether the registrants are large accelerated filers, accelerated filers, non-accelerated filers, smaller reporting companies or emerging growth companies. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

	Large accelerated filer	Accelerated filer	Non-accelerated filer	Smaller reporting company	Emerging growth company
PPL Corporation	☒	☐	☐	☐	☐
PPL Electric Utilities Corporation	☐	☐	☒	☐	☐
Louisville Gas and Electric Company	☐	☐	☒	☐	☐
Kentucky Utilities Company	☐	☐	☒	☐	☐

If emerging growth companies, indicate by check mark if the registrants have elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

PPL Corporation	☐
PPL Electric Utilities Corporation	☐
Louisville Gas and Electric Company	☐
Kentucky Utilities Company	☐

Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act).

PPL Corporation	Yes	☐	No	☒
PPL Electric Utilities Corporation	Yes	☐	No	☒
Louisville Gas and Electric Company	Yes	☐	No	☒
Kentucky Utilities Company	Yes	☐	No	☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

PPL Corporation    Common stock, $0.01 par value, 737,088,540 shares outstanding at July 31, 2023.

PPL Electric Utilities Corporation    Common stock, no par value, 66,368,056 shares outstanding and all held by PPL Energy Holdings LLC, a wholly-owned, indirect subsidiary of PPL Corporation, at July 31, 2023.

Louisville Gas and Electric Company    Common stock, no par value, 21,294,223 shares outstanding and all held by LG&E and KU Energy LLC, a wholly-owned, indirect subsidiary of PPL Corporation, at July 31, 2023.

Kentucky Utilities Company    Common stock, no par value, 37,817,878 shares outstanding and all held by LG&E and KU Energy LLC, a wholly-owned, indirect subsidiary of PPL Corporation, at July 31, 2023.

This document is available free of charge at the Investors section of PPL Corporation's website at www.pplweb.com. However, other information on this website does not constitute a part of this Form 10-Q.

PPL CORPORATION

PPL ELECTRIC UTILITIES CORPORATION

LOUISVILLE GAS AND ELECTRIC COMPANY

KENTUCKY UTILITIES COMPANY

FORM 10-Q

FOR THE QUARTER ENDED JUNE 30, 2023

Table of Contents

This combined Form 10-Q is separately filed by the following Registrants in their individual capacity: PPL Corporation, PPL Electric Utilities Corporation, Louisville Gas and Electric Company and Kentucky Utilities Company. Information contained herein relating to any individual Registrant is filed by such Registrant solely on its own behalf, and no Registrant makes any representation as to information relating to any other Registrant, except that information under "Forward-Looking Information" relating to subsidiaries of PPL Corporation is also attributed to PPL Corporation.

Unless otherwise specified, references in this Report, individually, to PPL Corporation, PPL Electric Utilities Corporation, Louisville Gas and Electric Company and Kentucky Utilities Company are references to such entities directly or to one or more of their subsidiaries, as the case may be, the financial results of which subsidiaries are consolidated into such Registrants' financial statements in accordance with GAAP. This presentation has been applied where identification of particular subsidiaries is not material to the matter being disclosed, and to conform narrative disclosures to the presentation of financial information on a consolidated basis.

				Page
GLOSSARY OF TERMS AND ABBREVIATIONS				i
FORWARD-LOOKING INFORMATION				1
PART I.  FINANCIAL INFORMATION
	Item 1.  Financial Statements
		PPL Corporation and Subsidiaries
			Condensed Consolidated Statements of Income	3
			Condensed Consolidated Statements of Comprehensive Income	4
			Condensed Consolidated Statements of Cash Flows	5
			Condensed Consolidated Balance Sheets	6
			Condensed Consolidated Statements of Equity	8
		PPL Electric Utilities Corporation and Subsidiaries
			Condensed Consolidated Statements of Income	10
			Condensed Consolidated Statements of Cash Flows	11
			Condensed Consolidated Balance Sheets	12
			Condensed Consolidated Statements of Equity	14
		Louisville Gas and Electric Company
			Condensed Statements of Income	16
			Condensed Statements of Cash Flows	17
			Condensed Balance Sheets	18
			Condensed Statements of Equity	20
		Kentucky Utilities Company
			Condensed Statements of Income	22
			Condensed Statements of Cash Flows	23
			Condensed Balance Sheets	24
			Condensed Statements of Equity	26

	Combined Notes to Condensed Financial Statements (Unaudited)
		Index to Combined Notes to Condensed Financial Statements		27
		1.   Interim Financial Statements		27
		2.   Segment and Related Information		28
		3.   Revenue from Contracts with Customers		29
		4.   Earnings Per Share		32
		5.   Income Taxes		33
		6.   Utility Rate Regulation		34
		7.   Financing Activities		40
		8.   Acquisitions, Development and Divestitures		43
		9. Defined Benefits		45
		10. Commitments and Contingencies		45
		11. Related Party Transactions		52
		12. Other Income (Expense) - net		53
		13. Fair Value Measurements		53
		14. Derivative Instruments and Hedging Activities		56
		15. Asset Retirement Obligations		62
		16. Accumulated Other Comprehensive Income (Loss)		63
	Item 2.  Combined Management's Discussion and Analysis of Financial Condition and Results of Operations
		Overview		65
			Introduction	65
			Business Strategy	67
			Financial and Operational Developments	67
		Results of Operations		69
			PPL Corporation and Subsidiaries - Statement of Income Analysis and Segment Earnings	70
			PPL Electric Utilities Corporation and Subsidiaries - Statement of Income Analysis	78
			Louisville Gas and Electric Company - Statement of Income Analysis	79
			Kentucky Utilities Company - Statement of Income Analysis	81
		Financial Condition		82
			Liquidity and Capital Resources	82
			Risk Management	87
			Related Party Transactions	89
			Acquisitions, Development and Divestitures	89
			Environmental Matters	89
		New Accounting Guidance		91
		Application of Critical Accounting Policies		91
	Item 3.  Quantitative and Qualitative Disclosures About Market Risk			92
	Item 4.  Controls and Procedures			92
PART II.  OTHER INFORMATION
	Item 1. Legal Proceedings			92
	Item 1A. Risk Factors			92
	Item 4. Mine Safety Disclosures			92
	Item 5. Other Information			93
	Item 6. Exhibits			93
SIGNATURES				94
CERTIFICATES OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
CERTIFICATES OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

GLOSSARY OF TERMS AND ABBREVIATIONS

PPL Corporation and its subsidiaries

CEP Reserves - CEP Reserves Inc., a cash management subsidiary of PPL that maintains cash reserves for the balance sheet management of PPL and certain subsidiaries.

KU - Kentucky Utilities Company, a public utility subsidiary of LKE engaged in the regulated generation, transmission, distribution and sale of electricity, primarily in Kentucky.

LG&E - Louisville Gas and Electric Company, a public utility subsidiary of LKE engaged in the regulated generation, transmission, distribution and sale of electricity and the distribution and sale of natural gas in Kentucky.

LKE - LG&E and KU Energy LLC, a subsidiary of PPL and the parent of LG&E, KU and other subsidiaries.

LKS - LG&E and KU Services Company, a subsidiary of LKE that provides administrative, management, and support services primarily to LG&E and KU, as well as to LKE and its other subsidiaries.

Narragansett Electric - The Narragansett Electric Company, an entity that serves electric and natural gas customers in Rhode Island. On May 25, 2022, PPL and its subsidiary, PPL Rhode Island Holdings announced the completion of the acquisition of Narragansett Electric, which will continue to provide services under the name Rhode Island Energy.

PPL - PPL Corporation, the parent holding company of PPL Capital Funding and PPL Energy Holdings, which is the holding company of PPL Electric, PPL Energy Funding, LKE, Rhode Island Energy, PPL Services and other subsidiaries.

PPL Capital Funding - PPL Capital Funding, Inc., a financing subsidiary of PPL that provides financing for the operations of PPL and certain subsidiaries. Debt issued by PPL Capital Funding is fully and unconditionally guaranteed as to payment by PPL.

PPL Electric - PPL Electric Utilities Corporation, a public utility subsidiary of PPL engaged in the regulated transmission and distribution of electricity in its Pennsylvania service area and that provides electricity supply to its retail customers in this area as a PLR.

PPL Energy Funding - PPL Energy Funding Corporation, a subsidiary of PPL and the parent holding company of PPL Global, LLC and other subsidiaries.

PPL Energy Holdings - PPL Energy Holdings, LLC, a subsidiary of PPL and the parent holding company of PPL Energy Funding, LKE, PPL Electric, PPL Rhode Island Holdings, PPL Services and other subsidiaries.

PPL Rhode Island Holdings - PPL Rhode Island Holdings, LLC, a subsidiary of PPL and the parent holding company of RIE.

PPL Services - PPL Services Corporation, a subsidiary of PPL that provides administrative, management and support services to PPL and its subsidiaries.

PPL WPD Limited - a U.K. subsidiary of PPL Global, LLC. Prior to the sale of the U.K. utility business on June 14, 2021, PPL WPD Limited was an indirect parent to PPL WPD Limited Investments. PPL WPD Limited was not included in the sale of the U.K. utility business on June 14, 2021.

RIE - Rhode Island Energy – the name under which Narragansett Electric will continue to provide services subsequent to its acquisition by PPL and its subsidiary, PPL Rhode Island Holdings, LLC on May 25, 2022.

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Other terms and abbreviations

£ - British pound sterling.

2022 Form 10-K - Annual Report to the SEC on Form 10-K for the year ended December 31, 2022.

Act 11 - Act 11 of 2012 that became effective in April 2012. The Pennsylvania legislation authorized the PUC to approve two specific ratemaking mechanisms: the use of a fully projected future test year in base rate proceedings and, subject to certain conditions, a DSIC.

Act 129 - Act 129 of 2008 that became effective in October 2008. The law amended the Pennsylvania Public Utility Code and created an energy efficiency and conservation program and smart metering technology requirements, adopted new PLR electricity supply procurement rules, provided remedies for market misconduct and changed the Alternative Energy Portfolio Standard (AEPS).

Act 129 Smart Meter program - PPL Electric's system wide meter replacement program that installs wireless digital meters that provide secure communication between PPL Electric and the meter as well as all related infrastructure.

AFUDC - allowance for funds used during construction. The cost of equity and debt funds used to finance construction projects of regulated businesses, which is capitalized as part of construction costs.

AOCI - accumulated other comprehensive income or loss.

ARO - asset retirement obligation.

Bcf - billion cubic feet. A unit of measure commonly used in quoting volumes of natural gas.

CCR(s) - coal combustion residual(s). CCRs include fly ash, bottom ash and sulfur dioxide scrubber wastes.

Clean Air Act - federal legislation enacted to address certain environmental issues related to air emissions, including acid rain, ozone and toxic air emissions.

COVID-19 - the disease caused by the novel coronavirus identified in 2019 that caused a global pandemic.

CPCN - Certificate of Public Convenience and Necessity. Authority granted by the KPSC pursuant to Kentucky Revised Statute 278.020 to provide utility service to or for the public or the construction of certain plant, equipment, property or facilities for furnishing of utility service to the public. A CPCN is required for any capital addition, subject to KPSC jurisdiction, in excess of $100 million.

Customer Choice Act - the Pennsylvania Electricity Generation Customer Choice and Competition Act, legislation enacted to restructure the state's electric utility industry to create retail access to a competitive market for generation of electricity.

DSIC - Distribution System Improvement Charge. Authorized under Act 11, which is an alternative ratemaking mechanism providing more-timely cost recovery of qualifying distribution system capital expenditures.

DSM - Demand Side Management. Pursuant to Kentucky Revised Statute 278.285, the KPSC may determine the reasonableness of DSM programs proposed by any utility under its jurisdiction. DSM programs consist of energy efficiency programs intended to reduce peak demand and delay the investment in additional power plant construction, provide customers with tools and information regarding their energy usage and support energy efficiency.

Earnings from Ongoing Operations - a non-GAAP financial measure of earnings adjusted for the impact of special items and used in "Item 2. Combined Management's Discussion and Analysis of Financial Condition and Results of Operations" (MD&A).

ECR - Environmental Cost Recovery. Pursuant to Kentucky Revised Statute 278.183, Kentucky electric utilities are entitled to the current recovery of costs of complying with the Clean Air Act, as amended, and those federal, state or local environmental requirements that apply to coal combustion wastes and byproducts from the production of energy from coal.

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ELG(s) - Effluent Limitation Guidelines, regulations promulgated by the EPA.

Environmental Response Fund - Established in RIPUC Docket No. 2930. Created to satisfy remedial and clean-up obligations of RIE arising from the past ownership and/or operation of manufactured gas plants and sites associated with the operation and disposal activities of such gas plants.

EPA - Environmental Protection Agency, a U.S. government agency.

EPS - earnings per share.

FERC - Federal Energy Regulatory Commission, the U.S. federal agency that regulates, among other things, interstate transmission and wholesale sales of electricity, hydroelectric power projects and related matters.

GAAP - Generally Accepted Accounting Principles in the U.S.

GHG(s) - greenhouse gas(es).

GLT - gas line tracker. The KPSC approved mechanism for LG&E's recovery of costs associated with gas transmission lines, gas service lines, gas risers, leak mitigation, and gas main replacements.

If-Converted Method - A method applied to calculate diluted EPS for a company with outstanding convertible debt. This method generally adds back the interest charges of the debt to net income and the convertible debt is assumed to have been converted to equity at the beginning of the period, and the resulting common shares are treated as outstanding shares for diluted EPS calculations.

IRS - Internal Revenue Service, a U.S. government agency.

ISO - Independent System Operator.

KPSC - Kentucky Public Service Commission, the state agency that has jurisdiction over the regulation of rates and service of utilities in Kentucky.

Moody's - Moody's Investors Service, Inc., a credit rating agency.

MW - megawatt, one thousand kilowatts.

MWac - megawatt, alternating current. The measure of the power output from a solar installation.

NAAQS - National Ambient Air Quality Standards periodically adopted pursuant to the Clean Air Act. 

NEP - New England Power Company, a National Grid USA affiliate.

NERC - North American Electric Reliability Corporation.

NGCC - Natural gas combined cycle.

NPNS - the normal purchases and normal sales exception as permitted by derivative accounting rules. Derivatives that qualify for this exception may receive accrual accounting treatment.

OCI - other comprehensive income or loss.

OVEC - Ohio Valley Electric Corporation, located in Piketon, Ohio, an entity in which LG&E owns a 5.63% interest and KU owns a 2.50% interest, which are recorded at cost. OVEC owns and operates two coal-fired power plants, the Kyger Creek plant in Ohio and the Clifty Creek plant in Indiana, with combined capacities of 2,120 MW.

PAPUC - Pennsylvania Public Utility Commission, the state agency that regulates certain ratemaking, services, accounting and operations of Pennsylvania utilities.

iii

PLR - Provider of Last Resort, the role of PPL Electric in providing default electricity supply within its delivery area to retail customers who have not chosen to select an alternative electricity supplier under the Customer Choice Act.

PP&E - property, plant and equipment.

PPA(s) - power purchase agreement(s).

PPL EnergyPlus - prior to the June 1, 2015 spinoff, PPL Energy Supply, LLC, PPL EnergyPlus, LLC, a subsidiary of PPL Energy Supply that marketed and traded wholesale and retail electricity and gas and supplied energy and energy services in competitive markets.

PPL Energy Supply - prior to the June 1, 2015 spinoff, PPL Energy Supply, LLC, a subsidiary of PPL Energy Funding and the indirect parent company of PPL Montana, LLC.

PPL Montana - prior to the June 1, 2015 spinoff of PPL Energy Supply, PPL Montana, LLC, an indirect subsidiary of PPL Energy Supply that generated electricity for wholesale sales in Montana and the Pacific Northwest.

RAR – Retired Asset Recovery rider, established by KPSC orders in 2021 to provide for recovery of and return on the remaining investment in certain electric generating units upon their retirement over a ten-year period following retirement.

Registrant(s) - refers to the Registrants named on the cover of this Report (each a "Registrant" and collectively, the "Registrants").

Regulation S-X - SEC regulation governing the form and content of and requirements for financial statements required to be filed pursuant to the federal securities laws.

RIPUC - Rhode Island Public Utilities Commission, a three-member quasi-judicial tribunal with jurisdiction, powers, and duties to implement and enforce the standards of conduct under R.I. Gen. Laws § 39-1-27.6 and to hold investigations and hearings involving the rates, tariffs, tolls, and charges, and the sufficiency and reasonableness of facilities and accommodations of public utilities in the state of Rhode Island.

Riverstone - Riverstone Holdings LLC, a Delaware limited liability company and, as of December 6, 2016, ultimate parent company of the entities that own the competitive power generation business contributed to Talen Energy.

Rhode Island Division of Public Utilities and Carriers - the Rhode Island Division of Public Utilities and Carriers, which is headed by an Administrator who is not a Commissioner of the RIPUC, exercises the jurisdiction, supervision, power, and duties not specifically assigned to the RIPUC.

Safari Energy - Safari Energy, LLC, which was, prior to its sale on November 1, 2022, a subsidiary of Safari Holdings that provided solar energy solutions for commercial customers in the U.S.

Safari Holdings - Safari Holdings, LLC, which was, prior to its sale on November 1, 2022, a subsidiary of PPL and parent holding company of Safari Energy.

Sarbanes-Oxley - Sarbanes-Oxley Act of 2002, which sets requirements for management's assessment of internal controls for financial reporting. It also requires an independent auditor to make its own assessment.

Scrubber - an air pollution control device that can remove particulates and/or gases (primarily sulfur dioxide) from exhaust gases.

SEC - the U.S. Securities and Exchange Commission, a U.S. government agency primarily responsible to protect investors and maintain the integrity of the securities markets.

Smart metering technology - technology that can measure, among other things, time of electricity consumption to permit offering rate incentives for usage during lower cost or demand intervals. The use of this technology also has the potential to strengthen network reliability.

iv

SOFR - Secured Overnight Financing Rate, a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities.

S&P - S&P Global Ratings, a credit rating agency.

Superfund - federal environmental statute that addresses remediation of contaminated sites; states also have similar statutes.

Talen Energy - Talen Energy Corporation, the Delaware corporation formed to be the publicly traded company and owner of the competitive generation assets of PPL Energy Supply and certain affiliates of Riverstone, which as of December 6, 2016, became wholly owned by Riverstone.

Talen Energy Marketing - Talen Energy Marketing, LLC, the successor name of PPL EnergyPlus after the spinoff of PPL Energy Supply that marketed and traded wholesale and retail electricity and gas, and supplied energy and energy services in competitive markets, after the June 1, 2015 spinoff of PPL Energy Supply.

TCJA - Tax Cuts and Jobs Act. Comprehensive U.S. federal tax legislation enacted on December 22, 2017.

Treasury Stock Method - a method applied to calculate diluted EPS that assumes any proceeds that could be obtained upon exercise of options and warrants (and their equivalents) would be used to purchase common stock at the average market price during the relevant period.

U.K. utility business – PPL WPD Investments Limited and its subsidiaries, including, notably, Western Power Distribution plc and the four distribution network operators, which substantially represented PPL's U.K. Regulated segment. The U.K. utility business was sold on June 14, 2021.

VEBA - Voluntary Employee Beneficiary Association, a tax-exempt trust under the Internal Revenue Code Section 501(c)(9) used by employers to fund and pay eligible medical, life and similar benefits.

VSCC - Virginia State Corporation Commission, the state agency that has jurisdiction over the regulation of Virginia corporations, including utilities.

v

Forward-looking Information

Statements contained in this Form 10-Q concerning expectations, beliefs, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are other than statements of historical fact are "forward-looking statements" within the meaning of the federal securities laws. Although the Registrants believe that the expectations and assumptions reflected in these statements are reasonable, there can be no assurance that these expectations will prove to be correct. Forward-looking statements are subject to many risks and uncertainties, and actual results may differ materially from the results discussed in forward-looking statements. In addition to the specific factors discussed in each Registrant's 2022 Form 10-K and in "Item 2. Combined Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Form 10-Q, the following are among the important factors that could cause actual results to differ materially and adversely from the forward-looking statements:

•strategic acquisitions, dispositions, or similar transactions, and our ability to consummate these business transactions or realize expected benefits from them;

•pandemic health events or other catastrophic events such as fires, earthquakes, explosions, floods, droughts, tornadoes, hurricanes and other extreme weather-related events (including events potentially caused or exacerbated by climate change) and their impact on economic conditions, financial markets and supply chains;

•capital market conditions, including the availability of capital, credit or insurance, changes in interest rates and certain economic indices, and decisions regarding capital structure;

•volatility in or the impact of other changes on financial markets, commodity prices and economic conditions, including inflation;

•weather and other conditions affecting generation, transmission and distribution operations, operating costs and customer energy use;

•the outcome of rate cases or other cost recovery, revenue or regulatory proceedings;

•the direct or indirect effects on PPL or its subsidiaries or business systems of cyber-based intrusion or the threat of cyberattacks;

•significant changes in the demand for electricity;

•expansion of alternative and distributed sources of electricity generation and storage;

•the effectiveness of our risk management programs, including commodity and interest rate hedging;

•defaults by counterparties or suppliers for energy, capacity, coal, natural gas or key commodities, goods or services;

•a material decline in the market value of PPL's equity;

•significant decreases in the fair value of debt and equity securities and their impact on the value of assets in defined benefit plans, and the related cash funding requirements if the fair value of those assets decline;

•interest rates and their effect on pension and retiree medical liabilities, ARO liabilities, interest payable on certain debt securities, and the general economy;

•the potential impact of any unrecorded commitments and liabilities of the Registrants and their subsidiaries;

•new accounting requirements or new interpretations or applications of existing requirements;

•adverse changes in the corporate credit ratings or securities analyst rankings of the Registrants and their securities;

•any requirement to record impairment charges pursuant to GAAP with respect to any of our significant investments;

•laws or regulations to reduce emissions of GHGs or the physical effects of climate change;

•continuing ability to access fuel supply for LG&E and KU, as well as the ability to recover fuel costs and environmental expenditures in a timely manner at LG&E and KU and natural gas supply costs at LG&E and RIE;

•war, armed conflicts, terrorist attacks, or similar disruptive events, including the war in Ukraine;

•changes in political, regulatory or economic conditions in states, regions or countries where the Registrants or their subsidiaries conduct business;

•receipt of necessary governmental permits and approvals;

•changes in state or federal tax law or regulations;

•changes in state, federal or foreign legislation or regulatory developments;

•the impact of any state, federal or foreign investigations applicable to the Registrants and their subsidiaries and the energy industry;

•our ability to attract and retain qualified employees;

•the effect of changing expectations and demands of our customers, regulators and stakeholders, including heightened emphasis on environmental, social and governance concerns;

•the effect of any business or industry restructuring;

•development of new projects, markets and technologies;

•performance of new ventures;

•collective labor bargaining negotiations and labor costs; and

•the outcome of litigation involving the Registrants and their subsidiaries.

1

Any forward-looking statements should be considered in light of these important factors and in conjunction with other documents of the Registrants on file with the SEC.

New factors that could cause actual results to differ materially from those described in forward-looking statements emerge from time to time, and it is not possible for the Registrants to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. Any forward-looking statement speaks only as of the date on which such statement is made, and the Registrants undertake no obligation to update the information contained in the statement to reflect subsequent developments or information.

Investors should note that PPL announces material financial information in SEC filings, press releases and public conference calls. In accordance with SEC guidelines, PPL also uses the Investors section of its website, www.pplweb.com, to communicate with investors. It is possible that the financial and other information posted there could be deemed to be material information. The information on PPL's website is not part of this document.

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PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

PPL Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars, except share data)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Operating Revenues	$	1,823	$	1,696	$	4,238	$	3,478
Operating Expenses
Operation
Fuel	167		229		368		441
Energy purchases	340		305		1,074		657
Other operation and maintenance	609		560		1,168		993
Depreciation	313		289		626		560
Taxes, other than income	89		70		199		130
Total Operating Expenses	1,518		1,453		3,435		2,781
Operating Income	305		243		803		697
Other Income (Expense) - net (Note 12)	5		26		35		26
Interest Expense	165		118		329		225
Income Before Income Taxes	145		151		509		498
Income Taxes	33		32		112		106
Net Income	$	112	$	119	$	397	$	392
Earnings Per Share of Common Stock:
Basic and Diluted
Net Income Available to PPL Common Shareowners	$	0.15	$	0.16	$	0.54	$	0.53
Weighted-Average Shares of Common Stock Outstanding (in thousands)
Basic	737,075		735,977		736,953		735,741
Diluted	738,177		736,769		737,938		736,478

 The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

PPL Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net income	$	112	$	119	$	397	$	392
Other comprehensive income (loss):
Amounts arising during the period - gains (losses), net of tax (expense) benefit:
Equity investees' other comprehensive income (loss), net of tax of $0, $0, $0, $0	—		1		1		2
Defined benefit plans:
Prior service costs, net of tax of $0, $0, $0, $0	—		—		—		(1)
Net actuarial gain (loss), net of tax of $5, ($7), $5, ($7)	(15)		21		(15)		21
Reclassifications from AOCI - (gains) losses, net of tax expense (benefit):
Qualifying derivatives, net of tax of ($1), ($1), ($1), ($1)	—		—		1		1
Defined benefit plans:
Prior service costs, net of tax of $0, $0, $0, $0	1		—		1		1
Net actuarial (gain) loss, net of tax of $1, ($2), $1, ($3)	—		6		(1)		9
Total other comprehensive income (loss)	(14)		28		(13)		33
Comprehensive income	$	98	$	147	$	384	$	425

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

PPL Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars)

	Six Months Ended June 30,
	2023		2022
Cash Flows from Operating Activities
Net income	$	397	$	392
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	626		560
Amortization	39		15
Defined benefit plans - (income) expense	(36)		(8)
Deferred income taxes and investment tax credits	107		56
Other	25		45
Change in current assets and current liabilities
Accounts receivable	(1)		(47)
Accounts payable	(209)		166
Unbilled revenues	233		22
Fuel, materials and supplies	(30)		23
Prepayments	(90)		(69)
Taxes payable	(31)		(41)
Regulatory assets and liabilities, net	(57)		(211)
Accrued interest	44		1
Other	(50)		97
Other operating activities
Defined benefit plans - funding	(7)		(7)
Other assets	(97)		(74)
Other liabilities	(21)		59
Net cash provided by operating activities	842		979
Cash Flows from Investing Activities
Expenditures for property, plant and equipment	(1,090)		(1,009)
Acquisition of Narragansett Electric, net of cash acquired	—		(3,674)
Other investing activities	(6)		—
Net cash used in investing activities	(1,096)		(4,683)
Cash Flows from Financing Activities
Issuance of long-term debt	3,127		—
Retirement of long-term debt	(1,763)		—
Payment of common stock dividends	(348)		(453)
Net increase (decrease) in short-term debt	(742)		919
Other financing activities	(50)		3
Net cash provided by financing activities	224		469
Net Decrease in Cash, Cash Equivalents and Restricted Cash	(30)		(3,235)
Cash, Cash Equivalents and Restricted Cash at Beginning of Period	357		3,572
Cash, Cash Equivalents and Restricted Cash at End of Period	$	327	$	337
Supplemental Disclosures of Cash Flow Information
Significant non-cash transactions:
Accrued expenditures for property, plant and equipment at June 30,	$	231	$	195

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

5

CONDENSED CONSOLIDATED BALANCE SHEETS

PPL Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars, shares in thousands)

	June 30, 2023		December 31, 2022
Assets
Current Assets
Cash and cash equivalents	$	326	$	356
Accounts receivable (less reserve: 2023, $103; 2022, $87)
Customer	979		896
Other	70		150
Unbilled revenues (less reserve: 2023, $3; 2022, $6)	322		552
Fuel, materials and supplies	474		443
Prepayments	189		92
Regulatory assets	331		258
Other current assets	34		77
Total Current Assets	2,725		2,824
Property, Plant and Equipment
Regulated utility plant	37,743		36,961
Less:  accumulated depreciation - regulated utility plant	8,771		8,352
Regulated utility plant, net	28,972		28,609
Non-regulated property, plant and equipment	68		92
Less:  accumulated depreciation - non-regulated property, plant and equipment	22		46
Non-regulated property, plant and equipment, net	46		46
Construction work in progress	1,744		1,583
Property, Plant and Equipment, net	30,762		30,238
Other Noncurrent Assets
Regulatory assets	1,826		1,819
Goodwill	2,247		2,248
Other intangibles	309		313
Other noncurrent assets (less reserve for accounts receivable: 2023, $1; 2022 $2)	427		395
Total Other Noncurrent Assets	4,809		4,775
Total Assets	$	38,296	$	37,837

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

6

CONDENSED CONSOLIDATED BALANCE SHEETS

PPL Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars, shares in thousands)

	June 30, 2023		December 31, 2022
Liabilities and Equity
Current Liabilities
Short-term debt	$	243	$	985
Long-term debt due within one year	91		354
Accounts payable	975		1,201
Taxes	93		124
Interest	141		97
Dividends	173		166
Regulatory liabilities	280		238
Other current liabilities	509		624
Total Current Liabilities	2,505		3,789
Long-term Debt	14,481		12,889
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	3,138		3,007
Investment tax credits	115		117
Accrued pension obligations	192		206
Asset retirement obligations	128		138
Regulatory liabilities	3,421		3,412
Other deferred credits and noncurrent liabilities	357		361
Total Deferred Credits and Other Noncurrent Liabilities	7,351		7,241
Commitments and Contingent Liabilities (Notes 6 and 10)
Equity
Common stock - $0.01 par value (a)	8		8
Additional paid-in capital	12,316		12,317
Treasury stock	(949)		(967)
Earnings reinvested	2,721		2,681
Accumulated other comprehensive loss	(137)		(124)
Total Shareowners' Common Equity	13,959		13,915
Noncontrolling interests	—		3
Total Equity	13,959		13,918
Total Liabilities and Equity	$	38,296	$	37,837

(a)1,560,000 shares authorized, 770,013 shares issued and 737,086 shares outstanding at June 30, 2023. 1,560,000 shares authorized, 770,013 shares issued and 736,487 shares outstanding at December 31, 2022.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

7

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

PPL Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars)

	Common stock shares outstanding (a)	Common stock		Additional paid-in capital		Treasury stock		Earnings reinvested		Accumulated other comprehensive loss		Noncontrolling interests		Total
March 31, 2023	737,067	$	8	$	12,310	$	(950)	$	2,788	$	(123)	$	3	$	14,036
Treasury stock issued	19			1		1								2
Stock-based compensation				5										5
Net income								112						112
Dividends and dividend equivalents (b)								(179)						(179)
Preferred stock (Note 7)												(3)		(3)
Other comprehensive income										(14)				(14)
June 30, 2023	737,086	$	8	$	12,316	$	(949)	$	2,721	$	(137)	$	—	$	13,959
December 31, 2022	736,487	$	8	$	12,317	$	(967)	$	2,681	$	(124)	$	3	$	13,918
Treasury stock issued	599			3		18								21
Stock-based compensation				(4)										(4)
Net income								397						397
Dividends and dividend equivalents (b)								(357)						(357)
Preferred stock (Note 7)												(3)		(3)
Other comprehensive income										(13)				(13)
June 30, 2023	737,086	$	8	$	12,316	$	(949)	$	2,721	$	(137)	$	—	$	13,959
March 31, 2022	735,765	$	8	$	12,299	$	(987)	$	2,697	$	(152)	$	—	$	13,865
Common stock issued				8										8
Treasury stock issued	392					11								11
Stock-based compensation				6										6
Net income								119						119
Dividends and dividend equivalents (b)								(167)						(167)
Preferred stock												3		3
Other comprehensive income										28				28
June 30, 2022	736,157	$	8	$	12,313	$	(976)	$	2,649	$	(124)	$	3	$	13,873
December 31, 2021	735,112	$	8	$	12,303	$	(1,003)	$	2,572	$	(157)	$	—	$	13,723
Common stock issued	123			12										12
Treasury stock issued	922					27								27
Stock-based compensation				(2)										(2)
Net income								392						392
Dividends and dividend equivalents (b)								(315)						(315)
Preferred stock												3		3
Other comprehensive income										33				33
June 30, 2022	736,157	$	8	$	12,313	$	(976)	$	2,649	$	(124)	$	3	$	13,873

(a)Shares in thousands. Each share entitles the holder to one vote on any question presented at any shareowners' meeting.

(b)Dividends declared per share of common stock were $0.240 and $0.480 for the three and six months ended June 30, 2023 and $0.225 and $0.425 for the three and six months ended June 30, 2022.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

8

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9

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

PPL Electric Utilities Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Operating Revenues	$	667	$	676	$	1,558	$	1,451
Operating Expenses
Operation
Energy purchases	204		218		562		474
Other operation and maintenance	141		128		303		288
Depreciation	99		99		198		197
Taxes, other than income	30		32		74		69
Total Operating Expenses	474		477		1,137		1,028
Operating Income	193		199		421		423
Other Income (Expense) - net (Note 12)	9		7		21		13
Interest Income from Affiliate	—		2		—		4
Interest Expense	54		40		111		79
Income Before Income Taxes	148		168		331		361
Income Taxes	38		44		83		94
Net Income (a)	$	110	$	124	$	248	$	267

(a)Net income equals comprehensive income.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

10

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

PPL Electric Utilities Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars)

	Six Months Ended June 30,
	2023		2022
Cash Flows from Operating Activities
Net income	$	248	$	267
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	198		197
Amortization	18		5
Defined benefit plans - expense (income)	(22)		(11)
Deferred income taxes and investment tax credits	54		67
Other	(9)		(9)
Change in current assets and current liabilities
Accounts receivable	(136)		(55)
Accounts payable	(69)		18
Unbilled revenues	119		8
Materials and supplies	(21)		(5)
Prepayments	(55)		(52)
Regulatory assets and liabilities, net	(39)		(73)
Taxes payable	(36)		(23)
Counterparty collateral	—		62
Other	16		(9)
Other operating activities
Defined benefit plans - funding	(1)		—
Other assets	(28)		(25)
Other liabilities	(1)		(7)
Net cash provided by operating activities	236		355
Cash Flows from Investing Activities
Expenditures for property, plant and equipment	(395)		(451)
Expenditures for intangible assets	(3)		—
Notes receivable from affiliates	—		333
Other investing activities	—		1
Net cash used in investing activities	(398)		(117)
Cash Flows from Financing Activities
Issuance of long-term debt	1,329		—
Retirement of long-term debt	(1,150)		—
Contributions from parent	200		—
Return of capital to parent	(25)		(65)
Payment of common stock dividends to parent	(163)		(165)
Net decrease in short-term debt	(15)		—
Debt issuance costs	(13)		—
Net cash provided by (used in) financing activities	163		(230)
Net Increase in Cash, Cash Equivalents and Restricted Cash	1		8
Cash, Cash Equivalents and Restricted Cash at Beginning of Period	25		21
Cash, Cash Equivalents and Restricted Cash at End of Period	$	26	$	29
Supplemental Disclosure of Cash Flow Information
Significant non-cash transactions:
Accrued expenditures for property, plant and equipment at June 30,	$	124	$	114

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

11

CONDENSED CONSOLIDATED BALANCE SHEETS

PPL Electric Utilities Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars, shares in thousands)

	June 30, 2023		December 31, 2022
Assets
Current Assets
Cash and cash equivalents	$	26	$	25
Accounts receivable (less reserve: 2023, $40; 2022, $28)
Customer	488		357
Other	10		12
Accounts receivable from affiliates	10		3
Unbilled revenues (less reserve: 2023, $2; 2022, $2)	108		224
Materials and supplies	90		69
Prepayments	96		34
Regulatory assets	49		13
Other current assets	20		22
Total Current Assets	897		759
Property, Plant and Equipment
Regulated utility plant	15,139		14,794
Less: accumulated depreciation - regulated utility plant	3,684		3,544
Regulated utility plant, net	11,455		11,250
Construction work in progress	628		593
Property, Plant and Equipment, net	12,083		11,843
Other Noncurrent Assets
Regulatory assets	552		568
Intangibles	268		269
Other noncurrent assets (less reserve for accounts receivable: 2023, $1; 2022, $2)	129		126
Total Other Noncurrent Assets	949		963
Total Assets	$	13,929	$	13,565

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

12

CONDENSED CONSOLIDATED BALANCE SHEETS

PPL Electric Utilities Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars, shares in thousands)

	June 30, 2023		December 31, 2022
Liabilities and Equity
Current Liabilities
Short-term debt	$	130	$	145
Long-term debt due within one year	90		340
Accounts payable	386		480
Accounts payable to affiliates	32		16
Taxes	—		36
Interest	57		35
Regulatory liabilities	82		85
Other current liabilities	88		86
Total Current Liabilities	865		1,223
Long-term Debt	4,565		4,146
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	1,568		1,514
Regulatory liabilities	835		820
Other deferred credits and noncurrent liabilities	85		111
Total Deferred Credits and Other Noncurrent Liabilities	2,488		2,445
Commitments and Contingent Liabilities (Notes 6 and 10)
Equity
Common stock - no par value (a)	364		364
Additional paid-in capital	4,259		4,084
Earnings reinvested	1,388		1,303
Total Equity	6,011		5,751
Total Liabilities and Equity	$	13,929	$	13,565

(a)170,000 shares authorized; 66,368 shares issued and outstanding at June 30, 2023 and December 31, 2022.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

13

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

PPL Electric Utilities Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars)

	Common stock shares outstanding (a)	Common stock		Additional paid-in capital		Earnings reinvested		Total
March 31, 2023	66,368	$	364	$	4,284	$	1,367	$	6,015
Net income						110		110
Return of capital to parent				(25)				(25)
Dividends declared						(89)		(89)
June 30, 2023	66,368	$	364	$	4,259	$	1,388	$	6,011
December 31, 2022	66,368	$	364	$	4,084	$	1,303	$	5,751
Net income						248		248
Capital contributions from parent				200				200
Return of capital to parent				(25)				(25)
Dividends declared						(163)		(163)
June 30, 2023	66,368	$	364	$	4,259	$	1,388	$	6,011
March 31, 2022	66,368	$	364	$	4,214	$	1,189	$	5,767
Net income						124		124
Return of capital to parent				(25)				(25)
Dividends declared						(93)		(93)
June 30, 2022	66,368	$	364	$	4,189	$	1,220	$	5,773
December 31, 2021	66,368	$	364	$	4,254	$	1,118	$	5,736
Net income						267		267
Return of capital to parent				(65)				(65)
Dividends declared						(165)		(165)
June 30, 2022	66,368	$	364	$	4,189	$	1,220	$	5,773

(a)Shares in thousands. All common shares of PPL Electric stock are owned by PPL Energy Holdings.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

14

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15

CONDENSED STATEMENTS OF INCOME

Louisville Gas and Electric Company

(Unaudited)

(Millions of Dollars)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Operating Revenues
Retail and wholesale	$	347	$	399	$	808	$	880
Electric revenue from affiliate	8		11		21		23
Total Operating Revenues	355		410		829		903
Operating Expenses
Operation
Fuel	68		90		147		171
Energy purchases	22		43		106		134
Energy purchases from affiliate	2		7		3		9
Other operation and maintenance	93		103		184		203
Depreciation	76		75		151		149
Taxes, other than income	12		12		24		24
Total Operating Expenses	273		330		615		690
Operating Income	82		80		214		213
Other Income (Expense) - net	—		4		2		3
Interest Expense	26		21		51		41
Income Before Income Taxes	56		63		165		175
Income Taxes	11		9		34		28
Net Income (a)	$	45	$	54	$	131	$	147

(a)Net income equals comprehensive income.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

16

CONDENSED STATEMENTS OF CASH FLOWS

Louisville Gas and Electric Company

(Unaudited)

(Millions of Dollars)

	Six Months Ended June 30,
	2023		2022
Cash Flows from Operating Activities
Net income	$	131	$	147
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	151		149
Amortization	6		(3)
Defined benefit plans - expense (income)	1		(1)
Deferred income taxes and investment tax credits	(5)		(9)
Other	(3)		2
Change in current assets and current liabilities
Accounts receivable	53		19
Accounts receivable from affiliates	19		1
Accounts payable	(50)		15
Accounts payable to affiliates	(6)		(11)
Unbilled revenues	42		8
Fuel, materials and supplies	31		35
Regulatory assets and liabilities, net	31		(16)
Taxes payable	(16)		(7)
Accrued interest	6		—
Other	(16)		1
Other operating activities
Defined benefit plans - funding	—		(2)
Expenditures for asset retirement obligations	(6)		(8)
Other assets	(15)		(2)
Other liabilities	4		(1)
Net cash provided by operating activities	358		317
Cash Flows from Investing Activities
Expenditures for property, plant and equipment	(186)		(183)
Net increase in notes receivable with affiliates	(8)		—
Net cash used in investing activities	(194)		(183)
Cash Flows from Financing Activities
Net decrease in notes payable to affiliates	—		(324)
Issuance of long-term debt	399		—
Retirement of long-term debt	(300)		—
Net increase (decrease) in short-term debt	(158)		325
Payment of common stock dividends to parent	(87)		(136)
Contributions from parent	20		10
Return of capital to parent	(120)		—
Other financing activities	(4)		—
Net cash used in financing activities	(250)		(125)
Net Increase (Decrease) in Cash and Cash Equivalents	(86)		9
Cash and Cash Equivalents at Beginning of Period	93		9
Cash and Cash Equivalents at End of Period	$	7	$	18
Supplemental Disclosure of Cash Flow Information
Significant non-cash transactions:
Accrued expenditures for property, plant and equipment at June 30,	$	39	$	33

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

17

CONDENSED BALANCE SHEETS

Louisville Gas and Electric Company

(Unaudited)

(Millions of Dollars, shares in thousands)

	June 30, 2023		December 31, 2022
Assets
Current Assets
Cash and cash equivalents	$	7	$	93
Accounts receivable (less reserve: 2023, $4; 2022, $4)
Customer	102		157
Other	16		13
Unbilled revenues (less reserve: 2023, $0; 2022, $0)	70		112
Accounts receivable from affiliates	17		37
Notes receivable from affiliates	8		—
Fuel, materials and supplies	135		166
Prepayments	17		13
Regulatory assets	4		23
Other current assets	1		2
Total Current Assets	377		616
Property, Plant and Equipment
Regulated utility plant	7,527		7,429
Less: accumulated depreciation - regulated utility plant	1,443		1,355
Regulated utility plant, net	6,084		6,074
Construction work in progress	294		268
Property, Plant and Equipment, net	6,378		6,342
Other Noncurrent Assets
Regulatory assets	384		373
Goodwill	389		389
Other intangibles	21		24
Other noncurrent assets	70		66
Total Other Noncurrent Assets	864		852
Total Assets	$	7,619	$	7,810

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

18

CONDENSED BALANCE SHEETS

Louisville Gas and Electric Company

(Unaudited)

(Millions of Dollars, shares in thousands)

	June 30, 2023		December 31, 2022
Liabilities and Equity
Current Liabilities
Short-term debt	$	21	$	179
Accounts payable	113		165
Accounts payable to affiliates	52		60
Customer deposits	33		32
Taxes	25		41
Price risk management liabilities	1		1
Regulatory liabilities	19		7
Interest	21		15
Asset retirement obligations	14		13
Other current liabilities	36		46
Total Current Liabilities	335		559
Long-term Debt	2,404		2,307
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	774		771
Investment tax credits	31		31
Price risk management liabilities	6		6
Asset retirement obligations	64		73
Regulatory liabilities	833		833
Other deferred credits and noncurrent liabilities	61		64
Total Deferred Credits and Other Noncurrent Liabilities	1,769		1,778
Commitments and Contingent Liabilities (Notes 6 and 10)
Stockholder's Equity
Common stock - no par value (a)	424		424
Additional paid-in capital	1,987		2,087
Earnings reinvested	700		655
Total Equity	3,111		3,166
Total Liabilities and Equity	$	7,619	$	7,810

(a)75,000 shares authorized; 21,294 shares issued and outstanding at June 30, 2023 and December 31, 2022.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

19

CONDENSED STATEMENTS OF EQUITY

Louisville Gas and Electric Company

(Unaudited)

(Millions of Dollars)

	Common stock shares outstanding (a)	Common stock		Additional paid-in capital		Earnings reinvested		Total
March 31, 2023	21,294	$	424	$	1,967	$	710	$	3,101
Net income						45		45
Capital contributions from parent				20				20
Dividends declared						(55)		(55)
June 30, 2023	21,294	$	424	$	1,987	$	700	$	3,111
December 31, 2022	21,294	$	424	$	2,087	$	655	$	3,166
Net income						131		131
Capital contributions from parent				20				20
Return of capital to parent				(120)				(120)
Dividends declared						(86)		(86)
June 30, 2023	21,294	$	424	$	1,987	$	700	$	3,111
March 31, 2022	21,294	$	424	$	1,997	$	676	$	3,097
Net income						54		54
Capital contributions from parent				10				10
Dividends declared						(61)		(61)
June 30, 2022	21,294	$	424	$	2,007	$	669	$	3,100
December 31, 2021	21,294	$	424	$	1,997	$	658	$	3,079
Net income						147		147
Capital contributions from parent				10				10
Dividends declared						(136)		(136)
June 30, 2022	21,294	$	424	$	2,007	$	669	$	3,100

(a)Shares in thousands. All common shares of LG&E stock are owned by LKE.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

20

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21

CONDENSED STATEMENTS OF INCOME

Kentucky Utilities Company

(Unaudited)

(Millions of Dollars)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Operating Revenues
Retail and wholesale	$	433	$	484	$	931	$	1,007
Electric revenue from affiliate	2		7		3		9
Total Operating Revenues	435		491		934		1,016
Operating Expenses
Operation
Fuel	99		139		221		270
Energy purchases	6		7		12		12
Energy purchases from affiliate	8		11		21		23
Other operation and maintenance	117		120		226		233
Depreciation	98		98		196		193
Taxes, other than income	12		11		22		22
Total Operating Expenses	340		386		698		753
Operating Income	95		105		236		263
Other Income (Expense) - net	3		4		5		4
Interest Expense	33		28		66		55
Interest Expense with Affiliate	1		—		1		—
Income Before Income Taxes	64		81		174		212
Income Taxes	13		15		35		39
Net Income (a)	$	51	$	66	$	139	$	173

(a)Net income equals comprehensive income.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

22

CONDENSED STATEMENTS OF CASH FLOWS

Kentucky Utilities Company

(Unaudited)

(Millions of Dollars)

	Six Months Ended June 30,
	2023		2022
Cash Flows from Operating Activities
Net income	$	139	$	173
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	196		193
Amortization	9		8
Defined benefit plans - (income)	(2)		(2)
Deferred income taxes and investment tax credits	(6)		(5)
Other	7		2
Change in current assets and current liabilities
Accounts receivable	24		1
Accounts payable	(30)		18
Accounts payable to affiliates	(22)		(13)
Unbilled revenues	27		(4)
Fuel, materials and supplies	(25)		(5)
Regulatory assets and liabilities, net	18		(21)
Taxes payable	(3)		5
Accrued interest	6		—
Other	(7)		(4)
Other operating activities
Defined benefit plans - funding	—		(1)
Expenditures for asset retirement obligations	(10)		(14)
Other assets	(20)		2
Other liabilities	(3)		(1)
Net cash provided by operating activities	298		332
Cash Flows from Investing Activities
Expenditures for property, plant and equipment	(299)		(273)
Net cash used in investing activities	(299)		(273)
Cash Flows from Financing Activities
Net increase (decrease) in notes payable to affiliates	8		(294)
Issuance of long-term debt	399		—
Retirement of long-term debt	(313)		—
Net increase (decrease) in short-term debt	(9)		338
Payment of common stock dividends to parent	(92)		(159)
Contributions from parent	54		60
Return of capital to parent	(54)		—
Other financing activities	(4)		—
Net cash used in financing activities	(11)		(55)
Net Increase (Decrease) in Cash and Cash Equivalents	(12)		4
Cash and Cash Equivalents at Beginning of Period	21		13
Cash and Cash Equivalents at End of Period	$	9	$	17
Supplemental Disclosure of Cash Flow Information
Significant non-cash transactions:
Accrued expenditures for property, plant and equipment at June 30,	$	51	$	46

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

23

CONDENSED BALANCE SHEETS

Kentucky Utilities Company

(Unaudited)

(Millions of Dollars, shares in thousands)

	June 30, 2023		December 31, 2022
Assets
Current Assets
Cash and cash equivalents	$	9	$	21
Accounts receivable (less reserve: 2023, $3; 2022, $3)
Customer	133		158
Other	13		13
Unbilled revenues (less reserve: 2023, $0; 2022, $0)	87		114
Fuel, materials and supplies	193		167
Prepayments	16		14
Regulatory assets	10		32
Other current assets	—		1
Total Current Assets	461		520
Property, Plant and Equipment
Regulated utility plant	9,700		9,515
Less: accumulated depreciation - regulated utility plant	2,344		2,201
Regulated utility plant, net	7,356		7,314
Construction work in progress	592		522
Property, Plant and Equipment, net	7,948		7,836
Other Noncurrent Assets
Regulatory assets	447		442
Goodwill	607		607
Other intangibles	20		21
Other noncurrent assets	127		116
Total Other Noncurrent Assets	1,201		1,186
Total Assets	$	9,610	$	9,542

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

24

CONDENSED BALANCE SHEETS

Kentucky Utilities Company

(Unaudited)

(Millions of Dollars, shares in thousands)

	June 30, 2023		December 31, 2022
Liabilities and Equity
Current Liabilities
Short-term debt	$	92	$	101
Long-term debt due within one year	—		13
Notes payable to affiliates	8		—
Accounts payable	86		123
Accounts payable to affiliates	75		101
Customer deposits	34		33
Taxes	23		26
Regulatory liabilities	2		6
Interest	25		19
Asset retirement obligations	19		26
Other current liabilities	49		51
Total Current Liabilities	413		499
Long-term Debt	3,003		2,907
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	903		896
Investment tax credits	84		85
Asset retirement obligations	56		56
Regulatory liabilities	1,032		1,029
Other deferred credits and noncurrent liabilities	34		32
Total Deferred Credits and Other Noncurrent Liabilities	2,109		2,098
Commitments and Contingent Liabilities (Notes 6 and 10)
Stockholder's Equity
Common stock - no par value (a)	308		308
Additional paid-in capital	3,041		3,041
Earnings reinvested	736		689
Total Equity	4,085		4,038
Total Liabilities and Equity	$	9,610	$	9,542

(a)80,000 shares authorized; 37,818 shares issued and outstanding at June 30, 2023 and December 31, 2022.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

25

CONDENSED STATEMENTS OF EQUITY

Kentucky Utilities Company

(Unaudited)

(Millions of Dollars)

	Common stock shares outstanding (a)	Common stock		Additional paid-in capital		Earnings reinvested		Total
March 31, 2023	37,818	$	308	$	2,987	$	742	$	4,037
Net income						51		51
Capital contributions from parent				54				54
Dividends declared						(57)		(57)
June 30, 2023	37,818	$	308	$	3,041	$	736	$	4,085
December 31, 2022	37,818	$	308	$	3,041	$	689	$	4,038
Net income						139		139
Capital contributions from parent				54				54
Return of capital to parent				(54)				(54)
Dividends declared						(92)		(92)
June 30, 2023	37,818	$	308	$	3,041	$	736	$	4,085
March 31, 2022	37,818	$	308	$	2,957	$	680	$	3,945
Net income						66		66
Capital contributions from parent				60				60
Dividends declared						(69)		(69)
June 30, 2022	37,818	$	308	$	3,017	$	677	$	4,002
December 31, 2021	37,818	$	308	$	2,957	$	663	$	3,928
Net income						173		173
Capital contributions from parent				60				60
Dividends declared						(159)		(159)
June 30, 2022	37,818	$	308	$	3,017	$	677	$	4,002

(a)Shares in thousands. All common shares of KU stock are owned by LKE.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

26

Combined Notes to Condensed Financial Statements (Unaudited)

Index to Combined Notes to Condensed Financial Statements

The notes to the condensed financial statements that follow are a combined presentation. The following list indicates the Registrants to which the notes apply:

	Registrant
	PPL	PPL Electric	LG&E	KU
1. Interim Financial Statements	x	x	x	x
2. Segment and Related Information	x	x	x	x
3. Revenue from Contracts with Customers	x	x	x	x
4. Earnings Per Share	x
5. Income Taxes	x	x	x	x
6. Utility Rate Regulation	x	x	x	x
7. Financing Activities	x	x	x	x
8. Acquisitions, Development and Divestitures	x
9. Defined Benefits	x	x	x	x
10. Commitments and Contingencies	x	x	x	x
11. Related Party Transactions		x	x	x
12. Other Income (Expense) - net	x	x
13. Fair Value Measurements	x	x	x	x
14. Derivative Instruments and Hedging Activities	x	x	x	x
15. Asset Retirement Obligations	x		x	x
16. Accumulated Other Comprehensive Income (Loss)	x

1. Interim Financial Statements

(All Registrants)

Capitalized terms and abbreviations appearing in the unaudited combined notes to condensed financial statements are defined in the glossary. Dollars are in millions, except per share data, unless otherwise noted. The specific Registrant to which disclosures are applicable is identified in parenthetical headings in italics above the applicable disclosure or within the applicable disclosure for each Registrant's related activities and disclosures. Within combined disclosures, amounts are disclosed for any Registrant when significant.

The accompanying unaudited condensed financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all of the information and footnote disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation in accordance with GAAP are reflected in the condensed financial statements. All adjustments are of a normal recurring nature, except as otherwise disclosed. Each Registrant's Balance Sheet at December 31, 2022 is derived from that Registrant's 2022 audited Balance Sheet. The financial statements and notes thereto should be read in conjunction with the financial statements and notes contained in each Registrant's 2022 Form 10-K. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for the full year ending December 31, 2023 or other future periods, because results for interim periods can be disproportionately influenced by various factors, developments and seasonal variations.

(PPL)

On May 25, 2022, PPL Rhode Island Holdings acquired 100% of the outstanding shares of common stock of Narragansett Electric from National Grid USA, a subsidiary of National Grid plc (the Acquisition). The results of Narragansett Electric are included in the consolidated results of PPL from the date of the Acquisition. Following the closing of the Acquisition,

27

Narragansett Electric provides services doing business under the name Rhode Island Energy (RIE). See Note 8 for additional information.

2. Segment and Related Information

(PPL)

PPL is organized into three segments: Kentucky Regulated, Pennsylvania Regulated and Rhode Island Regulated. PPL's segments are determined by geographic location.

Beginning on January 1, 2023, the Kentucky Regulated segment consists primarily of the regulated electricity generation, transmission and distribution operations conducted by LG&E and KU, as well as LG&E's regulated distribution and sale of natural gas. Prior to January 1, 2023, the Kentucky Regulated segment also included the financing activities of LKE. The financing activity of LKE is presented in "Corporate and Other" beginning on January 1, 2023. Prior periods have been adjusted to reflect this change. As a result, PPL’s segments consist of its regulated operations in Kentucky, Pennsylvania and Rhode Island and exclude any incremental financing activities of holding companies, which Management believes is a more meaningful presentation as it provides information on the core regulated operations of PPL.

The Pennsylvania Regulated segment includes the regulated electricity transmission and distribution operations of PPL Electric.

The Rhode Island Regulated segment includes the regulated electricity transmission and distribution and natural gas distribution operations of RIE, which were acquired on May 25, 2022.

"Corporate and Other" primarily includes corporate level financing costs, certain unallocated costs, certain non-recoverable costs incurred in conjunction with the acquisition of Narragansett Electric and the financial results of Safari Energy, prior to its sale on November 1, 2022. "Corporate and Other" is presented to reconcile segment information to PPL's consolidated results.

Income Statement data for the segments and reconciliation to PPL's consolidated results for the periods ended June 30 are as follows:

	Three Months				Six Months
	2023		2022		2023		2022
Operating Revenues from external customers
Kentucky Regulated	$	778	$	883	$	1,738	$	1,887
Pennsylvania Regulated	667		676		1,558		1,451
Rhode Island Regulated	377		128		942		128
Corporate and Other	1		9		—		12
Total	$	1,823	$	1,696	$	4,238	$	3,478
Net Income (Loss)
Kentucky Regulated	$	91	$	112	$	257	$	301
Pennsylvania Regulated	110		124		248		267
Rhode Island Regulated	10		(29)		64		(29)
Corporate and Other	(99)		(88)		(172)		(147)
Total	$	112	$	119	$	397	$	392

The following provides Balance Sheet data for the segments and reconciliation to PPL's consolidated Balance Sheets as of:

	June 30, 2023		December 31, 2022
Assets
Kentucky Regulated	$	16,794	$	16,904
Pennsylvania Regulated	13,929		13,565
Rhode Island Regulated	6,217		6,081
Corporate and Other (a)	1,356		1,287
Total	$	38,296	$	37,837

(a)Primarily consists of unallocated items, including cash, PP&E, goodwill and the elimination of inter-segment transactions.

28

(PPL Electric, LG&E and KU)

PPL Electric has two operating segments, distribution and transmission, which are aggregated into a single reportable segment. Each of LG&E and KU is a single operating and reportable segment.

3. Revenue from Contracts with Customers

(All Registrants)

See Note 3 in the Registrants' 2022 Form 10-K for a discussion of the principal activities from which PPL Electric, LG&E and KU and PPL’s Pennsylvania Regulated, Rhode Island Regulated, and Kentucky Regulated segments generate their revenues.

The following tables reconcile "Operating Revenues" included in each Registrant's Statement of Income with revenues generated from contracts with customers for the periods ended June 30.

	2023 Three Months
	PPL		PPL Electric		LG&E		KU
Operating Revenues (a)	$	1,823	$	667	$	355	$	435
Revenues derived from:
Alternative revenue programs (b)	5		6		—		(3)
Other (c)	(7)		(5)		(1)		(1)
Revenues from Contracts with Customers	$	1,821	$	668	$	354	$	431
	2022 Three Months
	PPL		PPL Electric		LG&E		KU
Operating Revenues (a)	$	1,696	$	676	$	410	$	491
Revenues derived from:
Alternative revenue programs (b)	(40)		(23)		3		1
Other (c)	(6)		(3)		(2)		(2)
Revenues from Contracts with Customers	$	1,650	$	650	$	411	$	490
	2023 Six Months
	PPL		PPL Electric		LG&E		KU
Operating Revenues (a)	$	4,238	$	1,558	$	829	$	934
Revenues derived from:
Alternative revenue programs (b)	42		7		1		(3)
Other (c)	(11)		(7)		(2)		(2)
Revenues from Contracts with Customers	$	4,269	$	1,558	$	828	$	929
	2022 Six Months
	PPL		PPL Electric		LG&E		KU
Operating Revenues (a)	$	3,478	$	1,451	$	903	$	1,016
Revenues derived from:
Alternative revenue programs (b)	(67)		(59)		9		4
Other (c)	(13)		(7)		(4)		(3)
Revenues from Contracts with Customers	$	3,398	$	1,385	$	908	$	1,017

(a)PPL includes $377 million and $942 million for the three and six months ended June 30, 2023 and $128 million for the three and six months ended June 30, 2022 of revenues from external customers reported by the Rhode Island Regulated segment. PPL Electric represents revenues from external customers reported by the Pennsylvania Regulated segment and LG&E and KU, net of intercompany power sales and transmission revenues, represent revenues from external customers reported by the Kentucky Regulated segment. See Note 2 for additional information.

(b)This line item shows the over/under collection of rate mechanisms deemed alternative revenue programs with over-collections of revenue shown as positive amounts in the table above and under-collections shown as negative amounts. For PPL Electric, the three and six months ended June 30, 2022, included $30 million and $74 million related to the amortization of the regulatory liability recorded in 2021 for a reduction in the transmission formula rate return on equity that was reflected in rates in 2022.

(c)Represents additional revenues outside the scope of revenues from contracts with customers, such as lease and other miscellaneous revenues.

29

The following tables show revenues from contracts with customers disaggregated by customer class for the periods ended June 30.

	Three Months
	Residential		Commercial		Industrial		Other (a)		Wholesale - municipality		Wholesale - other (b)		Transmission		Revenues from Contracts with Customers
PPL
2023
PA Regulated	$	340	$	105	$	11	$	13	$	—	$	—	$	199	$	668
KY Regulated	298		237		160		66		4		9				774
RI Regulated	141		49		4		149		—		—		36		379
Corp and Other	—		—		—		—		—		—		—		—
Total PPL	$	779	$	391	$	175	$	228	$	4	$	9	$	235	$	1,821
2022
PA Regulated	$	329	$	117	$	30	$	14	$	—	$	—	$	160	$	650
KY Regulated	339		251		167		93		8		26		—		884
RI Regulated	31		12		1		47		—		—		16		107
Corp and Other	—		—		—		9		—		—		—		9
Total PPL	$	699	$	380	$	198	$	163	$	8	$	26	$	176	$	1,650
PPL Electric
2023	$	340	$	105	$	11	$	13	$	—	$	—	$	199	$	668
2022	$	329	$	117	$	30	$	14	$	—	$	—	$	160	$	650
LG&E
2023	$	151	$	119	$	47	$	26	$	—	$	11	$	—	$	354
2022	$	169	$	124	$	49	$	47	$	—	$	22	$	—	$	411
KU
2023	$	147	$	117	$	113	$	40	$	4	$	10	$	—	$	431
2022	$	170	$	127	$	118	$	45	$	8	$	22	$	—	$	490

	Six Months
	Residential		Commercial		Industrial		Other (a)		Wholesale - municipality		Wholesale - other (b)		Transmission		Revenues from Contracts with Customers
PPL
2023
PA Regulated	$	968	$	253	$	34	$	26	$	—	$	—	$	277	$	1,558
KY Regulated	741		511		324		126		11		20		—		1,733
RI Regulated	370		150		13		364		—		—		81		978
Corp and Other	—		—		—		—		—		—		—		—
Total PPL	$	2,079	$	914	$	371	$	516	$	11	$	20	$	358	$	4,269
2022
PA Regulated	$	782	$	225	$	45	$	26	$	—	$	—	$	307	$	1,385
KY Regulated	817		521		321		176		14		45		—		1,894
RI Regulated	31		12		1		47		—		—		16		107
Corp and Other	—		—		—		12		—		—		—		12
Total PPL	$	1,630	$	758	$	367	$	261	$	14	$	45	$	323	$	3,398

30

	Six Months
	Residential		Commercial		Industrial		Other (a)		Wholesale - municipality		Wholesale - other (b)		Transmission		Revenues from Contracts with Customers
PPL Electric
2023	$	968	$	253	$	34	$	26	$	—	$	—	$	277	$	1,558
2022	$	782	$	225	$	45	$	26	$	—	$	—	$	307	$	1,385
LG&E
2023	$	392	$	271	$	96	$	42	$	—	$	27	$	—	$	828
2022	$	415	$	270	$	94	$	86	$	—	$	43	$	—	$	908
KU
2023	$	349	$	240	$	228	$	84	$	11	$	17	$	—	$	929
2022	$	402	$	251	$	227	$	89	$	14	$	34	$	—	$	1,017

(a)Primarily includes revenues from pole attachments, street lighting, other public authorities and other non-core businesses. The Rhode Island Regulated segment primarily includes open access tariff revenues, which are calculated on combined customer classes.

(b)Includes wholesale power and transmission revenues. LG&E and KU amounts include intercompany power sales and transmission revenues, which are eliminated upon consolidation at the Kentucky Regulated segment.

As discussed in Note 2, PPL segments its business by geographic location. Revenues from external customers for each segment/geographic location are reconciled to revenues from contracts with customers in the footnotes to the tables above.

Contract receivables from customers are primarily included in "Accounts receivable - Customer", "Unbilled revenues", and "Other noncurrent assets" on the Balance Sheets.

The following table shows the accounts receivable and unbilled revenues balances that were impaired for the periods ended June 30.

	Three Months				Six Months
	2023		2022		2023		2022
PPL	$	6	$	25	$	26	$	33
PPL Electric	7		—		17		5
LG&E	—		1		1		2
KU	1		1		1		2

The following table shows the balances and certain activity of contract liabilities resulting from contracts with customers.

	PPL		PPL Electric		LG&E		KU
Contract liabilities at December 31, 2022	$	34	$	23	$	5	$	6
Contract liabilities at June 30, 2023	48		35		6		7
Revenue recognized during the six months ended June 30, 2023 that was included in the contract liability balance at December 31, 2022	18		7		5		6
Contract liabilities at December 31, 2021	$	42	$	25	$	6	$	6
Contract liabilities at June 30, 2022	33		16		6		5
Revenue recognized during the six months ended June 30, 2022 that was included in the contract liability balance at December 31, 2021	24		12		6		6

Contract liabilities result from recording contractual billings in advance for customer attachments to the Registrants' infrastructure and payments received in excess of revenues earned to date. Advanced billings for customer attachments are generally recognized as revenue ratably over the quarterly billing period. Payments received in excess of revenues earned to date are recognized as revenue as services are delivered in subsequent periods.

31

4. Earnings Per Share

(PPL)

Basic EPS is computed by dividing income available to PPL common shareowners by the weighted-average number of common shares outstanding during the applicable period. Diluted EPS is computed by dividing income available to PPL common shareowners by the weighted-average number of common shares outstanding, increased by incremental shares that would be outstanding if potentially dilutive share-based payment awards were converted to common shares as calculated using the Two-Class Method or Treasury Stock Method. The If-Converted Method will be applied to the Exchangeable Senior Notes due 2028 issued in February 2023. See Note 7 for additional information.

Reconciliations of the amounts of income and shares of PPL common stock (in thousands) for the periods ended June 30 used in the EPS calculation are:

	Three Months				Six Months
	2023		2022		2023		2022
Income (Numerator)
Net income attributable to PPL	$	112	$	119	$	397	$	392
Less amounts allocated to participating securities	—		—		1		—
Net income available to PPL common shareowners - Basic and Diluted	$	112	$	119	$	396	$	392
Shares of Common Stock (Denominator)
Weighted-average shares - Basic EPS	737,075		735,977		736,953		735,741
Add: Dilutive share-based payment awards	1,102		792		985		737
Weighted-average shares - Diluted EPS	738,177		736,769		737,938		736,478
Basic and Diluted EPS
Net Income available to PPL common shareowners	$	0.15	$	0.16	$	0.54	$	0.53

For the periods ended June 30, PPL issued shares of common stock related to stock-based compensation plans as follows (in thousands):

	Three Months		Six Months
	2023	2022	2023	2022
Stock-based compensation plans	—	—	—	124

For the periods ended June 30, the following shares (in thousands) were excluded from the computations of diluted EPS because the effect would have been antidilutive.

	Three Months		Six Months
	2023	2022	2023	2022
Stock-based compensation awards	258	66	396	110

32

5. Income Taxes

Reconciliations of income tax expense (benefit) for the periods ended June 30 are as follows.

(PPL)
	Three Months				Six Months
	2023		2022		2023		2022
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	30	$	32	$	107	$	104
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	11		27		33		48
Valuation allowance adjustments	5		7		7		10
Amortization of investment tax credit including deferred taxes on basis adjustment	—		(4)		(1)		(7)
Depreciation and other items not normalized	(2)		(5)		(7)		(8)
Amortization of excess deferred federal and state income taxes	(8)		(22)		(20)		(40)
Other	(3)		(3)		(7)		(1)
Total increase (decrease)	3		—		5		2
Total income tax expense (benefit)	$	33	$	32	$	112	$	106

(PPL Electric)
	Three Months				Six Months
	2023		2022		2023		2022
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	31	$	35	$	70	$	76
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	11		13		24		28
Depreciation and other items not normalized	(3)		(3)		(7)		(6)
Amortization of excess deferred federal and state income taxes	(2)		(2)		(4)		(5)
Other	1		1		—		1
Total increase (decrease)	7		9		13		18
Total income tax expense (benefit)	$	38	$	44	$	83	$	94

(LG&E)
	Three Months				Six Months
	2023		2022		2023		2022
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	12	$	13	$	35	$	37
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	2		2		6		7
Amortization of excess deferred federal and state income taxes	(3)		(7)		(6)		(14)
Other	—		1		(1)		(2)
Total increase (decrease)	(1)		(4)		(1)		(9)
Total income tax expense (benefit)	$	11	$	9	$	34	$	28

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(KU)
	Three Months				Six Months
	2023		2022		2023		2022
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	13	$	17	$	36	$	45
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	3		3		7		8
Amortization of excess deferred federal and state income taxes	(4)		(6)		(8)		(12)
Other	1		1		—		(2)
Total increase (decrease)	—		(2)		(1)		(6)
Total income tax expense (benefit)	$	13	$	15	$	35	$	39

Other

Narragansett Electric Acquisition (PPL)

The acquisition of Narragansett Electric on May 25, 2022 was deemed an asset acquisition for federal and state income tax purposes, as a result of PPL and National Grid making a tax election under Internal Revenue Code (IRC) §338(h)(10). Accordingly, the tax bases of substantially all of the assets acquired were increased to fair market value, which equaled net book value, thereby eliminating the related deferred tax assets and liabilities. This election resulted in tax goodwill that will be amortized for tax purposes over 15 years.

Pennsylvania State Tax Reform (PPL and PPL Electric)

On July 8, 2022, the Governor of Pennsylvania signed into law Pennsylvania House Bill 1342 (H.B. 1342). Among other changes to the state tax code, the bill reduces the corporate net income tax rate from 9.99% to 8.99% beginning January 1, 2023, and further reduces the rate annually by half a percentage point until the rate reaches 4.99% in 2031.

Inflation Reduction Act (All Registrants)

On August 16, 2022, the Inflation Reduction Act (IRA) was signed into law. Among other things, the IRA enacted a new 15% corporate "book minimum tax," which is based on adjusted GAAP pre-tax income and is only applicable to corporations whose pre-tax income exceeds a certain threshold. PPL does not expect to be subject to the book minimum tax in 2023. The Registrants will continue to assess the impacts of the IRA on their financial statements and will monitor guidance issued by the U.S. Treasury in the future. In addition, the IRA enacted numerous new tax credits, largely associated with renewable energy.

IRS Revenue Procedure 2023-15 (PPL and LG&E)

On April 14, 2023, the IRS issued Revenue Procedure 2023-15, which provides a safe harbor method of accounting that taxpayers may use to determine whether expenses to repair, maintain, replace, or improve natural gas transmission and distribution property must be capitalized for tax purposes. PPL and LG&E are currently reviewing the revenue procedure to determine what impact the newly issued guidance may have on their financial statements.

6. Utility Rate Regulation

(All Registrants)

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

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	PPL				PPL Electric				LG&E				KU
	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Current Regulatory Assets:
Gas supply clause	$	—	$	41	$	—	$	—	$	—	$	13	$	—	$	—
Rate adjustment mechanisms	214		96		—		—		—		—		—		—
Renewable energy certificates	13		14		—		—		—		—		—		—
Derivative instruments	15		41		—		—		—		—		—		—
Smart meter rider	5		5		5		5		—		—		—		—
Universal service rider	21		3		21		3		—		—		—		—
Fuel adjustment clause	9		38		—		—		2		9		7		29
Transmission service charge	12		—		12		—		—		—		—		—
Other	42		20		11		5		2		1		3		3
Total current regulatory assets	$	331	$	258	$	49	$	13	$	4	$	23	$	10	$	32
Noncurrent Regulatory Assets:
Defined benefit plans	$	783	$	778	$	353	$	353	$	208	$	209	$	139	$	140
Plant outage costs	42		46		—		—		11		12		31		34
Net metering	89		61		—		—		—		—		—		—
Environmental cost recovery	101		102		—		—		—		—		—		—
Taxes recoverable through future rates	38		47		—		—		—		—		—		—
Storm costs	111		118		—		—		15		7		14		3
Unamortized loss on debt	24		21		4		3		11		11		7		7
Interest rate swaps	6		7		—		—		6		7		—		—
Terminated interest rate swaps	61		63		—		—		36		37		25		26
Accumulated cost of removal of utility plant	195		212		195		212		—		—		—		—
AROs	292		295		—		—		76		76		216		219
Derivatives instruments	7		—		—		—		—		—		—		—
Other	77		69		—		—		21		14		15		13
Total noncurrent regulatory assets	$	1,826	$	1,819	$	552	$	568	$	384	$	373	$	447	$	442

	PPL				PPL Electric				LG&E				KU
	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Current Regulatory Liabilities:
Generation supply charge	$	41	$	37	$	41	$	37	$	—	$	—	$	—	$	—
Transmission service charge	—		14		—		7		—		—		—		—
TCJA customer refund	6		15		6		15		—		—		—		—
Act 129 compliance rider	15		14		15		14		—		—		—		—
Transmission formula rate	23		12		20		12		—		—		—		—
Rate adjustment mechanism	133		96		—		—		—		—		—		—
Energy efficiency	23		23		—		—		—		—		—		—
Gas supply clause	16		—		—		—		16		—		—		—
Other	23		27		—		—		3		7		2		6
Total current regulatory liabilities	$	280	$	238	$	82	$	85	$	19	$	7	$	2	$	6

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	PPL				PPL Electric				LG&E				KU
	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	978	$	950	$	—	$	—	$	296	$	287	$	396	$	389
Power purchase agreement - OVEC	22		26		—		—		15		18		7		8
Net deferred taxes	2,054		2,094		776		775		469		477		535		546
Defined benefit plans	225		187		59		45		21		21		57		56
Terminated interest rate swaps	58		60		—		—		29		30		29		30
Energy efficiency	39		32		—		—		—		—		—		—
Other	45		63		—		—		3		—		8		—
Total noncurrent regulatory liabilities	$	3,421	$	3,412	$	835	$	820	$	833	$	833	$	1,032	$	1,029

Regulatory Matters

Rhode Island Activities (PPL)

Rate Case proceedings

Pursuant to Report and Order No. 23823 issued May 5, 2020, the RIPUC approved the terms of an Amended Settlement Agreement (ASA), reflecting an allowed return on equity (ROE) rate of 9.275% based on a common equity ratio of approximately 51%. RIE is currently in year five of the multi-year rate plan (Rate Plan). On June 30, 2021, the Rhode Island Division of Public Utilities and Carriers consented to an open-ended extension of the term of the Rate Plan. Pursuant to the settlement with the Rhode Island Office of the Attorney General in connection with the acquisition of RIE by PPL, RIE currently does not anticipate filing a new base rate case before May 25, 2025. Pursuant to the open-ended extension, the Rate Year 3 level of base distribution rates under ASA will remain in effect and RIE will continue to operate under the current Rate Plan until a new Rate Plan is approved by the RIPUC.

The ASA includes additional provisions, including (i) an Electric Transportation Initiative (the ET Initiative) to facilitate the growth of Electric Vehicle (EV) adoption and scaling of the market for EV charging equipment to advance Rhode Island's zero emission vehicles and greenhouse gas emissions policy goals, (ii) two energy storage demonstration projects, which are on track for timely completion, (iii) an incentive-only performance incentive for System Efficiency: Annual Megawatt Capacity Savings, which sunset in 2021 and is now a tracking and reporting only metric, and (iv) several additional metrics for tracking and reporting purposes only. The RIPUC discussed the ET Initiative at an Open Meeting on August 30, 2022, advising RIE to seek RIPUC authorization to continue the ET Initiative and/or to alter any of the targets established in the ASA for Rate Year 5 and beyond. No votes or official rulings were taken; however, based on this feedback, RIE has paused the ET programs in Rate Year 5. As of June 30, 2023, the RIPUC had not made any rulings regarding the timing of crediting customers the deferral balance pursuant to the ASA. RIE cannot predict the outcome of this matter.

Advanced Metering Functionality and Grid Modernization

In 2021, RIE filed its Updated Advanced Metering Functionality (AMF) Business Case and Grid Modernization Plan (GMP) with the RIPUC in accordance with the ASA, and which, among other things, sought approval to deploy smart meters throughout the service territory. In 2021, the RIPUC stayed the AMF and GMP proceedings pending further consideration following the issuance of a final Order by the Rhode Island Division of Public Utilities and Carriers on the acquisition of RIE. RIE filed notice of withdrawal of the original Updated AMF Business Case and GMP with the RIPUC, and in November 2022 filed a new AMF Business Case with the RIPUC. The new AMF Business Case filing consists of a detailed proposal for full-scale deployment of AMF across its electric service territory. The proposal will enable significant customer and grid benefits in line with the state’s climate mandates. In its filing, RIE estimated that the proposed program would cost $188 million on a net present value (NPV) basis and provide benefits of $729 million NPV over the 20-year project life, yielding a benefit-cost ratio of 3.9%. RIE believes AMF is a foundational technology that is a necessary first step to transforming Rhode Island’s electric distribution system.

In its filing, RIE requested a RIPUC decision by June 2023; the RIPUC issued a revised procedural schedule for the AMF Business Case filing that provides for hearings in July 2023. Evidentiary hearings commenced on July 20, 2023 and continued on July 25, 2023 through July 27, 2023. In addition, the RIPUC held a public comment hearing on April 4, 2023, and technical

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sessions on February 22, 2023, May 10, 2023 and June 13, 2023. The RIPUC also held a separate evidentiary hearing on April 14, 2023, regarding certain Motions for Confidential Treatment by RIE.

RIE filed a new GMP with the RIPUC on December 30, 2022. The new GMP filing consists of a holistic suite of grid modernization investments that will provide RIE with the tools and capability to manage the electric distribution system more granularly considering a range of distributed energy resources adoption levels, accelerated by Rhode Island's climate mandates, while at the same time maintaining a safe and reliable electric distribution system. The GMP is an informational guidance document that supports the grid modernization investments to be proposed in future electric ISR plans. Consequently, RIE did not request approval from the RIPUC for any specific investments or seek cost recovery as part of the GMP; rather, RIE requested that the RIPUC issue an order affirming RIE’s compliance with its obligation to file a GMP that meets the requirements of the ASA.

COVID-19 Deferral Filing

On April 30, 2021, RIE filed a petition for approval to recognize regulatory assets related to COVID-19 impacts (RIPUC Docket No. 5154). In its petition, RIE sought the RIPUC's authorization to create regulatory assets and consideration of future cost recovery for the following COVID-19 costs: (1) the increased cost of customer accounts receivable that RIE will be unable to collect as a result of the COVID-19 pandemic, and the executive orders and RIPUC orders restricting RIE's collection activities as a result of the pandemic, which will result in increased net charge-offs; (2) lost revenue from unassessed late payment charges; and (3) charges to RIE for other fees that RIE has waived pursuant to the RIPUC's orders in RIPUC Docket No. 5022. RIE is evaluating its request to create a regulatory asset for COVID-19-related bad debt expense to consider the impact, if any, of the proposed arrearage forgiveness sought in RIE’s Petition to Forgive Certain Arrearage Balances for Low-Income and Protected Customers in Docket No. 22-08-GE, which RIE filed with the RIPUC to fulfill its obligations under PPL's settlement with the Rhode Island Attorney General. RIE cannot predict the outcome of this matter.

FY 2023 Gas Infrastructure, Safety and Reliability (ISR) Plan

At an Open Meeting on March 29, 2022, the RIPUC conditionally approved RIE’s FY 2023 Gas ISR Plan and associated revenue requirement, subject to further review regarding RIE's Proactive Main Replacement Program and its decision to reconstruct and purchase heating and pressure regulation equipment located at RIE’s Wampanoag and Tiverton take stations. The RIPUC held an Open Meeting on September 13, 2022, and issued its Order on November 18, 2022 regarding the Proactive Main Replacement Program and made the following rulings: (1) commencing with the Gas ISR plan to be filed in this calendar year 2022 (prospectively), new main constructed to replace leak prone pipe will not be considered used and useful, and therefore not eligible for rate base treatment, until the related old main is abandoned; and (2) approved the proactive main replacement revenue requirement set forth in the FY2023 Gas ISR plan. Also, the RIPUC directed RIE to submit prefiled testimony on the issue of its replacement of heating and pressure regulation facilities at the Wampanoag and Tiverton take stations and to address three issues, specifically: (i) a cost-benefit analysis arising from RIE's decision to take ownership of the reconstructed take station equipment; (ii) the potential that the benefits derived from the reconstruction and ownership transfer of the take station equipment will not be realized due to the future use of hydrogen or abandonment of the gas system; and (iii) the depreciation and accounting treatment of the reconstructed take station equipment. RIE filed this testimony with the RIPUC on May 16, 2022, the RIPUC has not taken any action to date on this issue. RIE cannot predict the outcome of this matter.

FY 2024 Gas ISR Plan

On December 23, 2022, RIE filed its FY 2024 Gas ISR Plan with the RIPUC. At its January 20, 2023 Open Meeting, the RIPUC directed RIE to file supplemental budget and rate schedules to reflect an April 1 to March 31 fiscal year. The supplemental budget that was filed with the RIPUC on January 27, 2023 includes $187 million of capital investment spend. The supplemental rate schedules were filed on February 3, 2023. RIE and the Rhode Island Division of Public Utilities and Carriers reached an agreement on an approximately $171 million capital investment spending plan, and RIE filed a second supplemental budget on March 13, 2023. The RIPUC held a hearing on the plan on March 14, 2023. At an Open Meeting on March 29, 2023, the RIPUC approved the plan with an adjustment to the budget for the Proactive Main Replacement Program category resulting in a total approved FY 2024 Gas ISR Plan of $163 million for capital investment spend. On March 31, 2023, the RIPUC approved RIE's March 30, 2023 compliance filing for rates effective April 1, 2023. The RIPUC continues to consider the appropriate rate recovery treatment of projects not covered by an ISR plan for the applicable fiscal year, and additional definitions and procedures that may be implemented related to the ISR plan process. RIE cannot predict the outcome of this matter.

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FY 2024 Electric ISR Plan

On December 23, 2022, RIE filed its FY 2024 Electric ISR Plan with the RIPUC. At its January 20, 2023 Open Meeting, the RIPUC directed RIE to file supplemental budget and rate schedules to reflect an April 1 to March 31 fiscal year. The supplemental budget filed with the RIPUC on January 27, 2023 includes $176 million of capital investment spend, $14 million of vegetation operations and management (O&M) spend and $3 million of Other O&M spend. The supplemental rate schedules were filed on February 3, 2023. RIE filed second supplemental budget schedules on March 21, 2023, which includes $166 million of capital investment spend, $14 million of vegetation management O&M spend and $1 million of Other O&M spend. The RIPUC held hearings in March 2023, and on March 29, 2023, approved the plan with modifications to the proposed capital investment spend, resulting in a total approved FY 2024 Electric ISR Plan of $112 million for capital investment spend, $14 million for vegetation management O&M spend, and $1 million for Other O&M spend. On March 31, 2023, the RIPUC approved RIE's March 30, 2023 compliance filing for rates effective April 1, 2023. The RIPUC continues to consider the appropriate rate recovery treatment of projects not covered by an ISR plan for the applicable fiscal year, and additional definitions and procedures that may be implemented related to the ISR plan process. RIE cannot predict the outcome of this matter.

Kentucky Activities (PPL, LG&E and KU)

CPCN and SB 4 Application

On December 15, 2022, LG&E and KU filed an application with the KPSC for a CPCN for the construction of two 621 MW net summer rating NGCC combustion turbine facilities, one at LG&E's Mill Creek Generating Station in Jefferson County, Kentucky and the other at KU's E.W. Brown Generating Station in Mercer County, Kentucky, including on-site natural gas and electric transmission construction associated with those facilities and site compatibility certificates. LG&E and KU also applied for a CPCN to construct a 120 MWac solar photovoltaic electric generating facility in Mercer County, Kentucky, and for a CPCN to acquire a 120 MWac solar facility to be built by a third-party solar developer in Marion County, Kentucky. LG&E and KU further applied for a CPCN to construct a 125 MW, 4-hour battery energy storage system facility at KU's E.W. Brown Generating Station and for approval of their proposed 2024-2030 DSM programs. The plan includes adding 14 new, adjusted or expanded energy efficiency programs, which would reduce LG&E's and KU's overall need by approximately 100 MW each. Finally, LG&E and KU requested a declaratory order to confirm that their entry into non-firm energy-only power-purchase agreements for the output of four solar photovoltaic facilities with a combined capacity of 637 MW does not require KPSC approval and that LG&E and KU may recover the costs of the solar PPAs through their fuel adjustment clause mechanisms as previously approved for a prior solar PPA. LG&E and KU plan to accrue AFUDC on the constructed NGCC facilities, the solar facility in Mercer County, Kentucky and the battery energy storage system facility and have requested regulatory asset treatment to recover the financing costs of these projects.

The new NGCC facilities would be jointly owned by LG&E (31%) and KU (69%) and the solar units would be jointly owned by LG&E (37%) and KU (63%), the battery storage unit would be owned by LG&E, and the proposed PPA transactions and DSM programs would be entered into or conducted jointly by LG&E and KU, consistent with LG&E and KU's shared dispatch, cost allocation, tariff or other frameworks.

The filing also notes planned retirement dates for certain existing coal-fired generation units, including Mill Creek 1 (300 MW) in 2024 and E.W. Brown 3 (412 MW) in 2028, and updates and advances the planned retirement dates for Mill Creek 2 (297 MW) to 2027 and Ghent 2 (486 MW) to 2028. LG&E and KU anticipate the recovery of associated retirement costs, including the remaining net book value, for these coal-fired generating units through the RAR or other rate mechanisms.

The KPSC accepted the CPCN filing as of January 6, 2023. On March 24, 2023, Kentucky Senate Bill 4 (SB 4) went into effect, which requires KPSC approval of fossil fuel-fired electric generating unit retirements in the state. On May 10, 2023, LG&E and KU filed an application with the KPSC seeking approval of the retirement of seven fossil fuel-fired generating units as required by the recently enacted SB 4. On May 16, 2023, the KPSC entered an Order consolidating the SB 4 filing proceeding into the CPCN case. The KPSC has indicated its intention to issue an order on all issues by November 6, 2023. PPL, LG&E and KU cannot predict the outcome of these matters.

Kentucky March 2023 Storm

On March 3, 2023, LG&E and KU experienced significant windstorm activity in their service territories, resulting in substantial damage to certain of LG&E's and KU's assets with total costs incurred through June 30, 2023 of $75 million ($33 million at

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LG&E and $42 million at KU). On March 17, 2023, LG&E and KU submitted a filing with the KPSC requesting regulatory asset treatment of the extraordinary operations and maintenance expenses portion of the costs incurred related to the windstorm. On April 5, 2023, the KPSC issued an order approving the request for accounting purposes, noting that approval for recovery would be determined in LG&E’s and KU’s next base rate cases. As of June 30, 2023, LG&E and KU recorded regulatory assets related to the storm of $8 million and $11 million.

Pennsylvania Activities (PPL and PPL Electric)

PAPUC investigation into billing issues

On January 31, 2023, the PAPUC initiated an investigation focused on billing issues related to estimated, irregular bills and customer service concerns following customer complaints, which for many customers were driven by increased prices for electricity supply. Certain bills issued during the time period of December 20, 2022 through January 25, 2023 were estimated due to a technical issue that prevented PPL Electric from providing actual collected meter data to customer facing and other internal systems. Customers also reported difficulties accessing PPL Electric's website and contacting the customer service call center. The PAPUC’s Bureau of Investigation & Enforcement has directed PPL Electric to respond to certain inquiries and document requests. PPL Electric has submitted its responses to the information request and is cooperating fully with the investigation. PPL Electric cannot predict the outcome of this matter.

Federal Matters

FERC Transmission Rate Filing (PPL, LG&E and KU)

In 2018, LG&E and KU applied to the FERC requesting elimination of certain on-going waivers and credits to a sub-set of transmission customers relating to the 1998 merger of LG&E's and KU's parent entities and the 2006 withdrawal of LG&E and KU from the Midcontinent Independent System Operator, Inc. (MISO), a regional transmission operator and energy market. The application sought termination of LG&E's and KU's commitment to provide certain Kentucky municipalities mitigation for certain horizontal market power concerns arising out of the 1998 LG&E and KU merger and 2006 MISO withdrawal. The amounts at issue are generally waivers or credits granted to a limited number of Kentucky municipalities for either certain LG&E and KU or MISO transmission charges incurred for transmission service received. In 2019, the FERC granted LG&E's and KU's request to remove the ongoing credits, conditioned upon the implementation by LG&E and KU of a transition mechanism for certain existing power supply arrangements, which was subsequently filed, modified, and approved by the FERC in 2020 and 2021. In 2020, LG&E and KU and other parties filed appeals with the D.C. Circuit Court of Appeals regarding the FERC's orders on the elimination of the mitigation and required transition mechanism. In August 2022, the D.C. Circuit Court of Appeals issued an order remanding the proceedings back to the FERC. On May 18, 2023, the FERC issued an order on remand reversing its 2019 decision and requiring LG&E and KU to refund credits previously withheld, including under such transition mechanism. On June 9, 2023, the FERC granted LG&E’s and KU’s motion for an extension of time to process refunds until November 2023. LG&E and KU filed a request for rehearing of the May 18, 2023 order, which was denied by operation of law on July 17, 2023. LG&E and KU filed petition for review of FERC's May 18, 2023 order with the D.C. Circuit Court of Appeals on July 28, 2023. In the second quarter of 2023, LG&E and KU recorded regulatory liabilities of $3 million and $8 million related to potential refunds resulting from the FERC’s May 18, 2023 order. LG&E and KU cannot predict the ultimate outcome of the proceedings or any other post decision process but do not expect the annual impact to have a material effect on their operations or financial condition. LG&E and KU currently receive recovery of certain waivers and credits provided primarily through base rates with increases associated with the FERC's May 18, 2023 order expected to be primarily subject to base rate recovery in future rate proceedings.

Recovery of Transmission Costs (PPL)

Until December 2022, RIE's transmission facilities were operated in combination with the transmission facilities of National Grid's New England affiliates, Massachusetts Electric Company (MECO) and New England Power (NEP), as a single integrated system with NEP designated as the combined operator. As of January 1, 2023, RIE operates its own transmission facilities. NE-ISO allocates RIE's costs among transmission customers in New England, in accordance with the ISO Open Access Transmission Tariff (ISO-NE OATT). According to the FERC orders, RIE is compensated for its actual monthly transmission costs, with its authorized maximum ROE of 11.74% on its transmission assets.

The ROE for transmission rates under the ISO-NE OATT is the subject of four complaints that are pending before the FERC. On October 16, 2014, the FERC issued an order on the first complaint, Opinion No. 531-A, resetting the base ROE applicable

39

to transmission assets under the ISO-NE OATT from 11.14% to 10.57% effective as of October 16, 2014 and establishing a maximum ROE of 11.74%. On April 14, 2017, this order was vacated and remanded by the D. C. Circuit Court of Appeals (Court of Appeals). After the remand, the FERC issued an order on October 16, 2018 applicable to all four pending cases where it proposed a new base ROE methodology that, with subsequent input and support from the New England Transmission Owners (NETO), yielded a base ROE of 10.41%. Subsequent to the FERC's October 2018 order in the New England Transmission Owners cases, the FERC further refined its ROE methodology in another proceeding and has applied that refined methodology to transmission owners’ ROEs in other jurisdictions, and the NETOs filed further information in the New England matters to distinguish their case. Those determinations in other jurisdictions are currently on appeal before the Court of Appeals. The proceeding and the final base rate ROE determination in the New England matters remain open, pending a final order from the FERC. PPL cannot predict the outcome of this matter, and an estimate of the impact cannot be determined.

Other

Purchase of Receivables Program

(PPL and PPL Electric)

In accordance with a PAPUC-approved purchase of accounts receivable program, PPL Electric purchases certain accounts receivable from alternative electricity suppliers at a discount, which reflects a provision for uncollectible accounts. The alternative electricity suppliers have no continuing involvement or interest in the purchased accounts receivable. Accounts receivable that are acquired are initially recorded at fair value on the date of acquisition. During the three and six months ended June 30, 2023, PPL Electric purchased $374 million and $732 million of accounts receivable from alternative suppliers. During the three and six months ended June 30, 2022, PPL Electric purchased $273 million and $622 million of receivables.

(PPL)

In 2021 and 2022, the RIPUC approved various components of a Purchase of Receivables Program (POR) in Rhode Island for effect on April 1, 2022. Municipal aggregators and non-regulated power producers (collectively, Competitive Suppliers) are eligible to participate in accordance with RIE's approved electric tariffs for municipal aggregation and non-regulated power producers. Under the POR program, RIE will purchase the Competitive Suppliers' accounts receivables, including existing receivables, at discounted rates, regardless of whether RIE has collected the owed monies from customers. The program is intended to make RIE whole through the implementation of a discount rate or Standard Complete Bill Percentage (SCBP) paid by Competitive Suppliers. RIE calculates the SCBP for each customer class and files the calculations with the RIPUC for review and approval by February 15 of each year. At an Open Meeting on March 29, 2023, the RIPUC approved the SCBP for effect beginning on April 1, 2023, for a one-year period.

7. Financing Activities

Credit Arrangements and Short-term Debt

(All Registrants)

The Registrants maintain credit facilities to enhance liquidity, provide credit support and provide a backstop to commercial paper programs. For reporting purposes, on a consolidated basis, the credit facilities and commercial paper programs of PPL Electric, LG&E and KU are attributable to PPL. The amounts listed in the borrowed column below are recorded as "Short-term debt" on the Balance Sheets except for borrowings under PPL Electric's term loan agreement due March 2024 and borrowings under LG&E's and KU's term loan agreements due July 2024, which are reflected in "Long-term debt" at December 31, 2022. The following credit facilities were in place at:

40

	June 30, 2023									December 31, 2022
	Expiration Date	Capacity		Borrowed		Letters of Credit and Commercial Paper Issued (d)		Unused Capacity		Borrowed		Letters of Credit and Commercial Paper Issued (d)
PPL
PPL Capital Funding (a)
Syndicated Credit Facility (b)	Dec. 2027	$	1,250	$	—	$	—	$	1,250	$	—	$	561
Bilateral Credit Facility	Mar. 2024	100		—		—		100		—		—
Bilateral Credit Facility (c)	Mar. 2024	100		—		58		42		—		58
Total PPL Capital Funding Credit Facilities		$	1,450	$	—	$	58	$	1,392	$	—	$	619
PPL Electric
Syndicated Credit Facility	Dec. 2027	$	650	$	—	$	131	$	519	$	—	$	146
Term Loan Credit Facility	Mar. 2024	—		—		—		—		250		—
Total PPL Electric Credit Facilities		$	650	$	—	$	131	$	519	$	250	$	146
LG&E
Syndicated Credit Facility	Dec. 2027	$	500	$	—	$	21	$	479	$	—	$	180
Term Loan Credit Facility	Jul. 2024	—		—		—		—		300		—
Total LG&E Credit Facilities		$	500	$	—	$	21	$	479	$	300	$	180
KU
Syndicated Credit Facility	Dec. 2027	$	400	$	—	$	92	$	308	$	—	$	101
Term Loan Credit Facility	Jul. 2024	—		—		—		—		300		—
Total KU Credit Facilities		$	400	$	—	$	92	$	308	$	300	$	101

(a)PPL Capital Funding's obligations are fully and unconditionally guaranteed by PPL.

(b)Includes a $250 million borrowing sublimit for RIE and a $1 billion sublimit for PPL Capital Funding.

(c)Includes a $45 million letter of credit on behalf of RIE.

(d)Commercial paper issued reflects the undiscounted face value of the issuance.

(PPL)

In March 2023, RIE was added as an authorized borrower under the PPL Capital Funding syndicated credit facility. At June 30, 2023, RIE’s borrowing limit under the facility was set at $250 million and PPL Capital Funding's borrowing limit was set at $1 billion. At June 30, 2023, neither PPL Capital Funding nor RIE had any borrowings outstanding under the facility.

(PPL and PPL Electric)

In March 2023, PPL Electric repaid its $250 million term loan expiring in March 2024 and terminated the facility.

(PPL and LG&E)

In March 2023, LG&E repaid its $300 million term loan expiring in July 2024 and terminated the facility.

(PPL and KU)

In March 2023, KU repaid its $300 million term loan expiring in July 2024 and terminated the facility.

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(All Registrants)

PPL Capital Funding, RIE, PPL Electric, LG&E and KU maintain commercial paper programs to provide an additional financing source to fund short-term liquidity needs. Commercial paper issuances, included in "Short-term debt" on the Balance Sheets, are supported by the respective Registrant's credit facilities. The following commercial paper programs were in place at:

	June 30, 2023							December 31, 2022
	Weighted - Average Interest Rate	Capacity		Commercial Paper Issuances (c)		Unused Capacity		Weighted - Average Interest Rate	Commercial Paper Issuances (c)
PPL Capital Funding (a) (b)		$	1,350	$	—	$	1,350	4.84%	$	561
RIE (b)		400		—		400			—
PPL Electric	5.31%	650		130		520		4.74%	145
LG&E	5.30%	500		21		479		4.94%	180
KU	5.34%	400		92		308		4.90%	101
Total		$	3,300	$	243	$	3,057		$	987

(a)PPL Capital Funding's obligations are fully and unconditionally guaranteed by PPL.

(b)Issuances under the PPL Capital Funding and RIE commercial paper programs are supported by the PPL Capital Funding syndicated credit facility, which has a total capacity of $1.25 billion and under which they are both borrowers. PPL Capital Funding’s Commercial paper program is also backed by a separate bilateral credit facility for $100 million. The PPL Capital Funding syndicated credit facility includes a borrowing sublimit for RIE, which is currently set at $250 million with the remaining $1 billion allocated to PPL Capital Funding. The sublimits of each borrower may be decreased or increased at the borrowers’ option up to a prescribed amount such that all borrowings under the syndicated credit facility cannot exceed the size of the credit facility of $1.25 billion.

(c)Commercial paper issued reflects the undiscounted face value of the issuance.

(PPL)

In June 2023, RIE established a commercial paper program with a capacity of $400 million. This program is supported by PPL Capital Funding's syndicated credit facility, under which RIE is a co-borrower.

(PPL Electric, LG&E, and KU)

See Note 11 for discussion of intercompany borrowings.

Long-term Debt

(PPL)

In February 2023, PPL Capital Funding issued $1.0 billion of 2.875% Exchangeable Senior Notes due 2028 (the Notes). PPL Capital Funding received proceeds of $980 million, net of underwriting fees, which were used to repay short-term debt and for general corporate purposes. The Notes are senior unsecured notes, fully guaranteed by PPL. The Notes are scheduled to mature on March 15, 2028, unless earlier exchanged, redeemed or repurchased.

The Notes are exchangeable at an initial exchange rate of 29.3432 shares of PPL's common stock per $1,000 principal amount (equivalent to an initial exchange price of approximately $34.08 per share of common stock). The initial exchange rate is subject to adjustment, as provided in the indenture for anti-dilutive events and fundamental change and redemption provisions. Upon exchange of the Notes, PPL Capital Funding will redeem the aggregate principal amount of the Notes in cash. PPL Capital Funding will pay cash, deliver shares of common stock or a combination of cash and shares of common stock, at PPL Capital Funding's election, in respect of the remainder, if any, of its exchange obligation in excess of the aggregate principal amount of the Notes being exchanged. Prior to December 15, 2027, the Notes will be exchangeable at the option of the noteholders only upon the satisfaction of specified conditions and during certain periods described in the indenture pursuant to which the Notes were issued. On or after December 15, 2027 until the maturity date, the Notes will be exchangeable at the option of the noteholders at any time regardless of these conditions or periods.

PPL Capital Funding may redeem all or any portion of the Notes, at its option, on or after March 20, 2026, if the last reported sale price of the common stock has been at least 130% of the exchange price then in effect for at least 20 trading days (whether or not consecutive), during any 30 consecutive trading day period, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus any accrued and unpaid interest. No sinking fund is provided for the Notes.

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Subject to certain conditions, holders of the Notes will have the right to require PPL Capital Funding to repurchase all or a portion of their Notes upon the occurrence of a fundamental change, as defined in the indenture pursuant to which the Notes were issued at a repurchase price of 100% of their principal amount plus any accrued and unpaid interest. In connection with certain corporate events or if PPL Capital Funding calls any Notes for redemption, PPL Capital Funding will, under certain circumstances, increase the exchange rate for noteholders who elect to exchange their Notes in connection with any such corporate event or exchange their Notes called for redemption.

(PPL and PPL Electric)

In March 2023, PPL Electric issued $600 million of 5.00% First Mortgage Bonds due 2033 and $750 million of 5.25% First Mortgage Bonds due 2053. PPL Electric received proceeds of $1.32 billion, net of discounts and underwriting fees, which were used to repay debt, including PPL Electric's $250 million term loan, and for other general corporate purposes.

In March 2023, PPL Electric redeemed all of the outstanding $650 million aggregate principal amount of its First Mortgage Bonds, Floating Rate Series due 2024.

In March 2023, PPL Electric redeemed all of the outstanding $250 million aggregate principal amount of its First Mortgage Bonds, Floating Rate Series due 2023.

(PPL and LG&E)

In March 2023, LG&E issued $400 million of 5.45% First Mortgage Bonds due 2033. LG&E received proceeds of $396 million, net of discounts and underwriting fees, which were used to repay LG&E's $300 million term loan and for other general corporate purposes.

(PPL and KU)

In March 2023, KU issued $400 million of 5.45% First Mortgage Bonds due 2033. KU received proceeds of $396 million, net of discounts and underwriting fees, which were used to repay KU's $300 million term loan and for general corporate purposes.

(PPL)

Equity Securities

In June 2023, RIE redeemed all 49,089 shares of its outstanding preferred stock at a redemption price equal to the par value of $50 per share, plus a premium of $5 per share, plus a prorated dividend of $0.1875 per share. The total payment was $3 million.

Dividends

In May 2023, PPL declared a quarterly cash dividend on its common stock, payable July 3, 2023, of 24.0 cents per share (equivalent to 96.0 cents per annum).

8. Acquisitions, Development and Divestitures

(PPL)

Acquisitions

Acquisition of Narragansett Electric

On May 25, 2022, PPL Rhode Island Holdings acquired 100% of the outstanding shares of common stock of Narragansett Electric from National Grid USA, a subsidiary of National Grid plc (the Acquisition) for approximately $3.8 billion. Following the closing of the Acquisition, Narragansett Electric provides services doing business under the name Rhode Island Energy (RIE).

In connection with the Acquisition, National Grid USA Service Company, Inc., National Grid USA and Narragansett Electric have entered into a transition services agreement (TSA), pursuant to which National Grid has agreed to provide certain transition services to Narragansett Electric to facilitate the transition of the operation of Narragansett Electric to PPL following

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the Acquisition, as agreed upon in the Narragansett share purchase agreement. The TSA is for an initial two-year term and is subject to extension as necessary to complete the successful transition. TSA costs of $63 million and $120 million were incurred during the three and six months ended June 30, 2023.

Commitments to the Rhode Island Division of Public Utilities and Carriers and the Attorney General of the State of Rhode Island

As a condition to the Acquisition, PPL made certain commitments to the Rhode Island Division of Public Utilities and Carriers and the Attorney General of the State of Rhode Island. See Note 9 in PPL's 2022 Form 10-K for a complete listing of those commitments. PPL incurred the following expenses related to some of the remaining commitments for the three and six months ended June 30, 2023:

•RIE will forgo potential recovery of any and all transition costs which includes (1) the installation of certain information technology systems; (2) modification and enhancements to physical facilities in Rhode Island; and (3) incurring costs related to severance payments, communications and branding changes, and other transition related costs. These costs, which are being expensed as incurred, were $70 million and $124 million for the three and six months ended June 30, 2023.

•RIE will not seek to recover in rates any markup charged by National Grid USA and/or its affiliates under the TSA which were $2 million and $4 million for the three and six months ended June 30, 2023.

Purchase Price Allocation

The operations of Narragansett Electric are subject to the accounting for certain types of regulation as prescribed by GAAP. The carrying value of Narragansett Electric’s assets and liabilities subject to rate-setting and cost recovery provisions provide revenues derived from costs, including a return on investment of net assets and liabilities included in rate base. Therefore, the fair values of these assets and liabilities equal their carrying values. Accordingly, neither the assets acquired nor liabilities assumed reflect any adjustments related to these amounts.

During the three months ended June 30, 2023, the allocation of the purchase price to the assets acquired and liabilities assumed recorded in PPL's Consolidated Balance Sheet was adjusted, resulting in a net decrease to goodwill of $1 million. The one-year measurement period and the allocation of the purchase price were completed during the quarter ended June 30, 2023. Total goodwill resulting from the acquisition as of June 30, 2023 was $1,585 million. PPL has elected to not reflect the effects of purchase accounting in the separate financial statements of RIE or PPL's Rhode Island Regulated segment. Accordingly, the Rhode Island Regulated segment includes $725 million of acquired legacy goodwill. The remaining excess purchase price of $860 million is included in PPL's Corporate and Other category for segment reporting purposes.

See Note 9 in the PPL's 2022 Form 10-K for additional information regarding the purchase price allocation of Narragansett Electric.

Divestitures

Sale of Safari Holdings

On September 29, 2022, PPL signed a definitive agreement to sell all of Safari Holdings membership interests to Aspen Power Services, LLC (Aspen Power). On November 1, 2022, PPL completed the sale of Safari Holdings (the Transaction).

The accounting for the closing of the Transaction was substantially completed in the fourth quarter of 2022. Final closing adjustments were completed in the first quarter of 2023, resulting in an increase to the loss on sale of $6 million ($4 million net of tax), which was recorded in "Other operation and maintenance" on the Statements of Income for the six months ended June 30, 2023.

In connection with the closing of the Transaction, PPL provided certain guarantees and other assurances. See Note 10 for additional information.

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9. Defined Benefits

(PPL)

Certain net periodic defined benefit costs are applied to accounts that are further distributed among capital, expense, regulatory assets and regulatory liabilities, including certain costs allocated to applicable subsidiaries for plans sponsored by PPL Services and LKE. Following are the net periodic defined benefit costs (credits) of the plans sponsored by PPL and its subsidiaries for the periods ended June 30:

	Pension Benefits
	Three Months				Six Months
	2023		2022		2023		2022
PPL
Service cost	$	8	$	13	$	17	$	25
Interest cost	48		30		94		62
Expected return on plan assets	(77)		(63)		(155)		(127)
Amortization of:
Prior service cost	1		2		3		4
Actuarial loss	1		17		1		29
Net periodic defined benefit costs (credits) before settlements	(19)		(1)		(40)		(7)
Settlements (a)	—		12		—		12
Net periodic defined benefit costs (credits)	$	(19)	$	11	$	(40)	$	5

(a)Due to the amount of lump sum payment distributions from the LKE qualified pension plan, settlement charges were incurred during the three and six months ended, June 30, 2022. In accordance with existing regulatory accounting treatment, LG&E and KU have primarily maintained the settlement charge in regulatory assets to be amortized over 15 years.

	Other Postretirement Benefits
	Three Months				Six Months
	2023		2022		2023		2022
PPL
Service cost	$	1	$	2	$	3	$	3
Interest cost	8		4		15		8
Expected return on plan assets	(7)		(6)		(15)		(12)
Amortization of:
Prior service cost	1		1		1		1
Actuarial loss	(2)		(2)		(3)		(2)
Net periodic defined benefit costs (credits)	$	1	$	(1)	$	1	$	(2)

(All Registrants)

The non-service cost components of net periodic defined benefit costs (credits) (interest cost, expected return on plan assets, amortization of prior service cost and amortization of actuarial gain and loss) are presented in "Other Income (Expense) - net" on the Statements of Income. See Note 12 for additional information.

10. Commitments and Contingencies

Long-term Contracts for Renewable Energy (PPL)

In July 2022, Rhode Island passed an amendment to the Affordable Clean Energy Security Act (ACES) that required RIE to issue a request for proposals (RFP) for at least 600 MW but no greater than 1,000 MW of newly developed offshore wind capacity no later than October 15, 2022. The RFP was issued on October 14, 2022, following a public comment period, and subsequently revised on November 7, 2022. On March 17, 2023, RIE announced that it will evaluate a joint proposal from Orsted and Eversource to develop 884 MW of offshore wind, which was the sole response to RIE’s RFP. On July 18, 2023, RIE announced it would not be proceeding with conditional selection of the bid because it did not meet the terms of the ACES statute. RIE intends to file supporting documentation with the RIPUC in approximately 60 days.

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Legal Matters

(All Registrants)

PPL and its subsidiaries are involved in legal proceedings, claims and litigation in the ordinary course of business. PPL and its subsidiaries cannot predict the outcome of such matters, or whether such matters may result in material liabilities, unless otherwise noted.

Talen Litigation

Background (PPL)

In September 2013, one of PPL's former subsidiaries, PPL Montana entered into an agreement to sell its hydroelectric generating facilities. In June 2014, PPL and PPL Energy Supply, the parent company of PPL Montana, entered into various definitive agreements with affiliates of Riverstone to spin off PPL Energy Supply and ultimately combine it with Riverstone's competitive power generation businesses to form a stand-alone company named Talen Energy. In November 2014, after executing the spinoff agreements but prior to the closing of the spinoff transaction, PPL Montana closed the sale of its hydroelectric generating facilities. Subsequently, on June 1, 2015, the spinoff of PPL Energy Supply was completed. Following the spinoff transaction, PPL had no continuing ownership interest in or control of PPL Energy Supply. In connection with the spinoff transaction, PPL Montana became Talen Montana, LLC (Talen Montana), a subsidiary of Talen Energy and Talen Energy Marketing, LLC also became a subsidiary of Talen Energy. Talen Energy has owned and operated both Talen Montana and Talen Energy Marketing, LLC since the spinoff. At the time of the spinoff, affiliates of Riverstone acquired a 35% ownership interest in Talen Energy. Riverstone subsequently acquired the remaining interests in Talen Energy in a take private transaction in December 2016.

In October 2018, Talen Montana Retirement Plan and Talen Energy Marketing, LLC filed a putative class action complaint on behalf of current and contingent creditors of Talen Montana (the Montana Action) who allegedly suffered harm or allegedly will suffer reasonably foreseeable harm as a result of, among other things, the November 2014 allegedly fraudulent transfer of proceeds from the sale of then-PPL Montana's hydroelectric generating facilities.

In November 2018, PPL, certain PPL affiliates, and certain current and former officers and directors (PPL plaintiffs) filed a complaint in the Court of Chancery of the State of Delaware seeking various forms of relief against Riverstone, Talen Energy and certain of their affiliates (the Delaware Action), in response to the Montana Action and as part of the defense strategy.

Talen Energy Supply, LLC et al. and Talen Montana LLC v. PPL Corp., PPL Capital Funding, Inc., PPL Electric Utilities Corp., and PPL Energy Funding (PPL and PPL Electric)

On May 9, 2022, Talen Energy Supply, LLC and 71 affiliates, including Talen Montana, LLC, filed petitions for protection under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas (Texas Bankruptcy Court).

On May 10, 2022, Talen Montana, LLC, as debtor-in-possession, filed a complaint initiating an adversary proceeding (Adversary Proceeding) in the Texas Bankruptcy Court against PPL Corporation, PPL Capital Funding, Inc., PPL Electric Utilities Corporation, and PPL Energy Funding Corporation. Similar to the litigation in Montana, the Adversary Proceeding seeks the recovery of an allegedly fraudulent transfer relating to PPL Montana’s November 2014 sale of hydroelectric assets to Northwestern and subsequent distribution of certain proceeds of that sale of approximately $900 million, reiterating claims that the parties had already been litigating in Montana and Delaware.

Both the Montana Action and the Delaware Action have now been transferred to and consolidated in the Texas Bankruptcy Court. PPL has filed its Answer and asserted a Counterclaim against the Talen and Riverstone entities, similar to the claims previously asserted in the Delaware Action, and has filed a motion for partial summary judgment that was heard on October 31, 2022. Mediation occurred on February 22, 2023 before Judge David R. Jones of the Texas Bankruptcy Court. The parties did not settle the case, and mediation was discontinued. On June 14, 2023, the Texas Bankruptcy Court entered an Order denying the defendants’ motion for partial summary judgment. The defendants anticipate trial will occur in the first quarter of 2024. Riverstone has filed a motion for summary judgement, which is set to be heard on August 15, 2023.

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PPL believes that the 2014 distribution of proceeds was made in compliance with all applicable laws and that PPL Montana was solvent at all relevant times. Additionally, the agreements entered into in connection with the spinoff, which PPL and affiliates of Talen Energy and Riverstone negotiated and executed prior to the 2014 distribution, directly address the treatment of the proceeds from the sale of PPL Montana's hydroelectric generating facilities; in those agreements, Talen Energy and Riverstone definitively agreed that PPL was entitled to retain the proceeds.

PPL believes that it has meritorious defenses to the claims made in the Adversary Proceeding and intends to vigorously defend against this action. At this time, PPL cannot predict the outcome of the Adversary Proceeding or estimate the range of possible losses, if any, that PPL might incur as a result of the claims, although they could be material.

Narragansett Electric Litigation (PPL)

Energy Efficiency Programs Investigation

Narragansett Electric, while under the ownership of National Grid, performed an internal investigation into conduct associated with its energy efficiency programs. On June 27, 2022, the RIPUC opened a new docket (RIPUC Docket No. 22-05-EE) to investigate RIE’s actions and the actions of its National Grid employees during the time RIE was a National Grid USA affiliate being provided services by National Grid USA Service Company, Inc. relating to the manipulation of the reporting of invoices affecting the calculation of past energy efficiency shareholder incentives and the resulting impact on customers. The Rhode Island Attorney General and National Grid USA intervened in the docket.

On January 19, 2023, the Rhode Island Division of Public Utilities and Carriers (the Division) filed a motion to dismiss RIPUC Docket No. 22-05-EE without prejudice. As grounds for its motion, the Division stated that sufficient evidence exists in the docket to warrant an independent summary investigation by the Division, to include an audit of RIE, pursuant to Rhode Island General Laws Section 39-4-13. If the Division finds sufficient grounds, the Division may proceed to a formal hearing regarding the matters under investigation pursuant to Rhode Island General Laws Sections 39-4-14 and 39-4-15. Upon the conclusion of its investigation, the Division will provide the RIPUC with a report outlining the Division’s findings and final decision. On January 30, 2023, the Rhode Island Attorney General filed an objection to the Division’s motion to dismiss; RIE and National Grid each filed responses with the RIPUC requesting that any additional action taken by the RIPUC or the Division be considered after National Grid completes its internal investigation report, which National Grid filed with the RIPUC on March 10, 2023. On February 24, 2023, the Division initiated the independent summary investigation that it had referenced in its motion to dismiss RIPUC Docket No. 22-05-EE. The RIPUC held a hearing on March 28, 2023 to hear oral arguments regarding the Division’s motion to dismiss and subsequently denied the motion. RIPUC Docket No. 22-05-EE remains open and, in parallel, the Division’s summary investigation remains ongoing. At this time, it is not possible to predict the final outcome or determine the total amount of any additional liabilities that may be incurred by RIE in connection with RIPUC Docket No. 22-05-EE or the Division’s summary investigation. RIE does not expect this matter will have a material adverse effect on its results of operations, financial position or cash flows.

E.W. Brown Environmental Assessment (PPL and KU)

KU is undertaking extensive remedial measures at the E.W. Brown plant including closure of the former ash pond, implementation of a groundwater remedial action plan and performance of a corrective action plan including aquatic study of adjacent surface waters and risk assessment. The aquatic study and risk assessment are being undertaken pursuant to a 2017 agreed Order with the Kentucky Energy and Environment Cabinet (KEEC). KU conducted sampling of Herrington Lake in 2017 and 2018. In June 2019, KU submitted to the KEEC the required aquatic study and risk assessment, conducted by an independent third-party consultant, finding that discharges from the E.W. Brown plant have not had any significant impact on Herrington Lake and that the water in the lake is safe for recreational use and meets safe drinking water standards. On May 31, 2021, the KEEC approved the report and released a response to public comments. On August 6, 2021, KU submitted a Supplemental Remedial Alternatives Analysis report to the KEEC that outlines proposed additional fish, water, and sediment testing. On February 18, 2022, the KEEC provided approval to KU to proceed with the proposed sampling, which commenced in the spring of 2022. On November 17, 2022, KU submitted a Supplemental Performance Monitoring Report to the KEEC finding that there are no significant unaddressed risks to human health or the environment at the plant. KU revised the Supplemental Performance Monitoring Report on June 8, 2023 in response to KEEC comments from April 24, 2023.

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Water/Waste (PPL, LG&E and KU)

ELGs

In 2015, the EPA finalized ELGs for wastewater discharge permits for new and existing steam electricity generating facilities. These guidelines require deployment of additional control technologies providing physical, chemical and biological treatment and mandate operational changes including "zero discharge" requirements for certain wastewaters. The implementation date for individual generating stations was to be determined by the states on a case-by-case basis according to criteria provided by the EPA. Legal challenges to the final rule were consolidated before the U.S. Court of Appeals for the Fifth Circuit. In April 2017, the EPA announced that it would grant petitions for reconsideration of the rule. In September 2017, the EPA issued a rule to postpone the compliance date for certain requirements. In October 2020, the EPA published final revisions to its best available technology standards for certain wastewaters and potential extensions to compliance dates (the Reconsideration Rule). In March 2023, the EPA released a proposed rule that would modify the 2020 ELG revisions. The proposed rule would increase the stringency of previous control technology and zero discharge requirements, revise certain exemptions for generating units planned for retirement, and require case-by-case limitations for legacy wastewaters based on the best professional judgment of the state regulators. Compliance with the Reconsideration Rule is required during the pendency of the rulemaking process. The proposed rule is currently under evaluation, but could potentially result in significant operational changes and additional controls for LG&E and KU plants. The ELGs are expected to be implemented by the states or applicable permitting authorities in the course of their normal permitting activities. LG&E and KU are currently implementing responsive compliance strategies and schedules. Certain aspects of these compliance plans and estimates relate to developments in state water quality standards, which are separate from the ELG rule or its implementation. Certain costs are included in the Registrants' capital plans and expected to be recovered from customers through rate recovery mechanisms, but additional costs and recovery will depend on further regulatory developments at the state level.

CCRs

In 2015, the EPA issued a final rule governing management of CCRs which include fly ash, bottom ash and sulfur dioxide scrubber wastes. The CCR Rule imposes extensive new requirements for certain CCR impoundments and landfills, including public notifications, location restrictions, design and operating standards, groundwater monitoring and corrective action requirements, and closure and post-closure care requirements, and specifies restrictions relating to the beneficial use of CCRs. In July 2018, the EPA issued a final rule extending the deadline for closure of certain impoundments and adopting other substantive changes. In August 2018, the D.C. Circuit Court of Appeals vacated and remanded portions of the CCR Rule. In December 2019, the EPA addressed certain deficiencies identified by the court and proposed amendments to change the closure deadline. In August 2020, the EPA published a final rule extending the deadline to initiate closure to April 11, 2021, while providing for certain extensions. The EPA is conducting ongoing rulemaking actions regarding various other amendments to the rule including potentially making the rule applicable to certain inactive impoundments and landfills not currently subject to the rule. Certain ongoing legal challenges to various provisions of the CCR Rule have been held in abeyance pending review by the EPA pursuant to the President's executive order. PPL, LG&E, and KU are monitoring the EPA’s ongoing efforts to refine and implement the regulatory program under the CCR Rule. In January 2022, the EPA issued several proposed regulatory determinations, facility notifications, and public announcements which indicate increased scrutiny by the EPA to determine the adequacy of measures taken by facility owners and operators to achieve closure of CCR surface impoundments and landfills. In particular, the agency indicated that it will focus on certain practices which it views as posing a threat of continuing groundwater contamination. On May 18, 2023, the EPA published a proposed rule establishing regulatory requirements for inactive surface impoundments at inactive electricity generation facilities. The EPA proposes to establish groundwater monitoring, corrective action, closure, and post-closure care requirements for all CCR management units at regulated CCR facilities regardless of how or when the CCR was placed. The proposed rule, if finalized, would require PPL to complete applicability determinations, implement site security measures, initiate weekly inspections and monthly monitoring of the impoundment, create a website, and complete hazard assessments and reports for its legacy impoundments within three months of the proposed rule’s effective date. Additionally, the proposed rule could potentially subject management units that have previously completed remedial action and closure and certain beneficial use projects to additional federal regulatory requirements. Future guidance, regulatory determinations, rulemakings, and other developments could potentially require revisions to current LG&E and KU compliance plans including additional monitoring and remediation at surface impoundments and landfills, the cost of which could be substantial. PPL, LG&E and KU are unable to predict the outcome of the ongoing litigation, rulemaking, and regulatory determinations or potential impacts on current LG&E and KU compliance plans. PPL, LG&E and KU are currently finalizing closure plans and schedules in accordance with existing regulations.

In January 2017, Kentucky issued a new state rule relating to CCR management, effective May 2017, aimed at reflecting the requirements of the federal CCR rule. As a result of a subsequent legal challenge, in January 2018, the Franklin County,

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Kentucky Circuit Court issued an opinion invalidating certain procedural elements of the rule. LG&E and KU presently operate their facilities under continuing permits authorized under the former program and do not currently anticipate material impacts as a result of the judicial ruling. Associated costs are expected to be subject to rate recovery.

LG&E and KU received KPSC approval for a compliance plan providing for the closure of impoundments at the Mill Creek, Trimble County, E.W. Brown, and Ghent stations, and construction of process water management facilities at those plants. In addition to the foregoing measures required for compliance with the federal CCR rule, KU also received KPSC approval for its plans to close impoundments at the retired Green River, Pineville and Tyrone plants to comply with applicable state law. LG&E and KU have completed planned closure measures at most of the subject impoundments and have commenced post closure groundwater monitoring as required at those facilities. LG&E and KU generally expect to complete all impoundment closures within five years of commencement, although a longer period may be required to complete closure of some facilities. Associated costs are expected to be subject to rate recovery.

In connection with the final CCR rule, LG&E and KU recorded adjustments to existing AROs beginning in 2015 and continue to record adjustments as required. See Note 15 for additional information. Further changes to AROs, current capital plans or operating costs may be required as estimates are refined based on closure developments, groundwater monitoring results, and regulatory or legal proceedings. Costs relating to this rule are expected to be subject to rate recovery.

Superfund and Other Remediation

(All Registrants)

The Registrants are potentially responsible for investigating and remediating contamination under the federal Superfund program and similar state programs. Actions are under way at certain sites including former coal gas manufacturing plants in Pennsylvania, Rhode Island and Kentucky previously owned or operated by, or currently owned by predecessors or affiliates of, PPL subsidiaries.

Depending on the outcome of investigations at identified sites where investigations have not begun or been completed, or developments at sites for which information is incomplete, additional costs of remediation could be incurred. PPL, PPL Electric, LG&E and KU lack sufficient information about such additional sites to estimate any potential liability or range of reasonably possible losses, if any, related to these sites. Such costs, however, are not currently expected to be significant.

The EPA is evaluating the risks associated with polycyclic aromatic hydrocarbons and naphthalene, chemical by-products of coal gas manufacturing. As a result, individual states may establish stricter standards for water quality and soil cleanup, that could require several PPL subsidiaries to take more extensive assessment and remedial actions at former coal gas manufacturing plants. The Registrants cannot reasonably estimate a range of possible losses, if any, related to these matters.

(PPL and PPL Electric)

PPL Electric is a potentially responsible party for a share of clean-up costs at certain sites including the Columbia Gas Plant site and the Brodhead site. Cleanup actions have been or are being undertaken at these sites as requested by governmental agencies, the costs of which have not been and are not expected to be significant to PPL Electric.

As of June 30, 2023 and December 31, 2022, PPL Electric had a recorded liability of $11 million, representing its best estimate of the probable loss incurred to remediate the sites identified above.

(PPL)

RIE is a potentially responsible party for a share of clean-up costs at certain sites including former manufactured gas plant (MGP) facilities formerly owned by the Blackstone Valley Gas and Electric Company and the Rhode Island gas distribution assets of the New England Gas division of Southern Union Company and electric operations at certain RIE facilities. RIE is currently investigating and remediating, as necessary, those MGP sites and certain other properties under agreements with governmental agencies, the costs of which have not been and are not expected to be significant to PPL.

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As of June 30, 2023 and December 31, 2022, PPL had a recorded liability of $100 million, representing its best estimate of the remaining costs of RIE's environmental remediation activities. These undiscounted costs are expected to be incurred over approximately 30 years and generally to be subject to rate recovery. However, remediation costs for each site may be materially higher than estimated, depending on changing technologies and regulatory standards, selected end uses for each site, and actual environmental conditions encountered. RIE has recovered amounts from certain insurers and potentially responsible parties, and, where appropriate, may seek additional recovery from other insurers and from other potentially responsible parties, but it is uncertain whether, and to what extent, such efforts will be successful.

The RIPUC has approved two settlement agreements that provide for rate recovery of qualified remediation costs of certain contaminated sites located in Rhode Island and Massachusetts. Rate-recoverable contributions for electric operations of approximately $3 million are added annually to RIE's Environmental Response Fund, established with RIPUC approval in March 2000 to address such costs, along with interest and any recoveries from insurance carriers and other third parties. In addition, RIE recovers approximately $1 million annually for gas operations under a distribution adjustment charge in which the qualified remediation costs are amortized over 10 years. See Note 6 for additional information on RIE's recorded environmental regulatory assets and liabilities.

Regulatory Issues

(All Registrants)

See Note 6 for information on regulatory matters related to utility rate regulation.

Electricity - Reliability Standards

The NERC is responsible for establishing and enforcing mandatory reliability standards (Reliability Standards) regarding the bulk electric system in North America. The FERC oversees this process and independently enforces the Reliability Standards.

The Reliability Standards have the force and effect of law and apply to certain users of the bulk electric system, including electric utility companies, generators and marketers. Under the Federal Power Act, the FERC may assess civil penalties for certain violations.

PPL Electric, LG&E, KU and RIE monitor their compliance with the Reliability Standards and self-report or self-log potential violations of applicable reliability requirements whenever identified, and submit accompanying mitigation plans, as required. The resolution of a small number of potential violations is pending. Penalties incurred to date have not been significant. Any Regional Reliability Entity determination concerning the resolution of violations of the Reliability Standards remains subject to the approval of the NERC and the FERC.

In the course of implementing their programs to ensure compliance with the Reliability Standards by those PPL affiliates subject to the standards, certain other instances of potential non-compliance may be identified from time to time. The Registrants cannot predict the outcome of these matters, and an estimate or range of possible losses cannot be determined.

Gas - Security Directives (PPL and LG&E)

In May and July of 2021, the Department of Homeland Security’s (DHS) Transportation Security Administration (TSA) released two security directives applicable to certain notified owners and operators of natural gas pipeline facilities (including local distribution companies) that the TSA has determined to be critical. The TSA has determined that LG&E is within the scope of the directive, while RIE has not been notified of this distinction. The first security directive required notified owners/operators to implement cybersecurity incident reporting to the DHS, designate a cybersecurity coordinator, and perform a gap assessment of current entity cybersecurity practices against certain voluntary TSA security guidelines and report relevant results and proposed mitigation to applicable DHS agencies. The second security directive, revised in July of 2023, requires refinement of the cybersecurity implementation plan and the cybersecurity assessment plan. LG&E does not believe the security directives have had or will have a significant impact on LG&E’s operations or financial condition.

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Other

Guarantees and Other Assurances

(All Registrants)

In the normal course of business, the Registrants enter into agreements that provide financial performance assurance to third parties on behalf of certain subsidiaries. Examples of such agreements include: guarantees, stand-by letters of credit issued by financial institutions and surety bonds issued by insurance companies. These agreements are entered into primarily to support or enhance the creditworthiness attributed to a subsidiary on a stand-alone basis or to facilitate the commercial activities in which these subsidiaries engage.

(PPL)

PPL fully and unconditionally guarantees all of the debt securities and loan obligations of PPL Capital Funding.

(All Registrants)

The table below details guarantees provided as of June 30, 2023. "Exposure" represents the estimated maximum potential amount of future payments that could be required to be made under the guarantee. The Registrants believe the probability of expected payment/performance under each of these guarantees is remote, except for the guarantees and indemnifications related to the sale of Safari Holdings, which PPL believes are reasonably possible but not probable of occurring. For reporting purposes, on a consolidated basis, the guarantees of PPL include the guarantees of its subsidiary Registrants.

	Exposure at June 30, 2023			Expiration Date
PPL
Indemnifications related to certain tax liabilities related to the sale of the U.K. utility business	£	50	(a)	2028
PPL guarantee of Safari payment obligations under certain sale/leaseback financing transactions related to the sale of Safari Holdings	$	137	(b)	2028
PPL guarantee of Safari payment obligations under certain PPAs related to the sale of Safari Holdings	55		(c)
Indemnifications for losses suffered related to items not covered by Aspen Power's representation and warranty insurance associated with the sale of Safari Holdings	140		(d)	2028
LG&E and KU
LG&E and KU obligation of shortfall related to OVEC			(e)

(a)PPL WPD Limited entered into a Tax Deed dated June 9, 2021, in which it agreed to a tax indemnity regarding certain potential tax liabilities of the entities sold with respect to periods prior to the completion of the sale, subject to customary exclusions and limitations. Because National Grid Holdings One plc, the buyer, agreed to purchase indemnity insurance, the amount of the cap on the indemnity for these liabilities is £1, except with respect to certain surrenders of tax losses, for which the amount of the cap on the indemnity is £50 million.

(b)PPL guaranteed the payment obligations of Safari under certain sale/leaseback financing transactions executed by Safari. These guarantees will remain in place until Safari exercises its option to buy-out the projects under the sale/leaseback financings by the year 2028. Safari will indemnify PPL for any payments made by PPL or claims against PPL under the sale/leaseback transaction guarantees up to $25 million.

(c)PPL guaranteed the payment obligations of Safari under certain PPAs executed by Safari. Aspen Power is expected to replace these guarantees and retain liability for any payments made by PPL or claims against PPL under any guarantee that is not replaced.

(d)Aspen Power has obtained representation and warranty insurance, therefore, PPL generally has no liability for its representations and warranties under the agreement except for losses suffered related to items not covered. Pursuant to the agreement, expiration of these indemnifications range from 18 months to 6 years from the date of the closing of the transaction, and PPL’s aggregate liability for these claims will not exceed $140 million, pursuant to the agreement, subject to certain adjustments plus the support obligations provided by PPL under sale-leaseback financings and PPAs that will be replaced by Aspen Power.

(e)Pursuant to the OVEC power purchase contract, LG&E and KU are obligated to pay for their share of OVEC's excess debt service, post-retirement, and decommissioning costs, as well as any shortfall from amounts included within a demand charge designed and expected to cover these costs over the term of the contract. PPL's proportionate share of OVEC's outstanding debt was $89 million at June 30, 2023, consisting of LG&E's share of $62 million and KU's share of $27 million. The maximum exposure and the expiration date of these potential obligations are not presently determinable. See "Energy Purchase Commitments" in Note 14 in PPL's, LG&E's and KU's 2022 Form 10-K for additional information on the OVEC power purchase contract.

The Registrants provide other miscellaneous guarantees through contracts entered into in the normal course of business. These guarantees are primarily in the form of indemnification or warranties related to services or equipment and vary in duration. The amounts of these guarantees often are not explicitly stated, and the overall maximum amount of the obligation under such guarantees cannot be reasonably estimated. Historically, no significant payments have been made with respect to these types of guarantees and the probability of payment/performance under these guarantees is generally remote.

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PPL, on behalf of itself and certain of its subsidiaries, maintains insurance that covers liability assumed under contract for bodily injury and property damage. The coverage provides maximum aggregate coverage of $225 million. This insurance may be applicable to obligations under certain of these contractual arrangements.

11. Related Party Transactions

Support Costs (PPL Electric, LG&E and KU)

PPL Services and LKS provide the Registrants, their respective subsidiaries and each other with administrative, management and support services. For all services companies, the costs of directly assignable and attributable services are charged to the respective recipients as direct support costs. General costs that cannot be directly attributed to a specific entity are allocated and charged to the respective recipients as indirect support costs. PPL Services and LKS use a three-factor methodology that includes the applicable recipients' invested capital, operation and maintenance expenses and number of employees to allocate indirect costs. PPL Services and LKS charged the following amounts for the periods ended June 30, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods that are believed to be reasonable.

	Three Months				Six Months
	2023		2022		2023		2022
PPL Electric from PPL Services	$	55	$	60	$	114	$	121
LG&E from LKS	28		41		60		80
LG&E from PPL Services	12		—		20		—
KU from LKS	34		42		75		86
KU from PPL Services	13		—		23		—

In addition to the charges for services noted above, LKS makes payments on behalf of LG&E and KU for fuel purchases and other costs for products or services provided by third-parties. LG&E and KU also provide services to each other and to LKS. Billings between LG&E and KU relate to labor and overheads associated with union and hourly employees performing work for the other company, charges related to jointly-owned generating units and other miscellaneous charges. Tax settlements between PPL and LG&E and KU are reimbursed through LKS.

Intercompany Borrowings

(PPL Electric)

CEP Reserves maintains a $500 million revolving line of credit with a PPL Electric subsidiary. At June 30, 2023 and December 31, 2022, CEP Reserves had no borrowings outstanding. The interest rates on borrowings are equal to an adjusted one-month SOFR plus a spread. Interest income is reflected in "Interest Income from Affiliate" on the applicable Income Statements.

(LG&E and KU)

LG&E participates in an intercompany money pool agreement whereby LKE and/or KU make available to LG&E funds up to the difference between LG&E's FERC borrowing limit and LG&E's commercial paper issued at an interest rate based on the lower of a market index of commercial paper issues and two additional rate options based on SOFR. At June 30, 2023, LG&E's money pool unused capacity was $729 million. At June 30, 2023, LG&E borrowings outstanding from KU and/or LKE were not significant. At December 31, 2022, LG&E had no borrowings outstanding from KU and/or LKE.

KU participates in an intercompany money pool agreement whereby LKE and/or LG&E make available to KU funds up to the difference between KU's FERC borrowing limit and KU's commercial paper issued at an interest rate based on the lower of a market index of commercial paper issues and two additional rate options based on SOFR. At June 30, 2023, KU's money pool unused capacity was $550 million. At June 30, 2023, KU had borrowings outstanding from LG&E and/or LKE of $8 million. These balances are reflected in "Notes payable to affiliates" on the KU Balance Sheets. At December 31, 2022, KU had no borrowings outstanding from LG&E and/or LKE.

VEBA Funds Receivable (PPL Electric)

In 2018, PPL received a favorable private letter ruling from the IRS permitting a transfer of excess funds from the PPL Bargaining Unit Retiree Health Plan VEBA to a new subaccount within the VEBA, to be used to pay medical claims of active

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bargaining unit employees. Based on PPL Electric's participation in PPL’s Other Postretirement Benefit plan, PPL Electric was allocated a portion of the excess funds from PPL Services. These funds have been recorded as an intercompany receivable on PPL Electric's Balance Sheets. The receivable balance decreases as PPL Electric pays incurred medical claims and is reimbursed by PPL Services. There was no intercompany receivable balance associated with these funds as of June 30, 2023, which would be reflected in "Accounts receivable from affiliates" on the PPL Electric Balance Sheets. The intercompany receivable balance associated with these funds was immaterial as of December 31, 2022.

12. Other Income (Expense) - net

(PPL)

The details of "Other Income (Expense) - net" for the periods ended June 30, were:

	Three Months				Six Months
	2023		2022		2023		2022
Defined benefit plans - non-service credits (Note 9)	$	(1)	$	9	$	16	$	20
Interest income (expense)	8		(1)		17		(2)
AFUDC - equity component	8		6		14		10
Charitable contributions	—		(1)		(2)		(2)
Miscellaneous (a)	(10)		13		(10)		—
Other Income (Expense) - net	$	5	$	26	$	35	$	26

(a)Includes legal expenses incurred and insurance reimbursements received related to litigation with a former affiliate, Talen Montana. See Note 10 for additional information.

(PPL Electric)

The details of "Other Income (Expense) - net" for the periods ended June 30, were:

	Three Months				Six Months
	2023		2022		2023		2022
Defined benefit plans - non-service credits (Note 9)	$	5	$	4	$	10	$	8
Interest income (expense)	1		—		5		1
AFUDC - equity component	4		4		8		8
Charitable contributions	—		—		(2)		(2)
Miscellaneous	(1)		(1)		—		(2)
Other Income (Expense) - net	$	9	$	7	$	21	$	13

13. Fair Value Measurements

(All Registrants)

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). A market approach (generally, data from market transactions), an income approach (generally, present value techniques and option pricing models) and/or a cost approach (generally, replacement cost) are used to measure the fair value of an asset or liability, as appropriate. These valuation approaches incorporate inputs such as observable, independent market data and/or unobservable data that management believes are predicated on the assumptions market participants would use to price an asset or liability. These inputs may incorporate, as applicable, certain risks such as nonperformance risk, which includes credit risk. The fair value of a group of financial assets and liabilities is measured on a net basis. See Note 1 in each Registrant's 2022 Form 10-K for information on the levels in the fair value hierarchy.

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Recurring Fair Value Measurements

The assets and liabilities measured at fair value were:

	June 30, 2023								December 31, 2022
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
PPL
Assets
Cash and cash equivalents	$	326	$	326	$	—	$	—	$	356	$	356	$	—	$	—
Restricted cash and cash equivalents (a)	1		1		—		—		1		1		—		—
Total Cash, Cash Equivalents and Restricted Cash (b)	327		327		—		—		357		357		—		—
Special use funds (a):
Money market fund	1		1		—		—		1		1		—		—
Commingled debt fund measured at NAV (c)	11		—		—		—		13		—		—		—
Commingled equity fund measured at NAV (c)	10		—		—		—		11		—		—		—
Total special use funds	22		1		—		—		25		1		—		—
Price risk management assets (d):
Gas contracts	1		—		1		—		25		—		25		—
Total assets	$	350	$	328	$	1	$	—	$	407	$	358	$	25	$	—
Liabilities
Price risk management liabilities (d):
Interest rate swaps	$	7	$	—	$	7	$	—	$	7	$	—	$	7	$	—
Gas contracts	(23)		—		(23)		—		66		—		10		56
Total price risk management liabilities	$	(16)	$	—	$	(16)	$	—	$	73	$	—	$	17	$	56
PPL Electric
Assets
Cash and cash equivalents	$	26	$	26	$	—	$	—	$	25	$	25	$	—	$	—
Total assets	$	26	$	26	$	—	$	—	$	25	$	25	$	—	$	—
LG&E
Assets
Cash and cash equivalents	$	7	$	7	$	—	$	—	$	93	$	93	$	—	$	—
Total assets	$	7	$	7	$	—	$	—	$	93	$	93	$	—	$	—
Liabilities
Price risk management liabilities:
Interest rate swaps	$	7	$	—	$	7	$	—	$	7	$	—	$	7	$	—
Total price risk management liabilities	$	7	$	—	$	7	$	—	$	7	$	—	$	7	$	—
KU
Assets
Cash and cash equivalents	$	9	$	9	$	—	$	—	$	21	$	21	$	—	$	—
Total assets	$	9	$	9	$	—	$	—	$	21	$	21	$	—	$	—

(a)Included in "Other current assets" on the Balance Sheets.

(b)Total Cash, Cash Equivalents and Restricted Cash provides a reconciliation of these items reported within the Balance Sheets to the sum shown on the Statements of Cash Flows.

(c)In accordance with accounting guidance, certain investments that are measured at fair value using net asset value per share (NAV), or its equivalent, have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Balance Sheets.

(d)Current portion is included in "Other current asset" and "Other current liabilities" and noncurrent portion is included in "Other noncurrent assets" and "Other deferred credits and noncurrent liabilities" on the Balance Sheets.

A reconciliation of net assets and liabilities classified as Level 3 for the six months ended June 30 is as follows:

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	Gas Contracts
2023
Balance at beginning of period	$	56
Settlements	(56)
Balance at end of period	$	—

Special Use Funds (PPL)

The special use funds are investments restricted for paying active union employee medical costs. In 2018, PPL received a favorable private letter ruling from the IRS permitting a transfer of excess funds from the PPL Bargaining Unit Retiree Health Plan VEBA to a new subaccount within the VEBA to be used to pay medical claims of active bargaining unit employees. The funds are invested primarily in commingled debt and equity funds measured at NAV and are classified as investments in equity securities. Changes in the fair value of the funds are recorded to the Statements of Income.

Price Risk Management Assets/Liabilities

Interest Rate Swaps (PPL, LG&E and KU)

To manage interest rate risk, PPL, LG&E and KU use interest rate contracts such as forward-starting swaps, floating-to-fixed swaps and fixed-to-floating swaps. An income approach is used to measure the fair value of these contracts, utilizing readily observable inputs, such as forward interest rates (e.g., SOFR and government security rates), as well as inputs that may not be observable, such as credit valuation adjustments. In certain cases, market information cannot practicably be obtained to value credit risk and therefore internal models are relied upon. These models use projected probabilities of default and estimated recovery rates based on historical observances. When the credit valuation adjustment is significant to the overall valuation, the contracts are classified as Level 3.

Gas Contracts (PPL)

To manage gas commodity price risk associated with natural gas purchases, RIE utilizes over-the-counter (OTC) gas swaps contracts with pricing inputs obtained from the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE), except in cases where the ICE publishes seasonal averages or where there were no transactions within the last seven days. RIE may utilize discounting based on quoted interest rate curves, including consideration of non-performance risk, and may include a liquidity reserve calculated based on bid/ask spread. Substantially all of these price curves are observable in the marketplace throughout at least 95% of the remaining contractual quantity, or they could be constructed from market observable curves with correlation coefficients of 95% or higher. These contracts are classified as Level 2.

RIE also utilizes gas option and purchase and capacity transactions, which are valued based on internally developed models. Industry-standard valuation techniques, such as the Black-Scholes pricing model, are used for valuing such instruments. For valuations that include both observable and unobservable inputs, if the unobservable input is determined to be significant to the overall inputs, the entire valuation is classified as Level 3. This includes derivative instruments valued using indicative price quotations whose contract tenure extends into unobservable periods. In instances where observable data is unavailable, consideration is given to the assumptions that market participants would use in valuing the asset or liability. This includes assumptions about market risks such as liquidity, volatility, and contract duration. Such instruments are classified as in Level 3 as the model inputs generally are not observable. RIE considers non-performance risk and liquidity risk in the valuation of derivative instruments classified as Level 2 and Level 3.

The significant unobservable inputs used in the fair value measurement of the gas derivative instruments are implied volatility and gas forward curves. A relative change in commodity price at various locations underlying the open positions can result in significantly different fair value estimates.

Financial Instruments Not Recorded at Fair Value (All Registrants)

Long-term debt is classified as Level 2. The effect of third-party credit enhancements is not included in the fair value measurement. The carrying amounts of long-term debt on the Balance Sheets and their estimated fair values are set forth below.

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	June 30, 2023				December 31, 2022
	Carrying Amount (a)		Fair Value		Carrying Amount (a)		Fair Value
PPL	$	14,572	$	13,613	$	13,243	$	12,239
PPL Electric	4,655		4,432		4,486		4,259
LG&E	2,404		2,236		2,307		2,128
KU	3,003		2,722		2,920		2,616

(a)Amounts are net of debt issuance costs.

The carrying amounts of other current financial instruments (except for long-term debt due within one year) approximate their fair values because of their short-term nature.

14. Derivative Instruments and Hedging Activities

(All Registrants)

Risk Management Objectives

PPL has a risk management policy approved by the Board of Directors to manage market risk associated with commodities, interest rates on debt issuances (including price, liquidity and volumetric risk) and credit risk (including non-performance risk and payment default risk). The Risk Management Committee, comprised of senior management and chaired by the Senior Director-Risk Management, oversees the risk management function. Key risk control activities designed to ensure compliance with the risk policy and detailed programs include, but are not limited to, credit review and approval, validation of transactions, verification of risk and transaction limits, value-at-risk analyses (VaR, a statistical model that attempts to estimate the value of potential loss over a given holding period under normal market conditions at a given confidence level) and the coordination and reporting of the Enterprise Risk Management program.

Market Risk

Market risk includes the potential loss that may be incurred as a result of price changes associated with a particular financial or commodity instrument as well as market liquidity and volumetric risks. Forward contracts, futures contracts, options, swaps and structured transactions are utilized as part of risk management strategies to minimize unanticipated fluctuations in earnings caused by changes in commodity prices and interest rates. Many of these contracts meet the definition of a derivative. All derivatives are recognized on the Balance Sheets at their fair value, unless NPNS is elected.

The following summarizes the market risks that affect PPL and its subsidiaries.

Interest Rate Risk

•PPL and its subsidiaries are exposed to interest rate risk associated with forecasted fixed-rate and existing floating-rate debt issuances. PPL and LG&E utilize over-the-counter interest rate swaps to limit exposure to market fluctuations on floating-rate debt. PPL, LG&E and KU utilize forward starting interest rate swaps to hedge changes in benchmark interest rates, when appropriate, in connection with future debt issuance.

•PPL and its subsidiaries are exposed to interest rate risk associated with debt securities and derivatives held by defined benefit plans. This risk is significantly mitigated to the extent that the plans are sponsored at, or sponsored on behalf of, the regulated utilities due to the recovery methods in place.

Commodity Price Risk

PPL is exposed to commodity price risk through its subsidiaries as described below.

•PPL Electric is required to purchase electricity to fulfill its obligation as a PLR. Potential commodity price risk is mitigated through its PAPUC-approved cost recovery mechanism and full-requirement supply agreements to serve its PLR customers which transfer the risk to energy suppliers.

•LG&E's and KU's rates include certain mechanisms for fuel, fuel-related expenses and energy purchases. In addition, LG&E's rates include a mechanism for natural gas supply costs. These mechanisms generally provide for timely recovery of market price fluctuations associated with these costs.

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•RIE utilizes derivative instruments pursuant to its RIPUC-approved plan to manage commodity price risk associated with its natural gas purchases. RIE's commodity price risk management strategy is to reduce fluctuations in firm gas sales prices to its customers. RIE's costs associated with derivatives instruments are recoverable through its RIPUC-approved cost recovery mechanisms. RIE is required to purchase electricity to fulfill its obligation to provide Last Resort Service (LRS). Potential commodity price risk is mitigated through its RIPUC-approved cost recovery mechanisms and full requirements service agreements to serve LRS customers, which transfer the risk to energy suppliers. RIE is required to contract through long-term agreements for clean energy supply under the Rhode Island Renewable Energy Growth program and Long-term Clean Energy Standard. Potential commodity price risk is mitigated through its RIPUC-approved cost recovery mechanisms, which true-up cost differences between contract prices and market prices.

Volumetric Risk

Volumetric risk is the risk related to the changes in volume of retail sales due to weather, economic conditions or other factors. PPL is exposed to volumetric risk through its subsidiaries as described below:

•PPL Electric, LG&E and KU are exposed to volumetric risk on retail sales, mainly due to weather and other economic conditions for which there is limited mitigation between rate cases.

•RIE is exposed to volumetric risk, which is significantly mitigated by regulatory mechanisms. RIE's electric and gas distribution rates both have a revenue decoupling mechanism, which allows for annual adjustments to RIE's delivery rates.

Equity Securities Price Risk

•PPL and its subsidiaries are exposed to equity securities price risk associated with the fair value of the defined benefit plans' assets. This risk is significantly mitigated due to the recovery methods in place.

•PPL is exposed to equity securities price risk from future stock sales and/or purchases.

Credit Risk

Credit risk is the potential loss that may be incurred due to a counterparty's non-performance.

PPL is exposed to credit risk from "in-the-money" transactions with counterparties as well as additional credit risk through certain of its subsidiaries, as discussed below.

In the event a supplier of PPL, PPL Electric, LG&E or KU defaults on its contractual obligation, those Registrants would be required to seek replacement power or replacement fuel in the market. In general, subject to regulatory review or other processes, appropriate incremental costs incurred by these entities would be recoverable from customers through applicable rate mechanisms, thereby mitigating the financial risk for these entities.

PPL and its subsidiaries have credit policies in place to manage credit risk, including the use of an established credit approval process, daily monitoring of counterparty positions and the use of master netting agreements or provisions. These agreements generally include credit mitigation provisions, such as margin, prepayment or collateral requirements. PPL and its subsidiaries may request additional credit assurance, in certain circumstances, in the event that the counterparties' credit ratings fall below investment grade, their tangible net worth falls below specified percentages or their exposures exceed an established credit limit.

Master Netting Arrangements (PPL, LG&E and KU)

Net derivative positions on the balance sheets are not offset against the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) under master netting arrangements.

PPL had no obligation to return or post cash collateral under master netting arrangements at June 30, 2023 and December 31, 2022.

LG&E and KU had no obligation to return or post cash collateral under master netting arrangements at June 30, 2023 and December 31, 2022.

See "Offsetting Derivative Instruments" below for a summary of derivative positions presented in the balance sheets where a right of setoff exists under these arrangements.

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Interest Rate Risk

(All Registrants)

PPL and its subsidiaries issue debt to finance their operations, which exposes them to interest rate risk. A variety of financial derivative instruments are utilized to adjust the mix of fixed and floating interest rates in their debt portfolios, adjust the duration of the debt portfolios and lock in benchmark interest rates in anticipation of future financing, when appropriate. Risk limits under PPL's risk management program are designed to balance risk exposure to volatility in interest expense and changes in the fair value of the debt portfolio due to changes in benchmark interest rates. In addition, the interest rate risk of certain subsidiaries is potentially mitigated as a result of the existing regulatory framework or the timing of rate cases.

Cash Flow Hedges (PPL)

Interest rate risks include exposure to adverse interest rate movements for outstanding variable rate debt and for future anticipated financings. Financial interest rate swap contracts that qualify as cash flow hedges may be entered into to hedge floating interest rate risk associated with both existing and anticipated debt issuances. PPL had no such contracts at June 30, 2023.

Cash flow hedges are discontinued if it is no longer probable that the original forecasted transaction will occur by the end of the originally specified time period and any amounts previously recorded in AOCI are reclassified into earnings once it is determined that the hedged transaction is not probable of occurring.

For the three and six months ended June 30, 2023 and 2022, PPL had no cash flow hedges reclassified into earnings associated with discontinued cash flow hedges.

At June 30, 2023, the amount of accumulated net unrecognized after-tax gains (losses) on qualifying derivatives expected to be reclassified into earnings during the next 12 months is insignificant. Amounts are reclassified as the hedged interest expense is recorded.

Economic Activity (PPL and LG&E)

LG&E enters into interest rate swap contracts that economically hedge interest payments. Because realized gains and losses from the swaps, including terminated swap contracts, are recoverable through regulated rates, any subsequent changes in fair value of these derivatives are included in regulatory assets or liabilities until they are realized as interest expense. Realized gains and losses are recognized in "Interest Expense" on the Statements of Income at the time the underlying hedged interest expense is recorded. At June 30, 2023, LG&E held contracts with a notional amount of $64 million that mature in 2033.

Commodity Price Risk (PPL)

Economic Activity

RIE enters into derivative contracts that economically hedge natural gas purchases. Realized gains and losses from the derivatives are recoverable through regulated rates, therefore subsequent changes in fair value are included in regulatory assets or liabilities until they are realized as purchased gas. Realized gains and losses are recognized in "Energy Purchases" on the Statements of Income upon settlement of the contracts. At June 30, 2023, RIE held contracts with notional volumes of 45 Bcf that range in maturity through 2025.

Accounting and Reporting

(All Registrants)

All derivative instruments are recorded at fair value on the Balance Sheet as an asset or liability unless NPNS is elected. NPNS contracts include certain full requirement purchase contracts and other physical purchase contracts. Changes in the fair value of derivatives not designated as NPNS are recognized in earnings unless specific hedge accounting criteria are met and designated as such, except for the changes in fair values of LG&E's interest rate swaps and certain RIE commodity gas contracts that are recognized as regulatory assets or regulatory liabilities. See Note 6 for amounts recorded in regulatory assets and regulatory liabilities at June 30, 2023 and December 31, 2022.

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See Note 1 in each Registrant's 2022 Form 10-K for additional information on accounting policies related to derivative instruments.

(PPL)

The following table presents the fair value and the location on the Balance Sheets of derivatives not designated as hedging instruments.

	June 30, 2023				December 31, 2022
	Assets		Liabilities		Assets		Liabilities
Current:
Price Risk Management Assets/Liabilities:
Interest rate swaps (a)	$	—	$	1	$	—	$	1
Gas contracts (a)	1		16		20		62
Total current	1		17		20		63
Noncurrent:
Price Risk Management Assets/Liabilities:
Interest rate swaps (a)	—		6		—		6
Gas contracts (a)	—		7		5		4
Total noncurrent	—		13		5		10
Total derivatives	$	1	$	30	$	25	$	73

(a)Current portion is included in "Other current assets" and "Other current liabilities" and noncurrent portion is included in "Other noncurrent assets" and "Other deferred credits and noncurrent liabilities" on the Balance Sheets. Excludes accrued interest, if applicable.

The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities for the period ended June 30, 2023.

	Three Months		Six Months			Three Months		Six Months
Derivative Relationships	Derivative Gain (Loss) Recognized in OCI		Derivative Gain (Loss) Recognized in OCI		Location of Gain (Loss) Recognized in Income on Derivative	Gain (Loss) Reclassified from AOCI into Income		Gain (Loss) Reclassified from AOCI into Income
Cash Flow Hedges:
Interest rate swaps	$	—	$	—	Interest expense	$	(1)	$	(2)

Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income on Derivative	Three Months		Six Months
Gas contracts	Energy purchases	$	(4)	$	(6)
	Other income(expense) -net	(1)		—
	Total	$	(5)	$	(6)
Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized as Regulatory Liabilities/Assets	Three Months		Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	2	$	1
Gas contracts	Regulatory assets - current	2		(26)
	Regulatory assets - noncurrent	—		7
	Total	$	4	$	(18)

The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities for the period ended June 30, 2022.

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	Three Months		Six Months			Three Months		Six Months
Derivative Relationships	Derivative Gain (Loss) Recognized in OCI		Derivative Gain (Loss) Recognized in OCI		Location of Gain (Loss) Recognized in Income on Derivative	Gain (Loss) Reclassified from AOCI into Income		Gain (Loss) Reclassified from AOCI into Income
Cash Flow Hedges:
Interest rate swaps	$	—	$	—	Interest expense	$	(1)	$	(2)

Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income on Derivative	Three Months		Six Months
Interest rate swaps	Interest expense	$	—	$	1
Gas contracts	Energy purchases	9		9
	Total	$	9	$	10
Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized as Regulatory Liabilities/Assets	Three Months		Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	4	$	8

The following table presents the effect of cash flow hedge activity on the Statement of Income for the period ended June 30, 2023.

	Location and Amount of Gain (Loss) Recognized in Income on Hedging Relationships
	Three Months				Six Months
	Interest Expense		Other Income (Expense) - net		Interest Expense		Other Income (Expense) - net
Total income and expense line items presented in the income statement in which the effect of cash flow hedges are recorded	$	165	$	5	$	329	$	35
The effects of cash flow hedges:
Gain (Loss) on cash flow hedging relationships:
Interest rate swaps:
Amount of gain (loss) reclassified from AOCI to income	(1)		—		(2)		—

The following table presents the effect of cash flow hedge activity on the Statement of Income for the period ended June 30, 2022.

	Location and Amount of Gain (Loss) Recognized in Income on Hedging Relationships
	Three Months				Six Months
	Interest Expense		Other Income (Expense) - net		Interest Expense		Other Income (Expense) - net
Total income and expense line items presented in the income statement in which the effect of cash flow hedges are recorded	$	118	$	26	$	225	$	26
The effects of cash flow hedges:
Gain (Loss) on cash flow hedging relationships:
Interest rate swaps:
Amount of gain (loss) reclassified from AOCI to income	(1)		—		(2)		—

(LG&E)

The following table presents the fair value and the location on the Balance Sheets of derivatives not designated as hedging instruments.

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	June 30, 2023				December 31, 2022
	Assets		Liabilities		Assets		Liabilities
Current:
Price Risk Management Assets/Liabilities:
Interest rate swaps	$	—	$	1	$	—	$	1
Total current	—		1		—		1
Noncurrent:
Price Risk Management Assets/Liabilities:
Interest rate swaps	—		6		—		6
Total noncurrent	—		6		—		6
Total derivatives	$	—	$	7	$	—	$	7

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the period ended June 30, 2023.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Income on Derivatives	Three Months		Six Months
Interest rate swaps	Interest expense	$	—	$	—
	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months		Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	2	$	1

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the period ended June 30, 2022. 

	Location of Gain (Loss) Recognized in
Derivative Instruments	Income on Derivatives	Three Months		Six Months
Interest rate swaps	Interest expense	$	—	$	1
	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months		Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	4	$	8

(PPL, LG&E and KU)

Offsetting Derivative Instruments

PPL, LG&E and KU or certain of their subsidiaries have master netting arrangements in place and also enter into agreements pursuant to which they purchase or sell certain energy and other products. Under the agreements, upon termination of the agreement as a result of a default or other termination event, the non-defaulting party typically would have a right to set off amounts owed under the agreement against any other obligations arising between the two parties (whether under the agreement or not), whether matured or contingent and irrespective of the currency, place of payment or place of booking of the obligation.

PPL, LG&E and KU have elected not to offset derivative assets and liabilities and not to offset net derivative positions against the right to reclaim cash collateral pledged (an asset) or the obligation to return cash collateral received (a liability) under derivatives agreements. The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged.

	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
June 30, 2023
Derivatives
PPL	$	1	$	1	$	—	$	—	$	30	$	1	$	—	$	29
LG&E	—		—		—		—		7		—		—		7

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	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
December 31, 2022
Derivatives
PPL	$	25	$	20	$	—	$	5	$	73	$	62	$	—	$	11
LG&E	—		—		—		—		7		—		—		7

Credit Risk-Related Contingent Features

Certain derivative contracts contain credit risk-related contingent features which, when in a net liability position, would permit the counterparties to require the transfer of additional collateral upon a decrease in the credit ratings of PPL, LG&E and KU or certain of their subsidiaries. Most of these features would require the transfer of additional collateral or permit the counterparty to terminate the contract if the applicable credit rating were to fall below investment grade. Some of these features also would allow the counterparty to require additional collateral upon each downgrade in credit rating at levels that remain above investment grade. In either case, if the applicable credit rating were to fall below investment grade, and assuming no assignment to an investment grade affiliate were allowed, most of these credit contingent features require either immediate payment of the net liability as a termination payment or immediate and ongoing full collateralization on derivative instruments in net liability positions.

Additionally, certain derivative contracts contain credit risk-related contingent features that require adequate assurance of performance be provided if the other party has reasonable concerns regarding the performance of PPL's, LG&E's and KU's obligations under the contracts. A counterparty demanding adequate assurance could require a transfer of additional collateral or other security, including letters of credit, cash and guarantees from a creditworthy entity. This would typically involve negotiations among the parties. However, amounts would represent assumed immediate payment or immediate and ongoing full collateralization for derivative instruments in net liability positions with "adequate assurance" features.

(PPL)

At June 30, 2023, derivative contracts in a net liability position that contain credit risk-related contingent features, collateral posted on those positions and the related effect of a decrease in credit ratings below investment grade was $22 million. The aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade was $22 million.

15. Asset Retirement Obligations

(PPL, LG&E and KU)

PPL's, LG&E's and KU's ARO liabilities are primarily related to CCR closure costs. See Note 10 for information on the CCR rule. LG&E also has AROs related to natural gas mains and wells. LG&E's and KU's transmission and distribution lines largely operate under perpetual property easement agreements, which do not generally require restoration upon removal of the property. Therefore, no material AROs are recorded for transmission and distribution assets. For LG&E and KU, all ARO accretion and depreciation expenses are reclassified as a regulatory asset or regulatory liability. ARO regulatory assets associated with certain CCR projects are amortized to expense in accordance with regulatory approvals. For other AROs, deferred accretion and depreciation expense is recovered through cost of removal.

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The changes in the carrying amounts of AROs were as follows.

	PPL		LG&E		KU
Balance at December 31, 2022	$	177	$	86	$	82
Accretion	4		2		2
New obligations incurred	2		1		1
Changes in estimated cash flow or settlement date	(1)		1		—
Obligations settled	(16)		(6)		(10)
Other	(5)		(6)		—
Balance at June 30, 2023	$	161	$	78	$	75

16. Accumulated Other Comprehensive Income (Loss)

(PPL)

The after-tax changes in AOCI by component for the periods ended June 30 were as follows.

	Unrealized gains (losses)  on qualifying derivatives				Defined benefit plans
			Equity investees' AOCI		Prior service costs		Actuarial gain (loss)		Total
PPL
March 31, 2023	$	4	$	3	$	(5)	$	(125)	$	(123)
Amounts arising during the period	—		—		—		(15)		(15)
Reclassifications from AOCI	—		—		1		—		1
Net OCI during the period	—		—		1		(15)		(14)
June 30, 2023	$	4	$	3	$	(4)	$	(140)	$	(137)
December 31, 2022	$	3	$	2	$	(5)	$	(124)	$	(124)
Amounts arising during the period	—		1		—		(15)		(14)
Reclassifications from AOCI	1		—		1		(1)		1
Net OCI during the period	1		1		1		(16)		(13)
June 30, 2023	$	4	$	3	$	(4)	$	(140)	$	(137)
March 31, 2022	$	2	$	1	$	(6)	$	(149)	$	(152)
Amounts arising during the period	—		1		—		21		22
Reclassifications from AOCI	—		—		—		6		6
Net OCI during the period	—		1		—		27		28
June 30, 2022	$	2	$	2	$	(6)	$	(122)	$	(124)
December 31, 2021	$	1	$	—	$	(6)	$	(152)	$	(157)
Amounts arising during the period	—		2		(1)		21		22
Reclassifications from AOCI	1		—		1		9		11
Net OCI during the period	1		2		—		30		33
June 30, 2022	$	2	$	2	$	(6)	$	(122)	$	(124)

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The following table presents PPL's gains (losses) and related income taxes for reclassifications from AOCI for the periods ended June 30.

	Three Months				Six Months				Affected Line Item on the
Details about AOCI	2023		2022		2023		2022		Statements of Income
Qualifying derivatives
Interest rate swaps	$	(1)	$	(1)	$	(2)	$	(2)	Interest Expense
Total Pre-tax	(1)		(1)		(2)		(2)
Income Taxes	1		1		1		1
Total After-tax	—		—		(1)		(1)
Defined benefit plans
Prior service costs (a)	(1)		—		(1)		(1)
Net actuarial loss (a)	1		(8)		2		(12)
Total Pre-tax	—		(8)		1		(13)
Income Taxes	(1)		2		(1)		3
Total After-tax	(1)		(6)		—		(10)
Total reclassifications during the period	$	(1)	$	(6)	$	(1)	$	(11)

(a)    These AOCI components are included in the computation of net periodic defined benefit cost. See Note 9 for additional information.

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Item 2. Combined Management's Discussion and Analysis of Financial Condition and

Results of Operations

(All Registrants)

This "Item 2. Combined Management's Discussion and Analysis of Financial Condition and Results of Operations" is separately filed by PPL, PPL Electric, LG&E and KU. Information contained herein relating to any individual Registrant is filed by such Registrant solely on its own behalf, and no Registrant makes any representation as to information relating to any other Registrant. The specific Registrant to which disclosures are applicable is identified in parenthetical headings in italics above the applicable disclosure or within the applicable disclosure for each Registrant's related activities and disclosures. Within combined disclosures, amounts are disclosed for individual Registrants when significant.

The following should be read in conjunction with the Registrants' Condensed Consolidated Financial Statements and the accompanying Notes and with the Registrants' 2022 Form 10-K. Capitalized terms and abbreviations are defined in the glossary. Dollars are in millions, except per share data, unless otherwise noted.

"Management's Discussion and Analysis of Financial Condition and Results of Operations" includes the following information:

•"Overview" provides a description of each Registrant's business strategy and a discussion of important financial and operational developments.

•"Results of Operations" for all Registrants includes a "Statement of Income Analysis," which discusses significant changes in principal line items on the Statements of Income, comparing the three and six months ended June 30, 2023 with the same periods in 2022. The PPL "Results of Operations" also includes "Segment Earnings" which provides a detailed analysis of earnings by reportable segment. These discussions include the non-GAAP financial measure, "Earnings from Ongoing Operations" and provide an explanation of the non-GAAP financial measure and a reconciliation of the measure to the most comparable GAAP measure.

•"Financial Condition - Liquidity and Capital Resources" provides an analysis of the Registrants' liquidity positions and credit profiles. This section also includes a discussion of rating agency actions.

•"Financial Condition - Risk Management" provides an explanation of the Registrants' risk management programs relating to market and credit risk.

Overview

Introduction

(PPL)

PPL, headquartered in Allentown, Pennsylvania, is a utility holding company. PPL, through its regulated utility subsidiaries, delivers electricity to customers in Pennsylvania, Kentucky, Virginia, and Rhode Island; delivers natural gas to customers in Kentucky and Rhode Island; and generates electricity from power plants in Kentucky.

PPL's principal subsidiaries are shown below (* denotes a Registrant).

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		PPL Corporation*
				PPL Capital Funding Provides financing for the operations of PPL and certain subsidiaries
PPL Electric* Engages in the regulated transmission and distribution of electricity in Pennsylvania		LKE A holding company that owns regulated utility operations through its subsidiaries, LG&E and KU			RIE Engages in the regulated transmission, distribution and sale of electricity and regulated distribution and sale of natural gas in Rhode Island
	LG&E* Engages in the regulated generation, transmission, distribution and sale of electricity and regulated distribution and sale of natural gas in Kentucky		KU* Engages in the regulated generation, transmission, distribution and sale of electricity, primarily in Kentucky
Pennsylvania Regulated Segment		Kentucky Regulated Segment			Rhode Island Regulated Segment

In addition to PPL, the other Registrants included in this filing are as follows.

(PPL Electric)

PPL Electric, headquartered in Allentown, Pennsylvania, is a wholly-owned subsidiary of PPL and a regulated public utility that is an electricity transmission and distribution service provider in eastern and central Pennsylvania. PPL Electric is subject to regulation as a public utility by the PAPUC, and certain of its transmission activities are subject to the jurisdiction of the FERC under the Federal Power Act. PPL Electric delivers electricity in its Pennsylvania service area and provides electricity supply to retail customers in that area as a PLR under the Customer Choice Act. PPL Electric was organized in 1920 as Pennsylvania Power & Light Company.

(LG&E)

LG&E, headquartered in Louisville, Kentucky, is a wholly-owned subsidiary of LKE and a regulated utility engaged in the generation, transmission, distribution and sale of electricity and distribution and sale of natural gas in Kentucky. LG&E is subject to regulation as a public utility by the KPSC, and certain of its transmission activities are subject to the jurisdiction of the FERC under the Federal Power Act.

(KU)

KU, headquartered in Lexington, Kentucky, is a wholly-owned subsidiary of LKE and a regulated utility engaged in the generation, transmission, distribution and sale of electricity in Kentucky and Virginia. KU is subject to regulation as a public utility by the KPSC and the VSCC, and certain of its transmission and wholesale power activities are subject to the jurisdiction of the FERC under the Federal Power Act. KU serves its Kentucky customers under the KU name and its Virginia customers under the Old Dominion Power name.

Segment Information (PPL)

Beginning on January 1, 2023, the Kentucky Regulated segment consists primarily of the regulated electricity generation, transmission and distribution operations conducted by LG&E and KU, as well as LG&E's regulated distribution and sale of natural gas. Prior to January 1, 2023, the Kentucky Regulated segment also included the financing activities of LKE. The financing activity of LKE is presented in "Corporate and Other" beginning on January 1, 2023. Prior periods have been adjusted to reflect this change. As a result, PPL’s segments consist of its regulated operations in Kentucky, Pennsylvania and Rhode

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Island and exclude any incremental financing activities of holding companies, which Management believes is a more meaningful presentation as it provides information on the core regulated operations of PPL.

Business Strategy

(All Registrants)

PPL operates four fully regulated utilities located in Pennsylvania, Kentucky and Rhode Island, which are constructive regulatory jurisdictions with distinct regulatory structures and customer classes.

PPL's strategy, which is supported by the other Registrants and subsidiaries, is to achieve industry-leading performance in safety, reliability, customer satisfaction and operational efficiency; to advance a clean energy transition while maintaining affordability and reliability; to maintain a strong financial foundation and create long-term value for our shareowners; to foster a diverse and exceptional workplace; and to build strong communities in areas that we serve.

Central to PPL's and the other Registrants' strategy is recovering capital project costs efficiently through various rate-making mechanisms, including periodic base rate case proceedings using forward test years, annual FERC formula rate mechanisms and other regulatory agency-approved recovery mechanisms designed to limit regulatory lag. In Kentucky, in addition to FERC formula rates, the KPSC has adopted a series of regulatory mechanisms (ECR, DSM, GLT, fuel adjustment clause, and gas supply clause) and recovery on construction work-in-progress that reduce regulatory lag and provide timely recovery of and return on, as appropriate, prudently incurred costs. In Pennsylvania, FERC formula rates, DSIC mechanism, Smart Meter Rider and other recovery mechanisms operate to reduce regulatory lag and provide for timely recovery of and a return on, as appropriate, prudently incurred costs. In Rhode Island, FERC formula rates, the gas cost adjustment, net metering, infrastructure, safety and reliability (ISR) and revenue decoupling mechanisms and other rate adjustment mechanisms operate to reduce regulatory lag and provide timely recovery of and return on, as appropriate, prudently incurred costs.

Financial and Operational Developments

IRS Revenue Procedure 2023-15 (PPL and LG&E)

On April 14, 2023, the IRS issued Revenue Procedure 2023-15, which provides a safe harbor method of accounting that taxpayers may use to determine whether expenses to repair, maintain, replace, or improve natural gas transmission and distribution property must be capitalized for tax purposes. PPL and LG&E are currently reviewing the revenue procedure to determine what impact the newly issued guidance may have on their financial statements.

Regulatory Requirements

(All Registrants)

The Registrants cannot predict the impact that future regulatory requirements may have on their financial condition or results of operations.

(PPL, LG&E and KU)

Environmental Considerations for Coal-Fired Generation

The businesses of LG&E and KU are subject to extensive federal, state and local environmental laws, rules and regulations, including those pertaining to CCRs, GHG, and ELGs. See Notes 6, 10 and 15 to the Financial Statements for a discussion of these significant environmental matters. These and other environmental requirements led PPL, LG&E and KU to retire approximately 1,200 MW of coal-fired generating plants in Kentucky since 2010. As part of the long-term generation planning process, LG&E and KU evaluate a range of factors including the impact of potential stricter environmental regulations, fuel price scenarios, the cost of replacement generation, continued operations and major maintenance costs and the risk of major equipment failures in determining when to retire generation assets.

As a result of environmental requirements and aging infrastructure, LG&E anticipates retiring two older coal-fired units at the Mill Creek Plant and KU anticipates retiring one coal-fired unit at each of the E.W. Brown and Ghent plants. Mill Creek Unit 1, with 300 MW of capacity, is expected to be retired in 2024. Mill Creek Unit 2, with 297 MW of capacity, is expected to be retired in 2027. E.W. Brown Unit 3, with 412 MW of capacity, and Ghent Unit 2, with 486 MW of capacity, are expected to be

67

retired in 2028. On May 10, 2023, LG&E and KU submitted an application with the KPSC requesting approval of the relevant proposed retirements. LG&E and KU expect to recover the associated retirement costs, including the remaining net book value, for these coal-fired generating units through the RAR or other rate mechanisms in the future.

CPCN and SB 4 Application

On December 15, 2022, LG&E and KU filed an application with the KPSC for a CPCN for the construction of two 621 MW net summer rating NGCC combustion turbine facilities, one at LG&E's Mill Creek Generating Station in Jefferson County, Kentucky and the other at KU's E.W. Brown Generating Station in Mercer County, Kentucky, including on-site natural gas and electric transmission construction associated with those facilities and site compatibility certificates. LG&E and KU also applied for a CPCN to construct a 120 MWac solar photovoltaic electric generating facility in Mercer County, Kentucky, and for a CPCN to acquire a 120 MWac solar facility to be built by a third-party solar developer in Marion County, Kentucky. LG&E and KU further applied for a CPCN to construct a 125 MW, 4-hour battery energy storage system facility at KU's E.W. Brown Generating Station and for approval of their proposed 2024-2030 DSM programs. The plan includes adding 14 new, adjusted or expanded energy efficiency programs, which would reduce LG&E's and KU's overall need by approximately 100 MW each. Finally, LG&E and KU requested a declaratory order to confirm that their entry into non-firm energy-only power-purchase agreements for the output of four solar photovoltaic facilities with a combined capacity of 637 MW does not require KPSC approval and that LG&E and KU may recover the costs of the solar PPAs through their fuel adjustment clause mechanisms as previously approved for a prior solar PPA. LG&E and KU plan to accrue AFUDC on the constructed NGCC facilities, the solar facility in Mercer County, Kentucky and the battery energy storage system facility and have requested regulatory asset treatment to recover the financing costs of these projects.

The plan is consistent with PPL's goal to achieve net-zero carbon emissions by 2050. PPL has estimated that the replacement strategy contemplated by the plan would reduce the carbon intensity of LG&E and KU's generation fleet and result in greenhouse gas emissions reductions that support achievement of 2035 and 2040 interim targets of 70% and 80%, respectively.

The KPSC accepted the CPCN filing as of January 6, 2023. On March 24, 2023, Kentucky Senate Bill 4 (SB 4) went into effect, which requires KPSC approval of fossil fuel-fired electric generating unit retirements in the state. On May 10, 2023, LG&E and KU filed an application with the KPSC seeking approval of the retirement of seven fossil fuel-fired generating units as required by the recently enacted SB 4. On May 16, 2023, the KPSC entered an Order consolidating the SB 4 filing proceeding into the CPCN case. The KPSC has indicated its intention to issue an order on all issues by November 6, 2023. PPL, LG&E and KU cannot predict the outcome of these matters.

Kentucky March 2023 Storm

On March 3, 2023, LG&E and KU experienced significant windstorm activity in their service territories, resulting in substantial damage to certain of LG&E's and KU's assets with total costs incurred through June 30, 2023 of $75 million ($33 million at LG&E and $42 million at KU). On March 17, 2023, LG&E and KU submitted a filing with the KPSC requesting regulatory asset treatment of the extraordinary operations and maintenance expenses portion of the costs incurred related to the windstorm. On April 5, 2023, the KPSC issued an order approving the request for accounting purposes, noting that approval for recovery would be determined in LG&E’s and KU’s next base rate cases. As of June 30, 2023, LG&E and KU recorded regulatory assets related to the storm of $8 million and $11 million.

FERC Transmission Rate Filing (PPL, LG&E and KU)

In 2018, LG&E and KU applied to the FERC requesting elimination of certain on-going waivers and credits to a sub-set of transmission customers relating to the 1998 merger of LG&E's and KU's parent entities and the 2006 withdrawal of LG&E and KU from the Midcontinent Independent System Operator, Inc. (MISO), a regional transmission operator and energy market. The application sought termination of LG&E's and KU's commitment to provide certain Kentucky municipalities mitigation for certain horizontal market power concerns arising out of the 1998 LG&E and KU merger and 2006 MISO withdrawal. The amounts at issue are generally waivers or credits granted to a limited number of Kentucky municipalities for either certain LG&E and KU or MISO transmission charges incurred for transmission service received. In 2019, the FERC granted LG&E's and KU's request to remove the ongoing credits, conditioned upon the implementation by LG&E and KU of a transition mechanism for certain existing power supply arrangements, which was subsequently filed, modified, and approved by the FERC in 2020 and 2021. In 2020, LG&E and KU and other parties filed appeals with the D.C. Circuit Court of Appeals regarding the FERC's orders on the elimination of the mitigation and required transition mechanism. In August 2022, the D.C. Circuit Court of Appeals issued an order remanding the proceedings back to the FERC. On May 18, 2023, the FERC issued an order on remand reversing its 2019 decision and requiring LG&E and KU to refund credits previously withheld, including

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under such transition mechanism. On June 9, 2023, the FERC granted LG&E’s and KU’s motion for an extension of time to process refunds until November 2023. LG&E and KU filed a request for rehearing of the May 18, 2023 order, which was denied by operation of law on July 17, 2023. LG&E and KU filed petition for review of FERC's May 18, 2023 order with the D.C. Circuit Court of Appeals on July 28, 2023. In the second quarter of 2023, LG&E and KU recorded regulatory liabilities of $3 million and $8 million related to potential refunds resulting from the FERC’s May 18, 2023 order. LG&E and KU cannot predict the ultimate outcome of the proceedings or any other post decision process but do not expect the annual impact to have a material effect on their operations or financial condition. LG&E and KU currently receive recovery of certain waivers and credits provided primarily through base rates with increases associated with the FERC's May 18, 2023 order expected to be primarily subject to base rate recovery in future rate proceedings.

(PPL)

FY 2024 Gas Infrastructure, Safety and Reliability (ISR) Plan

On December 23, 2022, RIE filed its FY 2024 Gas ISR Plan with the RIPUC. At its January 20, 2023 Open Meeting, the RIPUC directed RIE to file supplemental budget and rate schedules to reflect an April 1 to March 31 fiscal year. The supplemental budget that was filed with the RIPUC on January 27, 2023 includes $187 million of capital investment spend. The supplemental rate schedules were filed on February 3, 2023. RIE and the Rhode Island Division of Public Utilities and Carriers reached an agreement on an approximately $171 million capital investment spending plan, and RIE filed a second supplemental budget on March 13, 2023. The RIPUC held a hearing on the plan on March 14, 2023. At an Open Meeting on March 29, 2023, the RIPUC approved the plan with an adjustment to the budget for the Proactive Main Replacement Program category resulting in a total approved FY 2024 Gas ISR Plan of $163 million for capital investment spend. On March 31, 2023, the RIPUC approved RIE's March 30, 2023 compliance filing for rates effective April 1, 2023. The RIPUC continues to consider the appropriate rate recovery treatment of projects not covered by an ISR plan for the applicable fiscal year, and additional definitions and procedures that may be implemented related to the ISR plan process. RIE cannot predict the outcome of this matter.

FY 2024 Electric ISR Plan

On December 23, 2022, RIE filed its FY 2024 Electric ISR Plan with the RIPUC. At its January 20, 2023 Open Meeting, the RIPUC directed RIE to file supplemental budget and rate schedules to reflect an April 1 to March 31 fiscal year. The supplemental budget filed with the RIPUC on January 27, 2023 includes $176 million of capital investment spend, $14 million of vegetation operations and management (O&M) spend and $3 million of Other O&M spend. The supplemental rate schedules were filed on February 3, 2023. RIE filed second supplemental budget schedules on March 21, 2023, which includes $166 million of capital investment spend, $14 million of vegetation management O&M spend and $1 million of Other O&M spend. The RIPUC held hearings in March 2023, and on March 29, 2023, approved the plan with modifications to the proposed capital investment spend, resulting in a total approved FY 2024 Electric ISR Plan of $112 million for capital investment spend, $14 million for vegetation management O&M spend, and $1 million for Other O&M spend. On March 31, 2023, the RIPUC approved RIE's March 30, 2023 compliance filing for rates effective April 1, 2023. The RIPUC continues to consider the appropriate rate recovery treatment of projects not covered by an ISR plan for the applicable fiscal year, and additional definitions and procedures that may be implemented related to the ISR plan process. RIE cannot predict the outcome of this matter.

Results of Operations

(PPL)

The "Statement of Income Analysis" discussion below describes significant changes in principal line items on the Statements of Income, comparing the three and six months ended June 30, 2023 with the same periods in 2022. The "Segment Earnings" discussion provides a review of results by reportable segment. These discussions include the non-GAAP financial measure, "Earnings from Ongoing Operations" and provide an explanation of the non-GAAP financial measure and a reconciliation of the measure to the most comparable GAAP measure.

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(PPL Electric, LG&E and KU)

A "Statement of Income Analysis" is presented separately for PPL Electric, LG&E and KU. The "Statement of Income Analysis" discussion below describes significant changes in principal line items on the Statements of Income, comparing the three and six months ended June 30, 2023 with the same periods in 2022.

(All Registrants)

The results for interim periods can be disproportionately influenced by numerous factors and developments and by seasonal variations. As such, the results of operations for interim periods do not necessarily indicate results or trends for the year or future periods.

PPL: Statement of Income Analysis and Segment Earnings

Statement of Income Analysis

Net income for the periods ended June 30 includes the following results:

	Three Months						Six Months
	2023		2022		$ Change		2023		2022		$ Change
Operating Revenues	$	1,823	$	1,696	$	127	$	4,238	$	3,478	$	760
Operating Expenses
Operation
Fuel	167		229		(62)		368		441		(73)
Energy purchases	340		305		35		1,074		657		417
Other operation and maintenance	609		560		49		1,168		993		175
Depreciation	313		289		24		626		560		66
Taxes, other than income	89		70		19		199		130		69
Total Operating Expenses	1,518		1,453		65		3,435		2,781		654
Other Income (Expense) - net	5		26		(21)		35		26		9
Interest Expense	165		118		47		329		225		104
Income Before Income Taxes	145		151		(6)		509		498		11
Income Taxes	33		32		1		112		106		6
Net Income	$	112	$	119	$	(7)	$	397	$	392	$	5

Operating Revenues

The increase (decrease) in operating revenues was due to:

	Three Months		Six Months
PPL Electric distribution price (a)	$	13	$	40
PPL Electric distribution volume (b)	(18)		(47)
PPL Electric PLR (c)	(15)		98
PPL Electric transmission formula rate (d)	9		17
LG&E volumes (b)	(29)		(72)
LG&E fuel and other energy prices (e)	(33)		(22)
LG&E economic relief billing credit, net of amortization of $0	6		12
KU volumes (b)	(34)		(79)
KU fuel and other energy prices (e)	(25)		(16)
KU economic relief billing credit, net of amortization of $0	3		5
Acquisition of RIE	249		814
Other	1		10
Total	$	127	$	760

(a)The increases were primarily due to reconcilable cost recovery mechanisms approved by the PAPUC.

(b)The decreases were primarily due to lower volumes due to weather.

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(c)The increase for the six month period was primarily the result of higher energy prices and more PLR customers, partially offset by lower customer volumes due to weather.

(d)The increases were primarily due to the point to point border rate settlement variance and returns on additional transmission capital investments, partially offset by a lower PPL zonal peak load billing factor in 2023.

(e)The decreases were primarily due to lower recoveries of fuel and energy purchases due to lower commodity costs.

Fuel

Fuel decreased $62 million for the three months ended June 30, 2023 compared with 2022, primarily due to a decrease in commodity costs of $13 million at LG&E and $27 million at KU and a decrease in volumes due to weather of $9 million at LG&E and $14 million at KU.

Fuel decreased $73 million for the six months ended June 30, 2023 compared with 2022, primarily due to a decrease in volumes due to weather of $14 million at LG&E and $29 million at KU and a decrease in commodity costs of $11 million at LG&E and $20 million at KU.

Energy Purchases

Energy purchases increased $35 million for the three months ended June 30, 2023 compared with 2022, primarily due to higher PLR prices of $39 million at PPL Electric and an additional $70 million due to the operations of RIE, partially offset by lower PLR volumes of $52 million at PPL Electric and a decrease in commodity costs at LG&E of $20 million.

Energy purchases increased $417 million for the six months ended June 30, 2023 compared with 2022, primarily due to higher PLR prices of $161 million at PPL Electric and an additional $356 million due to the operations of RIE, partially offset by lower PLR volumes of $77 million at PPL Electric, a decrease in volumes due to weather at LG&E of $20 million and a decrease in commodity costs at LG&E of $8 million.

Other Operation and Maintenance

The increase (decrease) in other operation and maintenance was due to:

	Three Months		Six Months
PPL Electric storm costs	$	—	$	(3)
PPL Electric vegetation management expenses	(3)		(4)
PPL Electric support costs	(5)		(8)
PPL Electric bad debts	7		11
PPL Electric operation costs	8		8
PPL Electric IT cloud amortization costs	7		13
LG&E plant operations and maintenance expenses	(9)		(12)
LG&E transmission credits	3		3
LG&E generation outage expenses	(1)		(2)
LG&E vegetation management expenses	(2)		(4)
KU generation outage expenses	(4)		(6)
KU transmission credits	7		7
KU vegetation management expenses	(2)		(5)
Acquisition of RIE (a)	61		204
Other	(18)		(27)
Total	$	49	$	175

(a)Includes activity associated with the operations of RIE, along with integration and related costs. See Note 8 to the Financial Statements for additional information.

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Depreciation

The increase (decrease) in depreciation was due to:

	Three Months		Six Months
Additions to PP&E, net	$	3	$	7
VA rate case adjustment	(2)		(2)
Acquisition of RIE	25		64
Other	(2)		(3)
Total	$	24	$	66

Taxes, Other Than Income

The increase (decrease) in taxes, other than income was due to:

	Three Months		Six Months
State gross receipts tax (a)	$	7	$	35
Domestic property tax expense (a)	13		34
Other	(1)		—
Total	$	19	$	69

(a)The increases were primarily due to the acquisition of RIE.

Other Income (Expense) - net

The increase (decrease) in other income (expense) - net was due to:

	Three Months		Six Months
Defined benefit plans - non-service credits (Note 9)	$	(10)	$	(4)
Interest income	9		19
Other (a)	(20)		(6)
Total	$	(21)	$	9

(a)See Note 12 for additional information.

Interest Expense

The increase (decrease) in interest expense was due to:

	Three Months		Six Months
Long-term debt (a)	$	37	$	71
Acquisition of RIE	10		27
Short-term debt	—		5
Other	—		1
Total	$	47	$	104

(a)    The increases were primarily due to increased borrowings at LG&E, KU, PPL Electric and PPL Capital Funding, along with higher rates at PPL Capital Funding.

Income Taxes

The increase (decrease) in income taxes was due to:

	Three Months		Six Months
Change in pre-tax income	$	(18)	$	(13)
Valuation allowance adjustments	(2)		(3)
Amortization of investment tax credit including deferred taxes on basis difference	4		6
Amortization of excess deferred income taxes	14		20
Other	3		(4)
Total	$	1	$	6

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Segment Earnings

PPL's Net Income by reportable segment for the periods ended June 30 was as follows:

	Three Months						Six Months
	2023		2022		$ Change		2023		2022		$ Change
Kentucky Regulated (a)	$	91	$	112	$	(21)	$	257	$	301	$	(44)
Pennsylvania Regulated	110		124		(14)		248		267		(19)
Rhode Island Regulated	10		(29)		39		64		(29)		93
Corporate and Other (a) (b)	(99)		(88)		(11)		(172)		(147)		(25)
Net Income	$	112	$	119	$	(7)	$	397	$	392	$	5

(a)The financing activity of LKE is presented in Corporate and Other beginning on January 1, 2023. Prior periods have been adjusted to reflect this change.

(b)Primarily represents financing and certain other costs incurred at the corporate level that have not been allocated or assigned to the segments, which are presented to reconcile segment information to PPL's consolidated results.

Earnings from Ongoing Operations

Management utilizes "Earnings from Ongoing Operations" as a non-GAAP financial measure that should not be considered as an alternative to net income, an indicator of operating performance determined in accordance with GAAP. PPL believes that Earnings from Ongoing Operations is useful and meaningful to investors because it provides management's view of PPL's earnings performance as another criterion in making investment decisions. In addition, PPL's management uses Earnings from Ongoing Operations in measuring achievement of certain corporate performance goals, including targets for certain executive incentive compensation. Other companies may use different measures to present financial performance.

Earnings from Ongoing Operations is adjusted for the impact of special items. Special items are presented in the financial tables on an after-tax basis with the related income taxes on special items separately disclosed. Income taxes on special items, when applicable, are calculated based on the statutory tax rate of the entity where the activity is recorded. Special items may include items such as:

• Gains and losses on sales of assets not in the ordinary course of business.

• Impairment charges.

• Significant workforce reduction and other restructuring effects.

• Acquisition and divestiture-related adjustments.

• Significant losses on early extinguishment of debt.

• Other charges or credits that are, in management's view, non-recurring or otherwise not reflective of the company's ongoing operations.

PPL's Earnings from Ongoing Operations by reportable segment for the periods ended June 30 were as follows:

	Three Months						Six Months
	2023		2022		$ Change		2023		2022		$ Change
Kentucky Regulated (a)	$	96	$	114	$	(18)	$	263	$	307	$	(44)
Pennsylvania Regulated	117		124		(7)		254		267		(13)
Rhode Island Regulated	23		9		14		94		9		85
Corporate and Other (a)	(21)		(25)		4		(44)		(56)		12
Earnings from Ongoing Operations	$	215	$	222	$	(7)	$	567	$	527	$	40

(a)The financing activity of LKE is presented in Corporate and Other beginning on January 1, 2023. Prior periods have been adjusted to reflect this change.

See "Reconciliation of Earnings from Ongoing Operations" below for a reconciliation of this non-GAAP financial measure to Net Income.

Kentucky Regulated Segment

The Kentucky Regulated segment consists primarily of the regulated electricity generation, transmission and distribution operations conducted by LG&E and KU, as well as LG&E's regulated distribution and sale of natural gas.

Net Income and Earnings from Ongoing Operations for the periods ended June 30 include the following results.

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	Three Months						Six Months
	2023		2022 (a)		$ Change		2023		2022 (a)		$ Change
Operating revenues	$	778	$	883	$	(105)	$	1,738	$	1,887	$	(149)
Fuel	167		229		(62)		368		441		(73)
Energy purchases	28		50		(22)		118		146		(28)
Other operation and maintenance	217		234		(17)		426		459		(33)
Depreciation	174		173		1		347		342		5
Taxes, other than income	23		23		—		46		46		—
Total operating expenses	609		709		(100)		1,305		1,434		(129)
Other Income (Expense) - net	3		8		(5)		6		6		—
Interest Expense	59		49		10		117		96		21
Income Taxes	22		21		1		65		62		3
Net Income	91		112		(21)		257		301		(44)
Less: Special Items	(5)		(2)		(3)		(6)		(6)		—
Earnings from Ongoing Operations	$	96	$	114	$	(18)	$	263	$	307	$	(44)

(a)The financing activity of LKE is presented in Corporate and Other beginning on January 1, 2023. Prior periods have been adjusted to reflect this change.

The following after-tax gains (losses), which management considers special items, impacted the Kentucky Regulated segment's results and are excluded from Earnings from Ongoing Operations during the periods ended June 30.

	Income Statement Line Item	Three Months				Six Months
		2023		2022		2023		2022
Strategic corporate initiatives, net of tax of $1, $0, $2 (a)	Other operation and maintenance	$	—	$	(2)	$	(1)	$	(6)
FERC transmission credit refund, net of tax of $2, $2 (b)	Other operation and maintenance	(5)		—		(5)		—
Total Special Items		$	(5)	$	(2)	$	(6)	$	(6)

(a)Costs incurred related to PPL's corporate centralization efforts.

(b)Prior period impact related to a FERC refund order. See Note 6 to the Financial Statements for additional information.

The changes in the components of the Kentucky Regulated segment's results between these periods were due to the factors set forth below, which exclude the items that management considers special.

•Lower operating revenues for the three month period primarily due to a $63 million decrease in sales volumes primarily due to weather and a $58 million decrease in recoveries of fuel and energy purchases due to lower commodity costs, partially offset by a $9 million increase due to the expiration of the economic relief billing credit from June 2022 and other items that were not individually significant.

•Lower operating revenues for the six month period primarily due to a $151 million decrease in sales volumes primarily due to weather and a $38 million decrease in recoveries of fuel and energy purchases due to lower commodity costs, partially offset by a $17 million increase due to the expiration of the economic relief billing credit from June 2022 and other items that were not individually significant.

•Lower fuel expense for the three month period primarily due to a $40 million decrease in commodity costs and a $23 million decrease in volumes due to weather.

•Lower fuel expense for the six month period primarily due to a $43 million decrease in volumes due to weather and a $31 million decrease in commodity costs.

•Lower energy purchases for the three month period primarily due to a $20 million decrease in commodity costs.

•Lower energy purchases for the six month period primarily due to a $20 million decrease in volumes due to weather and a $8 million decrease in commodity costs.

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•Lower other operation and maintenance expense for the three month period primarily due to a $5 million decrease in generation outage expenses, a $4 million decrease in vegetation management expenses and other items that were not individually significant.

•Lower operation and maintenance expense for the six month period primarily due to a $9 million decrease in vegetation management expenses, an $8 million decrease in generation outage expenses and other items that were not individually significant.

•Higher interest expense for the three and six month periods primarily due to increased borrowings.

Pennsylvania Regulated Segment

The Pennsylvania Regulated segment includes the regulated electricity transmission and distribution operations of PPL Electric.

Net Income and Earnings from Ongoing Operations for the periods ended June 30 include the following results.

	Three Months						Six Months
	2023		2022		$ Change		2023		2022		$ Change
Operating revenues	$	667	$	676	$	(9)	$	1,558	$	1,451	$	107
Energy purchases	204		218		(14)		562		474		88
Other operation and maintenance	141		128		13		303		288		15
Depreciation	99		99		—		198		197		1
Taxes, other than income	30		32		(2)		74		69		5
Total operating expenses	474		477		(3)		1,137		1,028		109
Other Income (Expense) - net	9		9		—		21		17		4
Interest Expense	54		40		14		111		79		32
Income Taxes	38		44		(6)		83		94		(11)
Net Income	110		124		(14)		248		267		(19)
Less: Special Items	(7)		—		(7)		(6)		—		(6)
Earnings from Ongoing Operations	$	117	$	124	$	(7)	$	254	$	267	$	(13)

The following after-tax gains (losses), which management considers special items, impacted the Pennsylvania Regulated segment's results and are excluded from Earnings from Ongoing Operations during the periods ended June 30.

	Income Statement Line Item	Three Months				Six Months
		2023		2022		2023		2022
PA tax rate change (a)	Income Taxes	$	—	$	—	$	1	$	—
PPL Electric billing issue, net of tax of $2, $2 (b)	Other operation and maintenance	(6)		—		(6)		—
PPL Electric billing issue, net of tax of $0, $0 (b)	Other Income (Expense) - net	(1)		—		(1)		—
Total Special Items		$	(7)	$	—	$	(6)	$	—

(a)Impact of Pennsylvania state tax reform. See Note 5 to the Financial Statements for additional information.

(b)Certain costs related to billing issues. See Note 6 to the Financial Statements for additional information.

The changes in the components of the Pennsylvania Regulated segment's results between these periods are due to the factors set forth below, which exclude the items that management considers special.

•Lower operating revenues for the three month period primarily due to $18 million in lower distribution volumes primarily due to weather and $15 million of lower PLR, partially offset by $13 million of higher distribution prices and $9 million of higher transmission formula rate impacts.

•Higher operating revenues for the six month period primarily due to $98 million of higher PLR primarily due to higher energy prices and higher PLR customers, partially offset by lower customer volumes due to weather, $40 million of higher distribution prices, partially offset by $47 million of lower distribution volumes primarily due to weather and $17 million of transmission formula rate impacts.

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•Lower energy purchases for the three month period primarily due to lower PLR volumes of $52 million, partially offset by higher PLR prices of $39 million.

•Higher energy purchases for the six month period primarily due to higher PLR prices of $161 million, partially offset by lower PLR volumes of $77 million.

•Higher interest expense for the three and six month periods primarily due to increased borrowings.

Rhode Island Regulated Segment

The Rhode Island Regulated segment consists primarily of the regulated electricity transmission and distribution operations and regulated distribution and sale of natural gas conducted by RIE.

Net Income and Earnings from Ongoing Operations for the periods ended June 30 include the following results.

	Three Months						Six Months
	2023		2022		$ Change (a)		2023		2022		$ Change (a)
Operating revenues	$	377	$	128	$	249	$	942	$	128	$	814
Energy purchases	108		38		70		394		38		356
Other operation and maintenance	158		93		65		278		93		185
Depreciation	40		15		25		79		15		64
Taxes, other than income	36		14		22		80		14		66
Total operating expenses	342		160		182		831		160		671
Other Income (Expense) - net	(6)		2		(8)		4		2		2
Interest Expense	20		7		13		39		7		32
Income Taxes	(1)		(8)		7		12		(8)		20
Net Income	10		(29)		39		64		(29)		93
Less: Special Items	(13)		(38)		25		(30)		(38)		8
Earnings from Ongoing Operations	$	23	$	9	$	14	$	94	$	9	$	85

(a)Primarily due to prior periods only including activity from the acquisition date on May 25, 2022.

The following after-tax gains (losses), which management considers special items, impacted the Rhode Island Regulated segment's results and are excluded from Earnings from Ongoing Operations during the periods ended June 30.

	Income Statement Line Item	Three Months				Six Months
		2023		2022		2023		2022
Acquisition integration, net of tax of $5, $10, $8, $10 (a)	Other operation and maintenance	$	(13)	$	(39)	$	(30)	$	(39)
Acquisition integration, net of tax of $0, $0 (a)	Other Income and (Expense) - net	—		1		—		1
Total Special Items		$	(13)	$	(38)	$	(30)	$	(38)

(a)Includes costs incurred primarily related to certain TSA costs for IT systems that will not be part of PPL’s ongoing operations. 2022 also includes costs for certain commitments made during the acquisition process.

Reconciliation of Earnings from Ongoing Operations

The following tables contain after-tax gains (losses), in total, which management considers special items, that are excluded from Earnings from Ongoing Operations and a reconciliation to PPL's "Net Income" for the periods ended June 30.

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	2023 Three Months
	KY Regulated		PA Regulated		RI Regulated		Corporate and Other		Total
Net Income	$	91	$	110	$	10	$	(99)	$	112
Less: Special Items (expense) benefit:
Talen litigation costs, net of tax of $1 (a)	—		—		—		(2)		(2)
Strategic corporate initiatives, net of tax of $1 (b)	—		—		—		(3)		(3)
Acquisition integration, net of tax of $3, $15 (c)	—		—		(13)		(60)		(73)
PPL Electric billing issue, net of tax of $2	—		(7)		—		—		(7)
FERC transmission credit refund, net of tax of $2	(5)		—		—		—		(5)
Other non-recurring charges, net of tax of $0 (f)	—		—		—		(13)		(13)
Total Special Items	(5)		(7)		(13)		(78)		(103)
Earnings from Ongoing Operations	$	96	$	117	$	23	$	(21)	$	215
	2022 Three Months
	KY Regulated (e)		PA Regulated		RI Regulated		Corporate and Other (e)		Total
Net Income	$	112	$	124	$	(29)	$	(88)	$	119
Less: Special Items (expense) benefit:
Talen litigation costs, net of tax of ($2) (a)	—		—		—		9		9
Strategic corporate initiatives, net of tax of $1, $3 (b)	(2)		—		—		(11)		(13)
Acquisition integration, net of tax of $10, $16 (c)	—		—		(38)		(61)		(99)
Total Special Items	(2)		—		(38)		(63)		(103)
Earnings from Ongoing Operations	$	114	$	124	$	9	$	(25)	$	222
	2023 Six Months
	KY Regulated		PA Regulated		RI Regulated		Corporate and Other		Total
Net Income	$	257	$	248	$	64	$	(172)	$	397
Less: Special Items (expense) benefit:
Talen litigation costs, net of tax of $1 (a)	—		—		—		(3)		(3)
Strategic corporate initiatives, net of tax of $0, $1 (b)	(1)		—		—		(4)		(5)
Acquisition integration, net of tax of $8, $27 (c)	—		—		(30)		(104)		(134)
PA tax rate change	—		1		—		—		1
Sale of Safari Holdings, net of tax of $2 (d)	—		—		—		(4)		(4)
PPL Electric billing issue, net of tax of $2	—		(7)		—		—		(7)
FERC transmission credit refund, net of tax of $2	(5)		—		—		—		(5)
Other non-recurring charges, net of tax of $0 (f)	—		—		—		(13)		(13)
Total Special Items	(6)		(6)		(30)		(128)		(170)
Earnings from Ongoing Operations	$	263	$	254	$	94	$	(44)	$	567
	2022 Six Months
	KY Regulated (e)		PA Regulated		RI Regulated		Corporate and Other (e)		Total
Net Income	$	301	$	267	$	(29)	$	(147)	$	392
Less: Special Items (expense) benefit:
Talen litigation costs, net of tax of ($1) (a)	—		—		—		5		5
Strategic corporate initiatives, net of tax of $2, $4 (b)	(6)		—		—		(15)		(21)
Acquisition integration, net of tax of $10, $22 (c)	—		—		(38)		(82)		(120)
Solar panel impairment, net of tax of $0	—		—		—		1		1
Total Special Items	(6)		—		(38)		(91)		(135)
Earnings from Ongoing Operations	$	307	$	267	$	9	$	(56)	$	527

(a)PPL incurred legal expenses related to litigation with its former affiliate, Talen Montana. See Note 10 to the Financial Statements for additional information.

(b)Costs incurred for 2023 includes corporate centralization and other strategic efforts. Costs incurred for 2022 primarily related to the acquisition of RIE and corporate centralization efforts.

(c)Corporate and Other primarily includes integration and related costs associated with the acquisition of RIE.

(d)Final closing adjustments related to the sale of Safari Holdings. See Note 8 to the Financial Statements for additional information.

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(e)The financing activity of LKE is presented in Corporate and Other beginning on January 1, 2023. Prior periods have been adjusted to reflect this change.

(f)Certain expenses related to distributed energy investments.

PPL Electric: Statement of Income Analysis

Statement of Income Analysis

Net income for the periods ended June 30 includes the following results.

	Three Months						Six Months
	2023		2022		$ Change		2023		2022		$ Change
Operating Revenues	$	667	$	676	$	(9)	$	1,558	$	1,451	$	107
Operating Expenses
Operation
Energy purchases	204		218		(14)		562		474		88
Other operation and maintenance	141		128		13		303		288		15
Depreciation	99		99		—		198		197		1
Taxes, other than income	30		32		(2)		74		69		5
Total Operating Expenses	474		477		(3)		1,137		1,028		109
Other Income (Expense) - net	9		7		2		21		13		8
Interest Income from Affiliate	—		2		(2)		—		4		(4)
Interest Expense	54		40		14		111		79		32
Income Taxes	38		44		(6)		83		94		(11)
Net Income	$	110	$	124	$	(14)	$	248	$	267	$	(19)

Operating Revenues

The increase (decrease) in operating revenues was due to:

	Three Months		Six Months
Distribution price (a)	$	13	$	40
Distribution volume (b)	(18)		(47)
PLR (c)	(15)		98
Transmission formula rate (d)	9		17
Other	2		(1)
Total	$	(9)	$	107

(a)The increases were primarily due to reconcilable cost recovery mechanisms approved by the PAPUC.

(b)The decreases were primarily due to lower volumes due to weather in 2023.

(c)The increase for the six month period was primarily the result of higher energy prices and more PLR customers, partially offset by lower customer volumes due to weather.

(d)The increases were primarily due to the point to point border rate settlement variance and returns on additional transmission capital investments, partially offset by a lower PPL zonal peak load billing factor in 2023.

Energy Purchases

Energy purchases decreased $14 million for the three months ended June 30, 2023 compared with 2022. This decrease was primarily due to lower PLR volumes of $52 million, partially offset by higher PLR prices of $39 million.

Energy purchases increased $88 million for the six months ended June 30, 2023 compared with 2022. This increase was primarily due to higher PLR prices of $161 million, partially offset by lower PLR volumes of $77 million.

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Other Operation and Maintenance

The increase (decrease) in other operation and maintenance was due to:

	Three Months		Six Months
Support costs	$	(5)	$	(8)
IT cloud amortization costs	7		13
Vegetation management costs	(3)		(4)
Storm costs	—		(3)
Operation costs	8		8
Bad debts	7		11
Other	(1)		(2)
Total	$	13	$	15

Interest Expense

Interest expense increased $14 million and $32 million for the three and six months ended June 30, 2023 compared with the corresponding periods in 2022, primarily due to increased borrowings.

LG&E: Statement of Income Analysis

Statement of Income Analysis

Net income for the periods ended June 30 includes the following results.

	Three Months						Six Months
	2023		2022		$ Change		2023		2022		$ Change
Operating Revenues
Retail and wholesale	$	347	$	399	$	(52)	$	808	$	880	$	(72)
Electric revenue from affiliate	8		11		(3)		21		23		(2)
Total Operating Revenues	355		410		(55)		829		903		(74)
Operating Expenses
Operation
Fuel	68		90		(22)		147		171		(24)
Energy purchases	22		43		(21)		106		134		(28)
Energy purchases from affiliate	2		7		(5)		3		9		(6)
Other operation and maintenance	93		103		(10)		184		203		(19)
Depreciation	76		75		1		151		149		2
Taxes, other than income	12		12		—		24		24		—
Total Operating Expenses	273		330		(57)		615		690		(75)
Other Income (Expense) - net	—		4		(4)		2		3		(1)
Interest Expense	26		21		5		51		41		10
Income Taxes	11		9		2		34		28		6
Net Income	$	45	$	54	$	(9)	$	131	$	147	$	(16)

Operating Revenues

The increase (decrease) in operating revenues was due to:

	Three Months		Six Months
Fuel and other energy prices (a)	$	(33)	$	(21)
Volumes (b)	(30)		(74)
Economic relief billing credit, net of amortization of $0	6		12
Other	2		9
Total	$	(55)	$	(74)

(a)The decreases were primarily due to lower recoveries of fuel and energy purchases due to lower commodity costs.

(b)The decreases were primarily due to weather.

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Fuel

Fuel decreased $22 million for the three months ended June 30, 2023 compared with 2022, due to a $13 million decrease in commodity costs and a $9 million decrease in volumes primarily due to weather.

Fuel decreased $24 million for the six months ended June 30, 2023 compared with 2022, due to a $14 million decrease in volumes primarily due to weather and an $11 million decrease in commodity costs.

Energy Purchases

Energy purchases decreased $21 million for the three months ended June 30, 2023 compared with 2022, primarily due to a decrease in commodity costs.

Energy purchases decreased $28 million for the six months ended June 30, 2023 compared with 2022, due to a $20 million decrease in volumes primarily due to weather and an $8 million decrease in commodity costs.

Energy Purchases from Affiliate

Energy purchases from affiliate decreased $5 million for the three months ended June 30, 2023 compared with 2022, primarily due to a $3 million decrease in commodity costs and a $2 million decrease in volumes.

Other Operation and Maintenance

The increase (decrease) in other operation and maintenance was due to:

	Three Months		Six Months
Plant operations and maintenance expense	$	(9)	$	(12)
Transmission credits	3		3
Generation outage expenses	(1)		(2)
Vegetation management expenses	(2)		(4)
Other	(1)		(4)
Total	$	(10)	$	(19)

Interest Expense

Interest expense increased $5 million and $10 million for the three and six months ended June 30, 2023 compared with the corresponding periods in 2022, primarily due to increased borrowings.

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KU: Statement of Income Analysis

Statement of Income Analysis

Net income for the periods ended June 30 includes the following results.

	Three Months						Six Months
	2023		2022		$ Change		2023		2022		$ Change
Operating Revenues
Retail and wholesale	$	433	$	484	$	(51)	$	931	$	1,007	$	(76)
Electric revenue from affiliate	2		7		(5)		3		9		(6)
Total Operating Revenues	435		491		(56)		934		1,016		(82)
Operating Expenses
Operation
Fuel	99		139		(40)		221		270		(49)
Energy purchases	6		7		(1)		12		12		—
Energy purchases from affiliate	8		11		(3)		21		23		(2)
Other operation and maintenance	117		120		(3)		226		233		(7)
Depreciation	98		98		—		196		193		3
Taxes, other than income	12		11		1		22		22		—
Total Operating Expenses	340		386		(46)		698		753		(55)
Other Income (Expense) - net	3		4		(1)		5		4		1
Interest Expense	33		28		5		66		55		11
Interest Expense with Affiliate	1		—		1		1		—		1
Income Taxes	13		15		(2)		35		39		(4)
Net Income	$	51	$	66	$	(15)	$	139	$	173	$	(34)

Operating Revenues

The increase (decrease) in operating revenues was due to:

	Three Months		Six Months
Fuel and other energy prices (a)	$	(27)	$	(18)
Economic relief billing credit, net of amortization of $0	3		5
Volumes (b)	(36)		(81)
Other	4		12
Total	$	(56)	$	(82)

(a)The decreases were primarily due to lower recoveries of fuel and energy purchases due to lower commodity costs.

(b)The decreases were primarily due to weather.

Fuel

Fuel decreased $40 million for the three months ended June 30, 2023 compared with 2022, due to a $27 million decrease in commodity costs and a $14 million decrease in volumes primarily due to weather.

Fuel decreased $49 million for the six months ended June 30, 2023 compared with 2022, due to a $29 million decrease in volumes primarily due to weather and a $20 million decrease in commodity costs.

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Other Operation and Maintenance

The increase (decrease) in other operation and maintenance was due to:

	Three Months		Six Months
Transmission credits	$	7	$	7
Generation outage expenses	(4)		(6)
Vegetation management expenses	(2)		(5)
Other	(4)		(3)
Total	$	(3)	$	(7)

Interest Expense

Interest expense increased $5 million and $11 million for the three and six months ended June 30, 2023 compared with the corresponding periods in 2022, primarily due to increased borrowings.

Financial Condition

The remainder of this Item 2 in this Form 10-Q is presented on a combined basis, providing information, as applicable, for all Registrants.

Liquidity and Capital Resources

(All Registrants)

The Registrants had the following at:

	PPL		PPL Electric		LG&E		KU
June 30, 2023
Cash and cash equivalents	$	326	$	26	$	7	$	9
Short-term debt	243		130		21		92
Long-term debt due within one year	91		90		—		—
Notes payable to affiliates			—		—		8
December 31, 2022
Cash and cash equivalents	$	356	$	25	$	93	$	21
Short-term debt	985		145		179		101
Long-term debt due within one year	354		340		—		13
Notes payable to affiliates			—		—		—

(PPL)

The Statements of Cash Flows separately report the cash flows of discontinued operations. The "Operating Activities", "Investing Activities" and "Financing Activities" sections below include only the cash flows of continuing operations.

(All Registrants)

Net cash provided by (used in) operating, investing and financing activities for the six month periods ended June 30, and the changes between periods, were as follows.

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	PPL		PPL Electric		LG&E		KU
2023
Operating activities	$	842	$	236	$	358	$	298
Investing activities	(1,096)		(398)		(194)		(299)
Financing activities	224		163		(250)		(11)
2022
Operating activities	$	979	$	355	$	317	$	332
Investing activities	(4,683)		(117)		(183)		(273)
Financing activities	469		(230)		(125)		(55)
Change - Cash Provided (Used)
Operating activities	$	(137)	$	(119)	$	41	$	(34)
Investing activities	3,587		(281)		(11)		(26)
Financing activities	(245)		393		(125)		44

Operating Activities

The components of the change in cash provided by (used in) operating activities for the six months ended June 30, 2023 compared with 2022 were as follows.

	PPL		PPL Electric		LG&E		KU
Change - Cash Provided (Used)
Net income	$	5	$	(19)	$	(16)	$	(34)
Non-cash components	93		(10)		12		8
Working capital	(132)		(92)		49		11
Defined benefit plan funding	—		(1)		2		1
Other operating activities	(103)		3		(6)		(20)
Total	$	(137)	$	(119)	$	41	$	(34)

(PPL)

PPL's cash provided by operating activities in 2023 decreased $137 million compared with 2022.

•Net income increased $5 million between the periods and included an increase in non-cash charges of $93 million. The increase in non-cash charges was primarily due to an increase in depreciation (primarily due to the acquisition of RIE) and an increase in deferred income taxes and investment tax credits (primarily due to the acquisition of RIE), partially offset by an increase in defined benefit plans income (primarily due to a higher expected return).

•The $132 million decrease in cash from changes in working capital was primarily due to a decrease in accounts payable (primarily due to timing of payments), a decrease in counterparty collateral (due to collateral requirements for energy pricing in the previous year) and an increase in fuel, materials and supplies (primarily due to weather), partially offset by an increase in regulatory liabilities (primarily due to prior years' refunds to customers related to the transmission formula rate return on equity reduction) and a decrease in unbilled revenues and accounts receivable (primarily due to weather).

•The $103 million decrease in cash provided by other operating activities was driven primarily by a decrease in regulatory liabilities (primarily due to the acquisition of RIE).

(PPL Electric)

PPL Electric's cash provided by operating activities in 2023 decreased $119 million compared with 2022.

•Net income decreased $19 million between the periods and included a decrease in non-cash components of $10 million. The decrease in non-cash components was primarily due to a decrease in deferred income taxes and investment tax credits (primarily related to a change in state tax rates) and an increase in defined benefit plan income (primarily due to a higher expected return), partially offset by an increase in amortization expense (primarily due an increase in IT projects placed into service).

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•The $92 million decrease in cash from changes in working capital was primarily due to an increase in accounts receivable (primarily due to pricing), a decrease in accounts payable (primarily due to timing of payments), a decrease in counterparty collateral (due to collateral requirements for energy pricing in the previous year) and an increase regulatory assets (primarily due to a decrease in rate recoveries driven by increased energy prices), partially offset by a decrease in unbilled revenue (primarily due to weather), and an increase in regulatory liabilities (primarily due to prior years' refunds to customers related to the transmission formula rate return on equity reduction).

•The $3 million increase in cash provided by other operating activities was driven primarily by other assets (primarily related to an increase in costs associated with work optimization and management projects).

(LG&E)

LG&E's cash provided by operating activities in 2023 increased $41 million compared with 2022.

•Net income decreased $16 million between the periods and included an increase in non-cash components of $12 million. The increase in non-cash components was primarily due to an increase in amortization expense (primarily due to the expiration of the economic relief billing credit in June 2022).

•The $49 million increase in cash from changes in working capital was primarily due to a decrease in accounts receivable and unbilled revenues (primarily due to weather), a decrease in accounts receivable from affiliates (primarily due to timing of payments) and a decrease in net regulatory assets (primarily due to the timing of rate recovery mechanisms), partially offset by a decrease in accounts payable, taxes payable and other current liabilities (primarily due to timing of payments).

•The $6 million decrease in cash provided by other operating activities was driven by an increase in other assets (primarily related to deferred storm costs recorded as noncurrent regulatory assets).

(KU)

KU's cash provided by operating activities in 2023 decreased $34 million compared with 2022.

•Net income decreased $34 million between the periods and included an increase in non-cash components of $8 million. The increase in non-cash components was primarily due to an increase in amortization expense (primarily due to the expiration of the economic relief billing credit in June 2022).

•The $11 million increase in cash from changes in working capital was primarily due to a decrease in accounts receivable and unbilled revenues (primarily due to weather) and a decrease in net regulatory assets (primarily due to the timing of rate recovery mechanisms), partially offset by an increase in fuel, materials and supplies (primarily due to weather) and a decrease in accounts payable, accounts payable to affiliates and taxes payable (primarily due to timing of payments).

•The $20 million decrease in cash provided by other operating activities was driven by an increase in other assets (primarily related to deferred storm costs recorded as noncurrent regulatory assets).

Investing Activities

(All Registrants)

The components of the change in cash provided by (used in) investing activities for the six months ended June 30, 2023 compared with 2022 were as follows.

	PPL		PPL Electric		LG&E		KU
Change - Cash Provided (Used)
Expenditures for PP&E	$	(81)	$	56	$	(3)	$	(26)
Acquisition of Narragansett Electric, net of cash acquired	3,674		—		—		—
Notes receivable from affiliate	—		(333)		(8)		—
Other investing activities	(6)		(4)		—		—
Total	$	3,587	$	(281)	$	(11)	$	(26)

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For PPL, the increase in expenditures for PP&E was due to project expenditures at RIE and an increase in project expenditures at LG&E and KU, offset by lower project expenditures at PPL Electric. The decrease in expenditures at PPL Electric was primarily due to a reduction in transmission capital spending projects. The increase in expenditures at KU was primarily due to higher spending on various projects that are not individually significant.

For PPL Electric, the change in "Notes receivable from affiliate" activity resulted from payments received on a short-term note between affiliates in 2022, issued to support general corporate purposes. For LG&E, the change in "Notes receivable from affiliate" activity resulted from funds issued on a short-term note between affiliates in 2023 to support general corporate purposes. See Note 11 to the Financial Statements for further discussion of intercompany borrowings.

Financing Activities

(All Registrants)

The components of the change in cash provided by (used in) financing activities for the six months ended June 30, 2023 compared with 2022 were as follows.

	PPL		PPL Electric		LG&E		KU
Change - Cash Provided (Used)
Debt issuance/retirement, net	$	1,364	$	179	$	99	$	86
Dividends	105		2		49		67
Capital contributions/distributions, net	—		240		(110)		(60)
Change in short-term debt, net	(1,661)		(15)		(483)		(347)
Net increase (decrease) in notes payable with affiliate	—		—		324		302
Other financing activities	(53)		(13)		(4)		(4)
Total	$	(245)	$	393	$	(125)	$	44

See Note 7 to the Financial Statements in this Form 10-Q for information on 2023 short-term and long-term debt activity, equity transactions and PPL dividends. See Note 8 to the Financial Statements in the Registrants' 2022 Form 10-K for information on 2022 activity.

Credit Facilities

The Registrants maintain credit facilities to enhance liquidity, provide credit support and provide a backstop to commercial paper programs. Amounts borrowed under these credit facilities are reflected in "Short-term debt" on the Balance Sheets. At June 30, 2023, the total committed borrowing capacity under credit facilities and the borrowings under these facilities were:

External 

	Committed Capacity		Borrowed		Letters of Credit and Commercial Paper Issued		Unused Capacity
PPL Capital Funding Credit Facilities (a)	$	1,350	$	—	$	—	$	1,350
PPL Electric Credit Facility	650		—		131		519
LG&E Credit Facilities	500		—		21		479
KU Credit Facilities	400		—		92		308
Total Credit Facilities (b)	$	2,900	$	—	$	244	$	2,656

(a)Includes a syndicated credit facility with a $250 million borrowing sublimit for RIE and a $1 billion sublimit for PPL Capital Funding. RIE’s borrowing sublimit is adjustable, at the borrowers’ option, from $0 to $600 million, with the remaining balance of the $1.25 billion available under the facility allocated to PPL Capital Funding.

(b)The commitments under the credit facilities are provided by a diverse bank group, with no one bank and its affiliates providing an aggregate commitment of more than the following percentages of the total committed capacity: PPL - 9%, PPL Electric - 7%, LG&E - 7% and KU - 7%.

See Note 7 to the Financial Statements for further discussion of the Registrants' credit facilities.

85

Intercompany (LG&E and KU)

	Committed Capacity		Borrowed		Commercial Paper Issued		Unused Capacity
LG&E Money Pool (a)	$	750	$	—	$	21	$	729
KU Money Pool (a)	650		8		92		550

(a)LG&E and KU participate in an intercompany money pool agreement whereby LKE and/or KU make available to LG&E, and LKE and/or LG&E make available to KU funds up to the difference between LG&E's and KU's FERC borrowing limit and LG&E's and KU's commercial paper issued, at an interest rate based on the lower of a market index of commercial paper issues and two additional rate options based on SOFR.

See Note 11 to the Financial Statements for further discussion of intercompany credit facilities.

Commercial Paper (All Registrants)

The Registrants, and PPL Capital Funding and RIE, maintain commercial paper programs to provide an additional financing source to fund short-term liquidity needs, as necessary. Commercial paper issuances, included in "Short-term debt" on the Balance Sheets, are supported by the respective Registrant's credit facility, with PPL Capital Funding and RIE’s issuances supported by PPL Capital Funding’s syndicated credit facility. The following commercial paper programs were in place at June 30, 2023:

	Capacity		Commercial Paper Issuances		Unused Capacity
PPL Capital Funding (a)	$	1,350	$	—	$	1,350
Rhode Island Energy (a)	400		—		400
PPL Electric	650		130		520
LG&E	500		21		479
KU	400		92		308
Total PPL	$	3,300	$	243	$	3,057

(a)Issuances under the PPL Capital Funding and RIE commercial paper programs are supported by the PPL Capital Funding syndicated credit facility, which has a total capacity of $1.25 billion, currently with a $250 million borrowing sublimit for RIE and a $1 billion sublimit for PPL Capital Funding. RIE’s borrowing sublimit is adjustable, at the borrowers’ option, from $0 to $600 million, with the remaining balance of the $1.25 billion available under the facility allocated to PPL Capital Funding.

Long-term Debt (All Registrants)

See Note 7 to the Financial Statements for information regarding the Registrants’ long-term debt activities.

Forecasted Uses of Cash (PPL)

Common Stock Dividends

In May 2023, PPL declared a quarterly common stock dividend, payable July 3, 2023, of 24.0 cents per share. Future dividends, declared at the discretion of the Board of Directors, will depend upon future earnings, cash flows, financial and legal requirements and other factors.

Rating Agency Actions

(All Registrants)

Moody's and S&P periodically review the credit ratings of the debt of the Registrants and their subsidiaries. Based on their respective independent reviews, the rating agencies may make certain ratings revisions or ratings affirmations.

A credit rating reflects an assessment by the rating agency of the creditworthiness associated with an issuer and particular securities that it issues. The credit ratings of the Registrants and their subsidiaries are based on information provided by the Registrants and other sources. The ratings of Moody's and S&P are not a recommendation to buy, sell or hold any securities of the Registrants or their subsidiaries. Such ratings may be subject to revisions or withdrawal by the agencies at any time and should be evaluated independently of each other and any other rating that may be assigned to the securities.

86

The credit ratings of the Registrants and their subsidiaries affect their liquidity, access to capital markets and cost of borrowing under their credit facilities. A downgrade in the Registrants' or their subsidiaries' credit ratings could result in higher borrowing costs and reduced access to capital markets. The Registrants and their subsidiaries have no credit rating triggers that would result in the reduction of access to capital markets or the acceleration of maturity dates of outstanding debt.

The rating agencies have taken the following actions related to the Registrants and their subsidiaries.

(PPL)

In June 2023, Moody’s assigned RIE's commercial paper a Short-Term Rating of P-2.

In June 2023, S&P assigned RIE's commercial paper a Short-Term Rating of A-2.

Ratings Triggers

(PPL, LG&E and KU)

Various derivative and non-derivative contracts, including contracts for the sale and purchase of electricity and fuel, commodity transportation and storage, and interest rate instruments, contain provisions that require the posting of additional collateral or permit the counterparty to terminate the contract, if PPL's, LG&E's or KU's or their subsidiaries' credit rating, as applicable, were to fall below investment grade. See Note 14 to the Financial Statements for a discussion of "Credit Risk-Related Contingent Features," including a discussion of the potential additional collateral requirements for PPL for derivative contracts in a net liability position at June 30, 2023.

(All Registrants)

For additional information on the Registrants' liquidity and capital resources, see "Item 7. Combined Management's Discussion and Analysis of Financial Condition and Results of Operations," in the Registrants' 2022 Form 10-K.

Risk Management (All Registrants)

Market Risk

See Notes 13 and 14 to the Financial Statements for information about the Registrants' risk management objectives, valuation techniques and accounting designations.

The forward-looking information presented below provides estimates of what may occur in the future, assuming certain adverse market conditions and model assumptions. Actual future results may differ materially from those presented. These are not precise indicators of expected future losses, but are rather only indicators of possible losses under normal market conditions at a given confidence level.

Interest Rate Risk

PPL and its subsidiaries issue debt to finance their operations, which exposes them to interest rate risk. A variety of financial derivative instruments are utilized to adjust the mix of fixed and floating interest rates in their debt portfolios, adjust the duration of the debt portfolios and lock in benchmark interest rates in anticipation of future financing, when appropriate. Risk limits under PPL's risk management program are designed to balance risk exposure to volatility in interest expense and changes in the fair value of the debt portfolio due to changes in benchmark interest rates. In addition, the interest rate risk of certain subsidiaries is potentially mitigated as a result of the existing regulatory framework or the timing of rate cases.

87

The following interest rate hedges were outstanding at June 30, 2023.

	Exposure Hedged		Fair Value, Net - Asset (Liability) (a)		Effect of a 10% Adverse Movement in Rates (b)		Maturities Ranging Through
PPL and LG&E
Economic hedges
Interest rate swaps (c)	$	64	$	(7)	$	(1)	2033

(a)Includes accrued interest, if applicable.

(b)Effects of adverse movements decrease assets or increase liabilities, as applicable, which could result in an asset becoming a liability. Sensitivities represent a 10% adverse movement in interest rates.

(c)Realized changes in the fair value of such economic hedges are recoverable through regulated rates and any subsequent changes in the fair value of these derivatives are included in regulatory assets or regulatory liabilities.

The Registrants are exposed to a potential increase in interest expense and to changes in the fair value of their debt portfolios. The estimated impact of a 10% adverse movement in interest rates on the fair value of debt at June 30, 2023 is shown below.

	10% Adverse Movement in Rates on Fair Value of Debt
PPL	$	612
PPL Electric	255
LG&E	98
KU	140

Commodity Price Risk

PPL is exposed to commodity price risk through its subsidiaries as described below.

•PPL Electric is required to purchase electricity to fulfill its obligation as a PLR. Potential commodity price risk is mitigated through its PAPUC-approved cost recovery mechanism and full-requirement supply agreements to serve its PLR customers which transfer the risk to energy suppliers.

•LG&E's and KU's rates include certain mechanisms for fuel, fuel-related expenses and energy purchases. In addition, LG&E's rates include a mechanism for natural gas supply costs. These mechanisms generally provide for timely recovery of market price fluctuations associated with these costs.

•RIE utilizes derivative instruments pursuant to its RIPUC-approved plan to manage commodity price risk associated with its natural gas purchases. RIE's commodity price risk management strategy is to reduce fluctuations in firm gas sales prices to its customers. RIE's costs associated with derivatives instruments are recoverable through its RIPUC-approved cost recovery mechanisms. RIE is required to purchase electricity to fulfill its obligation to provide Last Resort Service (LRS). Potential commodity price risk is mitigated through its RIPUC-approved cost recovery mechanisms and full requirements service agreements to serve LRS customers, which transfer the risk to energy suppliers. RIE is required to contract through long-term agreements for clean energy supply under the Rhode Island Renewable Energy Growth program and Long-term Clean Energy Standard. Potential commodity price risk is mitigated through its RIPUC-approved cost recovery mechanisms, which true-up cost differences between contract prices and market prices.

Volumetric Risk

Volumetric risk is the risk related to the changes in volume of retail sales due to weather, economic conditions or other factors. PPL is exposed to volumetric risk through its subsidiaries as described below:

•PPL Electric, LG&E and KU are exposed to volumetric risk on retail sales, mainly due to weather and other economic conditions for which there is limited mitigation between rate cases.

•RIE is exposed to volumetric risk, which is significantly mitigated by regulatory mechanisms. RIE's electric and gas distribution rates both have a revenue decoupling mechanism, which allows for annual adjustments to RIE's delivery rates.

88

Inflation and Supply Chain Related Risk

PPL and its subsidiaries continue to monitor the impact of inflation and supply chain disruptions. PPL and its subsidiaries monitor the cost of fuel, construction, regulatory and environmental compliance costs and other costs. Mechanisms are in place to mitigate the risk of inflationary effects and supply chain disruptions, to the extent possible, but increased costs and supply chain disruptions may directly or indirectly affect our ongoing operations. These mechanisms include pricing strategies, productivity improvements and cost reductions in order to ensure that the Registrants are able to procure the necessary materials and other resources needed to maintain services in a safe and reliable manner, and to grow infrastructure consistent with the capital expenditure plan. For additional information see "Forward-looking Information” at the beginning of this report and “Item 1A. Risk Factors" of the Registrants' 2022 Form 10-K.

Credit Risk

See Notes 13 and14 to the Financial Statements in this Form 10-Q and "Item 7. Combined Management's Discussion and Analysis of Financial Condition and Results of Operations - Financial Condition - Risk Management - Credit Risk" in the Registrants' 2022 Form 10-K for additional information

Related Party Transactions (All Registrants)

The Registrants are not aware of any material ownership interests or operating responsibility by senior management in outside partnerships, including leasing transactions with variable interest entities, or other entities doing business with the Registrants. See Note 11 to the Financial Statements for additional information on related party transactions for PPL Electric, LG&E and KU.

Acquisitions, Development and Divestitures (All Registrants)

The Registrants from time to time evaluate opportunities for potential acquisitions, divestitures and development projects. Development projects are reexamined based on market conditions and other factors to determine whether to proceed with, modify or terminate the projects. Any resulting transactions may impact future financial results. See Note 8 to the Financial Statements for additional information on the share purchase agreement to acquire Narragansett Electric.

Environmental Matters (All Registrants)

Extensive federal, state and local environmental laws and regulations are applicable to the Registrants' air emissions, water discharges and the management of hazardous and solid waste, as well as other aspects of the Registrants' businesses. The costs of compliance or alleged non-compliance cannot be predicted with certainty but could be significant. In addition, costs may increase significantly if the requirements or scope of environmental laws or regulations, or similar rules, are expanded or changed. Costs may take the form of increased capital expenditures or operating and maintenance expenses, monetary fines, penalties or other restrictions. Many of these environmental law considerations are also applicable to the operations of key suppliers, or customers, such as coal producers and industrial power users, and may impact the costs for their products or their demand for the Registrants' services. Increased capital and operating costs are expected to be subject to rate recovery. The Registrants can provide no assurances as to the ultimate outcome of future environmental or rate proceedings before regulatory authorities.

See "Environmental Matters" in Item 1. "Business" in the Registrants' 2022 Form 10-K for information about environmental laws and regulations affecting the Registrants' business. See "Financial Condition - Liquidity and Capital Resources - Forecasted Uses of Cash - Capital Expenditures" in "Item 7. Combined Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Registrants' 2022 Form 10-K for information on projected environmental capital expenditures for 2023 through 2025. See "Legal Matters" in Note 10 to the Financial Statements for a discussion of the more significant environmental claims. See Note 15 to the Financial Statements for information related to the impacts of CCRs on AROs.

The information below represents an update to “Item 1. Business – Environmental Matters” in the Registrants' 2022 Form 10-K.

89

(PPL, LG&E and KU)

NAAQS

In March 2021, the EPA released final revisions to the Cross-State Air Pollution Rule (CSAPR), aimed at ensuring compliance with the 2008 ozone NAAQS and providing for reductions in ozone season nitrogen oxide emissions for 2021 and subsequent years. Additionally, the EPA reversed its previous approval of the Kentucky State Implementation Plan with respect to these requirements. In March 2023, the EPA Administrator released a final Federal Implementation Plan under the Good Neighbor provisions of the Clean Air Act providing for significant additional nitrogen oxide emission reductions for compliance with the revised 2015 ozone NAAQS. The reductions in Kentucky state-wide nitrogen oxide budgets are scheduled to commence in 2023, with the largest reductions planned for 2026, based on the installation time frame for certain selective catalytic reduction controls, subject to future specific allowance calculations. PPL, LG&E and KU are currently assessing the potential impact of the Good Neighbor Plan revisions on operations. The rules provide for reduced availability of NOx allowances that have historically permitted operational flexibility for fossil units and could potentially result in constraints that may require implementation of additional emission controls or accelerate implementation of lower emission generation technologies. Legal challenges to CSAPR and related determinations remain pending. In January 2023, the EPA released a proposed revision to increase the stringency of the current NAAQS for particulate matter. The EPA is continuing review of its previous determinations made in December 2020 to retain the existing NAAQS for ozone without change.

PPL, LG&E, and KU are unable to predict the outcome of pending litigation or future emission reductions that may be required by future federal rules or state implementation actions. Compliance with the NAAQS, CSAPR, Good Neighbor Plan, and related requirements may require installation of additional pollution controls or other compliance actions, inclusive of retirements, the costs of which PPL, LG&E and KU believe would be subject to rate recovery.

Mercury and Air Toxics Standards

In 2012, the EPA issued the Mercury and Air Toxics Standards (MATS) rule requiring reductions in mercury and other hazardous air pollutants from fossil fuel-fired power plants. LG&E and KU installed significant controls to achieve compliance with MATS and other rules. In April 2023, the EPA proposed to increase the stringency of MATS and further reduce emissions of certain hazardous air pollutants by reducing certain particulate matter standards by approximately two-thirds to reflect developments in control technologies. While the exact impact will depend on the provisions adopted in the final rule, PPL, LG&E, and KU do not expect significant operational changes or additional controls. PPL, LG&E, and KU will continue to monitor the ongoing rulemaking process.

Proposed Greenhouse Gas Standards

On May 11, 2023, the EPA released proposed rules under Section 111 of the Clean Air Act to establish performance standards and emissions limits aimed at reducing GHG emissions from certain new, existing, and modified fossil fuel-fired electric generating units (EGUs). The proposed standards would require phased implementation of carbon mitigation technologies including state-of-the-art efficiency requirements, carbon capture and sequestration, low GHG hydrogen co-firing, and natural gas co-firing. New natural gas EGUs would be immediately subject to the stricter efficiency standard. The EPA’s proposed new GHG reduction requirements, if adopted, could potentially require significant additional compliance measures including changes in current operations, installation of capital equipment, and early retirement of certain coal-fired generating units. PPL, LG&E, and KU are unable to predict the precise impact of new GHG reduction requirements until issuance of final rules and resolution of related legal and regulatory proceedings. While the impact of new GHG reduction requirements on operations and financial results of operations could potentially be substantial, the cost of complying with such requirements is expected to be subject to rate recovery.

Waters of the U.S.

On May 25, 2023, the U.S. Supreme Court issued an opinion in Sackett v. EPA holding that the government’s jurisdiction to regulate wetlands under the Clean Water Act extends to wetlands with a continuous surface connection to bodies that are waters of the U.S. By limiting water bodies that fall within the jurisdiction of the Clean Water Act, the decision could reduce the number of projects or the scope of project activities subject to federal permitting for wetlands.

90

New Accounting Guidance (All Registrants)

There has been no new accounting guidance adopted in 2023 and there is no new significant accounting guidance pending adoption as of June 30, 2023.

Application of Critical Accounting Policies (All Registrants)

Financial condition and results of operations are impacted by the methods, assumptions and estimates used in the application of critical accounting policies. The following table summarizes the accounting policies by Registrant that are particularly important to an understanding of the reported financial condition or results of operations and require management to make estimates or other judgments of matters that are inherently uncertain. See "Item 7. Combined Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Registrants' 2022 Form 10-K for a discussion of each critical accounting policy.

		PPL
	PPL	Electric	LG&E	KU
Defined Benefits	X	X	X	X
Income Taxes	X	X	X	X
Regulatory Assets and Liabilities	X	X	X	X
Price Risk Management	X
Goodwill Impairment	X		X	X
AROs			X	X
Revenue Recognition - Unbilled Revenue	X	X	X	X

Following is an update to the critical accounting policies disclosed in PPL's 2022 Form 10-K.

Revenue Recognition - Unbilled Revenues (PPL and PPL Electric)

For PPL Electric, unbilled revenues for a month are typically calculated by multiplying the actual unbilled volumes by the price per tariff. In the first quarter of 2023, PPL Electric estimated deliveries to customers due to a temporary issue. In the second quarter of 2023, the temporary issue was resolved and unbilled volumes resumed being calculated by multiplying the actual unbilled volumes by the price per tariff.

91

PPL Corporation

PPL Electric Utilities Corporation

Louisville Gas and Electric Company

Kentucky Utilities Company

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Reference is made to "Risk Management" in "Item 2. Combined Management's Discussion and Analysis of Financial Condition and Results of Operations."

Item 4. Controls and Procedures

(a) Evaluation of disclosure controls and procedures.

The Registrants' principal executive officers and principal financial officers, based on their evaluation of the Registrants' disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) of the Securities Exchange Act of 1934) have concluded that, as of June 30, 2023, the Registrants' disclosure controls and procedures are effective to ensure that material information relating to the Registrants and their consolidated subsidiaries is recorded, processed, summarized and reported within the time periods specified by the SEC's rules and forms, particularly during the period for which this quarterly report has been prepared. The principal officers have concluded that the disclosure controls and procedures are also effective to ensure that information required to be disclosed in reports filed under the Exchange Act is accumulated and communicated to management, including the principal executive and principal financial officers, to allow for timely decisions regarding required disclosure.

(b) Change in internal controls over financial reporting.

The Registrants' principal executive officers and principal financial officers have concluded that there were no changes in the Registrants' internal controls over financial reporting during the Registrants' second fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrants' internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

For information regarding legal, tax, regulatory, environmental or other administrative proceedings that became reportable events or were pending in the second quarter of 2023 see:

•"Item 3. Legal Proceedings" in each Registrant's 2022 Form 10-K; and

•Notes 5, 6, 8 and 10 to the Financial Statements.

Item 1A. Risk Factors

There have been no material changes in the Registrants' risk factors from those disclosed in "Item 1A. Risk Factors" of the Registrants' 2022 Form 10-K.

Item 4. Mine Safety Disclosures

Not applicable.

92

Item 5. Other Information

Securities Trading Plans of Directors and Executive Officers

During the three months ended June 30, 2023, none of our directors or executive officers adopted, terminated or modified any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement, as such terms are defined in Item 408 of Regulation S-K.

Item 6. Exhibits

The following Exhibits indicated by an asterisk preceding the Exhibit number are filed herewith. The balance of the Exhibits has heretofore been filed with the Commission and pursuant to Rule 12(b)-23 are incorporated herein by reference. Exhibits indicated by a [_] are filed or listed pursuant to Item 601(b)(10)(iii) of Regulation S-K.

Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, for the quarterly period ended June 30, 2023, filed by the following officers for the following companies:
*31(a)	-	PPL Corporation's principal executive officer
*31(b)	-	PPL Corporation's principal financial officer
*31(c)	-	PPL Electric Utilities Corporation's principal executive officer
*31(d)	-	PPL Electric Utilities Corporation's principal financial officer
*31(e)	-	Louisville Gas and Electric Company's principal executive officer
*31(f)	-	Louisville Gas and Electric Company's principal financial officer
*31(g)	-	Kentucky Utilities Company's principal executive officer
*31(h)	-	Kentucky Utilities Company's principal financial officer
Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, for the quarterly period ended June 30, 2023, furnished by the following officers for the following companies:
*32(a)	-	PPL Corporation's principal executive officer and principal financial officer
*32(b)	-	PPL Electric Utilities Corporation's principal executive officer and principal financial officer
*32(c)	-	Louisville Gas and Electric Company's principal executive officer and principal financial officer
*32(d)	-	Kentucky Utilities Company's principal executive officer and principal financial officer
101.INS	-	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	-	XBRL Taxonomy Extension Schema
101.CAL	-	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	-	XBRL Taxonomy Extension Definition Linkbase
101.LAB	-	XBRL Taxonomy Extension Label Linkbase
101.PRE	-	XBRL Taxonomy Extension Presentation Linkbase
104	-	The Cover Page Interactive Data File is formatted as Inline XBRL and contained in Exhibits 101.

93

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized. The signature for each undersigned company shall be deemed to relate only to matters having reference to such company or its subsidiaries.

		PPL Corporation
		(Registrant)
Date:	August 4, 2023	/s/  Marlene C. Beers
		Marlene C. Beers Vice President and Controller
		(Principal Accounting Officer)
		PPL Electric Utilities Corporation
		(Registrant)
Date:	August 4, 2023	/s/  Marlene C. Beers
		Marlene C. Beers Vice President and Controller
		(Principal Accounting and Financial Officer)
		Louisville Gas and Electric Company
		(Registrant)
		Kentucky Utilities Company
		(Registrant)
Date:	August 4, 2023	/s/  Christopher M. Garrett
		Christopher M. Garrett Vice President-Finance and Accounting
		(Principal Accounting and Financial Officer)

94

EX-31.A

Exhibit 31(a)

CERTIFICATION

I, VINCENT SORGI, certify that:

1.I have reviewed this quarterly report on Form 10-Q of PPL Corporation (the "registrant");

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 4, 2023	/s/  Vincent Sorgi
		Vincent Sorgi
		President and Chief Executive Officer
		(Principal Executive Officer)
		PPL Corporation

EX-31.B

Exhibit 31(b)

CERTIFICATION

I, JOSEPH P. BERGSTEIN, JR., certify that:

1.I have reviewed this quarterly report on Form 10-Q of PPL Corporation (the "registrant");

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 4, 2023	/s/  Joseph P. Bergstein, Jr.
		Joseph P. Bergstein, Jr.
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)
		PPL Corporation

EX-31.C

Exhibit 31(c)

CERTIFICATION

I, STEPHANIE R. RAYMOND, certify that:

1.I have reviewed this quarterly report on Form 10-Q of PPL Electric Utilities Corporation (the "registrant");

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 4, 2023	/s/  Stephanie R. Raymond
		Stephanie R. Raymond
		President
		(Principal Executive Officer)
		PPL Electric Utilities Corporation

EX-31.D

Exhibit 31(d)

CERTIFICATION

I, MARLENE C. BEERS, certify that:

1.I have reviewed this quarterly report on Form 10-Q of PPL Electric Utilities Corporation (the "registrant");

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 4, 2023	/s/  Marlene C. Beers
		Marlene C. Beers
		Vice President and Controller
		(Principal Financial Officer)
		PPL Electric Utilities Corporation

EX-31.E

Exhibit 31(e)

CERTIFICATION

I, JOHN R. CROCKETT III, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Louisville Gas and Electric Company (the "registrant");

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 4, 2023	/s/  John R. Crockett III
		John R. Crockett III
		President
		(Principal Executive Officer)
		Louisville Gas and Electric Company

EX-31.F

Exhibit 31(f)

CERTIFICATION

I, CHRISTOPHER M. GARRETT, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Louisville Gas and Electric Company (the "registrant");

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 4, 2023	/s/  Christopher M. Garrett
		Christopher M. Garrett
		Vice President-Finance and Accounting
		(Principal Financial Officer)
		Louisville Gas and Electric Company

EX-31.G

Exhibit 31(g)

CERTIFICATION

I, JOHN R. CROCKETT III, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Kentucky Utilities Company (the "registrant");

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 4, 2023	/s/  John R. Crockett III
		John R. Crockett III
		President
		(Principal Executive Officer)
		Kentucky Utilities Company

EX-31.H

Exhibit 31(h)

CERTIFICATION

I, CHRISTOPHER M. GARRETT, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Kentucky Utilities Company (the "registrant");

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 4, 2023	/s/  Christopher M. Garrett
		Christopher M. Garrett
		Vice President-Finance and Accounting
		(Principal Financial Officer)
		Kentucky Utilities Company

EX-32.A

Exhibit 32(a)

CERTIFICATE PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

FOR PPL CORPORATION'S FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2023

    In connection with the quarterly report on Form 10-Q of PPL Corporation (the "Company") for the quarter ended June 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the "Covered Report"), we, Vincent Sorgi, the Principal Executive Officer of the Company, and Joseph P. Bergstein, Jr., the Principal Financial Officer of the Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, hereby certify that:

•The Covered Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

•The information contained in the Covered Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	August 4, 2023	/s/  Vincent Sorgi
		Vincent Sorgi
		President and Chief Executive Officer
		(Principal Executive Officer)
		PPL Corporation
		/s/  Joseph P. Bergstein, Jr.
		Joseph P. Bergstein, Jr.
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)
		PPL Corporation

    A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.B

Exhibit 32(b)

CERTIFICATE PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

FOR PPL ELECTRIC UTILITIES CORPORATION'S FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2023

    In connection with the quarterly report on Form 10-Q of PPL Electric Utilities Corporation (the "Company") for the quarter ended June 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the "Covered Report"), we, Stephanie R. Raymond, the Principal Executive Officer of the Company, and Marlene C. Beers, the Principal Financial Officer of the Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, hereby certify that:

•The Covered Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

•The information contained in the Covered Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	August 4, 2023	/s/  Stephanie R. Raymond
		Stephanie R. Raymond
		President
		(Principal Executive Officer)
		PPL Electric Utilities Corporation
		/s/  Marlene C. Beers
		Marlene C. Beers
		Vice President and Controller
		(Principal Financial Officer)
		PPL Electric Utilities Corporation

    A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.C

Exhibit 32(c)

CERTIFICATE PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

FOR LOUISVILLE GAS AND ELECTRIC COMPANY'S FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2023

    In connection with the quarterly report on Form 10-Q of Louisville Gas and Electric Company (the "Company") for the quarter ended June 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the "Covered Report"), we, John R. Crockett III, the Principal Executive Officer of the Company, and Christopher M. Garrett, the Principal Financial Officer of the Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, hereby certify that:

•The Covered Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

•The information contained in the Covered Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	August 4, 2023	/s/  John R. Crockett III
		John R. Crockett III
		President
		(Principal Executive Officer)
		Louisville Gas and Electric Company
		/s/  Christopher M. Garrett
		Christopher M. Garrett
		Vice President-Finance and Accounting
		(Principal Financial Officer)
		Louisville Gas and Electric Company

    A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.D

Exhibit 32(d)

CERTIFICATE PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

FOR KENTUCKY UTILITIES COMPANY'S FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2023

    In connection with the quarterly report on Form 10-Q of Kentucky Utilities Company (the "Company") for the quarter ended June 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the "Covered Report"), we, John R. Crockett III, the Principal Executive Officer of the Company, and Christopher M. Garrett, the Principal Financial Officer of the Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, hereby certify that:

•The Covered Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

•The information contained in the Covered Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	August 4, 2023	/s/  John R. Crockett III
		John R. Crockett III
		President
		(Principal Executive Officer)
		Kentucky Utilities Company
		/s/  Christopher M. Garrett
		Christopher M. Garrett
		Vice President-Finance and Accounting
		(Principal Financial Officer)
		Kentucky Utilities Company

    A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2023	Jul. 31, 2023
Document Entity Information [Line Items]
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity File Number	1-11459
Entity Incorporation, State or Country Code	PA
Entity Address, Address Line One	Two North Ninth Street
Entity Address, City or Town	Allentown,
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	18101-1179
City Area Code	(610)
Local Phone Number	774-5151
Document Type	10-Q
Document Period End Date	Jun. 30, 2023
Amendment Flag	false
Entity Registrant Name	PPL Corporation
Entity Tax Identification Number	23-2758192
Entity Central Index Key	0000922224
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		737,088,540
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Document Quarterly Report	true
Document Transition Report	false
Common Stock [Member]
Document Entity Information [Line Items]
Title of 12(b) Security	Common Stock of PPL Corporation
Trading Symbol	PPL
Security Exchange Name	NYSE
2007 Series A Junior Subordinated Notes due 2067 [Member]
Document Entity Information [Line Items]
Title of 12(b) Security	2007 Series A due 2067
Trading Symbol	PPL/67
Security Exchange Name	NYSE
PPL Electric Utilities Corp [Member]
Document Entity Information [Line Items]
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity File Number	1-905
Entity Incorporation, State or Country Code	PA
Entity Address, Address Line One	Two North Ninth Street
Entity Address, City or Town	Allentown,
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	18101-1179
City Area Code	(610)
Local Phone Number	774-5151
Amendment Flag	false
Entity Registrant Name	PPL Electric Utilities Corporation
Entity Tax Identification Number	23-0959590
Entity Central Index Key	0000317187
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		66,368,056
Louisville Gas And Electric Co [Member]
Document Entity Information [Line Items]
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity File Number	1-2893
Entity Incorporation, State or Country Code	KY
Entity Address, Address Line One	220 West Main Street
Entity Address, City or Town	Louisville,
Entity Address, State or Province	KY
Entity Address, Postal Zip Code	40202-1377
City Area Code	(502)
Local Phone Number	627-2000
Amendment Flag	false
Entity Registrant Name	Louisville Gas and Electric Company
Entity Tax Identification Number	61-0264150
Entity Central Index Key	0000060549
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		21,294,223
Kentucky Utilities Co [Member]
Document Entity Information [Line Items]
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity File Number	1-3464
Entity Incorporation, State or Country Code	KY
Entity Incorporation, State or Country Code	VA
Entity Address, Address Line One	One Quality Street
Entity Address, City or Town	Lexington,
Entity Address, State or Province	KY
Entity Address, Postal Zip Code	40507-1462
City Area Code	(502)
Local Phone Number	627-2000
Amendment Flag	false
Entity Registrant Name	Kentucky Utilities Company
Entity Tax Identification Number	61-0247570
Entity Central Index Key	0000055387
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		37,817,878

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Operating Revenues
Operating Revenues		$ 1,823	$ 1,696	$ 4,238	$ 3,478
Operation
Fuel		167	229	368	441
Energy purchases		340	305	1,074	657
Other operation and maintenance		609	560	1,168	993
Depreciation		313	289	626	560
Taxes, other than income		89	70	199	130
Total Operating Expenses		1,518	1,453	3,435	2,781
Operating Income		305	243	803	697
Other Income (Expense) - net		5	26	35	26
Interest Expense		165	118	329	225
Income Taxes		33	32	112	106
Net Income (Loss)		$ 112	$ 119	$ 397	$ 392
Net Income:
Diluted (in dollars per share)		$ 0.15	$ 0.16	$ 0.54	$ 0.53
Weighted-Average Shares of Common Stock Outstanding (in thousands)
Basic (in shares)		737,075	735,977	736,953	735,741
Diluted (in shares)		738,177	736,769	737,938	736,478
Income from Continuing Operations Before Income Taxes		$ 145	$ 151	$ 509	$ 498
Income (Loss) from Continuing Operations After Income Taxes, Basic		$ 0.15	$ 0.16	$ 0.54	$ 0.53
Income (Loss) from Continuing Operations after income taxes, Diluted		$ 0.15	$ 0.16	$ 0.54	$ 0.53
PPL Electric Utilities Corp [Member]
Operating Revenues
Operating Revenues		$ 667	$ 676	$ 1,558	$ 1,451
Operation
Energy purchases		204	218	562	474
Other operation and maintenance		141	128	303	288
Depreciation		99	99	198	197
Taxes, other than income		30	32	74	69
Total Operating Expenses		474	477	1,137	1,028
Operating Income		193	199	421	423
Other Income (Expense) - net		9	7	21	13
Interest Expense		54	40	111	79
Income Taxes		38	44	83	94
Net Income (Loss)	[1]	110	124	248	267
Weighted-Average Shares of Common Stock Outstanding (in thousands)
Income from Continuing Operations Before Income Taxes		148	168	331	361
PPL Electric Utilities Corp [Member] | Related Party
Operation
Interest Income from affiliate		0	2	0	4
Louisville Gas And Electric Co [Member]
Operating Revenues
Operating Revenues		355	410	829	903
Operation
Fuel		68	90	147	171
Energy purchases		22	43	106	134
Energy purchases from affiliate		2	7	3	9
Other operation and maintenance		93	103	184	203
Depreciation		76	75	151	149
Taxes, other than income		12	12	24	24
Total Operating Expenses		273	330	615	690
Operating Income		82	80	214	213
Other Income (Expense) - net		0	4	2	3
Interest Expense		26	21	51	41
Income Taxes		11	9	34	28
Net Income (Loss)	[2]	45	54	131	147
Weighted-Average Shares of Common Stock Outstanding (in thousands)
Income from Continuing Operations Before Income Taxes		56	63	165	175
Louisville Gas And Electric Co [Member] | Related Party
Operating Revenues
Retail and wholesale		8	11	21	23
Louisville Gas And Electric Co [Member] | Nonrelated Party
Operating Revenues
Retail and wholesale		347	399	808	880
Kentucky Utilities Co [Member]
Operating Revenues
Operating Revenues		435	491	934	1,016
Operation
Fuel		99	139	221	270
Energy purchases		6	7	12	12
Energy purchases from affiliate		8	11	21	23
Other operation and maintenance		117	120	226	233
Depreciation		98	98	196	193
Taxes, other than income		12	11	22	22
Total Operating Expenses		340	386	698	753
Operating Income		95	105	236	263
Other Income (Expense) - net		3	4	5	4
Income Taxes		13	15	35	39
Net Income (Loss)	[3]	51	66	139	173
Weighted-Average Shares of Common Stock Outstanding (in thousands)
Income from Continuing Operations Before Income Taxes		64	81	174	212
Kentucky Utilities Co [Member] | Related Party
Operating Revenues
Retail and wholesale		2	7	3	9
Operation
Interest Expense		1	0	1	0
Kentucky Utilities Co [Member] | Nonrelated Party
Operating Revenues
Retail and wholesale		433	484	931	1,007
Operation
Interest Expense		$ 33	$ 28	$ 66	$ 55

[1] Net income equals comprehensive income.

[2] Net income equals comprehensive income.

[3] Net income equals comprehensive income.

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Net income (loss)	$ 112	$ 119	$ 397	$ 392
Amounts arising during the period - gains (losses), net of tax (expense) benefit:
Equity investees' other comprehensive income (loss), net of tax	0	1	1	2
Prior Service Costs, net of tax	0	0	0	(1)
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax [Abstract]
Defined benefit plan, Net actuarial gain (loss), amounts arising during the period, net of tax	(15)	21	(15)	21
Reclassifications from AOCI - (gains) losses, net of tax expense (benefit):
Qualifying derivatives, net of tax	0	0	1	1
Other Comprehensive (Income) Loss, Defined Benefit Plans, after Reclassification Adjustment, after Tax [Abstract]
Defined benefit plans, Prior service costs, net of tax	1	0	1	1
Defined benefit plans, Net actuarial (gain) loss, net of tax	0	6	(1)	9
Total other comprehensive income (loss)	(14)	28	(13)	33
Comprehensive income (loss)	$ 98	$ 147	$ 384	$ 425

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Tax effect of net actuarial (gain) loss arising during period	$ 5	$ (7)	$ 5	$ (7)
Tax effect of qualifying derivatives reclassified from AOCI	(1)	(1)	(1)	(1)
Tax effect of prior service costs reclassified from AOCI	0	0	0	0
Tax effect of net actuarial (gain) loss reclassified from AOCI	1	(2)	1	(3)
Tax effect of equity investee's other comprehensive income (loss)	0	0	0	0
Tax effect of Prior Service Costs	$ 0	$ 0	$ 0	$ 0

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022
Cash Flows from Operating Activities
Net income (loss)		$ 397	$ 392
Depreciation		626	560
Amortization		39	15
Defined benefit plans - (income) expense		(36)	(8)
Deferred income taxes and investment tax credits		107	56
Other		25	45
Change in current assets and current liabilities
Accounts receivable		(1)	(47)
Accounts payable		(209)	166
Unbilled revenues		233	22
Fuel, materials and supplies		(30)	23
Prepayments		(90)	(69)
Taxes payable		(31)	(41)
Regulatory assets and liabilities, net		(57)	(211)
Accrued interest		44	1
Other		(50)	97
Other operating activities
Defined benefit plans - funding		(7)	(7)
Other assets		(97)	(74)
Other liabilities		(21)	59
Net cash provided by operating activities		842	979
Cash Flows from Investing Activities
Expenditures for property, plant and equipment		(1,090)	(1,009)
Acquisition of Narragansett Electric, net of cash acquired		0	(3,674)
Other investing activities		(6)	0
Net cash used in investing activities		(1,096)	(4,683)
Cash Flows from Financing Activities
Issuance of long-term debt		3,127	0
Retirement of long-term debt		(1,763)	0
Payment of common stock dividends		(348)	(453)
Net increase (decrease) in short-term debt		(742)	919
Other financing activities		(50)	3
Net cash provided by financing activities		224	469
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash		(30)	(3,235)
Cash and Cash Equivalents at Beginning of Period		356
Cash, Cash Equivalents and Restricted Cash at Beginning of Period		357	3,572
Cash and Cash Equivalents at End of Period		326
Cash, Cash Equivalents and Restricted Cash at End of Period		327	337
Supplemental Disclosures of Cash Flow Information
Accrued expenditures for property, plant and equipment at June 30,		231	195
PPL Electric Utilities Corp [Member]
Cash Flows from Operating Activities
Net income (loss)	[1]	248	267
Depreciation		198	197
Amortization		18	5
Defined benefit plans - (income) expense		(22)	(11)
Deferred income taxes and investment tax credits		54	67
Other		(9)	(9)
Change in current assets and current liabilities
Accounts receivable		(136)	(55)
Accounts payable		(69)	18
Unbilled revenues		119	8
Fuel, materials and supplies		(21)	(5)
Prepayments		(55)	(52)
Taxes payable		(36)	(23)
Counterparty collateral		0	62
Regulatory assets and liabilities, net		(39)	(73)
Other		16	(9)
Other operating activities
Defined benefit plans - funding		(1)	0
Other assets		(28)	(25)
Other liabilities		(1)	(7)
Net cash provided by operating activities		236	355
Cash Flows from Investing Activities
Expenditures for property, plant and equipment		(395)	(451)
Expenditures for intangible assets		(3)	0
Notes receivable from affiliates		0	333
Other investing activities		0	1
Net cash used in investing activities		(398)	(117)
Cash Flows from Financing Activities
Issuance of long-term debt		1,329	0
Retirement of long-term debt		(1,150)	0
Payment of common stock dividends to parent		(163)	(165)
Net increase (decrease) in short-term debt		(15)	0
Contributions from parent		200	0
Return of capital to parent		(25)	(65)
Debt Issuance Costs		(13)	0
Net cash provided by financing activities		163	(230)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash		1	8
Cash and Cash Equivalents at Beginning of Period		25
Cash, Cash Equivalents and Restricted Cash at Beginning of Period		25	21
Cash and Cash Equivalents at End of Period		26
Cash, Cash Equivalents and Restricted Cash at End of Period		26	29
Supplemental Disclosures of Cash Flow Information
Accrued expenditures for property, plant and equipment at June 30,		124	114
Louisville Gas And Electric Co [Member]
Cash Flows from Operating Activities
Net income (loss)	[2]	131	147
Depreciation		151	149
Amortization		6	(3)
Defined benefit plans - (income) expense		1	(1)
Deferred income taxes and investment tax credits		(5)	(9)
Other		(3)	2
Change in current assets and current liabilities
Accounts receivable		53	19
Accounts receivable from affiliates		19	1
Accounts payable		(50)	15
Increase (Decrease) in Accounts Payable, Related Parties		(6)	(11)
Unbilled revenues		42	8
Fuel, materials and supplies		31	35
Taxes payable		(16)	(7)
Regulatory assets and liabilities, net		31	(16)
Accrued interest		6	0
Other		(16)	1
Other operating activities
Defined benefit plans - funding		0	(2)
Expenditures for asset retirement obligations		(6)	(8)
Other assets		(15)	(2)
Other liabilities		4	(1)
Net cash provided by operating activities		358	317
Cash Flows from Investing Activities
Expenditures for property, plant and equipment		(186)	(183)
Notes receivable from affiliates		(8)	0
Net cash used in investing activities		(194)	(183)
Cash Flows from Financing Activities
Issuance of long-term debt		399	0
Retirement of long-term debt		(300)	0
Increase Decrease In Notes Payable To Affiliates		0	(324)
Payment of common stock dividends to parent		(87)	(136)
Net increase (decrease) in short-term debt		(158)	325
Contributions from parent		20	10
Return of capital to parent		(120)	0
Other financing activities		(4)	0
Net cash provided by financing activities		(250)	(125)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash		(86)	9
Cash and Cash Equivalents at Beginning of Period		93	9
Cash and Cash Equivalents at End of Period		7	18
Supplemental Disclosures of Cash Flow Information
Accrued expenditures for property, plant and equipment at June 30,		39	33
Kentucky Utilities Co [Member]
Cash Flows from Operating Activities
Net income (loss)	[3]	139	173
Depreciation		196	193
Amortization		9	8
Defined benefit plans - (income) expense		(2)	(2)
Deferred income taxes and investment tax credits		(6)	(5)
Other		7	2
Change in current assets and current liabilities
Accounts receivable		24	1
Accounts payable		(30)	18
Increase (Decrease) in Accounts Payable, Related Parties		(22)	(13)
Unbilled revenues		27	(4)
Fuel, materials and supplies		(25)	(5)
Taxes payable		(3)	5
Regulatory assets and liabilities, net		18	(21)
Accrued interest		6	0
Other		(7)	(4)
Other operating activities
Defined benefit plans - funding		0	(1)
Expenditures for asset retirement obligations		(10)	(14)
Other assets		(20)	2
Other liabilities		(3)	(1)
Net cash provided by operating activities		298	332
Cash Flows from Investing Activities
Expenditures for property, plant and equipment		(299)	(273)
Net cash used in investing activities		(299)	(273)
Cash Flows from Financing Activities
Issuance of long-term debt		399	0
Retirement of long-term debt		(313)	0
Increase Decrease In Notes Payable To Affiliates		8	(294)
Payment of common stock dividends to parent		(92)	(159)
Net increase (decrease) in short-term debt		(9)	338
Contributions from parent		54	60
Return of capital to parent		(54)	0
Other financing activities		(4)	0
Net cash provided by financing activities		(11)	(55)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash		(12)	4
Cash and Cash Equivalents at Beginning of Period		21	13
Cash and Cash Equivalents at End of Period		9	17
Supplemental Disclosures of Cash Flow Information
Accrued expenditures for property, plant and equipment at June 30,		$ 51	$ 46

[1] Net income equals comprehensive income.

[2] Net income equals comprehensive income.

[3] Net income equals comprehensive income.

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions		Jun. 30, 2023	Dec. 31, 2022
Assets, Current [Abstract]
Cash and cash equivalents		$ 326	$ 356
Accounts receivable (less reserve:)
Customer		979	896
Other		70	150
Unbilled revenues		322	552
Fuel, materials and supplies		474	443
Prepayments		189	92
Regulatory Assets, Current		331	258
Other current assets		34	77
Total Current Assets		2,725	2,824
Property, Plant and Equipment
Regulated utility plant		37,743	36,961
Less:  accumulated depreciation - regulated utility plant		8,771	8,352
Regulated utility plant, net		28,972	28,609
Non-regulated property, plant and equipment		68	92
Less:  accumulated depreciation - non-regulated property, plant and equipment		22	46
Non-regulated property, plant and equipment, net		46	46
Construction work in progress		1,744	1,583
Property, Plant and Equipment, net		30,762	30,238
Other Noncurrent Assets
Regulatory assets		1,826	1,819
Goodwill		2,247	2,248
Other intangibles		309	313
Other noncurrent assets		427	395
Assets, Noncurrent		4,809	4,775
Total Assets		38,296	37,837
Current Liabilities
Short-term debt		243	985
Long-term debt due within one year		91	354
Accounts payable		975	1,201
Taxes		93	124
Interest		141	97
Dividends		173	166
Regulatory liabilities		280	238
Other current liabilities		509	624
Liabilities, Current, Total		2,505	3,789
Long-term Debt, Unclassified [Abstract]
Long-term Debt		14,481	12,889
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		3,138	3,007
Investment tax credits		115	117
Accrued pension obligations		192	206
Asset retirement obligations		128	138
Regulatory liabilities		3,421	3,412
Other deferred credits and noncurrent liabilities		357	361
Total Deferred Credits and Other Noncurrent Liabilities		7,351	7,241
Commitments and Contingent Liabilities
Equity
Common stock	[1]	8	8
Additional paid-in capital		12,316	12,317
Treasury Stock		(949)	(967)
Earnings reinvested		2,721	2,681
Accumulated other comprehensive loss		(137)	(124)
Total Shareowners' Common Equity		13,959	13,915
Noncontrolling interests		0	3
Total Equity		13,959	13,918
Total Liabilities and Equity		38,296	37,837
PPL Electric Utilities Corp [Member]
Assets, Current [Abstract]
Cash and cash equivalents		26	25
Accounts receivable (less reserve:)
Other		10	12
Unbilled revenues		108	224
Notes Receivable from affiliates		0	0
Fuel, materials and supplies		90	69
Prepayments		96	34
Regulatory Assets, Current		49	13
Other current assets		20	22
Total Current Assets		897	759
Property, Plant and Equipment
Regulated utility plant		15,139	14,794
Less:  accumulated depreciation - regulated utility plant		3,684	3,544
Regulated utility plant, net		11,455	11,250
Construction work in progress		628	593
Property, Plant and Equipment, net		12,083	11,843
Other Noncurrent Assets
Regulatory assets		552	568
Other intangibles		268	269
Other noncurrent assets		129	126
Assets, Noncurrent		949	963
Total Assets		13,929	13,565
Current Liabilities
Short-term debt		130	145
Long-term debt due within one year		90	340
Taxes		0	36
Interest		57	35
Regulatory liabilities		82	85
Other current liabilities		88	86
Liabilities, Current, Total		865	1,223
Long-term Debt, Unclassified [Abstract]
Long-term Debt		4,565	4,146
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		1,568	1,514
Regulatory liabilities		835	820
Other deferred credits and noncurrent liabilities		85	111
Total Deferred Credits and Other Noncurrent Liabilities		2,488	2,445
Commitments and Contingent Liabilities
Equity
Common stock	[2]	364	364
Additional paid-in capital		4,259	4,084
Earnings reinvested		1,388	1,303
Total Equity		6,011	5,751
Total Liabilities and Equity		$ 13,929	$ 13,565
Financing Receivable, after Allowance for Credit Loss, Related and Nonrelated Party Status [Extensible Enumeration]		Related Party	Related Party
PPL Electric Utilities Corp [Member] | Related Party
Accounts receivable (less reserve:)
Customer		$ 10	$ 3
Current Liabilities
Accounts payable		32	16
PPL Electric Utilities Corp [Member] | Nonrelated Party
Accounts receivable (less reserve:)
Customer		488	357
Current Liabilities
Accounts payable		386	480
Louisville Gas And Electric Co [Member]
Assets, Current [Abstract]
Cash and cash equivalents		7	93
Accounts receivable (less reserve:)
Other		16	13
Unbilled revenues		70	112
Notes Receivable from affiliates		8	0
Fuel, materials and supplies		135	166
Prepayments		17	13
Regulatory Assets, Current		4	23
Other current assets		1	2
Total Current Assets		377	616
Property, Plant and Equipment
Regulated utility plant		7,527	7,429
Less:  accumulated depreciation - regulated utility plant		1,443	1,355
Regulated utility plant, net		6,084	6,074
Construction work in progress		294	268
Property, Plant and Equipment, net		6,378	6,342
Other Noncurrent Assets
Regulatory assets		384	373
Goodwill		389	389
Other intangibles		21	24
Other noncurrent assets		70	66
Assets, Noncurrent		864	852
Total Assets		7,619	7,810
Current Liabilities
Short-term debt		21	179
Notes Payable to affiliates			0
Taxes		25	41
Price risk management liabilities current		1	1
Interest		21	15
Current Customer Deposits		33	32
Regulatory liabilities		19	7
Asset Retirement Obligation, Current		14	13
Other current liabilities		36	46
Liabilities, Current, Total		335	559
Long-term Debt, Unclassified [Abstract]
Long-term Debt		2,404	2,307
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		774	771
Investment tax credits		31	31
Asset retirement obligations		64	73
Regulatory liabilities		833	833
Price risk management liabilities		6	6
Other deferred credits and noncurrent liabilities		61	64
Total Deferred Credits and Other Noncurrent Liabilities		1,769	1,778
Commitments and Contingent Liabilities
Equity
Common stock	[3]	424	424
Additional paid-in capital		1,987	2,087
Earnings reinvested		700	655
Total Equity		3,111	3,166
Total Liabilities and Equity		$ 7,619	$ 7,810
Financing Receivable, after Allowance for Credit Loss, Related and Nonrelated Party Status [Extensible Enumeration]		Related Party	Related Party
Notes Payable, Related and Nonrelated Party Status [Extensible Enumeration]			Related Party
Louisville Gas And Electric Co [Member] | Related Party
Accounts receivable (less reserve:)
Customer		$ 17	$ 37
Current Liabilities
Accounts payable		52	60
Louisville Gas And Electric Co [Member] | Nonrelated Party
Accounts receivable (less reserve:)
Customer		102	157
Current Liabilities
Accounts payable		113	165
Kentucky Utilities Co [Member]
Assets, Current [Abstract]
Cash and cash equivalents		9	21
Accounts receivable (less reserve:)
Customer		133	158
Other		13	13
Unbilled revenues		87	114
Fuel, materials and supplies		193	167
Prepayments		16	14
Regulatory Assets, Current		10	32
Other current assets		0	1
Total Current Assets		461	520
Property, Plant and Equipment
Regulated utility plant		9,700	9,515
Less:  accumulated depreciation - regulated utility plant		2,344	2,201
Regulated utility plant, net		7,356	7,314
Construction work in progress		592	522
Property, Plant and Equipment, net		7,948	7,836
Other Noncurrent Assets
Regulatory assets		447	442
Goodwill		607	607
Other intangibles		20	21
Other noncurrent assets		127	116
Assets, Noncurrent		1,201	1,186
Total Assets		9,610	9,542
Current Liabilities
Short-term debt		92	101
Long-term debt due within one year		0	13
Notes Payable to affiliates		8	0
Taxes		23	26
Interest		25	19
Current Customer Deposits		34	33
Regulatory liabilities		2	6
Asset Retirement Obligation, Current		19	26
Other current liabilities		49	51
Liabilities, Current, Total		413	499
Long-term Debt, Unclassified [Abstract]
Long-term Debt		3,003	2,907
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		903	896
Investment tax credits		84	85
Asset retirement obligations		56	56
Regulatory liabilities		1,032	1,029
Other deferred credits and noncurrent liabilities		34	32
Total Deferred Credits and Other Noncurrent Liabilities		2,109	2,098
Commitments and Contingent Liabilities
Equity
Common stock	[4]	308	308
Additional paid-in capital		3,041	3,041
Earnings reinvested		736	689
Total Equity		4,085	4,038
Total Liabilities and Equity		$ 9,610	$ 9,542
Notes Payable, Related and Nonrelated Party Status [Extensible Enumeration]		Related Party	Related Party
Kentucky Utilities Co [Member] | Related Party
Current Liabilities
Accounts payable		$ 75	$ 101
Kentucky Utilities Co [Member] | Nonrelated Party
Current Liabilities
Accounts payable		$ 86	$ 123

[1] 1,560,000 shares authorized, 770,013 shares issued and 737,086 shares outstanding at June 30, 2023. 1,560,000 shares authorized, 770,013 shares issued and 736,487 shares outstanding at December 31, 2022.

[2] 170,000 shares authorized; 66,368 shares issued and outstanding at June 30, 2023 and December 31, 2022.

[3] 75,000 shares authorized; 21,294 shares issued and outstanding at June 30, 2023 and December 31, 2022.

[4] 80,000 shares authorized; 37,818 shares issued and outstanding at June 30, 2023 and December 31, 2022.

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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Receivables, Net, Current [Abstract]
Accounts receivable reserve for doubtful accounts	$ 103	$ 87
Unbilled revenues, reserve	3	6
Reserve for accounts receivable (noncurrent)	$ 1	$ 2
Equity
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock shares authorized (in shares)	1,560,000	1,560,000
Common stock shares issued (in shares)	770,013	770,013
Common stock shares outstanding (in shares)	737,086	736,487
PPL Electric Utilities Corp [Member]
Receivables, Net, Current [Abstract]
Accounts receivable reserve for doubtful accounts	$ 40	$ 28
Unbilled revenues, reserve	2	2
Reserve for accounts receivable (noncurrent)	$ 1	$ 2
Equity
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock shares authorized (in shares)	170,000	170,000
Common stock shares issued (in shares)	66,368	66,368
Common stock shares outstanding (in shares)	66,368	66,368
Louisville Gas And Electric Co [Member]
Receivables, Net, Current [Abstract]
Accounts receivable reserve for doubtful accounts	$ 4	$ 4
Unbilled revenues, reserve	$ 0	$ 0
Equity
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock shares authorized (in shares)	75,000	75,000
Common stock shares issued (in shares)	21,294	21,294
Common stock shares outstanding (in shares)	21,294	21,294
Kentucky Utilities Co [Member]
Receivables, Net, Current [Abstract]
Accounts receivable reserve for doubtful accounts	$ 3	$ 3
Unbilled revenues, reserve	$ 0	$ 0
Equity
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock shares authorized (in shares)	80,000	80,000
Common stock shares issued (in shares)	37,818	37,818
Common stock shares outstanding (in shares)	37,818	37,818

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CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Millions		Total	Common Stock [Member]		Additional Paid-in Capital [Member]	Earnings Reinvested [Member]	Accumulated Other Comprehensive Loss [Member]	Treasury Stock, Common	Noncontrolling Interest	PPL Electric Utilities Corp [Member]		PPL Electric Utilities Corp [Member] Common Stock [Member]		PPL Electric Utilities Corp [Member] Additional Paid-in Capital [Member]	PPL Electric Utilities Corp [Member] Earnings Reinvested [Member]	Louisville Gas And Electric Co [Member]		Louisville Gas And Electric Co [Member] Common Stock [Member]		Louisville Gas And Electric Co [Member] Additional Paid-in Capital [Member]	Louisville Gas And Electric Co [Member] Earnings Reinvested [Member]	Kentucky Utilities Co [Member]		Kentucky Utilities Co [Member] Common Stock [Member]		Kentucky Utilities Co [Member] Additional Paid-in Capital [Member]	Kentucky Utilities Co [Member] Earnings Reinvested [Member]
Total Equity		$ 13,723	$ 8		$ 12,303	$ 2,572	$ (157)	$ (1,003)	$ 0	$ 5,736		$ 364		$ 4,254	$ 1,118	$ 3,079		$ 424		$ 1,997	$ 658	$ 3,928		$ 308		$ 2,957	$ 663
Dividends Declared Per Share of Common Stock (in dollars per share)		$ 0.425
Balance at beginning of period - shares at Dec. 31, 2021			735,112	[1]								66,368	[2]					21,294	[3]					37,818	[4]
Common stock shares issued	[1]		123
Common stock issued		$ 12			12
Stock Issued During Period, Value, Treasury Stock Reissued		27						$ 27
Stock Issued During Period, Shares, Treasury Stock Reissued								922
Stock-based compensation		(2)			(2)
Net income (loss)		392				392				267	[5]				267	147	[6]				147	173	[7]				173
Capital contributions from parent																10				10		60				60
Dividends and dividend equivalents	[8]	(315)				(315)
Dividends declared										(165)					(165)	(136)					(136)	(159)					(159)
Other comprehensive income		33					33
Balance at end of period - shares at Jun. 30, 2022			736,157	[1]								66,368	[2]					21,294	[3]					37,818	[4]
Contributions from parent										0						10						60
Return of Capital to Parent										(65)				(65)
Preferred stock		3
Total Equity		$ 13,865	$ 8		12,299	2,697	(152)	$ (987)	0	5,767		$ 364		4,214	1,189	3,097		$ 424		1,997	676	3,945		$ 308		2,957	680
Dividends Declared Per Share of Common Stock (in dollars per share)		$ 0.225
Balance at beginning of period - shares at Mar. 31, 2022			735,765									66,368	[2]					21,294	[3]					37,818	[4]
Common stock issued		$ 8			8
Stock Issued During Period, Value, Treasury Stock Reissued		11						$ 11
Stock Issued During Period, Shares, Treasury Stock Reissued								392
Stock-based compensation		6			6
Net income (loss)		119				119				124	[5]				124	54	[6]				54	66	[7]				66
Capital contributions from parent																10				10		60				60
Dividends and dividend equivalents		(167)				(167)
Dividends declared										(93)					(93)	(61)					(61)	(69)					(69)
Other comprehensive income		28					28
Balance at end of period - shares at Jun. 30, 2022			736,157	[1]								66,368	[2]					21,294	[3]					37,818	[4]
Return of Capital to Parent										(25)				(25)
Preferred stock		3
Total Equity		13,873	$ 8		12,313	2,649	(124)	$ (976)	3	5,773		$ 364		4,189	1,220	3,100		$ 424		2,007	669	4,002		$ 308		3,017	677
Total Equity		$ 13,918	$ 8		12,317	2,681	(124)	(967)	3	$ 5,751		$ 364		4,084	1,303	$ 3,166		$ 424		2,087	655	$ 4,038		$ 308		3,041	689
Dividends Declared Per Share of Common Stock (in dollars per share)		$ 0.480
Balance at beginning of period - shares at Dec. 31, 2022		736,487	736,487	[1]						66,368		66,368	[2]			21,294		21,294	[3]			37,818		37,818	[4]
Balance at beginning of period at Dec. 31, 2022		$ 13,915
Stock Issued During Period, Value, Treasury Stock Reissued		21			3			$ 18
Stock Issued During Period, Shares, Treasury Stock Reissued								599
Stock-based compensation		(4)			(4)
Net income (loss)		397				397				$ 248	[5]				248	$ 131	[6]				131	$ 139	[7]				139
Capital contributions from parent										200				200						20						54
Dividends and dividend equivalents	[8]	(357)				(357)
Dividends declared										$ (163)					(163)	$ (86)					(86)	$ (92)					(92)
Other comprehensive income		$ (13)					(13)
Balance at end of period - shares at Jun. 30, 2023		737,086	737,086							66,368		66,368	[2]			21,294		21,294	[3]			37,818		37,818	[4]
Balance at end of period at Jun. 30, 2023		$ 13,959
Contributions from parent										$ 200						$ 20						$ 54
Return of Capital to Parent										(25)				(25)						(120)						(54)
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests									(3)
Total Equity		$ 14,036	$ 8		12,310	2,788	(123)	$ (950)	3	6,015		$ 364		4,284	1,367	3,101		$ 424		1,967	710	4,037		$ 308		2,987	742
Dividends Declared Per Share of Common Stock (in dollars per share)		$ 0.240
Balance at beginning of period - shares at Mar. 31, 2023			737,067									66,368	[2]					21,294	[3]					37,818	[4]
Stock Issued During Period, Value, Treasury Stock Reissued		$ 2			1			$ 1
Treasury stock acquired								19
Stock-based compensation		5			5
Net income (loss)		112				112				110	[5]				110	45	[6]				45	51	[7]				51
Capital contributions from parent																20				20		54				54
Dividends and dividend equivalents		(179)				(179)
Dividends declared										$ (89)					(89)	$ (55)					(55)	$ (57)					(57)
Other comprehensive income		$ (14)					(14)
Balance at end of period - shares at Jun. 30, 2023		737,086	737,086							66,368		66,368	[2]			21,294		21,294	[3]			37,818		37,818	[4]
Balance at end of period at Jun. 30, 2023		$ 13,959
Return of Capital to Parent										$ (25)				(25)
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests									(3)
Total Equity		$ 13,959	$ 8		$ 12,316	$ 2,721	$ (137)	$ (949)	$ 0	$ 6,011		$ 364		$ 4,259	$ 1,388	$ 3,111		$ 424		$ 1,987	$ 700	$ 4,085		$ 308		$ 3,041	$ 736

[1] Shares in thousands. Each share entitles the holder to one vote on any question presented at any shareowners' meeting.

[2] Shares in thousands. All common shares of PPL Electric stock are owned by PPL Energy Holdings.

[3] Shares in thousands. All common shares of LG&E stock are owned by LKE.

[4] Shares in thousands. All common shares of KU stock are owned by LKE.

[5] Net income equals comprehensive income.

[6] Net income equals comprehensive income.

[7] Net income equals comprehensive income.

[8] Dividends declared per share of common stock were $0.240 and $0.480 for the three and six months ended June 30, 2023 and $0.225 and $0.425 for the three and six months ended June 30, 2022.

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CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (Parenthetical) - vote	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Vote per share of PPL's common stock	1	1

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Segment and Related Information

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment and Related Information

2. Segment and Related Information

(PPL)

PPL is organized into three segments: Kentucky Regulated, Pennsylvania Regulated and Rhode Island Regulated. PPL's segments are determined by geographic location.

Beginning on January 1, 2023, the Kentucky Regulated segment consists primarily of the regulated electricity generation, transmission and distribution operations conducted by LG&E and KU, as well as LG&E's regulated distribution and sale of natural gas. Prior to January 1, 2023, the Kentucky Regulated segment also included the financing activities of LKE. The financing activity of LKE is presented in "Corporate and Other" beginning on January 1, 2023. Prior periods have been adjusted to reflect this change. As a result, PPL’s segments consist of its regulated operations in Kentucky, Pennsylvania and Rhode Island and exclude any incremental financing activities of holding companies, which Management believes is a more meaningful presentation as it provides information on the core regulated operations of PPL.

The Pennsylvania Regulated segment includes the regulated electricity transmission and distribution operations of PPL Electric.

The Rhode Island Regulated segment includes the regulated electricity transmission and distribution and natural gas distribution operations of RIE, which were acquired on May 25, 2022.

"Corporate and Other" primarily includes corporate level financing costs, certain unallocated costs, certain non-recoverable costs incurred in conjunction with the acquisition of Narragansett Electric and the financial results of Safari Energy, prior to its sale on November 1, 2022. "Corporate and Other" is presented to reconcile segment information to PPL's consolidated results.

Income Statement data for the segments and reconciliation to PPL's consolidated results for the periods ended June 30 are as follows:

	Three Months				Six Months
	2023		2022		2023		2022
Operating Revenues from external customers
Kentucky Regulated	$	778	$	883	$	1,738	$	1,887
Pennsylvania Regulated	667		676		1,558		1,451
Rhode Island Regulated	377		128		942		128
Corporate and Other	1		9		—		12
Total	$	1,823	$	1,696	$	4,238	$	3,478
Net Income (Loss)
Kentucky Regulated	$	91	$	112	$	257	$	301
Pennsylvania Regulated	110		124		248		267
Rhode Island Regulated	10		(29)		64		(29)
Corporate and Other	(99)		(88)		(172)		(147)
Total	$	112	$	119	$	397	$	392

The following provides Balance Sheet data for the segments and reconciliation to PPL's consolidated Balance Sheets as of:

	June 30, 2023		December 31, 2022
Assets
Kentucky Regulated	$	16,794	$	16,904
Pennsylvania Regulated	13,929		13,565
Rhode Island Regulated	6,217		6,081
Corporate and Other (a)	1,356		1,287
Total	$	38,296	$	37,837

(a)Primarily consists of unallocated items, including cash, PP&E, goodwill and the elimination of inter-segment transactions.

(PPL Electric, LG&E and KU)PPL Electric has two operating segments, distribution and transmission, which are aggregated into a single reportable segment. Each of LG&E and KU is a single operating and reportable segment.

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Earnings Per Share

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Earnings Per Share

4. Earnings Per Share

(PPL)

Basic EPS is computed by dividing income available to PPL common shareowners by the weighted-average number of common shares outstanding during the applicable period. Diluted EPS is computed by dividing income available to PPL common shareowners by the weighted-average number of common shares outstanding, increased by incremental shares that would be outstanding if potentially dilutive share-based payment awards were converted to common shares as calculated using the Two-Class Method or Treasury Stock Method. The If-Converted Method will be applied to the Exchangeable Senior Notes due 2028 issued in February 2023. See Note 7 for additional information.

Reconciliations of the amounts of income and shares of PPL common stock (in thousands) for the periods ended June 30 used in the EPS calculation are:

	Three Months				Six Months
	2023		2022		2023		2022
Income (Numerator)
Net income attributable to PPL	$	112	$	119	$	397	$	392
Less amounts allocated to participating securities	—		—		1		—
Net income available to PPL common shareowners - Basic and Diluted	$	112	$	119	$	396	$	392
Shares of Common Stock (Denominator)
Weighted-average shares - Basic EPS	737,075		735,977		736,953		735,741
Add: Dilutive share-based payment awards	1,102		792		985		737
Weighted-average shares - Diluted EPS	738,177		736,769		737,938		736,478
Basic and Diluted EPS
Net Income available to PPL common shareowners	$	0.15	$	0.16	$	0.54	$	0.53

For the periods ended June 30, PPL issued shares of common stock related to stock-based compensation plans as follows (in thousands):

	Three Months		Six Months
	2023	2022	2023	2022
Stock-based compensation plans	—	—	—	124

For the periods ended June 30, the following shares (in thousands) were excluded from the computations of diluted EPS because the effect would have been antidilutive.

	Three Months		Six Months
	2023	2022	2023	2022
Stock-based compensation awards	258	66	396	110

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Income Taxes

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

5. Income Taxes

Reconciliations of income tax expense (benefit) for the periods ended June 30 are as follows.

(PPL)
	Three Months				Six Months
	2023		2022		2023		2022
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	30	$	32	$	107	$	104
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	11		27		33		48
Valuation allowance adjustments	5		7		7		10
Amortization of investment tax credit including deferred taxes on basis adjustment	—		(4)		(1)		(7)
Depreciation and other items not normalized	(2)		(5)		(7)		(8)
Amortization of excess deferred federal and state income taxes	(8)		(22)		(20)		(40)
Other	(3)		(3)		(7)		(1)
Total increase (decrease)	3		—		5		2
Total income tax expense (benefit)	$	33	$	32	$	112	$	106

(PPL Electric)
	Three Months				Six Months
	2023		2022		2023		2022
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	31	$	35	$	70	$	76
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	11		13		24		28
Depreciation and other items not normalized	(3)		(3)		(7)		(6)
Amortization of excess deferred federal and state income taxes	(2)		(2)		(4)		(5)
Other	1		1		—		1
Total increase (decrease)	7		9		13		18
Total income tax expense (benefit)	$	38	$	44	$	83	$	94

(LG&E)
	Three Months				Six Months
	2023		2022		2023		2022
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	12	$	13	$	35	$	37
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	2		2		6		7
Amortization of excess deferred federal and state income taxes	(3)		(7)		(6)		(14)
Other	—		1		(1)		(2)
Total increase (decrease)	(1)		(4)		(1)		(9)
Total income tax expense (benefit)	$	11	$	9	$	34	$	28

(KU)
	Three Months				Six Months
	2023		2022		2023		2022
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	13	$	17	$	36	$	45
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	3		3		7		8
Amortization of excess deferred federal and state income taxes	(4)		(6)		(8)		(12)
Other	1		1		—		(2)
Total increase (decrease)	—		(2)		(1)		(6)
Total income tax expense (benefit)	$	13	$	15	$	35	$	39

Other

Narragansett Electric Acquisition (PPL)

The acquisition of Narragansett Electric on May 25, 2022 was deemed an asset acquisition for federal and state income tax purposes, as a result of PPL and National Grid making a tax election under Internal Revenue Code (IRC) §338(h)(10). Accordingly, the tax bases of substantially all of the assets acquired were increased to fair market value, which equaled net book value, thereby eliminating the related deferred tax assets and liabilities. This election resulted in tax goodwill that will be amortized for tax purposes over 15 years.

Pennsylvania State Tax Reform (PPL and PPL Electric)

On July 8, 2022, the Governor of Pennsylvania signed into law Pennsylvania House Bill 1342 (H.B. 1342). Among other changes to the state tax code, the bill reduces the corporate net income tax rate from 9.99% to 8.99% beginning January 1, 2023, and further reduces the rate annually by half a percentage point until the rate reaches 4.99% in 2031.

Inflation Reduction Act (All Registrants)

On August 16, 2022, the Inflation Reduction Act (IRA) was signed into law. Among other things, the IRA enacted a new 15% corporate "book minimum tax," which is based on adjusted GAAP pre-tax income and is only applicable to corporations whose pre-tax income exceeds a certain threshold. PPL does not expect to be subject to the book minimum tax in 2023. The Registrants will continue to assess the impacts of the IRA on their financial statements and will monitor guidance issued by the U.S. Treasury in the future. In addition, the IRA enacted numerous new tax credits, largely associated with renewable energy.

IRS Revenue Procedure 2023-15 (PPL and LG&E)

On April 14, 2023, the IRS issued Revenue Procedure 2023-15, which provides a safe harbor method of accounting that taxpayers may use to determine whether expenses to repair, maintain, replace, or improve natural gas transmission and distribution property must be capitalized for tax purposes. PPL and LG&E are currently reviewing the revenue procedure to determine what impact the newly issued guidance may have on their financial statements.

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Utility Rate Regulation

6 Months Ended

Jun. 30, 2023

Regulated Operations [Abstract]

Utility Rate Regulation

6. Utility Rate Regulation

(All Registrants)

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

	PPL				PPL Electric				LG&E				KU
	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Current Regulatory Assets:
Gas supply clause	$	—	$	41	$	—	$	—	$	—	$	13	$	—	$	—
Rate adjustment mechanisms	214		96		—		—		—		—		—		—
Renewable energy certificates	13		14		—		—		—		—		—		—
Derivative instruments	15		41		—		—		—		—		—		—
Smart meter rider	5		5		5		5		—		—		—		—
Universal service rider	21		3		21		3		—		—		—		—
Fuel adjustment clause	9		38		—		—		2		9		7		29
Transmission service charge	12		—		12		—		—		—		—		—
Other	42		20		11		5		2		1		3		3
Total current regulatory assets	$	331	$	258	$	49	$	13	$	4	$	23	$	10	$	32
Noncurrent Regulatory Assets:
Defined benefit plans	$	783	$	778	$	353	$	353	$	208	$	209	$	139	$	140
Plant outage costs	42		46		—		—		11		12		31		34
Net metering	89		61		—		—		—		—		—		—
Environmental cost recovery	101		102		—		—		—		—		—		—
Taxes recoverable through future rates	38		47		—		—		—		—		—		—
Storm costs	111		118		—		—		15		7		14		3
Unamortized loss on debt	24		21		4		3		11		11		7		7
Interest rate swaps	6		7		—		—		6		7		—		—
Terminated interest rate swaps	61		63		—		—		36		37		25		26
Accumulated cost of removal of utility plant	195		212		195		212		—		—		—		—
AROs	292		295		—		—		76		76		216		219
Derivatives instruments	7		—		—		—		—		—		—		—
Other	77		69		—		—		21		14		15		13
Total noncurrent regulatory assets	$	1,826	$	1,819	$	552	$	568	$	384	$	373	$	447	$	442

	PPL				PPL Electric				LG&E				KU
	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Current Regulatory Liabilities:
Generation supply charge	$	41	$	37	$	41	$	37	$	—	$	—	$	—	$	—
Transmission service charge	—		14		—		7		—		—		—		—
TCJA customer refund	6		15		6		15		—		—		—		—
Act 129 compliance rider	15		14		15		14		—		—		—		—
Transmission formula rate	23		12		20		12		—		—		—		—
Rate adjustment mechanism	133		96		—		—		—		—		—		—
Energy efficiency	23		23		—		—		—		—		—		—
Gas supply clause	16		—		—		—		16		—		—		—
Other	23		27		—		—		3		7		2		6
Total current regulatory liabilities	$	280	$	238	$	82	$	85	$	19	$	7	$	2	$	6

	PPL				PPL Electric				LG&E				KU
	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	978	$	950	$	—	$	—	$	296	$	287	$	396	$	389
Power purchase agreement - OVEC	22		26		—		—		15		18		7		8
Net deferred taxes	2,054		2,094		776		775		469		477		535		546
Defined benefit plans	225		187		59		45		21		21		57		56
Terminated interest rate swaps	58		60		—		—		29		30		29		30
Energy efficiency	39		32		—		—		—		—		—		—
Other	45		63		—		—		3		—		8		—
Total noncurrent regulatory liabilities	$	3,421	$	3,412	$	835	$	820	$	833	$	833	$	1,032	$	1,029

Regulatory Matters

Rhode Island Activities (PPL)

Rate Case proceedings

Pursuant to Report and Order No. 23823 issued May 5, 2020, the RIPUC approved the terms of an Amended Settlement Agreement (ASA), reflecting an allowed return on equity (ROE) rate of 9.275% based on a common equity ratio of approximately 51%. RIE is currently in year five of the multi-year rate plan (Rate Plan). On June 30, 2021, the Rhode Island Division of Public Utilities and Carriers consented to an open-ended extension of the term of the Rate Plan. Pursuant to the settlement with the Rhode Island Office of the Attorney General in connection with the acquisition of RIE by PPL, RIE currently does not anticipate filing a new base rate case before May 25, 2025. Pursuant to the open-ended extension, the Rate Year 3 level of base distribution rates under ASA will remain in effect and RIE will continue to operate under the current Rate Plan until a new Rate Plan is approved by the RIPUC.

The ASA includes additional provisions, including (i) an Electric Transportation Initiative (the ET Initiative) to facilitate the growth of Electric Vehicle (EV) adoption and scaling of the market for EV charging equipment to advance Rhode Island's zero emission vehicles and greenhouse gas emissions policy goals, (ii) two energy storage demonstration projects, which are on track for timely completion, (iii) an incentive-only performance incentive for System Efficiency: Annual Megawatt Capacity Savings, which sunset in 2021 and is now a tracking and reporting only metric, and (iv) several additional metrics for tracking and reporting purposes only. The RIPUC discussed the ET Initiative at an Open Meeting on August 30, 2022, advising RIE to seek RIPUC authorization to continue the ET Initiative and/or to alter any of the targets established in the ASA for Rate Year 5 and beyond. No votes or official rulings were taken; however, based on this feedback, RIE has paused the ET programs in Rate Year 5. As of June 30, 2023, the RIPUC had not made any rulings regarding the timing of crediting customers the deferral balance pursuant to the ASA. RIE cannot predict the outcome of this matter.

Advanced Metering Functionality and Grid Modernization

In 2021, RIE filed its Updated Advanced Metering Functionality (AMF) Business Case and Grid Modernization Plan (GMP) with the RIPUC in accordance with the ASA, and which, among other things, sought approval to deploy smart meters throughout the service territory. In 2021, the RIPUC stayed the AMF and GMP proceedings pending further consideration following the issuance of a final Order by the Rhode Island Division of Public Utilities and Carriers on the acquisition of RIE. RIE filed notice of withdrawal of the original Updated AMF Business Case and GMP with the RIPUC, and in November 2022 filed a new AMF Business Case with the RIPUC. The new AMF Business Case filing consists of a detailed proposal for full-scale deployment of AMF across its electric service territory. The proposal will enable significant customer and grid benefits in line with the state’s climate mandates. In its filing, RIE estimated that the proposed program would cost $188 million on a net present value (NPV) basis and provide benefits of $729 million NPV over the 20-year project life, yielding a benefit-cost ratio of 3.9%. RIE believes AMF is a foundational technology that is a necessary first step to transforming Rhode Island’s electric distribution system.

In its filing, RIE requested a RIPUC decision by June 2023; the RIPUC issued a revised procedural schedule for the AMF Business Case filing that provides for hearings in July 2023. Evidentiary hearings commenced on July 20, 2023 and continued on July 25, 2023 through July 27, 2023. In addition, the RIPUC held a public comment hearing on April 4, 2023, and technical

sessions on February 22, 2023, May 10, 2023 and June 13, 2023. The RIPUC also held a separate evidentiary hearing on April 14, 2023, regarding certain Motions for Confidential Treatment by RIE.

RIE filed a new GMP with the RIPUC on December 30, 2022. The new GMP filing consists of a holistic suite of grid modernization investments that will provide RIE with the tools and capability to manage the electric distribution system more granularly considering a range of distributed energy resources adoption levels, accelerated by Rhode Island's climate mandates, while at the same time maintaining a safe and reliable electric distribution system. The GMP is an informational guidance document that supports the grid modernization investments to be proposed in future electric ISR plans. Consequently, RIE did not request approval from the RIPUC for any specific investments or seek cost recovery as part of the GMP; rather, RIE requested that the RIPUC issue an order affirming RIE’s compliance with its obligation to file a GMP that meets the requirements of the ASA.

COVID-19 Deferral Filing

On April 30, 2021, RIE filed a petition for approval to recognize regulatory assets related to COVID-19 impacts (RIPUC Docket No. 5154). In its petition, RIE sought the RIPUC's authorization to create regulatory assets and consideration of future cost recovery for the following COVID-19 costs: (1) the increased cost of customer accounts receivable that RIE will be unable to collect as a result of the COVID-19 pandemic, and the executive orders and RIPUC orders restricting RIE's collection activities as a result of the pandemic, which will result in increased net charge-offs; (2) lost revenue from unassessed late payment charges; and (3) charges to RIE for other fees that RIE has waived pursuant to the RIPUC's orders in RIPUC Docket No. 5022. RIE is evaluating its request to create a regulatory asset for COVID-19-related bad debt expense to consider the impact, if any, of the proposed arrearage forgiveness sought in RIE’s Petition to Forgive Certain Arrearage Balances for Low-Income and Protected Customers in Docket No. 22-08-GE, which RIE filed with the RIPUC to fulfill its obligations under PPL's settlement with the Rhode Island Attorney General. RIE cannot predict the outcome of this matter.

FY 2023 Gas Infrastructure, Safety and Reliability (ISR) Plan

At an Open Meeting on March 29, 2022, the RIPUC conditionally approved RIE’s FY 2023 Gas ISR Plan and associated revenue requirement, subject to further review regarding RIE's Proactive Main Replacement Program and its decision to reconstruct and purchase heating and pressure regulation equipment located at RIE’s Wampanoag and Tiverton take stations. The RIPUC held an Open Meeting on September 13, 2022, and issued its Order on November 18, 2022 regarding the Proactive Main Replacement Program and made the following rulings: (1) commencing with the Gas ISR plan to be filed in this calendar year 2022 (prospectively), new main constructed to replace leak prone pipe will not be considered used and useful, and therefore not eligible for rate base treatment, until the related old main is abandoned; and (2) approved the proactive main replacement revenue requirement set forth in the FY2023 Gas ISR plan. Also, the RIPUC directed RIE to submit prefiled testimony on the issue of its replacement of heating and pressure regulation facilities at the Wampanoag and Tiverton take stations and to address three issues, specifically: (i) a cost-benefit analysis arising from RIE's decision to take ownership of the reconstructed take station equipment; (ii) the potential that the benefits derived from the reconstruction and ownership transfer of the take station equipment will not be realized due to the future use of hydrogen or abandonment of the gas system; and (iii) the depreciation and accounting treatment of the reconstructed take station equipment. RIE filed this testimony with the RIPUC on May 16, 2022, the RIPUC has not taken any action to date on this issue. RIE cannot predict the outcome of this matter.

FY 2024 Gas ISR Plan

On December 23, 2022, RIE filed its FY 2024 Gas ISR Plan with the RIPUC. At its January 20, 2023 Open Meeting, the RIPUC directed RIE to file supplemental budget and rate schedules to reflect an April 1 to March 31 fiscal year. The supplemental budget that was filed with the RIPUC on January 27, 2023 includes $187 million of capital investment spend. The supplemental rate schedules were filed on February 3, 2023. RIE and the Rhode Island Division of Public Utilities and Carriers reached an agreement on an approximately $171 million capital investment spending plan, and RIE filed a second supplemental budget on March 13, 2023. The RIPUC held a hearing on the plan on March 14, 2023. At an Open Meeting on March 29, 2023, the RIPUC approved the plan with an adjustment to the budget for the Proactive Main Replacement Program category resulting in a total approved FY 2024 Gas ISR Plan of $163 million for capital investment spend. On March 31, 2023, the RIPUC approved RIE's March 30, 2023 compliance filing for rates effective April 1, 2023. The RIPUC continues to consider the appropriate rate recovery treatment of projects not covered by an ISR plan for the applicable fiscal year, and additional definitions and procedures that may be implemented related to the ISR plan process. RIE cannot predict the outcome of this matter.

FY 2024 Electric ISR Plan

On December 23, 2022, RIE filed its FY 2024 Electric ISR Plan with the RIPUC. At its January 20, 2023 Open Meeting, the RIPUC directed RIE to file supplemental budget and rate schedules to reflect an April 1 to March 31 fiscal year. The supplemental budget filed with the RIPUC on January 27, 2023 includes $176 million of capital investment spend, $14 million of vegetation operations and management (O&M) spend and $3 million of Other O&M spend. The supplemental rate schedules were filed on February 3, 2023. RIE filed second supplemental budget schedules on March 21, 2023, which includes $166 million of capital investment spend, $14 million of vegetation management O&M spend and $1 million of Other O&M spend. The RIPUC held hearings in March 2023, and on March 29, 2023, approved the plan with modifications to the proposed capital investment spend, resulting in a total approved FY 2024 Electric ISR Plan of $112 million for capital investment spend, $14 million for vegetation management O&M spend, and $1 million for Other O&M spend. On March 31, 2023, the RIPUC approved RIE's March 30, 2023 compliance filing for rates effective April 1, 2023. The RIPUC continues to consider the appropriate rate recovery treatment of projects not covered by an ISR plan for the applicable fiscal year, and additional definitions and procedures that may be implemented related to the ISR plan process. RIE cannot predict the outcome of this matter.

Kentucky Activities (PPL, LG&E and KU)

CPCN and SB 4 Application

On December 15, 2022, LG&E and KU filed an application with the KPSC for a CPCN for the construction of two 621 MW net summer rating NGCC combustion turbine facilities, one at LG&E's Mill Creek Generating Station in Jefferson County, Kentucky and the other at KU's E.W. Brown Generating Station in Mercer County, Kentucky, including on-site natural gas and electric transmission construction associated with those facilities and site compatibility certificates. LG&E and KU also applied for a CPCN to construct a 120 MWac solar photovoltaic electric generating facility in Mercer County, Kentucky, and for a CPCN to acquire a 120 MWac solar facility to be built by a third-party solar developer in Marion County, Kentucky. LG&E and KU further applied for a CPCN to construct a 125 MW, 4-hour battery energy storage system facility at KU's E.W. Brown Generating Station and for approval of their proposed 2024-2030 DSM programs. The plan includes adding 14 new, adjusted or expanded energy efficiency programs, which would reduce LG&E's and KU's overall need by approximately 100 MW each. Finally, LG&E and KU requested a declaratory order to confirm that their entry into non-firm energy-only power-purchase agreements for the output of four solar photovoltaic facilities with a combined capacity of 637 MW does not require KPSC approval and that LG&E and KU may recover the costs of the solar PPAs through their fuel adjustment clause mechanisms as previously approved for a prior solar PPA. LG&E and KU plan to accrue AFUDC on the constructed NGCC facilities, the solar facility in Mercer County, Kentucky and the battery energy storage system facility and have requested regulatory asset treatment to recover the financing costs of these projects.

The new NGCC facilities would be jointly owned by LG&E (31%) and KU (69%) and the solar units would be jointly owned by LG&E (37%) and KU (63%), the battery storage unit would be owned by LG&E, and the proposed PPA transactions and DSM programs would be entered into or conducted jointly by LG&E and KU, consistent with LG&E and KU's shared dispatch, cost allocation, tariff or other frameworks.

The filing also notes planned retirement dates for certain existing coal-fired generation units, including Mill Creek 1 (300 MW) in 2024 and E.W. Brown 3 (412 MW) in 2028, and updates and advances the planned retirement dates for Mill Creek 2 (297 MW) to 2027 and Ghent 2 (486 MW) to 2028. LG&E and KU anticipate the recovery of associated retirement costs, including the remaining net book value, for these coal-fired generating units through the RAR or other rate mechanisms.

The KPSC accepted the CPCN filing as of January 6, 2023. On March 24, 2023, Kentucky Senate Bill 4 (SB 4) went into effect, which requires KPSC approval of fossil fuel-fired electric generating unit retirements in the state. On May 10, 2023, LG&E and KU filed an application with the KPSC seeking approval of the retirement of seven fossil fuel-fired generating units as required by the recently enacted SB 4. On May 16, 2023, the KPSC entered an Order consolidating the SB 4 filing proceeding into the CPCN case. The KPSC has indicated its intention to issue an order on all issues by November 6, 2023. PPL, LG&E and KU cannot predict the outcome of these matters.

Kentucky March 2023 Storm

On March 3, 2023, LG&E and KU experienced significant windstorm activity in their service territories, resulting in substantial damage to certain of LG&E's and KU's assets with total costs incurred through June 30, 2023 of $75 million ($33 million at

LG&E and $42 million at KU). On March 17, 2023, LG&E and KU submitted a filing with the KPSC requesting regulatory asset treatment of the extraordinary operations and maintenance expenses portion of the costs incurred related to the windstorm. On April 5, 2023, the KPSC issued an order approving the request for accounting purposes, noting that approval for recovery would be determined in LG&E’s and KU’s next base rate cases. As of June 30, 2023, LG&E and KU recorded regulatory assets related to the storm of $8 million and $11 million.

Pennsylvania Activities (PPL and PPL Electric)

PAPUC investigation into billing issues

On January 31, 2023, the PAPUC initiated an investigation focused on billing issues related to estimated, irregular bills and customer service concerns following customer complaints, which for many customers were driven by increased prices for electricity supply. Certain bills issued during the time period of December 20, 2022 through January 25, 2023 were estimated due to a technical issue that prevented PPL Electric from providing actual collected meter data to customer facing and other internal systems. Customers also reported difficulties accessing PPL Electric's website and contacting the customer service call center. The PAPUC’s Bureau of Investigation & Enforcement has directed PPL Electric to respond to certain inquiries and document requests. PPL Electric has submitted its responses to the information request and is cooperating fully with the investigation. PPL Electric cannot predict the outcome of this matter.

Federal Matters

FERC Transmission Rate Filing (PPL, LG&E and KU)

In 2018, LG&E and KU applied to the FERC requesting elimination of certain on-going waivers and credits to a sub-set of transmission customers relating to the 1998 merger of LG&E's and KU's parent entities and the 2006 withdrawal of LG&E and KU from the Midcontinent Independent System Operator, Inc. (MISO), a regional transmission operator and energy market. The application sought termination of LG&E's and KU's commitment to provide certain Kentucky municipalities mitigation for certain horizontal market power concerns arising out of the 1998 LG&E and KU merger and 2006 MISO withdrawal. The amounts at issue are generally waivers or credits granted to a limited number of Kentucky municipalities for either certain LG&E and KU or MISO transmission charges incurred for transmission service received. In 2019, the FERC granted LG&E's and KU's request to remove the ongoing credits, conditioned upon the implementation by LG&E and KU of a transition mechanism for certain existing power supply arrangements, which was subsequently filed, modified, and approved by the FERC in 2020 and 2021. In 2020, LG&E and KU and other parties filed appeals with the D.C. Circuit Court of Appeals regarding the FERC's orders on the elimination of the mitigation and required transition mechanism. In August 2022, the D.C. Circuit Court of Appeals issued an order remanding the proceedings back to the FERC. On May 18, 2023, the FERC issued an order on remand reversing its 2019 decision and requiring LG&E and KU to refund credits previously withheld, including under such transition mechanism. On June 9, 2023, the FERC granted LG&E’s and KU’s motion for an extension of time to process refunds until November 2023. LG&E and KU filed a request for rehearing of the May 18, 2023 order, which was denied by operation of law on July 17, 2023. LG&E and KU filed petition for review of FERC's May 18, 2023 order with the D.C. Circuit Court of Appeals on July 28, 2023. In the second quarter of 2023, LG&E and KU recorded regulatory liabilities of $3 million and $8 million related to potential refunds resulting from the FERC’s May 18, 2023 order. LG&E and KU cannot predict the ultimate outcome of the proceedings or any other post decision process but do not expect the annual impact to have a material effect on their operations or financial condition. LG&E and KU currently receive recovery of certain waivers and credits provided primarily through base rates with increases associated with the FERC's May 18, 2023 order expected to be primarily subject to base rate recovery in future rate proceedings.

Recovery of Transmission Costs (PPL)

Until December 2022, RIE's transmission facilities were operated in combination with the transmission facilities of National Grid's New England affiliates, Massachusetts Electric Company (MECO) and New England Power (NEP), as a single integrated system with NEP designated as the combined operator. As of January 1, 2023, RIE operates its own transmission facilities. NE-ISO allocates RIE's costs among transmission customers in New England, in accordance with the ISO Open Access Transmission Tariff (ISO-NE OATT). According to the FERC orders, RIE is compensated for its actual monthly transmission costs, with its authorized maximum ROE of 11.74% on its transmission assets.

The ROE for transmission rates under the ISO-NE OATT is the subject of four complaints that are pending before the FERC. On October 16, 2014, the FERC issued an order on the first complaint, Opinion No. 531-A, resetting the base ROE applicable

to transmission assets under the ISO-NE OATT from 11.14% to 10.57% effective as of October 16, 2014 and establishing a maximum ROE of 11.74%. On April 14, 2017, this order was vacated and remanded by the D. C. Circuit Court of Appeals (Court of Appeals). After the remand, the FERC issued an order on October 16, 2018 applicable to all four pending cases where it proposed a new base ROE methodology that, with subsequent input and support from the New England Transmission Owners (NETO), yielded a base ROE of 10.41%. Subsequent to the FERC's October 2018 order in the New England Transmission Owners cases, the FERC further refined its ROE methodology in another proceeding and has applied that refined methodology to transmission owners’ ROEs in other jurisdictions, and the NETOs filed further information in the New England matters to distinguish their case. Those determinations in other jurisdictions are currently on appeal before the Court of Appeals. The proceeding and the final base rate ROE determination in the New England matters remain open, pending a final order from the FERC. PPL cannot predict the outcome of this matter, and an estimate of the impact cannot be determined.

Other

Purchase of Receivables Program

(PPL and PPL Electric)

In accordance with a PAPUC-approved purchase of accounts receivable program, PPL Electric purchases certain accounts receivable from alternative electricity suppliers at a discount, which reflects a provision for uncollectible accounts. The alternative electricity suppliers have no continuing involvement or interest in the purchased accounts receivable. Accounts receivable that are acquired are initially recorded at fair value on the date of acquisition. During the three and six months ended June 30, 2023, PPL Electric purchased $374 million and $732 million of accounts receivable from alternative suppliers. During the three and six months ended June 30, 2022, PPL Electric purchased $273 million and $622 million of receivables.

(PPL)

In 2021 and 2022, the RIPUC approved various components of a Purchase of Receivables Program (POR) in Rhode Island for effect on April 1, 2022. Municipal aggregators and non-regulated power producers (collectively, Competitive Suppliers) are eligible to participate in accordance with RIE's approved electric tariffs for municipal aggregation and non-regulated power producers. Under the POR program, RIE will purchase the Competitive Suppliers' accounts receivables, including existing receivables, at discounted rates, regardless of whether RIE has collected the owed monies from customers. The program is intended to make RIE whole through the implementation of a discount rate or Standard Complete Bill Percentage (SCBP) paid by Competitive Suppliers. RIE calculates the SCBP for each customer class and files the calculations with the RIPUC for review and approval by February 15 of each year. At an Open Meeting on March 29, 2023, the RIPUC approved the SCBP for effect beginning on April 1, 2023, for a one-year period.

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Financing Activities

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Financing Activities

7. Financing Activities

Credit Arrangements and Short-term Debt

(All Registrants)

The Registrants maintain credit facilities to enhance liquidity, provide credit support and provide a backstop to commercial paper programs. For reporting purposes, on a consolidated basis, the credit facilities and commercial paper programs of PPL Electric, LG&E and KU are attributable to PPL. The amounts listed in the borrowed column below are recorded as "Short-term debt" on the Balance Sheets except for borrowings under PPL Electric's term loan agreement due March 2024 and borrowings under LG&E's and KU's term loan agreements due July 2024, which are reflected in "Long-term debt" at December 31, 2022. The following credit facilities were in place at:

	June 30, 2023									December 31, 2022
	Expiration Date	Capacity		Borrowed		Letters of Credit and Commercial Paper Issued (d)		Unused Capacity		Borrowed		Letters of Credit and Commercial Paper Issued (d)
PPL
PPL Capital Funding (a)
Syndicated Credit Facility (b)	Dec. 2027	$	1,250	$	—	$	—	$	1,250	$	—	$	561
Bilateral Credit Facility	Mar. 2024	100		—		—		100		—		—
Bilateral Credit Facility (c)	Mar. 2024	100		—		58		42		—		58
Total PPL Capital Funding Credit Facilities		$	1,450	$	—	$	58	$	1,392	$	—	$	619
PPL Electric
Syndicated Credit Facility	Dec. 2027	$	650	$	—	$	131	$	519	$	—	$	146
Term Loan Credit Facility	Mar. 2024	—		—		—		—		250		—
Total PPL Electric Credit Facilities		$	650	$	—	$	131	$	519	$	250	$	146
LG&E
Syndicated Credit Facility	Dec. 2027	$	500	$	—	$	21	$	479	$	—	$	180
Term Loan Credit Facility	Jul. 2024	—		—		—		—		300		—
Total LG&E Credit Facilities		$	500	$	—	$	21	$	479	$	300	$	180
KU
Syndicated Credit Facility	Dec. 2027	$	400	$	—	$	92	$	308	$	—	$	101
Term Loan Credit Facility	Jul. 2024	—		—		—		—		300		—
Total KU Credit Facilities		$	400	$	—	$	92	$	308	$	300	$	101

(a)PPL Capital Funding's obligations are fully and unconditionally guaranteed by PPL.

(b)Includes a $250 million borrowing sublimit for RIE and a $1 billion sublimit for PPL Capital Funding.

(c)Includes a $45 million letter of credit on behalf of RIE.

(d)Commercial paper issued reflects the undiscounted face value of the issuance.

(PPL)

In March 2023, RIE was added as an authorized borrower under the PPL Capital Funding syndicated credit facility. At June 30, 2023, RIE’s borrowing limit under the facility was set at $250 million and PPL Capital Funding's borrowing limit was set at $1 billion. At June 30, 2023, neither PPL Capital Funding nor RIE had any borrowings outstanding under the facility.

(PPL and PPL Electric)

In March 2023, PPL Electric repaid its $250 million term loan expiring in March 2024 and terminated the facility.

(PPL and LG&E)

In March 2023, LG&E repaid its $300 million term loan expiring in July 2024 and terminated the facility.

(PPL and KU)

In March 2023, KU repaid its $300 million term loan expiring in July 2024 and terminated the facility.

(All Registrants)

PPL Capital Funding, RIE, PPL Electric, LG&E and KU maintain commercial paper programs to provide an additional financing source to fund short-term liquidity needs. Commercial paper issuances, included in "Short-term debt" on the Balance Sheets, are supported by the respective Registrant's credit facilities. The following commercial paper programs were in place at:

	June 30, 2023							December 31, 2022
	Weighted - Average Interest Rate	Capacity		Commercial Paper Issuances (c)		Unused Capacity		Weighted - Average Interest Rate	Commercial Paper Issuances (c)
PPL Capital Funding (a) (b)		$	1,350	$	—	$	1,350	4.84%	$	561
RIE (b)		400		—		400			—
PPL Electric	5.31%	650		130		520		4.74%	145
LG&E	5.30%	500		21		479		4.94%	180
KU	5.34%	400		92		308		4.90%	101
Total		$	3,300	$	243	$	3,057		$	987

(a)PPL Capital Funding's obligations are fully and unconditionally guaranteed by PPL.

(b)Issuances under the PPL Capital Funding and RIE commercial paper programs are supported by the PPL Capital Funding syndicated credit facility, which has a total capacity of $1.25 billion and under which they are both borrowers. PPL Capital Funding’s Commercial paper program is also backed by a separate bilateral credit facility for $100 million. The PPL Capital Funding syndicated credit facility includes a borrowing sublimit for RIE, which is currently set at $250 million with the remaining $1 billion allocated to PPL Capital Funding. The sublimits of each borrower may be decreased or increased at the borrowers’ option up to a prescribed amount such that all borrowings under the syndicated credit facility cannot exceed the size of the credit facility of $1.25 billion.

(c)Commercial paper issued reflects the undiscounted face value of the issuance.

(PPL)

In June 2023, RIE established a commercial paper program with a capacity of $400 million. This program is supported by PPL Capital Funding's syndicated credit facility, under which RIE is a co-borrower.

(PPL Electric, LG&E, and KU)

See Note 11 for discussion of intercompany borrowings.

Long-term Debt

(PPL)

In February 2023, PPL Capital Funding issued $1.0 billion of 2.875% Exchangeable Senior Notes due 2028 (the Notes). PPL Capital Funding received proceeds of $980 million, net of underwriting fees, which were used to repay short-term debt and for general corporate purposes. The Notes are senior unsecured notes, fully guaranteed by PPL. The Notes are scheduled to mature on March 15, 2028, unless earlier exchanged, redeemed or repurchased.

The Notes are exchangeable at an initial exchange rate of 29.3432 shares of PPL's common stock per $1,000 principal amount (equivalent to an initial exchange price of approximately $34.08 per share of common stock). The initial exchange rate is subject to adjustment, as provided in the indenture for anti-dilutive events and fundamental change and redemption provisions. Upon exchange of the Notes, PPL Capital Funding will redeem the aggregate principal amount of the Notes in cash. PPL Capital Funding will pay cash, deliver shares of common stock or a combination of cash and shares of common stock, at PPL Capital Funding's election, in respect of the remainder, if any, of its exchange obligation in excess of the aggregate principal amount of the Notes being exchanged. Prior to December 15, 2027, the Notes will be exchangeable at the option of the noteholders only upon the satisfaction of specified conditions and during certain periods described in the indenture pursuant to which the Notes were issued. On or after December 15, 2027 until the maturity date, the Notes will be exchangeable at the option of the noteholders at any time regardless of these conditions or periods.

PPL Capital Funding may redeem all or any portion of the Notes, at its option, on or after March 20, 2026, if the last reported sale price of the common stock has been at least 130% of the exchange price then in effect for at least 20 trading days (whether or not consecutive), during any 30 consecutive trading day period, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus any accrued and unpaid interest. No sinking fund is provided for the Notes.

Subject to certain conditions, holders of the Notes will have the right to require PPL Capital Funding to repurchase all or a portion of their Notes upon the occurrence of a fundamental change, as defined in the indenture pursuant to which the Notes were issued at a repurchase price of 100% of their principal amount plus any accrued and unpaid interest. In connection with certain corporate events or if PPL Capital Funding calls any Notes for redemption, PPL Capital Funding will, under certain circumstances, increase the exchange rate for noteholders who elect to exchange their Notes in connection with any such corporate event or exchange their Notes called for redemption.

(PPL and PPL Electric)

In March 2023, PPL Electric issued $600 million of 5.00% First Mortgage Bonds due 2033 and $750 million of 5.25% First Mortgage Bonds due 2053. PPL Electric received proceeds of $1.32 billion, net of discounts and underwriting fees, which were used to repay debt, including PPL Electric's $250 million term loan, and for other general corporate purposes.

In March 2023, PPL Electric redeemed all of the outstanding $650 million aggregate principal amount of its First Mortgage Bonds, Floating Rate Series due 2024.

In March 2023, PPL Electric redeemed all of the outstanding $250 million aggregate principal amount of its First Mortgage Bonds, Floating Rate Series due 2023.

(PPL and LG&E)

In March 2023, LG&E issued $400 million of 5.45% First Mortgage Bonds due 2033. LG&E received proceeds of $396 million, net of discounts and underwriting fees, which were used to repay LG&E's $300 million term loan and for other general corporate purposes.

(PPL and KU)

In March 2023, KU issued $400 million of 5.45% First Mortgage Bonds due 2033. KU received proceeds of $396 million, net of discounts and underwriting fees, which were used to repay KU's $300 million term loan and for general corporate purposes.

(PPL)

Equity Securities

In June 2023, RIE redeemed all 49,089 shares of its outstanding preferred stock at a redemption price equal to the par value of $50 per share, plus a premium of $5 per share, plus a prorated dividend of $0.1875 per share. The total payment was $3 million.

Dividends

In May 2023, PPL declared a quarterly cash dividend on its common stock, payable July 3, 2023, of 24.0 cents per share (equivalent to 96.0 cents per annum).

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Defined Benefits

6 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Defined Benefits

9. Defined Benefits

(PPL)

Certain net periodic defined benefit costs are applied to accounts that are further distributed among capital, expense, regulatory assets and regulatory liabilities, including certain costs allocated to applicable subsidiaries for plans sponsored by PPL Services and LKE. Following are the net periodic defined benefit costs (credits) of the plans sponsored by PPL and its subsidiaries for the periods ended June 30:

	Pension Benefits
	Three Months				Six Months
	2023		2022		2023		2022
PPL
Service cost	$	8	$	13	$	17	$	25
Interest cost	48		30		94		62
Expected return on plan assets	(77)		(63)		(155)		(127)
Amortization of:
Prior service cost	1		2		3		4
Actuarial loss	1		17		1		29
Net periodic defined benefit costs (credits) before settlements	(19)		(1)		(40)		(7)
Settlements (a)	—		12		—		12
Net periodic defined benefit costs (credits)	$	(19)	$	11	$	(40)	$	5

(a)Due to the amount of lump sum payment distributions from the LKE qualified pension plan, settlement charges were incurred during the three and six months ended, June 30, 2022. In accordance with existing regulatory accounting treatment, LG&E and KU have primarily maintained the settlement charge in regulatory assets to be amortized over 15 years.

	Other Postretirement Benefits
	Three Months				Six Months
	2023		2022		2023		2022
PPL
Service cost	$	1	$	2	$	3	$	3
Interest cost	8		4		15		8
Expected return on plan assets	(7)		(6)		(15)		(12)
Amortization of:
Prior service cost	1		1		1		1
Actuarial loss	(2)		(2)		(3)		(2)
Net periodic defined benefit costs (credits)	$	1	$	(1)	$	1	$	(2)

(All Registrants)

The non-service cost components of net periodic defined benefit costs (credits) (interest cost, expected return on plan assets, amortization of prior service cost and amortization of actuarial gain and loss) are presented in "Other Income (Expense) - net" on the Statements of Income. See Note 12 for additional information.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

10. Commitments and Contingencies

Long-term Contracts for Renewable Energy (PPL)

In July 2022, Rhode Island passed an amendment to the Affordable Clean Energy Security Act (ACES) that required RIE to issue a request for proposals (RFP) for at least 600 MW but no greater than 1,000 MW of newly developed offshore wind capacity no later than October 15, 2022. The RFP was issued on October 14, 2022, following a public comment period, and subsequently revised on November 7, 2022. On March 17, 2023, RIE announced that it will evaluate a joint proposal from Orsted and Eversource to develop 884 MW of offshore wind, which was the sole response to RIE’s RFP. On July 18, 2023, RIE announced it would not be proceeding with conditional selection of the bid because it did not meet the terms of the ACES statute. RIE intends to file supporting documentation with the RIPUC in approximately 60 days.

Legal Matters

(All Registrants)

PPL and its subsidiaries are involved in legal proceedings, claims and litigation in the ordinary course of business. PPL and its subsidiaries cannot predict the outcome of such matters, or whether such matters may result in material liabilities, unless otherwise noted.

Talen Litigation

Background (PPL)

In September 2013, one of PPL's former subsidiaries, PPL Montana entered into an agreement to sell its hydroelectric generating facilities. In June 2014, PPL and PPL Energy Supply, the parent company of PPL Montana, entered into various definitive agreements with affiliates of Riverstone to spin off PPL Energy Supply and ultimately combine it with Riverstone's competitive power generation businesses to form a stand-alone company named Talen Energy. In November 2014, after executing the spinoff agreements but prior to the closing of the spinoff transaction, PPL Montana closed the sale of its hydroelectric generating facilities. Subsequently, on June 1, 2015, the spinoff of PPL Energy Supply was completed. Following the spinoff transaction, PPL had no continuing ownership interest in or control of PPL Energy Supply. In connection with the spinoff transaction, PPL Montana became Talen Montana, LLC (Talen Montana), a subsidiary of Talen Energy and Talen Energy Marketing, LLC also became a subsidiary of Talen Energy. Talen Energy has owned and operated both Talen Montana and Talen Energy Marketing, LLC since the spinoff. At the time of the spinoff, affiliates of Riverstone acquired a 35% ownership interest in Talen Energy. Riverstone subsequently acquired the remaining interests in Talen Energy in a take private transaction in December 2016.

In October 2018, Talen Montana Retirement Plan and Talen Energy Marketing, LLC filed a putative class action complaint on behalf of current and contingent creditors of Talen Montana (the Montana Action) who allegedly suffered harm or allegedly will suffer reasonably foreseeable harm as a result of, among other things, the November 2014 allegedly fraudulent transfer of proceeds from the sale of then-PPL Montana's hydroelectric generating facilities.

In November 2018, PPL, certain PPL affiliates, and certain current and former officers and directors (PPL plaintiffs) filed a complaint in the Court of Chancery of the State of Delaware seeking various forms of relief against Riverstone, Talen Energy and certain of their affiliates (the Delaware Action), in response to the Montana Action and as part of the defense strategy.

Talen Energy Supply, LLC et al. and Talen Montana LLC v. PPL Corp., PPL Capital Funding, Inc., PPL Electric Utilities Corp., and PPL Energy Funding (PPL and PPL Electric)

On May 9, 2022, Talen Energy Supply, LLC and 71 affiliates, including Talen Montana, LLC, filed petitions for protection under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas (Texas Bankruptcy Court).

On May 10, 2022, Talen Montana, LLC, as debtor-in-possession, filed a complaint initiating an adversary proceeding (Adversary Proceeding) in the Texas Bankruptcy Court against PPL Corporation, PPL Capital Funding, Inc., PPL Electric Utilities Corporation, and PPL Energy Funding Corporation. Similar to the litigation in Montana, the Adversary Proceeding seeks the recovery of an allegedly fraudulent transfer relating to PPL Montana’s November 2014 sale of hydroelectric assets to Northwestern and subsequent distribution of certain proceeds of that sale of approximately $900 million, reiterating claims that the parties had already been litigating in Montana and Delaware.

Both the Montana Action and the Delaware Action have now been transferred to and consolidated in the Texas Bankruptcy Court. PPL has filed its Answer and asserted a Counterclaim against the Talen and Riverstone entities, similar to the claims previously asserted in the Delaware Action, and has filed a motion for partial summary judgment that was heard on October 31, 2022. Mediation occurred on February 22, 2023 before Judge David R. Jones of the Texas Bankruptcy Court. The parties did not settle the case, and mediation was discontinued. On June 14, 2023, the Texas Bankruptcy Court entered an Order denying the defendants’ motion for partial summary judgment. The defendants anticipate trial will occur in the first quarter of 2024. Riverstone has filed a motion for summary judgement, which is set to be heard on August 15, 2023.

PPL believes that the 2014 distribution of proceeds was made in compliance with all applicable laws and that PPL Montana was solvent at all relevant times. Additionally, the agreements entered into in connection with the spinoff, which PPL and affiliates of Talen Energy and Riverstone negotiated and executed prior to the 2014 distribution, directly address the treatment of the proceeds from the sale of PPL Montana's hydroelectric generating facilities; in those agreements, Talen Energy and Riverstone definitively agreed that PPL was entitled to retain the proceeds.

PPL believes that it has meritorious defenses to the claims made in the Adversary Proceeding and intends to vigorously defend against this action. At this time, PPL cannot predict the outcome of the Adversary Proceeding or estimate the range of possible losses, if any, that PPL might incur as a result of the claims, although they could be material.

Narragansett Electric Litigation (PPL)

Energy Efficiency Programs Investigation

Narragansett Electric, while under the ownership of National Grid, performed an internal investigation into conduct associated with its energy efficiency programs. On June 27, 2022, the RIPUC opened a new docket (RIPUC Docket No. 22-05-EE) to investigate RIE’s actions and the actions of its National Grid employees during the time RIE was a National Grid USA affiliate being provided services by National Grid USA Service Company, Inc. relating to the manipulation of the reporting of invoices affecting the calculation of past energy efficiency shareholder incentives and the resulting impact on customers. The Rhode Island Attorney General and National Grid USA intervened in the docket.

On January 19, 2023, the Rhode Island Division of Public Utilities and Carriers (the Division) filed a motion to dismiss RIPUC Docket No. 22-05-EE without prejudice. As grounds for its motion, the Division stated that sufficient evidence exists in the docket to warrant an independent summary investigation by the Division, to include an audit of RIE, pursuant to Rhode Island General Laws Section 39-4-13. If the Division finds sufficient grounds, the Division may proceed to a formal hearing regarding the matters under investigation pursuant to Rhode Island General Laws Sections 39-4-14 and 39-4-15. Upon the conclusion of its investigation, the Division will provide the RIPUC with a report outlining the Division’s findings and final decision. On January 30, 2023, the Rhode Island Attorney General filed an objection to the Division’s motion to dismiss; RIE and National Grid each filed responses with the RIPUC requesting that any additional action taken by the RIPUC or the Division be considered after National Grid completes its internal investigation report, which National Grid filed with the RIPUC on March 10, 2023. On February 24, 2023, the Division initiated the independent summary investigation that it had referenced in its motion to dismiss RIPUC Docket No. 22-05-EE. The RIPUC held a hearing on March 28, 2023 to hear oral arguments regarding the Division’s motion to dismiss and subsequently denied the motion. RIPUC Docket No. 22-05-EE remains open and, in parallel, the Division’s summary investigation remains ongoing. At this time, it is not possible to predict the final outcome or determine the total amount of any additional liabilities that may be incurred by RIE in connection with RIPUC Docket No. 22-05-EE or the Division’s summary investigation. RIE does not expect this matter will have a material adverse effect on its results of operations, financial position or cash flows.

E.W. Brown Environmental Assessment (PPL and KU)

KU is undertaking extensive remedial measures at the E.W. Brown plant including closure of the former ash pond, implementation of a groundwater remedial action plan and performance of a corrective action plan including aquatic study of adjacent surface waters and risk assessment. The aquatic study and risk assessment are being undertaken pursuant to a 2017 agreed Order with the Kentucky Energy and Environment Cabinet (KEEC). KU conducted sampling of Herrington Lake in 2017 and 2018. In June 2019, KU submitted to the KEEC the required aquatic study and risk assessment, conducted by an independent third-party consultant, finding that discharges from the E.W. Brown plant have not had any significant impact on Herrington Lake and that the water in the lake is safe for recreational use and meets safe drinking water standards. On May 31, 2021, the KEEC approved the report and released a response to public comments. On August 6, 2021, KU submitted a Supplemental Remedial Alternatives Analysis report to the KEEC that outlines proposed additional fish, water, and sediment testing. On February 18, 2022, the KEEC provided approval to KU to proceed with the proposed sampling, which commenced in the spring of 2022. On November 17, 2022, KU submitted a Supplemental Performance Monitoring Report to the KEEC finding that there are no significant unaddressed risks to human health or the environment at the plant. KU revised the Supplemental Performance Monitoring Report on June 8, 2023 in response to KEEC comments from April 24, 2023.

Water/Waste (PPL, LG&E and KU)

ELGs

In 2015, the EPA finalized ELGs for wastewater discharge permits for new and existing steam electricity generating facilities. These guidelines require deployment of additional control technologies providing physical, chemical and biological treatment and mandate operational changes including "zero discharge" requirements for certain wastewaters. The implementation date for individual generating stations was to be determined by the states on a case-by-case basis according to criteria provided by the EPA. Legal challenges to the final rule were consolidated before the U.S. Court of Appeals for the Fifth Circuit. In April 2017, the EPA announced that it would grant petitions for reconsideration of the rule. In September 2017, the EPA issued a rule to postpone the compliance date for certain requirements. In October 2020, the EPA published final revisions to its best available technology standards for certain wastewaters and potential extensions to compliance dates (the Reconsideration Rule). In March 2023, the EPA released a proposed rule that would modify the 2020 ELG revisions. The proposed rule would increase the stringency of previous control technology and zero discharge requirements, revise certain exemptions for generating units planned for retirement, and require case-by-case limitations for legacy wastewaters based on the best professional judgment of the state regulators. Compliance with the Reconsideration Rule is required during the pendency of the rulemaking process. The proposed rule is currently under evaluation, but could potentially result in significant operational changes and additional controls for LG&E and KU plants. The ELGs are expected to be implemented by the states or applicable permitting authorities in the course of their normal permitting activities. LG&E and KU are currently implementing responsive compliance strategies and schedules. Certain aspects of these compliance plans and estimates relate to developments in state water quality standards, which are separate from the ELG rule or its implementation. Certain costs are included in the Registrants' capital plans and expected to be recovered from customers through rate recovery mechanisms, but additional costs and recovery will depend on further regulatory developments at the state level.

CCRs

In 2015, the EPA issued a final rule governing management of CCRs which include fly ash, bottom ash and sulfur dioxide scrubber wastes. The CCR Rule imposes extensive new requirements for certain CCR impoundments and landfills, including public notifications, location restrictions, design and operating standards, groundwater monitoring and corrective action requirements, and closure and post-closure care requirements, and specifies restrictions relating to the beneficial use of CCRs. In July 2018, the EPA issued a final rule extending the deadline for closure of certain impoundments and adopting other substantive changes. In August 2018, the D.C. Circuit Court of Appeals vacated and remanded portions of the CCR Rule. In December 2019, the EPA addressed certain deficiencies identified by the court and proposed amendments to change the closure deadline. In August 2020, the EPA published a final rule extending the deadline to initiate closure to April 11, 2021, while providing for certain extensions. The EPA is conducting ongoing rulemaking actions regarding various other amendments to the rule including potentially making the rule applicable to certain inactive impoundments and landfills not currently subject to the rule. Certain ongoing legal challenges to various provisions of the CCR Rule have been held in abeyance pending review by the EPA pursuant to the President's executive order. PPL, LG&E, and KU are monitoring the EPA’s ongoing efforts to refine and implement the regulatory program under the CCR Rule. In January 2022, the EPA issued several proposed regulatory determinations, facility notifications, and public announcements which indicate increased scrutiny by the EPA to determine the adequacy of measures taken by facility owners and operators to achieve closure of CCR surface impoundments and landfills. In particular, the agency indicated that it will focus on certain practices which it views as posing a threat of continuing groundwater contamination. On May 18, 2023, the EPA published a proposed rule establishing regulatory requirements for inactive surface impoundments at inactive electricity generation facilities. The EPA proposes to establish groundwater monitoring, corrective action, closure, and post-closure care requirements for all CCR management units at regulated CCR facilities regardless of how or when the CCR was placed. The proposed rule, if finalized, would require PPL to complete applicability determinations, implement site security measures, initiate weekly inspections and monthly monitoring of the impoundment, create a website, and complete hazard assessments and reports for its legacy impoundments within three months of the proposed rule’s effective date. Additionally, the proposed rule could potentially subject management units that have previously completed remedial action and closure and certain beneficial use projects to additional federal regulatory requirements. Future guidance, regulatory determinations, rulemakings, and other developments could potentially require revisions to current LG&E and KU compliance plans including additional monitoring and remediation at surface impoundments and landfills, the cost of which could be substantial. PPL, LG&E and KU are unable to predict the outcome of the ongoing litigation, rulemaking, and regulatory determinations or potential impacts on current LG&E and KU compliance plans. PPL, LG&E and KU are currently finalizing closure plans and schedules in accordance with existing regulations.

In January 2017, Kentucky issued a new state rule relating to CCR management, effective May 2017, aimed at reflecting the requirements of the federal CCR rule. As a result of a subsequent legal challenge, in January 2018, the Franklin County,

Kentucky Circuit Court issued an opinion invalidating certain procedural elements of the rule. LG&E and KU presently operate their facilities under continuing permits authorized under the former program and do not currently anticipate material impacts as a result of the judicial ruling. Associated costs are expected to be subject to rate recovery.

LG&E and KU received KPSC approval for a compliance plan providing for the closure of impoundments at the Mill Creek, Trimble County, E.W. Brown, and Ghent stations, and construction of process water management facilities at those plants. In addition to the foregoing measures required for compliance with the federal CCR rule, KU also received KPSC approval for its plans to close impoundments at the retired Green River, Pineville and Tyrone plants to comply with applicable state law. LG&E and KU have completed planned closure measures at most of the subject impoundments and have commenced post closure groundwater monitoring as required at those facilities. LG&E and KU generally expect to complete all impoundment closures within five years of commencement, although a longer period may be required to complete closure of some facilities. Associated costs are expected to be subject to rate recovery.

In connection with the final CCR rule, LG&E and KU recorded adjustments to existing AROs beginning in 2015 and continue to record adjustments as required. See Note 15 for additional information. Further changes to AROs, current capital plans or operating costs may be required as estimates are refined based on closure developments, groundwater monitoring results, and regulatory or legal proceedings. Costs relating to this rule are expected to be subject to rate recovery.

Superfund and Other Remediation

(All Registrants)

The Registrants are potentially responsible for investigating and remediating contamination under the federal Superfund program and similar state programs. Actions are under way at certain sites including former coal gas manufacturing plants in Pennsylvania, Rhode Island and Kentucky previously owned or operated by, or currently owned by predecessors or affiliates of, PPL subsidiaries.

Depending on the outcome of investigations at identified sites where investigations have not begun or been completed, or developments at sites for which information is incomplete, additional costs of remediation could be incurred. PPL, PPL Electric, LG&E and KU lack sufficient information about such additional sites to estimate any potential liability or range of reasonably possible losses, if any, related to these sites. Such costs, however, are not currently expected to be significant.

The EPA is evaluating the risks associated with polycyclic aromatic hydrocarbons and naphthalene, chemical by-products of coal gas manufacturing. As a result, individual states may establish stricter standards for water quality and soil cleanup, that could require several PPL subsidiaries to take more extensive assessment and remedial actions at former coal gas manufacturing plants. The Registrants cannot reasonably estimate a range of possible losses, if any, related to these matters.

(PPL and PPL Electric)

PPL Electric is a potentially responsible party for a share of clean-up costs at certain sites including the Columbia Gas Plant site and the Brodhead site. Cleanup actions have been or are being undertaken at these sites as requested by governmental agencies, the costs of which have not been and are not expected to be significant to PPL Electric.

As of June 30, 2023 and December 31, 2022, PPL Electric had a recorded liability of $11 million, representing its best estimate of the probable loss incurred to remediate the sites identified above.

(PPL)

RIE is a potentially responsible party for a share of clean-up costs at certain sites including former manufactured gas plant (MGP) facilities formerly owned by the Blackstone Valley Gas and Electric Company and the Rhode Island gas distribution assets of the New England Gas division of Southern Union Company and electric operations at certain RIE facilities. RIE is currently investigating and remediating, as necessary, those MGP sites and certain other properties under agreements with governmental agencies, the costs of which have not been and are not expected to be significant to PPL.

As of June 30, 2023 and December 31, 2022, PPL had a recorded liability of $100 million, representing its best estimate of the remaining costs of RIE's environmental remediation activities. These undiscounted costs are expected to be incurred over approximately 30 years and generally to be subject to rate recovery. However, remediation costs for each site may be materially higher than estimated, depending on changing technologies and regulatory standards, selected end uses for each site, and actual environmental conditions encountered. RIE has recovered amounts from certain insurers and potentially responsible parties, and, where appropriate, may seek additional recovery from other insurers and from other potentially responsible parties, but it is uncertain whether, and to what extent, such efforts will be successful.

The RIPUC has approved two settlement agreements that provide for rate recovery of qualified remediation costs of certain contaminated sites located in Rhode Island and Massachusetts. Rate-recoverable contributions for electric operations of approximately $3 million are added annually to RIE's Environmental Response Fund, established with RIPUC approval in March 2000 to address such costs, along with interest and any recoveries from insurance carriers and other third parties. In addition, RIE recovers approximately $1 million annually for gas operations under a distribution adjustment charge in which the qualified remediation costs are amortized over 10 years. See Note 6 for additional information on RIE's recorded environmental regulatory assets and liabilities.

Regulatory Issues

(All Registrants)

See Note 6 for information on regulatory matters related to utility rate regulation.

Electricity - Reliability Standards

The NERC is responsible for establishing and enforcing mandatory reliability standards (Reliability Standards) regarding the bulk electric system in North America. The FERC oversees this process and independently enforces the Reliability Standards.

The Reliability Standards have the force and effect of law and apply to certain users of the bulk electric system, including electric utility companies, generators and marketers. Under the Federal Power Act, the FERC may assess civil penalties for certain violations.

PPL Electric, LG&E, KU and RIE monitor their compliance with the Reliability Standards and self-report or self-log potential violations of applicable reliability requirements whenever identified, and submit accompanying mitigation plans, as required. The resolution of a small number of potential violations is pending. Penalties incurred to date have not been significant. Any Regional Reliability Entity determination concerning the resolution of violations of the Reliability Standards remains subject to the approval of the NERC and the FERC.

In the course of implementing their programs to ensure compliance with the Reliability Standards by those PPL affiliates subject to the standards, certain other instances of potential non-compliance may be identified from time to time. The Registrants cannot predict the outcome of these matters, and an estimate or range of possible losses cannot be determined.

Gas - Security Directives (PPL and LG&E)

In May and July of 2021, the Department of Homeland Security’s (DHS) Transportation Security Administration (TSA) released two security directives applicable to certain notified owners and operators of natural gas pipeline facilities (including local distribution companies) that the TSA has determined to be critical. The TSA has determined that LG&E is within the scope of the directive, while RIE has not been notified of this distinction. The first security directive required notified owners/operators to implement cybersecurity incident reporting to the DHS, designate a cybersecurity coordinator, and perform a gap assessment of current entity cybersecurity practices against certain voluntary TSA security guidelines and report relevant results and proposed mitigation to applicable DHS agencies. The second security directive, revised in July of 2023, requires refinement of the cybersecurity implementation plan and the cybersecurity assessment plan. LG&E does not believe the security directives have had or will have a significant impact on LG&E’s operations or financial condition.

Other

Guarantees and Other Assurances

(All Registrants)

In the normal course of business, the Registrants enter into agreements that provide financial performance assurance to third parties on behalf of certain subsidiaries. Examples of such agreements include: guarantees, stand-by letters of credit issued by financial institutions and surety bonds issued by insurance companies. These agreements are entered into primarily to support or enhance the creditworthiness attributed to a subsidiary on a stand-alone basis or to facilitate the commercial activities in which these subsidiaries engage.

(PPL)

PPL fully and unconditionally guarantees all of the debt securities and loan obligations of PPL Capital Funding.

(All Registrants)

The table below details guarantees provided as of June 30, 2023. "Exposure" represents the estimated maximum potential amount of future payments that could be required to be made under the guarantee. The Registrants believe the probability of expected payment/performance under each of these guarantees is remote, except for the guarantees and indemnifications related to the sale of Safari Holdings, which PPL believes are reasonably possible but not probable of occurring. For reporting purposes, on a consolidated basis, the guarantees of PPL include the guarantees of its subsidiary Registrants.

	Exposure at June 30, 2023			Expiration Date
PPL
Indemnifications related to certain tax liabilities related to the sale of the U.K. utility business	£	50	(a)	2028
PPL guarantee of Safari payment obligations under certain sale/leaseback financing transactions related to the sale of Safari Holdings	$	137	(b)	2028
PPL guarantee of Safari payment obligations under certain PPAs related to the sale of Safari Holdings	55		(c)
Indemnifications for losses suffered related to items not covered by Aspen Power's representation and warranty insurance associated with the sale of Safari Holdings	140		(d)	2028
LG&E and KU
LG&E and KU obligation of shortfall related to OVEC			(e)

(a)PPL WPD Limited entered into a Tax Deed dated June 9, 2021, in which it agreed to a tax indemnity regarding certain potential tax liabilities of the entities sold with respect to periods prior to the completion of the sale, subject to customary exclusions and limitations. Because National Grid Holdings One plc, the buyer, agreed to purchase indemnity insurance, the amount of the cap on the indemnity for these liabilities is £1, except with respect to certain surrenders of tax losses, for which the amount of the cap on the indemnity is £50 million.

(b)PPL guaranteed the payment obligations of Safari under certain sale/leaseback financing transactions executed by Safari. These guarantees will remain in place until Safari exercises its option to buy-out the projects under the sale/leaseback financings by the year 2028. Safari will indemnify PPL for any payments made by PPL or claims against PPL under the sale/leaseback transaction guarantees up to $25 million.

(c)PPL guaranteed the payment obligations of Safari under certain PPAs executed by Safari. Aspen Power is expected to replace these guarantees and retain liability for any payments made by PPL or claims against PPL under any guarantee that is not replaced.

(d)Aspen Power has obtained representation and warranty insurance, therefore, PPL generally has no liability for its representations and warranties under the agreement except for losses suffered related to items not covered. Pursuant to the agreement, expiration of these indemnifications range from 18 months to 6 years from the date of the closing of the transaction, and PPL’s aggregate liability for these claims will not exceed $140 million, pursuant to the agreement, subject to certain adjustments plus the support obligations provided by PPL under sale-leaseback financings and PPAs that will be replaced by Aspen Power.

(e)Pursuant to the OVEC power purchase contract, LG&E and KU are obligated to pay for their share of OVEC's excess debt service, post-retirement, and decommissioning costs, as well as any shortfall from amounts included within a demand charge designed and expected to cover these costs over the term of the contract. PPL's proportionate share of OVEC's outstanding debt was $89 million at June 30, 2023, consisting of LG&E's share of $62 million and KU's share of $27 million. The maximum exposure and the expiration date of these potential obligations are not presently determinable. See "Energy Purchase Commitments" in Note 14 in PPL's, LG&E's and KU's 2022 Form 10-K for additional information on the OVEC power purchase contract.

The Registrants provide other miscellaneous guarantees through contracts entered into in the normal course of business. These guarantees are primarily in the form of indemnification or warranties related to services or equipment and vary in duration. The amounts of these guarantees often are not explicitly stated, and the overall maximum amount of the obligation under such guarantees cannot be reasonably estimated. Historically, no significant payments have been made with respect to these types of guarantees and the probability of payment/performance under these guarantees is generally remote.

PPL, on behalf of itself and certain of its subsidiaries, maintains insurance that covers liability assumed under contract for bodily injury and property damage. The coverage provides maximum aggregate coverage of $225 million. This insurance may be applicable to obligations under certain of these contractual arrangements.

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Related Party Transactions

6 Months Ended

Jun. 30, 2023

PPL Electric Utilities Corp [Member]

Related Party Transactions [Line Items]

Related Party Transactions

11. Related Party Transactions

Support Costs (PPL Electric, LG&E and KU)

PPL Services and LKS provide the Registrants, their respective subsidiaries and each other with administrative, management and support services. For all services companies, the costs of directly assignable and attributable services are charged to the respective recipients as direct support costs. General costs that cannot be directly attributed to a specific entity are allocated and charged to the respective recipients as indirect support costs. PPL Services and LKS use a three-factor methodology that includes the applicable recipients' invested capital, operation and maintenance expenses and number of employees to allocate indirect costs. PPL Services and LKS charged the following amounts for the periods ended June 30, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods that are believed to be reasonable.

	Three Months				Six Months
	2023		2022		2023		2022
PPL Electric from PPL Services	$	55	$	60	$	114	$	121
LG&E from LKS	28		41		60		80
LG&E from PPL Services	12		—		20		—
KU from LKS	34		42		75		86
KU from PPL Services	13		—		23		—

In addition to the charges for services noted above, LKS makes payments on behalf of LG&E and KU for fuel purchases and other costs for products or services provided by third-parties. LG&E and KU also provide services to each other and to LKS. Billings between LG&E and KU relate to labor and overheads associated with union and hourly employees performing work for the other company, charges related to jointly-owned generating units and other miscellaneous charges. Tax settlements between PPL and LG&E and KU are reimbursed through LKS.

Intercompany Borrowings

(PPL Electric)

CEP Reserves maintains a $500 million revolving line of credit with a PPL Electric subsidiary. At June 30, 2023 and December 31, 2022, CEP Reserves had no borrowings outstanding. The interest rates on borrowings are equal to an adjusted one-month SOFR plus a spread. Interest income is reflected in "Interest Income from Affiliate" on the applicable Income Statements.

(LG&E and KU)

LG&E participates in an intercompany money pool agreement whereby LKE and/or KU make available to LG&E funds up to the difference between LG&E's FERC borrowing limit and LG&E's commercial paper issued at an interest rate based on the lower of a market index of commercial paper issues and two additional rate options based on SOFR. At June 30, 2023, LG&E's money pool unused capacity was $729 million. At June 30, 2023, LG&E borrowings outstanding from KU and/or LKE were not significant. At December 31, 2022, LG&E had no borrowings outstanding from KU and/or LKE.

KU participates in an intercompany money pool agreement whereby LKE and/or LG&E make available to KU funds up to the difference between KU's FERC borrowing limit and KU's commercial paper issued at an interest rate based on the lower of a market index of commercial paper issues and two additional rate options based on SOFR. At June 30, 2023, KU's money pool unused capacity was $550 million. At June 30, 2023, KU had borrowings outstanding from LG&E and/or LKE of $8 million. These balances are reflected in "Notes payable to affiliates" on the KU Balance Sheets. At December 31, 2022, KU had no borrowings outstanding from LG&E and/or LKE.

VEBA Funds Receivable (PPL Electric)

In 2018, PPL received a favorable private letter ruling from the IRS permitting a transfer of excess funds from the PPL Bargaining Unit Retiree Health Plan VEBA to a new subaccount within the VEBA, to be used to pay medical claims of active

bargaining unit employees. Based on PPL Electric's participation in PPL’s Other Postretirement Benefit plan, PPL Electric was allocated a portion of the excess funds from PPL Services. These funds have been recorded as an intercompany receivable on PPL Electric's Balance Sheets. The receivable balance decreases as PPL Electric pays incurred medical claims and is reimbursed by PPL Services. There was no intercompany receivable balance associated with these funds as of June 30, 2023, which would be reflected in "Accounts receivable from affiliates" on the PPL Electric Balance Sheets. The intercompany receivable balance associated with these funds was immaterial as of December 31, 2022.

Louisville Gas And Electric Co [Member]

Related Party Transactions [Line Items]

Related Party Transactions

11. Related Party Transactions

Support Costs (PPL Electric, LG&E and KU)

PPL Services and LKS provide the Registrants, their respective subsidiaries and each other with administrative, management and support services. For all services companies, the costs of directly assignable and attributable services are charged to the respective recipients as direct support costs. General costs that cannot be directly attributed to a specific entity are allocated and charged to the respective recipients as indirect support costs. PPL Services and LKS use a three-factor methodology that includes the applicable recipients' invested capital, operation and maintenance expenses and number of employees to allocate indirect costs. PPL Services and LKS charged the following amounts for the periods ended June 30, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods that are believed to be reasonable.

	Three Months				Six Months
	2023		2022		2023		2022
PPL Electric from PPL Services	$	55	$	60	$	114	$	121
LG&E from LKS	28		41		60		80
LG&E from PPL Services	12		—		20		—
KU from LKS	34		42		75		86
KU from PPL Services	13		—		23		—

In addition to the charges for services noted above, LKS makes payments on behalf of LG&E and KU for fuel purchases and other costs for products or services provided by third-parties. LG&E and KU also provide services to each other and to LKS. Billings between LG&E and KU relate to labor and overheads associated with union and hourly employees performing work for the other company, charges related to jointly-owned generating units and other miscellaneous charges. Tax settlements between PPL and LG&E and KU are reimbursed through LKS.

Intercompany Borrowings

(PPL Electric)

CEP Reserves maintains a $500 million revolving line of credit with a PPL Electric subsidiary. At June 30, 2023 and December 31, 2022, CEP Reserves had no borrowings outstanding. The interest rates on borrowings are equal to an adjusted one-month SOFR plus a spread. Interest income is reflected in "Interest Income from Affiliate" on the applicable Income Statements.

(LG&E and KU)

LG&E participates in an intercompany money pool agreement whereby LKE and/or KU make available to LG&E funds up to the difference between LG&E's FERC borrowing limit and LG&E's commercial paper issued at an interest rate based on the lower of a market index of commercial paper issues and two additional rate options based on SOFR. At June 30, 2023, LG&E's money pool unused capacity was $729 million. At June 30, 2023, LG&E borrowings outstanding from KU and/or LKE were not significant. At December 31, 2022, LG&E had no borrowings outstanding from KU and/or LKE.

KU participates in an intercompany money pool agreement whereby LKE and/or LG&E make available to KU funds up to the difference between KU's FERC borrowing limit and KU's commercial paper issued at an interest rate based on the lower of a market index of commercial paper issues and two additional rate options based on SOFR. At June 30, 2023, KU's money pool unused capacity was $550 million. At June 30, 2023, KU had borrowings outstanding from LG&E and/or LKE of $8 million. These balances are reflected in "Notes payable to affiliates" on the KU Balance Sheets. At December 31, 2022, KU had no borrowings outstanding from LG&E and/or LKE.

VEBA Funds Receivable (PPL Electric)

In 2018, PPL received a favorable private letter ruling from the IRS permitting a transfer of excess funds from the PPL Bargaining Unit Retiree Health Plan VEBA to a new subaccount within the VEBA, to be used to pay medical claims of active

bargaining unit employees. Based on PPL Electric's participation in PPL’s Other Postretirement Benefit plan, PPL Electric was allocated a portion of the excess funds from PPL Services. These funds have been recorded as an intercompany receivable on PPL Electric's Balance Sheets. The receivable balance decreases as PPL Electric pays incurred medical claims and is reimbursed by PPL Services. There was no intercompany receivable balance associated with these funds as of June 30, 2023, which would be reflected in "Accounts receivable from affiliates" on the PPL Electric Balance Sheets. The intercompany receivable balance associated with these funds was immaterial as of December 31, 2022.

Kentucky Utilities Co [Member]

Related Party Transactions [Line Items]

Related Party Transactions

11. Related Party Transactions

Support Costs (PPL Electric, LG&E and KU)

PPL Services and LKS provide the Registrants, their respective subsidiaries and each other with administrative, management and support services. For all services companies, the costs of directly assignable and attributable services are charged to the respective recipients as direct support costs. General costs that cannot be directly attributed to a specific entity are allocated and charged to the respective recipients as indirect support costs. PPL Services and LKS use a three-factor methodology that includes the applicable recipients' invested capital, operation and maintenance expenses and number of employees to allocate indirect costs. PPL Services and LKS charged the following amounts for the periods ended June 30, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods that are believed to be reasonable.

	Three Months				Six Months
	2023		2022		2023		2022
PPL Electric from PPL Services	$	55	$	60	$	114	$	121
LG&E from LKS	28		41		60		80
LG&E from PPL Services	12		—		20		—
KU from LKS	34		42		75		86
KU from PPL Services	13		—		23		—

In addition to the charges for services noted above, LKS makes payments on behalf of LG&E and KU for fuel purchases and other costs for products or services provided by third-parties. LG&E and KU also provide services to each other and to LKS. Billings between LG&E and KU relate to labor and overheads associated with union and hourly employees performing work for the other company, charges related to jointly-owned generating units and other miscellaneous charges. Tax settlements between PPL and LG&E and KU are reimbursed through LKS.

Intercompany Borrowings

(PPL Electric)

CEP Reserves maintains a $500 million revolving line of credit with a PPL Electric subsidiary. At June 30, 2023 and December 31, 2022, CEP Reserves had no borrowings outstanding. The interest rates on borrowings are equal to an adjusted one-month SOFR plus a spread. Interest income is reflected in "Interest Income from Affiliate" on the applicable Income Statements.

(LG&E and KU)

LG&E participates in an intercompany money pool agreement whereby LKE and/or KU make available to LG&E funds up to the difference between LG&E's FERC borrowing limit and LG&E's commercial paper issued at an interest rate based on the lower of a market index of commercial paper issues and two additional rate options based on SOFR. At June 30, 2023, LG&E's money pool unused capacity was $729 million. At June 30, 2023, LG&E borrowings outstanding from KU and/or LKE were not significant. At December 31, 2022, LG&E had no borrowings outstanding from KU and/or LKE.

KU participates in an intercompany money pool agreement whereby LKE and/or LG&E make available to KU funds up to the difference between KU's FERC borrowing limit and KU's commercial paper issued at an interest rate based on the lower of a market index of commercial paper issues and two additional rate options based on SOFR. At June 30, 2023, KU's money pool unused capacity was $550 million. At June 30, 2023, KU had borrowings outstanding from LG&E and/or LKE of $8 million. These balances are reflected in "Notes payable to affiliates" on the KU Balance Sheets. At December 31, 2022, KU had no borrowings outstanding from LG&E and/or LKE.

VEBA Funds Receivable (PPL Electric)

In 2018, PPL received a favorable private letter ruling from the IRS permitting a transfer of excess funds from the PPL Bargaining Unit Retiree Health Plan VEBA to a new subaccount within the VEBA, to be used to pay medical claims of active

bargaining unit employees. Based on PPL Electric's participation in PPL’s Other Postretirement Benefit plan, PPL Electric was allocated a portion of the excess funds from PPL Services. These funds have been recorded as an intercompany receivable on PPL Electric's Balance Sheets. The receivable balance decreases as PPL Electric pays incurred medical claims and is reimbursed by PPL Services. There was no intercompany receivable balance associated with these funds as of June 30, 2023, which would be reflected in "Accounts receivable from affiliates" on the PPL Electric Balance Sheets. The intercompany receivable balance associated with these funds was immaterial as of December 31, 2022.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

13. Fair Value Measurements

(All Registrants)

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). A market approach (generally, data from market transactions), an income approach (generally, present value techniques and option pricing models) and/or a cost approach (generally, replacement cost) are used to measure the fair value of an asset or liability, as appropriate. These valuation approaches incorporate inputs such as observable, independent market data and/or unobservable data that management believes are predicated on the assumptions market participants would use to price an asset or liability. These inputs may incorporate, as applicable, certain risks such as nonperformance risk, which includes credit risk. The fair value of a group of financial assets and liabilities is measured on a net basis. See Note 1 in each Registrant's 2022 Form 10-K for information on the levels in the fair value hierarchy.

Recurring Fair Value Measurements

The assets and liabilities measured at fair value were:

	June 30, 2023								December 31, 2022
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
PPL
Assets
Cash and cash equivalents	$	326	$	326	$	—	$	—	$	356	$	356	$	—	$	—
Restricted cash and cash equivalents (a)	1		1		—		—		1		1		—		—
Total Cash, Cash Equivalents and Restricted Cash (b)	327		327		—		—		357		357		—		—
Special use funds (a):
Money market fund	1		1		—		—		1		1		—		—
Commingled debt fund measured at NAV (c)	11		—		—		—		13		—		—		—
Commingled equity fund measured at NAV (c)	10		—		—		—		11		—		—		—
Total special use funds	22		1		—		—		25		1		—		—
Price risk management assets (d):
Gas contracts	1		—		1		—		25		—		25		—
Total assets	$	350	$	328	$	1	$	—	$	407	$	358	$	25	$	—
Liabilities
Price risk management liabilities (d):
Interest rate swaps	$	7	$	—	$	7	$	—	$	7	$	—	$	7	$	—
Gas contracts	(23)		—		(23)		—		66		—		10		56
Total price risk management liabilities	$	(16)	$	—	$	(16)	$	—	$	73	$	—	$	17	$	56
PPL Electric
Assets
Cash and cash equivalents	$	26	$	26	$	—	$	—	$	25	$	25	$	—	$	—
Total assets	$	26	$	26	$	—	$	—	$	25	$	25	$	—	$	—
LG&E
Assets
Cash and cash equivalents	$	7	$	7	$	—	$	—	$	93	$	93	$	—	$	—
Total assets	$	7	$	7	$	—	$	—	$	93	$	93	$	—	$	—
Liabilities
Price risk management liabilities:
Interest rate swaps	$	7	$	—	$	7	$	—	$	7	$	—	$	7	$	—
Total price risk management liabilities	$	7	$	—	$	7	$	—	$	7	$	—	$	7	$	—
KU
Assets
Cash and cash equivalents	$	9	$	9	$	—	$	—	$	21	$	21	$	—	$	—
Total assets	$	9	$	9	$	—	$	—	$	21	$	21	$	—	$	—

(a)Included in "Other current assets" on the Balance Sheets.

(b)Total Cash, Cash Equivalents and Restricted Cash provides a reconciliation of these items reported within the Balance Sheets to the sum shown on the Statements of Cash Flows.

(c)In accordance with accounting guidance, certain investments that are measured at fair value using net asset value per share (NAV), or its equivalent, have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Balance Sheets.

(d)Current portion is included in "Other current asset" and "Other current liabilities" and noncurrent portion is included in "Other noncurrent assets" and "Other deferred credits and noncurrent liabilities" on the Balance Sheets.

A reconciliation of net assets and liabilities classified as Level 3 for the six months ended June 30 is as follows:

	Gas Contracts
2023
Balance at beginning of period	$	56
Settlements	(56)
Balance at end of period	$	—

Special Use Funds (PPL)

The special use funds are investments restricted for paying active union employee medical costs. In 2018, PPL received a favorable private letter ruling from the IRS permitting a transfer of excess funds from the PPL Bargaining Unit Retiree Health Plan VEBA to a new subaccount within the VEBA to be used to pay medical claims of active bargaining unit employees. The funds are invested primarily in commingled debt and equity funds measured at NAV and are classified as investments in equity securities. Changes in the fair value of the funds are recorded to the Statements of Income.

Price Risk Management Assets/Liabilities

Interest Rate Swaps (PPL, LG&E and KU)

To manage interest rate risk, PPL, LG&E and KU use interest rate contracts such as forward-starting swaps, floating-to-fixed swaps and fixed-to-floating swaps. An income approach is used to measure the fair value of these contracts, utilizing readily observable inputs, such as forward interest rates (e.g., SOFR and government security rates), as well as inputs that may not be observable, such as credit valuation adjustments. In certain cases, market information cannot practicably be obtained to value credit risk and therefore internal models are relied upon. These models use projected probabilities of default and estimated recovery rates based on historical observances. When the credit valuation adjustment is significant to the overall valuation, the contracts are classified as Level 3.

Gas Contracts (PPL)

To manage gas commodity price risk associated with natural gas purchases, RIE utilizes over-the-counter (OTC) gas swaps contracts with pricing inputs obtained from the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE), except in cases where the ICE publishes seasonal averages or where there were no transactions within the last seven days. RIE may utilize discounting based on quoted interest rate curves, including consideration of non-performance risk, and may include a liquidity reserve calculated based on bid/ask spread. Substantially all of these price curves are observable in the marketplace throughout at least 95% of the remaining contractual quantity, or they could be constructed from market observable curves with correlation coefficients of 95% or higher. These contracts are classified as Level 2.

RIE also utilizes gas option and purchase and capacity transactions, which are valued based on internally developed models. Industry-standard valuation techniques, such as the Black-Scholes pricing model, are used for valuing such instruments. For valuations that include both observable and unobservable inputs, if the unobservable input is determined to be significant to the overall inputs, the entire valuation is classified as Level 3. This includes derivative instruments valued using indicative price quotations whose contract tenure extends into unobservable periods. In instances where observable data is unavailable, consideration is given to the assumptions that market participants would use in valuing the asset or liability. This includes assumptions about market risks such as liquidity, volatility, and contract duration. Such instruments are classified as in Level 3 as the model inputs generally are not observable. RIE considers non-performance risk and liquidity risk in the valuation of derivative instruments classified as Level 2 and Level 3.

The significant unobservable inputs used in the fair value measurement of the gas derivative instruments are implied volatility and gas forward curves. A relative change in commodity price at various locations underlying the open positions can result in significantly different fair value estimates.

Financial Instruments Not Recorded at Fair Value (All Registrants)

Long-term debt is classified as Level 2. The effect of third-party credit enhancements is not included in the fair value measurement. The carrying amounts of long-term debt on the Balance Sheets and their estimated fair values are set forth below.

	June 30, 2023				December 31, 2022
	Carrying Amount (a)		Fair Value		Carrying Amount (a)		Fair Value
PPL	$	14,572	$	13,613	$	13,243	$	12,239
PPL Electric	4,655		4,432		4,486		4,259
LG&E	2,404		2,236		2,307		2,128
KU	3,003		2,722		2,920		2,616

(a)Amounts are net of debt issuance costs.

The carrying amounts of other current financial instruments (except for long-term debt due within one year) approximate their fair values because of their short-term nature.

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Derivative Instruments and Hedging Activities

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

14. Derivative Instruments and Hedging Activities

(All Registrants)

Risk Management Objectives

PPL has a risk management policy approved by the Board of Directors to manage market risk associated with commodities, interest rates on debt issuances (including price, liquidity and volumetric risk) and credit risk (including non-performance risk and payment default risk). The Risk Management Committee, comprised of senior management and chaired by the Senior Director-Risk Management, oversees the risk management function. Key risk control activities designed to ensure compliance with the risk policy and detailed programs include, but are not limited to, credit review and approval, validation of transactions, verification of risk and transaction limits, value-at-risk analyses (VaR, a statistical model that attempts to estimate the value of potential loss over a given holding period under normal market conditions at a given confidence level) and the coordination and reporting of the Enterprise Risk Management program.

Market Risk

Market risk includes the potential loss that may be incurred as a result of price changes associated with a particular financial or commodity instrument as well as market liquidity and volumetric risks. Forward contracts, futures contracts, options, swaps and structured transactions are utilized as part of risk management strategies to minimize unanticipated fluctuations in earnings caused by changes in commodity prices and interest rates. Many of these contracts meet the definition of a derivative. All derivatives are recognized on the Balance Sheets at their fair value, unless NPNS is elected.

The following summarizes the market risks that affect PPL and its subsidiaries.

Interest Rate Risk

•PPL and its subsidiaries are exposed to interest rate risk associated with forecasted fixed-rate and existing floating-rate debt issuances. PPL and LG&E utilize over-the-counter interest rate swaps to limit exposure to market fluctuations on floating-rate debt. PPL, LG&E and KU utilize forward starting interest rate swaps to hedge changes in benchmark interest rates, when appropriate, in connection with future debt issuance.

•PPL and its subsidiaries are exposed to interest rate risk associated with debt securities and derivatives held by defined benefit plans. This risk is significantly mitigated to the extent that the plans are sponsored at, or sponsored on behalf of, the regulated utilities due to the recovery methods in place.

Commodity Price Risk

PPL is exposed to commodity price risk through its subsidiaries as described below.

•PPL Electric is required to purchase electricity to fulfill its obligation as a PLR. Potential commodity price risk is mitigated through its PAPUC-approved cost recovery mechanism and full-requirement supply agreements to serve its PLR customers which transfer the risk to energy suppliers.

•LG&E's and KU's rates include certain mechanisms for fuel, fuel-related expenses and energy purchases. In addition, LG&E's rates include a mechanism for natural gas supply costs. These mechanisms generally provide for timely recovery of market price fluctuations associated with these costs.

•RIE utilizes derivative instruments pursuant to its RIPUC-approved plan to manage commodity price risk associated with its natural gas purchases. RIE's commodity price risk management strategy is to reduce fluctuations in firm gas sales prices to its customers. RIE's costs associated with derivatives instruments are recoverable through its RIPUC-approved cost recovery mechanisms. RIE is required to purchase electricity to fulfill its obligation to provide Last Resort Service (LRS). Potential commodity price risk is mitigated through its RIPUC-approved cost recovery mechanisms and full requirements service agreements to serve LRS customers, which transfer the risk to energy suppliers. RIE is required to contract through long-term agreements for clean energy supply under the Rhode Island Renewable Energy Growth program and Long-term Clean Energy Standard. Potential commodity price risk is mitigated through its RIPUC-approved cost recovery mechanisms, which true-up cost differences between contract prices and market prices.

Volumetric Risk

Volumetric risk is the risk related to the changes in volume of retail sales due to weather, economic conditions or other factors. PPL is exposed to volumetric risk through its subsidiaries as described below:

•PPL Electric, LG&E and KU are exposed to volumetric risk on retail sales, mainly due to weather and other economic conditions for which there is limited mitigation between rate cases.

•RIE is exposed to volumetric risk, which is significantly mitigated by regulatory mechanisms. RIE's electric and gas distribution rates both have a revenue decoupling mechanism, which allows for annual adjustments to RIE's delivery rates.

Equity Securities Price Risk

•PPL and its subsidiaries are exposed to equity securities price risk associated with the fair value of the defined benefit plans' assets. This risk is significantly mitigated due to the recovery methods in place.

•PPL is exposed to equity securities price risk from future stock sales and/or purchases.

Credit Risk

Credit risk is the potential loss that may be incurred due to a counterparty's non-performance.

PPL is exposed to credit risk from "in-the-money" transactions with counterparties as well as additional credit risk through certain of its subsidiaries, as discussed below.

In the event a supplier of PPL, PPL Electric, LG&E or KU defaults on its contractual obligation, those Registrants would be required to seek replacement power or replacement fuel in the market. In general, subject to regulatory review or other processes, appropriate incremental costs incurred by these entities would be recoverable from customers through applicable rate mechanisms, thereby mitigating the financial risk for these entities.

PPL and its subsidiaries have credit policies in place to manage credit risk, including the use of an established credit approval process, daily monitoring of counterparty positions and the use of master netting agreements or provisions. These agreements generally include credit mitigation provisions, such as margin, prepayment or collateral requirements. PPL and its subsidiaries may request additional credit assurance, in certain circumstances, in the event that the counterparties' credit ratings fall below investment grade, their tangible net worth falls below specified percentages or their exposures exceed an established credit limit.

Master Netting Arrangements (PPL, LG&E and KU)

Net derivative positions on the balance sheets are not offset against the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) under master netting arrangements.

PPL had no obligation to return or post cash collateral under master netting arrangements at June 30, 2023 and December 31, 2022.

LG&E and KU had no obligation to return or post cash collateral under master netting arrangements at June 30, 2023 and December 31, 2022.

See "Offsetting Derivative Instruments" below for a summary of derivative positions presented in the balance sheets where a right of setoff exists under these arrangements.

Interest Rate Risk

(All Registrants)

PPL and its subsidiaries issue debt to finance their operations, which exposes them to interest rate risk. A variety of financial derivative instruments are utilized to adjust the mix of fixed and floating interest rates in their debt portfolios, adjust the duration of the debt portfolios and lock in benchmark interest rates in anticipation of future financing, when appropriate. Risk limits under PPL's risk management program are designed to balance risk exposure to volatility in interest expense and changes in the fair value of the debt portfolio due to changes in benchmark interest rates. In addition, the interest rate risk of certain subsidiaries is potentially mitigated as a result of the existing regulatory framework or the timing of rate cases.

Cash Flow Hedges (PPL)

Interest rate risks include exposure to adverse interest rate movements for outstanding variable rate debt and for future anticipated financings. Financial interest rate swap contracts that qualify as cash flow hedges may be entered into to hedge floating interest rate risk associated with both existing and anticipated debt issuances. PPL had no such contracts at June 30, 2023.

Cash flow hedges are discontinued if it is no longer probable that the original forecasted transaction will occur by the end of the originally specified time period and any amounts previously recorded in AOCI are reclassified into earnings once it is determined that the hedged transaction is not probable of occurring.

For the three and six months ended June 30, 2023 and 2022, PPL had no cash flow hedges reclassified into earnings associated with discontinued cash flow hedges.

At June 30, 2023, the amount of accumulated net unrecognized after-tax gains (losses) on qualifying derivatives expected to be reclassified into earnings during the next 12 months is insignificant. Amounts are reclassified as the hedged interest expense is recorded.

Economic Activity (PPL and LG&E)

LG&E enters into interest rate swap contracts that economically hedge interest payments. Because realized gains and losses from the swaps, including terminated swap contracts, are recoverable through regulated rates, any subsequent changes in fair value of these derivatives are included in regulatory assets or liabilities until they are realized as interest expense. Realized gains and losses are recognized in "Interest Expense" on the Statements of Income at the time the underlying hedged interest expense is recorded. At June 30, 2023, LG&E held contracts with a notional amount of $64 million that mature in 2033.

Commodity Price Risk (PPL)

Economic Activity

RIE enters into derivative contracts that economically hedge natural gas purchases. Realized gains and losses from the derivatives are recoverable through regulated rates, therefore subsequent changes in fair value are included in regulatory assets or liabilities until they are realized as purchased gas. Realized gains and losses are recognized in "Energy Purchases" on the Statements of Income upon settlement of the contracts. At June 30, 2023, RIE held contracts with notional volumes of 45 Bcf that range in maturity through 2025.

Accounting and Reporting

(All Registrants)

All derivative instruments are recorded at fair value on the Balance Sheet as an asset or liability unless NPNS is elected. NPNS contracts include certain full requirement purchase contracts and other physical purchase contracts. Changes in the fair value of derivatives not designated as NPNS are recognized in earnings unless specific hedge accounting criteria are met and designated as such, except for the changes in fair values of LG&E's interest rate swaps and certain RIE commodity gas contracts that are recognized as regulatory assets or regulatory liabilities. See Note 6 for amounts recorded in regulatory assets and regulatory liabilities at June 30, 2023 and December 31, 2022.

See Note 1 in each Registrant's 2022 Form 10-K for additional information on accounting policies related to derivative instruments.

(PPL)

The following table presents the fair value and the location on the Balance Sheets of derivatives not designated as hedging instruments.

	June 30, 2023				December 31, 2022
	Assets		Liabilities		Assets		Liabilities
Current:
Price Risk Management Assets/Liabilities:
Interest rate swaps (a)	$	—	$	1	$	—	$	1
Gas contracts (a)	1		16		20		62
Total current	1		17		20		63
Noncurrent:
Price Risk Management Assets/Liabilities:
Interest rate swaps (a)	—		6		—		6
Gas contracts (a)	—		7		5		4
Total noncurrent	—		13		5		10
Total derivatives	$	1	$	30	$	25	$	73

(a)Current portion is included in "Other current assets" and "Other current liabilities" and noncurrent portion is included in "Other noncurrent assets" and "Other deferred credits and noncurrent liabilities" on the Balance Sheets. Excludes accrued interest, if applicable.

The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities for the period ended June 30, 2023.

	Three Months		Six Months			Three Months		Six Months
Derivative Relationships	Derivative Gain (Loss) Recognized in OCI		Derivative Gain (Loss) Recognized in OCI		Location of Gain (Loss) Recognized in Income on Derivative	Gain (Loss) Reclassified from AOCI into Income		Gain (Loss) Reclassified from AOCI into Income
Cash Flow Hedges:
Interest rate swaps	$	—	$	—	Interest expense	$	(1)	$	(2)

Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income on Derivative	Three Months		Six Months
Gas contracts	Energy purchases	$	(4)	$	(6)
	Other income(expense) -net	(1)		—
	Total	$	(5)	$	(6)
Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized as Regulatory Liabilities/Assets	Three Months		Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	2	$	1
Gas contracts	Regulatory assets - current	2		(26)
	Regulatory assets - noncurrent	—		7
	Total	$	4	$	(18)

The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities for the period ended June 30, 2022.

	Three Months		Six Months			Three Months		Six Months
Derivative Relationships	Derivative Gain (Loss) Recognized in OCI		Derivative Gain (Loss) Recognized in OCI		Location of Gain (Loss) Recognized in Income on Derivative	Gain (Loss) Reclassified from AOCI into Income		Gain (Loss) Reclassified from AOCI into Income
Cash Flow Hedges:
Interest rate swaps	$	—	$	—	Interest expense	$	(1)	$	(2)

Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income on Derivative	Three Months		Six Months
Interest rate swaps	Interest expense	$	—	$	1
Gas contracts	Energy purchases	9		9
	Total	$	9	$	10
Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized as Regulatory Liabilities/Assets	Three Months		Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	4	$	8

The following table presents the effect of cash flow hedge activity on the Statement of Income for the period ended June 30, 2023.

	Location and Amount of Gain (Loss) Recognized in Income on Hedging Relationships
	Three Months				Six Months
	Interest Expense		Other Income (Expense) - net		Interest Expense		Other Income (Expense) - net
Total income and expense line items presented in the income statement in which the effect of cash flow hedges are recorded	$	165	$	5	$	329	$	35
The effects of cash flow hedges:
Gain (Loss) on cash flow hedging relationships:
Interest rate swaps:
Amount of gain (loss) reclassified from AOCI to income	(1)		—		(2)		—

The following table presents the effect of cash flow hedge activity on the Statement of Income for the period ended June 30, 2022.

	Location and Amount of Gain (Loss) Recognized in Income on Hedging Relationships
	Three Months				Six Months
	Interest Expense		Other Income (Expense) - net		Interest Expense		Other Income (Expense) - net
Total income and expense line items presented in the income statement in which the effect of cash flow hedges are recorded	$	118	$	26	$	225	$	26
The effects of cash flow hedges:
Gain (Loss) on cash flow hedging relationships:
Interest rate swaps:
Amount of gain (loss) reclassified from AOCI to income	(1)		—		(2)		—

(LG&E)

The following table presents the fair value and the location on the Balance Sheets of derivatives not designated as hedging instruments.

	June 30, 2023				December 31, 2022
	Assets		Liabilities		Assets		Liabilities
Current:
Price Risk Management Assets/Liabilities:
Interest rate swaps	$	—	$	1	$	—	$	1
Total current	—		1		—		1
Noncurrent:
Price Risk Management Assets/Liabilities:
Interest rate swaps	—		6		—		6
Total noncurrent	—		6		—		6
Total derivatives	$	—	$	7	$	—	$	7

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the period ended June 30, 2023.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Income on Derivatives	Three Months		Six Months
Interest rate swaps	Interest expense	$	—	$	—
	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months		Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	2	$	1

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the period ended June 30, 2022. 

	Location of Gain (Loss) Recognized in
Derivative Instruments	Income on Derivatives	Three Months		Six Months
Interest rate swaps	Interest expense	$	—	$	1
	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months		Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	4	$	8

(PPL, LG&E and KU)

Offsetting Derivative Instruments

PPL, LG&E and KU or certain of their subsidiaries have master netting arrangements in place and also enter into agreements pursuant to which they purchase or sell certain energy and other products. Under the agreements, upon termination of the agreement as a result of a default or other termination event, the non-defaulting party typically would have a right to set off amounts owed under the agreement against any other obligations arising between the two parties (whether under the agreement or not), whether matured or contingent and irrespective of the currency, place of payment or place of booking of the obligation.

PPL, LG&E and KU have elected not to offset derivative assets and liabilities and not to offset net derivative positions against the right to reclaim cash collateral pledged (an asset) or the obligation to return cash collateral received (a liability) under derivatives agreements. The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged.

	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
June 30, 2023
Derivatives
PPL	$	1	$	1	$	—	$	—	$	30	$	1	$	—	$	29
LG&E	—		—		—		—		7		—		—		7

	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
December 31, 2022
Derivatives
PPL	$	25	$	20	$	—	$	5	$	73	$	62	$	—	$	11
LG&E	—		—		—		—		7		—		—		7

Credit Risk-Related Contingent Features

Certain derivative contracts contain credit risk-related contingent features which, when in a net liability position, would permit the counterparties to require the transfer of additional collateral upon a decrease in the credit ratings of PPL, LG&E and KU or certain of their subsidiaries. Most of these features would require the transfer of additional collateral or permit the counterparty to terminate the contract if the applicable credit rating were to fall below investment grade. Some of these features also would allow the counterparty to require additional collateral upon each downgrade in credit rating at levels that remain above investment grade. In either case, if the applicable credit rating were to fall below investment grade, and assuming no assignment to an investment grade affiliate were allowed, most of these credit contingent features require either immediate payment of the net liability as a termination payment or immediate and ongoing full collateralization on derivative instruments in net liability positions.

Additionally, certain derivative contracts contain credit risk-related contingent features that require adequate assurance of performance be provided if the other party has reasonable concerns regarding the performance of PPL's, LG&E's and KU's obligations under the contracts. A counterparty demanding adequate assurance could require a transfer of additional collateral or other security, including letters of credit, cash and guarantees from a creditworthy entity. This would typically involve negotiations among the parties. However, amounts would represent assumed immediate payment or immediate and ongoing full collateralization for derivative instruments in net liability positions with "adequate assurance" features.

(PPL)

At June 30, 2023, derivative contracts in a net liability position that contain credit risk-related contingent features, collateral posted on those positions and the related effect of a decrease in credit ratings below investment grade was $22 million. The aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade was $22 million.

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Asset Retirement Obligations

6 Months Ended

Jun. 30, 2023

Asset Retirement Obligations [Line Items]

Asset Retirement Obligations

15. Asset Retirement Obligations

(PPL, LG&E and KU)

PPL's, LG&E's and KU's ARO liabilities are primarily related to CCR closure costs. See Note 10 for information on the CCR rule. LG&E also has AROs related to natural gas mains and wells. LG&E's and KU's transmission and distribution lines largely operate under perpetual property easement agreements, which do not generally require restoration upon removal of the property. Therefore, no material AROs are recorded for transmission and distribution assets. For LG&E and KU, all ARO accretion and depreciation expenses are reclassified as a regulatory asset or regulatory liability. ARO regulatory assets associated with certain CCR projects are amortized to expense in accordance with regulatory approvals. For other AROs, deferred accretion and depreciation expense is recovered through cost of removal.

The changes in the carrying amounts of AROs were as follows.

	PPL		LG&E		KU
Balance at December 31, 2022	$	177	$	86	$	82
Accretion	4		2		2
New obligations incurred	2		1		1
Changes in estimated cash flow or settlement date	(1)		1		—
Obligations settled	(16)		(6)		(10)
Other	(5)		(6)		—
Balance at June 30, 2023	$	161	$	78	$	75

Louisville Gas And Electric Co [Member]

Asset Retirement Obligations [Line Items]

Asset Retirement Obligations

15. Asset Retirement Obligations

(PPL, LG&E and KU)

PPL's, LG&E's and KU's ARO liabilities are primarily related to CCR closure costs. See Note 10 for information on the CCR rule. LG&E also has AROs related to natural gas mains and wells. LG&E's and KU's transmission and distribution lines largely operate under perpetual property easement agreements, which do not generally require restoration upon removal of the property. Therefore, no material AROs are recorded for transmission and distribution assets. For LG&E and KU, all ARO accretion and depreciation expenses are reclassified as a regulatory asset or regulatory liability. ARO regulatory assets associated with certain CCR projects are amortized to expense in accordance with regulatory approvals. For other AROs, deferred accretion and depreciation expense is recovered through cost of removal.

The changes in the carrying amounts of AROs were as follows.

	PPL		LG&E		KU
Balance at December 31, 2022	$	177	$	86	$	82
Accretion	4		2		2
New obligations incurred	2		1		1
Changes in estimated cash flow or settlement date	(1)		1		—
Obligations settled	(16)		(6)		(10)
Other	(5)		(6)		—
Balance at June 30, 2023	$	161	$	78	$	75

Kentucky Utilities Co [Member]

Asset Retirement Obligations [Line Items]

Asset Retirement Obligations

15. Asset Retirement Obligations

(PPL, LG&E and KU)

PPL's, LG&E's and KU's ARO liabilities are primarily related to CCR closure costs. See Note 10 for information on the CCR rule. LG&E also has AROs related to natural gas mains and wells. LG&E's and KU's transmission and distribution lines largely operate under perpetual property easement agreements, which do not generally require restoration upon removal of the property. Therefore, no material AROs are recorded for transmission and distribution assets. For LG&E and KU, all ARO accretion and depreciation expenses are reclassified as a regulatory asset or regulatory liability. ARO regulatory assets associated with certain CCR projects are amortized to expense in accordance with regulatory approvals. For other AROs, deferred accretion and depreciation expense is recovered through cost of removal.

The changes in the carrying amounts of AROs were as follows.

	PPL		LG&E		KU
Balance at December 31, 2022	$	177	$	86	$	82
Accretion	4		2		2
New obligations incurred	2		1		1
Changes in estimated cash flow or settlement date	(1)		1		—
Obligations settled	(16)		(6)		(10)
Other	(5)		(6)		—
Balance at June 30, 2023	$	161	$	78	$	75

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Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2023

Accumulated Other Comprehensive Income (Loss) [Line Items]

Accumulated Other Comprehensive Income (Loss)

16. Accumulated Other Comprehensive Income (Loss)

(PPL)

The after-tax changes in AOCI by component for the periods ended June 30 were as follows.

	Unrealized gains (losses)  on qualifying derivatives				Defined benefit plans
			Equity investees' AOCI		Prior service costs		Actuarial gain (loss)		Total
PPL
March 31, 2023	$	4	$	3	$	(5)	$	(125)	$	(123)
Amounts arising during the period	—		—		—		(15)		(15)
Reclassifications from AOCI	—		—		1		—		1
Net OCI during the period	—		—		1		(15)		(14)
June 30, 2023	$	4	$	3	$	(4)	$	(140)	$	(137)
December 31, 2022	$	3	$	2	$	(5)	$	(124)	$	(124)
Amounts arising during the period	—		1		—		(15)		(14)
Reclassifications from AOCI	1		—		1		(1)		1
Net OCI during the period	1		1		1		(16)		(13)
June 30, 2023	$	4	$	3	$	(4)	$	(140)	$	(137)
March 31, 2022	$	2	$	1	$	(6)	$	(149)	$	(152)
Amounts arising during the period	—		1		—		21		22
Reclassifications from AOCI	—		—		—		6		6
Net OCI during the period	—		1		—		27		28
June 30, 2022	$	2	$	2	$	(6)	$	(122)	$	(124)
December 31, 2021	$	1	$	—	$	(6)	$	(152)	$	(157)
Amounts arising during the period	—		2		(1)		21		22
Reclassifications from AOCI	1		—		1		9		11
Net OCI during the period	1		2		—		30		33
June 30, 2022	$	2	$	2	$	(6)	$	(122)	$	(124)

The following table presents PPL's gains (losses) and related income taxes for reclassifications from AOCI for the periods ended June 30.

	Three Months				Six Months				Affected Line Item on the
Details about AOCI	2023		2022		2023		2022		Statements of Income
Qualifying derivatives
Interest rate swaps	$	(1)	$	(1)	$	(2)	$	(2)	Interest Expense
Total Pre-tax	(1)		(1)		(2)		(2)
Income Taxes	1		1		1		1
Total After-tax	—		—		(1)		(1)
Defined benefit plans
Prior service costs (a)	(1)		—		(1)		(1)
Net actuarial loss (a)	1		(8)		2		(12)
Total Pre-tax	—		(8)		1		(13)
Income Taxes	(1)		2		(1)		3
Total After-tax	(1)		(6)		—		(10)
Total reclassifications during the period	$	(1)	$	(6)	$	(1)	$	(11)

(a)    These AOCI components are included in the computation of net periodic defined benefit cost. See Note 9 for additional information.

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Interim Financial Statements

6 Months Ended

Jun. 30, 2023

Interim Financial Statements [Abstract]

Interim Financial Statements

1. Interim Financial Statements

(All Registrants)

Capitalized terms and abbreviations appearing in the unaudited combined notes to condensed financial statements are defined in the glossary. Dollars are in millions, except per share data, unless otherwise noted. The specific Registrant to which disclosures are applicable is identified in parenthetical headings in italics above the applicable disclosure or within the applicable disclosure for each Registrant's related activities and disclosures. Within combined disclosures, amounts are disclosed for any Registrant when significant.

The accompanying unaudited condensed financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all of the information and footnote disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation in accordance with GAAP are reflected in the condensed financial statements. All adjustments are of a normal recurring nature, except as otherwise disclosed. Each Registrant's Balance Sheet at December 31, 2022 is derived from that Registrant's 2022 audited Balance Sheet. The financial statements and notes thereto should be read in conjunction with the financial statements and notes contained in each Registrant's 2022 Form 10-K. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for the full year ending December 31, 2023 or other future periods, because results for interim periods can be disproportionately influenced by various factors, developments and seasonal variations.

(PPL)

On May 25, 2022, PPL Rhode Island Holdings acquired 100% of the outstanding shares of common stock of Narragansett Electric from National Grid USA, a subsidiary of National Grid plc (the Acquisition). The results of Narragansett Electric are included in the consolidated results of PPL from the date of the Acquisition. Following the closing of the Acquisition,

Narragansett Electric provides services doing business under the name Rhode Island Energy (RIE). See Note 8 for additional information.

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

XX. Summary of Significant Accounting Policies

(All Registrants)

The following accounting policy disclosures represent updates to Note 1 in each Registrant's 2022 Form 10-K and should be read in conjunction with those disclosures.

Restricted Cash and Cash Equivalents (PPL)

Reconciliation of Cash, Cash Equivalents and Restricted Cash

The following provides a reconciliation of Cash, Cash Equivalents and Restricted Cash reported within the Balance Sheets that sum to the total of the same amounts shown on the Statements of Cash Flows:

	PPL
	June 30, 2023		December 31, 2022
Cash and cash equivalents	$	326	$	356
Restricted cash - current (a)	1		1
Total Cash, Cash Equivalents and Restricted Cash	$	327	$	357

(a)Bank deposits and other cash equivalents that are restricted by agreement or that have been clearly designated for a specific purpose are classified as restricted cash. On the Balance Sheets, the current portion of restricted cash is included in "Other current assets."

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Other Income (Expense) - net

6 Months Ended

Jun. 30, 2023

Other Income (Expense) Net [Line Items]

Other Income (Expense) - net

12. Other Income (Expense) - net

(PPL)

The details of "Other Income (Expense) - net" for the periods ended June 30, were:

	Three Months				Six Months
	2023		2022		2023		2022
Defined benefit plans - non-service credits (Note 9)	$	(1)	$	9	$	16	$	20
Interest income (expense)	8		(1)		17		(2)
AFUDC - equity component	8		6		14		10
Charitable contributions	—		(1)		(2)		(2)
Miscellaneous (a)	(10)		13		(10)		—
Other Income (Expense) - net	$	5	$	26	$	35	$	26

(a)Includes legal expenses incurred and insurance reimbursements received related to litigation with a former affiliate, Talen Montana. See Note 10 for additional information.

(PPL Electric)

The details of "Other Income (Expense) - net" for the periods ended June 30, were:

	Three Months				Six Months
	2023		2022		2023		2022
Defined benefit plans - non-service credits (Note 9)	$	5	$	4	$	10	$	8
Interest income (expense)	1		—		5		1
AFUDC - equity component	4		4		8		8
Charitable contributions	—		—		(2)		(2)
Miscellaneous	(1)		(1)		—		(2)
Other Income (Expense) - net	$	9	$	7	$	21	$	13

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Derivative Instruments and Hedging Activities (Policies)	6 Months Ended
	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives, Offsetting Fair Value Amounts, Policy	Net derivative positions on the balance sheets are not offset against the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) under master netting arrangements.

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Adoption of Accounting Guidance (Tables)

6 Months Ended

Jun. 30, 2023

Summary Of Significant Accounting Policies [Line Items]

Financing Receivable, Allowance for Credit Loss [Table Text Block]

Reconciliation of Cash, Cash Equivalents and Restricted Cash from the Balance Sheet to Cash Flow Statement

The following provides a reconciliation of Cash, Cash Equivalents and Restricted Cash reported within the Balance Sheets that sum to the total of the same amounts shown on the Statements of Cash Flows:

	PPL
	June 30, 2023		December 31, 2022
Cash and cash equivalents	$	326	$	356
Restricted cash - current (a)	1		1
Total Cash, Cash Equivalents and Restricted Cash	$	327	$	357

(a)Bank deposits and other cash equivalents that are restricted by agreement or that have been clearly designated for a specific purpose are classified as restricted cash. On the Balance Sheets, the current portion of restricted cash is included in "Other current assets."

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Segment and Related Information (Tables)

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment and Related Information

Income Statement data for the segments and reconciliation to PPL's consolidated results for the periods ended June 30 are as follows:

	Three Months				Six Months
	2023		2022		2023		2022
Operating Revenues from external customers
Kentucky Regulated	$	778	$	883	$	1,738	$	1,887
Pennsylvania Regulated	667		676		1,558		1,451
Rhode Island Regulated	377		128		942		128
Corporate and Other	1		9		—		12
Total	$	1,823	$	1,696	$	4,238	$	3,478
Net Income (Loss)
Kentucky Regulated	$	91	$	112	$	257	$	301
Pennsylvania Regulated	110		124		248		267
Rhode Island Regulated	10		(29)		64		(29)
Corporate and Other	(99)		(88)		(172)		(147)
Total	$	112	$	119	$	397	$	392

The following provides Balance Sheet data for the segments and reconciliation to PPL's consolidated Balance Sheets as of:

	June 30, 2023		December 31, 2022
Assets
Kentucky Regulated	$	16,794	$	16,904
Pennsylvania Regulated	13,929		13,565
Rhode Island Regulated	6,217		6,081
Corporate and Other (a)	1,356		1,287
Total	$	38,296	$	37,837

(a)Primarily consists of unallocated items, including cash, PP&E, goodwill and the elimination of inter-segment transactions.

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Revenue from Contracts with Customers (Tables)

6 Months Ended

Jun. 30, 2023

Revenue from Contracts with Customers [Line Items]

Disaggregation of Revenue [Table Text Block]

The following tables show revenues from contracts with customers disaggregated by customer class for the periods ended June 30.

	Three Months
	Residential		Commercial		Industrial		Other (a)		Wholesale - municipality		Wholesale - other (b)		Transmission		Revenues from Contracts with Customers
PPL
2023
PA Regulated	$	340	$	105	$	11	$	13	$	—	$	—	$	199	$	668
KY Regulated	298		237		160		66		4		9				774
RI Regulated	141		49		4		149		—		—		36		379
Corp and Other	—		—		—		—		—		—		—		—
Total PPL	$	779	$	391	$	175	$	228	$	4	$	9	$	235	$	1,821
2022
PA Regulated	$	329	$	117	$	30	$	14	$	—	$	—	$	160	$	650
KY Regulated	339		251		167		93		8		26		—		884
RI Regulated	31		12		1		47		—		—		16		107
Corp and Other	—		—		—		9		—		—		—		9
Total PPL	$	699	$	380	$	198	$	163	$	8	$	26	$	176	$	1,650
PPL Electric
2023	$	340	$	105	$	11	$	13	$	—	$	—	$	199	$	668
2022	$	329	$	117	$	30	$	14	$	—	$	—	$	160	$	650
LG&E
2023	$	151	$	119	$	47	$	26	$	—	$	11	$	—	$	354
2022	$	169	$	124	$	49	$	47	$	—	$	22	$	—	$	411
KU
2023	$	147	$	117	$	113	$	40	$	4	$	10	$	—	$	431
2022	$	170	$	127	$	118	$	45	$	8	$	22	$	—	$	490

	Six Months
	Residential		Commercial		Industrial		Other (a)		Wholesale - municipality		Wholesale - other (b)		Transmission		Revenues from Contracts with Customers
PPL
2023
PA Regulated	$	968	$	253	$	34	$	26	$	—	$	—	$	277	$	1,558
KY Regulated	741		511		324		126		11		20		—		1,733
RI Regulated	370		150		13		364		—		—		81		978
Corp and Other	—		—		—		—		—		—		—		—
Total PPL	$	2,079	$	914	$	371	$	516	$	11	$	20	$	358	$	4,269
2022
PA Regulated	$	782	$	225	$	45	$	26	$	—	$	—	$	307	$	1,385
KY Regulated	817		521		321		176		14		45		—		1,894
RI Regulated	31		12		1		47		—		—		16		107
Corp and Other	—		—		—		12		—		—		—		12
Total PPL	$	1,630	$	758	$	367	$	261	$	14	$	45	$	323	$	3,398

	Six Months
	Residential		Commercial		Industrial		Other (a)		Wholesale - municipality		Wholesale - other (b)		Transmission		Revenues from Contracts with Customers
PPL Electric
2023	$	968	$	253	$	34	$	26	$	—	$	—	$	277	$	1,558
2022	$	782	$	225	$	45	$	26	$	—	$	—	$	307	$	1,385
LG&E
2023	$	392	$	271	$	96	$	42	$	—	$	27	$	—	$	828
2022	$	415	$	270	$	94	$	86	$	—	$	43	$	—	$	908
KU
2023	$	349	$	240	$	228	$	84	$	11	$	17	$	—	$	929
2022	$	402	$	251	$	227	$	89	$	14	$	34	$	—	$	1,017

(a)Primarily includes revenues from pole attachments, street lighting, other public authorities and other non-core businesses. The Rhode Island Regulated segment primarily includes open access tariff revenues, which are calculated on combined customer classes.

(b)Includes wholesale power and transmission revenues. LG&E and KU amounts include intercompany power sales and transmission revenues, which are eliminated upon consolidation at the Kentucky Regulated segment.

Credit Loss Recognized from Contracts with Customers [Table Text Block]

The following table shows the accounts receivable and unbilled revenues balances that were impaired for the periods ended June 30.

	Three Months				Six Months
	2023		2022		2023		2022
PPL	$	6	$	25	$	26	$	33
PPL Electric	7		—		17		5
LG&E	—		1		1		2
KU	1		1		1		2

Contract with Customer, Asset and Liability [Table Text Block]

The following table shows the balances and certain activity of contract liabilities resulting from contracts with customers.

	PPL		PPL Electric		LG&E		KU
Contract liabilities at December 31, 2022	$	34	$	23	$	5	$	6
Contract liabilities at June 30, 2023	48		35		6		7
Revenue recognized during the six months ended June 30, 2023 that was included in the contract liability balance at December 31, 2022	18		7		5		6
Contract liabilities at December 31, 2021	$	42	$	25	$	6	$	6
Contract liabilities at June 30, 2022	33		16		6		5
Revenue recognized during the six months ended June 30, 2022 that was included in the contract liability balance at December 31, 2021	24		12		6		6

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Basic and Diluted EPS Computations

Reconciliations of the amounts of income and shares of PPL common stock (in thousands) for the periods ended June 30 used in the EPS calculation are:

	Three Months				Six Months
	2023		2022		2023		2022
Income (Numerator)
Net income attributable to PPL	$	112	$	119	$	397	$	392
Less amounts allocated to participating securities	—		—		1		—
Net income available to PPL common shareowners - Basic and Diluted	$	112	$	119	$	396	$	392
Shares of Common Stock (Denominator)
Weighted-average shares - Basic EPS	737,075		735,977		736,953		735,741
Add: Dilutive share-based payment awards	1,102		792		985		737
Weighted-average shares - Diluted EPS	738,177		736,769		737,938		736,478
Basic and Diluted EPS
Net Income available to PPL common shareowners	$	0.15	$	0.16	$	0.54	$	0.53

Common Stock Issuances

For the periods ended June 30, PPL issued shares of common stock related to stock-based compensation plans as follows (in thousands):

	Three Months		Six Months
	2023	2022	2023	2022
Stock-based compensation plans	—	—	—	124

Antidilutive Securities Excluded From Diluted EPS

For the periods ended June 30, the following shares (in thousands) were excluded from the computations of diluted EPS because the effect would have been antidilutive.

	Three Months		Six Months
	2023	2022	2023	2022
Stock-based compensation awards	258	66	396	110

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2023

Income Taxes [Line Items]

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations of income tax expense (benefit) for the periods ended June 30 are as follows.

(PPL)
	Three Months				Six Months
	2023		2022		2023		2022
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	30	$	32	$	107	$	104
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	11		27		33		48
Valuation allowance adjustments	5		7		7		10
Amortization of investment tax credit including deferred taxes on basis adjustment	—		(4)		(1)		(7)
Depreciation and other items not normalized	(2)		(5)		(7)		(8)
Amortization of excess deferred federal and state income taxes	(8)		(22)		(20)		(40)
Other	(3)		(3)		(7)		(1)
Total increase (decrease)	3		—		5		2
Total income tax expense (benefit)	$	33	$	32	$	112	$	106

PPL Electric Utilities Corp [Member]

Income Taxes [Line Items]

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations of income tax expense (benefit) for the periods ended June 30 are as follows.

(PPL Electric)
	Three Months				Six Months
	2023		2022		2023		2022
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	31	$	35	$	70	$	76
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	11		13		24		28
Depreciation and other items not normalized	(3)		(3)		(7)		(6)
Amortization of excess deferred federal and state income taxes	(2)		(2)		(4)		(5)
Other	1		1		—		1
Total increase (decrease)	7		9		13		18
Total income tax expense (benefit)	$	38	$	44	$	83	$	94

Louisville Gas And Electric Co [Member]

Income Taxes [Line Items]

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations of income tax expense (benefit) for the periods ended June 30 are as follows.

(LG&E)
	Three Months				Six Months
	2023		2022		2023		2022
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	12	$	13	$	35	$	37
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	2		2		6		7
Amortization of excess deferred federal and state income taxes	(3)		(7)		(6)		(14)
Other	—		1		(1)		(2)
Total increase (decrease)	(1)		(4)		(1)		(9)
Total income tax expense (benefit)	$	11	$	9	$	34	$	28

Kentucky Utilities Co [Member]

Income Taxes [Line Items]

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations of income tax expense (benefit) for the periods ended June 30 are as follows.

(KU)
	Three Months				Six Months
	2023		2022		2023		2022
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	13	$	17	$	36	$	45
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	3		3		7		8
Amortization of excess deferred federal and state income taxes	(4)		(6)		(8)		(12)
Other	1		1		—		(2)
Total increase (decrease)	—		(2)		(1)		(6)
Total income tax expense (benefit)	$	13	$	15	$	35	$	39

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Utility Rate Regulation (Tables)

6 Months Ended

Jun. 30, 2023

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				LG&E				KU
	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Current Regulatory Assets:
Gas supply clause	$	—	$	41	$	—	$	—	$	—	$	13	$	—	$	—
Rate adjustment mechanisms	214		96		—		—		—		—		—		—
Renewable energy certificates	13		14		—		—		—		—		—		—
Derivative instruments	15		41		—		—		—		—		—		—
Smart meter rider	5		5		5		5		—		—		—		—
Universal service rider	21		3		21		3		—		—		—		—
Fuel adjustment clause	9		38		—		—		2		9		7		29
Transmission service charge	12		—		12		—		—		—		—		—
Other	42		20		11		5		2		1		3		3
Total current regulatory assets	$	331	$	258	$	49	$	13	$	4	$	23	$	10	$	32
Noncurrent Regulatory Assets:
Defined benefit plans	$	783	$	778	$	353	$	353	$	208	$	209	$	139	$	140
Plant outage costs	42		46		—		—		11		12		31		34
Net metering	89		61		—		—		—		—		—		—
Environmental cost recovery	101		102		—		—		—		—		—		—
Taxes recoverable through future rates	38		47		—		—		—		—		—		—
Storm costs	111		118		—		—		15		7		14		3
Unamortized loss on debt	24		21		4		3		11		11		7		7
Interest rate swaps	6		7		—		—		6		7		—		—
Terminated interest rate swaps	61		63		—		—		36		37		25		26
Accumulated cost of removal of utility plant	195		212		195		212		—		—		—		—
AROs	292		295		—		—		76		76		216		219
Derivatives instruments	7		—		—		—		—		—		—		—
Other	77		69		—		—		21		14		15		13
Total noncurrent regulatory assets	$	1,826	$	1,819	$	552	$	568	$	384	$	373	$	447	$	442

	PPL				PPL Electric				LG&E				KU
	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Current Regulatory Liabilities:
Generation supply charge	$	41	$	37	$	41	$	37	$	—	$	—	$	—	$	—
Transmission service charge	—		14		—		7		—		—		—		—
TCJA customer refund	6		15		6		15		—		—		—		—
Act 129 compliance rider	15		14		15		14		—		—		—		—
Transmission formula rate	23		12		20		12		—		—		—		—
Rate adjustment mechanism	133		96		—		—		—		—		—		—
Energy efficiency	23		23		—		—		—		—		—		—
Gas supply clause	16		—		—		—		16		—		—		—
Other	23		27		—		—		3		7		2		6
Total current regulatory liabilities	$	280	$	238	$	82	$	85	$	19	$	7	$	2	$	6

	PPL				PPL Electric				LG&E				KU
	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	978	$	950	$	—	$	—	$	296	$	287	$	396	$	389
Power purchase agreement - OVEC	22		26		—		—		15		18		7		8
Net deferred taxes	2,054		2,094		776		775		469		477		535		546
Defined benefit plans	225		187		59		45		21		21		57		56
Terminated interest rate swaps	58		60		—		—		29		30		29		30
Energy efficiency	39		32		—		—		—		—		—		—
Other	45		63		—		—		3		—		8		—
Total noncurrent regulatory liabilities	$	3,421	$	3,412	$	835	$	820	$	833	$	833	$	1,032	$	1,029

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Financing Activities (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Schedule of Line of Credit Facilities

The following credit facilities were in place at:

	June 30, 2023									December 31, 2022
	Expiration Date	Capacity		Borrowed		Letters of Credit and Commercial Paper Issued (d)		Unused Capacity		Borrowed		Letters of Credit and Commercial Paper Issued (d)
PPL
PPL Capital Funding (a)
Syndicated Credit Facility (b)	Dec. 2027	$	1,250	$	—	$	—	$	1,250	$	—	$	561
Bilateral Credit Facility	Mar. 2024	100		—		—		100		—		—
Bilateral Credit Facility (c)	Mar. 2024	100		—		58		42		—		58
Total PPL Capital Funding Credit Facilities		$	1,450	$	—	$	58	$	1,392	$	—	$	619
PPL Electric
Syndicated Credit Facility	Dec. 2027	$	650	$	—	$	131	$	519	$	—	$	146
Term Loan Credit Facility	Mar. 2024	—		—		—		—		250		—
Total PPL Electric Credit Facilities		$	650	$	—	$	131	$	519	$	250	$	146
LG&E
Syndicated Credit Facility	Dec. 2027	$	500	$	—	$	21	$	479	$	—	$	180
Term Loan Credit Facility	Jul. 2024	—		—		—		—		300		—
Total LG&E Credit Facilities		$	500	$	—	$	21	$	479	$	300	$	180
KU
Syndicated Credit Facility	Dec. 2027	$	400	$	—	$	92	$	308	$	—	$	101
Term Loan Credit Facility	Jul. 2024	—		—		—		—		300		—
Total KU Credit Facilities		$	400	$	—	$	92	$	308	$	300	$	101

(a)PPL Capital Funding's obligations are fully and unconditionally guaranteed by PPL.

(b)Includes a $250 million borrowing sublimit for RIE and a $1 billion sublimit for PPL Capital Funding.

(c)Includes a $45 million letter of credit on behalf of RIE.

(d)Commercial paper issued reflects the undiscounted face value of the issuance.

Schedule of Short-term Debt

The following commercial paper programs were in place at:

	June 30, 2023							December 31, 2022
	Weighted - Average Interest Rate	Capacity		Commercial Paper Issuances (c)		Unused Capacity		Weighted - Average Interest Rate	Commercial Paper Issuances (c)
PPL Capital Funding (a) (b)		$	1,350	$	—	$	1,350	4.84%	$	561
RIE (b)		400		—		400			—
PPL Electric	5.31%	650		130		520		4.74%	145
LG&E	5.30%	500		21		479		4.94%	180
KU	5.34%	400		92		308		4.90%	101
Total		$	3,300	$	243	$	3,057		$	987

(a)PPL Capital Funding's obligations are fully and unconditionally guaranteed by PPL.

(b)Issuances under the PPL Capital Funding and RIE commercial paper programs are supported by the PPL Capital Funding syndicated credit facility, which has a total capacity of $1.25 billion and under which they are both borrowers. PPL Capital Funding’s Commercial paper program is also backed by a separate bilateral credit facility for $100 million. The PPL Capital Funding syndicated credit facility includes a borrowing sublimit for RIE, which is currently set at $250 million with the remaining $1 billion allocated to PPL Capital Funding. The sublimits of each borrower may be decreased or increased at the borrowers’ option up to a prescribed amount such that all borrowings under the syndicated credit facility cannot exceed the size of the credit facility of $1.25 billion.

(c)Commercial paper issued reflects the undiscounted face value of the issuance.

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Defined Benefits (Tables)

6 Months Ended

Jun. 30, 2023

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Schedule Of Net Periodic Defined Benefit Costs (Credits)

Following are the net periodic defined benefit costs (credits) of the plans sponsored by PPL and its subsidiaries for the periods ended June 30:

	Pension Benefits
	Three Months				Six Months
	2023		2022		2023		2022
PPL
Service cost	$	8	$	13	$	17	$	25
Interest cost	48		30		94		62
Expected return on plan assets	(77)		(63)		(155)		(127)
Amortization of:
Prior service cost	1		2		3		4
Actuarial loss	1		17		1		29
Net periodic defined benefit costs (credits) before settlements	(19)		(1)		(40)		(7)
Settlements (a)	—		12		—		12
Net periodic defined benefit costs (credits)	$	(19)	$	11	$	(40)	$	5

(a)Due to the amount of lump sum payment distributions from the LKE qualified pension plan, settlement charges were incurred during the three and six months ended, June 30, 2022. In accordance with existing regulatory accounting treatment, LG&E and KU have primarily maintained the settlement charge in regulatory assets to be amortized over 15 years.

	Other Postretirement Benefits
	Three Months				Six Months
	2023		2022		2023		2022
PPL
Service cost	$	1	$	2	$	3	$	3
Interest cost	8		4		15		8
Expected return on plan assets	(7)		(6)		(15)		(12)
Amortization of:
Prior service cost	1		1		1		1
Actuarial loss	(2)		(2)		(3)		(2)
Net periodic defined benefit costs (credits)	$	1	$	(1)	$	1	$	(2)

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Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Guarantees	The table below details guarantees provided as of June 30, 2023.

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Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2023

PPL Electric Utilities Corp [Member]

Related Party Transactions [Line Items]

Intercompany Support Cost Allocations

PPL Services and LKS charged the following amounts for the periods ended June 30, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods that are believed to be reasonable.

	Three Months				Six Months
	2023		2022		2023		2022
PPL Electric from PPL Services	$	55	$	60	$	114	$	121
LG&E from LKS	28		41		60		80
LG&E from PPL Services	12		—		20		—
KU from LKS	34		42		75		86
KU from PPL Services	13		—		23		—

Louisville Gas And Electric Co [Member]

Related Party Transactions [Line Items]

Intercompany Support Cost Allocations

PPL Services and LKS charged the following amounts for the periods ended June 30, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods that are believed to be reasonable.

	Three Months				Six Months
	2023		2022		2023		2022
PPL Electric from PPL Services	$	55	$	60	$	114	$	121
LG&E from LKS	28		41		60		80
LG&E from PPL Services	12		—		20		—
KU from LKS	34		42		75		86
KU from PPL Services	13		—		23		—

Kentucky Utilities Co [Member]

Related Party Transactions [Line Items]

Intercompany Support Cost Allocations

PPL Services and LKS charged the following amounts for the periods ended June 30, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods that are believed to be reasonable.

	Three Months				Six Months
	2023		2022		2023		2022
PPL Electric from PPL Services	$	55	$	60	$	114	$	121
LG&E from LKS	28		41		60		80
LG&E from PPL Services	12		—		20		—
KU from LKS	34		42		75		86
KU from PPL Services	13		—		23		—

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Other Income (Expense) - net (Tables)

6 Months Ended

Jun. 30, 2023

Other Income (Expense) Net [Line Items]

Schedule of Other Nonoperating Income (Expense)

The details of "Other Income (Expense) - net" for the periods ended June 30, were:

	Three Months				Six Months
	2023		2022		2023		2022
Defined benefit plans - non-service credits (Note 9)	$	(1)	$	9	$	16	$	20
Interest income (expense)	8		(1)		17		(2)
AFUDC - equity component	8		6		14		10
Charitable contributions	—		(1)		(2)		(2)
Miscellaneous (a)	(10)		13		(10)		—
Other Income (Expense) - net	$	5	$	26	$	35	$	26

(a)Includes legal expenses incurred and insurance reimbursements received related to litigation with a former affiliate, Talen Montana. See Note 10 for additional information.

PPL Electric Utilities Corp [Member]

Other Income (Expense) Net [Line Items]

Schedule of Other Nonoperating Income (Expense)

The details of "Other Income (Expense) - net" for the periods ended June 30, were:

	Three Months				Six Months
	2023		2022		2023		2022
Defined benefit plans - non-service credits (Note 9)	$	5	$	4	$	10	$	8
Interest income (expense)	1		—		5		1
AFUDC - equity component	4		4		8		8
Charitable contributions	—		—		(2)		(2)
Miscellaneous	(1)		(1)		—		(2)
Other Income (Expense) - net	$	9	$	7	$	21	$	13

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The assets and liabilities measured at fair value were:

	June 30, 2023								December 31, 2022
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
PPL
Assets
Cash and cash equivalents	$	326	$	326	$	—	$	—	$	356	$	356	$	—	$	—
Restricted cash and cash equivalents (a)	1		1		—		—		1		1		—		—
Total Cash, Cash Equivalents and Restricted Cash (b)	327		327		—		—		357		357		—		—
Special use funds (a):
Money market fund	1		1		—		—		1		1		—		—
Commingled debt fund measured at NAV (c)	11		—		—		—		13		—		—		—
Commingled equity fund measured at NAV (c)	10		—		—		—		11		—		—		—
Total special use funds	22		1		—		—		25		1		—		—
Price risk management assets (d):
Gas contracts	1		—		1		—		25		—		25		—
Total assets	$	350	$	328	$	1	$	—	$	407	$	358	$	25	$	—
Liabilities
Price risk management liabilities (d):
Interest rate swaps	$	7	$	—	$	7	$	—	$	7	$	—	$	7	$	—
Gas contracts	(23)		—		(23)		—		66		—		10		56
Total price risk management liabilities	$	(16)	$	—	$	(16)	$	—	$	73	$	—	$	17	$	56
PPL Electric
Assets
Cash and cash equivalents	$	26	$	26	$	—	$	—	$	25	$	25	$	—	$	—
Total assets	$	26	$	26	$	—	$	—	$	25	$	25	$	—	$	—
LG&E
Assets
Cash and cash equivalents	$	7	$	7	$	—	$	—	$	93	$	93	$	—	$	—
Total assets	$	7	$	7	$	—	$	—	$	93	$	93	$	—	$	—
Liabilities
Price risk management liabilities:
Interest rate swaps	$	7	$	—	$	7	$	—	$	7	$	—	$	7	$	—
Total price risk management liabilities	$	7	$	—	$	7	$	—	$	7	$	—	$	7	$	—
KU
Assets
Cash and cash equivalents	$	9	$	9	$	—	$	—	$	21	$	21	$	—	$	—
Total assets	$	9	$	9	$	—	$	—	$	21	$	21	$	—	$	—

(a)Included in "Other current assets" on the Balance Sheets.

(b)Total Cash, Cash Equivalents and Restricted Cash provides a reconciliation of these items reported within the Balance Sheets to the sum shown on the Statements of Cash Flows.

(c)In accordance with accounting guidance, certain investments that are measured at fair value using net asset value per share (NAV), or its equivalent, have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Balance Sheets.

(d)Current portion is included in "Other current asset" and "Other current liabilities" and noncurrent portion is included in "Other noncurrent assets" and "Other deferred credits and noncurrent liabilities" on the Balance Sheets.

A reconciliation of net assets and liabilities classified as Level 3 for the six months ended June 30 is as follows:

	Gas Contracts
2023
Balance at beginning of period	$	56
Settlements	(56)
Balance at end of period	$	—

Fair Value, by Balance Sheet Grouping

The carrying amounts of long-term debt on the Balance Sheets and their estimated fair values are set forth below.

	June 30, 2023				December 31, 2022
	Carrying Amount (a)		Fair Value		Carrying Amount (a)		Fair Value
PPL	$	14,572	$	13,613	$	13,243	$	12,239
PPL Electric	4,655		4,432		4,486		4,259
LG&E	2,404		2,236		2,307		2,128
KU	3,003		2,722		2,920		2,616

(a)Amounts are net of debt issuance costs.

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Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2023

Jun. 30, 2022

Derivative Instruments And Hedging Activities [Line Items]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table presents the fair value and the location on the Balance Sheets of derivatives not designated as hedging instruments.

	June 30, 2023				December 31, 2022
	Assets		Liabilities		Assets		Liabilities
Current:
Price Risk Management Assets/Liabilities:
Interest rate swaps (a)	$	—	$	1	$	—	$	1
Gas contracts (a)	1		16		20		62
Total current	1		17		20		63
Noncurrent:
Price Risk Management Assets/Liabilities:
Interest rate swaps (a)	—		6		—		6
Gas contracts (a)	—		7		5		4
Total noncurrent	—		13		5		10
Total derivatives	$	1	$	30	$	25	$	73

(a)Current portion is included in "Other current assets" and "Other current liabilities" and noncurrent portion is included in "Other noncurrent assets" and "Other deferred credits and noncurrent liabilities" on the Balance Sheets. Excludes accrued interest, if applicable.

Derivative Instruments, Gain (Loss)

The following table presents the effect of cash flow hedge activity on the Statement of Income for the period ended June 30, 2023.

	Location and Amount of Gain (Loss) Recognized in Income on Hedging Relationships
	Three Months				Six Months
	Interest Expense		Other Income (Expense) - net		Interest Expense		Other Income (Expense) - net
Total income and expense line items presented in the income statement in which the effect of cash flow hedges are recorded	$	165	$	5	$	329	$	35
The effects of cash flow hedges:
Gain (Loss) on cash flow hedging relationships:
Interest rate swaps:
Amount of gain (loss) reclassified from AOCI to income	(1)		—		(2)		—

The following table presents the effect of cash flow hedge activity on the Statement of Income for the period ended June 30, 2022.

	Location and Amount of Gain (Loss) Recognized in Income on Hedging Relationships
	Three Months				Six Months
	Interest Expense		Other Income (Expense) - net		Interest Expense		Other Income (Expense) - net
Total income and expense line items presented in the income statement in which the effect of cash flow hedges are recorded	$	118	$	26	$	225	$	26
The effects of cash flow hedges:
Gain (Loss) on cash flow hedging relationships:
Interest rate swaps:
Amount of gain (loss) reclassified from AOCI to income	(1)		—		(2)		—

Derivative Positions Eligible for Offset with Related Cash Collateral

The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged.

	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
June 30, 2023
Derivatives
PPL	$	1	$	1	$	—	$	—	$	30	$	1	$	—	$	29
LG&E	—		—		—		—		7		—		—		7

	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
December 31, 2022
Derivatives
PPL	$	25	$	20	$	—	$	5	$	73	$	62	$	—	$	11
LG&E	—		—		—		—		7		—		—		7

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location

The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities for the period ended June 30, 2023.

	Three Months		Six Months			Three Months		Six Months
Derivative Relationships	Derivative Gain (Loss) Recognized in OCI		Derivative Gain (Loss) Recognized in OCI		Location of Gain (Loss) Recognized in Income on Derivative	Gain (Loss) Reclassified from AOCI into Income		Gain (Loss) Reclassified from AOCI into Income
Cash Flow Hedges:
Interest rate swaps	$	—	$	—	Interest expense	$	(1)	$	(2)

Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income on Derivative	Three Months		Six Months
Gas contracts	Energy purchases	$	(4)	$	(6)
	Other income(expense) -net	(1)		—
	Total	$	(5)	$	(6)
Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized as Regulatory Liabilities/Assets	Three Months		Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	2	$	1
Gas contracts	Regulatory assets - current	2		(26)
	Regulatory assets - noncurrent	—		7
	Total	$	4	$	(18)

The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities for the period ended June 30, 2022.

	Three Months		Six Months			Three Months		Six Months
Derivative Relationships	Derivative Gain (Loss) Recognized in OCI		Derivative Gain (Loss) Recognized in OCI		Location of Gain (Loss) Recognized in Income on Derivative	Gain (Loss) Reclassified from AOCI into Income		Gain (Loss) Reclassified from AOCI into Income
Cash Flow Hedges:
Interest rate swaps	$	—	$	—	Interest expense	$	(1)	$	(2)

Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income on Derivative	Three Months		Six Months
Interest rate swaps	Interest expense	$	—	$	1
Gas contracts	Energy purchases	9		9
	Total	$	9	$	10
Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized as Regulatory Liabilities/Assets	Three Months		Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	4	$	8

Louisville Gas And Electric Co [Member]

Derivative Instruments And Hedging Activities [Line Items]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table presents the fair value and the location on the Balance Sheets of derivatives not designated as hedging instruments.

	June 30, 2023				December 31, 2022
	Assets		Liabilities		Assets		Liabilities
Current:
Price Risk Management Assets/Liabilities:
Interest rate swaps	$	—	$	1	$	—	$	1
Total current	—		1		—		1
Noncurrent:
Price Risk Management Assets/Liabilities:
Interest rate swaps	—		6		—		6
Total noncurrent	—		6		—		6
Total derivatives	$	—	$	7	$	—	$	7

Derivative Instruments, Gain (Loss)

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the period ended June 30, 2023.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Income on Derivatives	Three Months		Six Months
Interest rate swaps	Interest expense	$	—	$	—
	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months		Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	2	$	1

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the period ended June 30, 2022. 

	Location of Gain (Loss) Recognized in
Derivative Instruments	Income on Derivatives	Three Months		Six Months
Interest rate swaps	Interest expense	$	—	$	1
	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months		Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	4	$	8

Derivative Positions Eligible for Offset with Related Cash Collateral

The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged.

	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
June 30, 2023
Derivatives
PPL	$	1	$	1	$	—	$	—	$	30	$	1	$	—	$	29
LG&E	—		—		—		—		7		—		—		7

	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
December 31, 2022
Derivatives
PPL	$	25	$	20	$	—	$	5	$	73	$	62	$	—	$	11
LG&E	—		—		—		—		7		—		—		7

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Asset Retirement Obligations (Tables)

6 Months Ended

Jun. 30, 2023

Asset Retirement Obligation [Line Items]

Asset Retirement Obligation Roll Forward

The changes in the carrying amounts of AROs were as follows.

	PPL		LG&E		KU
Balance at December 31, 2022	$	177	$	86	$	82
Accretion	4		2		2
New obligations incurred	2		1		1
Changes in estimated cash flow or settlement date	(1)		1		—
Obligations settled	(16)		(6)		(10)
Other	(5)		(6)		—
Balance at June 30, 2023	$	161	$	78	$	75

Louisville Gas And Electric Co [Member]

Asset Retirement Obligation [Line Items]

Asset Retirement Obligation Roll Forward

The changes in the carrying amounts of AROs were as follows.

	PPL		LG&E		KU
Balance at December 31, 2022	$	177	$	86	$	82
Accretion	4		2		2
New obligations incurred	2		1		1
Changes in estimated cash flow or settlement date	(1)		1		—
Obligations settled	(16)		(6)		(10)
Other	(5)		(6)		—
Balance at June 30, 2023	$	161	$	78	$	75

Kentucky Utilities Co [Member]

Asset Retirement Obligation [Line Items]

Asset Retirement Obligation Roll Forward

The changes in the carrying amounts of AROs were as follows.

	PPL		LG&E		KU
Balance at December 31, 2022	$	177	$	86	$	82
Accretion	4		2		2
New obligations incurred	2		1		1
Changes in estimated cash flow or settlement date	(1)		1		—
Obligations settled	(16)		(6)		(10)
Other	(5)		(6)		—
Balance at June 30, 2023	$	161	$	78	$	75

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Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2023

Accumulated Other Comprehensive Income (Loss) [Line Items]

Schedule of Accumulated Other Comprehensive Income (Loss)

The after-tax changes in AOCI by component for the periods ended June 30 were as follows.

	Unrealized gains (losses)  on qualifying derivatives				Defined benefit plans
			Equity investees' AOCI		Prior service costs		Actuarial gain (loss)		Total
PPL
March 31, 2023	$	4	$	3	$	(5)	$	(125)	$	(123)
Amounts arising during the period	—		—		—		(15)		(15)
Reclassifications from AOCI	—		—		1		—		1
Net OCI during the period	—		—		1		(15)		(14)
June 30, 2023	$	4	$	3	$	(4)	$	(140)	$	(137)
December 31, 2022	$	3	$	2	$	(5)	$	(124)	$	(124)
Amounts arising during the period	—		1		—		(15)		(14)
Reclassifications from AOCI	1		—		1		(1)		1
Net OCI during the period	1		1		1		(16)		(13)
June 30, 2023	$	4	$	3	$	(4)	$	(140)	$	(137)
March 31, 2022	$	2	$	1	$	(6)	$	(149)	$	(152)
Amounts arising during the period	—		1		—		21		22
Reclassifications from AOCI	—		—		—		6		6
Net OCI during the period	—		1		—		27		28
June 30, 2022	$	2	$	2	$	(6)	$	(122)	$	(124)
December 31, 2021	$	1	$	—	$	(6)	$	(152)	$	(157)
Amounts arising during the period	—		2		(1)		21		22
Reclassifications from AOCI	1		—		1		9		11
Net OCI during the period	1		2		—		30		33
June 30, 2022	$	2	$	2	$	(6)	$	(122)	$	(124)

Reclassification out of Other Comprehensive Income (Loss)

The following table presents PPL's gains (losses) and related income taxes for reclassifications from AOCI for the periods ended June 30.

	Three Months				Six Months				Affected Line Item on the
Details about AOCI	2023		2022		2023		2022		Statements of Income
Qualifying derivatives
Interest rate swaps	$	(1)	$	(1)	$	(2)	$	(2)	Interest Expense
Total Pre-tax	(1)		(1)		(2)		(2)
Income Taxes	1		1		1		1
Total After-tax	—		—		(1)		(1)
Defined benefit plans
Prior service costs (a)	(1)		—		(1)		(1)
Net actuarial loss (a)	1		(8)		2		(12)
Total Pre-tax	—		(8)		1		(13)
Income Taxes	(1)		2		(1)		3
Total After-tax	(1)		(6)		—		(10)
Total reclassifications during the period	$	(1)	$	(6)	$	(1)	$	(11)

(a)    These AOCI components are included in the computation of net periodic defined benefit cost. See Note 9 for additional information.

XML

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Summary Of Significant Accounting Policies [Line Items]
Goodwill	$ 2,247	$ 2,248
Reconciliation of Cash, Cash Equivalents and Restricted Cash from the Balance Sheet to Cash Flow Statement [Line Items]
Cash and cash equivalents	326	356
Restricted Cash, Current	1	1
Cash, Cash Equivalents and Restricted Cash	327	357
PPL Electric Utilities Corp [Member]
Reconciliation of Cash, Cash Equivalents and Restricted Cash from the Balance Sheet to Cash Flow Statement [Line Items]
Cash and cash equivalents	26	25
Louisville Gas And Electric Co [Member]
Summary Of Significant Accounting Policies [Line Items]
Goodwill	389	389
Reconciliation of Cash, Cash Equivalents and Restricted Cash from the Balance Sheet to Cash Flow Statement [Line Items]
Cash and cash equivalents	7	93	$ 18	$ 9
Kentucky Utilities Co [Member]
Summary Of Significant Accounting Policies [Line Items]
Goodwill	607	607
Reconciliation of Cash, Cash Equivalents and Restricted Cash from the Balance Sheet to Cash Flow Statement [Line Items]
Cash and cash equivalents	$ 9	$ 21	$ 17	$ 13

XML

Segment and Related Information (Details) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) Integer	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Income Statement Data [Abstract]
Operating Revenues from external customers		$ 1,823	$ 1,696	$ 4,238	$ 3,478
Net income (loss)		112	119	397	392
Balance Sheet Data [Abstract]
Assets		38,296		38,296		$ 37,837
Segment (Numeric) [Abstract]
Goodwill		2,247		$ 2,247		2,248
Number of Reportable Segments | Integer				3
Kentucky Regulated [Member]
Income Statement Data [Abstract]
Operating Revenues from external customers		778	883	$ 1,738	1,887
Net income (loss)		91	112	257	301
Balance Sheet Data [Abstract]
Assets		16,794		16,794		16,904
Pennsylvania Regulated [Member]
Income Statement Data [Abstract]
Operating Revenues from external customers		667	676	1,558	1,451
Net income (loss)		110	124	248	267
Balance Sheet Data [Abstract]
Assets		13,929		13,929		13,565
Corporate and Other [Member]
Income Statement Data [Abstract]
Operating Revenues from external customers		1	9	0	12
Net income (loss)		(99)	(88)	(172)	(147)
Balance Sheet Data [Abstract]
Assets		1,356		1,356		1,287
Rhode Island Regulated
Income Statement Data [Abstract]
Operating Revenues from external customers		377	128	942	128
Net income (loss)		10	(29)	64	(29)
Balance Sheet Data [Abstract]
Assets		6,217		6,217		6,081
Segment (Numeric) [Abstract]
Goodwill		725		725
PPL Electric Utilities Corp [Member]
Income Statement Data [Abstract]
Operating Revenues from external customers		667	676	1,558	1,451
Net income (loss)	[1]	110	124	248	267
Balance Sheet Data [Abstract]
Assets		13,929		$ 13,929		13,565
Segment (Numeric) [Abstract]
Number of Reportable Segments | Integer				1
Number of Operating Segments | Integer				2
Louisville Gas And Electric Co [Member]
Income Statement Data [Abstract]
Operating Revenues from external customers		355	410	$ 829	903
Net income (loss)	[2]	45	54	131	147
Balance Sheet Data [Abstract]
Assets		7,619		7,619		7,810
Segment (Numeric) [Abstract]
Goodwill		389		$ 389		389
Number of Reportable Segments | Integer				1
Number of Operating Segments | Integer				1
Kentucky Utilities Co [Member]
Income Statement Data [Abstract]
Operating Revenues from external customers		435	491	$ 934	1,016
Net income (loss)	[3]	51	$ 66	139	$ 173
Balance Sheet Data [Abstract]
Assets		9,610		9,610		9,542
Segment (Numeric) [Abstract]
Goodwill		$ 607		$ 607		$ 607
Number of Reportable Segments | Integer				1
Number of Operating Segments | Integer				1

[1] Net income equals comprehensive income.

[2] Net income equals comprehensive income.

[3] Net income equals comprehensive income.

XML

Revenue from Contracts with Customers (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Reconciliation of Revenue from Contracts with Customers [Abstract]
Operating Revenues	$ 1,823	$ 1,696	$ 4,238	$ 3,478
Alternative Revenue Programs	5	(40)	42	(67)
Other Revenue	(7)	(6)	(11)	(13)
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	1,821	1,650	4,269	3,398
Contract with Customer, Asset and Liability [Abstract]
Accounts Receivable, Credit Loss Expense (Reversal)	6	25	26	33
Contract with Customer, Liability	48	33	48	33	$ 34	$ 42
Contract with Customer, Liability, Revenue Recognized			18	24
Residential [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	779	699	2,079	1,630
Commercial [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	391	380	914	758
Industrial [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	175	198	371	367
Other [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	228	163	516	261
Wholesale - municipal [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	4	8	11	14
Wholesale - other [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	9	26	20	45
Transmission [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	235	176	358	323
Pennsylvania Regulated [Member]
Reconciliation of Revenue from Contracts with Customers [Abstract]
Operating Revenues	667	676	1,558	1,451
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	668	650	1,558	1,385
Pennsylvania Regulated [Member] | Residential [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	340	329	968	782
Pennsylvania Regulated [Member] | Commercial [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	105	117	253	225
Pennsylvania Regulated [Member] | Industrial [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	11	30	34	45
Pennsylvania Regulated [Member] | Other [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	13	14	26	26
Pennsylvania Regulated [Member] | Wholesale - municipal [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	0	0	0	0
Pennsylvania Regulated [Member] | Wholesale - other [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	0	0	0	0
Pennsylvania Regulated [Member] | Transmission [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	199	160	277	307
Kentucky Regulated [Member]
Reconciliation of Revenue from Contracts with Customers [Abstract]
Operating Revenues	778	883	1,738	1,887
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	774	884	1,733	1,894
Kentucky Regulated [Member] | Residential [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	298	339	741	817
Kentucky Regulated [Member] | Commercial [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	237	251	511	521
Kentucky Regulated [Member] | Industrial [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	160	167	324	321
Kentucky Regulated [Member] | Other [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	66	93	126	176
Kentucky Regulated [Member] | Wholesale - municipal [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	4	8	11	14
Kentucky Regulated [Member] | Wholesale - other [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	9	26	20	45
Kentucky Regulated [Member] | Transmission [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers		0	0	0
Corporate and Other [Member]
Reconciliation of Revenue from Contracts with Customers [Abstract]
Operating Revenues	1	9	0	12
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	0	9	0	12
Corporate and Other [Member] | Residential [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	0	0	0	0
Corporate and Other [Member] | Commercial [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	0	0	0	0
Corporate and Other [Member] | Industrial [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	0	0	0	0
Corporate and Other [Member] | Other [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	0	9	0	12
Corporate and Other [Member] | Wholesale - municipal [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	0	0	0	0
Corporate and Other [Member] | Wholesale - other [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	0	0	0	0
Corporate and Other [Member] | Transmission [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	0	0	0	0
Rhode Island Regulated
Reconciliation of Revenue from Contracts with Customers [Abstract]
Operating Revenues	377	128	942	128
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	379	107	978	107
Rhode Island Regulated | Residential [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	141	31	370	31
Rhode Island Regulated | Commercial [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	49	12	150	12
Rhode Island Regulated | Industrial [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	4	1	13	1
Rhode Island Regulated | Other [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	149	47	364	47
Rhode Island Regulated | Wholesale - municipal [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	0	0	0	0
Rhode Island Regulated | Wholesale - other [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	0	0	0	0
Rhode Island Regulated | Transmission [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	36	16	81	16
PPL Electric [Member]
Contract with Customer, Asset and Liability [Abstract]
Amortization of Revenue Reserve for ROE Challenge	30		74
PPL Electric Utilities Corp [Member]
Reconciliation of Revenue from Contracts with Customers [Abstract]
Operating Revenues	667	676	1,558	1,451
Alternative Revenue Programs	6	(23)	7	(59)
Other Revenue	(5)	(3)	(7)	(7)
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	668	650	1,558	1,385
Contract with Customer, Asset and Liability [Abstract]
Accounts Receivable, Credit Loss Expense (Reversal)	7	0	17	5
Contract with Customer, Liability	35	16	35	16	23	25
Contract with Customer, Liability, Revenue Recognized			7	12
Amortization of Revenue Reserve for ROE Challenge	30		74
PPL Electric Utilities Corp [Member] | Residential [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	340	329	968	782
PPL Electric Utilities Corp [Member] | Commercial [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	105	117	253	225
PPL Electric Utilities Corp [Member] | Industrial [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	11	30	34	45
PPL Electric Utilities Corp [Member] | Other [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	13	14	26	26
PPL Electric Utilities Corp [Member] | Wholesale - municipal [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	0	0	0	0
PPL Electric Utilities Corp [Member] | Wholesale - other [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	0	0	0	0
PPL Electric Utilities Corp [Member] | Transmission [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	199	160	277	307
Louisville Gas And Electric Co [Member]
Reconciliation of Revenue from Contracts with Customers [Abstract]
Operating Revenues	355	410	829	903
Alternative Revenue Programs	0	3	1	9
Other Revenue	(1)	(2)	(2)	(4)
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	354	411	828	908
Contract with Customer, Asset and Liability [Abstract]
Accounts Receivable, Credit Loss Expense (Reversal)	0	1	1	2
Contract with Customer, Liability	6	6	6	6	5	6
Contract with Customer, Liability, Revenue Recognized			5	6
Louisville Gas And Electric Co [Member] | Residential [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	151	169	392	415
Louisville Gas And Electric Co [Member] | Commercial [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	119	124	271	270
Louisville Gas And Electric Co [Member] | Industrial [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	47	49	96	94
Louisville Gas And Electric Co [Member] | Other [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	26	47	42	86
Louisville Gas And Electric Co [Member] | Wholesale - municipal [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	0	0	0	0
Louisville Gas And Electric Co [Member] | Wholesale - other [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	11	22	27	43
Louisville Gas And Electric Co [Member] | Transmission [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	0	0	0	0
Kentucky Utilities Co [Member]
Reconciliation of Revenue from Contracts with Customers [Abstract]
Operating Revenues	435	491	934	1,016
Alternative Revenue Programs	(3)	1	(3)	4
Other Revenue	(1)	(2)	(2)	(3)
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	431	490	929	1,017
Contract with Customer, Asset and Liability [Abstract]
Accounts Receivable, Credit Loss Expense (Reversal)	1	1	1	2
Contract with Customer, Liability	7	5	7	5	$ 6	$ 6
Contract with Customer, Liability, Revenue Recognized			6	6
Kentucky Utilities Co [Member] | Residential [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	147	170	349	402
Kentucky Utilities Co [Member] | Commercial [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	117	127	240	251
Kentucky Utilities Co [Member] | Industrial [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	113	118	228	227
Kentucky Utilities Co [Member] | Other [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	40	45	84	89
Kentucky Utilities Co [Member] | Wholesale - municipal [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	4	8	11	14
Kentucky Utilities Co [Member] | Wholesale - other [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	10	22	17	34
Kentucky Utilities Co [Member] | Transmission [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	$ 0	$ 0	$ 0	$ 0

XML

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income (Numerator) [Abstract]
Net income (loss)	$ 112	$ 119	$ 397	$ 392
Less amounts allocated to participating securities	0	0	1	0
Net income (loss) available to PPL common shareowners - Basic	112	119	396	392
Net income (loss) available to PPL common shareowners - Diluted	$ 112	$ 119	$ 396	$ 392
Shares of Common Stock (Denominator) [Abstract]
Weighted-average shares - Basic EPS (in shares)	737,075	735,977	736,953	735,741
Add incremental non-participating securities: [Abstract]
Share-based payment awards (in shares)	1,102	792	985	737
Weighted-average shares - Diluted EPS (in shares)	738,177	736,769	737,938	736,478
Income (Loss) from Continuing Operations after income taxes, Diluted	$ 0.15	$ 0.16	$ 0.54	$ 0.53
Income (Loss) from Continuing Operations After Income Taxes, Basic	0.15	0.16	0.54	0.53
Basic EPS - Available to PPL common shareowners: [Abstract]
Net Income Available to PPL common shareowners (in dollars per share)	0.15	0.16	0.54	0.53
Diluted EPS - Available to PPL common shareowners: [Abstract]
Net Income Available to PPL common shareowners (in dollars per share)	$ 0.15	$ 0.16	$ 0.54	$ 0.53
Shares Issued (Numeric) [Abstract]
Common stock issued under stock-based compensation plans (in shares)	0	0	0	124
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the computations of diluted EPS	258	66	396	110

XML

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Reconciliation of Income Tax Expense [Abstract]
Federal income tax on Income Before Income Taxes at statutory tax rate	$ 30	$ 32	$ 107	$ 104
Increase (decrease) due to: [Abstract]
State income taxes, net of federal income tax benefit	11	27	33	48
Depreciation and other items not normalized	(2)	(5)	(7)	(8)
Valuation allowance adjustments	5	7	7	10
Amortization of excess deferred income taxes	(8)	(22)	(20)	(40)
Other	(3)	(3)	(7)	(1)
Total increase (decrease)	3	0	5	2
Total income tax expense (benefit)	33	32	112	106
Amortization of investment tax credit including deferred taxes on basis adjustment	0	(4)	(1)	(7)
PPL Electric Utilities Corp [Member]
Reconciliation of Income Tax Expense [Abstract]
Federal income tax on Income Before Income Taxes at statutory tax rate	31	35	70	76
Increase (decrease) due to: [Abstract]
State income taxes, net of federal income tax benefit	11	13	24	28
Depreciation and other items not normalized	(3)	(3)	(7)	(6)
Amortization of excess deferred income taxes	(2)	(2)	(4)	(5)
Other	1	1	0	1
Total increase (decrease)	7	9	13	18
Total income tax expense (benefit)	38	44	83	94
Louisville Gas And Electric Co [Member]
Reconciliation of Income Tax Expense [Abstract]
Federal income tax on Income Before Income Taxes at statutory tax rate	12	13	35	37
Increase (decrease) due to: [Abstract]
State income taxes, net of federal income tax benefit	2	2	6	7
Amortization of excess deferred income taxes	(3)	(7)	(6)	(14)
Other	0	1	(1)	(2)
Total increase (decrease)	(1)	(4)	(1)	(9)
Total income tax expense (benefit)	11	9	34	28
Kentucky Utilities Co [Member]
Reconciliation of Income Tax Expense [Abstract]
Federal income tax on Income Before Income Taxes at statutory tax rate	13	17	36	45
Increase (decrease) due to: [Abstract]
State income taxes, net of federal income tax benefit	3	3	7	8
Amortization of excess deferred income taxes	(4)	(6)	(8)	(12)
Other	1	1	0	(2)
Total increase (decrease)	0	(2)	(1)	(6)
Total income tax expense (benefit)	$ 13	$ 15	$ 35	$ 39

XML

Utility Rate Regulation - Regulatory Assets (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Regulatory Assets [Line Items]
Current regulatory assets	$ 331	$ 258
Noncurrent regulatory assets	1,826	1,819
Plant outage costs [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	42	46
Gas supply clause [Member]
Regulatory Assets [Line Items]
Current regulatory assets	0	41
Smart Meter Rider [Member]
Regulatory Assets [Line Items]
Current regulatory assets	5	5
Transmission Service Charge [Member]
Regulatory Assets [Line Items]
Current regulatory assets	12	0
Defined Benefit Plans [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	783	778
Storm Costs [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	111	118
Storm Costs [Member] | LGE [Member] | Kentucky Public Service Commission [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	8
Storm Costs [Member] | KU [Member] | Kentucky Public Service Commission [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	11
Unamortized Loss On Debt [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	24	21
Interest Rate Swaps [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	6	7
Terminated Interest Rate Swaps [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	61	63
Accumulated Cost Of Removal Of Utility Plant [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	195	212
Asset Retirement Obligations [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	292	295
Other Regulatory Assets [Member]
Regulatory Assets [Line Items]
Current regulatory assets	42	20
Noncurrent regulatory assets	77	69
Fuel adjustment clause [Member]
Regulatory Assets [Line Items]
Current regulatory assets	9	38
Net metering
Regulatory Assets [Line Items]
Noncurrent regulatory assets	89	61
Rate adjustment mechanism
Regulatory Assets [Line Items]
Current regulatory assets	214	96
Environmental Cost Recovery [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	101	102
Taxs recoverable through future rates
Regulatory Assets [Line Items]
Noncurrent regulatory assets	38	47
Derivative Instruments [Member]
Regulatory Assets [Line Items]
Current regulatory assets	15	41
Noncurrent regulatory assets	7	0
Renewable energy certificates
Regulatory Assets [Line Items]
Current regulatory assets	13	14
Universal Service Rider [Member]
Regulatory Assets [Line Items]
Current regulatory assets	21	3
PPL Electric Utilities Corp [Member]
Regulatory Assets [Line Items]
Current regulatory assets	49	13
Noncurrent regulatory assets	552	568
PPL Electric Utilities Corp [Member] | Plant outage costs [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	0	0
PPL Electric Utilities Corp [Member] | Gas supply clause [Member]
Regulatory Assets [Line Items]
Current regulatory assets	0	0
PPL Electric Utilities Corp [Member] | Smart Meter Rider [Member]
Regulatory Assets [Line Items]
Current regulatory assets	5	5
PPL Electric Utilities Corp [Member] | Transmission Service Charge [Member]
Regulatory Assets [Line Items]
Current regulatory assets	12	0
PPL Electric Utilities Corp [Member] | Defined Benefit Plans [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	353	353
PPL Electric Utilities Corp [Member] | Storm Costs [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	0	0
PPL Electric Utilities Corp [Member] | Unamortized Loss On Debt [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	4	3
PPL Electric Utilities Corp [Member] | Interest Rate Swaps [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	0	0
PPL Electric Utilities Corp [Member] | Terminated Interest Rate Swaps [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	0	0
PPL Electric Utilities Corp [Member] | Accumulated Cost Of Removal Of Utility Plant [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	195	212
PPL Electric Utilities Corp [Member] | Asset Retirement Obligations [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	0	0
PPL Electric Utilities Corp [Member] | Other Regulatory Assets [Member]
Regulatory Assets [Line Items]
Current regulatory assets	11	5
Noncurrent regulatory assets	0	0
PPL Electric Utilities Corp [Member] | Fuel adjustment clause [Member]
Regulatory Assets [Line Items]
Current regulatory assets	0	0
PPL Electric Utilities Corp [Member] | Net metering
Regulatory Assets [Line Items]
Noncurrent regulatory assets	0	0
PPL Electric Utilities Corp [Member] | Rate adjustment mechanism
Regulatory Assets [Line Items]
Current regulatory assets	0	0
PPL Electric Utilities Corp [Member] | Environmental Cost Recovery [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	0	0
PPL Electric Utilities Corp [Member] | Taxs recoverable through future rates
Regulatory Assets [Line Items]
Noncurrent regulatory assets	0	0
PPL Electric Utilities Corp [Member] | Derivative Instruments [Member]
Regulatory Assets [Line Items]
Current regulatory assets	0	0
Noncurrent regulatory assets	0	0
PPL Electric Utilities Corp [Member] | Renewable energy certificates
Regulatory Assets [Line Items]
Current regulatory assets	0	0
PPL Electric Utilities Corp [Member] | Universal Service Rider [Member]
Regulatory Assets [Line Items]
Current regulatory assets	21	3
Louisville Gas And Electric Co [Member]
Regulatory Assets [Line Items]
Current regulatory assets	4	23
Noncurrent regulatory assets	384	373
Louisville Gas And Electric Co [Member] | Plant outage costs [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	11	12
Louisville Gas And Electric Co [Member] | Gas supply clause [Member]
Regulatory Assets [Line Items]
Current regulatory assets	0	13
Louisville Gas And Electric Co [Member] | Smart Meter Rider [Member]
Regulatory Assets [Line Items]
Current regulatory assets	0	0
Louisville Gas And Electric Co [Member] | Transmission Service Charge [Member]
Regulatory Assets [Line Items]
Current regulatory assets	0	0
Louisville Gas And Electric Co [Member] | Defined Benefit Plans [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	208	209
Louisville Gas And Electric Co [Member] | Storm Costs [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	15	7
Louisville Gas And Electric Co [Member] | Storm Costs [Member] | Kentucky Public Service Commission [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	8
Louisville Gas And Electric Co [Member] | Unamortized Loss On Debt [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	11	11
Louisville Gas And Electric Co [Member] | Interest Rate Swaps [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	6	7
Louisville Gas And Electric Co [Member] | Terminated Interest Rate Swaps [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	36	37
Louisville Gas And Electric Co [Member] | Accumulated Cost Of Removal Of Utility Plant [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	0	0
Louisville Gas And Electric Co [Member] | Asset Retirement Obligations [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	76	76
Louisville Gas And Electric Co [Member] | Other Regulatory Assets [Member]
Regulatory Assets [Line Items]
Current regulatory assets	2	1
Noncurrent regulatory assets	21	14
Louisville Gas And Electric Co [Member] | Fuel adjustment clause [Member]
Regulatory Assets [Line Items]
Current regulatory assets	2	9
Louisville Gas And Electric Co [Member] | Net metering
Regulatory Assets [Line Items]
Noncurrent regulatory assets	0	0
Louisville Gas And Electric Co [Member] | Rate adjustment mechanism
Regulatory Assets [Line Items]
Current regulatory assets	0	0
Louisville Gas And Electric Co [Member] | Environmental Cost Recovery [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	0	0
Louisville Gas And Electric Co [Member] | Taxs recoverable through future rates
Regulatory Assets [Line Items]
Noncurrent regulatory assets	0	0
Louisville Gas And Electric Co [Member] | Derivative Instruments [Member]
Regulatory Assets [Line Items]
Current regulatory assets	0	0
Noncurrent regulatory assets	0	0
Louisville Gas And Electric Co [Member] | Renewable energy certificates
Regulatory Assets [Line Items]
Current regulatory assets	0	0
Louisville Gas And Electric Co [Member] | Universal Service Rider [Member]
Regulatory Assets [Line Items]
Current regulatory assets	0	0
Kentucky Utilities Co [Member]
Regulatory Assets [Line Items]
Current regulatory assets	10	32
Noncurrent regulatory assets	447	442
Kentucky Utilities Co [Member] | Plant outage costs [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	31	34
Kentucky Utilities Co [Member] | Gas supply clause [Member]
Regulatory Assets [Line Items]
Current regulatory assets	0	0
Kentucky Utilities Co [Member] | Smart Meter Rider [Member]
Regulatory Assets [Line Items]
Current regulatory assets	0	0
Kentucky Utilities Co [Member] | Transmission Service Charge [Member]
Regulatory Assets [Line Items]
Current regulatory assets	0	0
Kentucky Utilities Co [Member] | Defined Benefit Plans [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	139	140
Kentucky Utilities Co [Member] | Storm Costs [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	14	3
Kentucky Utilities Co [Member] | Storm Costs [Member] | Kentucky Public Service Commission [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	11
Kentucky Utilities Co [Member] | Unamortized Loss On Debt [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	7	7
Kentucky Utilities Co [Member] | Interest Rate Swaps [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	0	0
Kentucky Utilities Co [Member] | Terminated Interest Rate Swaps [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	25	26
Kentucky Utilities Co [Member] | Accumulated Cost Of Removal Of Utility Plant [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	0	0
Kentucky Utilities Co [Member] | Asset Retirement Obligations [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	216	219
Kentucky Utilities Co [Member] | Other Regulatory Assets [Member]
Regulatory Assets [Line Items]
Current regulatory assets	3	3
Noncurrent regulatory assets	15	13
Kentucky Utilities Co [Member] | Fuel adjustment clause [Member]
Regulatory Assets [Line Items]
Current regulatory assets	7	29
Kentucky Utilities Co [Member] | Net metering
Regulatory Assets [Line Items]
Noncurrent regulatory assets	0	0
Kentucky Utilities Co [Member] | Rate adjustment mechanism
Regulatory Assets [Line Items]
Current regulatory assets	0	0
Kentucky Utilities Co [Member] | Environmental Cost Recovery [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	0	0
Kentucky Utilities Co [Member] | Taxs recoverable through future rates
Regulatory Assets [Line Items]
Noncurrent regulatory assets	0	0
Kentucky Utilities Co [Member] | Derivative Instruments [Member]
Regulatory Assets [Line Items]
Current regulatory assets	0	0
Noncurrent regulatory assets	0	0
Kentucky Utilities Co [Member] | Renewable energy certificates
Regulatory Assets [Line Items]
Current regulatory assets	0	0
Kentucky Utilities Co [Member] | Universal Service Rider [Member]
Regulatory Assets [Line Items]
Current regulatory assets	$ 0	$ 0

XML

Utility Rate Regulation - Regulatory Liabilities (Details) - USD ($)
$ in Millions

6 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Regulatory Liabilities [Line Items]

Current regulatory liabilities

$ 280

$ 238

Noncurrent regulatory liabilities

$ 3,421

3,412

Utility Rate Regulation

6. Utility Rate Regulation

(All Registrants)

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

	PPL				PPL Electric				LG&E				KU
	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Current Regulatory Assets:
Gas supply clause	$	—	$	41	$	—	$	—	$	—	$	13	$	—	$	—
Rate adjustment mechanisms	214		96		—		—		—		—		—		—
Renewable energy certificates	13		14		—		—		—		—		—		—
Derivative instruments	15		41		—		—		—		—		—		—
Smart meter rider	5		5		5		5		—		—		—		—
Universal service rider	21		3		21		3		—		—		—		—
Fuel adjustment clause	9		38		—		—		2		9		7		29
Transmission service charge	12		—		12		—		—		—		—		—
Other	42		20		11		5		2		1		3		3
Total current regulatory assets	$	331	$	258	$	49	$	13	$	4	$	23	$	10	$	32
Noncurrent Regulatory Assets:
Defined benefit plans	$	783	$	778	$	353	$	353	$	208	$	209	$	139	$	140
Plant outage costs	42		46		—		—		11		12		31		34
Net metering	89		61		—		—		—		—		—		—
Environmental cost recovery	101		102		—		—		—		—		—		—
Taxes recoverable through future rates	38		47		—		—		—		—		—		—
Storm costs	111		118		—		—		15		7		14		3
Unamortized loss on debt	24		21		4		3		11		11		7		7
Interest rate swaps	6		7		—		—		6		7		—		—
Terminated interest rate swaps	61		63		—		—		36		37		25		26
Accumulated cost of removal of utility plant	195		212		195		212		—		—		—		—
AROs	292		295		—		—		76		76		216		219
Derivatives instruments	7		—		—		—		—		—		—		—
Other	77		69		—		—		21		14		15		13
Total noncurrent regulatory assets	$	1,826	$	1,819	$	552	$	568	$	384	$	373	$	447	$	442

	PPL				PPL Electric				LG&E				KU
	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Current Regulatory Liabilities:
Generation supply charge	$	41	$	37	$	41	$	37	$	—	$	—	$	—	$	—
Transmission service charge	—		14		—		7		—		—		—		—
TCJA customer refund	6		15		6		15		—		—		—		—
Act 129 compliance rider	15		14		15		14		—		—		—		—
Transmission formula rate	23		12		20		12		—		—		—		—
Rate adjustment mechanism	133		96		—		—		—		—		—		—
Energy efficiency	23		23		—		—		—		—		—		—
Gas supply clause	16		—		—		—		16		—		—		—
Other	23		27		—		—		3		7		2		6
Total current regulatory liabilities	$	280	$	238	$	82	$	85	$	19	$	7	$	2	$	6

	PPL				PPL Electric				LG&E				KU
	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	978	$	950	$	—	$	—	$	296	$	287	$	396	$	389
Power purchase agreement - OVEC	22		26		—		—		15		18		7		8
Net deferred taxes	2,054		2,094		776		775		469		477		535		546
Defined benefit plans	225		187		59		45		21		21		57		56
Terminated interest rate swaps	58		60		—		—		29		30		29		30
Energy efficiency	39		32		—		—		—		—		—		—
Other	45		63		—		—		3		—		8		—
Total noncurrent regulatory liabilities	$	3,421	$	3,412	$	835	$	820	$	833	$	833	$	1,032	$	1,029

Regulatory Matters

Rhode Island Activities (PPL)

Rate Case proceedings

Pursuant to Report and Order No. 23823 issued May 5, 2020, the RIPUC approved the terms of an Amended Settlement Agreement (ASA), reflecting an allowed return on equity (ROE) rate of 9.275% based on a common equity ratio of approximately 51%. RIE is currently in year five of the multi-year rate plan (Rate Plan). On June 30, 2021, the Rhode Island Division of Public Utilities and Carriers consented to an open-ended extension of the term of the Rate Plan. Pursuant to the settlement with the Rhode Island Office of the Attorney General in connection with the acquisition of RIE by PPL, RIE currently does not anticipate filing a new base rate case before May 25, 2025. Pursuant to the open-ended extension, the Rate Year 3 level of base distribution rates under ASA will remain in effect and RIE will continue to operate under the current Rate Plan until a new Rate Plan is approved by the RIPUC.

The ASA includes additional provisions, including (i) an Electric Transportation Initiative (the ET Initiative) to facilitate the growth of Electric Vehicle (EV) adoption and scaling of the market for EV charging equipment to advance Rhode Island's zero emission vehicles and greenhouse gas emissions policy goals, (ii) two energy storage demonstration projects, which are on track for timely completion, (iii) an incentive-only performance incentive for System Efficiency: Annual Megawatt Capacity Savings, which sunset in 2021 and is now a tracking and reporting only metric, and (iv) several additional metrics for tracking and reporting purposes only. The RIPUC discussed the ET Initiative at an Open Meeting on August 30, 2022, advising RIE to seek RIPUC authorization to continue the ET Initiative and/or to alter any of the targets established in the ASA for Rate Year 5 and beyond. No votes or official rulings were taken; however, based on this feedback, RIE has paused the ET programs in Rate Year 5. As of June 30, 2023, the RIPUC had not made any rulings regarding the timing of crediting customers the deferral balance pursuant to the ASA. RIE cannot predict the outcome of this matter.

Advanced Metering Functionality and Grid Modernization

In 2021, RIE filed its Updated Advanced Metering Functionality (AMF) Business Case and Grid Modernization Plan (GMP) with the RIPUC in accordance with the ASA, and which, among other things, sought approval to deploy smart meters throughout the service territory. In 2021, the RIPUC stayed the AMF and GMP proceedings pending further consideration following the issuance of a final Order by the Rhode Island Division of Public Utilities and Carriers on the acquisition of RIE. RIE filed notice of withdrawal of the original Updated AMF Business Case and GMP with the RIPUC, and in November 2022 filed a new AMF Business Case with the RIPUC. The new AMF Business Case filing consists of a detailed proposal for full-scale deployment of AMF across its electric service territory. The proposal will enable significant customer and grid benefits in line with the state’s climate mandates. In its filing, RIE estimated that the proposed program would cost $188 million on a net present value (NPV) basis and provide benefits of $729 million NPV over the 20-year project life, yielding a benefit-cost ratio of 3.9%. RIE believes AMF is a foundational technology that is a necessary first step to transforming Rhode Island’s electric distribution system.

In its filing, RIE requested a RIPUC decision by June 2023; the RIPUC issued a revised procedural schedule for the AMF Business Case filing that provides for hearings in July 2023. Evidentiary hearings commenced on July 20, 2023 and continued on July 25, 2023 through July 27, 2023. In addition, the RIPUC held a public comment hearing on April 4, 2023, and technical

sessions on February 22, 2023, May 10, 2023 and June 13, 2023. The RIPUC also held a separate evidentiary hearing on April 14, 2023, regarding certain Motions for Confidential Treatment by RIE.

RIE filed a new GMP with the RIPUC on December 30, 2022. The new GMP filing consists of a holistic suite of grid modernization investments that will provide RIE with the tools and capability to manage the electric distribution system more granularly considering a range of distributed energy resources adoption levels, accelerated by Rhode Island's climate mandates, while at the same time maintaining a safe and reliable electric distribution system. The GMP is an informational guidance document that supports the grid modernization investments to be proposed in future electric ISR plans. Consequently, RIE did not request approval from the RIPUC for any specific investments or seek cost recovery as part of the GMP; rather, RIE requested that the RIPUC issue an order affirming RIE’s compliance with its obligation to file a GMP that meets the requirements of the ASA.

COVID-19 Deferral Filing

On April 30, 2021, RIE filed a petition for approval to recognize regulatory assets related to COVID-19 impacts (RIPUC Docket No. 5154). In its petition, RIE sought the RIPUC's authorization to create regulatory assets and consideration of future cost recovery for the following COVID-19 costs: (1) the increased cost of customer accounts receivable that RIE will be unable to collect as a result of the COVID-19 pandemic, and the executive orders and RIPUC orders restricting RIE's collection activities as a result of the pandemic, which will result in increased net charge-offs; (2) lost revenue from unassessed late payment charges; and (3) charges to RIE for other fees that RIE has waived pursuant to the RIPUC's orders in RIPUC Docket No. 5022. RIE is evaluating its request to create a regulatory asset for COVID-19-related bad debt expense to consider the impact, if any, of the proposed arrearage forgiveness sought in RIE’s Petition to Forgive Certain Arrearage Balances for Low-Income and Protected Customers in Docket No. 22-08-GE, which RIE filed with the RIPUC to fulfill its obligations under PPL's settlement with the Rhode Island Attorney General. RIE cannot predict the outcome of this matter.

FY 2023 Gas Infrastructure, Safety and Reliability (ISR) Plan

At an Open Meeting on March 29, 2022, the RIPUC conditionally approved RIE’s FY 2023 Gas ISR Plan and associated revenue requirement, subject to further review regarding RIE's Proactive Main Replacement Program and its decision to reconstruct and purchase heating and pressure regulation equipment located at RIE’s Wampanoag and Tiverton take stations. The RIPUC held an Open Meeting on September 13, 2022, and issued its Order on November 18, 2022 regarding the Proactive Main Replacement Program and made the following rulings: (1) commencing with the Gas ISR plan to be filed in this calendar year 2022 (prospectively), new main constructed to replace leak prone pipe will not be considered used and useful, and therefore not eligible for rate base treatment, until the related old main is abandoned; and (2) approved the proactive main replacement revenue requirement set forth in the FY2023 Gas ISR plan. Also, the RIPUC directed RIE to submit prefiled testimony on the issue of its replacement of heating and pressure regulation facilities at the Wampanoag and Tiverton take stations and to address three issues, specifically: (i) a cost-benefit analysis arising from RIE's decision to take ownership of the reconstructed take station equipment; (ii) the potential that the benefits derived from the reconstruction and ownership transfer of the take station equipment will not be realized due to the future use of hydrogen or abandonment of the gas system; and (iii) the depreciation and accounting treatment of the reconstructed take station equipment. RIE filed this testimony with the RIPUC on May 16, 2022, the RIPUC has not taken any action to date on this issue. RIE cannot predict the outcome of this matter.

FY 2024 Gas ISR Plan

On December 23, 2022, RIE filed its FY 2024 Gas ISR Plan with the RIPUC. At its January 20, 2023 Open Meeting, the RIPUC directed RIE to file supplemental budget and rate schedules to reflect an April 1 to March 31 fiscal year. The supplemental budget that was filed with the RIPUC on January 27, 2023 includes $187 million of capital investment spend. The supplemental rate schedules were filed on February 3, 2023. RIE and the Rhode Island Division of Public Utilities and Carriers reached an agreement on an approximately $171 million capital investment spending plan, and RIE filed a second supplemental budget on March 13, 2023. The RIPUC held a hearing on the plan on March 14, 2023. At an Open Meeting on March 29, 2023, the RIPUC approved the plan with an adjustment to the budget for the Proactive Main Replacement Program category resulting in a total approved FY 2024 Gas ISR Plan of $163 million for capital investment spend. On March 31, 2023, the RIPUC approved RIE's March 30, 2023 compliance filing for rates effective April 1, 2023. The RIPUC continues to consider the appropriate rate recovery treatment of projects not covered by an ISR plan for the applicable fiscal year, and additional definitions and procedures that may be implemented related to the ISR plan process. RIE cannot predict the outcome of this matter.

FY 2024 Electric ISR Plan

On December 23, 2022, RIE filed its FY 2024 Electric ISR Plan with the RIPUC. At its January 20, 2023 Open Meeting, the RIPUC directed RIE to file supplemental budget and rate schedules to reflect an April 1 to March 31 fiscal year. The supplemental budget filed with the RIPUC on January 27, 2023 includes $176 million of capital investment spend, $14 million of vegetation operations and management (O&M) spend and $3 million of Other O&M spend. The supplemental rate schedules were filed on February 3, 2023. RIE filed second supplemental budget schedules on March 21, 2023, which includes $166 million of capital investment spend, $14 million of vegetation management O&M spend and $1 million of Other O&M spend. The RIPUC held hearings in March 2023, and on March 29, 2023, approved the plan with modifications to the proposed capital investment spend, resulting in a total approved FY 2024 Electric ISR Plan of $112 million for capital investment spend, $14 million for vegetation management O&M spend, and $1 million for Other O&M spend. On March 31, 2023, the RIPUC approved RIE's March 30, 2023 compliance filing for rates effective April 1, 2023. The RIPUC continues to consider the appropriate rate recovery treatment of projects not covered by an ISR plan for the applicable fiscal year, and additional definitions and procedures that may be implemented related to the ISR plan process. RIE cannot predict the outcome of this matter.

Kentucky Activities (PPL, LG&E and KU)

CPCN and SB 4 Application

On December 15, 2022, LG&E and KU filed an application with the KPSC for a CPCN for the construction of two 621 MW net summer rating NGCC combustion turbine facilities, one at LG&E's Mill Creek Generating Station in Jefferson County, Kentucky and the other at KU's E.W. Brown Generating Station in Mercer County, Kentucky, including on-site natural gas and electric transmission construction associated with those facilities and site compatibility certificates. LG&E and KU also applied for a CPCN to construct a 120 MWac solar photovoltaic electric generating facility in Mercer County, Kentucky, and for a CPCN to acquire a 120 MWac solar facility to be built by a third-party solar developer in Marion County, Kentucky. LG&E and KU further applied for a CPCN to construct a 125 MW, 4-hour battery energy storage system facility at KU's E.W. Brown Generating Station and for approval of their proposed 2024-2030 DSM programs. The plan includes adding 14 new, adjusted or expanded energy efficiency programs, which would reduce LG&E's and KU's overall need by approximately 100 MW each. Finally, LG&E and KU requested a declaratory order to confirm that their entry into non-firm energy-only power-purchase agreements for the output of four solar photovoltaic facilities with a combined capacity of 637 MW does not require KPSC approval and that LG&E and KU may recover the costs of the solar PPAs through their fuel adjustment clause mechanisms as previously approved for a prior solar PPA. LG&E and KU plan to accrue AFUDC on the constructed NGCC facilities, the solar facility in Mercer County, Kentucky and the battery energy storage system facility and have requested regulatory asset treatment to recover the financing costs of these projects.

The new NGCC facilities would be jointly owned by LG&E (31%) and KU (69%) and the solar units would be jointly owned by LG&E (37%) and KU (63%), the battery storage unit would be owned by LG&E, and the proposed PPA transactions and DSM programs would be entered into or conducted jointly by LG&E and KU, consistent with LG&E and KU's shared dispatch, cost allocation, tariff or other frameworks.

The filing also notes planned retirement dates for certain existing coal-fired generation units, including Mill Creek 1 (300 MW) in 2024 and E.W. Brown 3 (412 MW) in 2028, and updates and advances the planned retirement dates for Mill Creek 2 (297 MW) to 2027 and Ghent 2 (486 MW) to 2028. LG&E and KU anticipate the recovery of associated retirement costs, including the remaining net book value, for these coal-fired generating units through the RAR or other rate mechanisms.

The KPSC accepted the CPCN filing as of January 6, 2023. On March 24, 2023, Kentucky Senate Bill 4 (SB 4) went into effect, which requires KPSC approval of fossil fuel-fired electric generating unit retirements in the state. On May 10, 2023, LG&E and KU filed an application with the KPSC seeking approval of the retirement of seven fossil fuel-fired generating units as required by the recently enacted SB 4. On May 16, 2023, the KPSC entered an Order consolidating the SB 4 filing proceeding into the CPCN case. The KPSC has indicated its intention to issue an order on all issues by November 6, 2023. PPL, LG&E and KU cannot predict the outcome of these matters.

Kentucky March 2023 Storm

On March 3, 2023, LG&E and KU experienced significant windstorm activity in their service territories, resulting in substantial damage to certain of LG&E's and KU's assets with total costs incurred through June 30, 2023 of $75 million ($33 million at

LG&E and $42 million at KU). On March 17, 2023, LG&E and KU submitted a filing with the KPSC requesting regulatory asset treatment of the extraordinary operations and maintenance expenses portion of the costs incurred related to the windstorm. On April 5, 2023, the KPSC issued an order approving the request for accounting purposes, noting that approval for recovery would be determined in LG&E’s and KU’s next base rate cases. As of June 30, 2023, LG&E and KU recorded regulatory assets related to the storm of $8 million and $11 million.

Pennsylvania Activities (PPL and PPL Electric)

PAPUC investigation into billing issues

On January 31, 2023, the PAPUC initiated an investigation focused on billing issues related to estimated, irregular bills and customer service concerns following customer complaints, which for many customers were driven by increased prices for electricity supply. Certain bills issued during the time period of December 20, 2022 through January 25, 2023 were estimated due to a technical issue that prevented PPL Electric from providing actual collected meter data to customer facing and other internal systems. Customers also reported difficulties accessing PPL Electric's website and contacting the customer service call center. The PAPUC’s Bureau of Investigation & Enforcement has directed PPL Electric to respond to certain inquiries and document requests. PPL Electric has submitted its responses to the information request and is cooperating fully with the investigation. PPL Electric cannot predict the outcome of this matter.

Federal Matters

FERC Transmission Rate Filing (PPL, LG&E and KU)

In 2018, LG&E and KU applied to the FERC requesting elimination of certain on-going waivers and credits to a sub-set of transmission customers relating to the 1998 merger of LG&E's and KU's parent entities and the 2006 withdrawal of LG&E and KU from the Midcontinent Independent System Operator, Inc. (MISO), a regional transmission operator and energy market. The application sought termination of LG&E's and KU's commitment to provide certain Kentucky municipalities mitigation for certain horizontal market power concerns arising out of the 1998 LG&E and KU merger and 2006 MISO withdrawal. The amounts at issue are generally waivers or credits granted to a limited number of Kentucky municipalities for either certain LG&E and KU or MISO transmission charges incurred for transmission service received. In 2019, the FERC granted LG&E's and KU's request to remove the ongoing credits, conditioned upon the implementation by LG&E and KU of a transition mechanism for certain existing power supply arrangements, which was subsequently filed, modified, and approved by the FERC in 2020 and 2021. In 2020, LG&E and KU and other parties filed appeals with the D.C. Circuit Court of Appeals regarding the FERC's orders on the elimination of the mitigation and required transition mechanism. In August 2022, the D.C. Circuit Court of Appeals issued an order remanding the proceedings back to the FERC. On May 18, 2023, the FERC issued an order on remand reversing its 2019 decision and requiring LG&E and KU to refund credits previously withheld, including under such transition mechanism. On June 9, 2023, the FERC granted LG&E’s and KU’s motion for an extension of time to process refunds until November 2023. LG&E and KU filed a request for rehearing of the May 18, 2023 order, which was denied by operation of law on July 17, 2023. LG&E and KU filed petition for review of FERC's May 18, 2023 order with the D.C. Circuit Court of Appeals on July 28, 2023. In the second quarter of 2023, LG&E and KU recorded regulatory liabilities of $3 million and $8 million related to potential refunds resulting from the FERC’s May 18, 2023 order. LG&E and KU cannot predict the ultimate outcome of the proceedings or any other post decision process but do not expect the annual impact to have a material effect on their operations or financial condition. LG&E and KU currently receive recovery of certain waivers and credits provided primarily through base rates with increases associated with the FERC's May 18, 2023 order expected to be primarily subject to base rate recovery in future rate proceedings.

Recovery of Transmission Costs (PPL)

Until December 2022, RIE's transmission facilities were operated in combination with the transmission facilities of National Grid's New England affiliates, Massachusetts Electric Company (MECO) and New England Power (NEP), as a single integrated system with NEP designated as the combined operator. As of January 1, 2023, RIE operates its own transmission facilities. NE-ISO allocates RIE's costs among transmission customers in New England, in accordance with the ISO Open Access Transmission Tariff (ISO-NE OATT). According to the FERC orders, RIE is compensated for its actual monthly transmission costs, with its authorized maximum ROE of 11.74% on its transmission assets.

The ROE for transmission rates under the ISO-NE OATT is the subject of four complaints that are pending before the FERC. On October 16, 2014, the FERC issued an order on the first complaint, Opinion No. 531-A, resetting the base ROE applicable

to transmission assets under the ISO-NE OATT from 11.14% to 10.57% effective as of October 16, 2014 and establishing a maximum ROE of 11.74%. On April 14, 2017, this order was vacated and remanded by the D. C. Circuit Court of Appeals (Court of Appeals). After the remand, the FERC issued an order on October 16, 2018 applicable to all four pending cases where it proposed a new base ROE methodology that, with subsequent input and support from the New England Transmission Owners (NETO), yielded a base ROE of 10.41%. Subsequent to the FERC's October 2018 order in the New England Transmission Owners cases, the FERC further refined its ROE methodology in another proceeding and has applied that refined methodology to transmission owners’ ROEs in other jurisdictions, and the NETOs filed further information in the New England matters to distinguish their case. Those determinations in other jurisdictions are currently on appeal before the Court of Appeals. The proceeding and the final base rate ROE determination in the New England matters remain open, pending a final order from the FERC. PPL cannot predict the outcome of this matter, and an estimate of the impact cannot be determined.

Other

Purchase of Receivables Program

(PPL and PPL Electric)

In accordance with a PAPUC-approved purchase of accounts receivable program, PPL Electric purchases certain accounts receivable from alternative electricity suppliers at a discount, which reflects a provision for uncollectible accounts. The alternative electricity suppliers have no continuing involvement or interest in the purchased accounts receivable. Accounts receivable that are acquired are initially recorded at fair value on the date of acquisition. During the three and six months ended June 30, 2023, PPL Electric purchased $374 million and $732 million of accounts receivable from alternative suppliers. During the three and six months ended June 30, 2022, PPL Electric purchased $273 million and $622 million of receivables.

(PPL)

In 2021 and 2022, the RIPUC approved various components of a Purchase of Receivables Program (POR) in Rhode Island for effect on April 1, 2022. Municipal aggregators and non-regulated power producers (collectively, Competitive Suppliers) are eligible to participate in accordance with RIE's approved electric tariffs for municipal aggregation and non-regulated power producers. Under the POR program, RIE will purchase the Competitive Suppliers' accounts receivables, including existing receivables, at discounted rates, regardless of whether RIE has collected the owed monies from customers. The program is intended to make RIE whole through the implementation of a discount rate or Standard Complete Bill Percentage (SCBP) paid by Competitive Suppliers. RIE calculates the SCBP for each customer class and files the calculations with the RIPUC for review and approval by February 15 of each year. At an Open Meeting on March 29, 2023, the RIPUC approved the SCBP for effect beginning on April 1, 2023, for a one-year period.

Generation Supply Charge [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

$ 41

37

TCJA customer refund [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

6

15

Act 129 Compliance Rider [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

15

14

Accumulated Cost Of Removal Of Utility Plant [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

978

950

Power Purchase Agreement OVEC [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

22

26

Net deferred taxes [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

2,054

2,094

Defined Benefit Plans [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

225

187

Terminated interest rate swaps [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

58

60

Other Regulatory Liabilities [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

23

27

Noncurrent regulatory liabilities

45

63

Transmission Service Charge [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

0

14

Energy efficiency charge

Regulatory Liabilities [Line Items]

Current regulatory liabilities

23

23

Noncurrent regulatory liabilities

39

32

Rate adjustment mechanism

Regulatory Liabilities [Line Items]

Current regulatory liabilities

133

96

Transmission Formula Rate [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

23

12

Gas supply clause [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

16

0

PPL Electric Utilities Corp [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

82

85

Noncurrent regulatory liabilities

835

820

PPL Electric Utilities Corp [Member] | Generation Supply Charge [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

41

37

PPL Electric Utilities Corp [Member] | TCJA customer refund [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

6

15

PPL Electric Utilities Corp [Member] | Act 129 Compliance Rider [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

15

14

PPL Electric Utilities Corp [Member] | Accumulated Cost Of Removal Of Utility Plant [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

0

0

PPL Electric Utilities Corp [Member] | Power Purchase Agreement OVEC [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

0

0

PPL Electric Utilities Corp [Member] | Net deferred taxes [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

776

775

PPL Electric Utilities Corp [Member] | Defined Benefit Plans [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

59

45

PPL Electric Utilities Corp [Member] | Terminated interest rate swaps [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

0

0

PPL Electric Utilities Corp [Member] | Other Regulatory Liabilities [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

0

0

Noncurrent regulatory liabilities

0

0

PPL Electric Utilities Corp [Member] | Transmission Service Charge [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

0

7

PPL Electric Utilities Corp [Member] | Energy efficiency charge

Regulatory Liabilities [Line Items]

Current regulatory liabilities

0

0

Noncurrent regulatory liabilities

0

0

PPL Electric Utilities Corp [Member] | Rate adjustment mechanism

Regulatory Liabilities [Line Items]

Current regulatory liabilities

0

0

PPL Electric Utilities Corp [Member] | Transmission Formula Rate [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

20

12

PPL Electric Utilities Corp [Member] | Gas supply clause [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

0

0

Louisville Gas And Electric Co [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

19

7

Noncurrent regulatory liabilities

833

833

Louisville Gas And Electric Co [Member] | Generation Supply Charge [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

0

0

Louisville Gas And Electric Co [Member] | TCJA customer refund [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

0

0

Louisville Gas And Electric Co [Member] | Act 129 Compliance Rider [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

0

0

Louisville Gas And Electric Co [Member] | Accumulated Cost Of Removal Of Utility Plant [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

296

287

Louisville Gas And Electric Co [Member] | Power Purchase Agreement OVEC [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

15

18

Louisville Gas And Electric Co [Member] | Net deferred taxes [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

469

477

Louisville Gas And Electric Co [Member] | Defined Benefit Plans [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

21

21

Louisville Gas And Electric Co [Member] | Terminated interest rate swaps [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

29

30

Louisville Gas And Electric Co [Member] | Other Regulatory Liabilities [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

3

7

Noncurrent regulatory liabilities

3

0

Louisville Gas And Electric Co [Member] | Transmission Service Charge [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

0

0

Louisville Gas And Electric Co [Member] | Energy efficiency charge

Regulatory Liabilities [Line Items]

Current regulatory liabilities

0

0

Noncurrent regulatory liabilities

0

0

Louisville Gas And Electric Co [Member] | Rate adjustment mechanism

Regulatory Liabilities [Line Items]

Current regulatory liabilities

0

0

Louisville Gas And Electric Co [Member] | Transmission Formula Rate [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

0

0

Louisville Gas And Electric Co [Member] | Gas supply clause [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

16

0

Kentucky Utilities Co [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

2

6

Noncurrent regulatory liabilities

1,032

1,029

Kentucky Utilities Co [Member] | Generation Supply Charge [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

0

0

Kentucky Utilities Co [Member] | TCJA customer refund [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

0

0

Kentucky Utilities Co [Member] | Act 129 Compliance Rider [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

0

0

Kentucky Utilities Co [Member] | Accumulated Cost Of Removal Of Utility Plant [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

396

389

Kentucky Utilities Co [Member] | Power Purchase Agreement OVEC [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

7

8

Kentucky Utilities Co [Member] | Net deferred taxes [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

535

546

Kentucky Utilities Co [Member] | Defined Benefit Plans [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

57

56

Kentucky Utilities Co [Member] | Terminated interest rate swaps [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

29

30

Kentucky Utilities Co [Member] | Other Regulatory Liabilities [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

2

6

Noncurrent regulatory liabilities

8

0

Kentucky Utilities Co [Member] | Transmission Service Charge [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

0

0

Kentucky Utilities Co [Member] | Energy efficiency charge

Regulatory Liabilities [Line Items]

Current regulatory liabilities

0

0

Noncurrent regulatory liabilities

0

0

Kentucky Utilities Co [Member] | Rate adjustment mechanism

Regulatory Liabilities [Line Items]

Current regulatory liabilities

0

0

Kentucky Utilities Co [Member] | Transmission Formula Rate [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

0

0

Kentucky Utilities Co [Member] | Gas supply clause [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

$ 0

$ 0

XML

Utility Rate Regulation - Regulatory Matters (Details) $ in Millions								1 Months Ended	3 Months Ended			6 Months Ended
	Mar. 29, 2023 USD ($)	Mar. 21, 2023 USD ($)	Feb. 03, 2023 USD ($)	Jan. 27, 2023 USD ($)	Dec. 15, 2022 MW	Oct. 16, 2018	Aug. 24, 2018	Nov. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) MW	Jun. 30, 2022 USD ($)	Jun. 30, 2015	Jun. 30, 2023 USD ($) MW	Jun. 30, 2022 USD ($)
March 2023 Kentucky Wind Storms
Regulatory Matters - Rate Case Proceedings (Numeric) [Abstract]
Amount of Regulatory Costs Not yet Approved | $									$ 75			$ 75
PPL Electric [Member]
Regulatory Matters - Rate Case Proceedings (Numeric) [Abstract]
Amortization of Revenue Reserve for ROE Challenge | $									30			74
PPL Electric [Member] | Unaffiliated Third Party Entity [Member]
Regulatory Matters - Rate Case Proceedings (Numeric) [Abstract]
Accounts Receivable, Purchase | $									$ 374	$ 273		$ 732	$ 622
LGE [Member]
Regulatory Matters - Rate Case Proceedings (Numeric) [Abstract]
CPCN NGCC Combustion Turbine Facilities Power					621
CPCN Solar Photovoltaic Facility to be constructed, Power					120
CPCN Solar Photovoltaic Facility to be acquired, Power					120
CPCN 4-Hour Energy Storage Facility to be Constructed, Power					125
CPCN New and Adjusted Energy Efficiency Programs, Overall Power Need Reduction					100
Total Capacity of Power Purchase Agreements Not Subject to KPSC Approval, Power					637
New NGCC LG&E Planned Ownership Percentage												31.00%
New Solar Units LG&E Planned Ownership Percentage												37.00%
Mill Creek 1 Unit, Generation Capacity, Power									300			300
E. W. Brown 3 Unit, Generation Capacity, Power									412			412
Mill Creek 2 Unit, Generation Capacity, Power									297			297
Ghent 2 Unit, Generation Capacity, Power									486			486
LGE [Member] | March 2023 Kentucky Wind Storms
Regulatory Matters - Rate Case Proceedings (Numeric) [Abstract]
Amount of Regulatory Costs Not yet Approved | $									$ 33			$ 33
LGE [Member] | Federal Energy Regulatory Commsion [Member] | Other Regulatory Assets [Member]
Regulatory Matters - Rate Case Proceedings (Numeric) [Abstract]
Increase (Decrease) in Regulatory Liabilities | $									$ 3
KU [Member]
Regulatory Matters - Rate Case Proceedings (Numeric) [Abstract]
CPCN NGCC Combustion Turbine Facilities Power					621
CPCN Solar Photovoltaic Facility to be constructed, Power					120
CPCN Solar Photovoltaic Facility to be acquired, Power					120
CPCN 4-Hour Energy Storage Facility to be Constructed, Power					125
CPCN New and Adjusted Energy Efficiency Programs, Overall Power Need Reduction					100
Total Capacity of Power Purchase Agreements Not Subject to KPSC Approval, Power					637
New NGCC KU Planned Ownership Percentage												69.00%
New Solar units LG&E Planned Ownership Percentage												63.00%
Mill Creek 1 Unit, Generation Capacity, Power									300			300
E. W. Brown 3 Unit, Generation Capacity, Power									412			412
Mill Creek 2 Unit, Generation Capacity, Power									297			297
Ghent 2 Unit, Generation Capacity, Power									486			486
KU [Member] | March 2023 Kentucky Wind Storms
Regulatory Matters - Rate Case Proceedings (Numeric) [Abstract]
Amount of Regulatory Costs Not yet Approved | $									$ 42			$ 42
KU [Member] | Federal Energy Regulatory Commsion [Member] | Other Regulatory Assets [Member]
Regulatory Matters - Rate Case Proceedings (Numeric) [Abstract]
Increase (Decrease) in Regulatory Liabilities | $									8
Rhode Island Energy | Rhode Island Public Uitilty Commsion
Regulatory Matters - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Approved Return on Equity, Percentage							9.275%
Supplemental Capital Investment to spend on the FY 2024 Gas ISR Plan | $				$ 187
Supplemental Capital Investment Spend amount agreed to between RIE and RIPUC | $			$ 171
Supplemental Capital Investment to spend on the FY 2024 Electric ISR Plan | $				176
2nd Supplemental Capita Investment to spend on the FY 2024 Electrical ISR Plan | $		$ 166
RIPUC Approved FY 2024 Gas ISR Plan for capital investment spend | $	$ 163
RIPUC Approved FY 2024 Electric ISR Plan for capital investment spend | $	112
Estimated net present value costs of AMF program | $								$ 188
Benefit - cost ratio yield of the AMF program								3.90%
NPV to be obtained through AMF program over 20 years | $								$ 729
AMF Program Project Life, Years								20 years
Rhode Island Energy | Rhode Island Public Uitilty Commsion | Vegetation management
Regulatory Matters - Rate Case Proceedings (Numeric) [Abstract]
Supplemental Capital Investment to spend on the FY 2024 Electric ISR Plan | $				14
2nd Supplemental Capita Investment to spend on the FY 2024 Electrical ISR Plan | $		14
RIPUC Approved FY 2024 Electric ISR Plan for capital investment spend | $	14
Rhode Island Energy | Rhode Island Public Uitilty Commsion | Other O&M
Regulatory Matters - Rate Case Proceedings (Numeric) [Abstract]
Supplemental Capital Investment to spend on the FY 2024 Electric ISR Plan | $				$ 3
2nd Supplemental Capita Investment to spend on the FY 2024 Electrical ISR Plan | $		$ 1
RIPUC Approved FY 2024 Electric ISR Plan for capital investment spend | $	$ 1
Rhode Island Energy | Rhode Island Public Uitilty Commsion | Common equity percentage related to approved rate
Regulatory Matters - Rate Case Proceedings (Numeric) [Abstract]
Percentage of common equity used on allowed ROE							51.00%
Rhode Island Energy | Federal Energy Regulatory Commsion [Member]
Regulatory Matters - Rate Case Proceedings (Numeric) [Abstract]
New ROE prosed by NETO and approved by FERC						10.41%
Initial minimum base ROE to be reset by the FERC											11.14%
Maximum Base ROE reset by FERC											11.74%
Minimum base ROE reset by FERC											10.57%
Rhode Island Energy | Federal Energy Regulatory Commsion [Member] | Maximum ROE authorized
Regulatory Matters - Rate Case Proceedings (Numeric) [Abstract]
FERC Granted ROE												11.74%
PPL Electric Utilities Corp [Member]
Regulatory Matters - Rate Case Proceedings (Numeric) [Abstract]
Amortization of Revenue Reserve for ROE Challenge | $									30			$ 74
PPL Electric Utilities Corp [Member] | Unaffiliated Third Party Entity [Member]
Regulatory Matters - Rate Case Proceedings (Numeric) [Abstract]
Accounts Receivable, Purchase | $									$ 374	$ 273		$ 732	$ 622
Louisville Gas And Electric Co [Member]
Regulatory Matters - Rate Case Proceedings (Numeric) [Abstract]
CPCN NGCC Combustion Turbine Facilities Power					621
CPCN Solar Photovoltaic Facility to be constructed, Power					120
CPCN Solar Photovoltaic Facility to be acquired, Power					120
CPCN 4-Hour Energy Storage Facility to be Constructed, Power					125
CPCN New and Adjusted Energy Efficiency Programs, Overall Power Need Reduction					100
Total Capacity of Power Purchase Agreements Not Subject to KPSC Approval, Power					637
New NGCC LG&E Planned Ownership Percentage												31.00%
New Solar Units LG&E Planned Ownership Percentage												37.00%
Mill Creek 1 Unit, Generation Capacity, Power									300			300
E. W. Brown 3 Unit, Generation Capacity, Power									412			412
Mill Creek 2 Unit, Generation Capacity, Power									297			297
Ghent 2 Unit, Generation Capacity, Power									486			486
Louisville Gas And Electric Co [Member] | March 2023 Kentucky Wind Storms
Regulatory Matters - Rate Case Proceedings (Numeric) [Abstract]
Amount of Regulatory Costs Not yet Approved | $									$ 33			$ 33
Louisville Gas And Electric Co [Member] | Federal Energy Regulatory Commsion [Member] | Other Regulatory Assets [Member]
Regulatory Matters - Rate Case Proceedings (Numeric) [Abstract]
Increase (Decrease) in Regulatory Liabilities | $									$ 3
Kentucky Utilities Co [Member]
Regulatory Matters - Rate Case Proceedings (Numeric) [Abstract]
CPCN NGCC Combustion Turbine Facilities Power					621
CPCN Solar Photovoltaic Facility to be constructed, Power					120
CPCN Solar Photovoltaic Facility to be acquired, Power					120
CPCN 4-Hour Energy Storage Facility to be Constructed, Power					125
CPCN New and Adjusted Energy Efficiency Programs, Overall Power Need Reduction					100
Total Capacity of Power Purchase Agreements Not Subject to KPSC Approval, Power					637
New NGCC KU Planned Ownership Percentage												69.00%
New Solar units LG&E Planned Ownership Percentage												63.00%
Mill Creek 1 Unit, Generation Capacity, Power									300			300
E. W. Brown 3 Unit, Generation Capacity, Power									412			412
Mill Creek 2 Unit, Generation Capacity, Power									297			297
Ghent 2 Unit, Generation Capacity, Power									486			486
Kentucky Utilities Co [Member] | March 2023 Kentucky Wind Storms
Regulatory Matters - Rate Case Proceedings (Numeric) [Abstract]
Amount of Regulatory Costs Not yet Approved | $									$ 42			$ 42
Kentucky Utilities Co [Member] | Federal Energy Regulatory Commsion [Member] | Other Regulatory Assets [Member]
Regulatory Matters - Rate Case Proceedings (Numeric) [Abstract]
Increase (Decrease) in Regulatory Liabilities | $									$ 8

XML

Utility Rate Regulation - Other (Details) - Unaffiliated Third Party Entity [Member] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
PPL Electric [Member]
Purchases Of Accounts Receivable [Line Items]
Accounts Receivable, Purchase	$ 374	$ 273	$ 732	$ 622
PPL Electric Utilities Corp [Member]
Purchases Of Accounts Receivable [Line Items]
Accounts Receivable, Purchase	$ 374	$ 273	$ 732	$ 622

XML

Financing Activities - Credit Arrangements (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
PPL Capital Funding [Member]
Line of Credit Facility [Line Items]
Capacity	$ 1,450
Borrowed	0	$ 0
Letters of Credit and Commercial Paper Issued (d)	58	619
Unused Capacity	1,392
PPL Capital Funding [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity	1,250
Borrowed	0	0
Letters of Credit and Commercial Paper Issued (d)	0	561
Unused Capacity	1,250
Line of Credit Facility, Borrowing Capacity Sublimit	1,000
PPL Capital Funding [Member] | Bilateral Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity	100
Borrowed	0	0
Letters of Credit and Commercial Paper Issued (d)	58	58
Unused Capacity	42
PPL Capital Funding [Member] | Bilateral Credit Facility [Member] | Rhode Island Energy
Line of Credit Facility [Line Items]
Letters of Credit and Commercial Paper Issued (d)	45
PPL Capital Funding [Member] | Bilateral Credit Facility #2
Line of Credit Facility [Line Items]
Capacity	100
Borrowed	0	0
Letters of Credit and Commercial Paper Issued (d)	0	0
Unused Capacity	100
PPL Electric [Member]
Line of Credit Facility [Line Items]
Capacity	650
Borrowed	0	250
Letters of Credit and Commercial Paper Issued (d)	131	146
Unused Capacity	519
PPL Electric [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity	650
Borrowed	0	0
Letters of Credit and Commercial Paper Issued (d)	131	146
Unused Capacity	519
PPL Electric [Member] | Term Loan Facility [Member]
Line of Credit Facility [Line Items]
Capacity	0
Borrowed	0	250
Letters of Credit and Commercial Paper Issued (d)	0	0
Unused Capacity	0
LGE [Member]
Line of Credit Facility [Line Items]
Capacity	500
Borrowed	0	300
Letters of Credit and Commercial Paper Issued (d)	21	180
Unused Capacity	479
LGE [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity	500
Borrowed	0	0
Letters of Credit and Commercial Paper Issued (d)	21	180
Unused Capacity	479
LGE [Member] | Term Loan Facility [Member]
Line of Credit Facility [Line Items]
Capacity	0
Borrowed	0	300
Letters of Credit and Commercial Paper Issued (d)	0	0
Unused Capacity	0
KU [Member]
Line of Credit Facility [Line Items]
Capacity	400
Borrowed	0	300
Letters of Credit and Commercial Paper Issued (d)	92	101
Unused Capacity	308
KU [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity	400
Borrowed	0	0
Letters of Credit and Commercial Paper Issued (d)	92	101
Unused Capacity	308
KU [Member] | Term Loan Facility [Member]
Line of Credit Facility [Line Items]
Capacity	0
Borrowed	0	300
Letters of Credit and Commercial Paper Issued (d)	0	0
Unused Capacity	0
Rhode Island Energy | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Borrowing Capacity Sublimit	250
PPL Electric Utilities Corp [Member]
Line of Credit Facility [Line Items]
Capacity	650
Borrowed	0	250
Letters of Credit and Commercial Paper Issued (d)	131	146
Unused Capacity	519
PPL Electric Utilities Corp [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity	650
Borrowed	0	0
Letters of Credit and Commercial Paper Issued (d)	131	146
Unused Capacity	519
PPL Electric Utilities Corp [Member] | Term Loan Facility [Member]
Line of Credit Facility [Line Items]
Capacity	0
Borrowed	0	250
Letters of Credit and Commercial Paper Issued (d)	0	0
Unused Capacity	0
Louisville Gas And Electric Co [Member]
Line of Credit Facility [Line Items]
Capacity	500
Borrowed	0	300
Letters of Credit and Commercial Paper Issued (d)	21	180
Unused Capacity	479
Louisville Gas And Electric Co [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity	500
Borrowed	0	0
Letters of Credit and Commercial Paper Issued (d)	21	180
Unused Capacity	479
Louisville Gas And Electric Co [Member] | Term Loan Facility [Member]
Line of Credit Facility [Line Items]
Capacity	0
Borrowed	0	300
Letters of Credit and Commercial Paper Issued (d)	0	0
Unused Capacity	0
Kentucky Utilities Co [Member]
Line of Credit Facility [Line Items]
Capacity	400
Borrowed	0	300
Letters of Credit and Commercial Paper Issued (d)	92	101
Unused Capacity	308
Kentucky Utilities Co [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity	400
Borrowed	0	0
Letters of Credit and Commercial Paper Issued (d)	92	101
Unused Capacity	308
Kentucky Utilities Co [Member] | Term Loan Facility [Member]
Line of Credit Facility [Line Items]
Capacity	0
Borrowed	0	300
Letters of Credit and Commercial Paper Issued (d)	0	$ 0
Unused Capacity	$ 0

XML

Financing Activities - Short-term Debt (Details) - Commercial Paper [Member] - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
Short-term Debt [Line Items]
Capacity	$ 3,300
Commercial Paper Issuances (c)	243	$ 987
Unused Capacity	3,057
PPL Capital Funding [Member]
Short-term Debt [Line Items]
Weighted - Average Interest Rate		4.84%
Capacity	1,350
Commercial Paper Issuances (c)	0	$ 561
Unused Capacity	1,350
PPL Electric [Member]
Short-term Debt [Line Items]
Weighted - Average Interest Rate		4.74%	5.31%
Capacity	650
Commercial Paper Issuances (c)	130	$ 145
Unused Capacity	520
LGE [Member]
Short-term Debt [Line Items]
Weighted - Average Interest Rate		4.94%	5.30%
Capacity	500
Commercial Paper Issuances (c)	21	$ 180
Unused Capacity	479
KU [Member]
Short-term Debt [Line Items]
Weighted - Average Interest Rate		4.90%	5.34%
Capacity	400
Commercial Paper Issuances (c)	92	$ 101
Unused Capacity	308
Rhode Island Energy
Short-term Debt [Line Items]
Capacity	400
Commercial Paper Issuances (c)	0	$ 0
Unused Capacity	400
PPL Electric Utilities Corp [Member]
Short-term Debt [Line Items]
Weighted - Average Interest Rate		4.74%	5.31%
Capacity	650
Commercial Paper Issuances (c)	130	$ 145
Unused Capacity	520
Louisville Gas And Electric Co [Member]
Short-term Debt [Line Items]
Weighted - Average Interest Rate		4.94%	5.30%
Capacity	500
Commercial Paper Issuances (c)	21	$ 180
Unused Capacity	479
Kentucky Utilities Co [Member]
Short-term Debt [Line Items]
Weighted - Average Interest Rate		4.90%	5.34%
Capacity	400
Commercial Paper Issuances (c)	92	$ 101
Unused Capacity	$ 308

XML

Financing Activities - Long-term Debt (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended
	Mar. 31, 2023	Feb. 28, 2023	Jun. 30, 2023	Dec. 31, 2022
Long-term Debt (Numeric) [Abstract]
Long-term debt due within one year			$ 91	$ 354
Long-term Debt, Excluding Current Maturities			14,481	12,889
Exchangeable Senior Unsecured Notes | Exchangeable Senior Notes Due 2028
Long-term Debt (Numeric) [Abstract]
Principal amount		$ 1,000
Stated interest rate		2.875%
Exchangeable Senior Notes Initial Exchange Rate, Shares per $1000 Principal Amount		29.3432
Exchangeable Senior Notes Initial Exchange Rate, Dollars per Share		$ 34.08
Proceeds from Convertible Debt		$ 980
PPL Electric [Member]
Long-term Debt (Numeric) [Abstract]
Capacity			650
Borrowed			0	250
PPL Electric [Member] | Term Loan Facility [Member]
Long-term Debt (Numeric) [Abstract]
Capacity			0
Borrowed			0	250
PPL Electric [Member] | Term Loan Facility [Member] | Repayment
Long-term Debt (Numeric) [Abstract]
Capacity	$ 250
PPL Electric [Member] | First Mortgage Bond [Member] | First Mortgage Bonds, Floating Rate Series due 2023 [Member] | Bond Redemption [Member]
Long-term Debt (Numeric) [Abstract]
Principal amount	250
PPL Electric [Member] | First Mortgage Bond [Member] | First Mortgage Bonds, Floating Rate Series due 2024 | Bond Redemption [Member]
Long-term Debt (Numeric) [Abstract]
Principal amount	650
PPL Electric [Member] | First Mortgage Bond [Member] | First Mortgage Bonds Due 2033
Long-term Debt (Numeric) [Abstract]
Principal amount	$ 600
Stated interest rate	5.00%
PPL Electric [Member] | First Mortgage Bond [Member] | First Mortgage Bonds Due 2053
Long-term Debt (Numeric) [Abstract]
Principal amount	$ 750
Stated interest rate	5.25%
PPL Electric [Member] | First Mortgage Bond [Member] | First Mortgage Bonds Due 2033 and 2053
Long-term Debt (Numeric) [Abstract]
Proceeds from Issuance of First Mortgage Bond	$ 1,320
PPL Capital Funding [Member]
Long-term Debt (Numeric) [Abstract]
Capacity			1,450
Borrowed			0	0
LGE [Member]
Long-term Debt (Numeric) [Abstract]
Capacity			500
Borrowed			0	300
LGE [Member] | Term Loan Facility [Member]
Long-term Debt (Numeric) [Abstract]
Capacity			0
Borrowed			0	300
LGE [Member] | Term Loan Facility [Member] | Repayment
Long-term Debt (Numeric) [Abstract]
Capacity	300
LGE [Member] | First Mortgage Bond [Member] | First Mortgage Bonds Due 2033
Long-term Debt (Numeric) [Abstract]
Principal amount	$ 400
Stated interest rate	5.45%
Proceeds from Issuance of First Mortgage Bond	$ 396
KU [Member]
Long-term Debt (Numeric) [Abstract]
Capacity			400
Borrowed			0	300
KU [Member] | Term Loan Facility [Member]
Long-term Debt (Numeric) [Abstract]
Capacity			0
Borrowed			0	300
KU [Member] | Term Loan Facility [Member] | Repayment
Long-term Debt (Numeric) [Abstract]
Capacity	300
KU [Member] | First Mortgage Bond [Member] | First Mortgage Bonds Due 2033
Long-term Debt (Numeric) [Abstract]
Principal amount	$ 400
Stated interest rate	5.45%
Proceeds from Issuance of First Mortgage Bond	$ 396
PPL Electric Utilities Corp [Member]
Long-term Debt (Numeric) [Abstract]
Capacity			650
Borrowed			0	250
Long-term debt due within one year			90	340
Long-term Debt, Excluding Current Maturities			4,565	4,146
PPL Electric Utilities Corp [Member] | Term Loan Facility [Member]
Long-term Debt (Numeric) [Abstract]
Capacity			0
Borrowed			0	250
PPL Electric Utilities Corp [Member] | Term Loan Facility [Member] | Repayment
Long-term Debt (Numeric) [Abstract]
Capacity	250
PPL Electric Utilities Corp [Member] | First Mortgage Bond [Member] | First Mortgage Bonds, Floating Rate Series due 2023 [Member] | Bond Redemption [Member]
Long-term Debt (Numeric) [Abstract]
Principal amount	250
PPL Electric Utilities Corp [Member] | First Mortgage Bond [Member] | First Mortgage Bonds, Floating Rate Series due 2024 | Bond Redemption [Member]
Long-term Debt (Numeric) [Abstract]
Principal amount	650
PPL Electric Utilities Corp [Member] | First Mortgage Bond [Member] | First Mortgage Bonds Due 2033
Long-term Debt (Numeric) [Abstract]
Principal amount	$ 600
Stated interest rate	5.00%
PPL Electric Utilities Corp [Member] | First Mortgage Bond [Member] | First Mortgage Bonds Due 2053
Long-term Debt (Numeric) [Abstract]
Principal amount	$ 750
Stated interest rate	5.25%
PPL Electric Utilities Corp [Member] | First Mortgage Bond [Member] | First Mortgage Bonds Due 2033 and 2053
Long-term Debt (Numeric) [Abstract]
Proceeds from Issuance of First Mortgage Bond	$ 1,320
Louisville Gas And Electric Co [Member]
Long-term Debt (Numeric) [Abstract]
Capacity			500
Borrowed			0	300
Long-term Debt, Excluding Current Maturities			2,404	2,307
Louisville Gas And Electric Co [Member] | Term Loan Facility [Member]
Long-term Debt (Numeric) [Abstract]
Capacity			0
Borrowed			0	300
Louisville Gas And Electric Co [Member] | Term Loan Facility [Member] | Repayment
Long-term Debt (Numeric) [Abstract]
Capacity	300
Louisville Gas And Electric Co [Member] | First Mortgage Bond [Member] | First Mortgage Bonds Due 2033
Long-term Debt (Numeric) [Abstract]
Principal amount	$ 400
Stated interest rate	5.45%
Proceeds from Issuance of First Mortgage Bond	$ 396
Kentucky Utilities Co [Member]
Long-term Debt (Numeric) [Abstract]
Capacity			400
Borrowed			0	300
Long-term debt due within one year			0	13
Long-term Debt, Excluding Current Maturities			3,003	2,907
Kentucky Utilities Co [Member] | Term Loan Facility [Member]
Long-term Debt (Numeric) [Abstract]
Capacity			0
Borrowed			$ 0	$ 300
Kentucky Utilities Co [Member] | Term Loan Facility [Member] | Repayment
Long-term Debt (Numeric) [Abstract]
Capacity	300
Kentucky Utilities Co [Member] | First Mortgage Bond [Member] | First Mortgage Bonds Due 2033
Long-term Debt (Numeric) [Abstract]
Principal amount	$ 400
Stated interest rate	5.45%
Proceeds from Issuance of First Mortgage Bond	$ 396

XML

Financing Activities - Equity Securities (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended		3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 01, 2023
Securities Financing Transaction [Line Items]
Annualized current quarterly common stock dividend (in dollars per share)		$ 96
Preferred Stock, Par or Stated Value Per Share	$ 50		$ 50
Payments for Repurchase of Redeemable Noncontrolling Interest	$ 3
Preferred Stock, Shares Outstanding				49,089
Preferred Stock Redeemed, Prorated Dividend, Per Share	$ 0.1875
Preferred Stock Redemption, Premium, Per Share	$ 5
Treasury Stock, Common
Securities Financing Transaction [Line Items]
Treasury stock acquired			19,000

XML

Financing Activities - Distributions (Details) - $ / shares	1 Months Ended	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Distributions (Numeric) [Abstract]
Current quarterly common stock dividend (in dollars per share)	$ 0.240	$ 0.240	$ 0.225	$ 0.480	$ 0.425
Annualized current quarterly common stock dividend (in dollars per share)	$ 96

XML

Acquisitions, Development and Divestitures - Discontinued Operations (Details) - Disposal Group, Held-for-Sale, Not Discontinued Operations [Member] - Safari Holdings LLC, Consolidated $ in Millions	3 Months Ended
	Jun. 30, 2023 USD ($)
Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract]
Loss on Sale	$ 6
gain (loss) on disposition of business, net of tax	4
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Gain (Loss) on Sale	6
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract]
Gain (Loss) on Sale	$ 6

XML

Acquisitions, Development and Divestitures - Development (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Business Acquisition [Line Items]
Goodwill, Acquired During Period				$ 1,585
Transition Service Agreement Cost	$ 63		$ 120
Goodwill	2,247		2,247		$ 2,248
Operating Revenues from external customers	1,823	$ 1,696	4,238	3,478
Net income (loss)	112	119	397	392
Indemnification for Safari sale/leaseback			25
Narragansett Electric
Business Acquisition [Line Items]
Total cash consideration				3,800
Rhode Island Regulated
Business Acquisition [Line Items]
Goodwill	725		725
Operating Revenues from external customers	377	128	942	128
Net income (loss)	10	(29)	64	(29)
Corporate and Other [Member]
Business Acquisition [Line Items]
Goodwill, Acquired During Period				860
Goodwill, Purchase Accounting Adjustments	1
Operating Revenues from external customers	1	9	0	12
Net income (loss)	(99)	$ (88)	(172)	$ (147)
Rhode Island Energy | Rhode Island Energy TSA
Business Acquisition [Line Items]
Other Nonrecurring (Income) Expense	70		124
Rhode Island Energy | Accrual for TSA Markup
Business Acquisition [Line Items]
Other Nonrecurring (Income) Expense	$ 2		$ 4

XML

Defined Benefits (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Net Periodic Defined Benefit Costs Allocated to Subsidiary by Sponsor (Numeric) [Abstract]
Defined benefit plans - funding			$ 7	$ 7
Pension Plan [Member] | U.S.
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Service cost	$ 8	$ 13	17	25
Interest cost	48	30	94	62
Expected return on plan assets	(77)	(63)	(155)	(127)
Amortization of: [Abstract]
Prior service cost	1	2	3	4
Actuarial loss	1	17	1	29
Net Periodic Defined Benefit Costs (Credits) Prior To Settlements	(19)	(1)	(40)	(7)
Settlements	0	12	0	12
Net periodic defined benefit costs (credits)	(19)	11	(40)	5
Other Postretirement Benefits Plan [Member]
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Service cost	1	2	3	3
Interest cost	8	4	15	8
Expected return on plan assets	(7)	(6)	(15)	(12)
Amortization of: [Abstract]
Prior service cost	1	1	1	1
Actuarial loss	(2)	(2)	(3)	(2)
Net periodic defined benefit costs (credits)	$ 1	$ (1)	1	(2)
PPL Electric Utilities Corp [Member]
Net Periodic Defined Benefit Costs Allocated to Subsidiary by Sponsor (Numeric) [Abstract]
Defined benefit plans - funding			1	0
Louisville Gas And Electric Co [Member]
Net Periodic Defined Benefit Costs Allocated to Subsidiary by Sponsor (Numeric) [Abstract]
Defined benefit plans - funding			0	2
Kentucky Utilities Co [Member]
Net Periodic Defined Benefit Costs Allocated to Subsidiary by Sponsor (Numeric) [Abstract]
Defined benefit plans - funding			$ 0	$ 1

XML

Commitments and Contingencies - Legal Matters and Regulatory Issues (Details) - USD ($) $ in Millions		6 Months Ended
	Nov. 18, 2014	Jun. 30, 2023	Dec. 31, 2022	Jun. 01, 2015
Claim By Former Affiliate [Abstract]
Percent of ownership of Talen Energy by Riverstone				35.00%
Period Over Which Distribution Adjustment Charge-related Costs Are amortized		10 years
Proceeds from Divestiture of Businesses and Interests in Affiliates	$ 900
Electric Rates
Claim By Former Affiliate [Abstract]
Environmental Costs Recognized, Recovery Credited to Expense		$ 3
Gas Rates
Claim By Former Affiliate [Abstract]
Environmental Costs Recognized, Recovery Credited to Expense		1
RIE Environmental Remediation
Claim By Former Affiliate [Abstract]
Accrual for Environmental Loss Contingencies, Gross		100	$ 100
PPL Electric [Member] | PPL Electric Additional Sites [Member]
Claim By Former Affiliate [Abstract]
Accrual for Environmental Loss Contingencies, Gross		11	11
PPL Electric Utilities Corp [Member] | PPL Electric Additional Sites [Member]
Claim By Former Affiliate [Abstract]
Accrual for Environmental Loss Contingencies, Gross		$ 11	$ 11

XML

Commitments and Contingencies - Environmental Matters and Other (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Other - Labor Union Agreements (Numeric) [Abstract]
Amortization of excess deferred income taxes	$ (8)	$ (22)	$ (20)	$ (40)
Period RIE Environmental Remediation Costs To Be Incurred Over	30 years		30 years
RIE Environmental Remediation
Other - Labor Union Agreements (Numeric) [Abstract]
Accrual for Environmental Loss Contingencies, Gross	$ 100		$ 100		$ 100
PPL Electric [Member] | PPL Electric Additional Sites [Member]
Other - Labor Union Agreements (Numeric) [Abstract]
Accrual for Environmental Loss Contingencies, Gross	11		11		11
PPL Electric Utilities Corp [Member]
Other - Labor Union Agreements (Numeric) [Abstract]
Amortization of excess deferred income taxes	(2)	(2)	(4)	(5)
PPL Electric Utilities Corp [Member] | PPL Electric Additional Sites [Member]
Other - Labor Union Agreements (Numeric) [Abstract]
Accrual for Environmental Loss Contingencies, Gross	11		11		$ 11
Louisville Gas And Electric Co [Member]
Other - Labor Union Agreements (Numeric) [Abstract]
Amortization of excess deferred income taxes	(3)	(7)	(6)	(14)
Kentucky Utilities Co [Member]
Other - Labor Union Agreements (Numeric) [Abstract]
Amortization of excess deferred income taxes	$ (4)	$ (6)	$ (8)	$ (12)

XML

Commitments and Contingencies - Guarantees and Other Assurances (Details) - 6 months ended Jun. 30, 2023 £ in Millions, $ in Millions	USD ($)	GBP (£)	USD ($)
Other Guarantee (Numeric) [Abstract]
Maximum aggregate coverage bodily injury and property damage			$ 225
Indemnification Cap, Surrenders of Tax Losses | £		£ 50
Indemnification for Safari sale/leaseback	$ 25
Financial Guarantee [Member] | LGE And KU Guarantee Of Shortfall Related To OVEC [Member] | LGE [Member]
Guarantor Obligations [Line Items]
Recorded liability for all guarantees			62
Financial Guarantee [Member] | LGE And KU Guarantee Of Shortfall Related To OVEC [Member] | KU [Member]
Guarantor Obligations [Line Items]
Recorded liability for all guarantees			27
PPL Guarantee [Member] | Indemnification Guarantee [Member] | Indemnifications related to certain tax liabilities related to the sale of the U.K. utility business [Domain]
Other Guarantee (Numeric) [Abstract]
Maximum exposure | £		£ 50
PPL Guarantee [Member] | Indemnification Guarantee [Member] | Guarantee of payment obligations under certain sale/leaseback financing transactions related to the sale of Safari Holdings
Other Guarantee (Numeric) [Abstract]
Maximum exposure			137
PPL Guarantee [Member] | Indemnification Guarantee [Member] | Guarantee of payment obligations under certain power purchase agreements related to the sale of Safari Holdings
Other Guarantee (Numeric) [Abstract]
Maximum exposure			55
PPL Guarantee [Member] | Indemnification Guarantee [Member] | Indemnifications for losses suffered related to items not covered by Aspen Power's representation and warranty insurance associated with the sale of Safari Holdings
Other Guarantee (Numeric) [Abstract]
Maximum exposure			140
LKE Guarantee [Member] | Financial Guarantee [Member] | LGE And KU Guarantee Of Shortfall Related To OVEC [Member]
Guarantor Obligations [Line Items]
Recorded liability for all guarantees			89
Maximum exposure is not estimable	The maximum exposure and the expiration date of these potential obligations are not presently determinable.
Louisville Gas And Electric Co [Member] | Financial Guarantee [Member] | LGE And KU Guarantee Of Shortfall Related To OVEC [Member]
Guarantor Obligations [Line Items]
Recorded liability for all guarantees			62
Maximum exposure is not estimable	The maximum exposure and the expiration date of these potential obligations are not presently determinable
Kentucky Utilities Co [Member] | Financial Guarantee [Member] | LGE And KU Guarantee Of Shortfall Related To OVEC [Member]
Guarantor Obligations [Line Items]
Recorded liability for all guarantees			$ 27
Maximum exposure is not estimable	The maximum exposure and the expiration date of these potential obligations are not presently determinable

XML

Commitments and Contingencies - Energy Purchase Commitments (Details - MW	Mar. 17, 2023	Jul. 01, 2022
Legal Matters [Line Items]
ACES Offshore wind proposal	884
Minimum [Member]
Legal Matters [Line Items]
ACES Renewable Energy Contracting Capacity Requirement		600
Maximum [Member]
Legal Matters [Line Items]
ACES Renewable Energy Contracting Capacity Requirement		1,000

XML

Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
PPL Electric Utilities Corp [Member]
Intercompany Borrowings (Numeric) [Abstract]
Notes Receivable from affiliates	$ 0		$ 0		$ 0
Financing Receivable, after Allowance for Credit Loss, Related Party, Name [Extensible Enumeration]	CEP Reserves, Inc		CEP Reserves, Inc		CEP Reserves, Inc
Financing Receivable, after Allowance for Credit Loss, Related and Nonrelated Party Status [Extensible Enumeration]	Related Party		Related Party		Related Party
PPL Electric Utilities Corp [Member] | PPL Services [Member]
Support Costs (Details) [Abstract]
Related Party Transaction, Amounts of Transaction	$ 55	$ 60	$ 114	$ 121
PPL Electric Utilities Corp [Member] | CEP Reserves, Inc
Intercompany Borrowings (Numeric) [Abstract]
Intercompany note with affiliate maximum borrowing capacity	500		500
PPL Electric Utilities Corp [Member] | Accounts receivable from affiliates [Member] | PPL Services [Member]
Intercompany Borrowings (Numeric) [Abstract]
VEBA Funds Receivable	0		0
Louisville Gas And Electric Co [Member]
Intercompany Borrowings (Numeric) [Abstract]
Notes Payable to affiliates					$ 0
Notes Payable, Related and Nonrelated Party Status [Extensible Enumeration]					Related Party
Notes Receivable from affiliates	$ 8		$ 8		$ 0
Financing Receivable, after Allowance for Credit Loss, Related and Nonrelated Party Status [Extensible Enumeration]	Related Party		Related Party		Related Party
Louisville Gas And Electric Co [Member] | PPL Services [Member]
Support Costs (Details) [Abstract]
Related Party Transaction, Amounts of Transaction	$ 12	0	$ 20	0
Louisville Gas And Electric Co [Member] | Parent And Affiliate [Member]
Intercompany Borrowings (Numeric) [Abstract]
Intercompany Money Pool Agreement Unused Borrowing Capacity	729		729
Louisville Gas And Electric Co [Member] | LKS [Member]
Support Costs (Details) [Abstract]
Related Party Transaction, Amounts of Transaction	28	41	60	80
Kentucky Utilities Co [Member]
Intercompany Borrowings (Numeric) [Abstract]
Notes Payable to affiliates	$ 8		$ 8		$ 0
Notes Payable, Related and Nonrelated Party Status [Extensible Enumeration]	Related Party		Related Party		Related Party
Kentucky Utilities Co [Member] | PPL Services [Member]
Support Costs (Details) [Abstract]
Related Party Transaction, Amounts of Transaction	$ 13	0	$ 23	0
Kentucky Utilities Co [Member] | Parent And Affiliate [Member]
Intercompany Borrowings (Numeric) [Abstract]
Intercompany Money Pool Agreement Unused Borrowing Capacity	550		550
Kentucky Utilities Co [Member] | LKS [Member]
Support Costs (Details) [Abstract]
Related Party Transaction, Amounts of Transaction	$ 34	$ 42	$ 75	$ 86

XML

Other Income (Expense) - net (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Other Income
Defined benefit plans - non-service credits	$ (1)	$ 9	$ 16	$ 20
AFUDC - equity component	8	6	14	10
Miscellaneous	(10)	13	(10)	0
Other Expense
Charitable Contributions	0	(1)	(2)	(2)
Other Income (Expense) - net	5	26	35	26
Interest Income (Expense), Nonoperating, Net	8	(1)	17	(2)
PPL Electric Utilities Corp [Member]
Other Income
Defined benefit plans - non-service credits	5	4	10	8
AFUDC - equity component	4	4	8	8
Miscellaneous	(1)	(1)	0	(2)
Other Expense
Charitable Contributions	0	0	(2)	(2)
Other Income (Expense) - net	9	7	21	13
Interest Income (Expense), Nonoperating, Net	$ 1	$ 0	$ 5	$ 1

XML

Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis Table (Details) - Recurring Fair Value Measurements [Member] - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Assets
Cash and cash equivalents	$ 326	$ 356
Restricted cash and cash equivalents	1	1
Total Cash, Cash Equivalents and Restricted Cash	327	357
Special Use Funds [Abstract]
Money market fund	1	1
Commingled debt fund measured at NAV	11	13
Commingled equity fund measured at NAV	10	11
Total special use funds	22	25
Gas Contracts	1	25
Price risk management assets:
Total Assets	350	407
Price risk management liabilities:
Interest rate swaps	7	7
Gas Contracts	(23)	66
Total price risk management liabilities	(16)	73
Level 1 [Member]
Assets
Cash and cash equivalents	326	356
Restricted cash and cash equivalents	1	1
Total Cash, Cash Equivalents and Restricted Cash	327	357
Special Use Funds [Abstract]
Money market fund	1	1
Total special use funds	1	1
Gas Contracts	0	0
Price risk management assets:
Total Assets	328	358
Price risk management liabilities:
Interest rate swaps	0	0
Gas Contracts	0	0
Total price risk management liabilities	0	0
Level 2 [Member]
Assets
Cash and cash equivalents	0	0
Restricted cash and cash equivalents	0	0
Total Cash, Cash Equivalents and Restricted Cash	0	0
Special Use Funds [Abstract]
Money market fund	0	0
Total special use funds	0	0
Gas Contracts	1	25
Price risk management assets:
Total Assets	1	25
Price risk management liabilities:
Interest rate swaps	7	7
Gas Contracts	(23)	10
Total price risk management liabilities	(16)	17
Level 3 [Member]
Assets
Cash and cash equivalents	0	0
Restricted cash and cash equivalents	0	0
Total Cash, Cash Equivalents and Restricted Cash	0	0
Special Use Funds [Abstract]
Money market fund	0	0
Total special use funds	0	0
Gas Contracts	0	0
Price risk management assets:
Total Assets	0	0
Price risk management liabilities:
Interest rate swaps	0	0
Gas Contracts	0	56
Gas Contracts, Liability, Settlements	(56)
Total price risk management liabilities	0	56
PPL Electric Utilities Corp [Member]
Assets
Cash and cash equivalents	26	25
Price risk management assets:
Total Assets	26	25
PPL Electric Utilities Corp [Member] | Level 1 [Member]
Assets
Cash and cash equivalents	26	25
Price risk management assets:
Total Assets	26	25
PPL Electric Utilities Corp [Member] | Level 2 [Member]
Assets
Cash and cash equivalents	0	0
Price risk management assets:
Total Assets	0	0
PPL Electric Utilities Corp [Member] | Level 3 [Member]
Assets
Cash and cash equivalents	0	0
Price risk management assets:
Total Assets	0	0
Louisville Gas And Electric Co [Member]
Assets
Cash and cash equivalents	7	93
Price risk management assets:
Total Assets	7	93
Price risk management liabilities:
Interest rate swaps	7	7
Total price risk management liabilities	7	7
Louisville Gas And Electric Co [Member] | Level 1 [Member]
Assets
Cash and cash equivalents	7	93
Price risk management assets:
Total Assets	7	93
Price risk management liabilities:
Interest rate swaps	0	0
Total price risk management liabilities	0	0
Louisville Gas And Electric Co [Member] | Level 2 [Member]
Assets
Cash and cash equivalents	0	0
Price risk management assets:
Total Assets	0	0
Price risk management liabilities:
Interest rate swaps	7	7
Total price risk management liabilities	7	7
Louisville Gas And Electric Co [Member] | Level 3 [Member]
Assets
Cash and cash equivalents	0	0
Price risk management assets:
Total Assets	0	0
Price risk management liabilities:
Interest rate swaps	0	0
Total price risk management liabilities	0	0
Kentucky Utilities Co [Member]
Assets
Cash and cash equivalents	9	21
Price risk management assets:
Total Assets	9	21
Kentucky Utilities Co [Member] | Level 1 [Member]
Assets
Cash and cash equivalents	9	21
Price risk management assets:
Total Assets	9	21
Kentucky Utilities Co [Member] | Level 2 [Member]
Assets
Cash and cash equivalents	0	0
Price risk management assets:
Total Assets	0	0
Kentucky Utilities Co [Member] | Level 3 [Member]
Assets
Cash and cash equivalents	0	0
Price risk management assets:
Total Assets	$ 0	$ 0

XML

Fair Value Measurements - Financial Instruments Not Recorded at Fair Value (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Carrying Amount [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Debt Instrument, Fair Value Disclosure	$ 14,572	$ 13,243
Fair Value [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Debt Instrument, Fair Value Disclosure	13,613	12,239
PPL Electric Utilities Corp [Member] | Carrying Amount [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Debt Instrument, Fair Value Disclosure	4,655	4,486
PPL Electric Utilities Corp [Member] | Fair Value [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Debt Instrument, Fair Value Disclosure	4,432	4,259
Louisville Gas And Electric Co [Member] | Carrying Amount [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Debt Instrument, Fair Value Disclosure	2,404	2,307
Louisville Gas And Electric Co [Member] | Fair Value [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Debt Instrument, Fair Value Disclosure	2,236	2,128
Kentucky Utilities Co [Member] | Carrying Amount [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Debt Instrument, Fair Value Disclosure	3,003	2,920
Kentucky Utilities Co [Member] | Fair Value [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Debt Instrument, Fair Value Disclosure	$ 2,722	$ 2,616

XML

Derivative Instruments and Hedging Activities - Intro (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Master Netting Arrangements (Numeric) [Line Items]
Cash collateral obligation under master netting arrangements	$ 0	$ 0
Cash collateral posted under master netting arrangements	0	0
Louisville Gas And Electric Co [Member]
Master Netting Arrangements (Numeric) [Line Items]
Cash collateral obligation under master netting arrangements	0	0
Cash collateral posted under master netting arrangements	0	0
Kentucky Utilities Co [Member]
Master Netting Arrangements (Numeric) [Line Items]
Cash collateral obligation under master netting arrangements	0	0
Cash collateral posted under master netting arrangements	$ 0	$ 0

XML

Derivative Instruments and Hedging Activities - Risk Disclosures (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) Bcf	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Interest Rate Risk - Cash Flow Hedges (Numeric) [Abstract]
Gain (Loss) on Discontinuation of Interest Rate Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net	$ 0	$ 0	$ 0	$ 0
Foreign Currency Risk - Economic Activity (Numeric) [Abstract]
Cash collateral obligation under master netting arrangements	0		0		$ 0
Cash collateral pledged - eligible for offset	0		0		0
Cash collateral pledged - eligible for offset	0		0		0
Not Designated As Hedging Instruments [Member]
Foreign Currency Risk - Economic Activity (Numeric) [Abstract]
Asset value	1		1		25
Liability value	30		30		73
Interest Rate Swaps [Member] | Price risk management assets, current [Member] | Not Designated As Hedging Instruments [Member]
Foreign Currency Risk - Economic Activity (Numeric) [Abstract]
Asset value	0		0		0
Interest Rate Swaps [Member] | Other current liabilities [Member] | Not Designated As Hedging Instruments [Member]
Foreign Currency Risk - Economic Activity (Numeric) [Abstract]
Liability value	1		1		1
Interest Rate Swaps [Member] | Price risk management assets, noncurrent [Member] | Not Designated As Hedging Instruments [Member]
Foreign Currency Risk - Economic Activity (Numeric) [Abstract]
Asset value	0		0		0
Interest Rate Swaps [Member] | Other deferred credits and noncurrent liabilities [Member] | Not Designated As Hedging Instruments [Member]
Foreign Currency Risk - Economic Activity (Numeric) [Abstract]
Liability value	6		6		6
LGE [Member] | Economic Hedges [Member] | Interest Rate Swaps [Member]
Interest Rate Risk - Cash Flow Hedges (Numeric) [Abstract]
Derivative, Notional Amount	$ 64		64
Rhode Island Energy | Economic Hedges [Member] | Gas Contract
Foreign Currency Risk - Economic Activity (Numeric) [Abstract]
Derivative, Nonmonetary Notional Amount, Volume | Bcf	45
Louisville Gas And Electric Co [Member]
Foreign Currency Risk - Economic Activity (Numeric) [Abstract]
Cash collateral obligation under master netting arrangements	$ 0		0		0
Cash collateral pledged - eligible for offset	0		0		0
Cash collateral pledged - eligible for offset	0		0		0
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member]
Foreign Currency Risk - Economic Activity (Numeric) [Abstract]
Asset value	0		0		0
Liability value	7		7		7
Louisville Gas And Electric Co [Member] | Economic Hedges [Member] | Interest Rate Swaps [Member]
Interest Rate Risk - Cash Flow Hedges (Numeric) [Abstract]
Derivative, Notional Amount	64		64
Kentucky Utilities Co [Member]
Foreign Currency Risk - Economic Activity (Numeric) [Abstract]
Cash collateral obligation under master netting arrangements	0		0		0
Cash collateral pledged - eligible for offset	0		0		0
Cash collateral pledged - eligible for offset	$ 0		$ 0		$ 0

XML

Derivative Instruments and Hedging Activities - Fair Values (Details) - Not Designated As Hedging Instruments [Member] - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Fair Values by Balance Sheet Location [Abstract]
Asset value	$ 1	$ 25
Liability value	30	73
Current Assets [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	1	20
Other current liabilities [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	1	1
Noncurrent Assets [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	0	5
Price risk management assets, noncurrent [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	0	0
Other deferred credits and noncurrent liabilities [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	6	6
Current Liabilities [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	17	63
Price risk management assets, current [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	0	0
Noncurrent Liabilities [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	13	10
Louisville Gas And Electric Co [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	0	0
Liability value	7	7
Louisville Gas And Electric Co [Member] | Current Assets [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	0	0
Louisville Gas And Electric Co [Member] | Current Assets [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	0	0
Louisville Gas And Electric Co [Member] | Noncurrent Assets [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	0	0
Louisville Gas And Electric Co [Member] | Noncurrent Assets [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	0	0
Louisville Gas And Electric Co [Member] | Current Liabilities [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	1	1
Louisville Gas And Electric Co [Member] | Current Liabilities [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	1	1
Louisville Gas And Electric Co [Member] | Noncurrent Liabilities [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	6	6
Louisville Gas And Electric Co [Member] | Noncurrent Liabilities [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	$ 6	$ 6

XML

Derivative Instruments and Hedging Activities - Gains and Losses (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Interest Expense	$ 165	$ 118	$ 329	$ 225
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Other Income (Expense) - net	5	26	35	26
Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Other Comprehensive Income (Loss) [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Derivative Gain (Loss) Recognized in OCI	0	0	0	0
Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Interest Expense [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (Loss) Reclassified from AOCI into Income	(1)	(1)	(2)	(2)
Amount of gain (loss) reclassified from AOCI to income	(1)	(1)	(2)	(2)
Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Income (Loss) from Discontinued Operations (net of income taxes)
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Amount of gain (loss) reclassified from AOCI to income		0		0
Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Other Income (Expense) -net
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Amount of gain (loss) reclassified from AOCI to income	0		0
Not Designated As Hedging Instruments [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized in income on derivative	(5)	9	(6)	10
Gain (loss) recognized as regulatory liabilities/assets	4		(18)
Asset value	1		1		$ 25
Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Asset value	0		0		5
Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized in income on derivative		$ 0		$ 1
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]		Interest Expense		Interest Expense
Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Regulatory Assets Noncurrent [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized as regulatory liabilities/assets	2	$ 4	1	$ 8
Not Designated As Hedging Instruments [Member] | Gas Contracts
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized in income on derivative		$ 9		$ 9
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]		Energy purchases		Energy purchases
Not Designated As Hedging Instruments [Member] | Gas Contracts | Regulatory Assets Noncurrent [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized as regulatory liabilities/assets	0		7
Not Designated As Hedging Instruments [Member] | Gas Contracts | Regulatory Assets, current
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized as regulatory liabilities/assets	2		(26)
Not Designated As Hedging Instruments [Member] | Gas Contracts | Other Nonoperating Income (Expense)
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized in income on derivative	(1)		0
Not Designated As Hedging Instruments [Member] | Gas Contracts | Energy Purchases
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized in income on derivative	(4)		(6)
Louisville Gas And Electric Co [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Interest Expense	26	$ 21	51	$ 41
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Other Income (Expense) - net	0	4	2	3
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Asset value	0		0		0
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Asset value	0		0		0
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized in income on derivative	$ 0	$ 0	$ 0	$ 1
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Interest Expense	Interest Expense	Interest Expense	Interest Expense
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Noncurrent Assets [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Asset value	$ 0		$ 0		$ 0
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Regulatory Assets Noncurrent [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized as regulatory liabilities/assets	2	$ 4	1	$ 8
Kentucky Utilities Co [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Other Income (Expense) - net	$ 3	$ 4	$ 5	$ 4

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Derivative Instruments and Hedging Activities - Offsetting Derivative Instruments and Credit Risk-Related Features (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Assets [Abstract]
Cash collateral received - eligible for offset	$ 0	$ 0
Liabilities [Abstract]
Cash collateral pledged - eligible for offset	0	0
Credit Risk-Related Contingent Features [Abstract]
Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade	22
Derivative, Net Liability Position, Aggregate Fair Value	22
Treasury Derivatives [Member]
Assets [Abstract]
Gross	1	25
Derivative instruments - eligible for offset	1	20
Cash collateral received - eligible for offset	0	0
Net	0	5
Liabilities [Abstract]
Gross	30	73
Derivative instruments - eligible for offset	1	62
Cash collateral pledged - eligible for offset	0	0
Net	29	11
Louisville Gas And Electric Co [Member]
Assets [Abstract]
Cash collateral received - eligible for offset	0	0
Liabilities [Abstract]
Cash collateral pledged - eligible for offset	0	0
Louisville Gas And Electric Co [Member] | Treasury Derivatives [Member]
Assets [Abstract]
Gross	0	0
Derivative instruments - eligible for offset	0	0
Cash collateral received - eligible for offset	0	0
Net	0	0
Liabilities [Abstract]
Gross	7	7
Derivative instruments - eligible for offset	0	0
Cash collateral pledged - eligible for offset	0	0
Net	$ 7	$ 7

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Derivative Instruments and Hedging Activities - Commodity Purchases (Details) - Not Designated As Hedging Instruments [Member] - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Commodity Purchases [Line Items]
Liability value	$ 30	$ 73
Asset value	1	25
Current Assets [Member]
Commodity Purchases [Line Items]
Asset value	1	20
Current Assets [Member] | Gas Contract
Commodity Purchases [Line Items]
Asset value	1	20
Current Liabilities [Member]
Commodity Purchases [Line Items]
Liability value	17	63
Current Liabilities [Member] | Gas Contract
Commodity Purchases [Line Items]
Liability value	16	62
Noncurrent Assets [Member]
Commodity Purchases [Line Items]
Asset value	0	5
Noncurrent Assets [Member] | Gas Contract
Commodity Purchases [Line Items]
Asset value	0	5
Noncurrent Liabilities [Member]
Commodity Purchases [Line Items]
Liability value	13	10
Noncurrent Liabilities [Member] | Gas Contract
Commodity Purchases [Line Items]
Liability value	$ 7	$ 4

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Asset Retirement Obligations (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)
Asset Retirement Obligation [Roll Forward]
Balance at Beginning of Period	$ 177
Accretion	4
New Obligation s Incurred	2
Changes in estimated timing or cost	(1)
Obligations settled	(16)
Asset Retirement Obligations, Period Change, Miscellaneous	(5)
Balance at End of Period	161
Louisville Gas And Electric Co [Member]
Asset Retirement Obligation [Roll Forward]
Balance at Beginning of Period	86
Accretion	2
New Obligation s Incurred	1
Changes in estimated timing or cost	1
Obligations settled	(6)
Asset Retirement Obligations, Period Change, Miscellaneous	(6)
Balance at End of Period	78
Kentucky Utilities Co [Member]
Asset Retirement Obligation [Roll Forward]
Balance at Beginning of Period	82
Accretion	2
New Obligation s Incurred	1
Changes in estimated timing or cost	0
Obligations settled	(10)
Asset Retirement Obligations, Period Change, Miscellaneous	0
Balance at End of Period	$ 75

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Accumulated Other Comprehensive Income (Loss) - After-tax Changes by Component (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	$ (123)	$ (152)	$ (124)	$ (157)
Amounts arising during the period	(15)	22	(14)	22
Reclassifications from AOCI	1	6	1	11
Net OCI during the period	(14)	28	(13)	33
Balance at end of period	(137)	(124)	(137)	(124)
Unrealized gains (losses) on qualifying derivatives [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	4	2	3	1
Amounts arising during the period	0	0	0	0
Reclassifications from AOCI	0	0	1	1
Net OCI during the period	0	0	1	1
Balance at end of period	4	2	4	2
Defined benefit plans Prior service costs [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(5)	(6)	(5)	(6)
Amounts arising during the period	0	0	0	(1)
Reclassifications from AOCI	1	0	1	1
Net OCI during the period	1	0	1	0
Balance at end of period	(4)	(6)	(4)	(6)
Defined benefit plans Actuarial gain (loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(125)	(149)	(124)	(152)
Amounts arising during the period	(15)	21	(15)	21
Reclassifications from AOCI	0	6	(1)	9
Net OCI during the period	(15)	27	(16)	30
Balance at end of period	(140)	(122)	(140)	(122)
Equity Investees' OCI
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	3	1	2	0
Amounts arising during the period	0	1	1	2
Reclassifications from AOCI	0	0	0	0
Net OCI during the period	0	1	1	2
Balance at end of period	$ 3	$ 2	$ 3	$ 2

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Accumulated Other Comprehensive Income (Loss) - Income (Expense) Effect of Reclassifications (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Affected Line Item on the Statements of Income [Line Items]
Interest Expense	$ (165)	$ (118)	$ (329)	$ (225)
Other Income (Expense) - net	5	26	35	26
Income Tax Expense (Benefit)	(33)	(32)	(112)	(106)
Amounts Reclassified From Accumulated Other Comprehensive Income [Member]
Affected Line Item on the Statements of Income [Line Items]
Total After-tax	(1)	(6)	(1)	(11)
Defined Benefit Plans [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member]
Affected Line Item on the Statements of Income [Line Items]
Income (Loss) from Continuing Operations before Income Taxes	0	(8)	1	(13)
Income Tax Expense (Benefit)	(1)	2	(1)	3
Total After-tax	(1)	(6)	0	(10)
Defined Benefit Plans [Member] | Prior Service Costs [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member]
Affected Line Item on the Statements of Income [Line Items]
Income (Loss) from Continuing Operations before Income Taxes	(1)	0	(1)	(1)
Defined Benefit Plans [Member] | Net Actuarial Loss [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member]
Affected Line Item on the Statements of Income [Line Items]
Income (Loss) from Continuing Operations before Income Taxes	1	(8)	2	(12)
Unrealized gains (losses) on qualifying derivatives [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member]
Affected Line Item on the Statements of Income [Line Items]
Income (Loss) from Continuing Operations before Income Taxes	(1)	(1)	(2)	(2)
Income Tax Expense (Benefit)	1	1	1	1
Total After-tax	0	0	(1)	(1)
Unrealized gains (losses) on qualifying derivatives [Member] | Interest Rate Swaps [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member]
Affected Line Item on the Statements of Income [Line Items]
Interest Expense	$ (1)	$ (1)	$ (2)	$ (2)