Segment and Related Information

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment and Related Information

(PPL)

PPL is organized into three segments, broken down by geographic location: Kentucky Regulated, Pennsylvania Regulated, and Rhode Island Regulated.

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 transmission, distribution and sale of natural gas.

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 was acquired in May of 2022.

"Corporate and Other" primarily includes corporate level financing costs, certain unallocated corporate costs, and certain non-recoverable costs incurred in conjunction with the acquisition of Rhode Island Energy 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 and is not a reportable segment.

PPL's CODM is the Corporate Leadership Council (CLC), which is a management committee that is comprised of the Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Chief Technology Officer, Chief Human Resources Officer and Chief Legal Officer.

The CLC uses financial metrics including segment net income, earnings from ongoing operations, earnings per share and return on equity, as well as various operational metrics to assess segment performance and make investment and resource decisions. Segment net income is the measure of segment profit or loss that most closely aligns with GAAP and is being presented for disclosure purposes.

The tables below provide information about PPL’s segments and include the reconciliation to consolidated net income for the year ended December 31, 2024:

	Kentucky Regulated		Pennsylvania Regulated		Rhode Island Regulated		Total
Operating Revenues from external customers (a)	$	3,562	$	2,876	$	2,024	$	8,462
Reconciliation of revenue
Corporate and other revenues							—
Total consolidated revenues							$	8,462
Less:
Fuel	783		—		—		783
Energy Purchases	176		721		782		1,679
Operation and maintenance	803		705		731		2,239
Depreciation	710		401		165		1,276
Taxes, other than income	99		131		144		374
Other (income) expense - net	(29)		(78)		(24)		(131)
Interest expense	240		246		95		581
Income taxes	160		176		22		358
Segment net income	$	620	$	574	$	109	$	1,303
Reconciliation of segment profit or loss to consolidated net income
Corporate and other net loss							(415)
Net Income							$	888

(a)See Note 1 and Note 3 for additional information on Operating Revenues.

Other information for the segments and reconciliation to PPL's Consolidated results for the year ended December 31, 2024 are as follows:

	Kentucky Regulated		Pennsylvania Regulated		Rhode Island Regulated		Total Segments		Corporate and Other		Consolidated Total
Other Segment Disclosures
Amortization (a)	$	24	$	45	$	1	$	70	$	8	$	78
Deferred income taxes and investment tax credits (b)	2		129		38		169		27		196
Expenditures for long lived assets	1,088		1,229		495		2,812		(7)		2,805

(a)Represents non-cash expense items that include amortization of operating lease right-of-use assets, regulatory assets and liabilities, debt discounts and premiums and debt issuance costs.

(b)Represents a non-cash expense item that is also included in "Income Taxes."

The tables below provide information about PPL’s segments and include the reconciliation to consolidated net income for the year ended December 31, 2023:

	Kentucky Regulated		Pennsylvania Regulated		Rhode Island Regulated		Total
Operating Revenues from external customers (a)	$	3,452	$	3,008	$	1,851	$	8,311
Reconciliation of revenue
Corporate and other revenues							1
Total consolidated revenues							$	8,312

	Kentucky Regulated		Pennsylvania Regulated		Rhode Island Regulated		Total
Less:
Fuel	733		—		—		733
Energy Purchases	192		992		658		1,842
Operation and maintenance	826		605		705		2,136
Depreciation	696		397		156		1,249
Taxes, other than income	93		143		156		392
Other (income) expense - net	(12)		(39)		(19)		(70)
Interest expense	235		223		83		541
Income taxes	137		168		16		321
Segment net income	$	552	$	519	$	96	$	1,167
Reconciliation of segment profit or loss to consolidated net income
Corporate and other net loss							(427)
Net Income							$	740

(a)See Note 1 and Note 3 for additional information on Operating Revenues.

Other information for the segments and reconciliation to PPL's Consolidated results for the year ended December 31, 2023 are as follows:

	Kentucky Regulated		Pennsylvania Regulated		Rhode Island Regulated		Total Segments		Corporate and Other		Consolidated Total
Other Segment Disclosures
Amortization (a)	$	33	$	41	$	1	$	75	$	6	$	81
Deferred income taxes and investment tax credits (b)	(17)		46		48		77		245		322
Expenditures for long lived assets	950		956		454		2,360		30		2,390

(a)Represents non-cash expense items that include amortization of operating lease right-of-use assets, regulatory assets and liabilities, debt discounts and premiums and debt issuance costs.

(b)Represents a non-cash expense item that is also included in "Income Taxes."

The tables below provide information about PPL’s segments and include the reconciliation to consolidated net income for the year ended December 31, 2022:

	Kentucky Regulated		Pennsylvania Regulated		Rhode Island Regulated		Total
Operating Revenues from external customers (a)	$	3,811	$	3,030	$	1,038	$	7,879
Reconciliation of revenue
Corporate and other revenues							23
Total consolidated revenues							$	7,902
Less:
Fuel	931		—		—		931
Energy Purchases	273		1,048		365		1,686
Operation and maintenance	959		605		531		2,095
Depreciation	685		393		92		1,170
Taxes, other than income	92		149		92		333
Other (income) expense - net	(12)		(35)		(23)		(70)
Interest expense	205		171		39		415
Income taxes	129		174		(14)		289
Segment net income	$	549	$	525	$	(44)	$	1,030
Reconciliation of segment profit or loss to consolidated net income
Corporate and other net loss							(316)
Income from discontinued operations (Note 9)							42
Net Income							$	756

(a)See Note 1 and Note 3 for additional information on Operating Revenues.

Other information for the segments and reconciliation to PPL's Consolidated results for the year ended December 31, 2022 are as follows:

	Kentucky Regulated		Pennsylvania Regulated		Rhode Island Regulated		Total Segments		Corporate and Other		Consolidated Total
Other Segment Disclosures
Amortization (a)	$	23	$	22	$	2	$	47	$	5	$	52
Deferred income taxes and investment tax credits (b)	6		91		39		136		43		179
Expenditures for long lived assets	917		889		268		2,074		84		2,158

(a)Represents non-cash expense items that include amortization of operating lease right-of-use assets, regulatory assets and liabilities, debt discounts and premiums and debt issuance costs.

(b)Represents a non-cash expense item that is also included in "Income Taxes."

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

	As of December 31,
	2024		2023
Total Assets
Kentucky Regulated	$	17,626	$	17,029
Pennsylvania Regulated	15,475		14,294
Rhode Island Regulated	7,055		6,515
Corporate and Other (a)	913		1,398
Total	$	41,069	$	39,236

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

(PPL Electric)

PPL Electric has two operating segments, distribution and transmission, which are aggregated into a single reportable segment. PPL Electric's CODM is the President of PPL Electric.

The President uses financial metrics including segment net income, earnings from ongoing operations, earnings per share and return on equity, as well as various operational metrics to assess segment performance and make investment and resource decisions.

The significant segment expenses of and measure of profit and loss for PPL Electric regularly provided to the President are included on the face of PPL Electric's Statements of Income.

The measure of segment assets is reported on PPL Electric's Balance Sheets as total consolidated assets. The measures of significant non-cash segment expenses as well as expenditures for long lived assets are reported on PPL Electric's Statements of Cash Flows.

(LG&E and KU)

Each of LG&E and KU operates as a single operating and reportable segment, and the CODM for each of LG&E and KU is its President.

The President manages LG&E and KU as a single consolidated entity. Financial metrics including net income, earnings from ongoing operations, earnings per share and return on equity, as well as various operational metrics are used to assess segment performance and make investment and resource decisions.

The significant segment expenses of and measure of profit and loss for each of LG&E and KU regularly provided to its President are included on the face of the Statements of Income of LG&E and KU.

The measures of segment assets are reported on the Balance Sheets of LG&E and KU as total assets. The measures of significant non-cash segment expenses as well as expenditures for long lived assets are reported on the Statements of Cash Flows of LG&E and KU.