Segment and Related Information

9 Months Ended

Sep. 30, 2025

Segment Reporting [Abstract]

Segment and Related Information

2. 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 primarily consists 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 consists of the regulated electricity transmission and distribution operations of PPL Electric.

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

"Corporate and Other" primarily consists of corporate level financing costs, certain unallocated costs and certain non-recoverable costs incurred in conjunction with the acquisition of RIE. "Corporate and Other" is presented to reconcile segment information to PPL's consolidated results and is not a reportable segment.

The table below provides information about PPL’s segments and includes the reconciliation to consolidated net income for the three months ended September 30, 2025:

	Kentucky Regulated		Pennsylvania Regulated		Rhode Island Regulated		Total
Operating Revenues from external customers (a)	$	944	$	786	$	509	$	2,239
Reconciliation of revenue
Corporate and Other revenues							—
Total consolidated revenues							$	2,239
Less:
Fuel	231		—		—		231
Energy purchases	23		224		173		420
Other operation and maintenance	201		160		196		557
Depreciation	180		105		45		330
Taxes, other than income	26		38		38		102
Other (income) expense - net	(17)		(14)		(2)		(33)
Interest (income) from affiliate	—		(2)		—		(2)
Interest expense	68		67		28		163
Income taxes	47		49		4		100
Segment net income	$	185	$	159	$	27	$	371
Reconciliation of segment profit or loss to consolidated net income
Corporate and Other net loss							(53)
Net Income							$	318

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

The table below provides information about PPL’s segments and includes the reconciliation to consolidated net income for the nine months ended September 30, 2025:

	Kentucky Regulated		Pennsylvania Regulated		Rhode Island Regulated		Total
Operating Revenues from external customers (a)	$	2,841	$	2,298	$	1,629	$	6,768
Reconciliation of revenue
Corporate and Other revenues							—
Total consolidated revenues							$	6,768
Less:
Fuel	657		—		—		657
Energy purchases	149		622		598		1,369
Other operation and maintenance	601		481		610		1,692
Depreciation	535		307		131		973
Taxes, other than income	77		111		127		315
Other (income) expense - net	(35)		(36)		(5)		(76)
Interest (income) from affiliate	—		(4)		(3)		(7)
Interest expense	191		189		78		458
Income taxes	132		146		13		291
Segment net income	$	534	$	482	$	80	$	1,096
Reconciliation of segment profit or loss to consolidated net income
Corporate and Other net loss							(181)
Net Income							$	915

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

Other information for the segments and reconciliation to PPL's Consolidated results for the nine months ended September 30, 2025 are as follows:

	Kentucky Regulated		Pennsylvania Regulated		Rhode Island Regulated		Total Segments		Corporate and Other		Consolidated Total
Other Segment Disclosures
Amortization (a)	$	28	$	34	$	1	$	63	$	10	$	73
Deferred income taxes and investment tax credits (b)	21		63		38		122		55		177
Expenditures for long lived assets	1,243		1,082		539		2,864		4		2,868

(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 table below provides information about PPL’s segments and includes the reconciliation to consolidated net income for the three months ended September 30, 2024:

	Kentucky Regulated		Pennsylvania Regulated		Rhode Island Regulated		Total
Operating Revenues from external customers (a)	$	895	$	716	$	455	$	2,066
Reconciliation of revenue
Corporate and Other revenues							—
Total consolidated revenues							$	2,066
Less:
Fuel	207		—		—		207
Energy purchases	25		177		135		337
Other operation and maintenance	196		176		211		583
Depreciation	178		101		42		321
Taxes, other than income	25		32		33		90
Other (income) expense - net	(8)		(13)		(7)		(28)
Interest (income) from affiliate	—		(7)		—		(7)
Interest expense	60		61		25		146
Income taxes	43		47		2		92
Segment net income	$	169	$	142	$	14	$	325
Reconciliation of segment profit or loss to consolidated net income
Corporate and Other net loss							(111)
Net Income							$	214

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

The table below provides information about PPL’s segments and includes the reconciliation to consolidated net income for the nine months ended September 30, 2024:

	Kentucky Regulated		Pennsylvania Regulated		Rhode Island Regulated		Total
Operating Revenues from external customers (a)	$	2,698	$	2,159	$	1,393	$	6,250
Reconciliation of revenue
Corporate and Other revenues							1
Total consolidated revenues							$	6,251
Less:
Fuel	597		—		—		597
Energy purchases	124		544		464		1,132
Other operation and maintenance	593		511		547		1,651
Depreciation	531		300		123		954
Taxes, other than income	74		98		99		271
Other (income) expense - net	(20)		(33)		(20)		(73)
Interest (income) from affiliate	—		(27)		—		(27)
Interest expense	181		184		72		437
Income taxes	125		141		18		284
Segment net income	$	493	$	441	$	90	$	1,024
Reconciliation of segment profit or loss to consolidated net income
Corporate and Other net loss							(313)
Net Income							$	711

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

Other information for the segments and reconciliation to PPL's Consolidated results for the nine months ended September 30, 2024 are as follows:

	Kentucky Regulated		Pennsylvania Regulated		Rhode Island Regulated		Total Segments		Corporate and Other		Consolidated Total
Other Segment Disclosures
Amortization (a)	$	18	$	35	$	1	$	54	$	7	$	61
Deferred income taxes and investment tax credits (b)	(1)		91		38		128		19		147
Expenditures for long lived assets	792		820		342		1,954		(9)		1,945

(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 Balance Sheets as of:

	September 30, 2025		December 31, 2024
Total Assets
Kentucky Regulated	$	19,234	$	17,626
Pennsylvania Regulated	16,702		15,475
Rhode Island Regulated	7,247		7,055
Corporate and Other (a)	756		913
Total	$	43,939	$	41,069

(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.

The measure of segment assets is reported on PPL Electric's Balance Sheets as total consolidated assets. The measures of significant segment expenses are reported on PPL Electric's Statements of Income. 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.

The measures of segment assets are reported on the Balance Sheets of LG&E and KU as total assets. The measures of significant segment expenses are reported on the Statements of Income of LG&E and KU. 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.