UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 | |
FORM 10-Q | |
[X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended September 30, |
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 |
1-32944 | PPL Energy Supply, LLC (Exact name of Registrant as specified in its charter) (Delaware) Two North Ninth Street Allentown, PA 18101-1179 (610) 774-5151 | 23-3074920 |
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 |
333-173665 | LG&E and KU Energy LLC (Exact name of Registrant as specified in its charter) (Kentucky) 220 West Main Street Louisville, KY 40202-1377 (502) 627-2000 | 20-0523163 |
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 |
PPL Corporation | Yes X | No | ||
PPL Energy Supply, LLC | Yes X | No | ||
PPL Electric Utilities Corporation | Yes X | No | ||
LG&E and KU Energy LLC | Yes X | No | ||
Louisville Gas and Electric Company | Yes X | No | ||
Kentucky Utilities Company | Yes X | No |
PPL Corporation | Yes X | No | ||
PPL Energy Supply, LLC | Yes X | No | ||
PPL Electric Utilities Corporation | Yes X | No | ||
LG&E and KU Energy LLC | Yes X | No | ||
Louisville Gas and Electric Company | Yes X | No | ||
Kentucky Utilities Company | Yes X | No |
Large accelerated filer | Accelerated filer | Non-accelerated filer | Smaller reporting company | ||
PPL Corporation | [ X ] | [ ] | [ ] | [ ] | |
PPL Energy Supply, LLC | [ ] | [ ] | [ X ] | [ ] | |
PPL Electric Utilities Corporation | [ ] | [ ] | [ X ] | [ ] | |
LG&E and KU Energy LLC | [ ] | [ ] | [ X ] | [ ] | |
Louisville Gas and Electric Company | [ ] | [ ] | [ X ] | [ ] | |
Kentucky Utilities Company | [ ] | [ ] | [ X ] | [ ] |
PPL Corporation | Yes | No X | ||
PPL Energy Supply, LLC | Yes | No X | ||
PPL Electric Utilities Corporation | Yes | No X | ||
LG&E and KU Energy LLC | Yes | No X | ||
Louisville Gas and Electric Company | Yes | No X | ||
Kentucky Utilities Company | Yes | No X |
PPL Corporation | Common stock, $0.01 par value, | |
PPL Energy Supply, LLC | PPL Corporation indirectly holds all of the membership interests in PPL Energy Supply, LLC. | |
PPL Electric Utilities Corporation | Common stock, no par value, 66,368,056 shares outstanding and all held by PPL Corporation at October | |
LG&E and KU Energy LLC | PPL Corporation directly holds all of the membership interests in LG&E and KU Energy LLC. | |
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 at October | |
Kentucky Utilities Company | Common stock, no par value, 37,817,878 shares outstanding and all held by LG&E and KU Energy LLC at October |
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1 | |||||||
PART I. FINANCIAL INFORMATION | |||||||
Item 1. Financial Statements | |||||||
PPL Corporation and Subsidiaries | |||||||
3 | |||||||
4 | |||||||
5 | |||||||
6 | |||||||
8 | |||||||
PPL Energy Supply, LLC and Subsidiaries | |||||||
9 | |||||||
10 | |||||||
11 | |||||||
12 | |||||||
14 | |||||||
PPL Electric Utilities Corporation and Subsidiaries | |||||||
16 | |||||||
17 | |||||||
18 | |||||||
20 | |||||||
LG&E and KU Energy LLC and Subsidiaries | |||||||
22 | |||||||
23 | |||||||
24 | |||||||
26 |
Louisville Gas and Electric Company | |||||||
28 | |||||||
29 | |||||||
30 | |||||||
32 |
Kentucky Utilities Company | |||||
34 | |||||
35 | |||||
36 | |||||
38 | |||||
Combined Notes to Condensed Financial Statements (Unaudited) | |||||
39 | |||||
39 | |||||
40 | |||||
41 | |||||
42 | |||||
46 | |||||
96 | |||||
Item 2. Combined Management's Discussion and Analysis of Financial Condition and Results of Operations | |||||
99 | |||||
99 | |||||
101 | |||||
102 | |||||
102 | |||||
103 | |||||
104 | |||||
Results of Operations | 107 | ||||
108 | |||||
130 | |||||
130 | |||||
135 | |||||
139 | |||||
139 | |||||
139 | |||||
139 | |||||
142 | |||||
142 |
PART II. OTHER INFORMATION | ||
144 | ||
144 | ||
· | fuel supply cost and availability; |
· | continuing 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; |
· | weather conditions affecting generation, customer energy use and operating costs; |
· | operation, availability and operating costs of existing generation facilities; |
· | the |
· | transmission and distribution system conditions and operating costs; |
· | expansion of alternative sources of electricity generation; |
· | laws or regulations to reduce emissions of "greenhouse" gases or the physical effects of climate change; |
· | collective labor bargaining negotiations; |
· | the outcome of litigation against the Registrants and their subsidiaries; |
· | potential effects of threatened or actual terrorism, war or other hostilities, cyber-based intrusions or natural disasters; |
· | the commitments and liabilities of the Registrants and their subsidiaries; |
· | volatility in market demand and prices for energy, capacity, transmission services, emission allowances |
· | competition in retail and wholesale power and natural gas markets; |
· | liquidity of wholesale power markets; |
· | defaults by counterparties under energy, fuel or other power product contracts; |
· | market prices of commodity inputs for ongoing capital expenditures; |
· | capital market conditions, including the availability of capital or credit, changes in interest rates and certain economic indices, and decisions regarding capital structure; |
· | stock price performance of PPL; |
· | volatility in the fair value of debt and equity securities and its impact on the value of assets in the NDT funds and in defined benefit plans, and the potential cash funding requirements if fair value declines; |
· | interest rates and their effect on pension, retiree medical, |
· | volatility in or the impact of other changes in financial or commodity markets and economic conditions; |
· | new accounting requirements or new interpretations or applications of existing requirements; |
· | changes in securities and credit ratings; |
· | changes in foreign currency exchange |
· | current and future environmental conditions, regulations and other requirements and the related costs of compliance, including environmental capital expenditures, emission allowance costs and other expenses; |
· | legal, regulatory, political, market or other reactions to the 2011 incident at the nuclear generating facility at Fukushima, Japan, including additional NRC requirements; |
· | 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, approvals and rate relief; |
· | new state, federal or foreign legislation or regulatory developments; |
· | the outcome of any rate cases or other cost recovery filings by PPL Electric, |
· | the impact of any state, federal or foreign investigations applicable to the Registrants and their subsidiaries and the energy industry; |
· | the effect of any business or industry restructuring; |
· | development of new projects, markets and technologies; |
· | performance of new ventures; and |
· | business dispositions or acquisitions and our ability to successfully operate |
ITEM 1. Financial Statements | ||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | PPL Corporation and Subsidiaries | |||||||||||||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||||||||
(Millions of Dollars, except share data) | (Millions of Dollars, except share data) | (Millions of Dollars, except share data) | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Operating Revenues | Operating Revenues | Operating Revenues | ||||||||||||||||||||||||||||
Utility | $ | 1,693 | $ | 1,675 | $ | 5,012 | $ | 4,695 | Utility | $ | 1,739 | $ | 1,693 | $ | 5,344 | $ | 5,012 | |||||||||||||
Unregulated retail electric and gas | 218 | 189 | 620 | 517 | Unregulated retail electric and gas | 264 | 218 | 758 | 620 | |||||||||||||||||||||
Wholesale energy marketing | Wholesale energy marketing | |||||||||||||||||||||||||||||
Realized | 1,076 | 907 | 3,367 | 2,677 | Realized | 980 | 1,076 | 2,767 | 3,367 | |||||||||||||||||||||
Unrealized economic activity (Note 14) | (716) | 216 | (322) | 229 | Unrealized economic activity (Note 14) | (49) | (716) | (281) | (322) | |||||||||||||||||||||
Net energy trading margins | (11) | (7) | 7 | 14 | Net energy trading margins | 12 | (11) | 1 | 7 | |||||||||||||||||||||
Energy-related businesses | 143 | 140 | 380 | 387 | Energy-related businesses | 159 | 143 | 423 | 380 | |||||||||||||||||||||
Total Operating Revenues | 2,403 | 3,120 | 9,064 | 8,519 | Total Operating Revenues | 3,105 | 2,403 | 9,012 | 9,064 | |||||||||||||||||||||
Operating Expenses | Operating Expenses | Operating Expenses | ||||||||||||||||||||||||||||
Operation | Operation | |||||||||||||||||||||||||||||
Fuel | 570 | 603 | 1,405 | 1,492 | Fuel | 494 | 570 | 1,464 | 1,405 | |||||||||||||||||||||
Energy purchases | Energy purchases | |||||||||||||||||||||||||||||
Realized | 583 | 362 | 2,253 | 1,467 | Realized | 592 | 583 | 1,855 | 2,253 | |||||||||||||||||||||
Unrealized economic activity (Note 14) | (569) | 176 | (420) | 49 | Unrealized economic activity (Note 14) | (37) | (569) | (192) | (420) | |||||||||||||||||||||
Other operation and maintenance | 650 | 735 | 2,095 | 2,041 | Other operation and maintenance | 669 | 650 | 2,043 | 2,095 | |||||||||||||||||||||
Depreciation | 278 | 252 | 813 | 697 | Depreciation | 289 | 278 | 859 | 813 | |||||||||||||||||||||
Taxes, other than income | 90 | 90 | 268 | 238 | Taxes, other than income | 90 | 90 | 272 | 268 | |||||||||||||||||||||
Energy-related businesses | 137 | 135 | 363 | 368 | Energy-related businesses | 151 | 137 | 403 | 363 | |||||||||||||||||||||
Total Operating Expenses | 1,739 | 2,353 | 6,777 | 6,352 | Total Operating Expenses | 2,248 | 1,739 | 6,704 | 6,777 | |||||||||||||||||||||
Operating Income | Operating Income | 664 | 767 | 2,287 | 2,167 | Operating Income | 857 | 664 | 2,308 | 2,287 | ||||||||||||||||||||
Other Income (Expense) - net | Other Income (Expense) - net | (44) | 37 | (31) | (2) | Other Income (Expense) - net | (116) | (44) | 19 | (31) | ||||||||||||||||||||
Other-Than-Temporary Impairments | Other-Than-Temporary Impairments | 5 | 1 | 6 | Other-Than-Temporary Impairments | 1 | 1 | 1 | ||||||||||||||||||||||
Interest Expense | Interest Expense | 248 | 240 | 714 | 678 | Interest Expense | 246 | 248 | 755 | 714 | ||||||||||||||||||||
Income from Continuing Operations Before Income Taxes | Income from Continuing Operations Before Income Taxes | 372 | 559 | 1,541 | 1,481 | Income from Continuing Operations Before Income Taxes | 494 | 372 | 1,571 | 1,541 | ||||||||||||||||||||
Income Taxes | Income Taxes | 17 | 110 | 364 | 429 | Income Taxes | 84 | 17 | 344 | 364 | ||||||||||||||||||||
Income from Continuing Operations After Income Taxes | Income from Continuing Operations After Income Taxes | 355 | 449 | 1,177 | 1,052 | Income from Continuing Operations After Income Taxes | 410 | 355 | 1,227 | 1,177 | ||||||||||||||||||||
Income (Loss) from Discontinued Operations (net of income taxes) | Income (Loss) from Discontinued Operations (net of income taxes) | (6) | 2 | Income (Loss) from Discontinued Operations (net of income taxes) | 1 | 2 | (6) | |||||||||||||||||||||||
Net Income | Net Income | 355 | 449 | 1,171 | 1,054 | Net Income | 411 | 355 | 1,229 | 1,171 | ||||||||||||||||||||
Net Income Attributable to Noncontrolling Interests | Net Income Attributable to Noncontrolling Interests | 5 | 4 | 13 | Net Income Attributable to Noncontrolling Interests | 1 | 1 | 4 | ||||||||||||||||||||||
Net Income Attributable to PPL Shareowners | Net Income Attributable to PPL Shareowners | $ | 355 | $ | 444 | $ | 1,167 | $ | 1,041 | Net Income Attributable to PPL Shareowners | $ | 410 | $ | 355 | $ | 1,228 | $ | 1,167 | ||||||||||||
Amounts Attributable to PPL Shareowners: | Amounts Attributable to PPL Shareowners: | Amounts Attributable to PPL Shareowners: | ||||||||||||||||||||||||||||
Income from Continuing Operations After Income Taxes | $ | 355 | $ | 444 | $ | 1,173 | $ | 1,039 | Income from Continuing Operations After Income Taxes | $ | 409 | $ | 355 | $ | 1,226 | $ | 1,173 | |||||||||||||
Income (Loss) from Discontinued Operations (net of income taxes) | (6) | 2 | Income (Loss) from Discontinued Operations (net of income taxes) | 1 | 2 | (6) | ||||||||||||||||||||||||
Net Income | $ | 355 | $ | 444 | $ | 1,167 | $ | 1,041 | Net Income | $ | 410 | $ | 355 | $ | 1,228 | $ | 1,167 | |||||||||||||
Earnings Per Share of Common Stock: | Earnings Per Share of Common Stock: | Earnings Per Share of Common Stock: | ||||||||||||||||||||||||||||
Income from Continuing Operations After Income Taxes Available to PPL | Income from Continuing Operations After Income Taxes Available to PPL | |||||||||||||||||||||||||||||
Common Shareowners: | Common Shareowners: | |||||||||||||||||||||||||||||
Basic | $ | 0.61 | $ | 0.76 | $ | 2.01 | $ | 1.91 | Basic | $ | 0.65 | $ | 0.61 | $ | 2.03 | $ | 2.01 | |||||||||||||
Diluted | $ | 0.61 | $ | 0.76 | $ | 2.01 | $ | 1.91 | Diluted | $ | 0.62 | $ | 0.61 | $ | 1.90 | $ | 2.01 | |||||||||||||
Net Income Available to PPL Common Shareowners: | Net Income Available to PPL Common Shareowners: | |||||||||||||||||||||||||||||
Basic | $ | 0.61 | $ | 0.76 | $ | 2.00 | $ | 1.92 | Basic | $ | 0.65 | $ | 0.61 | $ | 2.03 | $ | 2.00 | |||||||||||||
Diluted | $ | 0.61 | $ | 0.76 | $ | 2.00 | $ | 1.91 | Diluted | $ | 0.62 | $ | 0.61 | $ | 1.90 | $ | 2.00 | |||||||||||||
Dividends Declared Per Share of Common Stock | Dividends Declared Per Share of Common Stock | $ | 0.36 | $ | 0.35 | $ | 1.08 | $ | 1.05 | Dividends Declared Per Share of Common Stock | $ | 0.3675 | $ | 0.36 | $ | 1.1025 | $ | 1.08 | ||||||||||||
Weighted-Average Shares of Common Stock Outstanding (in thousands) | Weighted-Average Shares of Common Stock Outstanding (in thousands) | Weighted-Average Shares of Common Stock Outstanding (in thousands) | ||||||||||||||||||||||||||||
Basic | 580,585 | 577,595 | 579,847 | 541,135 | Basic | 631,046 | 580,585 | 601,275 | 579,847 | |||||||||||||||||||||
Diluted | 582,636 | 578,054 | 580,930 | 541,480 | Diluted | 664,343 | 582,636 | 662,094 | 580,930 | |||||||||||||||||||||
The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements. |
PPL Corporation and Subsidiaries | (Unaudited) | (Millions of Dollars) | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Net income | Net income | $ | 355 | $ | 449 | $ | 1,171 | $ | 1,054 | Net income | $ | 411 | $ | 355 | $ | 1,229 | $ | 1,171 | ||||||||||||
Other comprehensive income (loss): | Other comprehensive income (loss): | Other comprehensive income (loss): | ||||||||||||||||||||||||||||
Amounts arising during the period - gains (losses), net of tax (expense) | Amounts arising during the period - gains (losses), net of tax (expense) | Amounts arising during the period - gains (losses), net of tax (expense) | ||||||||||||||||||||||||||||
benefit: | benefit: | |||||||||||||||||||||||||||||
Foreign currency translation adjustments, net of tax of $1, ($2), $1, ($1) | 152 | (4) | 49 | 156 | Foreign currency translation adjustments, net of tax of $8, $1, $1, $1 | 87 | 152 | (165) | 49 | |||||||||||||||||||||
Available-for-sale securities, net of tax of ($14), $28, ($34), $15 | 13 | (26) | 28 | (13) | Available-for-sale securities, net of tax of ($15), ($14), ($42), ($32) | 15 | 13 | 40 | 30 | |||||||||||||||||||||
Qualifying derivatives, net of tax of $14, ($19), ($41), ($30) | (41) | 41 | 27 | 48 | Qualifying derivatives, net of tax of $2, $14, ($41), ($29) | (9) | (41) | 77 | 39 | |||||||||||||||||||||
Equity investees' other comprehensive income (loss), net of | Equity investees' other comprehensive income (loss), net of | |||||||||||||||||||||||||||||
tax of $0, $0, $2, $0 | (3) | (1) | tax of $0, $0, $0, $2 | (3) | ||||||||||||||||||||||||||
Defined benefit plans: | Defined benefit plans: | |||||||||||||||||||||||||||||
Net actuarial gain (loss), net of tax of $0, $0, $28, $0 | 1 | (85) | 1 | Net actuarial gain (loss), net of tax of $0, $0, $0, $28 | (85) | |||||||||||||||||||||||||
Reclassifications to net income - (gains) losses, net of tax expense | ||||||||||||||||||||||||||||||
Reclassifications from AOCI - (gains) losses, net of tax expense | Reclassifications from AOCI - (gains) losses, net of tax expense | |||||||||||||||||||||||||||||
(benefit): | (benefit): | |||||||||||||||||||||||||||||
Available-for-sale securities, net of tax of $0, $0, $3, $5 | 2 | (4) | (6) | Available-for-sale securities, net of tax of $1, $0, $2, $1 | (2) | (6) | ||||||||||||||||||||||||
Qualifying derivatives, net of tax of $51, $57, $222, $163 | (61) | (94) | (323) | (252) | Qualifying derivatives, net of tax of $11, $51, $68, $210 | (6) | (61) | (122) | (335) | |||||||||||||||||||||
Equity investees' other comprehensive (income) loss, net of | Equity investees' other comprehensive (income) loss, net of | |||||||||||||||||||||||||||||
tax of $0, $0, $0, $0 | 3 | tax of $0, $0, $0, $0 | (1) | (1) | ||||||||||||||||||||||||||
Defined benefit plans: | Defined benefit plans: | |||||||||||||||||||||||||||||
Prior service costs, net of tax of ($1), ($2), ($4), ($5) | 1 | 2 | 6 | 7 | Prior service costs, net of tax of ($1), ($1), ($3), ($4) | 2 | 1 | 5 | 6 | |||||||||||||||||||||
Net actuarial loss, net of tax of ($6), ($4), ($17), ($14) | 17 | 13 | 54 | 36 | Net actuarial loss, net of tax of ($12), ($6), ($37), ($17) | 33 | 17 | 101 | 54 | |||||||||||||||||||||
Total other comprehensive income (loss) attributable to PPL | Total other comprehensive income (loss) attributable to PPL | Total other comprehensive income (loss) attributable to PPL | ||||||||||||||||||||||||||||
Shareowners | 81 | (65) | (251) | (21) | Shareowners | 121 | 81 | (67) | (251) | |||||||||||||||||||||
Comprehensive income (loss) | Comprehensive income (loss) | 436 | 384 | 920 | 1,033 | Comprehensive income (loss) | 532 | 436 | 1,162 | 920 | ||||||||||||||||||||
Comprehensive income attributable to noncontrolling interests | 5 | 4 | 13 | Comprehensive income attributable to noncontrolling interests | 1 | 1 | 4 | |||||||||||||||||||||||
Comprehensive income (loss) attributable to PPL Shareowners | Comprehensive income (loss) attributable to PPL Shareowners | $ | 436 | $ | 379 | $ | 916 | $ | 1,020 | Comprehensive income (loss) attributable to PPL Shareowners | $ | 531 | $ | 436 | $ | 1,161 | $ | 916 | ||||||||||||
The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements. |
PPL Corporation and Subsidiaries | (Unaudited) | (Millions of Dollars) | ||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2012 | 2011 | 2013 | 2012 | |||||||||||||||
Cash Flows from Operating Activities | Cash Flows from Operating Activities | Cash Flows from Operating Activities | ||||||||||||||||
Net income | $ | 1,171 | $ | 1,054 | Net income | $ | 1,229 | $ | 1,171 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities | Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||||||
Depreciation | 813 | 697 | Depreciation | 859 | 813 | |||||||||||||
Amortization | 144 | 180 | Amortization | 164 | 144 | |||||||||||||
Defined benefit plans - expense | 123 | 165 | Defined benefit plans - expense | 135 | 123 | |||||||||||||
Deferred income taxes and investment tax credits | 298 | 403 | Deferred income taxes and investment tax credits | 301 | 298 | |||||||||||||
Unrealized (gains) losses on derivatives, and other hedging activities | 21 | (190) | Unrealized (gains) losses on derivatives, and other hedging activities | 126 | 21 | |||||||||||||
Other | 34 | 110 | Other | 92 | 34 | |||||||||||||
Change in current assets and current liabilities | Change in current assets and current liabilities | |||||||||||||||||
Accounts receivable | 19 | (134) | Accounts receivable | (79) | 19 | |||||||||||||
Accounts payable | (175) | (164) | Accounts payable | (140) | (175) | |||||||||||||
Unbilled revenues | 121 | 236 | Unbilled revenues | 197 | 121 | |||||||||||||
Prepayments | (11) | 286 | Counterparty collateral | (77) | 13 | |||||||||||||
Counterparty collateral | 13 | (273) | Taxes payable | 76 | 29 | |||||||||||||
Taxes | 29 | (64) | Uncertain tax positions | (104) | (4) | |||||||||||||
Accrued interest | 43 | 111 | Accrued interest | 8 | 43 | |||||||||||||
Other | 15 | 87 | Other | (111) | 8 | |||||||||||||
Other operating activities | Other operating activities | |||||||||||||||||
Defined benefit plans - funding | (526) | (565) | Defined benefit plans - funding | (505) | (526) | |||||||||||||
Other assets | 1 | (22) | Other assets | (59) | 1 | |||||||||||||
Other liabilities | (39) | (71) | Other liabilities | 111 | (39) | |||||||||||||
Net cash provided by operating activities | 2,094 | 1,846 | Net cash provided by operating activities | 2,223 | 2,094 | |||||||||||||
Cash Flows from Investing Activities | Cash Flows from Investing Activities | Cash Flows from Investing Activities | ||||||||||||||||
Expenditures for property, plant and equipment | (2,078) | (1,685) | Expenditures for property, plant and equipment | (2,768) | (2,078) | |||||||||||||
Proceeds from the sale of certain non-core generation facilities | 381 | Ironwood Acquisition, net of cash acquired | (84) | |||||||||||||||
Ironwood Acquisition, net of cash acquired | (84) | Purchases of nuclear plant decommissioning trust investments | (102) | (112) | ||||||||||||||
Acquisition of WPD Midlands | (5,763) | Proceeds from the sale of nuclear plant decommissioning trust investments | 92 | 102 | ||||||||||||||
Purchases of nuclear plant decommissioning trust investments | (112) | (144) | Net (increase) decrease in restricted cash and cash equivalents | 13 | 62 | |||||||||||||
Proceeds from the sale of nuclear plant decommissioning trust investments | 102 | 134 | Other investing activities | (23) | (6) | |||||||||||||
Proceeds from the sale of other investments | 20 | 163 | Net cash provided by (used in) investing activities | (2,788) | (2,116) | |||||||||||||
Cash Flows from Financing Activities | Cash Flows from Financing Activities | |||||||||||||||||
Net (increase) decrease in restricted cash and cash equivalents | 62 | (51) | Issuance of long-term debt | 862 | 824 | |||||||||||||
Other investing activities | (26) | (74) | ||||||||||||||||
Net cash provided by (used in) investing activities | (2,116) | (7,039) | ||||||||||||||||
Cash Flows from Financing Activities | ||||||||||||||||||
Issuance of long-term debt | 824 | 5,245 | Retirement of long-term debt | (309) | (105) | |||||||||||||
Retirement of long-term debt | (105) | (708) | Repurchase of common stock | (74) | ||||||||||||||
Issuance of common stock | 54 | 2,281 | Issuance of common stock | 1,409 | 54 | |||||||||||||
Payment of common stock dividends | (623) | (543) | Payment of common stock dividends | (645) | (623) | |||||||||||||
Redemption of preference stock of a subsidiary | (250) | Redemption of preference stock of a subsidiary | (250) | |||||||||||||||
Debt issuance and credit facility costs | (10) | (84) | Debt issuance and credit facility costs | (37) | (10) | |||||||||||||
Contract adjustment payments | (71) | (49) | Contract adjustment payments | (72) | (71) | |||||||||||||
Net increase (decrease) in short-term debt | (51) | (322) | Net increase (decrease) in short-term debt | (148) | (51) | |||||||||||||
Other financing activities | (8) | (16) | Other financing activities | (20) | (8) | |||||||||||||
Net cash provided by (used in) financing activities | (240) | 5,804 | Net cash provided by (used in) financing activities | 966 | (240) | |||||||||||||
Effect of Exchange Rates on Cash and Cash Equivalents | Effect of Exchange Rates on Cash and Cash Equivalents | 6 | (25) | Effect of Exchange Rates on Cash and Cash Equivalents | (11) | 6 | ||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | Net Increase (Decrease) in Cash and Cash Equivalents | (256) | 586 | Net Increase (Decrease) in Cash and Cash Equivalents | 390 | (256) | ||||||||||||
Cash and Cash Equivalents at Beginning of Period | Cash and Cash Equivalents at Beginning of Period | 1,202 | 925 | Cash and Cash Equivalents at Beginning of Period | 901 | 1,202 | ||||||||||||
Cash and Cash Equivalents at End of Period | Cash and Cash Equivalents at End of Period | $ | 946 | $ | 1,511 | Cash and Cash Equivalents at End of Period | $ | 1,291 | $ | 946 | ||||||||
The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements. |
PPL Corporation and Subsidiaries | (Unaudited) | (Millions of Dollars, shares in thousands) | ||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||
2012 | 2011 | 2013 | 2012 | |||||||||||||||
Assets | Assets | Assets | ||||||||||||||||
Current Assets | Current Assets | Current Assets | ||||||||||||||||
Cash and cash equivalents | $ | 946 | $ | 1,202 | ||||||||||||||
Short-term investments | 16 | Cash and cash equivalents | $ | 1,291 | $ | 901 | ||||||||||||
Restricted cash and cash equivalents | 88 | 152 | Restricted cash and cash equivalents | 52 | 54 | |||||||||||||
Accounts receivable (less reserve: 2012, $63; 2011, $54) | Accounts receivable (less reserve: 2013, $65; 2012, $64) | |||||||||||||||||
Customer | 763 | 736 | Customer | 857 | 745 | |||||||||||||
Other | 51 | 91 | Other | 117 | 79 | |||||||||||||
Unbilled revenues | 711 | 830 | Unbilled revenues | 652 | 857 | |||||||||||||
Fuel, materials and supplies | 663 | 654 | Fuel, materials and supplies | 686 | 673 | |||||||||||||
Prepayments | 167 | 160 | Prepayments | 173 | 166 | |||||||||||||
Price risk management assets | 1,768 | 2,548 | Price risk management assets | 1,045 | 1,525 | |||||||||||||
Regulatory assets | 21 | 9 | Regulatory assets | 31 | 19 | |||||||||||||
Other current assets | 49 | 28 | Other current assets | 67 | 49 | |||||||||||||
Total Current Assets | 5,227 | 6,426 | Total Current Assets | 4,971 | 5,068 | |||||||||||||
Investments | Investments | Investments | ||||||||||||||||
Nuclear plant decommissioning trust funds | 711 | 640 | Nuclear plant decommissioning trust funds | 804 | 712 | |||||||||||||
Other investments | 67 | 78 | Other investments | 47 | 47 | |||||||||||||
Total Investments | 778 | 718 | Total Investments | 851 | 759 | |||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment | Property, Plant and Equipment | ||||||||||||||||
Regulated utility plant | 24,415 | 22,994 | Regulated utility plant | 26,498 | 25,196 | |||||||||||||
Less: accumulated depreciation - regulated utility plant | 4,011 | 3,534 | Less: accumulated depreciation - regulated utility plant | 4,636 | 4,164 | |||||||||||||
Regulated utility plant, net | 20,404 | 19,460 | Regulated utility plant, net | 21,862 | 21,032 | |||||||||||||
Non-regulated property, plant and equipment | Non-regulated property, plant and equipment | |||||||||||||||||
Generation | 11,190 | 10,514 | Generation | 11,653 | 11,295 | |||||||||||||
Nuclear fuel | 524 | 457 | Nuclear fuel | 590 | 524 | |||||||||||||
Other | 698 | 637 | Other | 834 | 726 | |||||||||||||
Less: accumulated depreciation - non-regulated property, plant and equipment | 5,875 | 5,676 | Less: accumulated depreciation - non-regulated property, plant and equipment | 6,173 | 5,942 | |||||||||||||
Non-regulated property, plant and equipment, net | 6,537 | 5,932 | Non-regulated property, plant and equipment, net | 6,904 | 6,603 | |||||||||||||
Construction work in progress | 2,106 | 1,874 | Construction work in progress | 2,822 | 2,397 | |||||||||||||
Property, Plant and Equipment, net (a) | 29,047 | 27,266 | Property, Plant and Equipment, net (a) | 31,588 | 30,032 | |||||||||||||
Other Noncurrent Assets | Other Noncurrent Assets | Other Noncurrent Assets | ||||||||||||||||
Regulatory assets | 1,323 | 1,349 | Regulatory assets | 1,423 | 1,483 | |||||||||||||
Goodwill | 4,130 | 4,114 | Goodwill | 4,050 | 4,158 | |||||||||||||
Other intangibles (a) | 913 | 1,065 | Other intangibles | 932 | 925 | |||||||||||||
Price risk management assets | 860 | 920 | Price risk management assets | 550 | 572 | |||||||||||||
Other noncurrent assets | 962 | 790 | Other noncurrent assets | 623 | 637 | |||||||||||||
Total Other Noncurrent Assets | 8,188 | 8,238 | Total Other Noncurrent Assets | 7,578 | 7,775 | |||||||||||||
Total Assets | Total Assets | $ | 43,240 | $ | 42,648 | Total Assets | $ | 44,988 | $ | 43,634 |
(a) | At September 30, |
CONDENSED CONSOLIDATED BALANCE SHEETS | PPL Corporation and Subsidiaries | (Unaudited) | (Millions of Dollars, shares in thousands) | |||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||
2012 | 2011 | 2013 | 2012 | |||||||||||||||
Liabilities and Equity | Liabilities and Equity | Liabilities and Equity | ||||||||||||||||
Current Liabilities | Current Liabilities | Current Liabilities | ||||||||||||||||
Short-term debt | $ | 526 | $ | 578 | Short-term debt | $ | 499 | $ | 652 | |||||||||
Long-term debt due within one year | 313 | Long-term debt due within one year | 751 | 751 | ||||||||||||||
Accounts payable | 1,071 | 1,214 | Accounts payable | 1,079 | 1,252 | |||||||||||||
Taxes | 95 | 65 | Taxes | 170 | 90 | |||||||||||||
Interest | 335 | 287 | Interest | 325 | 325 | |||||||||||||
Dividends | 210 | 207 | Dividends | 232 | 210 | |||||||||||||
Price risk management liabilities | 1,184 | 1,570 | Price risk management liabilities | 823 | 1,065 | |||||||||||||
Regulatory liabilities | 65 | 73 | Regulatory liabilities | 68 | 61 | |||||||||||||
Other current liabilities | 1,088 | 1,261 | Other current liabilities | 1,001 | 1,219 | |||||||||||||
Total Current Liabilities | 4,887 | 5,255 | Total Current Liabilities | 4,948 | 5,625 | |||||||||||||
Long-term Debt | Long-term Debt | 18,711 | 17,993 | Long-term Debt | 19,092 | 18,725 | ||||||||||||
Deferred Credits and Other Noncurrent Liabilities | Deferred Credits and Other Noncurrent Liabilities | Deferred Credits and Other Noncurrent Liabilities | ||||||||||||||||
Deferred income taxes | 3,705 | 3,326 | Deferred income taxes | 3,777 | 3,387 | |||||||||||||
Investment tax credits | 315 | 285 | Investment tax credits | 345 | 328 | |||||||||||||
Price risk management liabilities | 884 | 840 | Price risk management liabilities | 538 | 629 | |||||||||||||
Accrued pension obligations | 1,086 | 1,313 | Accrued pension obligations | 1,529 | 2,076 | |||||||||||||
Asset retirement obligations | 500 | 484 | Asset retirement obligations | 678 | 536 | |||||||||||||
Regulatory liabilities | 999 | 1,010 | Regulatory liabilities | 1,054 | 1,010 | |||||||||||||
Other deferred credits and noncurrent liabilities | 921 | 1,046 | Other deferred credits and noncurrent liabilities | 665 | 820 | |||||||||||||
Total Deferred Credits and Other Noncurrent Liabilities | 8,410 | 8,304 | Total Deferred Credits and Other Noncurrent Liabilities | 8,586 | 8,786 | |||||||||||||
Commitments and Contingent Liabilities (Notes 6 and 10) | ||||||||||||||||||
Commitments and Contingent Liabilities (Notes 5, 6 and 10) | Commitments and Contingent Liabilities (Notes 5, 6 and 10) | |||||||||||||||||
Equity | Equity | Equity | ||||||||||||||||
PPL Shareowners' Common Equity | PPL Shareowners' Common Equity | |||||||||||||||||
Common stock - $0.01 par value (a) | 6 | 6 | Common stock - $0.01 par value (a) | 6 | 6 | |||||||||||||
Additional paid-in capital | 6,912 | 6,813 | Additional paid-in capital | 8,305 | 6,936 | |||||||||||||
Earnings reinvested | 5,335 | 4,797 | Earnings reinvested | 6,040 | 5,478 | |||||||||||||
Accumulated other comprehensive loss | (1,039) | (788) | Accumulated other comprehensive loss | (2,007) | (1,940) | |||||||||||||
Total PPL Shareowners' Common Equity | 11,214 | 10,828 | Total PPL Shareowners' Common Equity | 12,344 | 10,480 | |||||||||||||
Noncontrolling Interests | 18 | 268 | Noncontrolling Interests | 18 | 18 | |||||||||||||
Total Equity | 11,232 | 11,096 | Total Equity | 12,362 | 10,498 | |||||||||||||
Total Liabilities and Equity | Total Liabilities and Equity | $ | 43,240 | $ | 42,648 | Total Liabilities and Equity | $ | 44,988 | $ | 43,634 |
(a) | 780,000 shares authorized; |
PPL Corporation and Subsidiaries | (Unaudited) | (Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||||
PPL Shareowners | PPL Shareowners | |||||||||||||||||||||||||||||||||||||||||||
Common | Common | |||||||||||||||||||||||||||||||||||||||||||
stock | Accumulated | stock | Accumulated | |||||||||||||||||||||||||||||||||||||||||
shares | Additional | other | Non- | shares | Additional | other | Non- | |||||||||||||||||||||||||||||||||||||
outstanding | Common | paid-in | Earnings | comprehensive | controlling | outstanding | Common | paid-in | Earnings | comprehensive | controlling | |||||||||||||||||||||||||||||||||
(a) | stock | capital | reinvested | loss | interests | Total | (a) | stock | capital | reinvested | loss | interests | Total | |||||||||||||||||||||||||||||||
June 30, 2012 | 580,213 | $ | 6 | $ | 6,886 | $ | 5,190 | $ | (1,120) | $ | 18 | $ | 10,980 | |||||||||||||||||||||||||||||||
Common stock issued (b) | 757 | 21 | 21 | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation (c) | 5 | 5 | ||||||||||||||||||||||||||||||||||||||||||
June 30, 2013 (b) | June 30, 2013 (b) | 591,622 | $ | 6 | $ | 7,195 | $ | 5,863 | $ | (2,128) | $ | 18 | $ | 10,954 | ||||||||||||||||||||||||||||||
Common stock issued (c) | Common stock issued (c) | 40,117 | 1,151 | 1,151 | ||||||||||||||||||||||||||||||||||||||||
Common stock repurchased (d) | Common stock repurchased (d) | (1,500) | (46) | (46) | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation (e) | Stock-based compensation (e) | 5 | 5 | |||||||||||||||||||||||||||||||||||||||||
Net income | Net income | 355 | 355 | Net income | 410 | 1 | 411 | |||||||||||||||||||||||||||||||||||||
Dividends, dividend equivalents, | Dividends, dividend equivalents, | Dividends, dividend equivalents, | ||||||||||||||||||||||||||||||||||||||||||
redemptions and distributions (f) | (233) | (1) | (234) | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive | Other comprehensive | |||||||||||||||||||||||||||||||||||||||||||
income (loss) | 121 | 121 | ||||||||||||||||||||||||||||||||||||||||||
September 30, 2013 (b) | September 30, 2013 (b) | 630,239 | $ | 6 | $ | 8,305 | $ | 6,040 | $ | (2,007) | $ | 18 | $ | 12,362 | ||||||||||||||||||||||||||||||
December 31, 2012 (b) | December 31, 2012 (b) | 581,944 | $ | 6 | $ | 6,936 | $ | 5,478 | $ | (1,940) | $ | 18 | $ | 10,498 | ||||||||||||||||||||||||||||||
Common stock issued (c) | Common stock issued (c) | 50,725 | 1,433 | 1,433 | ||||||||||||||||||||||||||||||||||||||||
Common stock repurchased (d) | Common stock repurchased (d) | (2,430) | (74) | (74) | ||||||||||||||||||||||||||||||||||||||||
Cash settlement of equity forward | Cash settlement of equity forward | |||||||||||||||||||||||||||||||||||||||||||
agreements (d) | (13) | (13) | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation (e) | Stock-based compensation (e) | 23 | 23 | |||||||||||||||||||||||||||||||||||||||||
Net income | Net income | 1,228 | 1 | 1,229 | ||||||||||||||||||||||||||||||||||||||||
Dividends, dividend equivalents, | Dividends, dividend equivalents, | |||||||||||||||||||||||||||||||||||||||||||
redemptions and distributions (f) | (666) | (1) | (667) | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive | Other comprehensive | |||||||||||||||||||||||||||||||||||||||||||
income (loss) | (67) | (67) | ||||||||||||||||||||||||||||||||||||||||||
September 30, 2013 (b) | September 30, 2013 (b) | 630,239 | $ | 6 | $ | 8,305 | $ | 6,040 | $ | (2,007) | $ | 18 | $ | 12,362 | ||||||||||||||||||||||||||||||
June 30, 2012 | June 30, 2012 | 580,213 | $ | 6 | $ | 6,886 | $ | 5,190 | $ | (1,120) | $ | 18 | $ | 10,980 | ||||||||||||||||||||||||||||||
Common stock issued (c) | Common stock issued (c) | 757 | 21 | 21 | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation (e) | Stock-based compensation (e) | 5 | 5 | |||||||||||||||||||||||||||||||||||||||||
Net income | Net income | 355 | 355 | |||||||||||||||||||||||||||||||||||||||||
Dividends, dividend equivalents | Dividends, dividend equivalents | |||||||||||||||||||||||||||||||||||||||||||
redemptions and distributions (e) | (210) | (210) | redemptions and distributions (f) | (210) | (210) | |||||||||||||||||||||||||||||||||||||||
Other comprehensive | Other comprehensive | Other comprehensive | ||||||||||||||||||||||||||||||||||||||||||
income (loss) | 81 | 81 | income (loss) | 81 | 81 | |||||||||||||||||||||||||||||||||||||||
September 30, 2012 | September 30, 2012 | 580,970 | $ | 6 | $ | 6,912 | $ | 5,335 | $ | (1,039) | $ | 18 | $ | 11,232 | September 30, 2012 | 580,970 | $ | 6 | $ | 6,912 | $ | 5,335 | $ | (1,039) | $ | 18 | $ | 11,232 | ||||||||||||||||
December 31, 2011 | December 31, 2011 | 578,405 | $ | 6 | $ | 6,813 | $ | 4,797 | $ | (788) | $ | 268 | $ | 11,096 | December 31, 2011 | 578,405 | $ | 6 | $ | 6,813 | $ | 4,797 | $ | (788) | $ | 268 | $ | 11,096 | ||||||||||||||||
Common stock issued (b) | 2,565 | 71 | 71 | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation (c) | 28 | 28 | ||||||||||||||||||||||||||||||||||||||||||
Net income | 1,167 | 4 | 1,171 | |||||||||||||||||||||||||||||||||||||||||
Dividends, dividend equivalents, | ||||||||||||||||||||||||||||||||||||||||||||
redemptions and distributions (e) | (629) | (254) | (883) | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive | ||||||||||||||||||||||||||||||||||||||||||||
income (loss) | (251) | (251) | ||||||||||||||||||||||||||||||||||||||||||
September 30, 2012 | 580,970 | $ | 6 | $ | 6,912 | $ | 5,335 | $ | (1,039) | $ | 18 | $ | 11,232 | |||||||||||||||||||||||||||||||
June 30, 2011 | 577,265 | $ | 6 | $ | 6,774 | $ | 4,306 | $ | (435) | $ | 268 | $ | 10,919 | |||||||||||||||||||||||||||||||
Common stock issued (b) | 579 | 16 | 16 | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation (c) | 5 | 5 | ||||||||||||||||||||||||||||||||||||||||||
Common stock issued (c) | Common stock issued (c) | 2,565 | 71 | 71 | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation (e) | Stock-based compensation (e) | 28 | 28 | |||||||||||||||||||||||||||||||||||||||||
Net income | Net income | 444 | 5 | 449 | Net income | 1,167 | 4 | 1,171 | ||||||||||||||||||||||||||||||||||||
Dividends, dividend equivalents | Dividends, dividend equivalents | Dividends, dividend equivalents | ||||||||||||||||||||||||||||||||||||||||||
and distributions (e) | (203) | (5) | (208) | redemptions and distributions (f) | (629) | (254) | (883) | |||||||||||||||||||||||||||||||||||||
Other comprehensive | Other comprehensive | Other comprehensive | ||||||||||||||||||||||||||||||||||||||||||
income (loss) | (65) | (65) | income (loss) | (251) | (251) | |||||||||||||||||||||||||||||||||||||||
September 30, 2011 | 577,844 | $ | 6 | $ | 6,795 | $ | 4,547 | $ | (500) | $ | 268 | $ | 11,116 | |||||||||||||||||||||||||||||||
December 31, 2010 | 483,391 | $ | 5 | $ | 4,602 | $ | 4,082 | $ | (479) | $ | 268 | $ | 8,478 | |||||||||||||||||||||||||||||||
Common stock issued (b) | 94,453 | 1 | 2,328 | 2,329 | ||||||||||||||||||||||||||||||||||||||||
Purchase Contracts (d) | (141) | (141) | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation (c) | 6 | 6 | ||||||||||||||||||||||||||||||||||||||||||
Net income | 1,041 | 13 | 1,054 | |||||||||||||||||||||||||||||||||||||||||
Dividends, dividend equivalents | ||||||||||||||||||||||||||||||||||||||||||||
and distributions (e) | (576) | (13) | (589) | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive | ||||||||||||||||||||||||||||||||||||||||||||
income (loss) | (21) | (21) | ||||||||||||||||||||||||||||||||||||||||||
September 30, 2011 | 577,844 | $ | 6 | $ | 6,795 | $ | 4,547 | $ | (500) | $ | 268 | $ | 11,116 | |||||||||||||||||||||||||||||||
September 30, 2012 | September 30, 2012 | 580,970 | $ | 6 | $ | 6,912 | $ | 5,335 | $ | (1,039) | $ | 18 | $ | 11,232 |
(a) | Shares in thousands. Each share entitles the holder to one vote on any question presented at any shareowners' meeting. |
(b) | See Note 18 for disclosure of balances of each component of AOCI. |
(c) | Each period includes shares of common stock issued through various stock and incentive compensation plans. The 2013 periods include the April and July issuances of shares of common stock. See Note 7 for additional information. |
(d) | See Note 7 for additional information. |
(e) | The three and nine months ended September 30, |
"Earnings reinvested" includes dividends and dividend equivalents on PPL |
PPL Energy Supply, LLC and Subsidiaries | ||||||||||||||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||||||||
(Millions of Dollars) | (Millions of Dollars) | (Millions of Dollars) | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Operating Revenues | Operating Revenues | Operating Revenues | ||||||||||||||||||||||||||||
Wholesale energy marketing | Wholesale energy marketing | |||||||||||||||||||||||||||||
Realized | $ | 1,076 | $ | 907 | $ | 3,367 | $ | 2,677 | Realized | $ | 980 | $ | 1,076 | $ | 2,767 | $ | 3,367 | |||||||||||||
Unrealized economic activity (Note 14) | (716) | 216 | (322) | 229 | Unrealized economic activity (Note 14) | (49) | (716) | (281) | (322) | |||||||||||||||||||||
Wholesale energy marketing to affiliate | 23 | 5 | 61 | 15 | Wholesale energy marketing to affiliate | 11 | 23 | 37 | 61 | |||||||||||||||||||||
Unregulated retail electric and gas | 219 | 190 | 623 | 518 | Unregulated retail electric and gas | 266 | 219 | 761 | 623 | |||||||||||||||||||||
Net energy trading margins | (11) | (7) | 7 | 14 | Net energy trading margins | 12 | (11) | 1 | 7 | |||||||||||||||||||||
Energy-related businesses | 128 | 130 | 336 | 354 | Energy-related businesses | 143 | 128 | 378 | 336 | |||||||||||||||||||||
Total Operating Revenues | 719 | 1,441 | 4,072 | 3,807 | Total Operating Revenues | 1,363 | 719 | 3,663 | 4,072 | |||||||||||||||||||||
Operating Expenses | Operating Expenses | Operating Expenses | ||||||||||||||||||||||||||||
Operation | Operation | |||||||||||||||||||||||||||||
Fuel | 321 | 358 | 728 | 826 | Fuel | 258 | 321 | 780 | 728 | |||||||||||||||||||||
Energy purchases | Energy purchases | |||||||||||||||||||||||||||||
Realized | 421 | 161 | 1,715 | 701 | Realized | 425 | 421 | 1,277 | 1,715 | |||||||||||||||||||||
Unrealized economic activity (Note 14) | (569) | 176 | (420) | 49 | Unrealized economic activity (Note 14) | (37) | (569) | (192) | (420) | |||||||||||||||||||||
Energy purchases from affiliate | 1 | 1 | 2 | 3 | Energy purchases from affiliate | 1 | 1 | 3 | 2 | |||||||||||||||||||||
Other operation and maintenance | 220 | 208 | 769 | 741 | Other operation and maintenance | 243 | 220 | 748 | 769 | |||||||||||||||||||||
Depreciation | 73 | 62 | 206 | 181 | Depreciation | 80 | 73 | 237 | 206 | |||||||||||||||||||||
Taxes, other than income | 18 | 18 | 53 | 50 | Taxes, other than income | 18 | 18 | 51 | 53 | |||||||||||||||||||||
Energy-related businesses | 125 | 130 | 326 | 350 | Energy-related businesses | 138 | 125 | 366 | 326 | |||||||||||||||||||||
Total Operating Expenses | 610 | 1,114 | 3,379 | 2,901 | Total Operating Expenses | 1,126 | 610 | 3,270 | 3,379 | |||||||||||||||||||||
Operating Income | Operating Income | 109 | 327 | 693 | 906 | Operating Income | 237 | 109 | 393 | 693 | ||||||||||||||||||||
Other Income (Expense) - net | Other Income (Expense) - net | 4 | 2 | 14 | 20 | Other Income (Expense) - net | 2 | 5 | 18 | 16 | ||||||||||||||||||||
Other-Than-Temporary Impairments | Other-Than-Temporary Impairments | 5 | 1 | 6 | Other-Than-Temporary Impairments | 1 | 1 | 1 | ||||||||||||||||||||||
Interest Income from Affiliates | 1 | 2 | 2 | 6 | ||||||||||||||||||||||||||
Interest Expense | Interest Expense | 43 | 52 | 123 | 150 | Interest Expense | 39 | 43 | 131 | 123 | ||||||||||||||||||||
Income from Continuing Operations Before Income Taxes | 71 | 274 | 585 | 776 | ||||||||||||||||||||||||||
Income Before Income Taxes | Income Before Income Taxes | 199 | 71 | 279 | 585 | |||||||||||||||||||||||||
Income Taxes | Income Taxes | 16 | 104 | 202 | 305 | Income Taxes | 74 | 16 | 106 | 202 | ||||||||||||||||||||
Income from Continuing Operations After Income Taxes | 55 | 170 | 383 | 471 | ||||||||||||||||||||||||||
Income (Loss) from Discontinued Operations (net of income taxes) | 2 | |||||||||||||||||||||||||||||
Net Income | Net Income | 55 | 170 | 383 | 473 | Net Income | 125 | 55 | 173 | 383 | ||||||||||||||||||||
Net Income Attributable to Noncontrolling Interests | Net Income Attributable to Noncontrolling Interests | 1 | 1 | 1 | 1 | Net Income Attributable to Noncontrolling Interests | 1 | 1 | 1 | 1 | ||||||||||||||||||||
Net Income Attributable to PPL Energy Supply Member | Net Income Attributable to PPL Energy Supply Member | $ | 54 | $ | 169 | $ | 382 | $ | 472 | Net Income Attributable to PPL Energy Supply Member | $ | 124 | $ | 54 | $ | 172 | $ | 382 | ||||||||||||
Amounts Attributable to PPL Energy Supply Member: | ||||||||||||||||||||||||||||||
Income from Continuing Operations After Income Taxes | $ | 54 | $ | 169 | $ | 382 | $ | 470 | ||||||||||||||||||||||
Income (Loss) from Discontinued Operations (net of income taxes) | 2 | |||||||||||||||||||||||||||||
Net Income | $ | 54 | $ | 169 | $ | 382 | $ | 472 | ||||||||||||||||||||||
The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements. |
PPL Energy Supply, LLC and Subsidiaries | (Unaudited) | (Millions of Dollars) | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Net income | Net income | $ | 55 | $ | 170 | $ | 383 | $ | 473 | Net income | $ | 125 | $ | 55 | $ | 173 | $ | 383 | ||||||||||||
Other comprehensive income (loss): | Other comprehensive income (loss): | Other comprehensive income (loss): | ||||||||||||||||||||||||||||
Amounts arising during the period - gains (losses), net of tax (expense) | Amounts arising during the period - gains (losses), net of tax (expense) | Amounts arising during the period - gains (losses), net of tax (expense) | ||||||||||||||||||||||||||||
benefit: | benefit: | |||||||||||||||||||||||||||||
Available-for-sale securities, net of tax of ($14), $28, ($34), $15 | 13 | (26) | 28 | (13) | Available-for-sale securities, net of tax of ($15), ($14), ($42), ($32) | 15 | 13 | 40 | 30 | |||||||||||||||||||||
Qualifying derivatives, net of tax of ($1), ($27), ($53), ($48) | (1) | 39 | 46 | 68 | Qualifying derivatives, net of tax of $0, ($1), $0, ($41) | (1) | 58 | |||||||||||||||||||||||
Defined benefit plans: | ||||||||||||||||||||||||||||||
Net actuarial gain (loss), net of tax of $0, $0, $0, $0 | 1 | 1 | ||||||||||||||||||||||||||||
Reclassifications to net income - (gains) losses, net of tax expense | ||||||||||||||||||||||||||||||
(benefit): | ||||||||||||||||||||||||||||||
Available-for-sale securities, net of tax of $0, $0, $3, $5 | 2 | (4) | (6) | |||||||||||||||||||||||||||
Reclassifications from AOCI - (gains) losses, net of tax expense | Reclassifications from AOCI - (gains) losses, net of tax expense | |||||||||||||||||||||||||||||
Qualifying derivatives, net of tax of $62, $50, $230, $153 | (92) | (73) | (339) | (220) | (benefit): | |||||||||||||||||||||||||
Equity investee's other comprehensive (income) loss, net of | Available-for-sale securities, net of tax of $1, $0, $2, $1 | (2) | (6) | |||||||||||||||||||||||||||
tax of $0, $0, $0, $0 | 3 | Qualifying derivatives, net of tax of $19, $62, $63, $218 | (29) | (92) | (96) | (351) | ||||||||||||||||||||||||
Defined benefit plans: | Defined benefit plans: | |||||||||||||||||||||||||||||
Prior service costs, net of tax of ($1), ($1), ($2), ($3) | 1 | 1 | 4 | 3 | Prior service costs, net of tax of ($1), ($1), ($2), ($2) | 1 | 1 | 3 | 4 | |||||||||||||||||||||
Net actuarial loss, net of tax of ($1), ($1), ($1), ($2) | 2 | 1 | 8 | 3 | Net actuarial loss, net of tax of ($2), ($1), ($7), ($1) | 3 | 2 | 11 | 8 | |||||||||||||||||||||
Total other comprehensive income (loss) attributable to | Total other comprehensive income (loss) attributable to | Total other comprehensive income (loss) attributable to | ||||||||||||||||||||||||||||
PPL Energy Supply Member | (77) | (55) | (257) | (161) | PPL Energy Supply Member | (10) | (77) | (44) | (257) | |||||||||||||||||||||
Comprehensive income (loss) | Comprehensive income (loss) | (22) | 115 | 126 | 312 | Comprehensive income (loss) | 115 | (22) | 129 | 126 | ||||||||||||||||||||
Comprehensive income attributable to noncontrolling interests | 1 | 1 | 1 | 1 | Comprehensive income attributable to noncontrolling interests | 1 | 1 | 1 | 1 | |||||||||||||||||||||
Comprehensive income (loss) attributable to PPL Energy | Comprehensive income (loss) attributable to PPL Energy | Comprehensive income (loss) attributable to PPL Energy | ||||||||||||||||||||||||||||
Supply Member | $ | (23) | $ | 114 | $ | 125 | $ | 311 | Supply Member | $ | 114 | $ | (23) | $ | 128 | $ | 125 | |||||||||||||
The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements. |
PPL Energy Supply, LLC and Subsidiaries | (Unaudited) | (Millions of Dollars) | ||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2012 | 2011 | 2013 | 2012 | |||||||||||||||
Cash Flows from Operating Activities | Cash Flows from Operating Activities | Cash Flows from Operating Activities | ||||||||||||||||
Net income | $ | 173 | $ | 383 | ||||||||||||||
Net income | $ | 383 | $ | 473 | Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | Depreciation | 237 | 206 | |||||||||||||||
Depreciation | 206 | 182 | Amortization | 111 | 93 | |||||||||||||
Amortization | 93 | 96 | Defined benefit plans - expense | 39 | 33 | |||||||||||||
Defined benefit plans - expense | 33 | 26 | Deferred income taxes and investment tax credits | 112 | 132 | |||||||||||||
Deferred income taxes and investment tax credits | 132 | 226 | Unrealized (gains) losses on derivatives, and other hedging activities | 98 | (37) | |||||||||||||
Unrealized (gains) losses on derivatives, and other hedging activities | (37) | (155) | Other | 32 | 33 | |||||||||||||
Other | 33 | 42 | Change in current assets and current liabilities | |||||||||||||||
Change in current assets and current liabilities | Accounts receivable | 71 | (26) | |||||||||||||||
Accounts receivable | (26) | (43) | Accounts payable | (131) | (110) | |||||||||||||
Accounts payable | (110) | (163) | Unbilled revenues | 135 | 78 | |||||||||||||
Unbilled revenues | 78 | 116 | Fuel, materials and supplies | (18) | (20) | |||||||||||||
Counterparty collateral | 12 | (273) | Counterparty collateral | (77) | 12 | |||||||||||||
Other | (48) | 92 | Other | (32) | (28) | |||||||||||||
Other operating activities | Other operating activities | |||||||||||||||||
Defined benefit plans - funding | (70) | (136) | Defined benefit plans - funding | (107) | (70) | |||||||||||||
Other assets | (16) | (31) | Other assets | (32) | (16) | |||||||||||||
Other liabilities | 11 | (12) | Other liabilities | (28) | 11 | |||||||||||||
Net cash provided by operating activities | 674 | 440 | Net cash provided by operating activities | 583 | 674 | |||||||||||||
Cash Flows from Investing Activities | Cash Flows from Investing Activities | Cash Flows from Investing Activities | ||||||||||||||||
Expenditures for property, plant and equipment | (460) | (499) | Expenditures for property, plant and equipment | (341) | (460) | |||||||||||||
Proceeds from the sale of certain non-core generation facilities | 381 | Ironwood Acquisition, net of cash acquired | (84) | |||||||||||||||
Ironwood Acquisition, net of cash acquired | (84) | Expenditures for intangible assets | (33) | (36) | ||||||||||||||
Expenditures for intangible assets | (36) | (45) | Purchases of nuclear plant decommissioning trust investments | (102) | (112) | |||||||||||||
Purchases of nuclear plant decommissioning trust investments | (112) | (144) | Proceeds from the sale of nuclear plant decommissioning trust investments | 92 | 102 | |||||||||||||
Proceeds from the sale of nuclear plant decommissioning trust investments | 102 | 134 | Net (increase) decrease in notes receivable from affiliates | 198 | ||||||||||||||
Net (increase) decrease in notes receivable from affiliates | 198 | Net (increase) decrease in restricted cash and cash equivalents | 9 | 70 | ||||||||||||||
Net (increase) decrease in restricted cash and cash equivalents | 70 | (36) | Other investing activities | 24 | 14 | |||||||||||||
Other investing activities | 14 | 7 | Net cash provided by (used in) investing activities | (351) | (308) | |||||||||||||
Net cash provided by (used in) investing activities | (308) | (202) | ||||||||||||||||
Cash Flows from Financing Activities | Cash Flows from Financing Activities | Cash Flows from Financing Activities | ||||||||||||||||
Retirement of long-term debt | (6) | (250) | ||||||||||||||||
Contributions from member | 472 | 361 | Retirement of long-term debt | (309) | (6) | |||||||||||||
Distributions to member | (733) | (209) | Contributions from member | 980 | 472 | |||||||||||||
Cash included in net assets of subsidiary distributed to member | (325) | Distributions to member | (408) | (733) | ||||||||||||||
Net increase (decrease) in short-term debt | (45) | (100) | Net increase (decrease) in short-term debt | (356) | (45) | |||||||||||||
Other financing activities | (1) | (1) | Other financing activities | (1) | (1) | |||||||||||||
Net cash provided by (used in) financing activities | (313) | (524) | Net cash provided by (used in) financing activities | (94) | (313) | |||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | Net Increase (Decrease) in Cash and Cash Equivalents | 53 | (286) | Net Increase (Decrease) in Cash and Cash Equivalents | 138 | 53 | ||||||||||||
Cash and Cash Equivalents at Beginning of Period | 379 | 661 | Cash and Cash Equivalents at Beginning of Period | 413 | 379 | |||||||||||||
Cash and Cash Equivalents at End of Period | $ | 432 | $ | 375 | Cash and Cash Equivalents at End of Period | $ | 551 | $ | 432 | |||||||||
The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements. |
PPL Energy Supply, LLC and Subsidiaries | (Unaudited) | (Millions of Dollars) | ||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||
2012 | 2011 | 2013 | 2012 | |||||||||||||||
Assets | Assets | Assets | ||||||||||||||||
Current Assets | Current Assets | Current Assets | ||||||||||||||||
Cash and cash equivalents | $ | 432 | $ | 379 | ||||||||||||||
Restricted cash and cash equivalents | 80 | 145 | Cash and cash equivalents | $ | 551 | $ | 413 | |||||||||||
Accounts receivable (less reserve: 2012, $23; 2011, $15) | Restricted cash and cash equivalents | 37 | 46 | |||||||||||||||
Customer | 190 | 169 | Accounts receivable (less reserve: 2013, $20; 2012, $23) | |||||||||||||||
Other | 25 | 31 | Customer | 203 | 183 | |||||||||||||
Accounts receivable from affiliates | 101 | 89 | Other | 104 | 31 | |||||||||||||
Unbilled revenues | 324 | 402 | Accounts receivable from affiliates | 37 | 125 | |||||||||||||
Notes receivable from affiliates | 198 | Unbilled revenues | 234 | 369 | ||||||||||||||
Fuel, materials and supplies | 318 | 298 | Fuel, materials and supplies | 345 | 327 | |||||||||||||
Prepayments | 20 | 14 | Prepayments | 22 | 15 | |||||||||||||
Price risk management assets | 1,767 | 2,527 | Price risk management assets | 961 | 1,511 | |||||||||||||
Other current assets | 6 | 11 | Other current assets | 22 | 10 | |||||||||||||
Total Current Assets | 3,263 | 4,263 | Total Current Assets | 2,516 | 3,030 | |||||||||||||
Investments | Investments | Investments | ||||||||||||||||
Nuclear plant decommissioning trust funds | 711 | 640 | Nuclear plant decommissioning trust funds | 804 | 712 | |||||||||||||
Other investments | 43 | 40 | Other investments | 41 | 41 | |||||||||||||
Total Investments | 754 | 680 | Total Investments | 845 | 753 | |||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment | Property, Plant and Equipment | ||||||||||||||||
Non-regulated property, plant and equipment | Non-regulated property, plant and equipment | |||||||||||||||||
Generation | 11,199 | 10,517 | Generation | 11,663 | 11,305 | |||||||||||||
Nuclear fuel | 524 | 457 | Nuclear fuel | 590 | 524 | |||||||||||||
Other | 260 | 245 | Other | 307 | 294 | |||||||||||||
Less: accumulated depreciation - non-regulated property, plant and equipment | 5,750 | 5,573 | Less: accumulated depreciation - non-regulated property, plant and equipment | 6,025 | 5,817 | |||||||||||||
Non-regulated property, plant and equipment, net | 6,233 | 5,646 | Non-regulated property, plant and equipment, net | 6,535 | 6,306 | |||||||||||||
Construction work in progress | 935 | 840 | Construction work in progress | 739 | 987 | |||||||||||||
Property, Plant and Equipment, net (a) | 7,168 | 6,486 | Property, Plant and Equipment, net (a) | 7,274 | 7,293 | |||||||||||||
Other Noncurrent Assets | Other Noncurrent Assets | Other Noncurrent Assets | ||||||||||||||||
Goodwill | 86 | 86 | Goodwill | 86 | 86 | |||||||||||||
Other intangibles (a) | 249 | 386 | Other intangibles | 262 | 252 | |||||||||||||
Price risk management assets | 837 | 896 | Price risk management assets | 519 | 557 | |||||||||||||
Other noncurrent assets | 379 | 382 | Other noncurrent assets | 362 | 404 | |||||||||||||
Total Other Noncurrent Assets | 1,551 | 1,750 | Total Other Noncurrent Assets | 1,229 | 1,299 | |||||||||||||
Total Assets | Total Assets | $ | 12,736 | $ | 13,179 | Total Assets | $ | 11,864 | $ | 12,375 |
(a) | At September 30, |
CONDENSED CONSOLIDATED BALANCE SHEETS | PPL Energy Supply, LLC and Subsidiaries | (Unaudited) | (Millions of Dollars) | |||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||
2012 | 2011 | 2013 | 2012 | |||||||||||||||
Liabilities and Equity | Liabilities and Equity | Liabilities and Equity | ||||||||||||||||
Current Liabilities | Current Liabilities | Current Liabilities | ||||||||||||||||
Short-term debt | $ | 355 | $ | 400 | ||||||||||||||
Long-term debt due within one year | 313 | Short-term debt | $ | 356 | ||||||||||||||
Accounts payable | 384 | 472 | Long-term debt due within one year | $ | 741 | 751 | ||||||||||||
Accounts payable to affiliates | 1 | 14 | Accounts payable | 328 | 438 | |||||||||||||
Taxes | 62 | 90 | Accounts payable to affiliates | 3 | 31 | |||||||||||||
Interest | 55 | 30 | Taxes | 19 | 62 | |||||||||||||
Price risk management liabilities | 1,141 | 1,560 | Interest | 53 | 31 | |||||||||||||
Counterparty collateral | 160 | 148 | Price risk management liabilities | 773 | 1,010 | |||||||||||||
Deferred income taxes | 190 | 315 | Deferred income taxes | 45 | 158 | |||||||||||||
Other current liabilities | 209 | 196 | Other current liabilities | 264 | 319 | |||||||||||||
Total Current Liabilities | 2,870 | 3,225 | Total Current Liabilities | 2,226 | 3,156 | |||||||||||||
Long-term Debt | Long-term Debt | 2,962 | 3,024 | Long-term Debt | 2,221 | 2,521 | ||||||||||||
Deferred Credits and Other Noncurrent Liabilities | Deferred Credits and Other Noncurrent Liabilities | Deferred Credits and Other Noncurrent Liabilities | ||||||||||||||||
Deferred income taxes | 1,301 | 1,223 | Deferred income taxes | 1,429 | 1,232 | |||||||||||||
Investment tax credits | 171 | 136 | Investment tax credits | 207 | 186 | |||||||||||||
Price risk management liabilities | 806 | 785 | Price risk management liabilities | 462 | 556 | |||||||||||||
Accrued pension obligations | 161 | 214 | Accrued pension obligations | 203 | 293 | |||||||||||||
Asset retirement obligations | 360 | 349 | Asset retirement obligations | 388 | 365 | |||||||||||||
Other deferred credits and noncurrent liabilities | 204 | 186 | Other deferred credits and noncurrent liabilities | 180 | 218 | |||||||||||||
Total Deferred Credits and Other Noncurrent Liabilities | 3,003 | 2,893 | Total Deferred Credits and Other Noncurrent Liabilities | 2,869 | 2,850 | |||||||||||||
�� | ||||||||||||||||||
Commitments and Contingent Liabilities (Note 10) | Commitments and Contingent Liabilities (Note 10) | Commitments and Contingent Liabilities (Note 10) | ||||||||||||||||
Equity | Equity | Equity | ||||||||||||||||
Member's equity | 3,883 | 4,019 | Member's equity | 4,530 | 3,830 | |||||||||||||
Noncontrolling interests | 18 | 18 | Noncontrolling interests | 18 | 18 | |||||||||||||
Total Equity | 3,901 | 4,037 | Total Equity | 4,548 | 3,848 | |||||||||||||
Total Liabilities and Equity | Total Liabilities and Equity | $ | 12,736 | $ | 13,179 | Total Liabilities and Equity | $ | 11,864 | $ | 12,375 | ||||||||
The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements. |
PPL Energy Supply, LLC and Subsidiaries | (Unaudited) | (Millions of Dollars) | ||||||||||||||||
Non- | Non- | |||||||||||||||||
Member's | controlling | Member's | controlling | |||||||||||||||
equity | interests | Total | equity | interests | Total | |||||||||||||
June 30, 2013 (a) | $ | 3,541 | $ | 18 | $ | 3,559 | ||||||||||||
Net income | 124 | 1 | 125 | |||||||||||||||
Other comprehensive income (loss) | (10) | (10) | ||||||||||||||||
Contributions from member | 875 | 875 | ||||||||||||||||
Distributions | (1) | (1) | ||||||||||||||||
September 30, 2013 (a) | $ | 4,530 | $ | 18 | $ | 4,548 | ||||||||||||
December 31, 2012 (a) | $ | 3,830 | $ | 18 | $ | 3,848 | ||||||||||||
Net income | 172 | 1 | 173 | |||||||||||||||
Other comprehensive income (loss) | (44) | (44) | ||||||||||||||||
Contributions from member | 980 | 980 | ||||||||||||||||
Distributions | (408) | (1) | (409) | |||||||||||||||
September 30, 2013 (a) | $ | 4,530 | $ | 18 | $ | 4,548 | ||||||||||||
June 30, 2012 | $ | 3,982 | $ | 18 | $ | 4,000 | $ | 3,982 | $ | 18 | $ | 4,000 | ||||||
Net income | 54 | 1 | 55 | 54 | 1 | 55 | ||||||||||||
Other comprehensive income (loss) | (77) | (77) | (77) | (77) | ||||||||||||||
Distributions | (76) | (1) | (77) | (76) | (1) | (77) | ||||||||||||
September 30, 2012 | $ | 3,883 | $ | 18 | $ | 3,901 | $ | 3,883 | $ | 18 | $ | 3,901 | ||||||
December 31, 2011 | $ | 4,019 | $ | 18 | $ | 4,037 | $ | 4,019 | $ | 18 | $ | 4,037 | ||||||
Net income | 382 | 1 | 383 | 382 | 1 | 383 | ||||||||||||
Other comprehensive income (loss) | (257) | (257) | (257) | (257) | ||||||||||||||
Contributions from member | 472 | 472 | 472 | 472 | ||||||||||||||
Distributions | (733) | (1) | (734) | (733) | (1) | (734) | ||||||||||||
September 30, 2012 | $ | 3,883 | $ | 18 | $ | 3,901 | $ | 3,883 | $ | 18 | $ | 3,901 | ||||||
June 30, 2011 | $ | 3,434 | $ | 18 | $ | 3,452 | ||||||||||||
Net income | 169 | 1 | 170 | |||||||||||||||
Other comprehensive income (loss) | (55) | (55) | ||||||||||||||||
Contributions from member | 193 | 193 | ||||||||||||||||
Distributions | (75) | (1) | (76) | |||||||||||||||
September 30, 2011 | $ | 3,666 | $ | 18 | $ | 3,684 | ||||||||||||
December 31, 2010 | $ | 4,491 | $ | 18 | $ | 4,509 | ||||||||||||
Net income | 472 | 1 | 473 | |||||||||||||||
Other comprehensive income (loss) | (161) | (161) | ||||||||||||||||
Contributions from member | 361 | 361 | ||||||||||||||||
Distributions | (209) | (1) | (210) | |||||||||||||||
Distribution of membership interest in PPL Global (a) | (1,288) | (1,288) | ||||||||||||||||
September 30, 2011 | $ | 3,666 | $ | 18 | $ | 3,684 |
(a) |
PPL Electric Utilities Corporation and Subsidiaries | ||||||||||||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||||||
(Millions of Dollars) | (Millions of Dollars) | (Millions of Dollars) | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Operating Revenues | Operating Revenues | Operating Revenues | ||||||||||||||||||||||||||
Retail electric | $ | 443 | $ | 454 | $ | 1,303 | $ | 1,444 | Retail electric | $ | 463 | $ | 443 | $ | 1,388 | $ | 1,303 | |||||||||||
Electric revenue from affiliate | 1 | 1 | 3 | 9 | Electric revenue from affiliate | 1 | 1 | 3 | 3 | |||||||||||||||||||
Total Operating Revenues | 444 | 455 | 1,306 | 1,453 | Total Operating Revenues | 464 | 444 | 1,391 | 1,306 | |||||||||||||||||||
Operating Expenses | Operating Expenses | Operating Expenses | ||||||||||||||||||||||||||
Operation | Operation | |||||||||||||||||||||||||||
Energy purchases | 137 | 171 | 410 | 591 | Energy purchases | 144 | 137 | 436 | 410 | |||||||||||||||||||
Energy purchases from affiliate | 23 | 5 | 61 | 15 | Energy purchases from affiliate | 11 | 23 | 37 | 61 | |||||||||||||||||||
Other operation and maintenance | 148 | 146 | 431 | 402 | Other operation and maintenance | 134 | 148 | 391 | 431 | |||||||||||||||||||
Depreciation | 41 | 38 | 119 | 108 | Depreciation | 45 | 41 | 132 | 119 | |||||||||||||||||||
Taxes, other than income | 24 | 26 | 72 | 83 | Taxes, other than income | 25 | 24 | 77 | 72 | |||||||||||||||||||
Total Operating Expenses | 373 | 386 | 1,093 | 1,199 | Total Operating Expenses | 359 | 373 | 1,073 | 1,093 | |||||||||||||||||||
Operating Income | Operating Income | 71 | 69 | 213 | 254 | Operating Income | 105 | 71 | 318 | 213 | ||||||||||||||||||
Other Income (Expense) - net | Other Income (Expense) - net | 3 | 3 | 6 | 4 | Other Income (Expense) - net | 2 | 3 | 5 | 6 | ||||||||||||||||||
Interest Expense | Interest Expense | 25 | 26 | 73 | 74 | Interest Expense | 30 | 25 | 80 | 73 | ||||||||||||||||||
Income Before Income Taxes | Income Before Income Taxes | 49 | 46 | 146 | 184 | Income Before Income Taxes | 77 | 49 | 243 | 146 | ||||||||||||||||||
Income Taxes | Income Taxes | 16 | 14 | 47 | 56 | Income Taxes | 26 | 16 | 83 | 47 | ||||||||||||||||||
Net Income (a) | Net Income (a) | 33 | 32 | 99 | 128 | Net Income (a) | 51 | 33 | 160 | 99 | ||||||||||||||||||
Distributions on Preference Stock | Distributions on Preference Stock | 4 | 4 | 12 | Distributions on Preference Stock | 4 | ||||||||||||||||||||||
Net Income Available to PPL | Net Income Available to PPL | $ | 33 | $ | 28 | $ | 95 | $ | 116 | Net Income Available to PPL | $ | 51 | $ | 33 | $ | 160 | $ | 95 |
(a) | Net income approximates comprehensive income. |
The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements. |
PPL Electric Utilities Corporation and Subsidiaries | (Unaudited) | (Millions of Dollars) | ||||||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
2012 | 2011 | 2013 | 2012 | |||||||||||||||
Cash Flows from Operating Activities | Cash Flows from Operating Activities | Cash Flows from Operating Activities | ||||||||||||||||
Net income | $ | 99 | $ | 128 | ||||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||||||||||||||||||
Depreciation | 119 | 108 | Net income | $ | 160 | $ | 99 | |||||||||||
Amortization | 13 | 5 | Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||||
Defined benefit plans - expense | 17 | 13 | Depreciation | 132 | 119 | |||||||||||||
Deferred income taxes and investment tax credits | 72 | 9 | Amortization | 13 | 13 | |||||||||||||
Other | 3 | 2 | Defined benefit plans - expense | 16 | 17 | |||||||||||||
Change in current assets and current liabilities | Deferred income taxes and investment tax credits | 103 | 72 | |||||||||||||||
Accounts receivable | 48 | (5) | Other | 2 | 3 | |||||||||||||
Accounts payable | (43) | (105) | Change in current assets and current liabilities | |||||||||||||||
Unbilled revenues | 18 | 53 | Accounts receivable | (14) | 48 | |||||||||||||
Prepayments | 2 | 58 | Accounts payable | (51) | (43) | |||||||||||||
Regulatory assets and liabilities | (1) | 95 | Unbilled revenues | 34 | 18 | |||||||||||||
Taxes | 19 | Taxes payable | 24 | |||||||||||||||
Other | (5) | (7) | Other | (19) | (4) | |||||||||||||
Other operating activities | Other operating activities | |||||||||||||||||
Defined benefit plans - funding | (54) | (102) | Defined benefit plans - funding | (88) | (54) | |||||||||||||
Other assets | (1) | Other assets | 6 | |||||||||||||||
Other liabilities | (27) | (9) | Other liabilities | 9 | (27) | |||||||||||||
Net cash provided by (used in) operating activities | 261 | 261 | Net cash provided by operating activities | 327 | 261 | |||||||||||||
Cash Flows from Investing Activities | Cash Flows from Investing Activities | Cash Flows from Investing Activities | ||||||||||||||||
Expenditures for property, plant and equipment | (407) | (357) | Expenditures for property, plant and equipment | (688) | (407) | |||||||||||||
Net (increase) decrease in notes receivable from affiliates | (210) | Net (increase) decrease in notes receivable from affiliates | (210) | |||||||||||||||
Other investing activities | 3 | 4 | Other investing activities | (9) | 3 | |||||||||||||
Net cash provided by (used in) investing activities | (614) | (353) | Net cash provided by (used in) investing activities | (697) | (614) | |||||||||||||
Cash Flows from Financing Activities | Cash Flows from Financing Activities | Cash Flows from Financing Activities | ||||||||||||||||
Issuance of long-term debt | 249 | 645 | Issuance of long-term debt | 348 | 249 | |||||||||||||
Retirement of long-term debt | (458) | Contributions from parent | 205 | 150 | ||||||||||||||
Contributions from parent | 150 | 56 | Redemption of preference stock | (250) | ||||||||||||||
Redemption of preference stock | (250) | Payment of common stock dividends to parent | (94) | (75) | ||||||||||||||
Payment of common stock dividends to parent | (75) | (76) | Other financing activities | (4) | (10) | |||||||||||||
Other financing activities | (10) | (18) | Net cash provided by (used in) financing activities | 455 | 64 | |||||||||||||
Net cash provided by (used in) financing activities | 64 | 149 | ||||||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | Net Increase (Decrease) in Cash and Cash Equivalents | (289) | 57 | Net Increase (Decrease) in Cash and Cash Equivalents | 85 | (289) | ||||||||||||
Cash and Cash Equivalents at Beginning of Period | Cash and Cash Equivalents at Beginning of Period | 320 | 204 | Cash and Cash Equivalents at Beginning of Period | 140 | 320 | ||||||||||||
Cash and Cash Equivalents at End of Period | Cash and Cash Equivalents at End of Period | $ | 31 | $ | 261 | Cash and Cash Equivalents at End of Period | $ | 225 | $ | 31 | ||||||||
The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements. |
PPL Electric Utilities Corporation and Subsidiaries | (Unaudited) | (Millions of Dollars, shares in thousands) | ||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||
2012 | 2011 | 2013 | 2012 | |||||||||||||||
Assets | Assets | Assets | ||||||||||||||||
Current Assets | Current Assets | Current Assets | ||||||||||||||||
Cash and cash equivalents | $ | 31 | $ | 320 | Cash and cash equivalents | $ | 225 | $ | 140 | |||||||||
Accounts receivable (less reserve: 2012, $17; 2011, $17) | Accounts receivable (less reserve: 2013, $20; 2012, $18) | |||||||||||||||||
Customer | 259 | 271 | Customer | 273 | 249 | |||||||||||||
Other | 6 | 9 | Other | 14 | 5 | |||||||||||||
Accounts receivable from affiliates | 3 | 35 | Accounts receivable from affiliates | 4 | 29 | |||||||||||||
Notes receivable from affiliates | 210 | Unbilled revenues | 76 | 110 | ||||||||||||||
Unbilled revenues | 80 | 98 | Materials and supplies | 35 | 39 | |||||||||||||
Materials and supplies | 38 | 42 | Prepayments | 67 | 76 | |||||||||||||
Prepayments | 76 | 78 | Deferred income taxes | 46 | 45 | |||||||||||||
Other current assets | 30 | 30 | Other current assets | 18 | 4 | |||||||||||||
Total Current Assets | 733 | 883 | Total Current Assets | 758 | 697 | |||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment | Property, Plant and Equipment | ||||||||||||||||
Regulated utility plant | 6,104 | 5,830 | Regulated utility plant | 6,771 | 6,286 | |||||||||||||
Less: accumulated depreciation - regulated utility plant | 2,300 | 2,217 | Less: accumulated depreciation - regulated utility plant | 2,421 | 2,316 | |||||||||||||
Regulated utility plant, net | 3,804 | 3,613 | Regulated utility plant, net | 4,350 | 3,970 | |||||||||||||
Other, net | 2 | 2 | Other, net | 2 | 2 | |||||||||||||
Construction work in progress | 348 | 242 | Construction work in progress | 519 | 370 | |||||||||||||
Property, Plant and Equipment, net | 4,154 | 3,857 | Property, Plant and Equipment, net | 4,871 | 4,342 | |||||||||||||
Other Noncurrent Assets | Other Noncurrent Assets | Other Noncurrent Assets | ||||||||||||||||
Regulatory assets | 733 | 729 | Regulatory assets | 857 | 853 | |||||||||||||
Intangibles | 164 | 155 | Intangibles | 208 | 171 | |||||||||||||
Other noncurrent assets | 82 | 81 | Other noncurrent assets | 35 | 55 | |||||||||||||
Total Other Noncurrent Assets | 979 | 965 | Total Other Noncurrent Assets | 1,100 | 1,079 | |||||||||||||
Total Assets | Total Assets | $ | 5,866 | $ | 5,705 | Total Assets | $ | 6,729 | $ | 6,118 | ||||||||
The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements. |
CONDENSED CONSOLIDATED BALANCE SHEETS | PPL Electric Utilities Corporation and Subsidiaries | (Unaudited) | (Millions of Dollars, shares in thousands) | |||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||
2012 | 2011 | 2013 | 2012 | |||||||||||||||
Liabilities and Equity | Liabilities and Equity | Liabilities and Equity | ||||||||||||||||
Current Liabilities | Current Liabilities | Current Liabilities | ||||||||||||||||
Accounts payable | $ | 173 | $ | 171 | Long term debt due within one year | $ | 10 | |||||||||||
Accounts payable to affiliates | 57 | 64 | Accounts payable | 244 | $ | 259 | ||||||||||||
Interest | 19 | 24 | Accounts payable to affiliates | 46 | 63 | |||||||||||||
Regulatory liabilities | 52 | 53 | Taxes | 36 | 12 | |||||||||||||
Customer deposits and prepayments | 26 | 39 | Interest | 23 | 26 | |||||||||||||
Vacation | 23 | 22 | Regulatory liabilities | 51 | 52 | |||||||||||||
Other current liabilities | 50 | 47 | Other current liabilities | 94 | 93 | |||||||||||||
Total Current Liabilities | 400 | 420 | Total Current Liabilities | 504 | 505 | |||||||||||||
Long-term Debt | Long-term Debt | 1,967 | 1,718 | Long-term Debt | 2,305 | 1,967 | ||||||||||||
Deferred Credits and Other Noncurrent Liabilities | Deferred Credits and Other Noncurrent Liabilities | Deferred Credits and Other Noncurrent Liabilities | ||||||||||||||||
Deferred income taxes | 1,187 | 1,115 | Deferred income taxes | 1,334 | 1,233 | |||||||||||||
Investment tax credits | 4 | 5 | Investment tax credits | 3 | 3 | |||||||||||||
Accrued pension obligations | 142 | 186 | Accrued pension obligations | 157 | 237 | |||||||||||||
Regulatory liabilities | 12 | 7 | Regulatory liabilities | 14 | 8 | |||||||||||||
Other deferred credits and noncurrent liabilities | 109 | 129 | Other deferred credits and noncurrent liabilities | 79 | 103 | |||||||||||||
Total Deferred Credits and Other Noncurrent Liabilities | 1,454 | 1,442 | Total Deferred Credits and Other Noncurrent Liabilities | 1,587 | 1,584 | |||||||||||||
Commitments and Contingent Liabilities (Notes 6 and 10) | Commitments and Contingent Liabilities (Notes 6 and 10) | Commitments and Contingent Liabilities (Notes 6 and 10) | ||||||||||||||||
Shareowners' Equity | ||||||||||||||||||
Preference stock | 250 | |||||||||||||||||
Stockholder's Equity | Stockholder's Equity | |||||||||||||||||
Common stock - no par value (a) | 364 | 364 | Common stock - no par value (a) | 364 | 364 | |||||||||||||
Additional paid-in capital | 1,129 | 979 | Additional paid-in capital | 1,340 | 1,135 | |||||||||||||
Earnings reinvested | 552 | 532 | Earnings reinvested | 629 | 563 | |||||||||||||
Total Equity | 2,045 | 2,125 | Total Equity | 2,333 | 2,062 | |||||||||||||
Total Liabilities and Equity | Total Liabilities and Equity | $ | 5,866 | $ | 5,705 | Total Liabilities and Equity | $ | 6,729 | $ | 6,118 |
(a) | 170,000 shares authorized; 66,368 shares issued and outstanding at September 30, |
PPL Electric Utilities Corporation and Subsidiaries | (Unaudited) | (Millions of Dollars) | ||||||||||||||||||||||||||||||||||||
Common | Common | |||||||||||||||||||||||||||||||||||||
stock | stock | |||||||||||||||||||||||||||||||||||||
shares | Additional | shares | Additional | |||||||||||||||||||||||||||||||||||
outstanding | Preference | Common | paid-in | Earnings | outstanding | Preference | Common | paid-in | Earnings | |||||||||||||||||||||||||||||
(a) | stock | stock | capital | reinvested | Total | (a) | stock | stock | capital | reinvested | Total | |||||||||||||||||||||||||||
June 30, 2013 | June 30, 2013 | 66,368 | $ | 364 | $ | 1,340 | $ | 606 | $ | 2,310 | ||||||||||||||||||||||||||||
Net income | Net income | 51 | 51 | |||||||||||||||||||||||||||||||||||
Cash dividends declared on common stock | Cash dividends declared on common stock | (28) | (28) | |||||||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2013 | 66,368 | $ | 364 | $ | 1,340 | $ | 629 | $ | 2,333 | ||||||||||||||||||||||||||||
December 31, 2012 | December 31, 2012 | 66,368 | $ | 364 | $ | 1,135 | $ | 563 | $ | 2,062 | ||||||||||||||||||||||||||||
Net income | Net income | 160 | 160 | |||||||||||||||||||||||||||||||||||
Capital contributions from PPL | Capital contributions from PPL | 205 | 205 | |||||||||||||||||||||||||||||||||||
Cash dividends declared on common stock | Cash dividends declared on common stock | (94) | (94) | |||||||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2013 | 66,368 | $ | 364 | $ | 1,340 | $ | 629 | $ | 2,333 | ||||||||||||||||||||||||||||
June 30, 2012 | June 30, 2012 | 66,368 | $ | $ | 364 | $ | 979 | $ | 538 | $ | 1,881 | June 30, 2012 | 66,368 | $ | 364 | $ | 979 | $ | 538 | $ | 1,881 | |||||||||||||||||
Net income | Net income | 33 | 33 | Net income | 33 | 33 | ||||||||||||||||||||||||||||||||
Capital contributions from PPL | Capital contributions from PPL | 150 | 150 | Capital contributions from PPL | 150 | 150 | ||||||||||||||||||||||||||||||||
Cash dividends declared on common stock | Cash dividends declared on common stock | (19) | (19) | Cash dividends declared on common stock | (19) | (19) | ||||||||||||||||||||||||||||||||
September 30, 2012 | September 30, 2012 | 66,368 | $ | $ | 364 | $ | 1,129 | $ | 552 | $ | 2,045 | September 30, 2012 | 66,368 | $ | 364 | $ | 1,129 | $ | 552 | $ | 2,045 | |||||||||||||||||
December 31, 2011 | December 31, 2011 | 66,368 | $ | 250 | $ | 364 | $ | 979 | $ | 532 | $ | 2,125 | December 31, 2011 | 66,368 | $ | 250 | $ | 364 | $ | 979 | $ | 532 | $ | 2,125 | ||||||||||||||
Net income | Net income | 99 | 99 | Net income | 99 | 99 | ||||||||||||||||||||||||||||||||
Redemption of preference stock (b) | Redemption of preference stock (b) | (250) | (250) | Redemption of preference stock (b) | (250) | (250) | ||||||||||||||||||||||||||||||||
Capital contributions from PPL | Capital contributions from PPL | 150 | 150 | Capital contributions from PPL | 150 | 150 | ||||||||||||||||||||||||||||||||
Cash dividends declared on preference stock | Cash dividends declared on preference stock | (4) | (4) | Cash dividends declared on preference stock | (4) | (4) | ||||||||||||||||||||||||||||||||
Cash dividends declared on common stock | Cash dividends declared on common stock | (75) | (75) | Cash dividends declared on common stock | (75) | (75) | ||||||||||||||||||||||||||||||||
September 30, 2012 | September 30, 2012 | 66,368 | $ | $ | 364 | $ | 1,129 | $ | 552 | $ | 2,045 | September 30, 2012 | 66,368 | $ | $ | 364 | $ | 1,129 | $ | 552 | $ | 2,045 | ||||||||||||||||
June 30, 2011 | 66,368 | $ | 250 | $ | 364 | $ | 879 | $ | 487 | $ | 1,980 | |||||||||||||||||||||||||||
Net income | 32 | 32 | ||||||||||||||||||||||||||||||||||||
Capital contributions from PPL | 56 | 56 | ||||||||||||||||||||||||||||||||||||
Cash dividends declared on preference stock | (4) | (4) | ||||||||||||||||||||||||||||||||||||
Cash dividends declared on common stock | (24) | (24) | ||||||||||||||||||||||||||||||||||||
September 30, 2011 | 66,368 | $ | 250 | $ | 364 | $ | 935 | $ | 491 | $ | 2,040 | |||||||||||||||||||||||||||
December 31, 2010 | 66,368 | $ | 250 | $ | 364 | $ | 879 | $ | 451 | $ | 1,944 | |||||||||||||||||||||||||||
Net income | 128 | 128 | ||||||||||||||||||||||||||||||||||||
Capital contributions from PPL | 56 | 56 | ||||||||||||||||||||||||||||||||||||
Cash dividends declared on preference stock | (12) | (12) | ||||||||||||||||||||||||||||||||||||
Cash dividends declared on common stock | (76) | (76) | ||||||||||||||||||||||||||||||||||||
September 30, 2011 | 66,368 | $ | 250 | $ | 364 | $ | 935 | $ | 491 | $ | 2,040 |
(a) | Shares in thousands. All common shares of PPL Electric stock are owned by PPL. |
(b) | In June 2012, PPL Electric redeemed all of its outstanding preference stock. |
The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements. |
LG&E and KU Energy LLC and Subsidiaries | ||||||||||||||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||||||||
(Millions of Dollars) | (Millions of Dollars) | (Millions of Dollars) | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Operating Revenues | Operating Revenues | $ | 732 | $ | 736 | $ | 2,095 | $ | 2,140 | Operating Revenues | $ | 744 | $ | 732 | $ | 2,226 | $ | 2,095 | ||||||||||||
Operating Expenses | Operating Expenses | Operating Expenses | ||||||||||||||||||||||||||||
Operation | Operation | |||||||||||||||||||||||||||||
Fuel | 249 | 245 | 677 | 666 | Fuel | 237 | 249 | 684 | 677 | |||||||||||||||||||||
Energy purchases | 27 | 32 | 135 | 179 | Energy purchases | 23 | 27 | 146 | 135 | |||||||||||||||||||||
Other operation and maintenance | 186 | 187 | 589 | 566 | Other operation and maintenance | 188 | 186 | 582 | 589 | |||||||||||||||||||||
Depreciation | 87 | 84 | 259 | 249 | Depreciation | 84 | 87 | 249 | 259 | |||||||||||||||||||||
Taxes, other than income | 11 | 10 | 34 | 28 | Taxes, other than income | 12 | 11 | 36 | 34 | |||||||||||||||||||||
Total Operating Expenses | 560 | 558 | 1,694 | 1,688 | Total Operating Expenses | 544 | 560 | 1,697 | 1,694 | |||||||||||||||||||||
Operating Income | Operating Income | 172 | 178 | 401 | 452 | Operating Income | 200 | 172 | 529 | 401 | ||||||||||||||||||||
Other Income (Expense) - net | Other Income (Expense) - net | (4) | (14) | (1) | Other Income (Expense) - net | (4) | (4) | (6) | (14) | |||||||||||||||||||||
Interest Expense | Interest Expense | 37 | 36 | 112 | 108 | Interest Expense | 37 | 37 | 110 | 112 | ||||||||||||||||||||
Interest Expense with Affiliate | Interest Expense with Affiliate | 1 | ||||||||||||||||||||||||||||
Income from Continuing Operations Before Income Taxes | Income from Continuing Operations Before Income Taxes | 131 | 142 | 275 | 343 | Income from Continuing Operations Before Income Taxes | 159 | 131 | 412 | 275 | ||||||||||||||||||||
Income Taxes | Income Taxes | 48 | 52 | 89 | 125 | Income Taxes | 59 | 48 | 153 | 89 | ||||||||||||||||||||
Income from Continuing Operations After Income Taxes | Income from Continuing Operations After Income Taxes | 83 | 90 | 186 | 218 | Income from Continuing Operations After Income Taxes | 100 | 83 | 259 | 186 | ||||||||||||||||||||
Income (Loss) from Discontinued Operations (net of income taxes) | Income (Loss) from Discontinued Operations (net of income taxes) | (1) | (6) | (1) | Income (Loss) from Discontinued Operations (net of income taxes) | 1 | (6) | |||||||||||||||||||||||
Net Income (a) | Net Income (a) | $ | 83 | $ | 89 | $ | 180 | $ | 217 | Net Income (a) | $ | 100 | $ | 83 | $ | 260 | $ | 180 | ||||||||||||
(a) Net income approximates comprehensive income. | ||||||||||||||||||||||||||||||
The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements. |
(a) | Net income approximates comprehensive income. |
The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements. |
LG&E and KU Energy LLC and Subsidiaries | (Unaudited) | (Millions of Dollars) | ||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2012 | 2011 | 2013 | 2012 | |||||||||||||||||
Cash Flows from Operating Activities | Cash Flows from Operating Activities | Cash Flows from Operating Activities | ||||||||||||||||||
Net income | $ | 260 | $ | 180 | ||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||||||||
Depreciation | 249 | 259 | ||||||||||||||||||
Net income | $ | 180 | $ | 217 | Amortization | 19 | 20 | |||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | Defined benefit plans - expense | 38 | 30 | |||||||||||||||||
Depreciation | 259 | 249 | Deferred income taxes and investment tax credits | 99 | 92 | |||||||||||||||
Amortization | 20 | 20 | Other | 6 | (5) | |||||||||||||||
Defined benefit plans - expense | 30 | 38 | Change in current assets and current liabilities | |||||||||||||||||
Deferred income taxes and investment tax credits | 92 | 206 | Accounts receivable | (78) | (25) | |||||||||||||||
Other | (5) | (14) | Accounts payable | 34 | 4 | |||||||||||||||
Change in current assets and current liabilities | Accounts payable to affiliates | 1 | ||||||||||||||||||
Accounts receivable | (25) | 1 | Unbilled revenues | 19 | 26 | |||||||||||||||
Accounts payable | 4 | (28) | Fuel, materials and supplies | 1 | 4 | |||||||||||||||
Unbilled revenues | 26 | 58 | Income tax receivable | 3 | ||||||||||||||||
Fuel, materials and supplies | 4 | 30 | Taxes payable | 83 | 51 | |||||||||||||||
Income tax receivable | 3 | 40 | Accrued interest | 30 | 29 | |||||||||||||||
Taxes | 51 | 2 | Other | 19 | ||||||||||||||||
Other | 48 | 19 | Other operating activities | |||||||||||||||||
Other operating activities | Defined benefit plans - funding | (159) | (66) | |||||||||||||||||
Defined benefit plans - funding | (66) | (159) | Settlement of interest rate swaps | 98 | ||||||||||||||||
Other assets | (3) | (8) | Other assets | (1) | (3) | |||||||||||||||
Other liabilities | 28 | 12 | Other liabilities | 14 | 28 | |||||||||||||||
Net cash provided by operating activities | 646 | 683 | Net cash provided by operating activities | 713 | 646 | |||||||||||||||
Cash Flows from Investing Activities | Cash Flows from Investing Activities | Cash Flows from Investing Activities | ||||||||||||||||||
Expenditures for property, plant and equipment | (525) | (296) | Expenditures for property, plant and equipment | (891) | (525) | |||||||||||||||
Proceeds from the sale of other investments | 163 | Net (increase) decrease in notes receivable from affiliates | 9 | |||||||||||||||||
Net (increase) decrease in notes receivable from affiliates | 9 | 8 | Net (increase) decrease in restricted cash and cash equivalents | 10 | (3) | |||||||||||||||
Net (increase) decrease in restricted cash and cash equivalents | (3) | (11) | Other investing activities | 2 | ||||||||||||||||
Net cash provided by (used in) investing activities | (519) | (136) | Net cash provided by (used in) investing activities | (879) | (519) | |||||||||||||||
Cash Flows from Financing Activities | Cash Flows from Financing Activities | Cash Flows from Financing Activities | ||||||||||||||||||
Issuance of long-term debt | 250 | Net increase (decrease) in notes payable with affiliates | 27 | |||||||||||||||||
Net increase (decrease) in short-term debt | (163) | Net increase (decrease) in short-term debt | 87 | |||||||||||||||||
Debt issuance and credit facility costs | (1) | (6) | Debt issuance and credit facility costs | (1) | ||||||||||||||||
Distributions to member | (95) | (469) | Distributions to member | (116) | (95) | |||||||||||||||
Net cash provided by (used in) financing activities | (96) | (388) | Contributions from member | 146 | ||||||||||||||||
Net cash provided by (used in) financing activities | 144 | (96) | ||||||||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | Net Increase (Decrease) in Cash and Cash Equivalents | 31 | 159 | Net Increase (Decrease) in Cash and Cash Equivalents | (22) | 31 | ||||||||||||||
Cash and Cash Equivalents at Beginning of Period | Cash and Cash Equivalents at Beginning of Period | 59 | 11 | Cash and Cash Equivalents at Beginning of Period | 43 | 59 | ||||||||||||||
Cash and Cash Equivalents at End of Period | Cash and Cash Equivalents at End of Period | $ | 90 | $ | 170 | Cash and Cash Equivalents at End of Period | $ | 21 | $ | 90 | ||||||||||
The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements. |
LG&E and KU Energy LLC and Subsidiaries | (Unaudited) | (Millions of Dollars) | ||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||
2012 | 2011 | 2013 | 2012 | |||||||||||||||
Assets | Assets | Assets | ||||||||||||||||
Current Assets | Current Assets | Current Assets | ||||||||||||||||
Cash and cash equivalents | $ | 90 | $ | 59 | Cash and cash equivalents | $ | 21 | $ | 43 | |||||||||
Accounts receivable (less reserve: 2012, $19; 2011, $17) | Accounts receivable (less reserve: 2013, $22; 2012, $19) | |||||||||||||||||
Customer | 158 | 129 | Customer | 216 | 133 | |||||||||||||
Other | 10 | 20 | Other | 18 | 20 | |||||||||||||
Unbilled revenues | 120 | 146 | Unbilled revenues | 137 | 156 | |||||||||||||
Fuel, materials and supplies | 278 | 283 | Accounts receivable from affiliates | 1 | ||||||||||||||
Prepayments | 21 | 22 | Fuel, materials and supplies | 275 | 276 | |||||||||||||
Notes receivable from affiliates | 6 | 15 | Prepayments | 24 | 28 | |||||||||||||
Income taxes receivable | 3 | Price risk management assets from affiliates | 14 | |||||||||||||||
Deferred income taxes | 148 | 17 | Deferred income taxes | 20 | 13 | |||||||||||||
Regulatory assets | 21 | 9 | Regulatory assets | 29 | 19 | |||||||||||||
Other current assets | 6 | 3 | Other current assets | 6 | 4 | |||||||||||||
Total Current Assets | 858 | 706 | Total Current Assets | 746 | 707 | |||||||||||||
Investments | 20 | 31 | ||||||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment | Property, Plant and Equipment | ||||||||||||||||
Regulated utility plant | 7,865 | 7,519 | Regulated utility plant | 8,434 | 8,073 | |||||||||||||
Less: accumulated depreciation - regulated utility plant | 458 | 277 | Less: accumulated depreciation - regulated utility plant | 713 | 519 | |||||||||||||
Regulated utility plant, net | 7,407 | 7,242 | Regulated utility plant, net | 7,721 | 7,554 | |||||||||||||
Other, net | 3 | 2 | Other, net | 3 | 3 | |||||||||||||
Construction work in progress | 650 | 557 | Construction work in progress | 1,341 | 750 | |||||||||||||
Property, Plant and Equipment, net | 8,060 | 7,801 | Property, Plant and Equipment, net | 9,065 | 8,307 | |||||||||||||
Other Noncurrent Assets | Other Noncurrent Assets | Other Noncurrent Assets | ||||||||||||||||
Regulatory assets | 590 | 620 | Regulatory assets | 566 | 630 | |||||||||||||
Goodwill | 996 | 996 | Goodwill | 996 | 996 | |||||||||||||
Other intangibles | 278 | 314 | Other intangibles | 232 | 271 | |||||||||||||
Other noncurrent assets | 114 | 108 | Other noncurrent assets | 97 | 108 | |||||||||||||
Total Other Noncurrent Assets | 1,978 | 2,038 | Total Other Noncurrent Assets | 1,891 | 2,005 | |||||||||||||
Total Assets | Total Assets | $ | 10,916 | $ | 10,576 | Total Assets | $ | 11,702 | $ | 11,019 | ||||||||
The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements. |
CONDENSED CONSOLIDATED BALANCE SHEETS | LG&E and KU Energy LLC and Subsidiaries | (Unaudited) | (Millions of Dollars) | |||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||
2012 | 2011 | 2013 | 2012 | |||||||||||||||
Liabilities and Equity | Liabilities and Equity | Liabilities and Equity | ||||||||||||||||
Current Liabilities | Current Liabilities | Current Liabilities | ||||||||||||||||
Short-term debt | $ | 212 | $ | 125 | ||||||||||||||
Notes payable with affiliates | 52 | 25 | ||||||||||||||||
Accounts payable | 312 | 283 | ||||||||||||||||
Accounts payable | $ | 206 | $ | 224 | Accounts payable to affiliates | 2 | 1 | |||||||||||
Accounts payable to affiliates | 2 | 2 | Customer deposits | 49 | 48 | |||||||||||||
Customer deposits | 47 | 45 | Taxes | 109 | 26 | |||||||||||||
Taxes | 76 | 25 | Price risk management liabilities | 4 | 5 | |||||||||||||
Regulatory liabilities | 13 | 20 | Price risk management liabilities with affiliates | 14 | ||||||||||||||
Interest | 51 | 23 | Regulatory liabilities | 17 | 9 | |||||||||||||
Salaries and benefits | 67 | 59 | Interest | 51 | 21 | |||||||||||||
Other current liabilities | 47 | 35 | Other current liabilities | 104 | 100 | |||||||||||||
Total Current Liabilities | 509 | 433 | Total Current Liabilities | 926 | 643 | |||||||||||||
Long-term Debt | Long-term Debt | 4,074 | 4,073 | Long-term Debt | 4,076 | 4,075 | ||||||||||||
Deferred Credits and Other Noncurrent Liabilities | Deferred Credits and Other Noncurrent Liabilities | Deferred Credits and Other Noncurrent Liabilities | ||||||||||||||||
Deferred income taxes | 645 | 413 | Deferred income taxes | 651 | 541 | |||||||||||||
Investment tax credits | 140 | 144 | Investment tax credits | 136 | 138 | |||||||||||||
Accrued pension obligations | 316 | 359 | Accrued pension obligations | 267 | 414 | |||||||||||||
Asset retirement obligations | 118 | 116 | Asset retirement obligations | 245 | 125 | |||||||||||||
Regulatory liabilities | 987 | 1,003 | Regulatory liabilities | 1,040 | 1,002 | |||||||||||||
Price risk management liabilities | 57 | 55 | Price risk management liabilities | 37 | 53 | |||||||||||||
Other deferred credits and noncurrent liabilities | 248 | 239 | Other deferred credits and noncurrent liabilities | 249 | 242 | |||||||||||||
Total Deferred Credits and Other Noncurrent Liabilities | 2,511 | 2,329 | Total Deferred Credits and Other Noncurrent Liabilities | 2,625 | 2,515 | |||||||||||||
Commitments and Contingent Liabilities (Notes 6 and 10) | Commitments and Contingent Liabilities (Notes 6 and 10) | Commitments and Contingent Liabilities (Notes 6 and 10) | ||||||||||||||||
Member's equity | Member's equity | 3,822 | 3,741 | Member's equity | 4,075 | 3,786 | ||||||||||||
Total Liabilities and Equity | Total Liabilities and Equity | $ | 10,916 | $ | 10,576 | Total Liabilities and Equity | $ | 11,702 | $ | 11,019 | ||||||||
The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements. |
LG&E and KU Energy LLC and Subsidiaries | |||
(Unaudited) | |||
(Millions of Dollars) | |||
Member's | |||
Equity | |||
June 30, 2013 | $ | 4,022 | |
Net income | 100 | ||
Distributions to member | (47) | ||
September 30, 2013 | $ | 4,075 | |
December 31, 2012 | $ | 3,786 | |
Net income | 260 | ||
Contributions from member | 146 | ||
Distributions to member | (116) | ||
Other comprehensive income (loss) | (1) | ||
September 30, 2013 | $ | 4,075 | |
June 30, 2012 | $ | 3,774 | |
Net income | 83 | ||
Distributions to member | (35) | ||
September 30, 2012 | $ | 3,822 | |
December 31, 2011 | $ | 3,741 | |
Net income | 180 | ||
Distributions to member | (95) | ||
Other comprehensive income (loss) | (4) | ||
September 30, 2012 | $ | 3,822 | |
Louisville Gas and Electric Company | ||||||||||||||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||||||||
(Millions of Dollars) | (Millions of Dollars) | (Millions of Dollars) | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Operating Revenues | Operating Revenues | Operating Revenues | ||||||||||||||||||||||||||||
Retail and wholesale | $ | 324 | $ | 323 | $ | 939 | $ | 974 | Retail and wholesale | $ | 332 | $ | 324 | $ | 1,003 | $ | 939 | |||||||||||||
Electric revenue from affiliate | 9 | 17 | 51 | 61 | Electric revenue from affiliate | 11 | 9 | 46 | 51 | |||||||||||||||||||||
Total Operating Revenues | 333 | 340 | 990 | 1,035 | Total Operating Revenues | 343 | 333 | 1,049 | 990 | |||||||||||||||||||||
Operating Expenses | Operating Expenses | Operating Expenses | ||||||||||||||||||||||||||||
Operation | Operation | |||||||||||||||||||||||||||||
Fuel | 100 | 98 | 281 | 265 | Fuel | 100 | 100 | 284 | 281 | |||||||||||||||||||||
Energy purchases | 18 | 24 | 110 | 155 | Energy purchases | 18 | 18 | 129 | 110 | |||||||||||||||||||||
Energy purchases from affiliate | 3 | 7 | 9 | 25 | Energy purchases from affiliate | 2 | 3 | 6 | 9 | |||||||||||||||||||||
Other operation and maintenance | 87 | 91 | 277 | 272 | Other operation and maintenance | 93 | 87 | 278 | 277 | |||||||||||||||||||||
Depreciation | 38 | 37 | 114 | 110 | Depreciation | 37 | 38 | 110 | 114 | |||||||||||||||||||||
Taxes, other than income | 6 | 5 | 17 | 14 | Taxes, other than income | 6 | 6 | 18 | 17 | |||||||||||||||||||||
Total Operating Expenses | 252 | 262 | 808 | 841 | Total Operating Expenses | 256 | 252 | 825 | 808 | |||||||||||||||||||||
Operating Income | Operating Income | 81 | 78 | 182 | 194 | Operating Income | 87 | 81 | 224 | 182 | ||||||||||||||||||||
Other Income (Expense) - net | Other Income (Expense) - net | (3) | (3) | Other Income (Expense) - net | (1) | (3) | (3) | (3) | ||||||||||||||||||||||
Interest Expense | Interest Expense | 10 | 11 | 31 | 34 | Interest Expense | 10 | 10 | 30 | 31 | ||||||||||||||||||||
Income Before Income Taxes | Income Before Income Taxes | 68 | 67 | 148 | 160 | Income Before Income Taxes | 76 | 68 | 191 | 148 | ||||||||||||||||||||
Income Taxes | Income Taxes | 25 | 24 | 54 | 58 | Income Taxes | 27 | 25 | 69 | 54 | ||||||||||||||||||||
Net Income (a) | Net Income (a) | $ | 43 | $ | 43 | $ | 94 | $ | 102 | Net Income (a) | $ | 49 | $ | 43 | $ | 122 | $ | 94 | ||||||||||||
(a) Net income approximates comprehensive income. | ||||||||||||||||||||||||||||||
The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements. |
(a) | Net income equals comprehensive income. |
The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements. |
Louisville Gas and Electric Company | (Unaudited) | (Millions of Dollars) | ||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2012 | 2011 | 2013 | 2012 | |||||||||||||||||
Cash Flows from Operating Activities | Cash Flows from Operating Activities | Cash Flows from Operating Activities | ||||||||||||||||||
Net income | $ | 94 | $ | 102 | Net income | $ | 122 | $ | 94 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||||||||
Depreciation | 114 | 110 | Depreciation | 110 | 114 | |||||||||||||||
Amortization | 8 | 9 | Amortization | 9 | 8 | |||||||||||||||
Defined benefit plans - expense | 14 | 16 | Defined benefit plans - expense | 13 | 14 | |||||||||||||||
Deferred income taxes and investment tax credits | 40 | 38 | Deferred income taxes and investment tax credits | 22 | 40 | |||||||||||||||
Other | (11) | 2 | Other | 10 | (11) | |||||||||||||||
Change in current assets and current liabilities | Change in current assets and current liabilities | |||||||||||||||||||
Accounts receivable | (5) | 21 | Accounts receivable | (20) | (5) | |||||||||||||||
Accounts payable | 2 | (16) | Accounts payable | 18 | 2 | |||||||||||||||
Unbilled revenues | 16 | 39 | Accounts payable to affiliates | 7 | ||||||||||||||||
Fuel, materials and supplies | (10) | 16 | Unbilled revenues | 10 | 16 | |||||||||||||||
Taxes | 21 | 9 | Fuel, materials and supplies | 2 | (10) | |||||||||||||||
Other | 13 | 3 | Taxes payable | 32 | 21 | |||||||||||||||
Other operating activities | Other | 12 | 13 | |||||||||||||||||
Defined benefit plans - funding | (26) | (68) | Other operating activities | |||||||||||||||||
Other assets | (2) | (7) | Defined benefit plans - funding | (45) | (26) | |||||||||||||||
Other liabilities | (1) | 5 | Settlement of interest rate swaps | 49 | ||||||||||||||||
Net cash provided by operating activities | 267 | 279 | Other assets | (1) | (2) | |||||||||||||||
Other liabilities | 2 | (1) | ||||||||||||||||||
Net cash provided by operating activities | 352 | 267 | ||||||||||||||||||
Cash Flows from Investing Activities | Cash Flows from Investing Activities | Cash Flows from Investing Activities | ||||||||||||||||||
Expenditures for property, plant and equipment | (193) | (127) | ||||||||||||||||||
Proceeds from the sale of other investments | 163 | Expenditures for property, plant and equipment | (376) | (193) | ||||||||||||||||
Net (increase) decrease in restricted cash and cash equivalents | (3) | (11) | Net (increase) decrease in restricted cash and cash equivalents | 10 | (3) | |||||||||||||||
Net cash provided by (used in) investing activities | (196) | 25 | Net cash provided by (used in) investing activities | (366) | (196) | |||||||||||||||
Cash Flows from Financing Activities | Cash Flows from Financing Activities | Cash Flows from Financing Activities | ||||||||||||||||||
Net increase (decrease) in notes payable with affiliates | (12) | Net increase (decrease) in short-term debt | 17 | |||||||||||||||||
Net increase (decrease) in short-term debt | (163) | Debt issuance and credit facility costs | (1) | |||||||||||||||||
Debt issuance and credit facility costs | (1) | (1) | Payment of common stock dividends to parent | (67) | (47) | |||||||||||||||
Payment of common stock dividends to parent | (47) | (55) | Contributions from parent | 54 | ||||||||||||||||
Net cash provided by (used in) financing activities | (48) | (231) | Net cash provided by (used in) financing activities | 4 | (48) | |||||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | Net Increase (Decrease) in Cash and Cash Equivalents | 23 | 73 | Net Increase (Decrease) in Cash and Cash Equivalents | (10) | 23 | ||||||||||||||
Cash and Cash Equivalents at Beginning of Period | Cash and Cash Equivalents at Beginning of Period | 25 | 2 | Cash and Cash Equivalents at Beginning of Period | 22 | 25 | ||||||||||||||
Cash and Cash Equivalents at End of Period | Cash and Cash Equivalents at End of Period | $ | 48 | $ | 75 | Cash and Cash Equivalents at End of Period | $ | 12 | $ | 48 | ||||||||||
The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements. |
Louisville Gas and Electric Company | (Unaudited) | (Millions of Dollars, shares in thousands) | ||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||
2012 | 2011 | 2013 | 2012 | |||||||||||||||
Assets | Assets | Assets | ||||||||||||||||
Current Assets | Current Assets | Current Assets | ||||||||||||||||
Cash and cash equivalents | $ | 12 | $ | 22 | ||||||||||||||
Cash and cash equivalents | $ | 48 | $ | 25 | Accounts receivable (less reserve: 2013, $2; 2012, $1) | |||||||||||||
Accounts receivable (less reserve: 2012, $1; 2011, $2) | Customer | 93 | 59 | |||||||||||||||
Customer | 68 | 60 | Other | 9 | 16 | |||||||||||||
Other | 5 | 9 | Unbilled revenues | 62 | 72 | |||||||||||||
Unbilled revenues | 49 | 65 | Accounts receivable from affiliates | 8 | 14 | |||||||||||||
Accounts receivable from affiliates | 12 | 11 | Fuel, materials and supplies | 140 | 142 | |||||||||||||
Fuel, materials and supplies | 152 | 142 | Prepayments | 4 | 7 | |||||||||||||
Prepayments | 6 | 7 | Price risk management from affiliates | 7 | ||||||||||||||
Income taxes receivable | 4 | Deferred income taxes | 3 | |||||||||||||||
Deferred income taxes | 2 | 2 | Regulatory assets | 19 | 19 | |||||||||||||
Regulatory assets | 17 | 9 | Other current assets | 1 | 1 | |||||||||||||
Total Current Assets | 359 | 334 | Total Current Assets | 351 | 359 | |||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment | Property, Plant and Equipment | ||||||||||||||||
Regulated utility plant | 3,142 | 2,956 | Regulated utility plant | 3,340 | 3,187 | |||||||||||||
Less: accumulated depreciation - regulated utility plant | 196 | 116 | Less: accumulated depreciation - regulated utility plant | 309 | 220 | |||||||||||||
Regulated utility plant, net | 2,946 | 2,840 | Regulated utility plant, net | 3,031 | 2,967 | |||||||||||||
Other, net | 1 | Other, net | 1 | |||||||||||||||
Construction work in progress | 186 | 215 | Construction work in progress | 490 | 259 | |||||||||||||
Property, Plant and Equipment, net | 3,133 | 3,055 | Property, Plant and Equipment, net | 3,522 | 3,226 | |||||||||||||
Other Noncurrent Assets | Other Noncurrent Assets | Other Noncurrent Assets | ||||||||||||||||
Regulatory assets | 384 | 403 | Regulatory assets | 359 | 400 | |||||||||||||
Goodwill | 389 | 389 | Goodwill | 389 | 389 | |||||||||||||
Other intangibles | 149 | 166 | Other intangibles | 126 | 144 | |||||||||||||
Other noncurrent assets | 44 | 40 | Other noncurrent assets | 33 | 44 | |||||||||||||
Total Other Noncurrent Assets | 966 | 998 | Total Other Noncurrent Assets | 907 | 977 | |||||||||||||
Total Assets | Total Assets | $ | 4,458 | $ | 4,387 | Total Assets | $ | 4,780 | $ | 4,562 | ||||||||
The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements. |
CONDENSED BALANCE SHEETS | Louisville Gas and Electric Company | (Unaudited) | (Millions of Dollars, shares in thousands) | |||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||
2012 | 2011 | �� | 2013 | 2012 | ||||||||||||||
Liabilities and Equity | Liabilities and Equity | Liabilities and Equity | ||||||||||||||||
Current Liabilities | Current Liabilities | Current Liabilities | ||||||||||||||||
Short-term debt | $ | 72 | $ | 55 | ||||||||||||||
Accounts payable | 147 | 117 | ||||||||||||||||
Accounts payable | $ | 89 | $ | 94 | Accounts payable to affiliates | 30 | 23 | |||||||||||
Accounts payable to affiliates | 24 | 26 | Customer deposits | 24 | 23 | |||||||||||||
Customer deposits | 23 | 22 | Taxes | 34 | 2 | |||||||||||||
Taxes | 34 | 13 | Price risk management liabilities | 4 | 5 | |||||||||||||
Regulatory liabilities | 5 | 10 | Price risk management liabilities with affiliates | 7 | ||||||||||||||
Interest | 11 | 6 | Regulatory liabilities | 11 | 4 | |||||||||||||
Salaries and benefits | 18 | 14 | Interest | 10 | 5 | |||||||||||||
Other current liabilities | 14 | 14 | Other current liabilities | 34 | 34 | |||||||||||||
Total Current Liabilities | 218 | 199 | Total Current Liabilities | 373 | 268 | |||||||||||||
Long-term Debt | Long-term Debt | 1,112 | 1,112 | Long-term Debt | 1,112 | 1,112 | ||||||||||||
Deferred Credits and Other Noncurrent Liabilities | Deferred Credits and Other Noncurrent Liabilities | Deferred Credits and Other Noncurrent Liabilities | ||||||||||||||||
Deferred income taxes | 520 | 475 | Deferred income taxes | 577 | 544 | |||||||||||||
Investment tax credits | 41 | 43 | Investment tax credits | 39 | 40 | |||||||||||||
Accrued pension obligations | 71 | 95 | Accrued pension obligations | 56 | 102 | |||||||||||||
Asset retirement obligations | 55 | 55 | Asset retirement obligations | 69 | 56 | |||||||||||||
Regulatory liabilities | 467 | 478 | Regulatory liabilities | 489 | 471 | |||||||||||||
Price risk management liabilities | 57 | 55 | Price risk management liabilities | 37 | 53 | |||||||||||||
Other deferred credits and noncurrent liabilities | 108 | 113 | Other deferred credits and noncurrent liabilities | 109 | 106 | |||||||||||||
Total Deferred Credits and Other Noncurrent Liabilities | 1,319 | 1,314 | Total Deferred Credits and Other Noncurrent Liabilities | 1,376 | 1,372 | |||||||||||||
Commitments and Contingent Liabilities (Notes 6 and 10) | Commitments and Contingent Liabilities (Notes 6 and 10) | Commitments and Contingent Liabilities (Notes 6 and 10) | ||||||||||||||||
Stockholder's Equity | Stockholder's Equity | Stockholder's Equity | ||||||||||||||||
Common stock - no par value (a) | 424 | 424 | Common stock - no par value (a) | 424 | 424 | |||||||||||||
Additional paid-in capital | 1,278 | 1,278 | Additional paid-in capital | 1,332 | 1,278 | |||||||||||||
Earnings reinvested | 107 | 60 | Earnings reinvested | 163 | 108 | |||||||||||||
Total Equity | 1,809 | 1,762 | Total Equity | 1,919 | 1,810 | |||||||||||||
Total Liabilities and Equity | Total Liabilities and Equity | $ | 4,458 | $ | 4,387 | Total Liabilities and Equity | $ | 4,780 | $ | 4,562 |
(a) | 75,000 shares authorized; 21,294 shares issued and outstanding at September 30, |
Louisville Gas and Electric Company | Louisville Gas and Electric Company | Louisville Gas and Electric Company | |||||||||||||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | �� | ||||||||||||||||||||||||||||
(Millions of Dollars) | (Millions of Dollars) | (Millions of Dollars) | |||||||||||||||||||||||||||||
Common | Common | ||||||||||||||||||||||||||||||
stock | stock | ||||||||||||||||||||||||||||||
shares | Additional | shares | Additional | ||||||||||||||||||||||||||||
outstanding | Common | paid-in | Earnings | outstanding | Common | paid-in | Earnings | ||||||||||||||||||||||||
(a) | stock | capital | reinvested | Total | (a) | stock | capital | reinvested | Total | ||||||||||||||||||||||
June 30, 2013 | June 30, 2013 | 21,294 | $ | 424 | $ | 1,332 | $ | 133 | $ | 1,889 | |||||||||||||||||||||
Net income | Net income | 49 | 49 | ||||||||||||||||||||||||||||
Cash dividends declared on common stock | Cash dividends declared on common stock | (19) | (19) | ||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2013 | 21,294 | $ | 424 | $ | 1,332 | $ | 163 | $ | 1,919 | |||||||||||||||||||||
December 31, 2012 | December 31, 2012 | 21,294 | $ | 424 | $ | 1,278 | $ | 108 | $ | 1,810 | |||||||||||||||||||||
Net income | Net income | 122 | 122 | ||||||||||||||||||||||||||||
Capital contributions from LKE | Capital contributions from LKE | 54 | 54 | ||||||||||||||||||||||||||||
Cash dividends declared on common stock | Cash dividends declared on common stock | (67) | (67) | ||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2013 | 21,294 | $ | 424 | $ | 1,332 | $ | 163 | $ | 1,919 | |||||||||||||||||||||
June 30, 2012 | June 30, 2012 | 21,294 | $ | 424 | $ | 1,278 | $ | 80 | $ | 1,782 | June 30, 2012 | 21,294 | $ | 424 | $ | 1,278 | $ | 80 | $ | 1,782 | |||||||||||
Net income | Net income | 43 | 43 | Net income | 43 | 43 | |||||||||||||||||||||||||
Cash dividends declared on common stock | Cash dividends declared on common stock | (16) | (16) | Cash dividends declared on common stock | (16) | (16) | |||||||||||||||||||||||||
September 30, 2012 | September 30, 2012 | 21,294 | $ | 424 | $ | 1,278 | $ | 107 | $ | 1,809 | September 30, 2012 | 21,294 | $ | 424 | $ | 1,278 | $ | 107 | $ | 1,809 | |||||||||||
December 31, 2011 | December 31, 2011 | 21,294 | $ | 424 | $ | 1,278 | $ | 60 | $ | 1,762 | December 31, 2011 | 21,294 | $ | 424 | $ | 1,278 | $ | 60 | $ | 1,762 | |||||||||||
Net income | Net income | 94 | 94 | Net income | 94 | 94 | |||||||||||||||||||||||||
Cash dividends declared on common stock | Cash dividends declared on common stock | (47) | (47) | Cash dividends declared on common stock | (47) | (47) | |||||||||||||||||||||||||
September 30, 2012 | September 30, 2012 | 21,294 | $ | 424 | $ | 1,278 | $ | 107 | $ | 1,809 | September 30, 2012 | 21,294 | $ | 424 | $ | 1,278 | $ | 107 | $ | 1,809 | |||||||||||
June 30, 2011 | 21,294 | $ | 424 | $ | 1,278 | $ | 36 | $ | 1,738 | ||||||||||||||||||||||
Net income | 43 | 43 | |||||||||||||||||||||||||||||
Cash dividends declared on common stock | (13) | (13) | |||||||||||||||||||||||||||||
September 30, 2011 | 21,294 | $ | 424 | $ | 1,278 | $ | 66 | $ | 1,768 | ||||||||||||||||||||||
December 31, 2010 | 21,294 | $ | 424 | $ | 1,278 | $ | 19 | $ | 1,721 | ||||||||||||||||||||||
Net income | 102 | 102 | |||||||||||||||||||||||||||||
Cash dividends declared on common stock | (55) | (55) | |||||||||||||||||||||||||||||
September 30, 2011 | 21,294 | $ | 424 | $ | 1,278 | $ | 66 | $ | 1,768 |
(a) | Shares in thousands. All common shares of LG&E stock are owned by LKE. |
Kentucky Utilities Company | ||||||||||||||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||||||||
(Millions of Dollars) | (Millions of Dollars) | (Millions of Dollars) | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Operating Revenues | Operating Revenues | Operating Revenues | ||||||||||||||||||||||||||||
Retail and wholesale | $ | 408 | $ | 413 | $ | 1,156 | $ | 1,166 | Retail and wholesale | $ | 412 | $ | 408 | $ | 1,223 | $ | 1,156 | |||||||||||||
Electric revenue from affiliate | 3 | 7 | 9 | 25 | Electric revenue from affiliate | 2 | 3 | 6 | 9 | |||||||||||||||||||||
Total Operating Revenues | 411 | 420 | 1,165 | 1,191 | Total Operating Revenues | 414 | 411 | 1,229 | 1,165 | |||||||||||||||||||||
Operating Expenses | Operating Expenses | Operating Expenses | ||||||||||||||||||||||||||||
Operation | Operation | |||||||||||||||||||||||||||||
Fuel | 149 | 147 | 396 | 401 | Fuel | 137 | 149 | 400 | 396 | |||||||||||||||||||||
Energy purchases | 9 | 8 | 25 | 24 | Energy purchases | 5 | 9 | 17 | 25 | |||||||||||||||||||||
Energy purchases from affiliate | 9 | 17 | 51 | 61 | Energy purchases from affiliate | 11 | 9 | 46 | 51 | |||||||||||||||||||||
Other operation and maintenance | 93 | 90 | 286 | 274 | Other operation and maintenance | 91 | 93 | 286 | 286 | |||||||||||||||||||||
Depreciation | 49 | 47 | 145 | 139 | Depreciation | 46 | 49 | 138 | 145 | |||||||||||||||||||||
Taxes, other than income | 5 | 5 | 17 | 14 | Taxes, other than income | 6 | 5 | 18 | 17 | |||||||||||||||||||||
Total Operating Expenses | 314 | 314 | 920 | 913 | Total Operating Expenses | 296 | 314 | 905 | 920 | |||||||||||||||||||||
Operating Income | Operating Income | 97 | 106 | 245 | 278 | Operating Income | 118 | 97 | 324 | 245 | ||||||||||||||||||||
Other Income (Expense) - net | Other Income (Expense) - net | 1 | (5) | 1 | Other Income (Expense) - net | (2) | 1 | (1) | (5) | |||||||||||||||||||||
Interest Expense | Interest Expense | 18 | 18 | 52 | 53 | Interest Expense | 17 | 18 | 51 | 52 | ||||||||||||||||||||
Income Before Income Taxes | Income Before Income Taxes | 80 | 88 | 188 | 226 | Income Before Income Taxes | 99 | 80 | 272 | 188 | ||||||||||||||||||||
Income Taxes | Income Taxes | 30 | 32 | 70 | 82 | Income Taxes | 36 | 30 | 101 | 70 | ||||||||||||||||||||
Net Income (a) | Net Income (a) | $ | 50 | $ | 56 | $ | 118 | $ | 144 | Net Income (a) | $ | 63 | $ | 50 | $ | 171 | $ | 118 | ||||||||||||
(a) Net income approximates comprehensive income. | ||||||||||||||||||||||||||||||
The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements. |
(a) | Net income equals comprehensive income. |
The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements. |
Kentucky Utilities Company | (Unaudited) | (Millions of Dollars) | ||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2012 | 2011 | 2013 | 2012 | |||||||||||||||||
Cash Flows from Operating Activities | Cash Flows from Operating Activities | Cash Flows from Operating Activities | ||||||||||||||||||
Net income | $ | 118 | $ | 144 | Net income | $ | 171 | $ | 118 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||||||||
Depreciation | 145 | 139 | Depreciation | 138 | 145 | |||||||||||||||
Amortization | 9 | 10 | Amortization | 9 | 9 | |||||||||||||||
Defined benefit plans - expense | 9 | 11 | Defined benefit plans - expense | 16 | 9 | |||||||||||||||
Deferred income taxes and investment tax credits | 78 | 78 | Deferred income taxes and investment tax credits | 73 | 78 | |||||||||||||||
Other | 1 | (16) | Other | (3) | 1 | |||||||||||||||
Change in current assets and current liabilities | Change in current assets and current liabilities | |||||||||||||||||||
Accounts receivable | (34) | 8 | Accounts receivable | (46) | (34) | |||||||||||||||
Accounts payable | 9 | 5 | Accounts payable | 25 | 9 | |||||||||||||||
Accounts payable to affiliates | (4) | (21) | Accounts payable to affiliates | (9) | (4) | |||||||||||||||
Unbilled revenues | 10 | 19 | Unbilled revenues | 9 | 10 | |||||||||||||||
Fuel, materials and supplies | 16 | 14 | Fuel, materials and supplies | (1) | 16 | |||||||||||||||
Taxes | 26 | (5) | Taxes payable | 39 | 26 | |||||||||||||||
Other | 32 | 15 | Accrued interest | 15 | 14 | |||||||||||||||
Other operating activities | Other | (3) | 18 | |||||||||||||||||
Defined benefit plans - funding | (20) | (46) | Other operating activities | |||||||||||||||||
Other assets | (1) | (1) | Defined benefit plans - funding | (62) | (20) | |||||||||||||||
Other liabilities | 16 | 5 | Settlement of interest rate swaps | 49 | ||||||||||||||||
Net cash provided by operating activities | 410 | 359 | Other assets | (2) | (1) | |||||||||||||||
Other liabilities | 1 | 16 | ||||||||||||||||||
Net cash provided by operating activities | 419 | 410 | ||||||||||||||||||
Cash Flows from Investing Activities | Cash Flows from Investing Activities | Cash Flows from Investing Activities | ||||||||||||||||||
Expenditures for property, plant and equipment | (512) | (331) | ||||||||||||||||||
Expenditures for property, plant and equipment | (331) | (168) | Other investing activities | 2 | ||||||||||||||||
Net cash provided by (used in) investing activities | (331) | (168) | Net cash provided by (used in) investing activities | (510) | (331) | |||||||||||||||
Cash Flows from Financing Activities | Cash Flows from Financing Activities | Cash Flows from Financing Activities | ||||||||||||||||||
Net increase (decrease) in notes payable with affiliates | (10) | Net increase (decrease) in short-term debt | 70 | |||||||||||||||||
Debt issuance and credit facility costs | (2) | Payment of common stock dividends to parent | (83) | (68) | ||||||||||||||||
Payment of common stock dividends to parent | (68) | (88) | Contributions from parent | 92 | ||||||||||||||||
Net cash provided by (used in) financing activities | (68) | (100) | Net cash provided by (used in) financing activities | 79 | (68) | |||||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | Net Increase (Decrease) in Cash and Cash Equivalents | 11 | 91 | Net Increase (Decrease) in Cash and Cash Equivalents | (12) | 11 | ||||||||||||||
Cash and Cash Equivalents at Beginning of Period | Cash and Cash Equivalents at Beginning of Period | 31 | 3 | Cash and Cash Equivalents at Beginning of Period | 21 | 31 | ||||||||||||||
Cash and Cash Equivalents at End of Period | Cash and Cash Equivalents at End of Period | $ | 42 | $ | 94 | Cash and Cash Equivalents at End of Period | $ | 9 | $ | 42 | ||||||||||
The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements. |
Kentucky Utilities Company | (Unaudited) | (Millions of Dollars, shares in thousands) | ||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||
2012 | 2011 | 2013 | 2012 | |||||||||||||||
Assets | Assets | Assets | ||||||||||||||||
Current Assets | Current Assets | Current Assets | ||||||||||||||||
Cash and cash equivalents | $ | 42 | $ | 31 | Cash and cash equivalents | $ | 9 | $ | 21 | |||||||||
Accounts receivable (less reserve: 2012, $2; 2011, $2) | Accounts receivable (less reserve: 2013, $4; 2012, $2) | |||||||||||||||||
Customer | 90 | 69 | Customer | 123 | 74 | |||||||||||||
Other | 5 | 9 | Other | 8 | 13 | |||||||||||||
Unbilled revenues | 71 | 81 | Unbilled revenues | 75 | 84 | |||||||||||||
Accounts receivable from affiliates | 14 | Accounts receivable from affiliates | 10 | 7 | ||||||||||||||
Fuel, materials and supplies | 126 | 141 | Fuel, materials and supplies | 135 | 134 | |||||||||||||
Prepayments | 9 | 7 | Prepayments | 11 | 10 | |||||||||||||
Income taxes receivable | 5 | Price risk management assets from affiliates | 7 | |||||||||||||||
Deferred income taxes | 5 | 5 | Deferred income taxes | 3 | 3 | |||||||||||||
Regulatory assets | 4 | Regulatory assets | 10 | |||||||||||||||
Other current assets | 6 | 3 | Other current assets | 5 | 3 | |||||||||||||
Total Current Assets | 372 | 351 | Total Current Assets | 389 | 356 | |||||||||||||
Investments | 19 | 31 | ||||||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment | |||||||||||||||||
Regulated utility plant | 5,094 | 4,886 | ||||||||||||||||
Property, Plant and Equipment | ||||||||||||||||||
Regulated utility plant | 4,723 | 4,563 | Less: accumulated depreciation - regulated utility plant | 404 | 299 | |||||||||||||
Less: accumulated depreciation - regulated utility plant | 262 | 161 | Regulated utility plant, net | 4,690 | 4,587 | |||||||||||||
Regulated utility plant, net | 4,461 | 4,402 | Other, net | 1 | 1 | |||||||||||||
Construction work in progress | 463 | 340 | Construction work in progress | 849 | 490 | |||||||||||||
Property, Plant and Equipment, net | 4,924 | 4,742 | Property, Plant and Equipment, net | 5,540 | 5,078 | |||||||||||||
Other Noncurrent Assets | Other Noncurrent Assets | Other Noncurrent Assets | ||||||||||||||||
Regulatory assets | 206 | 217 | Regulatory assets | 207 | 230 | |||||||||||||
Goodwill | 607 | 607 | Goodwill | 607 | 607 | |||||||||||||
Other intangibles | 129 | 148 | Other intangibles | 106 | 127 | |||||||||||||
Other noncurrent assets | 60 | 60 | Other noncurrent assets | 57 | 57 | |||||||||||||
Total Other Noncurrent Assets | 1,002 | 1,032 | Total Other Noncurrent Assets | 977 | 1,021 | |||||||||||||
Total Assets | Total Assets | $ | 6,317 | $ | 6,156 | Total Assets | $ | 6,906 | $ | 6,455 | ||||||||
The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements. |
CONDENSED BALANCE SHEETS | Kentucky Utilities Company | (Unaudited) | (Millions of Dollars, shares in thousands) | |||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||
2012 | 2011 | 2013 | 2012 | |||||||||||||||
Liabilities and Equity | Liabilities and Equity | Liabilities and Equity | ||||||||||||||||
Current Liabilities | Current Liabilities | Current Liabilities | ||||||||||||||||
Short-term debt | $ | 140 | $ | 70 | ||||||||||||||
Accounts payable | $ | 107 | $ | 112 | Accounts payable | 155 | 147 | |||||||||||
Accounts payable to affiliates | 29 | 33 | Accounts payable to affiliates | 24 | 33 | |||||||||||||
Customer deposits | 24 | 23 | Customer deposits | 25 | 25 | |||||||||||||
Taxes | 37 | 11 | Taxes | 65 | 26 | |||||||||||||
Regulatory liabilities | 8 | 10 | Price risk management liabilities with affiliates | 7 | ||||||||||||||
Interest | 25 | 11 | Regulatory liabilities | 6 | 5 | |||||||||||||
Salaries and benefits | 14 | 15 | Interest | 25 | 10 | |||||||||||||
Other current liabilities | 30 | 13 | Other current liabilities | 31 | 33 | |||||||||||||
Total Current Liabilities | 274 | 228 | Total Current Liabilities | 478 | 349 | |||||||||||||
Long-term Debt | Long-term Debt | 1,842 | 1,842 | Long-term Debt | 1,843 | 1,842 | ||||||||||||
Deferred Credits and Other Noncurrent Liabilities | Deferred Credits and Other Noncurrent Liabilities | Deferred Credits and Other Noncurrent Liabilities | ||||||||||||||||
Deferred income taxes | 563 | 484 | Deferred income taxes | 660 | 587 | |||||||||||||
Investment tax credits | 99 | 101 | Investment tax credits | 97 | 98 | |||||||||||||
Accrued pension obligations | 72 | 83 | Accrued pension obligations | 45 | 104 | |||||||||||||
Asset retirement obligations | 63 | 61 | Asset retirement obligations | 176 | 69 | |||||||||||||
Regulatory liabilities | 520 | 525 | Regulatory liabilities | 551 | 531 | |||||||||||||
Other deferred credits and noncurrent liabilities | 93 | 87 | Other deferred credits and noncurrent liabilities | 93 | 92 | |||||||||||||
Total Deferred Credits and Other Noncurrent Liabilities | 1,410 | 1,341 | Total Deferred Credits and Other Noncurrent Liabilities | 1,622 | 1,481 | |||||||||||||
Commitments and Contingent Liabilities (Notes 6 and 10) | Commitments and Contingent Liabilities (Notes 6 and 10) | Commitments and Contingent Liabilities (Notes 6 and 10) | ||||||||||||||||
Stockholder's Equity | Stockholder's Equity | Stockholder's Equity | ||||||||||||||||
Common stock - no par value (a) | 308 | 308 | Common stock - no par value (a) | 308 | 308 | |||||||||||||
Additional paid-in capital | 2,348 | 2,348 | Additional paid-in capital | 2,440 | 2,348 | |||||||||||||
Accumulated other comprehensive income (loss) | (4) | Accumulated other comprehensive income (loss) | 1 | 1 | ||||||||||||||
Earnings reinvested | 139 | 89 | Earnings reinvested | 214 | 126 | |||||||||||||
Total Equity | 2,791 | 2,745 | Total Equity | 2,963 | 2,783 | |||||||||||||
Total Liabilities and Equity | Total Liabilities and Equity | $ | 6,317 | $ | 6,156 | Total Liabilities and Equity | $ | 6,906 | $ | 6,455 |
(a) | 80,000 shares authorized; 37,818 shares issued and outstanding at September 30, |
Kentucky Utilities Company | Kentucky Utilities Company | Kentucky Utilities Company | ||||||||||||||||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||||||||||||
(Millions of Dollars) | (Millions of Dollars) | (Millions of Dollars) | ||||||||||||||||||||||||||||||||
Common | Accumulated | Common | Accumulated | |||||||||||||||||||||||||||||||
stock | other | stock | other | |||||||||||||||||||||||||||||||
shares | Additional | comprehensive | shares | Additional | comprehensive | |||||||||||||||||||||||||||||
outstanding | Common | paid-in | Earnings | income | outstanding | Common | paid-in | Earnings | income | |||||||||||||||||||||||||
(a) | stock | capital | reinvested | (loss) | Total | (a) | stock | capital | reinvested | (loss) | Total | |||||||||||||||||||||||
June 30, 2013 | 37,818 | $ | 308 | $ | 2,440 | $ | 179 | $ | 1 | $ | 2,928 | |||||||||||||||||||||||
Net income | 63 | 63 | ||||||||||||||||||||||||||||||||
Cash dividends declared on common stock | (28) | (28) | ||||||||||||||||||||||||||||||||
September 30, 2013 | 37,818 | $ | 308 | $ | 2,440 | $ | 214 | $ | 1 | $ | 2,963 | |||||||||||||||||||||||
December 31, 2012 | 37,818 | $ | 308 | $ | 2,348 | $ | 126 | $ | 1 | $ | 2,783 | |||||||||||||||||||||||
Net income | 171 | 171 | ||||||||||||||||||||||||||||||||
Capital contributions from LKE | 92 | 92 | ||||||||||||||||||||||||||||||||
Cash dividends declared on common stock | (83) | (83) | ||||||||||||||||||||||||||||||||
September 30, 2013 | 37,818 | $ | 308 | $ | 2,440 | $ | 214 | $ | 1 | $ | 2,963 | |||||||||||||||||||||||
June 30, 2012 | 37,818 | $ | 308 | $ | 2,348 | $ | 109 | $ | (4) | $ | 2,761 | 37,818 | $ | 308 | $ | 2,348 | $ | 109 | $ | (4) | $ | 2,761 | ||||||||||||
Net income | 50 | 50 | 50 | 50 | ||||||||||||||||||||||||||||||
Cash dividends declared on common stock | (20) | (20) | (20) | (20) | ||||||||||||||||||||||||||||||
September 30, 2012 | 37,818 | $ | 308 | $ | 2,348 | $ | 139 | $ | (4) | $ | 2,791 | 37,818 | $ | 308 | $ | 2,348 | $ | 139 | $ | (4) | $ | 2,791 | ||||||||||||
December 31, 2011 | 37,818 | $ | 308 | $ | 2,348 | $ | 89 | $ | 2,745 | 37,818 | $ | 308 | $ | 2,348 | $ | 89 | $ | 2,745 | ||||||||||||||||
Net income | 118 | 118 | 118 | 118 | ||||||||||||||||||||||||||||||
Cash dividends declared on common stock | (68) | (68) | (68) | (68) | ||||||||||||||||||||||||||||||
Other comprehensive income (loss) | $ | (4) | (4) | $ | (4) | (4) | ||||||||||||||||||||||||||||
September 30, 2012 | 37,818 | $ | 308 | $ | 2,348 | $ | 139 | $ | (4) | $ | 2,791 | 37,818 | $ | 308 | $ | 2,348 | $ | 139 | $ | (4) | $ | 2,791 | ||||||||||||
June 30, 2011 | 37,818 | $ | 308 | $ | 2,348 | $ | 55 | $ | (1) | $ | 2,710 | |||||||||||||||||||||||
Net income | 56 | 56 | ||||||||||||||||||||||||||||||||
Cash dividends declared on common stock | (20) | (20) | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 1 | 1 | ||||||||||||||||||||||||||||||||
September 30, 2011 | 37,818 | $ | 308 | $ | 2,348 | $ | 91 | $ | $ | 2,747 | ||||||||||||||||||||||||
December 31, 2010 | 37,818 | $ | 308 | $ | 2,348 | $ | 35 | $ | 2,691 | |||||||||||||||||||||||||
Net income | 144 | 144 | ||||||||||||||||||||||||||||||||
Cash dividends declared on common stock | (88) | (88) | ||||||||||||||||||||||||||||||||
September 30, 2011 | 37,818 | $ | 308 | $ | 2,348 | $ | 91 | $ | $ | 2,747 |
(a) | Shares in thousands. All common shares of KU stock are owned by LKE. |
Three Months | Nine Months | Three Months | Nine Months | |||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Income Statement Data | Income Statement Data | Income Statement Data | ||||||||||||||||||||||||||||||
Revenues from external customers | Revenues from external customers | Revenues from external customers | ||||||||||||||||||||||||||||||
U.K. Regulated | $ | 543 | $ | 528 | $ | 1,763 | $ | 1,647 | ||||||||||||||||||||||||
Kentucky Regulated | $ | 732 | $ | 736 | $ | 2,095 | $ | 2,140 | Kentucky Regulated | 744 | 732 | 2,226 | 2,095 | |||||||||||||||||||
U.K. Regulated | 528 | 493 | 1,647 | 1,138 | Pennsylvania Regulated | 463 | 443 | 1,388 | 1,303 | |||||||||||||||||||||||
Pennsylvania Regulated | 443 | 454 | 1,303 | 1,444 | Supply (a) | 1,352 | 700 | 3,626 | 4,019 | |||||||||||||||||||||||
Supply (a) | 700 | 1,437 | 4,019 | 3,797 | Corporate and Other | 3 | 9 | |||||||||||||||||||||||||
Total | Total | $ | 2,403 | $ | 3,120 | $ | 9,064 | $ | 8,519 | Total | $ | 3,105 | $ | 2,403 | $ | 9,012 | $ | 9,064 | ||||||||||||||
Intersegment electric revenues | Intersegment electric revenues | Intersegment electric revenues | ||||||||||||||||||||||||||||||
Pennsylvania Regulated | $ | 1 | $ | 1 | $ | 3 | $ | 9 | Pennsylvania Regulated | $ | 1 | $ | 1 | $ | 3 | $ | 3 | |||||||||||||||
Supply | 23 | 5 | 61 | 15 | Supply | 11 | 23 | 37 | 61 | |||||||||||||||||||||||
Net Income Attributable to PPL Shareowners | ||||||||||||||||||||||||||||||||
Kentucky Regulated | $ | 72 | $ | 78 | $ | 148 | $ | 184 | ||||||||||||||||||||||||
U.K. Regulated | 202 | 138 | 563 | 231 | ||||||||||||||||||||||||||||
Pennsylvania Regulated | 33 | 28 | 95 | 116 | ||||||||||||||||||||||||||||
Supply (a) | 48 | 200 | 361 | 510 | ||||||||||||||||||||||||||||
Total | $ | 355 | $ | 444 | $ | 1,167 | $ | 1,041 |
September 30, | December 31, | ||||||
2012 | 2011 | ||||||
Balance Sheet Data | |||||||
Assets | |||||||
Kentucky Regulated | $ | 10,546 | $ | 10,229 | |||
U.K. Regulated | 14,015 | 13,364 | |||||
Pennsylvania Regulated | 5,823 | 5,610 | |||||
Supply | 12,856 | 13,445 | |||||
Total assets | $ | 43,240 | $ | 42,648 |
Three Months | Nine Months | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net Income Attributable to PPL Shareowners | ||||||||||||||||
U.K. Regulated (a) | $ | 183 | $ | 202 | $ | 741 | $ | 563 | ||||||||
Kentucky Regulated | 93 | 72 | 227 | 148 | ||||||||||||
Pennsylvania Regulated | 51 | 33 | 160 | 95 | ||||||||||||
Supply (a) | 91 | 48 | 122 | 361 | ||||||||||||
Corporate and Other | (8) | (22) | ||||||||||||||
Total | $ | 410 | $ | 355 | $ | 1,228 | $ | 1,167 |
September 30, | December 31, | ||||||
2013 | 2012 | ||||||
Balance Sheet Data | |||||||
Assets | |||||||
U.K. Regulated | $ | 14,329 | $ | 14,073 | |||
Kentucky Regulated | 11,368 | 10,670 | |||||
Pennsylvania Regulated | 6,729 | 6,023 | |||||
Supply | 12,198 | 12,868 | |||||
Corporate and Other (b) | 364 | ||||||
Total assets | $ | 44,988 | $ | 43,634 |
(a) | Includes unrealized gains and losses from economic activity. See Note 14 for additional information. |
(b) | Primarily consists of unallocated assets, including cash, PP&E and the elimination of inter-segment transactions. |
Three Months | Nine Months | Three Months | Nine Months | |||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Income (Numerator) | Income (Numerator) | Income (Numerator) | ||||||||||||||||||||||||||||
Income from continuing operations after income taxes attributable to PPL | Income from continuing operations after income taxes attributable to PPL | Income from continuing operations after income taxes attributable to PPL | ||||||||||||||||||||||||||||
shareowners | $ | 355 | $ | 444 | $ | 1,173 | $ | 1,039 | shareowners | $ | 409 | $ | 355 | $ | 1,226 | $ | 1,173 | |||||||||||||
Less amounts allocated to participating securities | Less amounts allocated to participating securities | 2 | 2 | 7 | 4 | Less amounts allocated to participating securities | 2 | 2 | 6 | 7 | ||||||||||||||||||||
Income from continuing operations after income taxes available to PPL | Income from continuing operations after income taxes available to PPL | Income from continuing operations after income taxes available to PPL | ||||||||||||||||||||||||||||
common shareowners | $ | 353 | $ | 442 | $ | 1,166 | $ | 1,035 | common shareowners - Basic | 407 | 353 | 1,220 | 1,166 | |||||||||||||||||
Plus interest charges (net of tax) related to Equity Units | Plus interest charges (net of tax) related to Equity Units | 7 | 37 | |||||||||||||||||||||||||||
Income from continuing operations after income taxes available to PPL | Income from continuing operations after income taxes available to PPL | |||||||||||||||||||||||||||||
common shareowners - Diluted | $ | 414 | $ | 353 | $ | 1,257 | $ | 1,166 | ||||||||||||||||||||||
Income (loss) from discontinued operations (net of income taxes) available | Income (loss) from discontinued operations (net of income taxes) available | Income (loss) from discontinued operations (net of income taxes) available | ||||||||||||||||||||||||||||
to PPL common shareowners | $ | $ | $ | (6) | $ | 2 | to PPL common shareowners - Basic and Diluted | $ | 1 | $ | $ | 2 | $ | (6) | ||||||||||||||||
Net income attributable to PPL shareowners | Net income attributable to PPL shareowners | $ | 355 | $ | 444 | $ | 1,167 | $ | 1,041 | Net income attributable to PPL shareowners | $ | 410 | $ | 355 | $ | 1,228 | $ | 1,167 | ||||||||||||
Less amounts allocated to participating securities | Less amounts allocated to participating securities | 2 | 2 | 7 | 4 | Less amounts allocated to participating securities | 2 | 2 | 6 | 7 | ||||||||||||||||||||
Net income available to PPL common shareowners | $ | 353 | $ | 442 | $ | 1,160 | $ | 1,037 | ||||||||||||||||||||||
Shares of Common Stock (Denominator) | ||||||||||||||||||||||||||||||
Weighted-average shares - Basic EPS | 580,585 | 577,595 | 579,847 | 541,135 | ||||||||||||||||||||||||||
Add incremental non-participating securities: | ||||||||||||||||||||||||||||||
Stock options and performance units | 635 | 459 | 522 | 345 | ||||||||||||||||||||||||||
2010 Purchase Contracts | 439 | 146 | ||||||||||||||||||||||||||||
Forward sale agreements | 977 | 415 | ||||||||||||||||||||||||||||
Weighted-average shares - Diluted EPS | 582,636 | 578,054 | 580,930 | 541,480 | ||||||||||||||||||||||||||
Net income available to PPL common shareowners - Basic | Net income available to PPL common shareowners - Basic | 408 | 353 | 1,222 | 1,160 | |||||||||||||||||||||||||
Plus interest charges (net of tax) related to Equity Units | Plus interest charges (net of tax) related to Equity Units | 7 | 37 | |||||||||||||||||||||||||||
Net income available to PPL common shareowners - Diluted | Net income available to PPL common shareowners - Diluted | $ | 415 | $ | 353 | $ | 1,259 | $ | 1,160 |
Three Months | Nine Months | Three Months | Nine Months | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Shares of Common Stock (Denominator) | Shares of Common Stock (Denominator) | |||||||||||||||||||||||||||||
Weighted-average shares - Basic EPS | Weighted-average shares - Basic EPS | 631,046 | 580,585 | 601,275 | 579,847 | |||||||||||||||||||||||||
Add incremental non-participating securities: | Add incremental non-participating securities: | |||||||||||||||||||||||||||||
Share-based payment awards | 1,163 | 635 | 1,035 | 522 | ||||||||||||||||||||||||||
Equity Units | 32,134 | 439 | 59,171 | 146 | ||||||||||||||||||||||||||
Forward sale agreements | 977 | 613 | 415 | |||||||||||||||||||||||||||
Weighted-average shares - Diluted EPS | Weighted-average shares - Diluted EPS | 664,343 | 582,636 | 662,094 | 580,930 | |||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||||||
Basic EPS | Basic EPS | Basic EPS | ||||||||||||||||||||||||||||
Available to PPL common shareowners: | Available to PPL common shareowners: | Available to PPL common shareowners: | ||||||||||||||||||||||||||||
Income from continuing operations after income taxes | $ | 0.61 | $ | 0.76 | $ | 2.01 | $ | 1.91 | Income from continuing operations after income taxes | $ | 0.65 | $ | 0.61 | $ | 2.03 | $ | 2.01 | |||||||||||||
Income (loss) from discontinued operations (net of income taxes) | (0.01) | 0.01 | Income (loss) from discontinued operations (net of income taxes) | (0.01) | ||||||||||||||||||||||||||
Net Income | $ | 0.61 | $ | 0.76 | $ | 2.00 | $ | 1.92 | Net Income | $ | 0.65 | $ | 0.61 | $ | 2.03 | $ | 2.00 | |||||||||||||
Diluted EPS | Diluted EPS | Diluted EPS | ||||||||||||||||||||||||||||
Available to PPL common shareowners: | Available to PPL common shareowners: | Available to PPL common shareowners: | ||||||||||||||||||||||||||||
Income from continuing operations after income taxes | $ | 0.61 | $ | 0.76 | $ | 2.01 | $ | 1.91 | Income from continuing operations after income taxes | $ | 0.62 | $ | 0.61 | $ | 1.90 | $ | 2.01 | |||||||||||||
Income (loss) from discontinued operations (net of income taxes) | (0.01) | Income (loss) from discontinued operations (net of income taxes) | (0.01) | |||||||||||||||||||||||||||
Net Income | $ | 0.61 | $ | 0.76 | $ | 2.00 | $ | 1.91 | Net Income | $ | 0.62 | $ | 0.61 | $ | 1.90 | $ | 2.00 |
(Shares in thousands) | (Shares in thousands) | Three Months | Nine Months | (Shares in thousands) | Three Months | Nine Months | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Stock-based compensation plans (a) | Stock-based compensation plans (a) | 159 | 512 | Stock-based compensation plans (a) | 85 | 159 | 1,469 | 512 | ||||||||||||||
ESOP | ESOP | 280 | ESOP | 275 | 280 | |||||||||||||||||
DRIP | DRIP | 598 | 1,773 | DRIP | 598 | 549 | 1,773 |
(a) | Includes stock options exercised, vesting of restricted stock and restricted stock units and conversion of stock units granted to directors. |
Three Months | Nine Months | Three Months | Nine Months | |||||||||||||||||||||
(Shares in thousands) | 2012 | 2011 | 2012 | 2011 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Stock options | 4,935 | 4,473 | 5,622 | 5,377 | 1,136 | 4,935 | 4,793 | 5,622 | ||||||||||||||||
Performance units | 3 | 76 | 3 | 1 | 73 | 76 | ||||||||||||||||||
Restricted stock units | 39 |
(PPL) | |||||||||||||||
Three Months | Nine Months | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Reconciliation of Income Tax Expense | |||||||||||||||
Federal income tax on Income from Continuing Operations Before | |||||||||||||||
Income Taxes at statutory tax rate - 35% | $ | 130 | $ | 196 | $ | 539 | $ | 518 | |||||||
Increase (decrease) due to: | |||||||||||||||
State income taxes, net of federal income tax benefit | 6 | 8 | 38 | 47 | |||||||||||
State valuation allowance adjustments (a) | 2 | 2 | 11 | ||||||||||||
Impact of lower U.K. income tax rates (b) | (30) | (12) | (75) | (31) | |||||||||||
U.S. income tax on foreign earnings - net of foreign tax credit (c) | 1 | (10) | 2 | (25) | |||||||||||
Federal and state tax reserve adjustments | (2) | 4 | (7) | 1 | |||||||||||
Foreign tax reserve adjustments (d) | 2 | (5) | 2 | ||||||||||||
Enactment of the U.K.'s Finance Acts 2012 and 2011 (b) | (74) | (69) | (74) | (69) | |||||||||||
Federal income tax credits | (5) | (4) | (12) | (11) | |||||||||||
Amortization of investment tax credit | (2) | (2) | (7) | (6) | |||||||||||
Depreciation not normalized (a) | (2) | (1) | (6) | (7) | |||||||||||
State deferred tax rate change (e) | (6) | (17) | |||||||||||||
Net operating loss carryforward adjustments (f) | (9) | ||||||||||||||
Nondeductible acquisition-related costs (g) | 1 | 9 | |||||||||||||
Other | (1) | (3) | (5) | (10) | |||||||||||
Total increase (decrease) | (113) | (86) | (175) | (89) | |||||||||||
Total income taxes from continuing operations | $ | 17 | $ | 110 | $ | 364 | $ | 429 |
(PPL) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Federal income tax on Income from Continuing Operations Before | ||||||||||||||||
Income Taxes at statutory tax rate - 35% | $ | 173 | $ | 130 | $ | 550 | $ | 539 |
Three Months | Nine Months | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Increase (decrease) due to: | ||||||||||||||||
State income taxes, net of federal income tax benefit | 12 | 6 | 29 | 38 | ||||||||||||
State valuation allowance adjustments (a) | 38 | 2 | 38 | 2 | ||||||||||||
Impact of lower U.K. income tax rates (b) | (38) | (30) | (101) | (75) | ||||||||||||
U.S. income tax on foreign earnings - net of foreign tax credit (c) | 10 | 1 | 5 | 2 | ||||||||||||
Federal and state tax reserve adjustments (d) | (1) | (2) | (41) | (7) | ||||||||||||
Foreign tax reserve adjustments | (2) | (2) | (5) | |||||||||||||
Federal and state income tax return adjustments | (4) | (4) | ||||||||||||||
Enactment of the U.K.'s Finance Acts 2013 and 2012 (b) | (93) | (74) | (93) | (74) | ||||||||||||
Federal income tax credits | (4) | (5) | (9) | (12) | ||||||||||||
Amortization of investment tax credit | (1) | (2) | (6) | (7) | ||||||||||||
Depreciation not normalized | (2) | (2) | (6) | (6) | ||||||||||||
State deferred tax rate change (e) | (6) | (17) | ||||||||||||||
Net operating loss carryforward adjustments (f) | (9) | |||||||||||||||
Intercompany interest on U.K. financing entities (g) | (2) | (3) | (7) | (8) | ||||||||||||
Other | (2) | 2 | (9) | 3 | ||||||||||||
Total increase (decrease) | (89) | (113) | (206) | (175) | ||||||||||||
Total income taxes from continuing operations | $ | 84 | $ | 17 | $ | 344 | $ | 364 |
(a) | During the three and nine months ended September 30, 2013, PPL recorded an increase in state deferred income tax expense related to a deferred tax valuation allowance primarily due to a decrease in projected future taxable income over the remaining carryforward period of Pennsylvania net operating losses. |
(b) | The U.K. Finance Act |
(c) | During the three and nine months ended September 30, |
(d) |
(e) | During the three and nine months ended September 30, 2012, PPL recorded adjustments related to state deferred tax liabilities. |
(f) | During the nine months ended September 30, 2012, PPL recorded adjustments to deferred taxes related to net operating loss carryforwards of LKE based on income tax return adjustments. |
(g) |
(PPL Energy Supply) | (PPL Energy Supply) | (PPL Energy Supply) | |||||||||||||||||||||||||||||
Three Months | Nine Months | Three Months | Nine Months | ||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Reconciliation of Income Tax Expense | |||||||||||||||||||||||||||||||
Federal income tax on Income from Continuing Operations Before | |||||||||||||||||||||||||||||||
Federal income tax on Income Before Income Taxes at statutory | Federal income tax on Income Before Income Taxes at statutory | ||||||||||||||||||||||||||||||
Income Taxes at statutory tax rate - 35% | $ | 25 | $ | 96 | $ | 205 | $ | 272 | tax rate - 35% | $ | 70 | $ | 25 | $ | 98 | $ | 205 | ||||||||||||||
Increase (decrease) due to: | Increase (decrease) due to: | Increase (decrease) due to: | |||||||||||||||||||||||||||||
State income taxes, net of federal income tax benefit | 1 | 11 | 25 | 38 | State income taxes, net of federal income tax benefit | 7 | 1 | 10 | 25 | ||||||||||||||||||||||
State valuation allowance adjustments (a) | 2 | 2 | 6 | State valuation allowance adjustments | 4 | 2 | 4 | 2 | |||||||||||||||||||||||
Federal and state tax reserve adjustments | 1 | 2 | Federal and state tax reserve adjustments (a) | 6 | |||||||||||||||||||||||||||
Federal income tax credits | (4) | (5) | (10) | (11) | Federal income tax credits | (4) | (4) | (7) | (10) | ||||||||||||||||||||||
State deferred tax rate change (b) | (6) | (17) | State deferred tax rate change (b) | (6) | (17) | ||||||||||||||||||||||||||
Other | (2) | 1 | (3) | (2) | Other | (3) | (2) | (5) | (3) | ||||||||||||||||||||||
Total increase (decrease) | (9) | 8 | (3) | 33 | Total increase (decrease) | 4 | (9) | 8 | (3) | ||||||||||||||||||||||
Total income taxes from continuing operations | $ | 16 | $ | 104 | $ | 202 | $ | 305 | |||||||||||||||||||||||
Total income taxes | Total income taxes | $ | 74 | $ | 16 | $ | 106 | $ | 202 |
(a) |
(b) | During the three and nine months ended September 30, 2012, PPL Energy Supply recorded adjustments related to state deferred tax liabilities. |
(PPL Electric) | |||||||||||||||
Three Months | Nine Months | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Reconciliation of Income Tax Expense | |||||||||||||||
Federal income tax on Income Before Income Taxes at statutory | |||||||||||||||
tax rate - 35% | $ | 17 | $ | 16 | $ | 51 | $ | 64 | |||||||
Increase (decrease) due to: | |||||||||||||||
State income taxes, net of federal income tax benefit | 2 | 2 | 7 | 9 | |||||||||||
Federal and state tax reserve adjustments | (2) | (2) | (5) | (6) | |||||||||||
Federal and state income tax return adjustments (a) | (2) | ||||||||||||||
Depreciation not normalized (a) | (1) | (1) | (5) | (6) | |||||||||||
Other | (1) | (1) | (3) | ||||||||||||
Total increase (decrease) | (1) | (2) | (4) | (8) | |||||||||||
Total income taxes | $ | 16 | $ | 14 | $ | 47 | $ | 56 |
(PPL Electric) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Federal income tax on Income Before Income Taxes at statutory | ||||||||||||||||
tax rate - 35% | $ | 27 | $ | 17 | $ | 85 | $ | 51 | ||||||||
Increase (decrease) due to: | ||||||||||||||||
State income taxes, net of federal income tax benefit | 5 | 2 | 13 | 7 | ||||||||||||
Federal and state tax reserve adjustments | (2) | (2) | (6) | (5) | ||||||||||||
Depreciation not normalized | (2) | (1) | (6) | (5) | ||||||||||||
Other | (2) | (3) | (1) | |||||||||||||
Total increase (decrease) | (1) | (1) | (2) | (4) | ||||||||||||
Total income taxes | $ | 26 | $ | 16 | $ | 83 | $ | 47 |
(LKE) | (LKE) | (LKE) | |||||||||||||||||||||||||||||
Three Months | Nine Months | Three Months | Nine Months | ||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Reconciliation of Income Tax Expense | |||||||||||||||||||||||||||||||
Federal income tax on Income from Continuing Operations Before | |||||||||||||||||||||||||||||||
Federal income tax on Income from Continuing Operations Before | Federal income tax on Income from Continuing Operations Before | ||||||||||||||||||||||||||||||
Income Taxes at statutory tax rate - 35% | $ | 46 | $ | 50 | $ | 96 | $ | 120 | Income Taxes at statutory tax rate - 35% | $ | 56 | $ | 46 | $ | 144 | $ | 96 | ||||||||||||||
Increase (decrease) due to: | Increase (decrease) due to: | Increase (decrease) due to: | |||||||||||||||||||||||||||||
State income taxes, net of federal income tax benefit | 5 | 4 | 7 | 11 | State income taxes, net of federal income tax benefit | 6 | 5 | 14 | 7 | ||||||||||||||||||||||
Amortization of investment tax credit | (1) | (1) | (4) | (4) | Amortization of investment tax credit | (1) | (1) | (3) | (4) | ||||||||||||||||||||||
Net operating loss carryforward adjustments (a) | (9) | Net operating loss carryforward adjustments (a) | (9) | ||||||||||||||||||||||||||||
Other | (2) | (1) | (1) | (2) | Other | (2) | (2) | (2) | (1) | ||||||||||||||||||||||
Total increase (decrease) | 2 | 2 | (7) | 5 | Total increase (decrease) | 3 | 2 | 9 | (7) | ||||||||||||||||||||||
Total income taxes from continuing operations | Total income taxes from continuing operations | $ | 48 | $ | 52 | $ | 89 | $ | 125 | Total income taxes from continuing operations | $ | 59 | $ | 48 | $ | 153 | $ | 89 |
During the nine months ended September 30, 2012, LKE recorded adjustments to deferred taxes related to net operating loss carryforwards based on income tax return adjustments. |
(LG&E) | (LG&E) | (LG&E) | |||||||||||||||||||||||||||||
Three Months | Nine Months | Three Months | Nine Months | ||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Reconciliation of Income Tax Expense | |||||||||||||||||||||||||||||||
Federal income tax on Income Before Income Taxes at statutory | |||||||||||||||||||||||||||||||
Federal income tax on Income Before Income Taxes at statutory | Federal income tax on Income Before Income Taxes at statutory | ||||||||||||||||||||||||||||||
tax rate - 35% | $ | 24 | $ | 23 | $ | 52 | $ | 56 | tax rate - 35% | $ | 27 | $ | 24 | $ | 67 | $ | 52 | ||||||||||||||
Increase (decrease) due to: | Increase (decrease) due to: | Increase (decrease) due to: | |||||||||||||||||||||||||||||
State income taxes, net of federal income tax benefit | 2 | 2 | 5 | 5 | State income taxes, net of federal income tax benefit | 3 | 2 | 7 | 5 | ||||||||||||||||||||||
Other | (1) | (1) | (3) | (3) | Other | (3) | (1) | (5) | (3) | ||||||||||||||||||||||
Total increase (decrease) | 1 | 1 | 2 | 2 | Total increase (decrease) | 1 | 2 | 2 | |||||||||||||||||||||||
Total income taxes | Total income taxes | $ | 25 | $ | 24 | $ | 54 | $ | 58 | Total income taxes | $ | 27 | $ | 25 | $ | 69 | $ | 54 |
(KU) | (KU) | (KU) | |||||||||||||||||||||||||||||
Three Months | Nine Months | Three Months | Nine Months | ||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Reconciliation of Income Tax Expense | |||||||||||||||||||||||||||||||
Federal income tax on Income Before Income Taxes at statutory | |||||||||||||||||||||||||||||||
Federal income tax on Income Before Income Taxes at statutory | Federal income tax on Income Before Income Taxes at statutory | ||||||||||||||||||||||||||||||
tax rate - 35% | $ | 28 | $ | 31 | $ | 66 | $ | 79 | tax rate - 35% | $ | 35 | $ | 28 | $ | 95 | $ | 66 | ||||||||||||||
Increase (decrease) due to: | Increase (decrease) due to: | Increase (decrease) due to: | |||||||||||||||||||||||||||||
State income taxes, net of federal income tax benefit | 3 | 3 | 6 | 7 | State income taxes, net of federal income tax benefit | 4 | 3 | 10 | 6 | ||||||||||||||||||||||
Other | (1) | (2) | (2) | (4) | Other | (3) | (1) | (4) | (2) | ||||||||||||||||||||||
Total increase (decrease) | 2 | 1 | 4 | 3 | Total increase (decrease) | 1 | 2 | 6 | 4 | ||||||||||||||||||||||
Total income taxes | Total income taxes | $ | 30 | $ | 32 | $ | 70 | $ | 82 | Total income taxes | $ | 36 | $ | 30 | $ | 101 | $ | 70 |
Three Months | Nine Months | ||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
PPL | |||||||||||||
Beginning of period | $ | 113 | $ | 250 | $ | 145 | $ | 251 | |||||
Additions based on tax positions of prior years | 2 | 1 | 6 | 2 | |||||||||
Reductions based on tax positions of prior years | (14) | (31) | (14) | ||||||||||
Additions based on tax positions related to the current year | 4 | 4 | |||||||||||
Reductions based on tax positions related to the current year | (1) | (1) | (2) | (3) | |||||||||
Lapse of applicable statutes of limitations | (2) | (3) | (6) | (8) | |||||||||
Effects of foreign currency translation | (2) | 3 | |||||||||||
End of period (a) | $ | 112 | $ | 235 | $ | 112 | $ | 235 | |||||
Three Months | Nine Months | ||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
PPL Energy Supply | |||||||||||||
Beginning of period | $ | 31 | $ | 28 | $ | 28 | $ | 183 | |||||
Additions based on tax positions of prior years | 4 | ||||||||||||
Reductions based on tax positions of prior years | (1) | ||||||||||||
Derecognize unrecognized tax benefits (b) | (155) | ||||||||||||
End of period | $ | 31 | $ | 28 | $ | 31 | $ | 28 | |||||
PPL Electric | |||||||||||||
Beginning of period | $ | 43 | $ | 56 | $ | 73 | $ | 62 | |||||
Reductions based on tax positions of prior years | (1) | (28) | |||||||||||
Additions based on tax positions related to the current year | 1 | ||||||||||||
Reductions based on tax positions related to the current year | (1) | ||||||||||||
Lapse of applicable statutes of limitations | (2) | (3) | (6) | (8) | |||||||||
End of period | $ | 40 | $ | 53 | $ | 40 | $ | 53 |
Three Months | Nine Months | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
PPL | |||||||||||||
Beginning of period | $ | 36 | $ | 113 | $ | 92 | $ | 145 | |||||
Additions based on tax positions of prior years | 2 | 6 | |||||||||||
Reductions based on tax positions of prior years | (26) | (31) | |||||||||||
Additions based on tax positions related to the current year | �� | 4 | |||||||||||
Reductions based on tax positions related to the current year | (1) | (2) | |||||||||||
Settlements | (30) | ||||||||||||
Lapse of applicable statutes of limitations | (5) | (2) | (9) | (6) | |||||||||
End of period | $ | 31 | $ | 112 | $ | 31 | $ | 112 | |||||
PPL Energy Supply | |||||||||||||
Beginning of period | $ | 15 | $ | 31 | $ | 30 | $ | 28 | |||||
Additions based on tax positions of prior years | 4 | ||||||||||||
Reductions based on tax positions of prior years | (15) | (1) | |||||||||||
End of period | $ | 15 | $ | 31 | $ | 15 | $ | 31 | |||||
PPL Electric | |||||||||||||
Beginning of period | $ | 12 | $ | 43 | $ | 26 | $ | 73 | |||||
Reductions based on tax positions of prior years | (1) | (10) | (28) | ||||||||||
Additions based on tax positions related to the current year | 1 | ||||||||||||
Lapse of applicable statutes of limitations | (3) | (2) | (7) | (6) | |||||||||
End of period | $ | 9 | $ | 40 | $ | 9 | $ | 40 |
Increase | Decrease | Increase | Decrease | |||||||||||||
PPL | PPL | $ | 21 | $ | 105 | PPL | $ | 16 | $ | 30 | ||||||
PPL Energy Supply | PPL Energy Supply | 1 | 31 | PPL Energy Supply | 15 | |||||||||||
PPL Electric | PPL Electric | 22 | 38 | PPL Electric | 16 | 8 |
2013 | 2012 | |||||
PPL | $ | 21 | $ | 34 | ||
PPL Energy Supply | 14 | 14 |
2012 | 2011 | |||||
PPL | $ | 34 | $ | 172 | ||
PPL Energy Supply | 14 | 12 | ||||
PPL Electric | 4 | 9 |
PPL | PPL Electric | PPL | PPL Electric | |||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Current Regulatory Assets: | Current Regulatory Assets: | Current Regulatory Assets: | ||||||||||||||||||||||||
ECR | $ | 7 | ||||||||||||||||||||||||
Gas supply clause | $ | 6 | $ | 6 | Gas supply clause | 13 | $ | 11 | ||||||||||||||||||
Fuel adjustment clause | 13 | 3 | Fuel adjustment clause | 6 | ||||||||||||||||||||||
Other | 2 | Other | 11 | 2 | $ | 2 | ||||||||||||||||||||
Total current regulatory assets | Total current regulatory assets | $ | 21 | $ | 9 | Total current regulatory assets | $ | 31 | $ | 19 | $ | 2 | ||||||||||||||
Noncurrent Regulatory Assets: | Noncurrent Regulatory Assets: | Noncurrent Regulatory Assets: | ||||||||||||||||||||||||
Defined benefit plans | $ | 583 | $ | 615 | $ | 266 | $ | 276 | Defined benefit plans | $ | 683 | $ | 730 | $ | 345 | $ | 362 | |||||||||
Taxes recoverable through future rates | 299 | 289 | 299 | 289 | Taxes recoverable through future rates | 302 | 293 | 302 | 293 | |||||||||||||||||
Storm costs | 143 | 154 | 31 | 31 | Storm costs | 152 | 168 | 55 | 59 | |||||||||||||||||
Unamortized loss on debt | 99 | 110 | 68 | 77 | Unamortized loss on debt | 88 | 96 | 58 | 65 | |||||||||||||||||
Interest rate swaps | 71 | 69 | Interest rate swaps | 49 | 67 | |||||||||||||||||||||
Accumulated cost of removal of utility plant | 67 | 53 | 67 | 53 | Accumulated cost of removal of utility plant | 95 | 71 | 95 | 71 | |||||||||||||||||
Coal contracts (a) | 5 | 11 | AROs | 37 | 26 | |||||||||||||||||||||
AROs | 26 | 18 | Other | 17 | 32 | 2 | 3 | |||||||||||||||||||
Other | 30 | 30 | 2 | 3 | ||||||||||||||||||||||
Total noncurrent regulatory assets | Total noncurrent regulatory assets | $ | 1,323 | $ | 1,349 | $ | 733 | $ | 729 | Total noncurrent regulatory assets | $ | 1,423 | $ | 1,483 | $ | 857 | $ | 853 |
Current Regulatory Liabilities: | |||||||||||||
Generation supply charge | $ | 21 | $ | 27 | $ | 21 | $ | 27 | |||||
ECR | 4 | ||||||||||||
Gas supply clause | 2 | 4 | |||||||||||
Transmission service charge | 9 | 6 | 9 | 6 | |||||||||
Transmission formula rate | 9 | 9 | |||||||||||
Universal service rider | 11 | 17 | 11 | 17 | |||||||||
Gas line tracker | 6 | ||||||||||||
Other | 10 | 3 | 1 | 2 | |||||||||
Total current regulatory liabilities | $ | 68 | $ | 61 | $ | 51 | $ | 52 | |||||
Noncurrent Regulatory Liabilities: | |||||||||||||
Accumulated cost of removal of utility plant | $ | 690 | $ | 679 | |||||||||
Coal contracts (a) | 108 | 141 | |||||||||||
Power purchase agreement - OVEC (a) | 102 | 108 | |||||||||||
Net deferred tax assets | 32 | 34 | |||||||||||
Act 129 compliance rider | 14 | 8 | $ | 14 | $ | 8 | |||||||
Defined benefit plans | 18 | 17 | |||||||||||
Interest rate swaps | 84 | 14 | |||||||||||
Other | 6 | 9 | |||||||||||
Total noncurrent regulatory liabilities | $ | 1,054 | $ | 1,010 | $ | 14 | $ | 8 |
LKE | LG&E | KU | |||||||||||||||||
September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Current Regulatory Assets: | |||||||||||||||||||
ECR | $ | 7 | $ | 2 | $ | 5 | |||||||||||||
Gas supply clause | 13 | $ | 11 | 13 | $ | 11 | |||||||||||||
Fuel adjustment clause | 6 | 6 | |||||||||||||||||
Other | 9 | 2 | 4 | 2 | 5 | ||||||||||||||
Total current regulatory assets | $ | 29 | $ | 19 | $ | 19 | $ | 19 | $ | 10 |
PPL | PPL Electric | ||||||||||||
September 30, | December 31, | September 30, | December 31, | ||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
Current Regulatory Liabilities: | |||||||||||||
Generation supply charge | $ | 24 | $ | 42 | $ | 24 | $ | 42 | |||||
ECR | 7 | 7 | |||||||||||
Gas supply clause | 5 | 6 | |||||||||||
Transmission service charge | 5 | 2 | 5 | 2 | |||||||||
Transmission formula rate | 8 | 5 | 8 | 5 | |||||||||
Universal service rider | 12 | 1 | 12 | 1 | |||||||||
Other | 4 | 10 | 3 | 3 | |||||||||
Total current regulatory liabilities | $ | 65 | $ | 73 | $ | 52 | $ | 53 | |||||
Noncurrent Regulatory Liabilities: | |||||||||||||
Accumulated cost of removal of utility plant | $ | 673 | $ | 651 | |||||||||
Coal contracts (a) | 151 | 180 | |||||||||||
Power purchase agreement - OVEC (a) | 110 | 116 | |||||||||||
Net deferred tax assets | 35 | 39 | |||||||||||
Act 129 compliance rider | 12 | 7 | $ | 12 | $ | 7 | |||||||
Defined benefit plans | 10 | 9 | |||||||||||
Other | 8 | 8 | |||||||||||
Total noncurrent regulatory liabilities | $ | 999 | $ | 1,010 | $ | 12 | $ | 7 |
LKE | LG&E | KU | LKE | LG&E | KU | |||||||||||||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Current Regulatory Assets: | ||||||||||||||||||||||||||||||||||||||
Gas supply clause | $ | 6 | $ | 6 | $ | 6 | $ | 6 | ||||||||||||||||||||||||||||||
Fuel adjustment clause | 13 | 3 | 10 | 3 | $ | 3 | ||||||||||||||||||||||||||||||||
Other | 2 | 1 | 1 | |||||||||||||||||||||||||||||||||||
Total current regulatory assets | $ | 21 | $ | 9 | $ | 17 | $ | 9 | $ | 4 | ||||||||||||||||||||||||||||
Noncurrent Regulatory Assets: | Noncurrent Regulatory Assets: | Noncurrent Regulatory Assets: | ||||||||||||||||||||||||||||||||||||
Defined benefit plans | $ | 317 | $ | 339 | $ | 210 | $ | 225 | $ | 107 | $ | 114 | Defined benefit plans | $ | 338 | $ | 368 | $ | 212 | $ | 232 | $ | 126 | $ | 136 | |||||||||||||
Storm costs | 112 | 123 | 61 | 66 | 51 | 57 | Storm costs | 97 | 109 | 53 | 59 | 44 | 50 | |||||||||||||||||||||||||
Unamortized loss on debt | 31 | 33 | 20 | 21 | 11 | 12 | Unamortized loss on debt | 30 | 31 | 19 | 20 | 11 | 11 | |||||||||||||||||||||||||
Interest rate swaps | 71 | 69 | 71 | 69 | Interest rate swaps | 49 | 67 | 49 | 67 | |||||||||||||||||||||||||||||
Coal contracts (a) | 5 | 11 | 2 | 5 | 3 | 6 | AROs | 37 | 26 | 20 | 15 | 17 | 11 | |||||||||||||||||||||||||
AROs | 26 | 18 | 14 | 11 | 12 | 7 | Other | 15 | 29 | 6 | 7 | 9 | 22 | |||||||||||||||||||||||||
Other | 28 | 27 | 6 | 6 | 22 | 21 | ||||||||||||||||||||||||||||||||
Total noncurrent regulatory assets | Total noncurrent regulatory assets | $ | 590 | $ | 620 | $ | 384 | $ | 403 | $ | 206 | $ | 217 | Total noncurrent regulatory assets | $ | 566 | $ | 630 | $ | 359 | $ | 400 | $ | 207 | $ | 230 |
Current Regulatory Liabilities: | Current Regulatory Liabilities: | Current Regulatory Liabilities: | ||||||||||||||||||||||||||||||||||||||
ECR | $ | 4 | $ | 4 | ||||||||||||||||||||||||||||||||||||
ECR | $ | 7 | $ | 7 | $ | 7 | $ | 7 | Gas supply clause | $ | 2 | 4 | $ | 2 | $ | 4 | ||||||||||||||||||||||||
Gas supply clause | 5 | 6 | $ | 5 | $ | 6 | Gas line tracker | 6 | 6 | |||||||||||||||||||||||||||||||
Other | 1 | 7 | 4 | 1 | 3 | Other | 9 | 1 | 3 | $ | 6 | 1 | ||||||||||||||||||||||||||||
Total current regulatory liabilities | Total current regulatory liabilities | $ | 13 | $ | 20 | $ | 5 | $ | 10 | $ | 8 | $ | 10 | Total current regulatory liabilities | $ | 17 | $ | 9 | $ | 11 | $ | 4 | $ | 6 | $ | 5 | ||||||||||||||
Noncurrent Regulatory Liabilities: | Noncurrent Regulatory Liabilities: | Noncurrent Regulatory Liabilities: | ||||||||||||||||||||||||||||||||||||||
Accumulated cost of removal | Accumulated cost of removal | |||||||||||||||||||||||||||||||||||||||
of utility plant | $ | 673 | $ | 651 | $ | 294 | $ | 286 | $ | 379 | $ | 365 | of utility plant | $ | 690 | $ | 679 | $ | 300 | $ | 297 | $ | 390 | $ | 382 | |||||||||||||||
Coal contracts (a) | 151 | 180 | 66 | 78 | 85 | 102 | Coal contracts (a) | 108 | 141 | 47 | 61 | 61 | 80 | |||||||||||||||||||||||||||
Power purchase agreement - OVEC (a) | 110 | 116 | 76 | 80 | 34 | 36 | Power purchase agreement - OVEC (a) | 102 | 108 | 71 | 75 | 31 | 33 | |||||||||||||||||||||||||||
Net deferred tax assets | 35 | 39 | 28 | 31 | 7 | 8 | Net deferred tax assets | 32 | 34 | 26 | 28 | 6 | 6 | |||||||||||||||||||||||||||
Defined benefit plans | 10 | 9 | 10 | 9 | Defined benefit plans | 18 | 17 | 18 | 17 | |||||||||||||||||||||||||||||||
Other | 8 | 8 | 3 | 3 | 5 | 5 | Interest rate swaps | 84 | 14 | 42 | 7 | 42 | 7 | |||||||||||||||||||||||||||
Other | 6 | 9 | 3 | 3 | 3 | 6 | ||||||||||||||||||||||||||||||||||
Total noncurrent regulatory liabilities | Total noncurrent regulatory liabilities | $ | 987 | $ | 1,003 | $ | 467 | $ | 478 | $ | 520 | $ | 525 | Total noncurrent regulatory liabilities | $ | 1,040 | $ | 1,002 | $ | 489 | $ | 471 | $ | 551 | $ | 531 |
These |
September 30, 2012 | December 31, 2011 | |||||||||||||||||||||||||
Letters of | Letters of | |||||||||||||||||||||||||
Credit Issued | Credit Issued | |||||||||||||||||||||||||
and | and | |||||||||||||||||||||||||
Commercial | Commercial | |||||||||||||||||||||||||
Expiration | Borrowed | Paper | Unused | Borrowed | Paper | |||||||||||||||||||||
Date | Capacity | (a) | Backstop | Capacity | (a) | Backstop | ||||||||||||||||||||
PPL | ||||||||||||||||||||||||||
WPD Credit Facilities | ||||||||||||||||||||||||||
PPL WW Syndicated | ||||||||||||||||||||||||||
Credit Facility (b) | Jan. 2013 | £ | 150 | £ | 107 | n/a | £ | 43 | £ | 111 | n/a | |||||||||||||||
WPD (South West) | ||||||||||||||||||||||||||
Syndicated Credit Facility (c) | Jan. 2017 | 245 | n/a | 245 | n/a | |||||||||||||||||||||
WPD (East Midlands) | ||||||||||||||||||||||||||
Syndicated Credit Facility | Apr. 2016 | 300 | 300 | £ | 70 | |||||||||||||||||||||
WPD (West Midlands) | ||||||||||||||||||||||||||
Syndicated Credit Facility | Apr. 2016 | 300 | 300 | 71 | ||||||||||||||||||||||
Uncommitted Credit Facilities | 84 | £ | 4 | 80 | 3 | |||||||||||||||||||||
Total WPD Credit Facilities (d) | £ | 1,079 | £ | 107 | £ | 4 | £ | 968 | £ | 111 | £ | 144 | ||||||||||||||
PPL Energy Supply | ||||||||||||||||||||||||||
Syndicated Credit Facility (e) | Oct. 2016 | $ | 3,000 | $ | 468 | $ | 2,532 | $ | 541 | |||||||||||||||||
Letter of Credit Facility | Mar. 2013 | 200 | n/a | 126 | 74 | n/a | 89 | |||||||||||||||||||
Uncommitted Credit Facilities (f) | 175 | n/a | 32 | 143 | n/a | n/a | ||||||||||||||||||||
Total PPL Energy Supply | ||||||||||||||||||||||||||
Credit Facilities | $ | 3,375 | $ | 626 | $ | 2,749 | $ | 630 | ||||||||||||||||||
PPL Electric | ||||||||||||||||||||||||||
Syndicated Credit Facility (e) (g) | Oct. 2016 | $ | 300 | $ | 1 | $ | 299 | $ | 1 | |||||||||||||||||
Asset-backed Credit Facility (h) | Sept. 2013 | 100 | n/a | 100 | n/a | |||||||||||||||||||||
Total PPL Electric Credit Facilities | $ | 400 | $ | 1 | $ | 399 | $ | 1 | ||||||||||||||||||
LG&E | ||||||||||||||||||||||||||
Syndicated Credit Facility (e) | Oct. 2016 | $ | 400 | $ | 400 | |||||||||||||||||||||
KU | ||||||||||||||||||||||||||
Syndicated Credit Facility (e) | Oct. 2016 | $ | 400 | $ | 400 | |||||||||||||||||||||
Letter of Credit Facility (i) | Apr. 2014 | 198 | $ | 198 | n/a | $ | 198 | |||||||||||||||||||
Total KU Credit Facilities | $ | 598 | $ | 198 | $ | 400 | $ | 198 |
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Letters of | Letters of | |||||||||||||||||||||||||
Credit Issued | Credit Issued | |||||||||||||||||||||||||
and | and | |||||||||||||||||||||||||
Commercial | Commercial | |||||||||||||||||||||||||
Expiration | Paper | Unused | Paper | |||||||||||||||||||||||
Date | Capacity | Borrowed | Backup | Capacity | Borrowed | Backup | ||||||||||||||||||||
PPL | ||||||||||||||||||||||||||
WPD Credit Facilities | ||||||||||||||||||||||||||
PPL WW Syndicated | ||||||||||||||||||||||||||
Credit Facility (a) (b) | Dec. 2016 | £ | 210 | £ | 106 | n/a | £ | 104 | £ | 106 | n/a | |||||||||||||||
WPD (South West) | ||||||||||||||||||||||||||
Syndicated Credit Facility | Jan. 2017 | 245 | n/a | 245 | n/a | |||||||||||||||||||||
WPD (East Midlands) | ||||||||||||||||||||||||||
Syndicated Credit Facility (b) | Apr. 2016 | 300 | 44 | 256 | ||||||||||||||||||||||
WPD (West Midlands) | ||||||||||||||||||||||||||
Syndicated Credit Facility (b) | Apr. 2016 | 300 | 34 | 266 | ||||||||||||||||||||||
Uncommitted Credit Facilities | 84 | £ | 5 | 79 | £ | 4 | ||||||||||||||||||||
Total WPD Credit Facilities (c) | £ | 1,139 | £ | 184 | £ | 5 | £ | 950 | £ | 106 | £ | 4 | ||||||||||||||
PPL Energy Supply | ||||||||||||||||||||||||||
Syndicated Credit Facility | Nov. 2017 | $ | 3,000 | $ | 61 | $ | 2,939 | $ | 499 | |||||||||||||||||
Letter of Credit Facility (d) | Mar. 2014 | 150 | n/a | 109 | 41 | n/a | 132 | |||||||||||||||||||
Uncommitted Credit Facilities (e) | 175 | n/a | 51 | 124 | n/a | 40 | ||||||||||||||||||||
Total PPL Energy Supply Credit Facilities | $ | 3,325 | $ | 221 | $ | 3,104 | $ | 671 | ||||||||||||||||||
PPL Electric | ||||||||||||||||||||||||||
Syndicated Credit Facility | Oct. 2017 | $ | 300 | $ | 1 | $ | 299 | $ | 1 | |||||||||||||||||
LG&E | ||||||||||||||||||||||||||
Syndicated Credit Facility | Nov. 2017 | $ | 500 | $ | 72 | $ | 428 | $ | 55 | |||||||||||||||||
KU | ||||||||||||||||||||||||||
Syndicated Credit Facility | Nov. 2017 | $ | 400 | $ | 140 | $ | 260 | $ | 70 | |||||||||||||||||
Letter of Credit Facility (f) | May 2016 | 198 | 198 | 198 | ||||||||||||||||||||||
Total KU Credit Facilities | $ | 598 | $ | 338 | $ | 260 | $ | 268 |
In |
PPL WW's amounts borrowed at September 30, 2013 and December 31, 2012 were USD-denominated borrowings of $166 million and $171 million, which equated to £106 million at the time of borrowings and bore interest at 1.89% and 0.85%. WPD (East Midlands) amount borrowed at September 30, 2013 was a GBP-denominated borrowing of £44 million, which equated to $68 million and bore interest at 1.30%. WPD (West Midlands) amount borrowed at September 30, 2013 was a GBP-denominated borrowing of £34 million, which equated to $53 million and bore interest at 1.30%. |
(c) | At September 30, |
(d) | In February 2013, PPL Energy Supply extended the expiration date from March 2013 and, effective April 2013, the capacity was reduced from $200 million. |
(e) | In |
(f) | In |
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||
Weighted - | Commercial | Weighted - | Commercial | ||||||||||||||||||||
Average | Paper | Unused | Average | Paper | |||||||||||||||||||
Interest Rate | Capacity | Issuances | Capacity | Interest Rate | Issuances | ||||||||||||||||||
PPL Energy Supply | $ | 750 | $ | 750 | 0.50% | $ | 356 | ||||||||||||||||
PPL Electric | 300 | 300 | |||||||||||||||||||||
LG&E (a) | 0.28% | 350 | $ | 72 | 278 | 0.42% | 55 | ||||||||||||||||
KU (a) | 0.28% | 350 | 140 | 210 | 0.42% | 70 | |||||||||||||||||
Total | $ | 1,750 | $ | 212 | $ | 1,538 | $ | 481 |
(a) | In April 2013, the capacity was increased from $250 million. |
PPL Energy | ||||||||||||||||||
Supply | PPL Electric | LKE | LG&E | KU | ||||||||||||||
Dividends/distributions paid to parent/member | $ | 733 | $ | 75 | $ | 95 | $ | 47 | $ | 68 | ||||||||
Capital contributions received from parent/member | 472 | 150 |
PPL Energy | ||||||||||||||||||
Supply | PPL Electric | LKE | LG&E | KU | ||||||||||||||
Dividends/distributions paid to parent/member | $ | 408 | $ | 94 | $ | 116 | $ | 67 | $ | 83 | ||||||||
Capital contributions received from parent/member | 980 | 205 | 146 | 54 | 92 |
Three Months | Nine Months | |||||
Accrued severance at the beginning of period | $ | 8 | $ | 21 | ||
Severance compensation | 2 | 12 | ||||
Severance paid | (2) | (25) | ||||
Accrued severance at the end of period | $ | 8 | $ | 8 |
Pension Benefits | Pension Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months | Nine Months | Three Months | Nine Months | |||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | U.K. | U.S. | U.K. | U.S. | U.K. | U.S. | U.K. | |||||||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
PPL | PPL | PPL | ||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | Service cost | $ | 25 | $ | 24 | $ | 13 | $ | 14 | $ | 77 | $ | 71 | $ | 40 | $ | 31 | Service cost | $ | 31 | $ | 25 | $ | 18 | $ | 13 | $ | 94 | $ | 77 | $ | 52 | $ | 40 | ||||||||||||||||||
Interest cost | Interest cost | 55 | 54 | 85 | 88 | 165 | 163 | 254 | 200 | Interest cost | 53 | 55 | 79 | 85 | 160 | 165 | 238 | 254 | ||||||||||||||||||||||||||||||||||
Expected return on plan assets | Expected return on plan assets | (65) | (61) | (115) | (103) | (195) | (184) | (340) | (243) | Expected return on plan assets | (73) | (65) | (115) | (115) | (220) | (195) | (346) | (340) | ||||||||||||||||||||||||||||||||||
Amortization of: | Amortization of: | Amortization of: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Prior service cost | 6 | 6 | 1 | 1 | 18 | 18 | 3 | 3 | Prior service cost | 6 | 6 | 1 | 17 | 18 | 3 | |||||||||||||||||||||||||||||||||||||
Actuarial (gain) loss | 11 | 7 | 19 | 15 | 32 | 21 | 59 | 44 | Actuarial (gain) loss | 20 | 11 | 37 | 19 | 60 | 32 | 112 | 59 | |||||||||||||||||||||||||||||||||||
Net periodic defined benefit | Net periodic defined benefit | Net periodic defined benefit | ||||||||||||||||||||||||||||||||||||||||||||||||||
costs (credits) prior to | costs (credits) | $ | 37 | $ | 32 | $ | 19 | $ | 3 | $ | 111 | $ | 97 | $ | 56 | $ | 16 | |||||||||||||||||||||||||||||||||||
termination benefits | 32 | 30 | 3 | 15 | 97 | 89 | 16 | 35 | ||||||||||||||||||||||||||||||||||||||||||||
Termination benefits (a) | 45 | 47 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net periodic defined benefit | ||||||||||||||||||||||||||||||||||||||||||||||||||||
costs (credits) | $ | 32 | $ | 30 | $ | 3 | $ | 60 | $ | 97 | $ | 89 | $ | 16 | $ | 82 |
Pension Benefits | ||||||||||||||
Three Months | Nine Months | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
PPL Energy Supply | ||||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 5 | $ | 4 | ||||||
Interest cost | 2 | 2 | 6 | 6 | ||||||||||
Expected return on plan assets | (2) | (2) | (7) | (7) | ||||||||||
Amortization of: | ||||||||||||||
Actuarial (gain) loss | 1 | 1 | 2 | 2 | ||||||||||
Net periodic defined benefit costs (credits) | $ | 2 | $ | 2 | $ | 6 | $ | 5 | ||||||
LKE | ||||||||||||||
Service cost | $ | 6 | $ | 5 | $ | 19 | $ | 16 | ||||||
Interest cost | 16 | 16 | 47 | 48 | ||||||||||
Expected return on plan assets | (20) | (17) | (61) | (52) | ||||||||||
Amortization of: | ||||||||||||||
Prior service cost | 1 | 2 | 3 | 4 | ||||||||||
Actuarial (gain) loss | 8 | 5 | 25 | 16 | ||||||||||
Net periodic defined benefit costs (credits) | $ | 11 | $ | 11 | $ | 33 | $ | 32 | ||||||
LG&E | ||||||||||||||
Service cost | $ | 1 | $ | 2 | $ | 1 | ||||||||
Interest cost | 3 | $ | 4 | 10 | 11 | |||||||||
Expected return on plan assets | (5) | (5) | (15) | (14) | ||||||||||
Amortization of: | ||||||||||||||
Prior service cost | 1 | 1 | 2 | 2 | ||||||||||
Actuarial (gain) loss | 3 | 3 | 10 | 8 | ||||||||||
Net periodic defined benefit costs (credits) | $ | 3 | $ | 3 | $ | 9 | $ | 8 |
Other Postretirement Benefits | |||||||||||||
Three Months | Nine Months | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
PPL | |||||||||||||
Service cost | $ | 4 | $ | 3 | $ | 11 | $ | 9 | |||||
Interest cost | 7 | 7 | 21 | 23 | |||||||||
Expected return on plan assets | (6) | (6) | (18) | (17) | |||||||||
Amortization of: | |||||||||||||
Transition obligation | 1 | ||||||||||||
Prior service cost | 1 | 1 | |||||||||||
Actuarial (gain) loss | 1 | 1 | 4 | 3 | |||||||||
Net periodic defined benefit costs (credits) | $ | 6 | $ | 6 | $ | 18 | $ | 20 |
Pension Benefits | ||||||||||||||
Three Months | Nine Months | |||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||
PPL Energy Supply | ||||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 4 | $ | 3 | ||||||
Interest cost | 2 | 1 | 6 | 5 | ||||||||||
Expected return on plan assets | (2) | (2) | (7) | (6) | ||||||||||
Amortization of: | ||||||||||||||
Actuarial (gain) loss | 1 | 1 | 2 | 2 | ||||||||||
Net periodic defined benefit costs (credits) | $ | 2 | $ | 1 | $ | 5 | $ | 4 | ||||||
LKE | ||||||||||||||
Service cost | $ | 5 | $ | 6 | $ | 16 | $ | 18 | ||||||
Interest cost | 16 | 16 | 48 | 50 | ||||||||||
Expected return on plan assets | (17) | (16) | (52) | (48) | ||||||||||
Amortization of: | ||||||||||||||
Prior service cost | 2 | 2 | 4 | 4 | ||||||||||
Actuarial (gain) loss | 5 | 6 | 16 | 17 | ||||||||||
Net periodic defined benefit costs (credits) | $ | 11 | $ | 14 | $ | 32 | $ | 41 | ||||||
LG&E | ||||||||||||||
Service cost | $ | 1 | $ | 1 | ||||||||||
Interest cost | $ | 4 | $ | 4 | 11 | 11 | ||||||||
Expected return on plan assets | (5) | (4) | (14) | (13) | ||||||||||
Amortization of: | ||||||||||||||
Prior service cost | 1 | 2 | 1 | |||||||||||
Actuarial (gain) loss | 3 | 3 | 8 | 9 | ||||||||||
Net periodic defined benefit costs (credits) | $ | 3 | $ | 3 | $ | 8 | $ | 9 |
Other Postretirement Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||
Three Months | Nine Months | Three Months | Nine Months | |||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||
PPL | ||||||||||||||||||||||||||
Service cost | $ | 3 | $ | 3 | $ | 9 | $ | 9 | ||||||||||||||||||
Interest cost | 7 | 9 | 23 | 25 | ||||||||||||||||||||||
Expected return on plan assets | (6) | (6) | (17) | (17) | ||||||||||||||||||||||
Amortization of: | ||||||||||||||||||||||||||
Transition obligation | 1 | 1 | ||||||||||||||||||||||||
Prior service cost | 1 | 1 | ||||||||||||||||||||||||
Actuarial (gain) loss | 1 | 1 | 3 | 4 | ||||||||||||||||||||||
Net periodic defined benefit costs (credits) | $ | 6 | $ | 7 | $ | 20 | $ | 22 | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
LKE | LKE | LKE | ||||||||||||||||||||||||
Service cost | Service cost | $ | 1 | $ | 1 | $ | 3 | $ | 3 | Service cost | $ | 2 | $ | 1 | $ | 4 | $ | 3 | ||||||||
Interest cost | Interest cost | 3 | 3 | 7 | 8 | Interest cost | 2 | 3 | 6 | 7 | ||||||||||||||||
Expected return on plan assets | Expected return on plan assets | (1) | (1) | (3) | (3) | Expected return on plan assets | (2) | (1) | (4) | (3) | ||||||||||||||||
Amortization of: | Amortization of: | Amortization of: | ||||||||||||||||||||||||
Transition obligation | 1 | 1 | Transition obligation | 1 | ||||||||||||||||||||||
Prior service cost | 1 | 2 | 2 | Prior service cost | 1 | 2 | 2 | |||||||||||||||||||
Actuarial (gain) loss | (1) | Actuarial (gain) loss | (1) | |||||||||||||||||||||||
Net periodic defined benefit costs (credits) | Net periodic defined benefit costs (credits) | $ | 3 | $ | 4 | $ | 9 | $ | 11 | Net periodic defined benefit costs (credits) | $ | 3 | $ | 3 | $ | 8 | $ | 9 |
Three Months | Nine Months | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
PPL Energy Supply | $ | 10 | $ | 8 | $ | 29 | $ | 23 | ||||
PPL Electric | 8 | 6 | 23 | 18 | ||||||||
LG&E | 3 | 5 | 9 | 13 | ||||||||
KU | 4 | 6 | 13 | 17 |
Three Months | Nine Months | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
PPL Energy Supply | $ | 11 | $ | 10 | $ | 34 | $ | 29 | ||||
PPL Electric | 9 | 8 | 27 | 23 | ||||||||
LG&E | 3 | 3 | 9 | 9 | ||||||||
KU | 4 | 4 | 13 | 13 |
Exposure at | Expiration | |||||
September 30, 2012 (a) | Date | |||||
PPL | ||||||
Indemnifications related to the WPD Midlands acquisition | (b) | |||||
WPD indemnifications for entities in liquidation and sales of assets | $ | 298 | (c) | 2014 - 2018 | ||
WPD guarantee of pension and other obligations of unconsolidated entities | 91 | (d) | 2015 | |||
Tax indemnification related to unconsolidated WPD affiliates | (e) | |||||
PPL Energy Supply | ||||||
Letters of credit issued on behalf of affiliates | 21 | (f) | 2012 - 2014 | |||
Retrospective premiums under nuclear insurance programs | 48 | (g) | ||||
Nuclear claims assessment under The Price-Anderson Act Amendments under The Energy Policy Act of 2005 | 235 | (h) | ||||
Indemnifications for sales of assets | 262 | (i) | 2012 - 2025 | |||
Indemnification to operators of jointly owned facilities | 6 | (j) | ||||
Guarantee of a portion of a divested unconsolidated entity's debt | 22 | (k) | 2018 | |||
PPL Electric | ||||||
Guarantee of inventory value | 22 | (l) | 2016 | |||
LKE | ||||||
Indemnification of lease termination and other divestitures | 301 | (m) | 2021 - 2023 | |||
LG&E and KU | ||||||
LG&E and KU guarantee of shortfall related to OVEC | (n) |
Exposure at | Expiration | |||||
September 30, 2013 (a) | Date | |||||
PPL | ||||||
Indemnifications related to the WPD Midlands acquisition | (b) | |||||
WPD indemnifications for entities in liquidation and sales of assets | $ | 11 | (c) | 2018 | ||
WPD guarantee of pension and other obligations of unconsolidated entities | 125 | (d) | 2015 | |||
PPL Energy Supply | ||||||
Letters of credit issued on behalf of affiliates | 23 | (e) | 2013 - 2014 | |||
Retrospective premiums under nuclear insurance programs | 46 | (f) | ||||
Nuclear claims assessment under The Price-Anderson Act as amended | 235 | (g) | ||||
Indemnifications for sales of assets | 250 | (h) | 2025 | |||
Indemnification to operators of jointly owned facilities | 6 | (i) | ||||
Guarantee of a portion of a divested unconsolidated entity's debt | 22 | (j) | 2018 | |||
PPL Electric | ||||||
Guarantee of inventory value | 32 | (k) | 2017 | |||
LKE | ||||||
Indemnification of lease termination and other divestitures | 301 | (l) | 2021 - 2023 | |||
LG&E and KU | ||||||
LG&E and KU guarantee of shortfall related to OVEC | (m) |
Represents the estimated maximum potential amount of future payments that could be required to be made under the guarantee. |
(b) | Prior to PPL's acquisition, WPD Midlands Holdings Limited had agreed to indemnify certain former directors of a Turkish entity, in which WPD Midlands Holdings Limited previously owned an interest, for any liabilities that may arise as a result of an investigation by Turkish tax authorities, and PPL WEM has received a cross-indemnity from E.ON AG with respect to these indemnification obligations. Additionally, PPL subsidiaries agreed to provide indemnifications to subsidiaries of E.ON AG for certain liabilities relating to properties and assets owned by affiliates of E.ON AG that were transferred to WPD Midlands in connection with the acquisition. The maximum exposure and expiration of these indemnifications cannot be estimated because the maximum potential liability is not capped and the expiration date is not specified in the transaction documents. |
(c) | In connection with the liquidation of wholly owned subsidiaries that have been deconsolidated upon turning the entities over to the liquidators, certain affiliates of PPL Global have agreed to indemnify the liquidators, directors and/or the entities themselves for any liabilities or expenses arising during the liquidation process, including liabilities and expenses of the entities placed into liquidation. In some cases, the indemnifications are limited to a maximum amount that is based on distributions made from the subsidiary to its parent either prior or subsequent to being placed into liquidation. In other cases, the maximum amount of the indemnifications is not explicitly stated in the agreements. The indemnifications generally expire two to seven years subsequent to the date of dissolution of the entities. The exposure noted only includes those cases in which the agreements provide for a specific limit on the amount of the indemnification, and the expiration date was based on an estimate of the dissolution date of the entities. |
(d) | As a result of the privatization of the utility industry in the U.K., certain electric associations' roles and responsibilities were discontinued or modified. As a result, certain obligations, primarily pension-related, associated with these organizations have been guaranteed by the participating members. Costs are allocated to the members based on predetermined percentages as outlined in specific agreements. However, if a member becomes insolvent, costs can be reallocated to and are guaranteed by the remaining members. At September 30, |
(e) |
Standby letter of credit arrangements under PPL Energy Supply's credit facilities for the purposes of protecting various third parties against nonperformance by PPL. This is not a guarantee by PPL on a consolidated basis. |
PPL Susquehanna is contingently obligated to pay this amount related to potential retrospective premiums that could be assessed under its nuclear insurance programs. See "Nuclear Insurance" above for additional information. |
This is the maximum amount PPL Susquehanna could be assessed for each incident at any of the nuclear reactors covered by this Act. See "Nuclear Insurance" above for additional information. |
PPL Energy Supply's maximum exposure with respect to certain indemnifications and the expiration of the indemnifications cannot be estimated because, in the case of certain indemnification provisions, the maximum potential liability is not capped by the transaction documents and the expiration date is based on the applicable statute of limitations. The exposure and expiration dates noted are only for those cases in which the agreements provide for specific limits. The indemnification provisions described below are in each case subject to certain customary limitations, including thresholds for allowable claims, caps on aggregate liability, and time limitations for claims arising out of breaches of most representations and warranties. |
In December 2007, a subsidiary of PPL Energy Supply executed revised owners agreements for two jointly owned facilities, the Keystone and Conemaugh generating plants. The agreements require that in the event of any default by an owner, the other owners fund contributions for the operation of the generating plants, based upon their ownership percentages. The non-defaulting owners, who make up the defaulting owner's obligations, are entitled to the generation entitlement of the defaulting owner, based upon their ownership percentage. The exposure shown reflects the PPL Energy Supply subsidiary's share of the maximum obligation. The agreements do not have an expiration date. |
A PPL Energy Supply subsidiary owned a one-third equity interest in Safe Harbor Water Power Corporation (Safe Harbor) that was sold in March 2011. Beginning in 2008, PPL Energy Supply guaranteed one-third of any amounts payable with respect to certain senior notes issued by Safe Harbor. Under the terms of the sale agreement, PPL Energy Supply continues to guarantee the portion of Safe Harbor's debt, but received a cross-indemnity from the purchaser, secured by a lien on the purchaser's stock of Safe Harbor, in the event PPL Energy Supply is required to make a payment under the guarantee. The exposure noted reflects principal only. |
PPL Electric entered into |
LKE provides certain indemnifications, the most significant of which relate to the termination of the WKE lease in July 2009. These guarantees cover the due and punctual payment, performance and discharge by each party of its respective present and future obligations. The most comprehensive of these guarantees is the LKE guarantee covering operational, regulatory and environmental commitments and indemnifications made by WKE under the WKE Transaction Termination Agreement. This guarantee has a term of 12 years ending July 2021, and a cumulative maximum exposure of $200 million. Certain items such as government fines and penalties fall outside the cumulative cap. LKE has contested the applicability of the indemnification requirement relating to one matter presented by a counterparty under this guarantee. Another guarantee with a maximum exposure of $100 million covering other indemnifications expires in 2023. In May 2012, LKE's indemnitee received an arbitration panel's decision affecting this matter, which granted LKE's indemnitee certain rights of first refusal to purchase excess power at a market-based price rather than at an absolute fixed price. In |
Pursuant to the OVEC power purchase contract, expiring in June 2040, LG&E and KU are obligated to pay a demand charge which includes, among other charges, debt service and amortization toward principal retirement, decommissioning costs, post-retirement and post-employment benefits costs (other than pensions), and reimbursement of plant operating, maintenance and other expenses. The demand charge is expected to cover LG&E's and KU's shares of the cost of the listed items over the term of the contract. However, in the event there is a shortfall in covering these costs, LG&E and KU are obligated to pay their share of the excess debt service, post-retirement and |
Three Months | Nine Months | Three Months | Nine Months | |||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||
PPL Energy Supply | $ | 49 | $ | 44 | $ | 159 | $ | 138 | $ | 52 | $ | 49 | $ | 161 | $ | 159 | ||||||||
PPL Electric | 35 | 34 | 116 | 108 | 37 | 35 | 109 | 116 | ||||||||||||||||
LKE | 3 | 3 | 11 | 12 | 3 | 3 | 11 | 11 |
Three Months | Nine Months | Three Months | Nine Months | |||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||
LG&E | $ | 51 | $ | 51 | $ | 132 | $ | 134 | $ | 53 | $ | 51 | $ | 159 | $ | 132 | ||||||||
KU | 33 | 44 | 114 | 148 | 36 | 33 | 146 | 114 |
Three Months | Nine Months | |||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||
PPL | ||||||||||||||
Other Income | ||||||||||||||
Gain on redemption of debt (a) | $ | 22 | $ | 22 | ||||||||||
Earnings on securities in NDT funds | $ | 5 | 2 | $ | 17 | 20 | ||||||||
Interest income | 1 | 1 | 4 | 5 | ||||||||||
AFUDC - equity component | 2 | 2 | 7 | 5 | ||||||||||
Net hedge gains associated with the 2011 Bridge Facility (b) | 55 | |||||||||||||
Earnings (losses) from equity method investments | (1) | 1 | (7) | 1 | ||||||||||
Miscellaneous - Domestic | 3 | 2 | 8 | 9 | ||||||||||
Miscellaneous - U.K. | (1) | 1 | 1 | |||||||||||
Total Other Income | 9 | 30 | 30 | 118 | ||||||||||
Other Expense | ||||||||||||||
Economic foreign currency exchange contracts (Note 14) | 47 | (11) | 40 | (11) | ||||||||||
Charitable contributions | 1 | 2 | 7 | 7 | ||||||||||
WPD Midlands acquisition-related costs (Note 8) | 36 | |||||||||||||
Foreign currency loss on 2011 Bridge Facility (c) | 57 | |||||||||||||
U.K. stamp duty tax (Note 8) | 21 | |||||||||||||
Miscellaneous - Domestic | 4 | 2 | 12 | 7 | ||||||||||
Miscellaneous - U.K. | 1 | 2 | 3 | |||||||||||
Total Other Expense | 53 | (7) | 61 | 120 | ||||||||||
Other Income (Expense) - net | $ | (44) | $ | 37 | $ | (31) | $ | (2) | ||||||
Three Months | Nine Months | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
PPL | ||||||||||||||
Other Income | ||||||||||||||
Earnings on securities in NDT funds | $ | 4 | $ | 5 | $ | 14 | $ | 17 | ||||||
Interest income | 1 | 1 | 2 | 4 | ||||||||||
AFUDC - equity component | 3 | 2 | 8 | 7 | ||||||||||
Earnings (losses) from equity method investments | (1) | (7) | ||||||||||||
Miscellaneous - Domestic | 3 | 9 | 8 | |||||||||||
Miscellaneous - U.K. | (1) | 1 | 1 | |||||||||||
Total Other Income | 8 | 9 | 34 | 30 | ||||||||||
Other Expense | ||||||||||||||
Economic foreign currency exchange contracts (Note 14) | 117 | 47 | (6) | 40 | ||||||||||
Charitable contributions | 5 | 1 | 13 | 7 | ||||||||||
Miscellaneous - Domestic | 2 | 4 | 7 | 12 | ||||||||||
Miscellaneous - U.K. | 1 | 1 | 2 | |||||||||||
Total Other Expense | 124 | 53 | 15 | 61 | ||||||||||
Other Income (Expense) - net | $ | (116) | $ | (44) | $ | 19 | $ | (31) |
Three Months | Nine Months | |||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||
PPL Energy Supply | ||||||||||||||
Other Income | ||||||||||||||
Earnings on securities in NDT funds | $ | 5 | $ | 2 | $ | 17 | $ | 20 | ||||||
Interest income | 1 | 1 | 1 | |||||||||||
Miscellaneous | 1 | 3 | 5 | |||||||||||
Total Other Income | 6 | 3 | 21 | 26 | ||||||||||
Other Expense | ||||||||||||||
Charitable contributions | 1 | 1 | 2 | 2 | ||||||||||
Miscellaneous | 1 | 5 | 4 | |||||||||||
Total Other Expense | 2 | 1 | 7 | 6 | ||||||||||
Other Income (Expense) - net | $ | 4 | $ | 2 | $ | 14 | $ | 20 |
PPL Energy Supply | ||||||||||||||
Other Income | ||||||||||||||
Earnings on securities in NDT funds | $ | 4 | $ | 5 | $ | 14 | $ | 17 | ||||||
Interest income | 1 | 3 | 1 | |||||||||||
Miscellaneous | 2 | 7 | 5 | |||||||||||
Total Other Income | 5 | 7 | 24 | 23 | ||||||||||
Other Expense | ||||||||||||||
Charitable contributions | 1 | 1 | 3 | 2 | ||||||||||
Miscellaneous | 2 | 1 | 3 | 5 | ||||||||||
Total Other Expense | 3 | 2 | 6 | 7 | ||||||||||
Other Income (Expense) - net | $ | 2 | $ | 5 | $ | 18 | $ | 16 |
September 30, 2012 | December 31, 2011 | September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||
PPL | PPL | PPL | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 946 | $ | 946 | $ | 1,202 | $ | 1,202 | Cash and cash equivalents | $ | 1,291 | $ | 1,291 | $ | 901 | $ | 901 | |||||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents (a) | 169 | 169 | 209 | 209 | Restricted cash and cash equivalents (a) | 120 | 120 | 135 | 135 | |||||||||||||||||||||||||||||||||||||||||||||
Price risk management assets: | Price risk management assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Energy commodities | 2,604 | 5 | $ | 2,569 | $ | 30 | 3,423 | 3 | $ | 3,390 | $ | 30 | Energy commodities | 1,480 | 7 | $ | 1,421 | $ | 52 | 2,068 | 2 | $ | 2,037 | $ | 29 | |||||||||||||||||||||||||||||
Interest rate swaps | 3 | 3 | Interest rate swaps | 86 | 86 | 15 | 15 | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency contracts | 18 | 18 | Foreign currency contracts | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cross-currency swaps | 24 | 22 | 2 | 24 | 20 | 4 | Cross-currency swaps | 28 | 28 | 14 | 13 | 1 | ||||||||||||||||||||||||||||||||||||||||||
Total price risk management assets | 2,628 | 5 | 2,591 | 32 | 3,468 | 3 | 3,431 | 34 | Total price risk management assets | 1,595 | 7 | 1,536 | 52 | 2,097 | 2 | 2,065 | 30 | |||||||||||||||||||||||||||||||||||||
NDT funds: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 14 | 14 | 11 | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. large-cap | 494 | 369 | 125 | 412 | 308 | 104 | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. mid/small-cap | 74 | 30 | 44 | 60 | 25 | 35 | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury | 96 | 96 | 95 | 95 | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government sponsored agency | 6 | 6 | 9 | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Municipality | 75 | 75 | 82 | 82 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investment-grade corporate | 40 | 40 | 40 | 40 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 3 | 3 | 3 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables (payables), net | 2 | 2 | (2) | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total NDT funds | 804 | 509 | 295 | 712 | 437 | 275 | ||||||||||||||||||||||||||||||||||||||||||||||||
Auction rate securities (b) | 19 | 19 | 19 | 3 | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | Total assets | $ | 3,829 | $ | 1,927 | $ | 1,831 | $ | 71 | $ | 3,864 | $ | 1,475 | $ | 2,343 | $ | 46 | |||||||||||||||||||||||||||||||||||||
Liabilities | Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Price risk management liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Energy commodities | $ | 1,235 | $ | 4 | $ | 1,226 | $ | 5 | $ | 1,566 | $ | 2 | $ | 1,557 | $ | 7 | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | 58 | 58 | 80 | 80 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency contracts | 67 | 67 | 44 | 44 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cross-currency swaps | 1 | 1 | 4 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total price risk management liabilities | $ | 1,361 | $ | 4 | $ | 1,352 | $ | 5 | $ | 1,694 | $ | 2 | $ | 1,685 | $ | 7 |
September 30, 2012 | December 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||||||||||
NDT funds: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 12 | 12 | 12 | 12 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. large-cap | 412 | 307 | 105 | 357 | 267 | 90 | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. mid/small-cap | 59 | 25 | 34 | 52 | 22 | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury | 95 | 95 | 86 | 86 | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government sponsored agency | 9 | 9 | 10 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Municipality | 83 | 83 | 83 | 83 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investment-grade corporate | 40 | 40 | 38 | 38 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables (payables), net | (1) | (3) | 2 | (3) | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total NDT funds | 711 | 436 | 275 | 640 | 384 | 256 | ||||||||||||||||||||||||||||||||||||||||||||||||
Auction rate securities (b) | 19 | 3 | 16 | 24 | 24 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 4,473 | $ | 1,556 | $ | 2,869 | $ | 48 | $ | 5,543 | $ | 1,798 | $ | 3,687 | $ | 58 | ||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Price risk management liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Energy commodities | $ | 1,947 | $ | 5 | $ | 1,937 | $ | 5 | $ | 2,345 | $ | 1 | $ | 2,327 | $ | 17 | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | 83 | 83 | 63 | 63 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency contracts | 36 | 36 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cross-currency swaps | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total price risk management liabilities | $ | 2,068 | $ | 5 | $ | 2,058 | $ | 5 | $ | 2,410 | $ | 1 | $ | 2,392 | $ | 17 | September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||||||||||
PPL Energy Supply | PPL Energy Supply | PPL Energy Supply | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 432 | $ | 432 | $ | 379 | $ | 379 | Cash and cash equivalents | $ | 551 | $ | 551 | $ | 413 | $ | 413 | |||||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents (a) | 98 | 98 | 145 | 145 | Restricted cash and cash equivalents (a) | 54 | 54 | 63 | 63 | |||||||||||||||||||||||||||||||||||||||||||||
Price risk management assets: | Price risk management assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Energy commodities | 2,604 | 5 | $ | 2,569 | $ | 30 | 3,423 | 3 | $ | 3,390 | $ | 30 | Energy commodities | 1,480 | 7 | $ | 1,421 | $ | 52 | 2,068 | 2 | $ | 2,037 | $ | 29 | |||||||||||||||||||||||||||||
Total price risk management assets | 2,604 | 5 | 2,569 | 30 | 3,423 | 3 | 3,390 | 30 | Total price risk management assets | 1,480 | 7 | 1,421 | 52 | 2,068 | 2 | 2,037 | 29 | |||||||||||||||||||||||||||||||||||||
NDT funds: | NDT funds: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 12 | 12 | 12 | 12 | Cash and cash equivalents | 14 | 14 | 11 | 11 | |||||||||||||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. large-cap | 412 | 307 | 105 | 357 | 267 | 90 | U.S. large-cap | 494 | 369 | 125 | 412 | 308 | 104 | |||||||||||||||||||||||||||||||||||||||||
U.S. mid/small-cap | 59 | 25 | 34 | 52 | 22 | 30 | U.S. mid/small-cap | 74 | 30 | 44 | 60 | 25 | 35 | |||||||||||||||||||||||||||||||||||||||||
Debt securities | Debt securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury | 95 | 95 | 86 | 86 | U.S. Treasury | 96 | 96 | 95 | 95 | |||||||||||||||||||||||||||||||||||||||||||||
U.S. government sponsored agency | 9 | 9 | 10 | 10 | U.S. government sponsored agency | 6 | 6 | 9 | 9 | |||||||||||||||||||||||||||||||||||||||||||||
Municipality | 83 | 83 | 83 | 83 | Municipality | 75 | 75 | 82 | 82 | |||||||||||||||||||||||||||||||||||||||||||||
Investment-grade corporate | 40 | 40 | 38 | 38 | Investment-grade corporate | 40 | 40 | 40 | 40 | |||||||||||||||||||||||||||||||||||||||||||||
Other | 2 | 2 | 2 | 2 | Other | 3 | 3 | 3 | 3 | |||||||||||||||||||||||||||||||||||||||||||||
Receivables (payables), net | (1) | (3) | 2 | (3) | 3 | Receivables (payables), net | 2 | 2 | (2) | 2 | ||||||||||||||||||||||||||||||||||||||||||||
Total NDT funds | 711 | 436 | 275 | 640 | 384 | 256 | Total NDT funds | 804 | 509 | 295 | 712 | 437 | 275 | |||||||||||||||||||||||||||||||||||||||||
Auction rate securities (b) | 16 | 3 | 13 | 19 | 19 | Auction rate securities (b) | 16 | 16 | 16 | 3 | 13 | |||||||||||||||||||||||||||||||||||||||||||
Total assets | Total assets | $ | 3,861 | $ | 971 | $ | 2,847 | $ | 43 | $ | 4,606 | $ | 911 | $ | 3,646 | $ | 49 | Total assets | $ | 2,905 | $ | 1,121 | $ | 1,716 | $ | 68 | $ | 3,272 | $ | 915 | $ | 2,315 | $ | 42 | ||||||||||||||||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Price risk management liabilities: | Price risk management liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Energy commodities | $ | 1,947 | $ | 5 | $ | 1,937 | $ | 5 | $ | 2,345 | $ | 1 | $ | 2,327 | $ | 17 | Energy commodities | $ | 1,235 | $ | 4 | $ | 1,226 | $ | 5 | $ | 1,566 | $ | 2 | $ | 1,557 | $ | 7 | |||||||||||||||||||||
Total price risk management liabilities | $ | 1,947 | $ | 5 | $ | 1,937 | $ | 5 | $ | 2,345 | $ | 1 | $ | 2,327 | $ | 17 | Total price risk management liabilities | $ | 1,235 | $ | 4 | $ | 1,226 | $ | 5 | $ | 1,566 | $ | 2 | $ | 1,557 | $ | 7 | |||||||||||||||||||||
PPL Electric | PPL Electric | PPL Electric | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 31 | $ | 31 | $ | 320 | $ | 320 | Cash and cash equivalents | $ | 225 | $ | 225 | $ | 140 | $ | 140 | |||||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents (c) | 13 | 13 | 13 | 13 | Restricted cash and cash equivalents (c) | 12 | 12 | 13 | 13 | |||||||||||||||||||||||||||||||||||||||||||||
Total assets | Total assets | $ | 44 | $ | 44 | $ | 333 | $ | 333 | Total assets | $ | 237 | $ | 237 | $ | 153 | $ | 153 |
LKE | LKE | LKE | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 21 | $ | 21 | $ | 43 | $ | 43 | ||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents (d) | 22 | 22 | 32 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Price risk management assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 90 | $ | 90 | $ | 59 | $ | 59 | Interest rate swaps | 14 | $ | 14 | ||||||||||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents (e) | 32 | 32 | 29 | 29 | Total price risk management assets | 14 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||
Total assets | Total assets | $ | 122 | $ | 122 | $ | 88 | $ | 88 | Total assets | $ | 43 | $ | 43 | $ | 89 | $ | 75 | $ | 14 | ||||||||||||||||||||||||||||||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Price risk management liabilities: | Price risk management liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps (d) | $ | 62 | $ | 62 | $ | 60 | $ | 60 | Interest rate swaps | $ | 55 | $ | 55 | $ | 58 | $ | 58 | |||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 62 | $ | 62 | $ | 60 | $ | 60 | ||||||||||||||||||||||||||||||||||||||||||||||
Total price risk management liabilities | Total price risk management liabilities | $ | 55 | $ | 55 | $ | 58 | $ | 58 | |||||||||||||||||||||||||||||||||||||||||||||
LG&E | LG&E | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 12 | $ | 12 | $ | 22 | $ | 22 | ||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents (d) | 22 | 22 | 32 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Price risk management assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | 7 | $ | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total price risk management assets | 7 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | Total assets | $ | 34 | $ | 34 | $ | 61 | $ | 54 | $ | 7 | |||||||||||||||||||||||||||||||||||||||||||
Liabilities | Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Price risk management liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | 48 | $ | 48 | $ | 58 | $ | 58 | ||||||||||||||||||||||||||||||||||||||||||||||
Total price risk management liabilities | Total price risk management liabilities | $ | 48 | $ | 48 | $ | 58 | $ | 58 |
September 30, 2012 | December 31, 2011 | September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||
LG&E | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
KU | KU | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 9 | $ | 9 | $ | 21 | $ | 21 | ||||||||||||||||||||||||||||||||||||||||||||||
Price risk management assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 48 | $ | 48 | $ | 25 | $ | 25 | Interest rate swaps | 7 | $ | 7 | ||||||||||||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents (e) | 32 | 32 | 29 | 29 | Total price risk management assets | 7 | 7 | |||||||||||||||||||||||||||||||||||||||||||||||
Total assets | Total assets | $ | 80 | $ | 80 | $ | 54 | $ | 54 | Total assets | $ | 9 | $ | 9 | $ | 28 | $ | 21 | $ | 7 | ||||||||||||||||||||||||||||||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Price risk management liabilities: | Price risk management liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps (d) | $ | 62 | $ | 62 | $ | 60 | $ | 60 | Interest rate swaps | $ | 7 | $ | 7 | |||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 62 | $ | 62 | $ | 60 | $ | 60 | ||||||||||||||||||||||||||||||||||||||||||||||
KU | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 42 | $ | 42 | $ | 31 | $ | 31 | ||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 42 | $ | 42 | $ | 31 | $ | 31 | ||||||||||||||||||||||||||||||||||||||||||||||
Total price risk management liabilities | Total price risk management liabilities | $ | 7 | $ | 7 |
Current portion is included in "Restricted cash and cash equivalents" and the long-term portion is included in "Other noncurrent assets" on the Balance Sheets. |
(b) | Included in "Other investments" on the Balance Sheets. |
(c) | Current portion is included in "Other current assets" and the long-term portion is included in "Other noncurrent assets" on the Balance Sheets. |
(d) |
Included in "Other noncurrent assets" on the Balance Sheets. |
A reconciliation of net assets and liabilities classified as Level 3 for the periods ended September 30, 2012 is as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
A reconciliation of net assets and liabilities classified as Level 3 for the periods ended September 30, 2013 is as follows: | A reconciliation of net assets and liabilities classified as Level 3 for the periods ended September 30, 2013 is as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months | Nine Months | Three Months | Nine Months | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Energy | Auction | Cross- | Energy | Auction | Cross- | Energy | Auction | Cross- | Energy | Auction | Cross- | |||||||||||||||||||||||||||||||||||||||||||||
Commodities, | Rate | Currency | Commodities, | Rate | Currency | Commodities, | Rate | Currency | Commodities, | Rate | Currency | |||||||||||||||||||||||||||||||||||||||||||||
net | Securities | Swaps | Total | net | Securities | Swaps | Total | net | Securities | Swaps | Total | net | Securities | Swaps | Total | |||||||||||||||||||||||||||||||||||||||||
PPL | PPL | PPL | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of | Balance at beginning of | Balance at beginning of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
period | $ | 34 | $ | 15 | $ | 10 | $ | 59 | $ | 13 | $ | 24 | $ | 4 | $ | 41 | period | $ | 40 | $ | 19 | $ | 3 | $ | 62 | $ | 22 | $ | 16 | $ | 1 | $ | 39 | |||||||||||||||||||||||
Total realized/unrealized | Total realized/unrealized | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
gains (losses) | gains (losses) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Included in earnings | (17) | (17) | (1) | (1) | (2) | Included in earnings | 18 | 18 | 23 | 23 | ||||||||||||||||||||||||||||||||||||||||||||||
Included in OCI (a) | 1 | (8) | (7) | 1 | 2 | 3 | Included in OCI (a) | (2) | (2) | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||||
Sales | (5) | (5) | Sales | (2) | (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | 2 | 2 | (9) | (9) | Settlements | (2) | (2) | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 | (2) | (2) | 12 | 12 | Transfers into Level 3 | (7) | (7) | 1 | 3 | 3 | 7 | |||||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 | 8 | 8 | 9 | (3) | (3) | 3 | Transfers out of Level 3 | (2) | (1) | (3) | 2 | (5) | (3) | |||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | Balance at end of period | $ | 25 | $ | 16 | $ | 2 | $ | 43 | $ | 25 | $ | 16 | $ | 2 | $ | 43 | Balance at end of period | $ | 47 | $ | 19 | $ | $ | 66 | $ | 47 | $ | 19 | $ | $ | 66 | ||||||||||||||||||||||||
PPL Energy Supply | PPL Energy Supply | PPL Energy Supply | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of | Balance at beginning of | Balance at beginning of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
period | $ | 34 | $ | 12 | $ | 46 | $ | 13 | $ | 19 | $ | 32 | period | $ | 40 | $ | 16 | $ | 56 | $ | 22 | $ | 13 | $ | 35 | |||||||||||||||||||||||||||||||
Total realized/unrealized | Total realized/unrealized | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
gains (losses) | gains (losses) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Included in earnings | (17) | (17) | (1) | (1) | Included in earnings | 18 | 18 | 23 | 23 | |||||||||||||||||||||||||||||||||||||||||||||||
Included in OCI (a) | 1 | 1 | 1 | 1 | Sales | (2) | (2) | |||||||||||||||||||||||||||||||||||||||||||||||||
Sales | (3) | (3) | Settlements | (2) | (2) | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | 2 | 2 | (9) | (9) | Transfers into Level 3 | (7) | (7) | 1 | 3 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 | (2) | (2) | 12 | 12 | Transfers out of Level 3 | (2) | (2) | 2 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 | 8 | 8 | 9 | (3) | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | Balance at end of period | $ | 25 | $ | 13 | $ | 38 | $ | 25 | $ | 13 | $ | 38 | Balance at end of period | $ | 47 | $ | 16 | $ | 63 | $ | 47 | $ | 16 | $ | 63 |
(a) | "Energy Commodities, net" and "Cross-Currency Swaps" are included in "Qualifying derivatives" and "Auction Rate Securities" are included in "Available-for-sale securities" on the Statements of Comprehensive Income. |
A reconciliation of net assets and liabilities classified as Level 3 for the periods ended September 30, |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||
Three Months | Nine Months | |||||||||||||||||||||||||||
Energy | Auction | Cross- | Energy | Auction | Cross- | |||||||||||||||||||||||
Commodities, | Rate | Currency | Commodities, | Rate | Currency | |||||||||||||||||||||||
net | Securities | Swaps | Total | net | Securities | Swaps | Total | |||||||||||||||||||||
PPL | ||||||||||||||||||||||||||||
Balance at beginning of | ||||||||||||||||||||||||||||
period | $ | 34 | $ | 15 | $ | 10 | $ | 59 | $ | 13 | $ | 24 | $ | 4 | $ | 41 | ||||||||||||
Total realized/unrealized | ||||||||||||||||||||||||||||
gains (losses) | ||||||||||||||||||||||||||||
Included in earnings | (17) | (17) | (1) | (1) | (2) | |||||||||||||||||||||||
Included in OCI (a) | 1 | (8) | (7) | 1 | 2 | 3 | ||||||||||||||||||||||
Sales | (5) | (5) | ||||||||||||||||||||||||||
Settlements | 2 | 2 | (9) | (9) | ||||||||||||||||||||||||
Transfers into Level 3 | (2) | (2) | 12 | 12 | ||||||||||||||||||||||||
Transfers out of Level 3 | 8 | 8 | 9 | (3) | (3) | 3 | ||||||||||||||||||||||
Balance at end of period | $ | 25 | $ | 16 | $ | 2 | $ | 43 | $ | 25 | $ | 16 | $ | 2 | $ | 43 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months | Nine Months | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Energy | Auction | Cross- | Energy | Auction | Cross- | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commodities, | Rate | Currency | Commodities, | Rate | Currency | |||||||||||||||||||||||||||||||||||||||||||||||||||
net | Securities | Swaps | Total | net | Securities | Swaps | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
PPL | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
period | $ | 26 | $ | 25 | $ | 51 | $ | (3) | $ | 25 | $ | 22 | ||||||||||||||||||||||||||||||||||||||||||||
Total realized/unrealized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
gains (losses) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Included in earnings | 6 | 6 | 2 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Included in OCI (a) | 2 | (1) | 1 | 6 | (1) | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | 2 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | (4) | (4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | (2) | (2) | 23 | 23 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 | (1) | $ | 14 | 13 | (1) | $ | 14 | 13 | ||||||||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 | (5) | (5) | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 26 | $ | 24 | $ | 14 | $ | 64 | $ | 26 | $ | 24 | $ | 14 | $ | 64 | ||||||||||||||||||||||||||||||||||||||||
PPL Energy Supply | PPL Energy Supply | PPL Energy Supply | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of | Balance at beginning of | Balance at beginning of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
period | $ | 26 | $ | 20 | $ | 46 | $ | (3) | $ | 20 | $ | 17 | period | $ | 34 | $ | 12 | $ | 46 | $ | 13 | $ | 19 | $ | 32 | |||||||||||||||||||||||||||||||
Total realized/unrealized | Total realized/unrealized | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
gains (losses) | gains (losses) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Included in earnings | 6 | 6 | 2 | 2 | Included in earnings | (17) | (17) | (1) | (1) | |||||||||||||||||||||||||||||||||||||||||||||||
Included in OCI (a) | 2 | (1) | 1 | 6 | (1) | 5 | Included in OCI (a) | 1 | 1 | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||||
Purchases | 2 | 2 | Sales | (3) | (3) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | (4) | (4) | Settlements | 2 | 2 | (9) | (9) | |||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | (2) | (2) | 23 | 23 | Transfers into Level 3 | (2) | (2) | 12 | 12 | |||||||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 | (1) | (1) | (1) | (1) | Transfers out of Level 3 | 8 | 8 | 9 | (3) | 6 | ||||||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 | (5) | (5) | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | Balance at end of period | $ | 26 | $ | 19 | $ | 45 | $ | 26 | $ | 19 | $ | 45 | Balance at end of period | $ | 25 | $ | 13 | $ | 38 | $ | 25 | $ | 13 | $ | 38 |
"Energy Commodities, net" and "Cross-Currency Swaps" are included in "Qualifying derivatives" and "Auction Rate Securities" are included in "Available-for-sale securities" on the Statements of Comprehensive Income. |
September 30, 2013 | |||||||||||||
Fair Value, net | Range | ||||||||||||
Asset | Valuation | Unobservable | (Weighted | ||||||||||
(Liability) | Technique | Input(s) | Average) (a) | ||||||||||
PPL | |||||||||||||
Energy commodities | |||||||||||||
Retail natural gas sales contracts (b) | 35 | Discounted cash flow | Observable wholesale prices used as proxy for retail delivery points | ||||||||||
9 | Discounted cash flow | Implied correlation, implied volatility, and market implied heat rate | 33% - 60% (58%) | ||||||||||
FTR purchase contracts (g) | 3 | Discounted cash flow | Historical settled prices used to model forward prices | 100% (100%) | |||||||||
Auction rate securities | | 19 | Discounted cash flow | Modeled from SIFMA Index | |||||||||
PPL Energy Supply | |||||||||||||
Energy commodities | |||||||||||||
Retail natural gas sales contracts (b) | 35 | Discounted cash flow | Observable wholesale prices used as proxy for retail delivery points | ||||||||||
9 | Discounted cash flow | Implied correlation, implied volatility, and market implied heat rate | 33% - 60% (58%) | ||||||||||
FTR purchase contracts (g) | 3 | Discounted cash flow | Historical settled prices used to model forward prices | 100% (100%) | |||||||||
Auction rate securities | | 16 | Discounted cash flow | Modeled from SIFMA Index | 12% - 80% (63%) |
December 31, 2012 | |||||||||||||
Fair Value, net | Range | ||||||||||||
Asset | Valuation | Unobservable | (Weighted | ||||||||||
(Liability) | Technique | Input(s) | Average) (a) | ||||||||||
PPL | |||||||||||||
Energy commodities | |||||||||||||
Retail natural gas sales contracts (b) | $ | 24 | Discounted cash flow | Observable wholesale prices used as proxy for retail delivery points | 21% - 100% (75%) | ||||||||
Power sales contracts (c) | (4) | Discounted cash flow | Proprietary model used to calculate forward basis prices | 24% (24%) | |||||||||
FTR purchase contracts (g) | 2 | Discounted cash flow | Historical settled prices used to model forward prices | 100% (100%) | |||||||||
Auction rate securities (e) | 16 | Discounted cash flow | Modeled from SIFMA Index | ||||||||||
Cross-currency swaps (f) | 1 | Discounted cash flow | Credit valuation adjustment | 22% (22%) |
PPL Energy Supply | |||||||||||||
Energy commodities | |||||||||||||
Retail natural gas sales contracts (b) | $ | 24 | Discounted cash flow | Observable wholesale prices used as proxy for retail delivery points | 21% - 100% (75%) | ||||||||
Power sales contracts (c) | (4) | Discounted cash flow | Proprietary model used to calculate forward basis prices | 24% (24%) | |||||||||
FTR purchase contracts (g) | 2 | Discounted cash flow | Historical settled prices used to model forward prices | 100% (100%) | |||||||||
Auction rate securities (e) | 13 | Discounted cash flow | Modeled from SIFMA Index | 57% - 74% (65%) |
(a) | For energy commodities and auction rate securities, the range and weighted average represent the percentage of fair value derived from the unobservable inputs. For cross-currency swaps, the range and weighted average represent the percentage decrease in fair value due to the unobservable inputs used in the model to calculate the credit valuation adjustment. |
(b) |
(c) |
(d) | At September 30, 2013, heat rate call options extend through |
(g) | At September 30, 2013, FTR purchase contracts extend through 2015, and $1 million of the fair value is scheduled to deliver within the next 12 months. As the forward implied spread increases/(decreases), the fair value of the contracts increases/(decreases). |
Three Months | Three Months | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cross-Currency | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Energy Commodities, net | Swaps | Energy Commodities, net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unregulated Retail | Wholesale Energy | Net Energy | Energy | Unregulated | Wholesale | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Electric and Gas | Marketing | Trading Margins | Purchases | Interest Expense | Retail | Energy | Net Energy | Energy | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | Electric and Gas | Marketing | Trading Margins | Fuel | Purchases | ||||||||||||||||||||||||||||||||||||||||||||||||
PPL | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
PPL and PPL Energy Supply | PPL and PPL Energy Supply | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total gains (losses) included in earnings | Total gains (losses) included in earnings | $ | (3) | $ | 6 | $ | (4) | $ | (1) | $ | (8) | $ | 1 | $ | (2) | Total gains (losses) included in earnings | $ | 3 | $ | (3) | $ | (8) | $ | (4) | $ | 11 | $ | (8) | $ | 3 | $ | 9 | $ | (2) | ||||||||||||||||||||||||||||
Change in unrealized gains (losses) relating | Change in unrealized gains (losses) relating | Change in unrealized gains (losses) relating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
to positions still held at the reporting date | (2) | 3 | (1) | 2 | 1 | $ | 1 | to positions still held at the reporting date | 3 | (2) | (1) | 17 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||
PPL Energy Supply | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total gains (losses) included in earnings | $ | (3) | $ | 6 | $ | (4) | $ | (1) | $ | (8) | $ | 1 | $ | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized gains (losses) relating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
to positions still held at the reporting date | (2) | 3 | (1) | 2 | 1 | $ | 1 |
Nine Months | |||||||||||||||||||||||||||||||
Cross-Currency | |||||||||||||||||||||||||||||||
Energy Commodities, net | Swaps | ||||||||||||||||||||||||||||||
Unregulated Retail | Wholesale Energy | Net Energy | Energy | ||||||||||||||||||||||||||||
Electric and Gas | Marketing | Trading Margins | Purchases | Interest Expense | |||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||
PPL | |||||||||||||||||||||||||||||||
Total gains (losses) included in earnings | $ | 16 | $ | 11 | $ | (7) | $ | (5) | $ | (9) | $ | (2) | $ | (1) | $ | (2) | $ | (1) | |||||||||||||
Change in unrealized gains (losses) relating | |||||||||||||||||||||||||||||||
to positions still held at the reporting date | 29 | 6 | (6) | 2 | 1 | 1 | 20 | ||||||||||||||||||||||||
PPL Energy Supply | |||||||||||||||||||||||||||||||
Total gains (losses) included in earnings | $ | 16 | $ | 11 | $ | (7) | $ | (5) | $ | (9) | $ | (2) | $ | (1) | $ | (2) | |||||||||||||||
Change in unrealized gains (losses) relating | |||||||||||||||||||||||||||||||
to positions still held at the reporting date | 29 | 6 | (6) | 2 | 1 | 1 | 20 |
Nine Months | |||||||||||||||||||||||||||||||||||||
Cross-Currency | |||||||||||||||||||||||||||||||||||||
Energy Commodities, net | Swaps | ||||||||||||||||||||||||||||||||||||
Unregulated | Wholesale | ||||||||||||||||||||||||||||||||||||
Retail | Energy | Net Energy | Energy | ||||||||||||||||||||||||||||||||||
Electric and Gas | Marketing | Trading Margins | Fuel | Purchases | Interest Expense | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
PPL | |||||||||||||||||||||||||||||||||||||
Total gains (losses) included | |||||||||||||||||||||||||||||||||||||
in earnings | $ | 18 | $ | 16 | $ | (15) | $ | (7) | $ | 8 | $ | (9) | $ | 3 | $ | 9 | $ | (1) | $ | (1) | |||||||||||||||||
Change in unrealized gains | |||||||||||||||||||||||||||||||||||||
(losses) relating to positions | |||||||||||||||||||||||||||||||||||||
still held at the reporting date | 18 | 29 | (1) | 8 | 2 | 5 | 1 | ||||||||||||||||||||||||||||||
PPL Energy Supply | |||||||||||||||||||||||||||||||||||||
Total gains (losses) included | |||||||||||||||||||||||||||||||||||||
in earnings | $ | 18 | $ | 16 | $ | (15) | $ | (7) | $ | 8 | $ | (9) | $ | 3 | $ | 9 | $ | (1) | |||||||||||||||||||
Change in unrealized gains | |||||||||||||||||||||||||||||||||||||
(losses) relating to positions | |||||||||||||||||||||||||||||||||||||
still held at the reporting date | 18 | 29 | (1) | 8 | 2 | 5 | 1 | ||||||||||||||||||||||||||||||
· | The fair value measurements of equity securities classified as Level 1 are based on quoted prices in active markets and are comprised of securities that are representative of the Wilshire 5000 Total Market Index. |
· | Investments in commingled equity funds are classified as Level 2 and represent securities that track the S&P 500 |
September 30, 2012 | December 31, 2011 | ||||||||||||
Carrying | Carrying | ||||||||||||
Amount | Fair Value | Amount | Fair Value | ||||||||||
PPL | |||||||||||||
Contract adjustment payments (a) | $ | 128 | $ | 116 | $ | 198 | $ | 198 | |||||
Long-term debt (b) | 19,024 | 21,091 | 17,993 | 19,392 | |||||||||
PPL Energy Supply | |||||||||||||
Long-term debt (b) | 3,275 | 3,691 | 3,024 | 3,397 | |||||||||
PPL Electric | |||||||||||||
Long-term debt | 1,967 | 2,252 | 1,718 | 2,012 | |||||||||
LKE | |||||||||||||
Long-term debt | 4,074 | 4,385 | 4,073 | 4,306 | |||||||||
LG&E | |||||||||||||
Long-term debt | 1,112 | 1,172 | 1,112 | 1,164 | |||||||||
KU | |||||||||||||
Long-term debt | 1,842 | 2,021 | 1,842 | 2,000 |
September 30, 2013 | December 31, 2012 | ||||||||||||
Carrying | Carrying | ||||||||||||
Amount | Fair Value | Amount | Fair Value | ||||||||||
PPL | |||||||||||||
Contract adjustment payments (a) | $ | 32 | $ | 32 | $ | 105 | $ | 106 | |||||
Long-term debt | 19,843 | 21,537 | 19,476 | 21,671 | |||||||||
PPL Energy Supply | |||||||||||||
Long-term debt | 2,962 | 3,127 | 3,272 | 3,556 | |||||||||
PPL Electric | |||||||||||||
Long-term debt | 2,315 | 2,505 | 1,967 | 2,333 | |||||||||
LKE | |||||||||||||
Long-term debt | 4,076 | 4,222 | 4,075 | 4,423 | |||||||||
LG&E | |||||||||||||
Long-term debt | 1,112 | 1,137 | 1,112 | 1,178 | |||||||||
KU | |||||||||||||
Long-term debt | 1,843 | 1,940 | 1,842 | 2,056 |
(a) | Reflected in "Other current liabilities" and "Other deferred credits and noncurrent liabilities" on the Balance Sheets. |
PPL | PPL | ||||||||||||||||||
PPL | Energy Supply | Electric | LKE | LG&E | KU | ||||||||||||||
Commodity price risk (including basis and | |||||||||||||||||||
volumetric risk) | X | X | M | M | M | M | |||||||||||||
Interest rate risk: | |||||||||||||||||||
Debt issuances | X | X | M | M | M | M | |||||||||||||
Defined benefit plans | X | X | M | M | M | M | |||||||||||||
NDT securities | X | X | |||||||||||||||||
Equity securities price risk: | |||||||||||||||||||
Defined benefit plans | X | X | M | M | M | M | |||||||||||||
NDT securities | X | X | |||||||||||||||||
Future stock transactions | X | ||||||||||||||||||
Foreign currency risk - WPD investment and | |||||||||||||||||||
earnings | X |
X | = PPL and PPL Energy Supply actively mitigate market risks through their risk management programs described above. |
M | = The regulatory environments for PPL's regulated entities, by definition, significantly mitigate market risk. |
· | PPL is exposed to market and commodity price, basis and volumetric risk through its domestic subsidiaries as described below. Volumetric risk is significantly mitigated at WPD as a result of the method of regulation in the U.K. |
· | PPL Energy Supply is exposed to commodity price, basis and volumetric risks for energy and energy-related products associated with the sale of electricity from its generating assets and other electricity and gas marketing activities |
· | PPL Electric is exposed to |
· | LG&E's and KU's rates include certain mechanisms for fuel, gas supply and environmental expenses. These mechanisms generally provide for timely recovery of market price and volumetric fluctuations associated with these expenses. |
· | PPL and its subsidiaries are exposed to interest rate risk associated with forecasted fixed-rate and existing floating-rate debt issuances. WPD holds over-the-counter cross currency swaps to limit exposure to market fluctuations on interest and principal payments from changes in foreign currency exchange rates and interest rates. LG&E utilizes over-the-counter interest rate swaps to limit exposure to market fluctuations on floating-rate |
· | PPL and its subsidiaries are exposed to interest rate risk associated with debt securities 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 domestic utilities and for certain plans at WPD due to the recovery mechanisms in place. Additionally, PPL Energy Supply is exposed to interest rate risk associated with debt securities held by the NDT. |
· | PPL and its subsidiaries are exposed to equity securities price risk associated with |
· | PPL is exposed to equity securities price risk from future stock sales and/or purchases. |
· | PPL is exposed to foreign currency exchange risk primarily associated with its investments in U.K. affiliates. |
Three Months | Nine Months | ||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
PPL Energy Supply | |||||||||||||
Operating Revenues | |||||||||||||
Unregulated retail electric and gas | $ | (13) | $ | 4 | $ | (15) | $ | 9 | |||||
Wholesale energy marketing | (716) | 216 | (322) | 229 | |||||||||
Operating Expenses | |||||||||||||
Fuel | 3 | (28) | (11) | (16) | |||||||||
Energy purchases | 569 | (176) | 420 | (49) |
2012 (a) | 2013 | 2014 | ||
12,928 | 49,593 | 50,401 |
Volume (a) | ||||||||||
Commodity | Unit of Measure | 2013 (b) | 2014 | 2015 | Thereafter | |||||
Power | MWh | (9,950,950) | (28,280,182) | (4,110,530) | 10,991,752 | |||||
Capacity | MW-Month | (5,114) | (14,418) | (309) | 1,990 | |||||
Gas | MMBtu | 12,653,279 | 18,794,545 | (3,852,725) | 5,320,453 | |||||
Coal | Tons | (30,000) | ||||||||
FTRs | MW-Month | 5,056 | 8,724 | 1,465 | ||||||
Oil | Barrels | (15,335) | 300,000 | 384,334 | 371,466 |
(a) |
Derivative | Total Power | Fuel Purchases (c) | |||||||
Year | Sales (a) | Sales (b) | Coal | Nuclear | |||||
2012 (d) | 93% | 100% | 105% | 100% | |||||
2013 | 88% | 95% | 97% | 100% | |||||
2014 (e) | 50% | 55% | 77% | 100% |
(b) |
Represents |
2012 (a) | 2013 | 2014 | |||||
Oil Swaps (b) | (20) | 34 | 240 |
Units | 2012 (a) | 2013 | |||||
Net Power Sales (b) | GWh | (919) | (610) | ||||
Net Fuel Purchases (b) (c) | Bcf | 11.8 | 5.9 |
Units | 2012 (a) | 2013 | 2014 | ||||||
Energy sales contracts (b) | GWh | (5,426) | (10,960) | (5,052) | |||||
Related energy supply contracts | |||||||||
Energy purchases (b) | GWh | 3,766 | 6,725 | 2,480 | |||||
Volumetric hedges (c) | GWh | 161 | 382 | 72 | |||||
Generation supply (b) | GWh | 840 | 2,986 | 1,857 | |||||
Retail natural gas sales contracts | Bcf | (4.8) | (11.3) | (2.7) | |||||
Retail natural gas purchase contracts | Bcf | 4.7 | 11.2 | 2.7 |
Units | 2012 (a) | 2013 | 2014 | ||||||
FTRs (b) | GWh | 13,843 | 21,078 | 2,727 | |||||
Power Basis Positions (c) | GWh | (3,854) | (8,278) | (2,628) | |||||
Gas Basis Positions (d) | Bcf | 2.2 | (5.0) | (3.9) |
Units | 2012 (a) | 2013 | 2014 | ||||||
Capacity (b) | MW-months | (3,098) | (5,446) | (2,078) |
September 30, 2012 | December 31, 2011 | September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as | Derivatives not designated | Derivatives designated as | Derivatives not designated | Derivatives designated as | Derivatives not designated | Derivatives designated as | Derivatives not designated | |||||||||||||||||||||||||||||||||||||||||||||||||||
hedging instruments | as hedging instruments (a) | hedging instruments | as hedging instruments (a) | hedging instruments | as hedging instruments (a) | hedging instruments | as hedging instruments (a) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||||||||||||||||||
Current: | Current: | Current: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Price Risk Management | Price Risk Management | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets/Liabilities (b): | Assets/Liabilities (b): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | 16 | $ | 5 | $ | 3 | $ | 3 | $ | 5 | Interest rate swaps (c) | $ | 83 | $ | 16 | $ | 4 | $ | 14 | $ | 22 | $ | 5 | |||||||||||||||||||||||||||||||||||
Cross-currency swaps | $ | 1 | 2 | 2 | Cross-currency swaps | 1 | 1 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency | Foreign currency | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
contracts | 1 | 19 | 7 | $ | 11 | contracts | 5 | $ | 24 | 2 | 23 | |||||||||||||||||||||||||||||||||||||||||||||||
Commodity contracts | 66 | 1 | $ | 1,701 | 1,140 | 872 | 3 | 1,655 | 1,557 | Commodity contracts | 961 | 773 | 59 | $ | 1,452 | 1,010 | ||||||||||||||||||||||||||||||||||||||||||
Total current | 67 | 20 | 1,701 | 1,164 | 882 | 8 | 1,666 | 1,562 | Total current | 84 | 22 | 961 | 801 | 73 | 27 | 1,452 | 1,038 | |||||||||||||||||||||||||||||||||||||||||
Noncurrent: | Noncurrent: | Noncurrent: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Price Risk Management | Price Risk Management | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets/Liabilities (b): | Assets/Liabilities (b): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | 5 | 57 | 55 | Interest rate swaps (c) | 3 | 1 | 37 | 1 | 53 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cross-currency swaps | 23 | 24 | Cross-currency swaps | 27 | 14 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency | Foreign currency | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
contracts | 16 | contracts | 6 | 1 | 32 | 19 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity contracts | 30 | 1 | 807 | 805 | 42 | 2 | 854 | 783 | Commodity contracts | 519 | 462 | 27 | 530 | 556 | ||||||||||||||||||||||||||||||||||||||||||||
Total noncurrent | 53 | 6 | 807 | 878 | 66 | 2 | 854 | 838 | Total noncurrent | 30 | 7 | 520 | 531 | 42 | 1 | 530 | 628 | |||||||||||||||||||||||||||||||||||||||||
Total derivatives | Total derivatives | $ | 120 | $ | 26 | $ | 2,508 | $ | 2,042 | $ | 948 | $ | 10 | $ | 2,520 | $ | 2,400 | Total derivatives | $ | 114 | $ | 29 | $ | 1,481 | $ | 1,332 | $ | 115 | $ | 28 | $ | 1,982 | $ | 1,666 |
(a) | $ |
(b) | Represents the location on the Balance |
(c) | Excludes accrued interest, if applicable. |
Derivatives in | Hedged Items in | Location of Gain | Gain (Loss) Recognized | Gain (Loss) Recognized | |||||||||||||
Fair Value Hedging | Fair Value Hedging | (Loss) Recognized | in Income on Derivative | in Income on Related Item | |||||||||||||
Relationships | Relationships | in Income | Three Months | Nine Months | Three Months | Nine Months | |||||||||||
Interest rate swaps | Fixed rate debt | Interest expense | $ | (1) | $ | 1 | $ | 3 |
Three Months | Nine Months | Three Months | Nine Months | |||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) | Gain (Loss) | Gain (Loss) | Gain (Loss) | |||||||||||||||||||||||||||||||||||||||||||||
Recognized | Recognized | Recognized | Recognized | |||||||||||||||||||||||||||||||||||||||||||||
in Income | in Income | in Income | in Income | |||||||||||||||||||||||||||||||||||||||||||||
on Derivative | Gain (Loss) | on Derivative | on Derivative | Gain (Loss) | on Derivative | |||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) | (Ineffective | Reclassified | (Ineffective | Gain (Loss) | (Ineffective | Reclassified | (Ineffective | |||||||||||||||||||||||||||||||||||||||||
Reclassified | Portion and | from AOCI | Portion and | Location of | Reclassified | Portion and | from AOCI | Portion and | ||||||||||||||||||||||||||||||||||||||||
Derivative Gain | Location of | from AOCI | Amount | into | Amount | Derivative Gain | Gain (Loss) | from AOCI | Amount | into | Amount | |||||||||||||||||||||||||||||||||||||
(Loss) Recognized in | Gain (Loss) | into Income | Excluded from | Income | Excluded from | (Loss) Recognized in | Recognized | into Income | Excluded from | Income | Excluded from | |||||||||||||||||||||||||||||||||||||
Derivative | Derivative | OCI (Effective Portion) | Recognized | (Effective | Effectiveness | (Effective | Effectiveness | Derivative | OCI (Effective Portion) | in Income | (Effective | Effectiveness | (Effective | Effectiveness | ||||||||||||||||||||||||||||||||||
Relationships | Relationships | Three Months | Nine Months | in Income | Portion) | Testing) | Portion) | Testing) | Relationships | Three Months | Nine Months | on Derivative | Portion) | Testing) | Portion) | Testing) | ||||||||||||||||||||||||||||||||
Cash Flow Hedges: | Cash Flow Hedges: | Cash Flow Hedges: | ||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | (6) | $ | (28) | Interest expense | $ | (4) | $ | (13) | Interest rate swaps | $ | 25 | $ | 102 | Interest expense | $ | (5) | $ | (14) | |||||||||||||||||||||||||||||
Other income | Cross-currency swaps | (36) | 16 | Interest expense | (1) | |||||||||||||||||||||||||||||||||||||||||||
(expense) - net | 1 | 1 | Other income | |||||||||||||||||||||||||||||||||||||||||||||
Cross-currency swaps | (49) | (3) | Interest expense | (1) | (expense) - net | (25) | 45 | |||||||||||||||||||||||||||||||||||||||||
Other income | Commodity contracts | Wholesale energy | ||||||||||||||||||||||||||||||||||||||||||||||
(expense) - net | (40) | (12) | marketing | 58 | 198 | $ | 1 | |||||||||||||||||||||||||||||||||||||||||
Commodity contracts | 99 | Wholesale energy | Depreciation | 1 | 2 | |||||||||||||||||||||||||||||||||||||||||||
marketing | 174 | 673 | $ | (1) | Energy purchases | (11) | (41) | |||||||||||||||||||||||||||||||||||||||||
Depreciation | 1 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||
Energy purchases | (20) | $ | 1 | (105) | (2) | |||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | (55) | $ | 68 | $ | 112 | $ | 1 | $ | 545 | $ | (3) | Total | $ | (11) | $ | 118 | $ | 17 | $ | 190 | $ | 1 | ||||||||||||||||||||||||
Net Investment Hedges: | Net Investment Hedges: | Net Investment Hedges: | ||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | (4) | $ | (5) | Foreign currency contracts | $ | (22) | $ | (5) |
Derivatives Not Designated as | Location of Gain (Loss) Recognized in | Location of Gain (Loss) Recognized in | ||||||||||||||
Hedging Instruments: | Income on Derivatives | Three Months | Nine Months | |||||||||||||
Hedging Instruments | Income on Derivative | Three Months | Nine Months | |||||||||||||
Foreign currency contracts | Other income (expense) - net | $ | (47) | $ | (40) | Other income (expense) - net | $ | (117) | $ | 6 | ||||||
Interest rate swaps | Interest expense | (2) | (4) | Interest expense | (2) | (6) | ||||||||||
Commodity contracts | Unregulated retail electric and gas | (3) | 20 | Unregulated retail electric and gas | 3 | 18 | ||||||||||
Wholesale energy marketing | (476) | 900 | Wholesale energy marketing | 104 | 144 | |||||||||||
Net energy trading margins (a) | (10) | 12 | Net energy trading margins (a) | 14 | 8 | |||||||||||
Fuel | 6 | Fuel | 4 | 2 | ||||||||||||
Energy purchases | 364 | (717) | Energy purchases | (86) | (99) | |||||||||||
Total | $ | (168) | $ | 171 | Total | $ | (80) | $ | 73 | |||||||
Derivatives Not Designated as | Location of Gain (Loss) Recognized as | |||||||||||||||
Hedging Instruments: | Regulatory Liabilities/Assets | Three Months | Nine Months | |||||||||||||
Interest rate swaps | Regulatory assets - noncurrent | $ | (9) | $ | (3) |
Derivatives Not Designated as | Location of Gain (Loss) Recognized as | |||||||
Hedging Instruments | Regulatory Liabilities/Assets | Three Months | Nine Months | |||||
Interest rate swaps | Regulatory assets - noncurrent | $ | 2 | $ | 18 | |||
Derivatives Designated as | Location of Gain (Loss) Recognized as | |||||||
Hedging Instruments | Regulatory Liabilities/Assets | Three Months | Nine Months | |||||
Interest rate swaps | Regulatory liabilities - noncurrent | $ | 12 | $ | 70 |
(a) | Differs from the Statement of Income due to intra-month transactions that PPL defines as spot activity, which is not accounted for as a derivative. |
Derivatives in | Hedged Items in | Location of Gain | Gain (Loss) Recognized | Gain (Loss) Recognized | Hedged Items in | Location of Gain | Gain (Loss) Recognized | Gain (Loss) Recognized | ||||||||||||||||||||||||||
Fair Value Hedging | Fair Value Hedging | (Loss) Recognized | in Income on Derivative | in Income on Related Item | Fair Value Hedging | (Loss) Recognized in | in Income on Derivative | in Income on Related Item | ||||||||||||||||||||||||||
Relationships | Relationships | in Income | Three Months | Nine Months | Three Months | Nine Months | Relationships | Income on Derivative | Three Months | Nine Months | Three Months | Nine Months | ||||||||||||||||||||||
Interest rate swaps | Fixed rate debt | Interest expense | $ | 2 | $ | 5 | $ | 23 | Fixed rate debt | Interest expense | $ | (1) | $ | 1 | $ | 3 | ||||||||||||||||||
Other income | ||||||||||||||||||||||||||||||||||
(expense) - net | 22 | 22 |
Three Months | Nine Months | Three Months | Nine Months | |||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) | Gain (Loss) | Gain (Loss) | Gain (Loss) | |||||||||||||||||||||||||||||||||||||||||||||
Recognized | Recognized | Recognized | Recognized | |||||||||||||||||||||||||||||||||||||||||||||
in Income | in Income | in Income | in Income | |||||||||||||||||||||||||||||||||||||||||||||
on Derivative | Gain (Loss) | on Derivative | on Derivative | Gain (Loss) | on Derivative | |||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) | (Ineffective | Reclassified | (Ineffective | Gain (Loss) | (Ineffective | Reclassified | (Ineffective | |||||||||||||||||||||||||||||||||||||||||
Reclassified | Portion and | from AOCI | Portion and | Location of | Reclassified | Portion and | from AOCI | Portion and | ||||||||||||||||||||||||||||||||||||||||
Derivative Gain | Location of | from AOCI | Amount | into | Amount | Derivative Gain | Gain (Loss) | from AOCI | Amount | into | Amount | |||||||||||||||||||||||||||||||||||||
(Loss) Recognized in | Gain (Loss) | into Income | Excluded from | Income | Excluded from | (Loss) Recognized in | Recognized | into Income | Excluded from | Income | Excluded from | |||||||||||||||||||||||||||||||||||||
Derivative | Derivative | OCI (Effective Portion) | Recognized | (Effective | Effectiveness | (Effective | Effectiveness | Derivative | OCI (Effective Portion) | in Income | (Effective | Effectiveness | (Effective | Effectiveness | ||||||||||||||||||||||||||||||||||
Relationships | Relationships | Three Months | Nine Months | in Income | Portion) | Testing) | Portion) | Testing) | Relationships | Three Months | Nine Months | on Derivative | Portion) | Testing) | Portion) | Testing) | ||||||||||||||||||||||||||||||||
Cash Flow Hedges: | Cash Flow Hedges: | Cash Flow Hedges: | ||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | (52) | $ | (51) | Interest expense | $ | (4) | $ | (10) | $ | (13) | Interest rate swaps | $ | (6) | $ | (28) | Interest expense | $ | (4) | $ | (13) | |||||||||||||||||||||||||||
Cross-currency swaps | 46 | 13 | Interest expense | 3 | Other income | |||||||||||||||||||||||||||||||||||||||||||
Other income | (expense) - net | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||||
(expense) - net | 32 | 49 | Cross-currency swaps | (49) | (3) | Interest expense | (1) | |||||||||||||||||||||||||||||||||||||||||
Commodity contracts | 66 | 116 | Wholesale energy | Other income | ||||||||||||||||||||||||||||||||||||||||||||
marketing | 163 | $ | (9) | 530 | (31) | (expense) - net | (40) | (12) | ||||||||||||||||||||||||||||||||||||||||
Fuel | 1 | 1 | Commodity contracts | 99 | Wholesale energy | |||||||||||||||||||||||||||||||||||||||||||
Depreciation | 1 | 1 | marketing | 174 | 673 | $ | (1) | |||||||||||||||||||||||||||||||||||||||||
Energy purchases | (42) | (159) | 1 | Depreciation | 1 | 2 | ||||||||||||||||||||||||||||||||||||||||||
Energy purchases | (20) | $ | 1 | (105) | (2) | |||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 60 | $ | 78 | $ | 151 | $ | (9) | $ | 415 | $ | (43) | Total | $ | (55) | $ | 68 | $ | 112 | $ | 1 | $ | 545 | $ | (3) | ||||||||||||||||||||||
Net Investment Hedges: | Net Investment Hedges: | Net Investment Hedges: | ||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | 5 | $ | 4 | Foreign currency contracts | $ | (4) | $ | (5) |
Derivatives Not Designated as | Location of Gain (Loss) Recognized in | Location of Gain (Loss) Recognized in | ||||||||||||||
Hedging Instruments: | Income on Derivatives | Three Months | Nine Months | |||||||||||||
Hedging Instruments | Income on Derivative | Three Months | Nine Months | |||||||||||||
Foreign currency contracts | Other income (expense) - net | $ | 11 | $ | 66 | Other income (expense) - net | $ | (47) | $ | (40) | ||||||
Interest rate swaps | Interest expense | (2) | (6) | Interest expense | (2) | (4) | ||||||||||
Commodity contracts | Utility | 1 | (2) | Unregulated retail electric and gas | (3) | 20 | ||||||||||
Unregulated retail electric and gas | 6 | 11 | Wholesale energy marketing | (476) | 900 | |||||||||||
Wholesale energy marketing | 193 | 167 | Net energy trading margins (a) | (10) | 12 | |||||||||||
Net energy trading margins (a) | (2) | 9 | Fuel | 6 | ||||||||||||
Fuel | (27) | (12) | Energy purchases | 364 | (717) | |||||||||||
Energy purchases | (192) | (156) | Total | $ | (168) | $ | 171 | |||||||||
Total | $ | (12) | $ | 77 | ||||||||||||
Derivatives Not Designated as | Location of Gain (Loss) Recognized as | |||||||||||||||
Hedging Instruments: | Regulatory Liabilities/Assets | Three Months | Nine Months | |||||||||||||
Interest rate swaps | Regulatory assets | $ | (22) | $ | (23) |
Derivatives Not Designated as | Location of Gain (Loss) Recognized as | |||||||
Hedging Instruments | Regulatory Liabilities/Assets | Three Months | Nine Months | |||||
Interest rate swaps | Regulatory assets - noncurrent | $ | 1 | $ | (2) |
Differs from the Statement of Income due to intra-month transactions that PPL defines as spot activity, which is not accounted for as a derivative. |
September 30, 2012 | December 31, 2011 | September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as | Derivatives not designated | Derivatives designated as | Derivatives not designated | Derivatives not designated | Derivatives designated as | Derivatives not designated | ||||||||||||||||||||||||||||||||||||||||||||||
hedging instruments | as hedging instruments (a) | hedging instruments | hedging instruments (a) | as hedging instruments (a) | hedging instruments | as hedging instruments (a) | ||||||||||||||||||||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||||||||||||||
Current: | Current: | Current: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Price Risk Management | Price Risk Management | |||||||||||||||||||||||||||||||||||||||||||||||||||
Assets/Liabilities (b): | Assets/Liabilities (b): | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity contracts | $ | 66 | $ | 1 | $ | 1,701 | $ | 1,140 | $ | 872 | $ | 3 | $ | 1,655 | $ | 1,557 | Commodity contracts | $ | 961 | $ | 773 | $ | 59 | $ | 1,452 | $ | 1,010 | |||||||||||||||||||||||||
Total current | 66 | 1 | 1,701 | 1,140 | 872 | 3 | 1,655 | 1,557 | Total current | 961 | 773 | 59 | 1,452 | 1,010 | ||||||||||||||||||||||||||||||||||||||
Noncurrent: | Noncurrent: | Noncurrent: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Price Risk Management | Price Risk Management | |||||||||||||||||||||||||||||||||||||||||||||||||||
Assets/Liabilities (b): | Assets/Liabilities (b): | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity contracts | 30 | 1 | 807 | 805 | 42 | 2 | 854 | 783 | Commodity contracts | 519 | 462 | 27 | 530 | 556 | ||||||||||||||||||||||||||||||||||||||
Total noncurrent | 30 | 1 | 807 | 805 | 42 | 2 | 854 | 783 | Total noncurrent | 519 | 462 | 27 | 530 | 556 | ||||||||||||||||||||||||||||||||||||||
Total derivatives | Total derivatives | $ | 96 | $ | 2 | $ | 2,508 | $ | 1,945 | $ | 914 | $ | 5 | $ | 2,509 | $ | 2,340 | Total derivatives | $ | 1,480 | $ | 1,235 | $ | 86 | $ | 1,982 | $ | 1,566 |
(a) | $ |
(b) | Represents the location on the |
Three Months | Nine Months | Three Months | Nine Months | |||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) | Gain (Loss) | Gain (Loss) | Gain (Loss) | |||||||||||||||||||||||||||||||||||||||||||||
Recognized | Recognized | Recognized | Recognized | |||||||||||||||||||||||||||||||||||||||||||||
in Income | in Income | in Income | in Income | |||||||||||||||||||||||||||||||||||||||||||||
on Derivative | on Derivative | on Derivative | on Derivative | |||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) | (Ineffective | Gain (Loss) | (Ineffective | Gain (Loss) | (Ineffective | Gain (Loss) | (Ineffective | |||||||||||||||||||||||||||||||||||||||||
Reclassified | Portion and | Reclassified | Portion and | Location of | Reclassified | Portion and | Reclassified | Portion and | ||||||||||||||||||||||||||||||||||||||||
Derivative Gain | Location of | from AOCI | Amount | from AOCI | Amount | Derivative Gain | Gains (Losses) | from AOCI | Amount | from AOCI | Amount | |||||||||||||||||||||||||||||||||||||
(Loss) Recognized in | Gains (Losses) | into Income | Excluded from | into Income | Excluded from | (Loss) Recognized in | Recognized | into Income | Excluded from | into Income | Excluded from | |||||||||||||||||||||||||||||||||||||
Derivative | Derivative | OCI (Effective Portion) | Recognized | (Effective | Effectiveness | (Effective | Effectiveness | Derivative | OCI (Effective Portion) | in Income | (Effective | Effectiveness | (Effective | Effectiveness | ||||||||||||||||||||||||||||||||||
Relationships | Relationships | Three Months | Nine Months | in Income | Portion) | Testing) | Portion) | Testing) | Relationships | Three Months | Nine Months | on Derivative | Portion) | Testing) | Portion) | Testing) | ||||||||||||||||||||||||||||||||
Cash Flow Hedges: | Cash Flow Hedges: | |||||||||||||||||||||||||||||||||||||||||||||||
Wholesale energy | Commodity contracts | Wholesale energy | ||||||||||||||||||||||||||||||||||||||||||||||
Commodity contracts | $ | 99 | marketing | $ | 174 | $ | 673 | $ | (1) | marketing | $ | 58 | $ | 198 | $ | 1 | ||||||||||||||||||||||||||||||||
Depreciation | 1 | Depreciation | 1 | 2 | ||||||||||||||||||||||||||||||||||||||||||||
Energy purchases | (20) | $ | 1 | (105) | (2) | Energy purchases | (11) | (41) | ||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 99 | $ | 154 | $ | 1 | $ | 569 | $ | (3) | Total | $ | 48 | $ | 159 | $ | 1 | ||||||||||||||||||||||||||||||
Derivatives Not Designated as | Location of Gain (Loss) Recognized in | Location of Gain (Loss) Recognized in | ||||||||||||||
Hedging Instruments: | Income on Derivatives | Three Months | Nine Months | |||||||||||||
Hedging Instrument | Income on Derivative | Three Months | Nine Months | |||||||||||||
Commodity contracts | Unregulated retail electric and gas | $ | (3) | $ | 20 | Unregulated retail electric and gas | $ | 3 | $ | 18 | ||||||
Wholesale energy marketing | (476) | 900 | Wholesale energy marketing | 104 | 144 | |||||||||||
Net energy trading margins (a) | (10) | 12 | Net energy trading margins (a) | 14 | 8 | |||||||||||
Fuel | 6 | Fuel | 4 | 2 | ||||||||||||
Energy purchases | 364 | (717) | Energy purchases | (86) | (99) | |||||||||||
Total | $ | (119) | $ | 215 | Total | $ | 39 | $ | 73 |
(a) | Differs from the |
Three Months | Nine Months | |||||||||||||||||||||||
Gain (Loss) | Gain (Loss) | |||||||||||||||||||||||
Recognized | Recognized | |||||||||||||||||||||||
in Income | in Income | |||||||||||||||||||||||
on Derivative | on Derivative | |||||||||||||||||||||||
Gain (Loss) | (Ineffective | Gain (Loss) | (Ineffective | |||||||||||||||||||||
Location of | Reclassified | Portion and | Reclassified | Portion and | ||||||||||||||||||||
Derivative Gain | Gains (Losses) | from AOCI | Amount | from AOCI | Amount | |||||||||||||||||||
(Loss) Recognized in | Recognized | into Income | Excluded from | into Income | Excluded from | |||||||||||||||||||
Derivative | OCI (Effective Portion) | in Income | (Effective | Effectiveness | (Effective | Effectiveness | ||||||||||||||||||
Relationships | Three Months | Nine Months | on Derivative | Portion) | Testing) | Portion) | Testing) | |||||||||||||||||
Cash Flow Hedges: | ||||||||||||||||||||||||
Wholesale energy | ||||||||||||||||||||||||
Commodity contracts | $ | 99 | marketing | $ | 174 | $ | 673 | $ | (1) | |||||||||||||||
Depreciation | 1 | |||||||||||||||||||||||
Energy purchases | (20) | $ | 1 | (105) | (2) | |||||||||||||||||||
Total | $ | 99 | $ | 154 | $ | 1 | $ | 569 | $ | (3) |
Three Months | Nine Months | |||||||||||||||||||||||
Gain (Loss) | Gain (Loss) | |||||||||||||||||||||||
Recognized | Recognized | |||||||||||||||||||||||
in Income | in Income | |||||||||||||||||||||||
on Derivative | on Derivative | |||||||||||||||||||||||
Gain (Loss) | (Ineffective | Gain (Loss) | (Ineffective | |||||||||||||||||||||
Reclassified | Portion and | Reclassified | Portion and | |||||||||||||||||||||
Derivative Gain | Location of | from AOCI | Amount | from AOCI | Amount | |||||||||||||||||||
(Loss) Recognized in | Gains (Losses) | into Income | Excluded from | into Income | Excluded from | |||||||||||||||||||
Derivative | OCI (Effective Portion) | Recognized | (Effective | Effectiveness | (Effective | Effectiveness | ||||||||||||||||||
Relationships | Three Months | Nine Months | in Income | Portion) | Testing) | Portion) | Testing) | |||||||||||||||||
Cash Flow Hedges: | ||||||||||||||||||||||||
Wholesale energy | ||||||||||||||||||||||||
Commodity contracts | $ | 66 | $ | 116 | marketing | $ | 163 | $ | (9) | $ | 530 | $ | (31) | |||||||||||
Fuel | 1 | 1 | ||||||||||||||||||||||
Depreciation | 1 | 1 | ||||||||||||||||||||||
Energy purchases | (42) | (159) | 1 | |||||||||||||||||||||
Total | $ | 66 | $ | 116 | $ | 123 | $ | (9) | $ | 373 | $ | (30) |
Derivatives Not Designated as | Location of Gain (Loss) Recognized in | |||||||
Hedging Instruments | Income on Derivative | Three Months | Nine Months | |||||
Commodity contracts | Unregulated retail electric and gas | $ | (3) | $ | 20 | |||
Wholesale energy marketing | (476) | 900 | ||||||
Net energy trading margins (a) | (10) | 12 | ||||||
Fuel | 6 | |||||||
Energy purchases | 364 | (717) | ||||||
Total | $ | (119) | $ | 215 |
Derivatives Not Designated as | Location of Gain (Loss) Recognized in | |||||||
Hedging Instruments: | Income on Derivatives | Three Months | Nine Months | |||||
Commodity contracts | Unregulated retail electric and gas | $ | 6 | $ | 11 | |||
Wholesale energy marketing | 193 | 167 | ||||||
Net energy trading margins (a) | (2) | 9 | ||||||
Fuel | (27) | (12) | ||||||
Energy purchases | (192) | (156) | ||||||
Total | $ | (22) | $ | 19 |
(a) | Differs from the |
September 30, 2013 | December 31, 2012 | ||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||||
Current: | |||||||||||||||||||
Price Risk Management | |||||||||||||||||||
Assets/Liabilities (a): | |||||||||||||||||||
Interest rate swaps | $ | 14 | $ | 14 |
(a) | Represents the location on the Balance Sheets. |
Derivative Instruments | Location of Gain (Loss) | Three Months | Nine Months | |||||
Interest rate swaps | Regulatory liabilities - noncurrent | $ | 12 | $ | 70 |
September 30, 2013 | December 31, 2012 | ||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||||
Current: | |||||||||||||||||||
Price Risk Management | |||||||||||||||||||
Assets/Liabilities (a): | |||||||||||||||||||
Interest rate swaps | $ | 7 | $ | 7 |
(a) | Represents the location on the Balance Sheets. |
Derivative Instruments | Location of Gain (Loss) | Three Months | Nine Months | |||||
Interest rate swaps | Regulatory liabilities - noncurrent | $ | 6 | $ | 35 |
September 30, 2013 | December 31, 2012 | ||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||||
Current: | |||||||||||||||||||
Price Risk Management | |||||||||||||||||||
Assets/Liabilities (a): | |||||||||||||||||||
Interest rate swaps | $ | 7 | $ | 7 |
(a) | Represents the location on the Balance Sheets. |
Derivative Instruments | Location of Gain (Loss) | Three Months | Nine Months | |||||
Interest rate swaps | Regulatory liabilities - noncurrent | $ | 6 | $ | 35 |
September 30, 2012 | December 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as | Derivatives not designated | Derivatives designated as | Derivatives not designated | |||||||||||||||||||||||||||||||||||||||||||||
hedging instruments | as hedging instruments | hedging instruments | as hedging instruments | September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||||||||||||
Current: | Current: | Current: | ||||||||||||||||||||||||||||||||||||||||||||||
Other Current | Price Risk Management | |||||||||||||||||||||||||||||||||||||||||||||||
Assets/Liabilities (a): | Assets/Liabilities (a): | |||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | 5 | $ | 5 | Interest rate swaps | $ | 4 | $ | 5 | |||||||||||||||||||||||||||||||||||||||
Total current | 5 | 5 | Total current | 4 | 5 | |||||||||||||||||||||||||||||||||||||||||||
Noncurrent: | Noncurrent: | Noncurrent: | ||||||||||||||||||||||||||||||||||||||||||||||
Price Risk Management | Price Risk Management | |||||||||||||||||||||||||||||||||||||||||||||||
Assets/Liabilities (a): | Assets/Liabilities (a): | |||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | 57 | 55 | Interest rate swaps | 37 | 53 | |||||||||||||||||||||||||||||||||||||||||||
Total noncurrent | 57 | 55 | Total noncurrent | 37 | 53 | |||||||||||||||||||||||||||||||||||||||||||
Total derivatives | Total derivatives | $ | 62 | $ | 60 | Total derivatives | $ | 41 | $ | 58 |
(a) | Represents the location on the Balance |
Location of Gain (Loss) Recognized in | ||||||||
Derivative Instruments | Income on Derivatives | Three Months | Nine Months | |||||
Interest rate swaps | Interest expense | $ | (2) | $ | (6) |
Location of Gain (Loss) Recognized in | ||||||||
Derivative Instruments | Regulatory Assets | Three Months | Nine Months | |||||
Interest rate swaps | Regulatory assets - noncurrent (a) | $ | 2 | $ | 18 |
(a) | Includes both realized and unrealized gains (losses). |
Derivatives Not Designated as | Location of Gain (Loss) Recognized in | |||||||
Hedging Instruments: | Income on Derivatives | Three Months | Nine Months | |||||
Interest rate swaps | Interest expense | $ | (2) | $ | (6) | |||
Derivatives Not Designated as | Location of Gain (Loss) Recognized as | |||||||
Hedging Instruments: | Regulatory Liabilities/Assets | Three Months | Nine Months | |||||
Interest rate swaps | Regulatory assets | $ | 1 | $ | (2) |
Location of Gain (Loss) Recognized in | ||||||||
Derivative Instruments | Income on Derivatives | Three Months | Nine Months | |||||
Interest rate swaps | Interest expense | $ | (2) | $ | (6) |
Location of Gain (Loss) Recognized in | ||||||||
Derivative Instruments | Regulatory Assets | Three Months | Nine Months | |||||
Interest rate swaps | Regulatory assets - noncurrent (a) | $ | 1 | $ | (2) |
(a) | Includes both realized and unrealized gains (losses). |
Derivatives Not Designated as | Location of Gain (Loss) Recognized in | |||||||
Hedging Instruments: | Income on Derivatives | Three Months | Nine Months | |||||
Interest rate swaps | Interest expense | $ | (2) | $ | (6) | |||
Commodity contracts | Operating revenues | 1 | (2) | |||||
Total | $ | (1) | $ | (8) | ||||
Derivatives Not Designated as | Location of Gain (Loss) Recognized as | |||||||
Hedging Instruments: | Regulatory Liabilities/Assets | Three Months | Nine Months | |||||
Interest rate swaps | Regulatory assets | $ | (22) | $ | (23) |
Assets | Liabilities | ||||||||||||||||||||||||||
Eligible for Offset | Eligible for Offset | ||||||||||||||||||||||||||
Cash | Cash | ||||||||||||||||||||||||||
Derivative | Collateral | Derivative | Collateral | ||||||||||||||||||||||||
Gross | Instruments | Received | Net | Gross | Instruments | Pledged | Net | ||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||
PPL | |||||||||||||||||||||||||||
Energy Commodities | $ | 1,480 | $ | 1,122 | $ | 14 | $ | 344 | $ | 1,235 | $ | 1,122 | $ | 113 | |||||||||||||
Treasury Derivatives | 115 | 47 | 68 | 126 | 47 | $ | 22 | 57 | |||||||||||||||||||
Total | $ | 1,595 | $ | 1,169 | $ | 14 | $ | 412 | $ | 1,361 | $ | 1,169 | $ | 22 | $ | 170 | |||||||||||
PPL Energy Supply | |||||||||||||||||||||||||||
Energy Commodities | $ | 1,480 | $ | 1,122 | $ | 14 | $ | 344 | $ | 1,235 | $ | 1,122 | $ | 113 |
LKE | ||||||||||||||||||||||||||
Treasury Derivatives | $ | 55 | $ | 22 | $ | 33 | ||||||||||||||||||||
LG&E | ||||||||||||||||||||||||||
Treasury Derivatives | $ | 48 | $ | 22 | $ | 26 | ||||||||||||||||||||
KU | ||||||||||||||||||||||||||
Treasury Derivatives | $ | 7 | $ | 7 |
December 31, 2012 | ||||||||||||||||||||||||||
PPL | ||||||||||||||||||||||||||
Energy Commodities | $ | 2,068 | $ | 1,413 | $ | 111 | $ | 544 | $ | 1,566 | $ | 1,413 | $ | 9 | $ | 144 | ||||||||||
Treasury Derivatives | 29 | 19 | 10 | 128 | 19 | 30 | 79 | |||||||||||||||||||
Total | $ | 2,097 | $ | 1,432 | $ | 111 | $ | 554 | $ | 1,694 | $ | 1,432 | $ | 39 | $ | 223 | ||||||||||
PPL Energy Supply | ||||||||||||||||||||||||||
Energy Commodities | $ | 2,068 | $ | 1,413 | $ | 111 | $ | 544 | $ | 1,566 | $ | 1,413 | $ | 9 | $ | 144 |
LKE | ||||||||||||||||||||||||||
Treasury Derivatives | $ | 14 | $ | 14 | $ | 58 | $ | 30 | $ | 28 | ||||||||||||||||
LG&E | ||||||||||||||||||||||||||
Treasury Derivatives | $ | 7 | $ | 7 | $ | 58 | $ | 30 | $ | 28 | ||||||||||||||||
KU | ||||||||||||||||||||||||||
Treasury Derivatives | $ | 7 | $ | 7 |
PPL | PPL | |||||||||||||||||||||||||||
PPL | Energy Supply | LKE | LG&E | PPL | Energy Supply | LKE | LG&E | |||||||||||||||||||||
Aggregate fair value of derivative instruments in a net liability | Aggregate fair value of derivative instruments in a net liability | Aggregate fair value of derivative instruments in a net liability | ||||||||||||||||||||||||||
position with credit contingent provisions | $ | 225 | $ | 127 | $ | 40 | $ | 40 | position with credit risk-related contingent features | $ | 178 | $ | 115 | $ | 29 | $ | 29 | |||||||||||
Aggregate fair value of collateral posted on these derivative instruments | Aggregate fair value of collateral posted on these derivative instruments | 33 | 1 | 32 | 32 | Aggregate fair value of collateral posted on these derivative instruments | 39 | 17 | 22 | 22 | ||||||||||||||||||
Aggregate fair value of additional collateral requirements in the event of | Aggregate fair value of additional collateral requirements in the event of | Aggregate fair value of additional collateral requirements in the event of | ||||||||||||||||||||||||||
a credit downgrade below investment grade (a) | 201 | 134 | 9 | 9 | a credit downgrade below investment grade (a) | 167 | 127 | 7 | 7 |
(a) | Includes the effect of net receivables and payables already recorded on the Balance Sheet. |
(PPL, PPL Energy Supply, LKE, LG&E and KU) | |||||||||||||||||
The changes in the carrying amounts of AROs were as follows. | |||||||||||||||||
PPL | |||||||||||||||||
PPL | Energy Supply | LKE | LG&E | KU | |||||||||||||
Balance at December 31, 2011 | $ | 497 | $ | 359 | $ | 118 | $ | 57 | $ | 61 | |||||||
Accretion expense | 27 | 21 | 5 | 2 | 3 | ||||||||||||
Obligations incurred | 3 | 3 | |||||||||||||||
Changes in estimated cash flow or settlement date | (7) | (7) | |||||||||||||||
Obligations settled | (7) | (5) | (2) | (2) | |||||||||||||
Balance at September 30, 2012 | $ | 513 | $ | 371 | $ | 121 | $ | 57 | $ | 64 |
(All Registrants except PPL Electric) | |||||||||||||||||
The changes in the carrying amounts of AROs were as follows. | |||||||||||||||||
PPL | |||||||||||||||||
PPL | Energy Supply | LKE | LG&E | KU | |||||||||||||
Balance at December 31, 2012 | $ | 552 | $ | 375 | $ | 131 | $ | 62 | $ | 69 | |||||||
Accretion expense | 27 | 22 | 4 | 2 | 2 | ||||||||||||
Obligations incurred | 6 | 6 | |||||||||||||||
Changes in estimated cash flow or settlement date | 123 | 1 | 122 | 17 | 105 | ||||||||||||
Effect of foreign currency exchange rates | (2) | ||||||||||||||||
Obligations settled | (12) | (6) | (6) | (6) | |||||||||||||
Balance at September 30, 2013 | $ | 694 | $ | 398 | $ | 251 | $ | 75 | $ | 176 |
September 30, 2012 | December 31, 2011 | September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | Gross | Gross | Gross | Gross | Gross | |||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Amortized | Unrealized | Unrealized | Amortized | Unrealized | Unrealized | Amortized | Unrealized | Unrealized | |||||||||||||||||||||||||||||||||||||||||||||||
Cost | Gains | Losses | Fair Value | Cost | Gains | Losses | Fair Value | Cost | Gains | Losses | Fair Value | Cost | Gains | Losses | Fair Value | |||||||||||||||||||||||||||||||||||||||||||
PPL | PPL | PPL | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NDT funds: | NDT funds: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 12 | $ | 12 | $ | 12 | $ | 12 | Cash and cash equivalents | $ | 14 | $ | 14 | $ | 11 | $ | 11 | |||||||||||||||||||||||||||||||||||||||||
Equity securities: | Equity securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. large-cap | 219 | $ | 193 | 412 | 211 | $ | 146 | 357 | U.S. large-cap | 230 | $ | 264 | 494 | 222 | $ | 190 | 412 | |||||||||||||||||||||||||||||||||||||||||
U.S. mid/small-cap | 30 | 29 | 59 | 29 | 23 | 52 | U.S. mid/small-cap | 31 | 43 | 74 | 30 | 30 | 60 | |||||||||||||||||||||||||||||||||||||||||||||
Debt securities: | Debt securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury | 85 | 10 | 95 | 76 | 10 | 86 | U.S. Treasury | 90 | 6 | 96 | 86 | 9 | 95 | |||||||||||||||||||||||||||||||||||||||||||||
U.S. government sponsored | U.S. government sponsored | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
agency | 8 | 1 | 9 | 9 | 1 | 10 | agency | 5 | 1 | 6 | 8 | 1 | 9 | |||||||||||||||||||||||||||||||||||||||||||||
Municipality | 79 | 5 | $ | 1 | 83 | 80 | 4 | $ | 1 | 83 | Municipality | 74 | 2 | $ | 1 | 75 | 78 | 5 | $ | 1 | 82 | |||||||||||||||||||||||||||||||||||||
Investment-grade corporate | 36 | 4 | 40 | 35 | 3 | 38 | Investment-grade corporate | 39 | 2 | 1 | 40 | 36 | 4 | 40 | ||||||||||||||||||||||||||||||||||||||||||||
Other | 2 | 2 | 2 | 2 | Other | 3 | 3 | 3 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Receivables/payables, net | (1) | (1) | Receivables/payables, net | 2 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total NDT funds | 470 | 242 | 1 | 711 | 454 | 187 | 1 | 640 | Total NDT funds | 488 | 318 | 2 | 804 | 474 | 239 | 1 | 712 | |||||||||||||||||||||||||||||||||||||||||
Auction rate securities | 20 | 1 | 19 | 25 | 1 | 24 | Auction rate securities | 20 | 1 | 19 | 20 | 1 | 19 | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 490 | $ | 242 | $ | 2 | $ | 730 | $ | 479 | $ | 187 | $ | 2 | $ | 664 | Total | $ | 508 | $ | 318 | $ | 3 | $ | 823 | $ | 494 | $ | 239 | $ | 2 | $ | 731 | |||||||||||||||||||||||||
PPL Energy Supply | PPL Energy Supply | PPL Energy Supply | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NDT funds: | NDT funds: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 12 | $ | 12 | $ | 12 | $ | 12 | Cash and cash equivalents | $ | 14 | $ | 14 | $ | 11 | $ | 11 | |||||||||||||||||||||||||||||||||||||||||
Equity securities: | Equity securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. large-cap | 219 | $ | 193 | 412 | 211 | $ | 146 | 357 | U.S. large-cap | 230 | $ | 264 | 494 | 222 | $ | 190 | 412 | |||||||||||||||||||||||||||||||||||||||||
U.S. mid/small-cap | 30 | 29 | 59 | 29 | 23 | 52 | U.S. mid/small-cap | 31 | 43 | 74 | 30 | 30 | 60 | |||||||||||||||||||||||||||||||||||||||||||||
Debt securities: | Debt securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury | 85 | 10 | 95 | 76 | 10 | 86 | U.S. Treasury | 90 | 6 | 96 | 86 | 9 | 95 | |||||||||||||||||||||||||||||||||||||||||||||
U.S. government sponsored | U.S. government sponsored | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
agency | 8 | 1 | 9 | 9 | 1 | 10 | agency | 5 | 1 | 6 | 8 | 1 | 9 | |||||||||||||||||||||||||||||||||||||||||||||
Municipality | 79 | 5 | $ | 1 | 83 | 80 | 4 | $ | 1 | 83 | Municipality | 74 | 2 | $ | 1 | 75 | 78 | 5 | $ | 1 | 82 | |||||||||||||||||||||||||||||||||||||
Investment-grade corporate | 36 | 4 | 40 | 35 | 3 | 38 | Investment-grade corporate | 39 | 2 | 1 | 40 | 36 | 4 | 40 | ||||||||||||||||||||||||||||||||||||||||||||
Other | 2 | 2 | 2 | 2 | Other | 3 | 3 | 3 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Receivables/payables, net | (1) | (1) | Receivables/payables, net | 2 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total NDT funds | 470 | 242 | 1 | 711 | 454 | 187 | 1 | 640 | Total NDT funds | 488 | 318 | 2 | 804 | 474 | 239 | 1 | 712 | |||||||||||||||||||||||||||||||||||||||||
Auction rate securities | 17 | 1 | 16 | 20 | 1 | 19 | Auction rate securities | 17 | 1 | 16 | 17 | 1 | 16 | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 487 | $ | 242 | $ | 2 | $ | 727 | $ | 474 | $ | 187 | $ | 2 | $ | 659 | Total | $ | 505 | $ | 318 | $ | 3 | $ | 820 | $ | 491 | $ | 239 | $ | 2 | $ | 728 |
Maturity | Maturity | Maturity | Maturity | Maturity | Maturity | Maturity | Maturity | |||||||||||||||||||||||||
Less Than | 1-5 | 5-10 | in Excess | Less Than | 1-5 | 6-10 | in Excess | |||||||||||||||||||||||||
1 Year | Years | Years | of 10 Years | Total | 1 Year | Years | Years | of 10 Years | Total | |||||||||||||||||||||||
PPL | PPL | PPL | ||||||||||||||||||||||||||||||
Amortized cost | Amortized cost | $ | 11 | $ | 81 | $ | 61 | $ | 77 | $ | 230 | Amortized cost | $ | 6 | $ | 92 | $ | 56 | $ | 77 | $ | 231 | ||||||||||
Fair value | Fair value | 11 | 85 | 67 | 85 | 248 | Fair value | 6 | 96 | 58 | 79 | 239 | ||||||||||||||||||||
PPL Energy Supply | PPL Energy Supply | PPL Energy Supply | ||||||||||||||||||||||||||||||
Amortized cost | Amortized cost | $ | 11 | $ | 81 | $ | 61 | $ | 74 | $ | 227 | Amortized cost | $ | 6 | $ | 92 | $ | 56 | $ | 74 | $ | 228 | ||||||||||
Fair value | Fair value | 11 | 85 | 67 | 82 | 245 | Fair value | 6 | 96 | 58 | 76 | 236 |
Three Months | Nine Months | Three Months | Nine Months | |||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
PPL | PPL | PPL | ||||||||||||||||||||||||
Proceeds from sales of NDT securities (a) | Proceeds from sales of NDT securities (a) | $ | 23 | $ | 34 | $ | 102 | $ | 134 | Proceeds from sales of NDT securities (a) | $ | 33 | $ | 23 | $ | 92 | $ | 102 | ||||||||
Other proceeds from sales | Other proceeds from sales | 5 | 163 | Other proceeds from sales | 5 | |||||||||||||||||||||
Gross realized gains (b) | Gross realized gains (b) | 2 | 3 | 15 | 26 | Gross realized gains (b) | 3 | 2 | 10 | 15 | ||||||||||||||||
Gross realized losses (b) | Gross realized losses (b) | 2 | 4 | 8 | 15 | Gross realized losses (b) | 2 | 2 | 6 | 8 | ||||||||||||||||
PPL Energy Supply | PPL Energy Supply | PPL Energy Supply | ||||||||||||||||||||||||
Proceeds from sales of NDT securities (a) | Proceeds from sales of NDT securities (a) | $ | 23 | $ | 34 | $ | 102 | $ | 134 | Proceeds from sales of NDT securities (a) | $ | 33 | $ | 23 | $ | 92 | $ | 102 | ||||||||
Other proceeds from sales | Other proceeds from sales | 3 | Other proceeds from sales | 3 | ||||||||||||||||||||||
Gross realized gains (b) | Gross realized gains (b) | 2 | 3 | 15 | 26 | Gross realized gains (b) | 3 | 2 | 10 | 15 | ||||||||||||||||
Gross realized losses (b) | Gross realized losses (b) | 2 | 4 | 8 | 15 | Gross realized losses (b) | 2 | 2 | 6 | 8 |
(a) | These proceeds are used to pay income taxes and fees related to managing the trust. Remaining proceeds are reinvested in the trust. |
(b) | Excludes the impact of other-than-temporary impairment charges recognized |
Foreign | Unrealized gains (losses) | Defined benefit plans | ||||||||||||||||||||||
currency | Available- | Equity | Prior | Actuarial | Transition | |||||||||||||||||||
translation | for-sale | Qualifying | investees' | service | gain | asset | ||||||||||||||||||
adjustments | securities | derivatives | AOCI | costs | (loss) | (obligation) | Total | |||||||||||||||||
PPL | ||||||||||||||||||||||||
June 30, 2013 | $ | (401) | $ | 135 | $ | 102 | $ | 1 | $ | (11) | $ | (1,955) | $ | 1 | $ | (2,128) | ||||||||
Amounts arising during the period | 87 | 15 | (9) | 93 | ||||||||||||||||||||
Reclassifications from AOCI | (6) | (1) | 2 | 33 | 28 | |||||||||||||||||||
Net OCI during the period | 87 | 15 | (15) | (1) | 2 | 33 | 121 | |||||||||||||||||
September 30, 2013 | $ | (314) | $ | 150 | $ | 87 | $ | $ | (9) | $ | (1,922) | $ | 1 | $ | (2,007) | |||||||||
December 31, 2012 | $ | (149) | $ | 112 | $ | 132 | $ | 1 | $ | (14) | $ | (2,023) | $ | 1 | $ | (1,940) | ||||||||
Amounts arising during the period | (165) | 40 | 77 | (48) | ||||||||||||||||||||
Reclassifications from AOCI | (2) | (122) | (1) | 5 | 101 | (19) | ||||||||||||||||||
Net OCI during the period | (165) | 38 | (45) | (1) | 5 | 101 | (67) | |||||||||||||||||
September 30, 2013 | $ | (314) | $ | 150 | $ | 87 | $ | $ | (9) | $ | (1,922) | $ | 1 | $ | (2,007) |
PPL Energy Supply | ||||||||||||||||||||||||
June 30, 2013 | $ | 135 | $ | 144 | $ | (8) | $ | (257) | $ | 14 | ||||||||||||||
Amounts arising during the period | 15 | 15 | ||||||||||||||||||||||
Reclassifications from AOCI | (29) | 1 | 3 | (25) | ||||||||||||||||||||
Net OCI during the period | 15 | (29) | 1 | 3 | (10) | |||||||||||||||||||
September 30, 2013 | $ | 150 | $ | 115 | $ | (7) | $ | (254) | $ | 4 | ||||||||||||||
December 31, 2012 | $ | 112 | $ | 211 | $ | (10) | $ | (265) | $ | 48 | ||||||||||||||
Amounts arising during the period | 40 | 40 | ||||||||||||||||||||||
Reclassifications from AOCI | (2) | (96) | 3 | 11 | (84) | |||||||||||||||||||
Net OCI during the period | 38 | (96) | 3 | 11 | (44) | |||||||||||||||||||
September 30, 2013 | $ | 150 | $ | 115 | $ | (7) | $ | (254) | $ | 4 |
Three Months | |||||||||||||||||||||||||
Affected Line Item on the Statements of Income | |||||||||||||||||||||||||
Other | |||||||||||||||||||||||||
Wholesale | Income | ||||||||||||||||||||||||
energy | Energy | (Expense), | Interest | Total | Income | Total | |||||||||||||||||||
Details about AOCI | marketing | purchases | Depreciation | net | Expense | Pre-tax | Taxes | After-tax | |||||||||||||||||
PPL | |||||||||||||||||||||||||
Available-for-sale securities | $ | 1 | $ | 1 | $ | (1) | |||||||||||||||||||
Qualifying derivatives | |||||||||||||||||||||||||
Interest rate swaps | $ | (5) | (5) | 2 | $ | (3) | |||||||||||||||||||
Cross-currency swaps | (25) | (1) | (26) | 7 | (19) | ||||||||||||||||||||
Energy commodities | $ | 58 | $ | (11) | $ | 1 | 48 | (20) | 28 | ||||||||||||||||
Total | $ | 58 | $ | (11) | $ | 1 | $ | (25) | $ | (6) | 17 | (11) | 6 | ||||||||||||
Equity investees' AOCI | $ | 1 | 1 | 1 | |||||||||||||||||||||
Defined benefit plans | |||||||||||||||||||||||||
Prior service costs | (3) | 1 | (2) | ||||||||||||||||||||||
Net actuarial loss | (45) | 12 | (33) | ||||||||||||||||||||||
Total | $ | (48) | $ | 13 | (35) | ||||||||||||||||||||
Total reclassifications | |||||||||||||||||||||||||
during the period | $ | (28) | |||||||||||||||||||||||
PPL Energy Supply | |||||||||||||||||||||||||
Available-for-sale securities | $ | 1 | $ | 1 | $ | (1) | |||||||||||||||||||
Qualifying derivatives | |||||||||||||||||||||||||
Energy commodities | $ | 58 | $ | (11) | $ | 1 | 48 | (19) | $ | 29 | |||||||||||||||
Defined benefit plans | |||||||||||||||||||||||||
Prior service costs | (2) | 1 | (1) | ||||||||||||||||||||||
Net actuarial loss | (5) | 2 | (3) | ||||||||||||||||||||||
Total | $ | (7) | $ | 3 | (4) | ||||||||||||||||||||
Total reclassifications | |||||||||||||||||||||||||
during the period | $ | 25 | |||||||||||||||||||||||
Nine Months | |||||||||||||||||||||||||
Affected Line Item on the Statements of Income | |||||||||||||||||||||||||
Other | |||||||||||||||||||||||||
Wholesale | Income | ||||||||||||||||||||||||
energy | Energy | (Expense), | Interest | Total | Income | Total | |||||||||||||||||||
Details about AOCI | marketing | purchases | Depreciation | net | Expense | Pre-tax | Taxes | After-tax | |||||||||||||||||
PPL | |||||||||||||||||||||||||
Available-for-sale securities | $ | 4 | $ | 4 | $ | (2) | $ | 2 | |||||||||||||||||
Qualifying derivatives | |||||||||||||||||||||||||
Interest rate swaps | $ | (14) | (14) | 6 | (8) | ||||||||||||||||||||
Cross-currency swaps | 45 | 45 | (10) | 35 | |||||||||||||||||||||
Energy commodities | $ | 198 | $ | (41) | $ | 2 | 159 | (64) | 95 | ||||||||||||||||
Total | $ | 198 | $ | (41) | $ | 2 | $ | 45 | $ | (14) | 190 | (68) | 122 | ||||||||||||
Equity investees' AOCI | $ | 1 | 1 | 1 | |||||||||||||||||||||
Defined benefit plans | |||||||||||||||||||||||||
Prior service costs | (8) | 3 | (5) | ||||||||||||||||||||||
Net actuarial loss | (138) | 37 | (101) | ||||||||||||||||||||||
Total | $ | (146) | $ | 40 | (106) | ||||||||||||||||||||
Total reclassifications | |||||||||||||||||||||||||
during the period | $ | 19 | |||||||||||||||||||||||
PPL Energy Supply | |||||||||||||||||||||||||
Available-for-sale securities | $ | 4 | $ | 4 | $ | (2) | $ | 2 | |||||||||||||||||
Qualifying derivatives | |||||||||||||||||||||||||
Energy commodities | $ | 198 | $ | (41) | $ | 2 | 159 | (63) | 96 | ||||||||||||||||
Defined benefit plans | |||||||||||||||||||||||||
Prior service costs | (5) | 2 | (3) | ||||||||||||||||||||||
Net actuarial loss | (18) | 7 | (11) | ||||||||||||||||||||||
Total | $ | (23) | $ | 9 | (14) | ||||||||||||||||||||
Total reclassifications | |||||||||||||||||||||||||
during the period | $ | 84 |
· | "Overview" provides a description of |
· | "Results of Operations" provides a |
· | "Financial Condition - Liquidity and Capital Resources" provides an analysis of |
· | "Financial Condition - Risk Management" provides an explanation of |
PPL Corporation* | |||||||||||||||||||||||||||
PPL Capital Funding | |||||||||||||||||||||||||||
PPL Global ● Engages in the regulated distribution of electricity in the U.K. | LKE* | PPL Electric* ● Engages in the regulated transmission and distribution of electricity in Pennsylvania | PPL Energy Supply* | ||||||||||||||||||||||||
LG&E* ● Engages in the regulated generation, transmission, distribution and sale of electricity in Kentucky, and distribution and sale of natural gas in Kentucky | KU* ● Engages in the regulated generation, transmission, distribution and sale of electricity, primarily in Kentucky | PPL EnergyPlus ● Performs energy marketing and trading activities ● Purchases fuel | PPL Generation ● Engages in the competitive generation of electricity, primarily in Pennsylvania and Montana | ||||||||||||||||||||||||
U.K. Regulated | Kentucky Regulated Segment | Pennsylvania Regulated Segment | Supply Segment |
Ownership or Lease Interest in MW (a) | |||||||||||
PPL Energy | |||||||||||
Primary Fuel | PPL | Supply | LKE | LG&E | KU | ||||||
Regulated | |||||||||||
Coal (c) | 5,940 | 5,940 | 2,656 | 3,284 | |||||||
Natural Gas/Oil (b) | 2,098 | 2,098 | 644 | 1,454 | |||||||
Hydro | 78 | 78 | 54 | 24 | |||||||
Total Regulated | 8,116 | 8,116 | 3,354 | 4,762 | |||||||
Competitive | |||||||||||
Coal (b) (c) | 4,146 | 4,146 | |||||||||
Natural Gas/Oil | 3,316 | 3,316 | |||||||||
Nuclear (c) | 2,275 | 2,275 | |||||||||
Hydro (d) | 807 | 807 | |||||||||
Other (e) | 70 | 70 | |||||||||
Total Competitive | 10,614 | 10,614 | |||||||||
Total | 18,730 | 10,614 | 8,116 | 3,354 | 4,762 |
(a) | The capacity of generation units is based on a number of factors, including the operating experience and physical conditions of the units, and may be revised periodically to reflect changed circumstances. See "Item 2. Properties" in the 2012 Form 10-K for additional information on ownership percentages. |
(b) | Includes leasehold interests. See Note 11 to the Financial Statements in the 2012 Form 10-K for additional information. |
(c) | Includes units that are jointly owned or subject to a power purchase agreement. Each owner is entitled to its proportionate share of the unit's total output and funds its proportionate share of fuel and other operating costs. See Notes 14 and 15 to the Financial Statements in the 2012 Form 10-K for additional information. |
(d) | In September 2013, PPL Montana executed a definitive agreement to sell its 11 hydroelectric facilities, which have a combined generating capacity of 633 MW, to NorthWestern for $900 million in cash, subject to certain adjustments. The sale is not expected to close before the second half of 2014 and is subject to closing conditions, including receipt of regulatory approvals by the FERC and Montana Public Service Commission and certain third party consents. See Note 8 to the Financial Statements for additional information. |
(e) | Includes facilities owned, controlled or for which PPL Energy Supply has the rights to the output. |
Three Months | Nine Months | ||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
Kentucky Regulated | $ | 72 | $ | 78 | $ | 148 | $ | 184 | |||||
U.K. Regulated (a) | 202 | 138 | 563 | 231 | |||||||||
Pennsylvania Regulated | 33 | 28 | 95 | 116 | |||||||||
Supply | 48 | 200 | 361 | 510 | |||||||||
Net Income Attributable to PPL Shareowners | $ | 355 | $ | 444 | $ | 1,167 | $ | 1,041 | |||||
EPS - basic | $ | 0.61 | $ | 0.76 | $ | 2.00 | $ | 1.92 | |||||
EPS - diluted | $ | 0.61 | $ | 0.76 | $ | 2.00 | $ | 1.91 |
Three Months | Nine Months | ||||||||||||||||||
2013 | 2012 | % Change | 2013 | 2012 | % Change | ||||||||||||||
U.K. Regulated | $ | 183 | $ | 202 | (9) | $ | 741 | $ | 563 | 32 | |||||||||
Kentucky Regulated | 93 | 72 | 29 | 227 | 148 | 53 | |||||||||||||
Pennsylvania Regulated | 51 | 33 | 55 | 160 | 95 | 68 | |||||||||||||
Supply | 91 | 48 | 90 | 122 | 361 | (66) | |||||||||||||
Corporate and Other (a) | (8) | n/a | (22) | n/a | |||||||||||||||
Net Income Attributable to | |||||||||||||||||||
PPL Shareowners | $ | 410 | $ | 355 | 15 | $ | 1,228 | $ | 1,167 | 5 | |||||||||
EPS - basic | $ | 0.65 | $ | 0.61 | 7 | $ | 2.03 | $ | 2.00 | 2 | |||||||||
EPS - diluted (b) | $ | 0.62 | $ | 0.61 | 2 | $ | 1.90 | $ | 2.00 | (5) |
(a) |
(b) | See "Equity Units" below for information on |
Three Months | Nine Months | ||||||||||||||||||
2013 | 2012 | Change | 2013 | 2012 | Change | ||||||||||||||
U.K. Regulated | $ | (16) | $ | 41 | $ | (57) | $ | 78 | $ | 39 | $ | 39 | |||||||
Kentucky Regulated | 2 | (1) | 3 | ||||||||||||||||
Supply | (6) | (105) | 99 | (49) | 3 | (52) | |||||||||||||
Total PPL | $ | (22) | $ | (64) | $ | 42 | $ | 31 | $ | 41 | $ | (10) |
· | Increase at the U.K. Regulated segment for the three-month period primarily due to higher electricity delivery prices and lower U.K. income taxes, partially offset by an accrual for over-recovery of current-year revenues, lower sales volume due to weather and higher operation and maintenance expense. Increase at the U.K. Regulated segment for the nine-month period primarily due to higher electricity delivery prices, increased sales volume due to weather, and lower U.K. |
· | Increases at the Kentucky Regulated segment for both periods primarily due to higher base rates that became effective January 1, 2013 and returns from additional environmental capital investments. The three-month period was also partially offset by lower sales volume due to weather. |
· | Increases at the Pennsylvania Regulated segment for both periods primarily due to higher electricity base rates that became effective January 1, 2013 and higher transmission margins from additional capital investments. The increase for the nine-month period was also due to lower operation and maintenance expense, partially offset by higher depreciation. |
· | Decrease at the Supply segment for the three-month period primarily due to lower baseload energy prices, lower baseload generation, higher operation and maintenance expense and higher income taxes. The decline in segment earnings was partially offset by higher capacity prices. Decrease at the Supply segment for the nine-month period primarily due to lower baseload energy prices, higher fuel costs, higher income taxes and higher depreciation. The decline in segment earnings was partially offset by higher capacity prices, higher intermediate and peaking margins and higher baseload generation. The higher income taxes for both periods resulted primarily from a non-cash adjustment of deferred tax assets. |
Average Utilization Factors (a) | ||||||
2009 - 2011 | 2012 | |||||
Pennsylvania coal plants | 89% | 70% | ||||
Montana coal plants | 87% | 59% | ||||
Combined-cycle gas plants | 70% | 96% |
Three Months | Nine Months | ||||||||||||||||
2013 | 2012 | % Change | 2013 | 2012 | % Change | ||||||||||||
Utility revenues | $ | 534 | $ | 518 | 3 | $ | 1,731 | $ | 1,613 | 7 | |||||||
Energy-related businesses | 9 | 10 | (10) | 32 | 34 | (6) | |||||||||||
Total operating revenues | 543 | 528 | 3 | 1,763 | 1,647 | 7 | |||||||||||
Other operation and maintenance | 111 | 101 | 10 | 340 | 326 | 4 | |||||||||||
Depreciation | 73 | 69 | 6 | 219 | 206 | 6 | |||||||||||
Taxes, other than income | 36 | 36 | 109 | 108 | 1 | ||||||||||||
Energy-related businesses | 7 | 8 | (13) | 21 | 24 | (13) | |||||||||||
Total operating expenses | 227 | 214 | 6 | 689 | 664 | 4 | |||||||||||
Other Income (Expense) - net | (117) | (50) | 134 | 7 | (39) | (118) | |||||||||||
Interest Expense | 102 | 106 | (4) | 313 | 314 | ||||||||||||
Income Taxes | (86) | (44) | 95 | 27 | 67 | (60) | |||||||||||
Net Income Attributable to PPL Shareowners | $ | 183 | $ | 202 | (9) | $ | 741 | $ | 563 | 32 |
Three Months | Nine Months | ||||||
U.K. | |||||||
Utility revenues | $ | 44 | $ | 187 | |||
Other operation and maintenance | (9) | (19) | |||||
Depreciation | (6) | (17) | |||||
Interest expense | 3 | (4) | |||||
Other | 2 | 2 | |||||
Income taxes | 8 | (13) | |||||
U.S. | |||||||
Interest expense and other | 1 | ||||||
Income taxes | (5) | 4 |
Three Months | Nine Months | ||||||
Foreign currency exchange rates, after-tax (a) | 1 | (2) | |||||
Special items, after-tax | (57) | 39 | |||||
Total | $ | (19) | $ | 178 |
(a) | Includes the effect of realized gains (losses) on foreign currency economic hedges. |
· | Higher utility revenues for the three-month period primarily due to $74 million from the April 1, 2013 price increase, partially offset by a $22 million accrual for over-recovered revenue and $10 million of lower volume due primarily to weather. |
Higher utility revenues for the nine-month period primarily due to $187 million from the April 1, 2013 and 2012 price increases and $18 million of higher volume due primarily to weather, partially offset by a $22 million accrual for over-recovered revenue. |
· | Higher other operation and maintenance for the three- and nine-month periods primarily due to higher network maintenance expense. |
· | Higher depreciation for the three- and nine-month periods primarily due to PP&E additions. |
· | Lower income taxes for the three-month period due to $16 million from U.K. tax rate changes, partially offset by higher pre-tax income, which increased income taxes by $8 million. |
· | Higher income taxes for the three-month period due to an $8 million increase to income tax expense attributable to a revision in the expected taxable amount of cash repatriation in 2013. |
Lower income taxes for the nine-month period due to a $19 million 2013 adjustment primarily related to an IRS ruling regarding 2010 U.K. earnings and profits calculations and $11 million of lower income taxes on intercompany loans, partially offset by a $23 million increase to income tax expense attributable to a revision in the expected taxable amount of cash repatriation in 2013. |
Income Statement | Three Months | Nine Months | |||||||||||||
Line Item | 2013 | 2012 | 2013 | 2012 | |||||||||||
Other Income | |||||||||||||||
Foreign currency-related economic hedges, net of tax of $44, $18, $5, $17 (a) | (Expense)-net | $ | (82) | $ | (30) | $ | (8) | $ | (28) | ||||||
WPD Midlands acquisition-related adjustments: | |||||||||||||||
Other Operation | |||||||||||||||
Separation benefits, net of tax of $1, $1, $1, $3 | and Maintenance | (2) | (1) | (4) | (9) | ||||||||||
Other Operation | |||||||||||||||
Other acquisition-related adjustments, net of tax of $0, $0, $0, ($1) | and Maintenance | (2) | (2) | 2 | |||||||||||
Other: | |||||||||||||||
Windfall Profits Tax litigation (b) | Income Taxes | 43 | |||||||||||||
Change in WPD line loss accrual, net of tax of $5, $0, $10, $0 (c) | Utility | (16) | (35) | ||||||||||||
Change in U.K. tax rate (d) | Income Taxes | 84 | 74 | 84 | 74 | ||||||||||
Total | $ | (16) | $ | 41 | $ | 78 | $ | 39 |
(a) | Represents unrealized gains (losses) on contracts that economically hedge anticipated earnings denominated in GBP. |
(b) | In May 2013, the U.S. Supreme Court reversed the December 2011 ruling, by the U.S. Court of Appeals for the Third Circuit, on the creditability for income tax purposes of the U.K. Windfall Profits Tax. As a result of the U.S. Supreme Court ruling, PPL recorded an income tax benefit during the nine-month 2013 period. See Note 5 to the Financial Statements for additional information. |
(c) | WPD Midlands recorded adjustments to its line loss accrual based on information provided by Ofgem regarding the calculation of line loss incentive/penalty for all network operators related to DPCR4, a price control period that ended prior to PPL's acquisition of WPD Midlands. See Note 6 to the Financial Statements for additional information. |
(d) | The U.K. Finance Act of 2013, enacted in July 2013, reduced the U.K.'s statutory income tax rate from 23% to 21%, effective April 1, 2014 and from 21% to 20%, effective April 1, 2015. The U.K. Finance Act of 2012, enacted in July 2012, reduced the U.K. statutory income tax rate from 25% to 24% retroactive to April 1, 2012 and from 24% to 23% effective April 1, 2013. As a result, PPL reduced its net deferred tax liability and recognized a deferred tax benefit in the three and nine-month periods of 2013 and 2012. |
Ownership or Lease Interest in MW (a) | |||||||||||
PPL Energy | |||||||||||
Primary Fuel | PPL | Supply | LKE | LG&E | KU | ||||||
Regulated | |||||||||||
Coal (c) | 5,940 | 5,940 | 2,656 | 3,284 | |||||||
Natural Gas/Oil (b) | 2,098 | 2,098 | 644 | 1,454 | |||||||
Hydro | 78 | 78 | 54 | 24 | |||||||
Total Regulated | 8,116 | 8,116 | 3,354 | 4,762 | |||||||
Competitive | |||||||||||
Coal (b) (c) | 4,146 | 4,146 | |||||||||
Natural Gas/Oil | 3,316 | 3,316 | |||||||||
Nuclear (c) | 2,275 | 2,275 | |||||||||
Hydro (d) | 807 | 807 | |||||||||
Other (e) | 70 | 70 | |||||||||
Total Competitive | 10,614 | 10,614 | |||||||||
Total | 18,730 | 10,614 | 8,116 | 3,354 | 4,762 |
(a) | The capacity of generation units is based on a number of factors, including the operating experience and physical conditions of the units, and may be revised periodically to reflect changed circumstances. See "Item 2. Properties" in the 2012 Form 10-K for additional information on ownership percentages. |
(b) | Includes leasehold interests. See Note 11 to the Financial Statements in the 2012 Form 10-K for additional information. |
(c) | Includes units that are jointly owned or subject to a power purchase agreement. Each owner is entitled to its proportionate share of the unit's total output and funds its proportionate share of fuel and other operating costs. See Notes 14 and 15 to the Financial Statements in the 2012 Form 10-K for additional information. |
(d) | In September 2013, PPL Montana executed a definitive agreement to sell its 11 hydroelectric facilities, which have a combined generating capacity of 633 MW, to NorthWestern for $900 million in cash, subject to certain adjustments. The sale is not expected to close before the second half of 2014 and is subject to closing conditions, including receipt of regulatory approvals by the FERC and Montana Public Service Commission and certain third party consents. See Note 8 to the Financial Statements for additional information. |
(e) | Includes facilities owned, controlled or for which PPL Energy Supply has the rights to the output. |
Three Months | Nine Months | ||||||||||||||||||
2013 | 2012 | % Change | 2013 | 2012 | % Change | ||||||||||||||
U.K. Regulated | $ | 183 | $ | 202 | (9) | $ | 741 | $ | 563 | 32 | |||||||||
Kentucky Regulated | 93 | 72 | 29 | 227 | 148 | 53 | |||||||||||||
Pennsylvania Regulated | 51 | 33 | 55 | 160 | 95 | 68 | |||||||||||||
Supply | 91 | 48 | 90 | 122 | 361 | (66) | |||||||||||||
Corporate and Other (a) | (8) | n/a | (22) | n/a | |||||||||||||||
Net Income Attributable to | |||||||||||||||||||
PPL Shareowners | $ | 410 | $ | 355 | 15 | $ | 1,228 | $ | 1,167 | 5 | |||||||||
EPS - basic | $ | 0.65 | $ | 0.61 | 7 | $ | 2.03 | $ | 2.00 | 2 | |||||||||
EPS - diluted (b) | $ | 0.62 | $ | 0.61 | 2 | $ | 1.90 | $ | 2.00 | (5) |
(a) | 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. For 2012, there were no significant amounts in this category. |
(b) | See "Equity Units" below for information on the Equity Units' impact on the calculation of 2013 diluted EPS. |
Three Months | Nine Months | ||||||||||||||||||
2013 | 2012 | Change | 2013 | 2012 | Change | ||||||||||||||
U.K. Regulated | $ | (16) | $ | 41 | $ | (57) | $ | 78 | $ | 39 | $ | 39 | |||||||
Kentucky Regulated | 2 | (1) | 3 | ||||||||||||||||
Supply | (6) | (105) | 99 | (49) | 3 | (52) | |||||||||||||
Total PPL | $ | (22) | $ | (64) | $ | 42 | $ | 31 | $ | 41 | $ | (10) |
· | Increase at the U.K. Regulated segment for the three-month period primarily due to higher electricity delivery prices and lower U.K. income taxes, partially offset by an accrual for over-recovery of current-year revenues, lower sales volume due to weather and higher operation and maintenance expense. Increase at the U.K. Regulated segment for the nine-month period primarily due to higher electricity delivery prices, increased sales volume due to weather, and lower U.K. |
· | Increases at the Kentucky Regulated segment |
· | Increases at the |
· | Decrease at the Supply segment for the three-month period primarily due to lower baseload energy prices, lower baseload generation, higher operation and maintenance expense and higher income taxes. The decline in segment earnings was partially offset by higher capacity prices. Decrease at the Supply segment for the nine-month period primarily due to lower baseload energy prices, higher fuel costs, higher income taxes and higher depreciation. The decline in segment earnings was partially offset by higher capacity prices, higher intermediate and peaking margins and higher baseload generation. The higher income taxes for both periods
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The Registrants cannot predict the future impact that economic and market conditions and changes in regulatory requirements may have on their financial condition or results of operations. (PPL) Ofgem Review of Line Loss Calculation Ofgem is currently consulting on the methodology to be used by all network operators to calculate the final line loss incentive/penalty for the DPCR4. Based on information received from Ofgem in 2013, WPD currently estimates the potential loss exposure for this matter to be in the range of $93 million to $226 million as of September 30, 2013. During the three and nine months ended September 30, 2013, WPD recorded $21 million and $45 million of increases to the liability with reductions to "Utility" revenue on the Statement of Income. PPL cannot predict the outcome of this matter. See Note 6 to the Financial Statements for additional information. RIIO-ED1 In October 2010, Ofgem announced changes to the regulatory framework that will be effective for the U.K. electricity distribution sector, including WPD, beginning April 2015. The framework, known as RIIO (Revenues = Incentives + Innovation + Outputs), is intended to encourage investment in regulated infrastructure. The next electricity distribution price control review is referred to as RIIO-ED1. Key components of the RIIO-ED1 are: an extension of the price review period to eight years, increased emphasis on outputs and incentives, enhanced stakeholder engagement including network customers, a stronger incentive framework to encourage more efficient investment and innovation, and continued use of a single weighted average cost of capital. Ofgem has also indicated that the depreciation of the RAV, for RAV additions after April 1, 2015, will change from 20 years to 45 years, but that it will consider transition arrangements. As previously reported, on July 1, 2013, WPD filed its business plans with Ofgem for the RIIO-ED1 period and gave a webcast presentation to highlight the contents of the plans as well as provide potential earnings ranges of the U.K. Regulated segment for the first two years of the RIIO-ED1 period. The ranges provided are subject to certain assumptions including foreign currency exchange rates, interest rates, inflation rates and WPD being "fast-tracked" through the price control review process and therefore earning the fast-track bonus revenue. These assumptions and other future events affecting the potential earnings ranges are subject to significant uncertainties. Although management believes that the business plans submitted by WPD meet the criteria to be fast-tracked, management cannot predict the outcome of the price control review process or the future financial effect on WPD's businesses of the RIIO-ED1 regulatory framework. Ofgem has notified WPD that it intends to announce preliminary fast-track determinations on November 22, 2013 with a final determination to be announced in February 2014. See "Item 1. Business - Background - U.K. Regulated Segment - Revenue and Regulation" in the 2012 Form 10-K for additional information. Equity Forward Agreements In the second quarter of 2013, PPL settled forward sale agreements for 10.5 million shares of PPL common stock by issuing 8.4 million shares and cash settling the remaining 2.1 million shares. PPL received net cash proceeds of $201 million, which was used to repay short-term debt obligations and for other general corporate purposes. See Note 7 to the Financial Statements for additional information. Prior to settlement, incremental shares were included within the calculation of diluted EPS using the treasury stock method. See Note 4 to the Financial Statements for the impact on the calculation of diluted EPS. Equity Units During 2013, several events occurred related to the components of the 2010 Equity Units. During the first quarter of 2013, financing plans were finalized to remarket the Junior Subordinated Notes component of the 2010 Equity Units and in the second quarter, PPL Capital Funding completed the remarketing of the Junior Subordinated Notes and simultaneously exchanged the remarketed notes for three tranches of Senior Notes. The transaction resulted in a $10 million loss on extinguishment of the Junior Subordinated Notes. Additionally, in July 2013, PPL issued 40 million shares of common stock at $28.73 per share to settle the 2010 Purchase Contracts. PPL received net cash proceeds of $1.150 billion, which will be used to repay short-term and long-term debt obligations and for other general corporate purposes. See Note 7 to the Financial Statements for additional information. The If-Converted Method of calculating diluted EPS was applied to the Equity Units prior to settlement beginning in the first quarter of 2013. This resulted in $7 million and $37 million of interest charges (after-tax) being added back to income 105 available to PPL common shareowners, and 32 million and 59 million weighted-average incremental shares of PPL common stock being treated as outstanding for purposes of the diluted EPS calculation for the three and nine months ended September 30, 2013. See Note 4 to the Financial Statements for the impact on the calculation of diluted EPS. Tax Litigation In May 2013, the U.S. Supreme Court reversed the December 2011 ruling of the U. S. Court of Appeals for the Third Circuit, on the creditability for U.S. income tax purposes of the U.K. Windfall Profits Tax paid by a U.K. subsidiary of PPL. As a result of this decision, PPL recorded an income tax benefit of $44 million for the nine months ended September 30, 2013. See Note 5 to the Financial Statements for additional information. U.K. Tax Rate Change In July 2013, the U.K. Finance Act 2013 was enacted, which reduces the U.K.'s statutory income tax rate from 23% to 21%, effective April 1, 2014 and from 21% to 20%, effective April 1, 2015. As a result of these changes, PPL reduced its net deferred tax liabilities and recognized a deferred tax benefit of $93 million in the third quarter of 2013. Pennsylvania Net Operating Loss Valuation Allowance PPL assesses the realizability of its deferred tax assets for Pennsylvania's net operating loss carryforwards based on, among other things, projections of future taxable income for the net operating loss carryforward periods. In the third quarter of 2013, PPL determined that its projected future taxable income would likely decrease, resulting in an increase to the valuation allowance related to Pennsylvania net operating loss carryforwards. As a result, PPL recorded a $38 million increase in state deferred income tax expense. FERC Audit Proceedings (All Registrants except PPL Energy Supply) In November 2011, the FERC commenced an audit of PPL and its subsidiaries, including an audit of the FERC transmission formula rate mechanisms at PPL Electric, LG&E and KU beginning in April 2012. The audit identified several matters related to separate aspects of formula rate mechanics at PPL Electric, LG&E and KU. As previously reported, among the audit matters related to PPL Electric was the determination that PPL Electric had not obtained a waiver of the equity method accounting requirement with respect to its wholly owned subsidiary, PPL Receivables Corporation, which was formed in 2004 to purchase eligible accounts receivable and unbilled revenue from PPL Electric to collateralize commercial paper issuances and reduce borrowing costs. PPL, PPL Electric, LKE, LG&E and KU currently believe that the total amount of refunds, if any, that may be required with respect to the formula rate and all other issues identified during the course of the audit will not be material to any of these Registrants. PPL, PPL Electric, LKE, LG&E and KU, however, cannot predict the ultimate outcome of these matters. (PPL and PPL Energy Supply) Montana Transactions In September 2013, PPL Montana executed a definitive agreement to sell 633MW of hydroelectric facilities to NorthWestern for $900 million in cash, subject to certain adjustments. The sale is not expected to close before the second half of 2014. The sale is subject to closing conditions, including receipt of regulatory approvals by the FERC and Montana Public Service Commission and certain third-party consents. In a related transaction, in September 2013, PPL Montana negotiated and entered into an agreement to pay $271 million to terminate a sale-leaseback arrangement and reacquire its interests in the Colstrip coal-fired facilities. This transaction is anticipated to occur by the end of the first quarter of 2014, subject to approval by the FERC. At lease termination, in addition to recording a charge for the cash payment, a non-cash charge is expected to be recorded related to the existing lease-related assets on PPL's and PPL Energy Supply's Balance Sheets. The book value of these assets was approximately $450 million at September 30, 2013. These lease-related assets will be written-off and the reacquired Colstrip assets will be recorded at fair value as of the acquisition date. The total loss is currently estimated at between $310 million and $430 million, after-tax, which is dependent on the fair value assigned to the reacquired Colstrip assets. See Note 8 to the Financial Statements for additional information. Susquehanna Turbine Blade Inspection In the spring of 2013, PPL Susquehanna made modifications to address the causes of turbine blade cracking at the PPL Susquehanna nuclear plant that was first identified in 2011. The modifications were made during the Unit 2 refueling outage and an additional planned outage for Unit 1. In September 2013, data from the extensive vibration monitoring equipment installed on the turbine blades identified cracks in a small number of the blades on both units. Unit 2 completed a blade 106 inspection and replacement outage on September 23, 2013. Based upon the evaluation of the conditions on Unit 1 and the latest inspection of previously removed blades, PPL Susquehanna will continue to operate Unit 1 and monitor the blades through the vibration monitoring equipment. The financial impact of the Unit 2 outage is not material. PPL Susquehanna continues to work with the turbine manufacturer to identify and resolve the issues causing the blade cracking. Colstrip Unit 4 Outage (PPL Energy Supply) On July 1, 2013, Colstrip Unit 4 automatically shut down as a result of damage that occurred in the unit's generator. The repair to Unit 4 is estimated to cost between $30 million and $40 million and is expected to take at least six months to complete. Property damage insurance for Unit 4 is subject to a $2.5 million self-insured retention. PPL Montana operates Unit 4 pursuant to an agreement with the owners and, pursuant to a separate agreement with NorthWestern, is entitled to receive 15% of Unit 4's electricity output and is responsible for 15% of the capital, operating, maintenance and repair costs associated with Unit 4. PPL Montana's estimated pre-tax loss of earnings attributable to the Unit 4 outage is between $5 million and $10 million. (PPL and PPL Electric) Distribution System Improvement Charge Act 11 authorizes 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, the use of a DSIC. Such alternative ratemaking procedures and mechanisms provide opportunity for accelerated cost-recovery. In May 2013, the PUC approved PPL Electric's proposed DSIC, with an initial rate effective July 1, 2013, subject to refund after hearings. See Note 6 to the Financial Statements for additional information. Rate Case Proceedings (PPL and PPL Electric) In December 2012, the PUC approved a total distribution revenue increase of about $71 million for PPL Electric, using a 10.4% return on equity. The approved rates became effective January 1, 2013. (PPL and Kentucky Registrants) In December 2012, the KPSC approved a rate case settlement agreement providing for increases in annual base electricity rates of $34 million for LG&E and $51 million for KU and an increase in annual base gas rates of $15 million for LG&E using a 10.25% return on equity. The approved rates became effective January 1, 2013. (KU) In September 2013, KU filed an application with the FERC to adjust the formula rate under which KU provides wholesale requirements power sales to 12 municipal customers. Among other changes, the application requests an amended formula whereby KU would recover costs based on forward-looking estimates with a subsequent true-up, replacing the current formula which uses prior-year cost amounts. KU's application proposed an authorized 10.7% return on equity. Subject to regulatory approval, the new formula rate may become effective during mid-2014. In April 2013, KU filed an application with the VSCC to increase annual Virginia base electricity revenue by approximately $7 million, representing an increase of 9.6%. KU proposed an authorized 10.8% return on equity. In October 2013, KU filed a stipulation reached with VSCC staff proposing a revenue increase of $4.7 million, representing an increase of 6.9%. If approved by the VSCC, new base rates would go into effect on December 1, 2013. (PPL) The discussion for PPL provides a review of results by reportable segment and concludes with a "Statement of Income Analysis," which includes explanations of Kentucky Gross Margins, Pennsylvania Gross Delivery Margins and Unregulated Gross Energy Margins. The "Statement of Income Analysis" also addresses significant changes in principal line items on PPL's Statements of Income, comparing the three and nine months ended September 30, 2013 with the same periods in 2012. "Segment Earnings and Statement of Income Analysis" is presented separately for PPL. 107 Tables analyzing changes in amounts between periods within "Segment Earnings" and "Statement of Income Analysis" are presented on a constant U.K. foreign currency exchange rate basis, where applicable, in order to isolate the impact of the change in the exchange rate on the item being explained. Results computed on a constant U.K. foreign currency exchange rate basis are calculated by translating current year results at the prior year weighted-average U.K. foreign currency exchange rate. (Subsidiary Registrants) The discussion for each of PPL Energy Supply, PPL Electric, LKE, LG&E and KU provides a summary of earnings and concludes with a "Statement of Income Analysis," which includes a reconciliation of a non-GAAP financial measure to "Operating Income" and significant changes in principal line items on the Statements of Income, comparing the three and nine months ended September 30, 2013 with the same periods in 2012. "Earnings and Statement of Income Analysis" is presented separately for PPL Energy Supply, PPL Electric, LKE, LG&E and KU. (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. Segment Earnings U.K. Regulated Segment The U.K. Regulated segment consists of PPL Global which primarily includes WPD's regulated electricity distribution operations and certain costs, such as U.S. income taxes, administrative costs and allocated financing costs. The U.K. Regulated segment represents 60% of Net Income Attributable to PPL Shareowners for nine months ended September 30, 2013 and 32% of PPL's assets at September 30, 2013. Net Income Attributable to PPL Shareowners for the periods ended September 30 includes the following results:
The changes in the components of the U.K. Regulated segment's results between these periods were due to the factors set forth below, which reflect reclassifications for certain items that management considers special. See below for additional detail of these special items.
108
U.K.
Higher utility revenues for the nine-month period primarily due to $187 million from the April 1, |
· | Higher other operation and
|