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Financing Activities | 12 Months Ended
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Dec. 31, 2020
Debt Disclosure [Abstract] |
Financing Activities | Credit Arrangements and Short-term Debt (All Registrants) The Registrants maintain credit facilities to enhance liquidity, provide credit support and provide a backstop to commercial paper programs. For reporting purposes, on a consolidated basis, the credit facilities and commercial paper programs of PPL Electric, LKE, LG&E and KU also apply to PPL and the credit facilities and commercial paper programs of LG&E and KU also apply to LKE. The amounts listed in the borrowed column below are recorded as "Short-term debt" on the Balance Sheets except for borrowings under PPL Capital Funding's term loan agreement due March 2022, which are reflected in "Long-term debt" on the Balance Sheets. The following credit facilities were in place at:
| December 31, 2020 |  | December 31, 2019
| Expiration Date |  | Capacity |  | Borrowed |  | Letters of Credit and Commercial Paper Issued |  | Unused Capacity |  | Borrowed |  | Letters of Credit and Commercial Paper Issued
PPL |  |  |  |  |  |  |  |  |  |  |  |  |
U.K. |  |  |  |  |  |  |  |  |  |  |  |  |
WPD plc |  |  |  |  |  |  |  |  |  |  |  |  |
Syndicated Credit Facility (a) (b) (c) | Jan. 2023 |  | £ | 210 |  |  | £ | 187 |  |  | £ | — |  |  | £ | 23 |  |  | £ | 155 |  |  | £ | — |
WPD (South West) |  |  |  |  |  |  |  |  |  |  |  |  |
Syndicated Credit Facility (a) (b) (c) | May 2023 |  | 220 |  |  | 50 |  |  | — |  |  | 170 |  |  | 40 |  |  | — |
WPD (South Wales) |  |  |  |  |  |  |  |  |  |  |  |  |
Syndicated Credit Facility (a) (b) (c) | May 2023 |  | 125 |  |  | — |  |  | — |  |  | 125 |  |  | — |  |  | — |
WPD (East Midlands) |  |  |  |  |  |  |  |  |  |  |  |  |
Syndicated Credit Facility (a) (b) (c) | May 2023 |  | 250 |  |  | — |  |  | — |  |  | 250 |  |  | — |  |  | — |
WPD (West Midlands) |  |  |  |  |  |  |  |  |  |  |  |  |
Syndicated Credit Facility (a) (b) (c) | May 2023 |  | 250 |  |  | 74 |  |  | — |  |  | 176 |  |  | 48 |  |  | — |
Uncommitted Credit Facilities |  |  | 100 |  |  | 60 |  |  | 4 |  |  | 36 |  |  | — |  |  | 4 |
Total U.K. Credit Facilities (b) |  |  | £ | 1,155 |  |  | £ | 371 |  |  | £ | 4 |  |  | £ | 780 |  |  | £ | 243 |  |  | £ | 4 |
U.S. |  |  |  |  |  |  |  |  |  |  |  |  |
PPL Capital Funding |  |  |  |  |  |  |  |  |  |  |  |  |
Syndicated Credit Facility (c) (d) | Jan 2024 |  | 1,450 |  |  | — |  |  | 402 |  |  | 1,048 |  |  | — |  |  | 450 |
Term Loan Credit Facility (c) (d) | Mar 2021 |  | 200 |  |  | 200 |  |  | — |  |  | — |  |  | — |  |  | — |
Bilateral Credit Facility (c) (d) | Mar 2021 |  | 50 |  |  | — |  |  | — |  |  | 50 |  |  | — |  |  | — |
Bilateral Credit Facility (c) (d) | Mar 2021 |  | 50 |  |  | — |  |  | 15 |  |  | 35 |  |  | — |  |  | 15 |
Term Loan Credit Facility (c) (d) | Mar 2021 |  | 100 |  |  | 100 |  |  | — |  |  | — |  |  | — |  |  | — |
Term Loan Credit Facility (c) (d) | Mar 2022 |  | 100 |  |  | 100 |  |  | — |  |  | — |  |  | — |  |  | — |
Total PPL Capital Funding Credit Facilities |  |  | $ | 1,950 |  |  | $ | 400 |  |  | $ | 417 |  |  | $ | 1,133 |  |  | $ | — |  |  | $ | 465 |
PPL Electric |  |  |  |  |  |  |  |  |  |  |  |  |
Syndicated Credit Facility (c) (d) | Jan 2024 |  | $ | 650 |  |  | $ | — |  |  | $ | 1 |  |  | $ | 649 |  |  | $ | — |  |  | $ | 1 |
LG&E |  |  |  |  |  |  |  |  |  |  |  |  |
Syndicated Credit Facility (c) (d) | Jan 2024 |  | $ | 500 |  |  | $ | — |  |  | $ | 262 |  |  | $ | 238 |  |  | $ | — |  |  | $ | 238 |
Total LG&E Credit Facilities |  |  | $ | 500 |  |  | $ | — |  |  | $ | 262 |  |  | $ | 238 |  |  | $ | — |  |  | $ | 238 |
KU |  |  |  |  |  |  |  |  |  |  |  |  |
Syndicated Credit Facility (c) (d) | Jan 2024 |  | $ | 400 |  |  | $ | — |  |  | $ | 203 |  |  | $ | 197 |  |  | $ | — |  |  | $ | 150 |
Total KU Credit Facilities |  |  | $ | 400 |  |  | $ | — |  |  | $ | 203 |  |  | $ | 197 |  |  | $ | — |  |  | $ | 150 |
(a)The facilities contain financial covenants to maintain an interest coverage ratio of not less than 3.0 times consolidated earnings before income taxes, depreciation and amortization and total net debt not in excess of 85% of its RAV, calculated in accordance with the credit facility. (b)The WPD plc amounts borrowed at December 31, 2020 and 2019 included USD-denominated borrowings of $249 million and $200 million, which bore interest at weighted average rate of 0.95% and 2.52%. The WPD (South West) amounts borrowed at December 31, 2020 and 2019 were GBP-denominated borrowings, which equated to $67 million and $51 million and bore interest at 0.54% and 1.09%. The WPD (West Midlands) amounts borrowed at December 31, 2020 and 2019 were GBP-denominated borrowings, which equated to $99 million and $62 million and bore interest at 0.54% and 1.11%. The interest rates on the borrowings are equal to one-month USD LIBOR plus a margin. At December 31, 2020, the unused capacity under the U.K. credit facilities was approximately $1.0 billion. (c)Each company pays customary fees under its respective facility and borrowings generally bear interest at LIBOR-based rates plus an applicable margin. (d)The facilities contain a financial covenant requiring debt to total capitalization not to exceed 70% for PPL Capital Funding, PPL Electric, LG&E and KU, as calculated in accordance with the facilities and other customary covenants. Additionally, subject to certain conditions, PPL Capital Funding may request that the capacity of its bilateral credit facility expiring in March 2021 be increased by up to $30 million and PPL Capital Funding, PPL Electric, LG&E and KU may each request up to a $250 million increase in its syndicated credit facility's capacity. (PPL) In March 2020, PPL Capital Funding entered into a $200 million term loan credit facility expiring in March 2021 and borrowed the full principal amount under the facility at an initial interest rate of 1.96%. The applicable interest rate on borrowings fluctuates periodically and is based on LIBOR plus a spread. The proceeds were used to repay short-term debt and for general corporate purposes. In April 2020, PPL Capital Funding entered into a $100 million term loan credit facility expiring in March 2021 and borrowed the full principal amount under the facility at an initial interest rate of 1.73%. The applicable interest rate on borrowings fluctuates periodically and is based on LIBOR plus a spread. The proceeds were used to repay short-term debt and for general corporate purposes. PPL has guaranteed PPL Capital Funding's obligations under these credit agreements. (All Registrants) PPL, PPL Electric, LG&E and KU maintain commercial paper programs to provide an additional financing source to fund short-term liquidity needs. Commercial paper issuances, included in "Short-term debt" on the Balance Sheets, are supported by the respective Registrant's credit facilities. The following commercial paper programs were in place at:
| December 31, 2020 |  | December 31, 2019
| Weighted - Average Interest Rate |  | Capacity |  | Commercial Paper Issuances |  | Unused Capacity |  | Weighted - Average Interest Rate |  | Commercial Paper Issuances
PPL Capital Funding | 0.25% |  | $ | 1,500 |  |  | $ | 402 |  |  | $ | 1,098 |  |  | 2.13% |  | $ | 450 |
PPL Electric |  |  | 650 |  |  | — |  |  | 650 |  |  |  |  | — |
LG&E | 0.28% |  | 350 |  |  | 262 |  |  | 88 |  |  | 2.07% |  | 238 |
KU | 0.28% |  | 350 |  |  | 203 |  |  | 147 |  |  | 2.02% |  | 150 |
Total |  |  | $ | 2,850 |  |  | $ | 867 |  |  | $ | 1,983 |  |  |  |  | $ | 838 |
(PPL Electric, LKE, LG&E and KU) See Note 15 for a discussion of intercompany borrowings. Long-term Debt (All Registrants)
|  |  |  |  | December 31,
| Weighted-Average Rate (g) |  | Maturities (g) |  | 2020 |  | 2019
PPL |  |  |  |  |  |  |
U.S. |  |  |  |  |  |  |
Senior Unsecured Notes | 3.95 | % |  | 2021 - 2047 |  | $ | 4,850 |  |  | $ | 4,325 |
Senior Secured Notes/First Mortgage Bonds (a) (b) (c) | 3.81 | % |  | 2021 - 2050 |  | 8,955 |  |  | 8,705 |
Junior Subordinated Notes | 4.35 | % |  | 2067 - 2073 |  | 930 |  |  | 930 |
Term Loan Credit Facility | 0.85 | % |  | 2022 |  | 100 |  |  | — |
Total U.S. Long-term Debt |  |  |  |  | 14,835 |  |  | 13,960 |
U.K. |  |  |  |  |  |  |
Senior Unsecured Notes (d) | 4.69 | % |  | 2021 - 2040 |  | 7,197 |  |  | 6,874 |
Index-linked Senior Unsecured Notes (e) | 1.42 | % |  | 2028 - 2056 |  | 1,150 |  |  | 1,104 |
Term Loan Credit Facility | 1.46 | % |  | 2024 |  | 67 |  |  | 64 |
Total U.K. Long-term Debt (f) |  |  |  |  | 8,414 |  |  | 8,042 |
Total Long-term Debt Before Adjustments |  |  |  |  | 23,249 |  |  | 22,002 |
Fair market value adjustments |  |  |  |  | 8 |  |  | 12 |
Unamortized premium and (discount), net |  |  |  |  | 2 |  |  | 5 |
Unamortized debt issuance costs |  |  |  |  | (132) |  |  | (126) |
Total Long-term Debt |  |  |  |  | 23,127 |  |  | 21,893 |
Less current portion of Long-term Debt |  |  |  |  | 1,574 |  |  | 1,172 |
Total Long-term Debt, noncurrent |  |  |  |  | $ | 21,553 |  |  | $ | 20,721 |
PPL Electric |  |  |  |  |  |  |
Senior Secured Notes/First Mortgage Bonds (a) (b) | 3.79 | % |  | 2021 - 2049 |  | $ | 4,289 |  |  | $ | 4,039 |
Total Long-term Debt Before Adjustments |  |  |  |  | 4,289 |  |  | 4,039 |
Unamortized discount |  |  |  |  | (23) |  |  | (24) |
Unamortized debt issuance costs |  |  |  |  | (30) |  |  | (30) |
Total Long-term Debt |  |  |  |  | 4,236 |  |  | 3,985 |
Less current portion of Long-term Debt |  |  |  |  | 400 |  |  | — |
Total Long-term Debt, noncurrent |  |  |  |  | $ | 3,836 |  |  | $ | 3,985 |
LKE |  |  |  |  |  |  |
Senior Unsecured Notes | 4.38 | % |  | 2021 |  | $ | 250 |  |  | $ | 725 |
First Mortgage Bonds (a) (c) | 3.82 | % |  | 2023 - 2050 |  | 4,666 |  |  | 4,666 |
Long-term debt to affiliate | 3.89 | % |  | 2026 - 2030 |  | 1,200 |  |  | 650 |
Total Long-term Debt Before Adjustments |  |  |  |  | 6,116 |  |  | 6,041 |
Unamortized premium |  |  |  |  | 5 |  |  | 5 |
Unamortized discount |  |  |  |  | (13) |  |  | (12) |
Unamortized debt issuance costs |  |  |  |  | (34) |  |  | (32) |
Total Long-term Debt |  |  |  |  | 6,074 |  |  | 6,002 |
Less current portion of Long-term Debt |  |  |  |  | 674 |  |  | 975 |
Total Long-term Debt, noncurrent |  |  |  |  | $ | 5,400 |  |  | $ | 5,027 |
|  |  |  |  | December 31,
| Weighted-Average Rate (g) |  | Maturities (g) |  | 2020 |  | 2019
LG&E |  |  |  |  |  |  |
First Mortgage Bonds (a) (c) | 3.69 | % |  | 2025 - 2049 |  | $ | 2,024 |  |  | $ | 2,024 |
Total Long-term Debt Before Adjustments |  |  |  |  | 2,024 |  |  | 2,024 |
Unamortized discount |  |  |  |  | (4) |  |  | (4) |
Unamortized debt issuance costs |  |  |  |  | (13) |  |  | (15) |
Total Long-term Debt |  |  |  |  | 2,007 |  |  | 2,005 |
Less current portion of Long-term Debt |  |  |  |  | 292 |  |  | — |
Total Long-term Debt, noncurrent |  |  |  |  | $ | 1,715 |  |  | $ | 2,005 |
KU |  |  |  |  |  |  |
First Mortgage Bonds (a) (c) | 3.92 | % |  | 2023 - 2050 |  | $ | 2,642 |  |  | $ | 2,642 |
Total Long-term Debt Before Adjustments |  |  |  |  | 2,642 |  |  | 2,642 |
Unamortized premium |  |  |  |  | 5 |  |  | 5 |
Unamortized discount |  |  |  |  | (9) |  |  | (8) |
Unamortized debt issuance costs |  |  |  |  | (20) |  |  | (16) |
Total Long-term Debt |  |  |  |  | 2,618 |  |  | 2,623 |
Less current portion of Long-term Debt |  |  |  |  | 132 |  |  | 500 |
Total Long-term Debt, noncurrent |  |  |  |  | $ | 2,486 |  |  | $ | 2,123 |
(a)Includes PPL Electric's senior secured and first mortgage bonds that are secured by the lien of PPL Electric's 2001 Mortgage Indenture, which covers substantially all of PPL Electric’s tangible distribution properties and certain of its tangible transmission properties located in Pennsylvania, subject to certain exceptions and exclusions. The carrying value of PPL Electric's property, plant and equipment was approximately $10.8 billion and $10.1 billion at December 31, 2020 and 2019. Includes LG&E's first mortgage bonds that are secured by the lien of the LG&E 2010 Mortgage Indenture which creates a lien, subject to certain exceptions and exclusions, on substantially all of LG&E's real and tangible personal property located in Kentucky and used or to be used in connection with the generation, transmission and distribution of electricity and the storage and distribution of natural gas. The aggregate carrying value of the property subject to the lien was $5.5 billion and $5.3 billion at December 31, 2020 and 2019. Includes KU's first mortgage bonds that are secured by the lien of the KU 2010 Mortgage Indenture which creates a lien, subject to certain exceptions and exclusions, on substantially all of KU's real and tangible personal property located in Kentucky and used or to be used in connection with the generation, transmission and distribution of electricity. The aggregate carrying value of the property subject to the lien was $6.7 billion and $6.6 billion at December 31, 2020 and 2019. (b)Includes PPL Electric's series of senior secured bonds that secure its obligations to make payments with respect to each series of Pollution Control Bonds that were issued by the LCIDA and the PEDFA on behalf of PPL Electric. These senior secured bonds were issued in the same principal amount, contain payment and redemption provisions that correspond to and bear the same interest rate as such Pollution Control Bonds. These senior secured bonds were issued under PPL Electric's 2001 Mortgage Indenture and are secured as noted in (a) above. This amount includes $224 million of which PPL Electric is allowed to convert the interest rate mode on the bonds from time to time to a commercial paper rate, daily rate, weekly rate, or term rate of at least one year and $90 million which is subject to mandatory redemption upon determination that the interest rate on the bonds would be included in the holders' gross income for federal tax purposes. Includes $250 million of notes that may be called on or after September 28, 2021, at a redemption price equal to 100% of the principal amount of the bonds, plus accrued and unpaid interest to, but excluding, such redemption date. (c)Includes LG&E's and KU's series of first mortgage bonds that were issued to the respective trustees of tax-exempt revenue bonds to secure its respective obligations to make payments with respect to each series of bonds. The first mortgage bonds were issued in the same principal amounts, contain payment and redemption provisions that correspond to and bear the same interest rate as such tax-exempt revenue bonds. These first mortgage bonds were issued under the LG&E 2010 Mortgage Indenture and the KU 2010 Mortgage Indenture and are secured as noted in (a) above. The related tax-exempt revenue bonds were issued by various governmental entities, principally counties in Kentucky, on behalf of LG&E and KU. The related revenue bond documents allow LG&E and KU to convert the interest rate mode on the bonds from time to time to a commercial paper rate, daily rate, weekly rate, term rate of at least one year or, in some cases, an auction rate or a LIBOR index rate. At December 31, 2020, the aggregate tax-exempt revenue bonds issued on behalf of LG&E and KU that were in a term rate mode totaled $848 million for LKE, comprised of $539 million and $309 million for LG&E and KU respectively. At December 31, 2020, the aggregate tax-exempt revenue bonds issued on behalf of LG&E and KU that were in a variable rate mode totaled $33 million for LKE and KU respectively. These variable rate tax-exempt revenue bonds are subject to tender for purchase by LG&E and KU at the option of the holder and to mandatory tender for purchase by LG&E and KU upon the occurrence of certain events. (d)Includes £225 million ($300 million at December 31, 2020) of notes that may be redeemed, in total but not in part, on December 21, 2026, at the greater of the principal value or a value determined by reference to the gross redemption yield on a nominated U.K. Government bond. (e)The principal amount of the notes issued by WPD (South West), WPD (East Midlands) and WPD (South Wales) is adjusted based on changes in a specified index, as detailed in the terms of the related indentures. The adjustment to the principal amounts from 2019 to 2020 was an increase of approximately £10 million ($13 million) resulting from inflation. In addition, this amount includes £331 million ($441 million at December 31, 2020) of notes issued by WPD (South West) that may be redeemed, in total by series, on December 1, 2026, at the greater of the adjusted principal value and a make-whole value determined by reference to the gross real yield on a nominated U.K. government bond. (f)Includes £5.8 billion ($7.7 billion at December 31, 2020) of notes that may be put by the holders to the issuer for redemption if the long-term credit ratings assigned to the notes are withdrawn by any of the rating agencies (Moody's or S&P) or reduced to a non-investment grade rating of Ba1 or BB+ or lower in connection with a restructuring event, which includes the loss of, or a material adverse change to, the distribution licenses under which the issuer operates. (g)The table reflects principal maturities only, based on stated maturities or earlier put dates, and the weighted-average rates as of December 31, 2020. None of the outstanding debt securities noted above have sinking fund requirements. The aggregate maturities of long-term debt, based on stated maturities or earlier put dates, for the periods 2021 through 2025 and thereafter are as follows:
| PPL |  | PPL Electric |  | LKE |  | LG&E |  | KU
2021 | $ | 1,574 |  |  | $ | 400 |  |  | $ | 674 |  |  | $ | 292 |  |  | $ | 132 |
2022 | 1,374 |  |  | 474 |  |  | — |  |  | — |  |  | — |
2023 | 2,552 |  |  | 340 |  |  | 13 |  |  | — |  |  | 13 |
2024 | 950 |  |  | — |  |  | — |  |  | — |  |  | — |
2025 | 883 |  |  | — |  |  | 550 |  |  | 300 |  |  | 250 |
Thereafter | 15,916 |  |  | 3,075 |  |  | 4,879 |  |  | 1,432 |  |  | 2,247 |
Total | $ | 23,249 |  |  | $ | 4,289 |  |  | $ | 6,116 |  |  | $ | 2,024 |  |  | $ | 2,642 |
(PPL) In April 2020, PPL Capital Funding entered into a $100 million term loan credit facility expiring in March 2022 and borrowed the full principal amount under the facility at an initial interest rate of 1.72%. The applicable interest rate on borrowings fluctuates periodically and is based on LIBOR plus a spread. The proceeds were used to repay short-term debt and for general corporate purposes. In April 2020, PPL Capital Funding issued $1 billion of 4.125% Senior Notes due 2030. PPL Capital Funding received proceeds of $993 million, net of a discount and underwriting fees, which were used to repay short-term debt and for general corporate purposes. PPL has guaranteed PPL Capital Funding's obligations under the credit agreement and notes. In October 2020, WPD (South Wales) issued £250 million of 1.625% Senior Notes due 2035. WPD (South Wales) received proceeds of £247 million which equated to $319 million at the time of issuance, net of fees and a discount. The proceeds were used to repay the £150 million of 9.25% Notes due in November 2020 and for general corporate purposes. In January 2021, WPD issued a notice to redeem its $500 million of 5.375% Notes due May 2021 on March 1, 2021. (PPL and PPL Electric) In October 2020, PPL Electric issued $250 million of First Mortgage Bonds, Floating Rate Series due 2023. PPL Electric received proceeds of $249 million, net of discounts and underwriting fees, which were used to repay short-term debt and for general corporate purposes. In October 2020, the Pennsylvania Economic Development Financing Authority (PEDFA) remarketed $90 million of Pollution Control Revenue Refunding Bonds, Series 2008 (PPL Electric Utilities Corporation Project) due 2023, previously issued on behalf of PPL Electric. The bonds were remarketed at a long-term rate and will bear interest at 0.40% through their maturity date of October 1, 2023. (PPL and LKE) In August 2020, LKE redeemed $475 million of 3.75% senior notes due November 2020. (PPL, LKE and LG&E) In September 2020, the County of Trimble, Kentucky remarketed $125 million of Pollution Control Revenue Refunding Bonds, 2016 Series A due 2044 previously issued on behalf of LG&E. The bonds were remarketed at a long-term rate and will bear interest at 1.30% through their mandatory purchase date of September 1, 2027. In September 2020, the Louisville/Jefferson County Metro Government of Kentucky remarketed $23 million of Pollution Control Revenue Bonds, 2001 Series A due 2026 on behalf of LG&E. The bonds were remarketed at a long-term rate and will bear interest at 0.90% through their maturity date of September 1, 2026. (PPL, LKE and KU) In June 2020, KU issued $500 million of 3.30% First Mortgage Bonds due 2050. KU received proceeds of $493 million, net of discounts and underwriting fees, which were initially used to repay short-term debt and for other general corporate purpose, pending application to the redemption of KU's 3.25% First Mortgage Bonds in August 2020. In August 2020, KU redeemed $500 million of 3.25% First Mortgage Bonds due November 2020. See Note 15 for additional information related to intercompany borrowings. Legal Separateness (All Registrants) The subsidiaries of PPL are separate legal entities. PPL's subsidiaries are not liable for the debts of PPL. Accordingly, creditors of PPL may not satisfy their debts from the assets of PPL's subsidiaries absent a specific contractual undertaking by a subsidiary to pay PPL's creditors or as required by applicable law or regulation. Similarly, PPL is not liable for the debts of its subsidiaries, nor are its subsidiaries liable for the debts of one another. Accordingly, creditors of PPL's subsidiaries may not satisfy their debts from the assets of PPL or its other subsidiaries absent a specific contractual undertaking by PPL or its other subsidiaries to pay the creditors or as required by applicable law or regulation. Similarly, the subsidiaries of PPL Electric and LKE are each separate legal entities. These subsidiaries are not liable for the debts of PPL Electric and LKE. Accordingly, creditors of PPL Electric and LKE may not satisfy their debts from the assets of their subsidiaries absent a specific contractual undertaking by a subsidiary to pay the creditors or as required by applicable law or regulation. Similarly, PPL Electric and LKE are not liable for the debts of their subsidiaries, nor are their subsidiaries liable for the debts of one another. Accordingly, creditors of these subsidiaries may not satisfy their debts from the assets of PPL Electric and LKE (or their other subsidiaries) absent a specific contractual undertaking by that parent or other subsidiary to pay such creditors or as required by applicable law or regulation. (PPL) Equity Securities ATM Program In February 2018, PPL entered into an equity distribution agreement, pursuant to which PPL may sell, from time to time, up to an aggregate of $1.0 billion of its common stock through an at-the-market offering program, including a forward sales component. The compensation paid to the selling agents by PPL may be up to 2% of the gross offering proceeds of the shares. There were no issuances under the ATM program for the twelve months ended December 31, 2020 and 2019. The ATM program expires in February 2021. Distributions and Related Restrictions In November 2020, PPL declared its quarterly common stock dividend, payable January 4, 2021, at 41.50 cents per share (equivalent to $1.66 per annum). Future dividends, declared at the discretion of the Board of Directors, will depend upon future earnings, cash flows, financial and legal requirements and other factors. Neither PPL Capital Funding nor PPL may declare or pay any cash dividend or distribution on its capital stock during any period in which PPL Capital Funding defers interest payments on its 2007 Series A Junior Subordinated Notes due 2067 or 2013 Series B Junior Subordinated Notes due 2073. At December 31, 2020, no interest payments were deferred. WPD subsidiaries have financing arrangements that limit their ability to pay dividends. However, PPL does not, at this time, expect that any of such limitations would significantly impact PPL's ability to meet its cash obligations. (All Registrants) PPL relies on dividends or loans from its subsidiaries to fund PPL's dividends to its common shareholders. The net assets of certain PPL subsidiaries are subject to legal restrictions. LKE primarily relies on dividends from its subsidiaries to fund its distributions to PPL. LG&E, KU and PPL Electric are subject to Section 305(a) of the Federal Power Act, which makes it unlawful for a public utility to make or pay a dividend from any funds "properly included in capital account." The meaning of this limitation has never been clarified under the Federal Power Act. LG&E, KU and PPL Electric believe, however, that this statutory restriction, as applied to their circumstances, would not be construed or applied by the FERC to prohibit the payment from retained earnings of dividends that are not excessive and are for lawful and legitimate business purposes. In February 2012, LG&E and KU petitioned the FERC requesting authorization to pay dividends in the future based on retained earnings balances calculated without giving effect to the impact of purchase accounting adjustments for PPL's 2010 acquisition of LKE. In May 2012, the FERC approved the petitions with the further condition that each utility may not pay dividends if such payment would cause its adjusted equity ratio to fall below 30% of total capitalization. Accordingly, at December 31, 2020, net assets of $3 billion ($1.3 billion for LG&E and $1.7 billion for KU) were restricted for purposes of paying dividends to LKE, and net assets of $3.7 billion ($1.7 billion for LG&E and $2.0 billion for KU) were available for payment of dividends to LKE. LG&E and KU believe they will not be required to change their current dividend practices as a result of the foregoing requirement. In addition, under Virginia law, KU is prohibited from making loans to affiliates without the prior approval of the VSCC. There are no comparable statutes under Kentucky law applicable to LG&E and KU, or under Pennsylvania law applicable to PPL Electric. However, orders from the KPSC require LG&E and KU to obtain prior consent or approval before lending amounts to PPL.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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