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Leases | 12 Months Ended
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Dec. 31, 2021
Leases [Line Items] |
Lessor, Operating Leases [Text Block] | Lessor Transactions Third parties leased land from LG&E and KU at certain generation plants to produce refined coal used to generate electricity. The leases were operating leases and expired in 2021. Payments were allocated among lease and non-lease components as stated in the agreements. Lease payments were fixed or determined based on the amount of refined coal used in electricity generation at the facility. Payments received were primarily recorded as a regulatory liability and amortized in accordance with regulatory approvals. The following table shows the lease income recognized for the years ended December 31:
| PPL |  | LG&E |  | KU
Lease income recognized for the twelve months ended December 31, 2021 | $ | 11 |  |  | $ | 5 |  |  | $ | 5 |
Lease income recognized for the twelve months ended December 31, 2020 | 16 |  |  | 6 |  |  | 9 |
Lease income recognized for the twelve months ended December 31, 2019 | 14 |  |  | 5 |  |  | 8 |
Lessee, Operating Leases [Text Block] | (All Registrants) The Registrants determine whether contractual arrangements contain a lease by evaluating whether those arrangements either implicitly or explicitly identify an asset, whether the Registrants have the right to obtain substantially all of the economic benefits from use of the asset throughout the term of the arrangement, and whether the Registrants have the right to direct the use of the asset. Renewal options are included in the lease term if it is reasonably certain the Registrants will exercise those options. Periods for which the Registrants are reasonably certain not to exercise termination options are also included in the lease term. The Registrants have certain agreements with lease and non-lease components, such as office space leases, which are generally accounted for separately. LG&E and KU have entered into various operating leases primarily for office space, vehicles and railcars. The leases generally have fixed payments with expiration dates ranging from 2022 to 2033, some of which have options to extend the leases from one year to ten years and some have options to terminate at LG&E's and KU's discretion. PPL has also entered into various operating leases primarily for office and warehouse space. These leases generally have fixed payments with expiration dates ranging from 2024 through 2030. PPL Electric also has operating leases which do not have a significant impact to its operations. Short-term Leases Short-term leases are leases with a term that is 12 months or less and do not include a purchase option or option to extend the initial term of the lease to greater than 12 months that the Registrants are reasonably certain to exercise. The Registrants have made an accounting policy election to not recognize the right-of-use asset and the lease liability arising from leases classified as short-term. Expenses related to short-term leases are included in the tables below. Discount Rate The discount rate for a lease is the rate implicit in the lease unless that rate cannot be readily determined. In that case, the Registrants are required to use their incremental borrowing rate, which is the rate the Registrants would have to pay to borrow, on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. The Registrants receive secured borrowing rates from financial institutions based on their applicable credit profiles. The Registrants use the secured rate which corresponds with the term of the applicable lease. (PPL, LG&E and KU) Lessee Transactions The following table provides the components of lease cost for the Registrants' operating leases for the years ended December 31:
| 2021 |  | 2020 |  | 2019
PPL |  |  |  |  |
Lease cost: |  |  |  |  |
Operating lease cost | $ | 24 |  |  | $ | 28 |  |  | $ | 30 |
Short-term lease cost | 6 |  |  | 7 |  |  | 5 |
Total lease cost | $ | 30 |  |  | $ | 35 |  |  | $ | 35 |
LG&E |  |  |  |  |
Lease cost: |  |  |  |  |
Operating lease cost | $ | 6 |  |  | $ | 8 |  |  | $ | 12 |
Short-term lease cost | 1 |  |  | 1 |  |  | 1 |
Total lease cost | $ | 7 |  |  | $ | 9 |  |  | $ | 13 |
KU |  |  |  |  |
Lease cost: |  |  |  |  |
Operating lease cost | $ | 10 |  |  | $ | 13 |  |  | $ | 13 |
Short-term lease cost | 1 |  |  | 1 |  |  | 1 |
Total lease cost | $ | 11 |  |  | $ | 14 |  |  | $ | 14 |
The following table provides other key information related to the Registrants' operating leases at December 31:
| 2021 |  | 2020 |  | 2019
PPL |  |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows from operating leases | $ | 23 |  |  | $ | 24 |  |  | $ | 26 |
Right-of-use asset obtained in exchange for new operating lease liabilities | 12 |  |  | 17 |  |  | 45 |
LG&E |  |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows from operating leases | $ | 6 |  |  | $ | 7 |  |  | $ | 9 |
Right-of-use asset obtained in exchange for new operating lease liabilities | 4 |  |  | 6 |  |  | 5 |
KU |  |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows from operating leases | $ | 10 |  |  | $ | 11 |  |  | $ | 11 |
Right-of-use asset obtained in exchange for new operating lease liabilities | 7 |  |  | 9 |  |  | 11 |
The following table provides the total future minimum rental payments for operating leases, as well as a reconciliation of these undiscounted cash flows to the lease liabilities recognized on the Balance Sheets as of December 31, 2021.
| PPL |  | LG&E |  | KU
2022 | $ | 23 |  | $ | 6 |  | $ | 10
2023 | 20 |  | 5 |  | 8
2024 | 15 |  | 4 |  | 6
2025 | 8 |  | 3 |  | 4
2026 | 3 |  | 1 |  | 1
Thereafter | 5 |  | 1 |  | 1
Total | $ | 74 |  | $ | 20 |  | $ | 30
Weighted-average discount rate | 3.38% |  | 3.48% |  | 3.67%
Weighted-average remaining lease term (in years) | 4 |  | 4 |  | 4
Current lease liabilities (a) | $ | 22 |  | $ | 6 |  | $ | 9
Non-current lease liabilities (a) | 47 |  | 12 |  | 17
Right-of-use assets (b) | 62 |  | 15 |  | 24
(a) Current lease liabilities are included in "Other Current Liabilities" on the Balance Sheets. Non-current lease liabilities are included in "Other deferred credits and noncurrent liabilities" on the Balance Sheets. The difference between the total future minimum lease payments and the recorded lease liabilities is due to the impact of discounting. (b) Right-of-use assets are included in "Other noncurrent assets" on the Balance Sheets.

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