XML 70 R13.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Revenue from Contracts with Customers | 12 Months Ended
--- | ---
Dec. 31, 2023
Revenue from Contract with Customer [Abstract] |
Revenue from Contract with Customer | (All Registrants) The following is a description of the principal activities from which the Registrants and PPL’s segments generate their revenues. (PPL and PPL Electric) Pennsylvania Regulated Segment Revenue The Pennsylvania Regulated segment generates substantially all of its revenues from contracts with customers from PPL Electric’s tariff-based distribution and transmission of electricity. Distribution Revenue PPL Electric provides distribution services to residential, commercial, industrial, municipal and governmental end users of energy. PPL Electric satisfies its performance obligation to its distribution customers and revenue is recognized over time as electricity is delivered and simultaneously consumed by the customer. The amount of revenue recognized is the volume of electricity delivered during the period multiplied by the price per tariff, plus a monthly fixed charge. This method of recognition fairly presents PPL Electric's transfer of electric service to the customer as the calculation is based on volumes delivered, and the price per tariff and the monthly fixed charge are set by the PAPUC. Customers are typically billed monthly and outstanding amounts are normally due within 21 days of the date of the bill. Distribution customers are "at will" customers of PPL Electric with no term contract and no minimum purchase commitment. Performance obligations are limited to the service requested and received to date. Accordingly, there is no unsatisfied performance obligation associated with PPL Electric’s retail account contracts. Certain customers have the option to obtain electricity from other suppliers where PPL Electric facilitates the delivery. In those circumstances, revenue is only recognized for providing delivery of the commodity to the customer. Transmission Revenue PPL Electric generates transmission revenues from a FERC-approved PJM Open Access Transmission Tariff. An annual revenue requirement for PPL Electric to provide transmission services is calculated using a formula-based rate. This revenue requirement is converted into a daily rate (dollars per day). PPL Electric satisfies its performance obligation to provide transmission services and revenue is recognized over time as transmission services are provided and consumed. This method of recognition fairly presents PPL Electric's transfer of transmission services as the daily rate is set by a FERC approved formula-based rate. PJM remits payment on a weekly basis. PPL Electric's agreement to provide transmission services contains no minimum purchase commitment. The performance obligation is limited to the service requested and received to date. Accordingly, PPL Electric has no unsatisfied performance obligations. (PPL) Rhode Island Regulated Segment Revenues The Rhode Island Regulated segment generates substantially all of its revenues from contracts with customers from RIE’s regulated tariff-based transmission and distribution of electricity and regulated tariff-based distribution of natural gas. Distribution Revenue Distribution revenues are primarily from the sale of electricity, natural gas, and related services to retail customers. Distribution sales are regulated by the RIPUC, which is responsible for approving the rates and other terms of services as part of the rate making process. Natural gas and electric distribution revenues are derived from the regulated sale and distribution of electricity and natural gas to residential, commercial, and industrial customers within RIE’s service territory under the tariff rates. The performance obligation related to distribution sales is to provide electricity and natural gas to customers on demand. The performance obligation is satisfied over time because the customer simultaneously receives and consumes the electricity or natural gas as services are provided. RIE records revenues related to the distribution sales based upon the approved tariff rate and the volume delivered to the customers, which corresponds with the amount RIE has the right to invoice. Distribution revenue also includes estimated unbilled amounts, which represent the estimated amounts due from retail customers as a result of customer's bills rendered throughout the month, rather than bills being rendered at the end of the month. Unbilled revenues are determined based on estimated unbilled sales volumes and then applying tariff rates to those volumes. Any difference between estimated and actual revenues is adjusted the following month when the previous unbilled estimate is reversed and actual billings occur. This method of recognition fairly presents RIE's transfer of electricity and natural gas to the customer as the amount recognized is based on actual and estimated volumes delivered and the tariff rate per unit of energy and any applicable fixed charges or regulatory mechanisms as approved by the respective regulatory body. Distribution customers are "at will" customers of RIE with no term contract and no minimum purchase commitment. Performance obligations are limited to the service requested and received to date. Accordingly, there is no unsatisfied performance obligation associated with RIE's retail account contracts. Certain customers have the option to obtain electricity or natural gas from other suppliers where RIE facilitates the delivery. In those circumstances, revenue is only recognized for providing delivery of the commodity to the customer. Transmission Revenue RIE’s transmission services are regulated by the FERC and coordinated with ISO – New England (ISO-NE). As of January 1, 2023, RIE is a transmission operator. These revenues arise under tariff/rate agreements and are collected primarily from RIE’s distribution customers. The revenue is recognized over time as transmission services are provided and consumed. This method of recognition fairly presents RIE’s transfer of transmission services as the daily rate is set by a FERC-approved formula-based rate. RIE's agreement to provide transmission services contains no minimum purchase commitment. The performance obligation is limited to the service requested and received to date. Accordingly, RIE has no unsatisfied performance obligations. (PPL, LG&E and KU) Kentucky Regulated Segment Revenue The Kentucky Regulated Segment generates substantially all of its revenues from contracts with customers from LG&E's and KU's regulated tariff-based sales of electricity and LG&E's regulated tariff-based sales of natural gas. LG&E and KU are engaged in the generation, transmission, distribution and sale of electricity in Kentucky and, in KU's case, Virginia. LG&E also engages in the distribution and sale of natural gas in Kentucky. Revenue from these activities is generated from tariffs approved by applicable regulatory authorities including the FERC, KPSC and VSCC. LG&E and KU satisfy their performance obligations upon LG&E's and KU's delivery of electricity and LG&E's delivery of natural gas to customers. This revenue is recognized over time as the customer simultaneously receives and consumes the benefits provided by LG&E and KU. The amount of revenue recognized is the billed volume of electricity or natural gas delivered multiplied by a tariff rate per-unit of energy, plus any applicable fixed charges or additional regulatory mechanisms. Customers are billed monthly and outstanding amounts are typically due within 22 days of the date of the bill. Additionally, unbilled revenues are recognized as a result of customers' bills rendered throughout the month, rather than bills being rendered at the end of the month. Unbilled revenues for a month are calculated by multiplying an estimate of unbilled kWh or Mcf delivered but not yet billed by the estimated average cents per kWh or Mcf. Any difference between estimated and actual revenues is adjusted the following month when the previous unbilled estimate is reversed and actual billings occur. This method of recognition fairly presents LG&E's and KU's transfer of electricity and LG&E's transfer of natural gas to the customer as the amount recognized is based on actual and estimated volumes delivered and the tariff rate per-unit of energy and any applicable fixed charges or regulatory mechanisms as set by the respective regulatory body. LG&E's and KU's customers generally have no minimum purchase commitment. Performance obligations are limited to the service requested and received to date. Accordingly, there is no unsatisfied performance obligation associated with these customers. (All Registrants) The following table reconciles "Operating Revenues" included in each Registrant's Statement of Income with revenues generated from contracts with customers for the years ended December 31:
| 2023
| PPL |  | PPL Electric |  | LG&E |  | KU
Operating Revenues (a) | $ | 8,312 |  |  | $ | 3,008 |  |  | $ | 1,613 |  |  | $ | 1,884 |
Revenues derived from: |  |  |  |  |  |  |
Alternative revenue programs (b) | 1 |  |  | 5 |  |  | (1) |  |  | (5) |
Other (c) | (23) |  |  | (15) |  |  | (4) |  |  | (4) |
Revenues from Contracts with Customers | $ | 8,290 |  |  | $ | 2,998 |  |  | $ | 1,608 |  |  | $ | 1,875 |
| 2022
| PPL |  | PPL Electric |  | LG&E |  | KU
Operating Revenues (a) | $ | 7,902 |  |  | $ | 3,030 |  |  | $ | 1,798 |  |  | $ | 2,074 |
Revenues derived from: |  |  |  |  |  |  |
Alternative revenue programs (b) | (92) |  |  | (56) |  |  | 9 |  |  | 5 |
Other (c) | (24) |  |  | (14) |  |  | (6) |  |  | (4) |
Revenues from Contracts with Customers | $ | 7,786 |  |  | $ | 2,960 |  |  | $ | 1,801 |  |  | $ | 2,075 |
| 2021
| PPL |  | PPL Electric |  | LG&E |  | KU
Operating Revenues (a) | $ | 5,783 |  |  | $ | 2,402 |  |  | $ | 1,569 |  |  | $ | 1,826 |
Revenues derived from: |  |  |  |  |  |  |
Alternative revenue programs (b) | 77 |  |  | 83 |  |  | (3) |  |  | (3) |
Other (c) | (22) |  |  | (3) |  |  | (8) |  |  | (9) |
Revenues from Contracts with Customers | $ | 5,838 |  |  | $ | 2,482 |  |  | $ | 1,558 |  |  | $ | 1,814 |
(a)PPL includes $1,851 million and $1,038 million for the twelve months ended December 31, 2023 and 2022 of revenues from external customers reported by the Rhode Island Regulated segment. PPL Electric represents revenues from external customers reported by the Pennsylvania Regulated segment and LG&E and KU, net of intercompany power sales and transmission revenues, represent revenues from external customers reported by the Kentucky Regulated segment. See Note 2 for additional information. (b)This line item shows the over/under collection of rate mechanisms deemed alternative revenue programs with over-collections of revenue shown as positive amounts in the table above and under collections as negative amounts. For PPL Electric, revenue in 2022 includes $74 million related to the amortization of the regulatory liability primarily recorded in 2021 for a reduction in the transmission formula rate return on equity that is reflected in rates in 2022. Revenue in 2021 was reduced by $78 million for a reduction in the transmission formula rate return on equity. (c)Represents additional revenues outside the scope of revenues from contracts with customers such as leases and other miscellaneous revenues. The following table shows revenues from contracts with customers disaggregated by customer class for the years ended December 31:
| Residential |  | Commercial |  | Industrial |  | Other (a) |  | Wholesale - municipality |  | Wholesale - other (b) |  | Transmission |  | Revenues from Contracts with Customers
PPL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
PA Regulated | $ | 1,649 |  |  | $ | 444 |  |  | $ | 55 |  |  | $ | 54 |  |  | $ | — |  |  | $ | — |  |  | $ | 796 |  |  | $ | 2,998 |
RI Regulated | 640 |  |  | 228 |  |  | 20 |  |  | 793 |  |  | — |  |  | — |  |  | 170 |  |  | 1,851 |
KY Regulated | 1,458 |  |  | 1,001 |  |  | 637 |  |  | 272 |  |  | 22 |  |  | 50 |  |  | — |  |  | 3,440 |
Corp and Other | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 1 |
Total PPL | $ | 3,747 |  |  | $ | 1,673 |  |  | $ | 712 |  |  | $ | 1,120 |  |  | $ | 22 |  |  | $ | 50 |  |  | $ | 966 |  |  | $ | 8,290 |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
PA Regulated | $ | 1,647 |  |  | $ | 491 |  |  | $ | 85 |  |  | $ | 54 |  |  | $ | — |  |  | $ | — |  |  | $ | 683 |  |  | $ | 2,960 |
RI Regulated | 299 |  |  | 101 |  |  | 9 |  |  | 478 |  |  | — |  |  | — |  |  | 101 |  |  | 988 |
KY Regulated | 1,637 |  |  | 1,068 |  |  | 662 |  |  | 323 |  |  | 28 |  |  | 97 |  |  | — |  |  | 3,815 |
Corp and Other | — |  |  | — |  |  | — |  |  | 23 |  |  | — |  |  | — |  |  | — |  |  | 23 |
Total PPL | $ | 3,583 |  |  | $ | 1,660 |  |  | $ | 756 |  |  | $ | 878 |  |  | $ | 28 |  |  | $ | 97 |  |  | $ | 784 |  |  | $ | 7,786 |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
PA Regulated | $ | 1,299 |  |  | $ | 350 |  |  | $ | 53 |  |  | $ | 50 |  |  | $ | — |  |  | $ | — |  |  | $ | 730 |  |  | $ | 2,482 |
RI Regulated | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
KY Regulated | 1,416 |  |  | 928 |  |  | 586 |  |  | 305 |  |  | 24 |  |  | 66 |  |  | — |  |  | 3,325 |
Corp and Other | — |  |  | — |  |  | — |  |  | 31 |  |  | — |  |  | — |  |  | — |  |  | 31 |
Total PPL | $ | 2,715 |  |  | $ | 1,278 |  |  | $ | 639 |  |  | $ | 386 |  |  | $ | 24 |  |  | $ | 66 |  |  | $ | 730 |  |  | $ | 5,838 |
PPL Electric |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2023 | $ | 1,649 |  |  | $ | 444 |  |  | $ | 55 |  |  | $ | 54 |  |  | $ | — |  |  | $ | — |  |  | $ | 796 |  |  | $ | 2,998 |
2022 | $ | 1,647 |  |  | $ | 491 |  |  | $ | 85 |  |  | $ | 54 |  |  | $ | — |  |  | $ | — |  |  | $ | 683 |  |  | $ | 2,960 |
2021 | $ | 1,299 |  |  | $ | 350 |  |  | $ | 53 |  |  | $ | 50 |  |  | $ | — |  |  | $ | — |  |  | $ | 730 |  |  | $ | 2,482 |
LG&E |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2023 | $ | 751 |  |  | $ | 517 |  |  | $ | 189 |  |  | $ | 104 |  |  | $ | — |  |  | $ | 47 |  |  | $ | — |  |  | $ | 1,608 |
2022 | $ | 835 |  |  | $ | 551 |  |  | $ | 199 |  |  | $ | 141 |  |  | $ | — |  |  | $ | 75 |  |  | $ | — |  |  | $ | 1,801 |
2021 | $ | 711 |  |  | $ | 473 |  |  | $ | 180 |  |  | $ | 145 |  |  | $ | — |  |  | $ | 49 |  |  | $ | — |  |  | $ | 1,558 |
KU |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2023 | $ | 707 |  |  | $ | 484 |  |  | $ | 448 |  |  | $ | 168 |  |  | $ | 22 |  |  | $ | 46 |  |  | $ | — |  |  | $ | 1,875 |
2022 | $ | 802 |  |  | $ | 517 |  |  | $ | 463 |  |  | $ | 182 |  |  | $ | 28 |  |  | $ | 83 |  |  | $ | — |  |  | $ | 2,075 |
2021 | $ | 705 |  |  | $ | 455 |  |  | $ | 406 |  |  | $ | 160 |  |  | $ | 24 |  |  | $ | 64 |  |  | $ | — |  |  | $ | 1,814 |
(a)Primarily includes revenues from pole attachments, street lighting, other public authorities and other non-core businesses. The Rhode Island Regulated segment primarily includes open access tariff revenues, which are calculated on combined customer classes. (b)Includes wholesale power and transmission revenues. LG&E and KU amounts include intercompany power sales and transmission revenues, which are eliminated upon consolidation at PPL. As discussed in Note 2, PPL segments its business by geographic location. Revenues from external customers for each segment/geographic location are reconciled to revenues from contracts with customers in the footnotes to the tables above. PPL Electric's revenues from contracts with customers are further disaggregated by distribution and transmission as indicated in the above tables. Contract receivables from customers are primarily included in "Accounts receivable - Customer" and "Unbilled revenues" on the Balance Sheets. The following table shows the accounts receivable and unbilled revenues balances that were impaired for the year ended December 31:
| 2023 |  | 2022 |  | 2021
PPL(a) | $ | 79 |  |  | $ | 70 |  |  | $ | 22 |
PPL Electric | 47 |  |  | 21 |  |  | 10 |
LG&E | 4 |  |  | 6 |  |  | 4 |
KU | 2 |  |  | 6 |  |  | 8 |
(a)Includes $23 million for the twelve months ended December 31, 2022 related to the commitment to forgive customer arrearages for low-income and protected residential customers at RIE. See Note 9 for additional information. The following table shows the balances and certain activity of contract liabilities resulting from contracts with customers:
| PPL |  | PPL Electric |  | LG&E |  | KU
Contract liabilities as of December 31, 2023 | $ | 43 |  |  | $ | 29 |  |  | $ | 6 |  |  | $ | 7 |
Contract liabilities as of December 31, 2022 | 34 |  |  | 23 |  |  | 5 |  |  | 6 |
Revenue recognized during the year ended December 31, 2023 that was included in the contract liability balance at December 31, 2022 | 21 |  |  | 10 |  |  | 5 |  |  | 6 |
Contract liabilities as of December 31, 2022 | $ | 34 |  |  | $ | 23 |  |  | $ | 5 |  |  | $ | 6 |
Contract liabilities as of December 31, 2021 | 42 |  |  | 25 |  |  | 6 |  |  | 6 |
Revenue recognized during the year ended December 31, 2022 that was included in the contract liability balance at December 31, 2021 | 25 |  |  | 12 |  |  | 6 |  |  | 6 |
Contract liabilities as of December 31, 2021 | $ | 42 |  |  | $ | 25 |  |  | $ | 6 |  |  | $ | 6 |
Contract liabilities as of December 31, 2020 | 40 |  |  | 23 |  |  | 5 |  |  | 6 |
Revenue recognized during the year ended December 31, 2021 that was included in the contract liability balance at December 31, 2020 | 24 |  |  | 11 |  |  | 5 |  |  | 6 |
Contract liabilities result from recording contractual billings in advance for customer attachments to the Registrants' infrastructure and payments received in excess of revenues earned to date. Advanced billings for customer attachments are recognized as revenue ratably over the billing period. Payments received in excess of revenues earned to date are recognized as revenue as services are delivered in subsequent periods.

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org//606/tableOfContent + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration