Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2025

Jun. 30, 2024

Derivative Instruments And Hedging Activities [Line Items]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table presents the fair value and the location of derivative instruments on the Balance Sheets:


	June 30, 2025								December 31, 2024
	Derivatives designated as hedging instruments				Derivatives not designated as hedging instruments				Derivatives designated as hedging instruments				Derivatives not designated as hedging instruments
	Assets		Liabilities		Assets		Liabilities		Assets		Liabilities		Assets		Liabilities
Current:
Price Risk Management
Assets/Liabilities (a):
Interest rate derivatives (b)	$	2	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Gas contracts	—		—		6		3		—		—		7		10




Total current	2		—		6		3		—		—		7		10
Noncurrent:
Price Risk Management
Assets/Liabilities (a):
Interest rate derivatives (b)	—		—		—		5		—		—		—		3
Gas contracts	—		—		4		5		—		—		2		3

Total noncurrent	—		—		4		10		—		—		2		6
Total derivatives	$	2	$	—	$	10	$	13	$	—	$	—	$	9	$	16

(a)Current portion is included in "Other current assets" and "Other current liabilities" and noncurrent portion is included in "Other noncurrent assets" and "Other deferred credits and noncurrent liabilities" on the Balance Sheets. Excludes accrued interest, if applicable.

(b)Excludes accrued interest, if applicable.

Derivative Instruments, Gain (Loss)

The following table presents the effect of cash flow hedge activity on the Statement of Income for the period ended June 30, 2025.

Location and Amount of Gain (Loss) Recognized in Income on Hedging Relationships

Three Months

Six Months

Interest Expense

Total income and expense line items presented in the income statement in which the effect of cash flow hedges are recorded

199

389

The effects of cash flow hedges:

Gain (Loss) on cash flow hedging relationships:

Interest rate derivatives:

Amount of gain (loss) reclassified from AOCI to income

(1)

(2)

The following table presents the effect of cash flow hedge activity on the Statement of Income for the period ended June 30, 2024.

Location and Amount of Gain (Loss) Recognized in Income on Hedging Relationships

Three Months

Six Months

Interest Expense

Total income and expense line items presented in the income statement in which the effect of cash flow hedges are recorded

182

361

The effects of cash flow hedges:

Gain (Loss) on cash flow hedging relationships:

Interest rate derivatives:

Amount of gain (loss) reclassified from AOCI to income

(1)

(2)

Derivative Positions Eligible for Offset with Related Cash Collateral

The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged.


	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
June 30, 2025
Derivatives
PPL	$	12	$	3	$	—	$	9	$	13	$	3	$	—	$	10
LG&E	—		—		—		—		5		—		—		5


	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
December 31, 2024
Derivatives
PPL	$	9	$	5	$	—	$	4	$	16	$	5	$	—	$	11
LG&E	—		—		—		—		3		—		—		3

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location

The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities for the period ended June 30, 2025.

Three Months

Six Months

Three Months

Six Months

Derivative
Relationships

Derivative Gain
(Loss) Recognized in
OCI

Location of Gain (Loss)
Recognized in Income
on Derivative

Gain (Loss)
Reclassified
from AOCI
into Income

Cash Flow Hedges:

Interest rate derivatives

Interest expense

(1)

(2)


Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income on Derivative	Three Months		Six Months
Gas contracts	Energy purchases	$	—	$	(5)

	Total	$	—	$	(5)


Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized as Regulatory Liabilities/Assets	Three Months		Six Months
Interest rate derivatives	Regulatory assets - noncurrent	$	(1)	$	(2)
Gas contracts	Regulatory liabilities - current	(12)		6
	Regulatory assets - noncurrent	(1)		—
	Total	$	(14)	$	4

The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities for the period ended June 30, 2024.

Three Months

Six Months

Three Months

Six Months

Derivative
Relationships

Derivative Gain
(Loss) Recognized in
OCI

Location of Gain (Loss)
Recognized in Income
on Derivative

Gain (Loss)
Reclassified
from AOCI
into Income

Cash Flow Hedges:

Interest rate derivatives

—

Interest expense

(1)

(2)


Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income on Derivative	Three Months		Six Months
Gas contracts	Energy purchases	$	(9)	$	(25)

	Total	$	(9)	$	(25)
Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized as Regulatory Liabilities/Assets	Three Months		Six Months
Interest rate derivatives	Regulatory assets - noncurrent	$	1	$	2
Gas contracts	Regulatory assets - current	11		33
	Regulatory assets - noncurrent	2		6
	Total	$	14	$	41

Louisville Gas And Electric Co [Member]

Derivative Instruments And Hedging Activities [Line Items]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table presents the fair value and the location on the Balance Sheets of derivatives not designated as hedging instruments.


	June 30, 2025				December 31, 2024
	Assets		Liabilities		Assets		Liabilities







Noncurrent:
Price Risk Management Assets/Liabilities:
Interest rate derivatives	$	—	$	5	$	—	$	3
Total noncurrent	—		5		—		3
Total derivatives	$	—	$	5	$	—	$	3

Derivative Instruments, Gain (Loss)

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the period ended June 30, 2025.

Location of Gain (Loss) Recognized in

Derivative Instruments

Income on Derivatives

Three Months

Six Months

Interest rate derivatives

Interest expense

—

Location of Gain (Loss) Recognized in

Derivative Instruments

Regulatory Assets

Three Months

Six Months

Interest rate derivatives

Regulatory assets - noncurrent

(1)

(2)

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the period ended June 30, 2024.

Location of Gain (Loss) Recognized in

Derivative Instruments

Income on Derivatives

Three Months

Six Months

Interest rate derivatives

Interest expense

—

Location of Gain (Loss) Recognized in

Derivative Instruments

Regulatory Assets

Three Months

Six Months

Interest rate derivatives

Regulatory assets - noncurrent

Derivative Positions Eligible for Offset with Related Cash Collateral

The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged.


	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
June 30, 2025
Derivatives
PPL	$	12	$	3	$	—	$	9	$	13	$	3	$	—	$	10
LG&E	—		—		—		—		5		—		—		5


	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
December 31, 2024
Derivatives
PPL	$	9	$	5	$	—	$	4	$	16	$	5	$	—	$	11
LG&E	—		—		—		—		3		—		—		3