v3.26.1
Financing Activities
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Financing Activities
7. 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, LG&E and KU are attributable to PPL. The amounts listed in the borrowed column below are recorded as "Short-term debt" on the Balance Sheets. The following credit facilities were in place at:
June 30, 2026December 31, 2025
Expiration
Date		CapacityBorrowedLetters of
Credit
and
Commercial
Paper
Issued (a)		Unused
Capacity		BorrowedLetters of
Credit
and
Commercial
Paper
Issued (a)
PPL
PPL Capital Funding (b)
Syndicated Credit Facility (c)Dec. 2030$1,500 $— $— $1,500 $— $456 
Bilateral Credit FacilityFeb. 2027100 — — 100 — — 
Bilateral Credit FacilityFeb. 2027100 — 44 56 — 17 
Total PPL Capital Funding Credit Facilities$1,700 $— $44 $1,656 $— $473 
June 30, 2026December 31, 2025
Expiration
Date		CapacityBorrowedLetters of
Credit
and
Commercial
Paper
Issued (a)		Unused
Capacity		BorrowedLetters of
Credit
and
Commercial
Paper
Issued (a)
PPL Electric
Syndicated Credit FacilityDec. 2030$750 $— $6 $744 $— $6 
Total PPL Electric Credit Facilities$750 $— $6 $744 $— $6 
LG&E
Syndicated Credit FacilityDec. 2030$600 $— $— $600 $— $— 
Total LG&E Credit Facilities$600 $— $— $600 $— $— 
KU
Syndicated Credit FacilityDec. 2030$600 $— $65 $535 $— $— 
Total KU Credit Facilities$600 $— $65 $535 $— $— 

(a)Commercial paper issued reflects the undiscounted face value of the issuance.
(b)PPL Capital Funding's obligations are fully and unconditionally guaranteed by PPL.
(c)At June 30, 2026 and December 31, 2025 the facility included a $400 million borrowing sublimit for RIE and a $1.1 billion sublimit for PPL Capital Funding. RIE's borrowing sublimit is adjustable, at the borrowers' option, from $0 to $600 million, with the remaining balance available under the facility allocated to PPL Capital Funding. At June 30, 2026, PPL Capital Funding and RIE had no commercial paper outstanding. At December 31, 2025, PPL Capital Funding had $355 million of commercial paper outstanding and RIE had $101 million of commercial paper outstanding. RIE's obligations under the facility are not guaranteed by PPL.

(PPL)

In January 2026, PPL Capital Funding amended its existing $1.50 billion syndicated credit facility to extend the termination date of certain commitments from December 6, 2029 to December 6, 2030.

(PPL and PPL Electric)

In January 2026, PPL Electric amended its existing $750 million syndicated credit facility to extend the termination of certain commitments from December 6, 2029 to December 6, 2030.

(PPL and LG&E)

In January 2026, LG&E amended its existing $600 million syndicated credit facility to extend the termination date of certain commitments from December 6, 2029 to December 6, 2030.

(PPL and KU)

In January 2026, KU amended its existing $600 million syndicated credit facility to extend the termination date of certain commitments from December 6, 2029 to December 6, 2030.

(All Registrants)

The Registrants 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:
June 30, 2026December 31, 2025
Weighted -
Average
Interest Rate		CapacityCommercial
Paper
Issuances (a)		Unused
Capacity		Weighted -
Average
Interest Rate		Commercial
Paper
Issuances (a)
PPL Capital Funding (b)(c)$1,600 $— $1,600 4.16%$355 
RIE (c)400 — 400 4.21%101 
PPL Electric
750 — 750 — 
LG&E600 — 600 — 
KU3.98%600 65 535 — 
Total$3,950 $65 $3,885 $456 

(a)Commercial paper issued reflects the undiscounted face value of the issuance.
(b)PPL Capital Funding's obligations are fully and unconditionally guaranteed by PPL.
(c)Issuances under the PPL Capital Funding and RIE commercial paper programs are supported by the PPL Capital Funding syndicated credit facility. At June 30, 2026 and December 31, 2025, the borrowing sublimits were $400 million for RIE and $1.1 billion for PPL Capital Funding. PPL Capital Funding's commercial paper program is also backed by a separate bilateral credit facility for $100 million.

(PPL Electric, LG&E, and KU)

See Note 11 for discussion of intercompany borrowings.

Long-term Debt and Equity Securities

(PPL)

In May 2026, RIE issued $400 million principal amount of 6.00% Senior Notes due 2056. RIE received proceeds of approximately $396 million, net of discounts and underwriting fees, to be used to repay short-term debt and for other general corporate purposes.

(PPL and PPL Electric)

In May 2026, PPL Electric issued $500 million principal amount of 5.75% First Mortgage Bonds due 2056. PPL Electric received proceeds of approximately $491 million, net of discounts and underwriting fees, to be used to repay short-term debt and for other general corporate purposes.

(PPL and LG&E)

In July 2026, the Louisville/Jefferson County Metro Government of Kentucky remarketed $40 million principal amount of Pollution Control Revenue Bonds, 2005 Series A due 2035 previously issued on behalf of LG&E. The bonds were remarketed at a long-term rate and will bear interest at 3.80% through their maturity date of February 1, 2035.

(PPL)

Corporate Units

In February 2026, PPL issued 23 million equity units (the Equity Units), initially in the form of corporate units (the Corporate Units), for total gross proceeds of $1.15 billion. The issuance included the underwriters' full exercise of their option to purchase up to an additional 3 million Corporate Units to cover over‑allotments. PPL received proceeds of approximately $1.13 billion, net of underwriting discounts and commissions. Proceeds were used to repay short-term debt and for general corporate purposes.

Each Corporate Unit has a stated amount of $50 and is comprised of (i) a purchase contract (each, a Purchase Contract) obligating the holder to purchase no later than February 15, 2029 (the Purchase Contract Settlement Date), a certain number of shares of PPL's common stock (Common Stock), for $50 in cash and (ii) a 1/40 undivided beneficial ownership interest in (a) $1,000 principal amount of PPL Capital Funding's 4.02% Remarketable Senior Notes due 2034 and (b) $1,000 principal amount of PPL Capital Funding's 4.02% Remarketable Senior Notes due 2039 (together the RSNs). The Corporate Units carry an annual distribution rate of 7.00% of the stated amount, which is comprised of a quarterly interest payment on the RSNs of 4.02% per year and a quarterly contract adjustment payment of 2.98% per year.
The holder's ownership interests in the RSNs are pledged to PPL to secure the holder's obligations under the related Purchase Contract. PPL expects that the RSNs will be remarketed prior to the Purchase Contract Settlement Date. Following a successful remarketing, the interest rates on the RSNs will reset to market rates at that time, interest will be payable on a semi-annual basis and PPL Capital Funding will cease to have the ability to redeem the RSNs at its option. If the remarketing is unsuccessful, the holders will have the right to put the RSNs to PPL Capital Funding at par.

The RSNs are unsecured and unsubordinated obligations of PPL Capital Funding and are fully and unconditionally guaranteed by PPL.

The number of shares to be delivered under the Purchase Contracts will be determined based on the applicable market value of PPL's Common Stock, which is the average of the volume-weighted average price on each trading day during the 20 consecutive scheduled trading day period ending on, and including, the third scheduled trading day prior to the Purchase Contract Settlement Date, subject to anti‑dilution adjustments, as follows:

•If the applicable market value is greater than or equal to $46.58, the holder will receive 1.0735 shares (a minimum of 24.7 million shares).
•If the applicable market value is greater than $37.26 but less than $46.58, the holder will receive a number of shares equal to $50 divided by the applicable market value.
•If the applicable market value is less than or equal to $37.26, the holder will receive 1.3419 shares (a maximum of 30.9 million shares).

Each Purchase Contract requires PPL to make quarterly contract adjustment payments at a rate of 2.98% per year on the $50 stated amount of the Equity Unit. PPL has the option to defer these contract adjustment payments until the Purchase Contract Settlement Date. Deferred contract adjustment payments will accrue additional contract adjustment payments at the rate of 7.00% per year until paid. Until any deferred contract adjustment payments have been paid, PPL may not (1) declare or pay any dividends or distributions on, or redeem, purchase or acquire or make a liquidation payment with respect to, any of its capital stock, (2) make any payment of principal of, or interest or premium, if any, on, or repay, repurchase or redeem any of our debt securities that rank on parity with, or junior to, the contract adjustment payments, or (3) make any guarantee payments under any guarantee by PPL of securities of any of our subsidiaries if the guarantee ranks on parity with, or junior to, the contract adjustment payments.

The proceeds from the sale of the Equity Units were allocated to the RSNs and the Purchase Contracts, including the obligation to make contract adjustment payments, based on the underlying fair value of each instrument at the time of issuance. As a result, the RSNs were recorded at $1.15 billion, which approximated fair value, as long-term debt. At the time of issuance, the present value of the contract adjustment payments of $95 million was recorded to other long-term liabilities, representing the fair value of the obligation to make contract adjustment payments, with an offsetting reduction to capital in excess of par value for the issuance of the Purchase Contracts. The contract adjustment payment liability is being accreted through interest expense over the three-year term of the Purchase Contracts. The initial valuation of the contract adjustment payments is considered a non-cash transaction that is excluded from the Statement of Cash Flows. To settle the Purchase Contracts, PPL will be required to issue a maximum of approximately 30.9 million shares of Common Stock under the standard provisions of the Purchase Contracts and 42.9 million shares of common stock that could be issued under make-whole provisions in the event of early settlement upon a fundamental change. See Note 4 for EPS considerations related to the Purchase Contracts.

ATM Program

In February 2025, PPL entered into an equity distribution agreement, pursuant to which PPL may sell, from time to time, up to an aggregate of $2 billion of its common stock through an ATM Program, which may utilize an optional forward sales component. Each forward contract under the agreement must be settled within 24 months. The compensation paid to the selling agents by PPL may be up to 2% of the gross offering proceeds of the shares. At June 30, 2026, PPL had outstanding forward contracts to sell approximately 27.4 million shares of its common stock at a blended initial forward price of approximately $35.90 per share. The forward sale price may be adjusted based on changes in daily interest rates, for certain stock loan fees as determined by a third-party agent, and will be subject to predetermined reductions based on expected dividends. Each outstanding forward contract must be settled on or before dates ranging from December 30, 2026 to August 11, 2027. PPL may elect, at its discretion, to physically settle, net share settle or net cash settle the forward contracts. At June 30, 2026, PPL could have settled the outstanding forward sale contracts with physical delivery of approximately 27.4 million shares of common stock for proceeds of approximately $979 million. The forward contracts under the ATM program are classified as equity transactions.
Dividends

In May 2026, PPL declared a quarterly cash dividend on its common stock, payable July 1, 2026, of 28.50 cents per share (equivalent to $1.14 per annum).