|
[X]
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 for the quarterly period ended September 30,
2009
|
|
OR
|
|
|
[
]
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 for the transition period from _________ to
___________
|
|
PPL
Corporation
|
Yes
X
|
No
|
||
|
PPL
Energy Supply, LLC
|
Yes
X
|
No
|
||
|
PPL
Electric Utilities Corporation
|
Yes
X
|
No
|
|
PPL
Corporation
|
Yes
X
|
No
|
||
|
PPL
Energy Supply, LLC
|
Yes
|
No
|
||
|
PPL
Electric Utilities Corporation
|
Yes
|
No
|
|
Large
accelerated filer
|
Accelerated
filer
|
Non-accelerated
filer
|
Smaller
reporting
company
|
||
|
PPL
Corporation
|
[ X
]
|
[ ]
|
[ ]
|
[ ]
|
|
|
PPL
Energy Supply, LLC
|
[ ]
|
[ ]
|
[ X
]
|
[ ]
|
|
|
PPL
Electric Utilities Corporation
|
[ ]
|
[ ]
|
[ X
]
|
[ ]
|
|
PPL
Corporation
|
Yes
|
No
X
|
||
|
PPL
Energy Supply, LLC
|
Yes
|
No
X
|
||
|
PPL
Electric Utilities Corporation
|
Yes
|
No
X
|
|
PPL
Corporation
|
Common
stock, $.01 par value, 377,068,461 shares outstanding at October 23,
2009.
|
|
|
PPL
Energy Supply, LLC
|
PPL
Corporation indirectly holds all of the membership interests in PPL Energy
Supply, LLC.
|
|
|
PPL
Electric Utilities Corporation
|
Common
stock, no par value, 66,368,056 shares outstanding and all held by PPL
Corporation at October 23, 2009.
|
|
Page
|
||||||
|
i
|
||||||
|
1
|
||||||
|
PART
I. FINANCIAL INFORMATION
|
||||||
|
Item
1. Financial Statements
|
||||||
|
PPL
Corporation and Subsidiaries
|
||||||
|
2
|
||||||
|
3
|
||||||
|
4
|
||||||
|
6
|
||||||
|
7
|
||||||
|
PPL
Energy Supply, LLC and Subsidiaries
|
||||||
|
8
|
||||||
|
9
|
||||||
|
10
|
||||||
|
12
|
||||||
|
13
|
||||||
|
PPL
Electric Utilities Corporation and Subsidiaries
|
||||||
|
14
|
||||||
|
15
|
||||||
|
16
|
||||||
|
18
|
||||||
|
Item
2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
|
||||||
|
68
|
||||||
|
83
|
||||||
|
96
|
||||||
|
101
|
||||||
|
101
|
||||||
|
101
|
||||||
|
PART
II. OTHER INFORMATION
|
||||||
|
102
|
||||||
|
102
|
||||||
|
102
|
||||||
|
103
|
||||||
|
COMPUTATION
OF RATIO OF EARNINGS TO FIXED CHARGES
|
||||||
|
104
|
||||||
|
105
|
||||||
|
106
|
||||||
|
CERTIFICATES
OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL
OFFICER
PURSUANT
TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
|
||||||
|
107
|
||||||
|
109
|
||||||
|
111
|
||||||
|
CERTIFICATES
OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL
OFFICER
PURSUANT
TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
|
||||||
|
113
|
||||||
|
115
|
||||||
|
117
|
||||||
|
·
|
fuel
supply availability;
|
|
·
|
weather
conditions affecting generation, customer energy use and operating
costs;
|
|
·
|
operation,
availability and operating costs of existing generation
facilities;
|
|
·
|
transmission
and distribution system conditions and operating costs;
|
|
·
|
collective
labor bargaining negotiations;
|
|
·
|
the
outcome of litigation against PPL and its subsidiaries;
|
|
·
|
potential
effects of threatened or actual terrorism, war or other hostilities, or
natural disasters;
|
|
·
|
the
commitments and liabilities of PPL and its
subsidiaries;
|
|
·
|
market
demand and prices for energy, capacity, emission allowances and delivered
fuel;
|
|
·
|
competition
in retail and wholesale power markets;
|
|
·
|
liquidity
of wholesale power markets;
|
|
·
|
defaults
by counterparties under energy, fuel or other power product
contracts;
|
|
·
|
market
prices of commodity inputs for ongoing capital
expenditures;
|
|
·
|
capital
market conditions, including the availability of capital or credit,
changes in interest rates, and decisions regarding capital
structure;
|
|
·
|
stock
price performance of PPL;
|
|
·
|
the
fair value of debt and equity securities and the impact on defined benefit
costs and resultant cash funding requirements for defined benefit
plans;
|
|
·
|
interest
rates and their effect on pension, retiree medical and nuclear
decommissioning liabilities;
|
|
·
|
the
impact of the current financial and economic downturn;
|
|
·
|
the
profitability and liquidity, including access to capital markets and
credit facilities, of PPL and its subsidiaries;
|
|
·
|
new
accounting requirements or new interpretations or applications of existing
requirements;
|
|
·
|
securities
and credit ratings;
|
|
·
|
foreign
currency exchange rates;
|
|
·
|
current
and future environmental conditions and requirements and the related costs
of compliance, including environmental capital expenditures, emission
allowance costs and other expenses;
|
|
·
|
political,
regulatory or economic conditions in states, regions or countries where
PPL or its subsidiaries conduct business;
|
|
·
|
receipt
of necessary governmental permits, approvals and rate
relief;
|
|
·
|
new
state, federal or foreign legislation, including new tax
legislation;
|
|
·
|
state,
federal and foreign regulatory developments;
|
|
·
|
the
impact of any state, federal or foreign investigations applicable to PPL
and its subsidiaries and the energy industry;
|
|
·
|
the
effect of any business or industry restructuring;
|
|
·
|
development
of new projects, markets and technologies;
|
|
·
|
performance
of new ventures; and
|
|
·
|
asset
acquisitions and dispositions.
|
|
The
accompanying Notes to Condensed Consolidated Financial Statements are an
integral part of the financial
statements.
|
|
PPL
Corporation and Subsidiaries
|
||||||||
|
(Unaudited)
|
||||||||
|
(Millions
of Dollars)
|
||||||||
|
Nine
Months Ended
September 30,
|
||||||||
|
2009
|
2008
|
|||||||
|
Cash
Flows from Operating Activities
|
||||||||
|
Net
income
|
$
|
269
|
$
|
668
|
||||
|
Adjustments
to reconcile net income to net cash provided by operating
activities
|
||||||||
|
Depreciation
|
345
|
347
|
||||||
|
Amortization
of recoverable transition costs and other
|
286
|
286
|
||||||
|
Defined
benefits
|
(29
|
)
|
(55
|
)
|
||||
|
Deferred
income taxes and investment tax credits
|
20
|
(56
|
)
|
|||||
|
Gains
related to the extinguishment of notes
|
(29
|
)
|
||||||
|
Impairment
of assets
|
109
|
53
|
||||||
|
Unrealized
(gains) losses on derivatives, and other hedging
activities
|
256
|
(83
|
)
|
|||||
|
Other
|
36
|
52
|
||||||
|
Change
in current assets and current liabilities
|
||||||||
|
Accounts
receivable
|
(69
|
)
|
127
|
|||||
|
Accounts
payable
|
(201
|
)
|
(31
|
)
|
||||
|
Unbilled
revenue
|
98
|
(28
|
)
|
|||||
|
Counterparty
collateral deposits
|
326
|
(18
|
)
|
|||||
|
Price
risk management assets and liabilities
|
(216
|
)
|
(61
|
)
|
||||
|
Other
|
28
|
(58
|
)
|
|||||
|
Other
operating activities
|
||||||||
|
Other
assets
|
17
|
28
|
||||||
|
Other
liabilities
|
1
|
(10
|
)
|
|||||
|
Net
cash provided by operating activities
|
1,247
|
1,161
|
||||||
|
Cash
Flows from Investing Activities
|
||||||||
|
Expenditures
for property, plant and equipment
|
(821
|
)
|
(979
|
)
|
||||
|
Expenditures
for intangible assets
|
(67
|
)
|
(283
|
)
|
||||
|
Proceeds
from the sale of intangible assets
|
9
|
11
|
||||||
|
Purchases
of nuclear plant decommissioning trust investments
|
(182
|
)
|
(169
|
)
|
||||
|
Proceeds
from the sale of nuclear plant decommissioning trust
investments
|
163
|
149
|
||||||
|
Purchases
of other investments
|
(50
|
)
|
||||||
|
Proceeds
from the sale of other investments
|
150
|
36
|
||||||
|
Net
(increase) decrease in restricted cash and cash
equivalents
|
170
|
(70
|
)
|
|||||
|
Other
investing activities
|
(13
|
)
|
5
|
|||||
|
Net
cash used in investing activities
|
(591
|
)
|
(1,350
|
)
|
||||
|
Cash
Flows from Financing Activities
|
||||||||
|
Issuance
of long-term debt
|
298
|
699
|
||||||
|
Retirement
of long-term debt
|
(916
|
)
|
(299
|
)
|
||||
|
Issuance
of common stock
|
45
|
19
|
||||||
|
Repurchase
of common stock due to the repurchase program
|
(38
|
)
|
||||||
|
Payment
of common stock dividends
|
(386
|
)
|
(365
|
)
|
||||
|
Net
increase (decrease) in short-term debt
|
(70
|
)
|
109
|
|||||
|
Other
financing activities
|
(31
|
)
|
(9
|
)
|
||||
|
Net
cash provided by (used in) financing activities
|
(1,060
|
)
|
116
|
|||||
|
Effect
of Exchange Rates on Cash and Cash Equivalents
|
(5
|
)
|
||||||
|
Net
Decrease in Cash and Cash Equivalents
|
(404
|
)
|
(78
|
)
|
||||
|
Cash
and Cash Equivalents at Beginning of Period
|
1,100
|
430
|
||||||
|
Cash
and Cash Equivalents included in Assets Held for Sale
|
(3
|
)
|
||||||
|
Cash
and Cash Equivalents at End of Period
|
$
|
696
|
$
|
349
|
||||
|
The
accompanying Notes to Condensed Consolidated Financial Statements are an
integral part of the financial
statements.
|
|
PPL
Corporation and Subsidiaries
|
||||||||
|
(Unaudited)
|
||||||||
|
(Millions
of Dollars, shares in thousands)
|
||||||||
|
September 30,
2009
|
December 31,
2008
|
|||||||
|
Assets
|
||||||||
|
Current
Assets
|
||||||||
|
Cash
and cash equivalents
|
$
|
696
|
$
|
1,100
|
||||
|
Short-term
investments
|
150
|
|||||||
|
Restricted
cash and cash equivalents
|
151
|
320
|
||||||
|
Accounts
receivable (less reserve: 2009, $38; 2008, $36)
|
||||||||
|
Customer
|
411
|
456
|
||||||
|
Other
|
186
|
77
|
||||||
|
Unbilled
revenues
|
504
|
599
|
||||||
|
Fuel,
materials and supplies
|
361
|
337
|
||||||
|
Prepayments
|
97
|
84
|
||||||
|
Price
risk management assets
|
1,685
|
1,224
|
||||||
|
Other
intangibles
|
24
|
17
|
||||||
|
Assets
held for sale
|
175
|
|||||||
|
Other
current assets
|
9
|
19
|
||||||
|
Total
Current Assets
|
4,299
|
4,383
|
||||||
|
Investments
|
||||||||
|
Equity
method investments
|
34
|
47
|
||||||
|
Nuclear
plant decommissioning trust funds
|
525
|
446
|
||||||
|
Other
investments
|
23
|
29
|
||||||
|
Total
Investments
|
582
|
522
|
||||||
|
Property,
Plant and Equipment
|
||||||||
|
Electric
plant
|
||||||||
|
Transmission
and distribution
|
8,528
|
8,046
|
||||||
|
Generation
|
10,163
|
9,588
|
||||||
|
General
|
885
|
840
|
||||||
|
Electric
plant in service
|
19,576
|
18,474
|
||||||
|
Construction
work in progress
|
721
|
1,131
|
||||||
|
Nuclear
fuel
|
460
|
428
|
||||||
|
Electric
plant
|
20,757
|
20,033
|
||||||
|
Gas
and oil plant
|
68
|
68
|
||||||
|
Other
property
|
163
|
156
|
||||||
|
Property,
plant and equipment, gross
|
20,988
|
20,257
|
||||||
|
Less: accumulated
depreciation
|
8,111
|
7,882
|
||||||
|
Property,
Plant and Equipment, net
|
12,877
|
12,375
|
||||||
|
Regulatory
and Other Noncurrent Assets
|
||||||||
|
Regulatory
assets
|
493
|
737
|
||||||
|
Goodwill
|
805
|
763
|
||||||
|
Other
intangibles
|
622
|
637
|
||||||
|
Price
risk management assets
|
1,839
|
1,392
|
||||||
|
Other
regulatory and noncurrent assets
|
427
|
596
|
||||||
|
Total
Regulatory and Other Noncurrent Assets
|
4,186
|
4,125
|
||||||
|
Total
Assets
|
$
|
21,944
|
$
|
21,405
|
||||
|
The
accompanying Notes to Condensed Consolidated Financial Statements are an
integral part of the financial
statements.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
||||||||
|
PPL
Corporation and Subsidiaries
|
||||||||
|
(Unaudited)
|
||||||||
|
(Millions
of Dollars, shares in thousands)
|
||||||||
|
September 30,
2009
|
December 31,
2008
|
|||||||
|
Liabilities
and Equity
|
||||||||
|
Current
Liabilities
|
||||||||
|
Short-term
debt
|
$
|
620
|
$
|
679
|
||||
|
Long-term
debt
|
696
|
|||||||
|
Accounts
payable
|
567
|
766
|
||||||
|
Taxes
|
89
|
77
|
||||||
|
Interest
|
140
|
130
|
||||||
|
Dividends
|
135
|
131
|
||||||
|
Price
risk management liabilities
|
1,425
|
1,324
|
||||||
|
Counterparty
collateral
|
348
|
22
|
||||||
|
Other
current liabilities
|
469
|
477
|
||||||
|
Total
Current Liabilities
|
3,793
|
4,302
|
||||||
|
Long-term
Debt
|
7,250
|
7,142
|
||||||
|
Deferred
Credits and Other Noncurrent Liabilities
|
||||||||
|
Deferred
income taxes and investment tax credits
|
2,203
|
1,764
|
||||||
|
Price
risk management liabilities
|
927
|
836
|
||||||
|
Accrued
pension obligations
|
839
|
899
|
||||||
|
Asset
retirement obligations
|
398
|
389
|
||||||
|
Other
deferred credits and noncurrent liabilities
|
597
|
677
|
||||||
|
Total
Deferred Credits and Other Noncurrent Liabilities
|
4,964
|
4,565
|
||||||
|
Commitments
and Contingent Liabilities (Note 10)
|
||||||||
|
Equity
|
||||||||
|
PPL
Corporation Shareowners' Common Equity
|
||||||||
|
Common
stock - $0.01 par value (a)
|
4
|
4
|
||||||
|
Capital
in excess of par value
|
2,264
|
2,196
|
||||||
|
Earnings
reinvested
|
3,726
|
3,862
|
||||||
|
Accumulated
other comprehensive loss
|
(376
|
)
|
(985
|
)
|
||||
|
Total
PPL Corporation Shareowners' Common Equity
|
5,618
|
5,077
|
||||||
|
Noncontrolling
Interests
|
319
|
319
|
||||||
|
Total
Equity
|
5,937
|
5,396
|
||||||
|
Total
Liabilities and Equity
|
$
|
21,944
|
$
|
21,405
|
||||
|
(a)
|
780,000
shares authorized; 376,639 shares issued and outstanding at
September 30, 2009 and 374,581 shares issued and outstanding at
December 31, 2008.
|
|
|
The
accompanying Notes to Condensed Consolidated Financial Statements are an
integral part of the financial
statements.
|
||
|
PPL
Corporation and Subsidiaries
|
|||||||||||||||||||||||||||
|
(Unaudited)
|
|||||||||||||||||||||||||||
|
(Millions
of Dollars, shares in thousands)
|
|||||||||||||||||||||||||||
|
PPL
Corporation Shareowners
|
|||||||||||||||||||||||||||
|
Common
stock shares outstanding
|
Common
stock
|
Capital
in excess of par value
|
Earnings
reinvested
|
Accumulated
other comprehensive loss
|
Non-controlling
interests
|
Total
|
|||||||||||||||||||||
|
June
30, 2009
|
376,144
|
$
|
4
|
$
|
2,246
|
$
|
3,837
|
$
|
(568
|
)
|
$
|
319
|
$
|
5,838
|
|||||||||||||
|
Common
stock issued (b)
|
495
|
17
|
17
|
||||||||||||||||||||||||
|
Stock-based
compensation
|
1
|
1
|
|||||||||||||||||||||||||
|
Net
income
|
20
|
6
|
26
|
||||||||||||||||||||||||
|
Dividends,
dividend equivalents and distributions (c)
|
(131
|
)
|
(6
|
)
|
(137
|
)
|
|||||||||||||||||||||
|
Other
comprehensive income
|
192
|
192
|
|||||||||||||||||||||||||
|
September 30,
2009
|
376,639
|
$
|
4
|
$
|
2,264
|
$
|
3,726
|
$
|
(376
|
)
|
$
|
319
|
$
|
5,937
|
|||||||||||||
|
December 31,
2008 (a)
|
374,581
|
$
|
4
|
$
|
2,196
|
$
|
3,862
|
$
|
(985
|
)
|
$
|
319
|
$
|
5,396
|
|||||||||||||
|
Common
stock issued (b)
|
2,092
|
66
|
66
|
||||||||||||||||||||||||
|
Common
stock repurchased
|
(34
|
)
|
(1
|
)
|
(1
|
)
|
|||||||||||||||||||||
|
Stock-based
compensation
|
3
|
3
|
|||||||||||||||||||||||||
|
Net
income
|
254
|
15
|
269
|
||||||||||||||||||||||||
|
Dividends,
dividend equivalents and distributions (c)
|
(391
|
)
|
(15
|
)
|
(406
|
)
|
|||||||||||||||||||||
|
Other
comprehensive income
|
610
|
610
|
|||||||||||||||||||||||||
|
Cumulative
effect adjustment (d)
|
1
|
(1
|
)
|
||||||||||||||||||||||||
|
September 30,
2009
|
376,639
|
$
|
4
|
$
|
2,264
|
$
|
3,726
|
$
|
(376
|
)
|
$
|
319
|
$
|
5,937
|
|||||||||||||
|
June 30,
2008 (a)
|
374,519
|
$
|
4
|
$
|
2,193
|
$
|
3,634
|
$
|
(648
|
)
|
$
|
320
|
$
|
5,503
|
|||||||||||||
|
Common
stock issued (b)
|
80
|
3
|
3
|
||||||||||||||||||||||||
|
Stock-based
compensation
|
3
|
3
|
|||||||||||||||||||||||||
|
Net
income
|
203
|
5
|
208
|
||||||||||||||||||||||||
|
Dividends,
dividend equivalents and distributions (c)
|
(126
|
)
|
(5
|
)
|
(131
|
)
|
|||||||||||||||||||||
|
Other
comprehensive income
|
318
|
318
|
|||||||||||||||||||||||||
|
September 30,
2008
|
374,599
|
$
|
4
|
$
|
2,199
|
$
|
3,711
|
$
|
(330
|
)
|
$
|
320
|
$
|
5,904
|
|||||||||||||
|
December 31,
2007 (a)
|
373,271
|
$
|
4
|
$
|
2,185
|
$
|
3,435
|
$
|
(68
|
)
|
$
|
320
|
$
|
5,876
|
|||||||||||||
|
Common
stock issued (b)
|
2,152
|
28
|
28
|
||||||||||||||||||||||||
|
Common
stock repurchased (e)
|
(824
|
)
|
(39
|
)
|
(39
|
)
|
|||||||||||||||||||||
|
Stock-based
compensation
|
25
|
25
|
|||||||||||||||||||||||||
|
Net
income
|
653
|
15
|
668
|
||||||||||||||||||||||||
|
Dividends,
dividend equivalents and distributions (c)
|
(377
|
)
|
(15
|
)
|
(392
|
)
|
|||||||||||||||||||||
|
Other
comprehensive loss
|
(262
|
)
|
(262
|
)
|
|||||||||||||||||||||||
|
September 30,
2008
|
374,599
|
$
|
4
|
$
|
2,199
|
$
|
3,711
|
$
|
(330
|
)
|
$
|
320
|
$
|
5,904
|
|||||||||||||
|
(a)
|
"Capital
in excess of par value" and "Earnings reinvested" have been adjusted by
$13 million to reflect the adoption of new accounting
guidance. See "New Accounting Guidance Adopted - Accounting for
Convertible Debt Instruments That May Be Settled in Cash upon Conversion
(Including Partial Cash Settlement)" in Note 2 for additional
information.
|
|
|
(b)
|
The
three months ended September 30, 2009, includes common stock shares
issued through the ICP, ICPKE, and DRIP. The nine months ended
September 30, 2009, includes common stock shares issued through the
ICP, ICPKE, DRIP, ESOP and DDCP. The three months ended
September 30, 2008, includes common stock shares issued through the
ICP and ICPKE, net of forfeitures. The nine months ended
September 30, 2008, includes common stock shares issued through the
ICP, ICPKE and the 2-5/8% Convertible Senior Notes, net of
forfeitures. "Capital in excess of par value" for the nine
months ended September 30, 2009, includes $7 million for a company
contribution to the ESOP.
|
|
|
(c)
|
"Earnings
reinvested" includes dividends and dividend equivalents on PPL Corporation
common stock and restricted stock units. "Noncontrolling
interests" includes dividends and distributions to noncontrolling
interests.
|
|
|
(d)
|
See
"New Accounting Guidance Adopted - Recognition and Presentation of
Other-Than-Temporary Impairments" in Note 2 regarding this cumulative
effect adjustment.
|
|
|
(e)
|
In
2007, PPL's Board of Directors authorized the repurchase by PPL of up to
$750 million of its common stock. During the nine months ended
September 30, 2008, PPL purchased 802,816 shares of PPL common stock for
$38 million.
|
|
|
The
accompanying Notes to Condensed Consolidated Financial Statements are an
integral part of the financial
statements.
|
||
|
PPL
Corporation and Subsidiaries
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
(Millions
of Dollars)
|
||||||||||||||||
|
Three
Months Ended
September 30,
|
Nine
Months Ended
September 30,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Net
income
|
$
|
26
|
$
|
208
|
$
|
269
|
$
|
668
|
||||||||
|
Other
comprehensive income (loss):
|
||||||||||||||||
|
Amounts
arising during the period - gains (losses), net of tax (expense)
benefit:
|
||||||||||||||||
|
Foreign
currency translation adjustments, net of tax of $(1), $(4), $3,
$(4)
|
18
|
(145
|
)
|
88
|
(217
|
)
|
||||||||||
|
Available-for-sale
securities, net of tax of $(24), $10, $(35), $32
|
20
|
(7
|
)
|
30
|
(28
|
)
|
||||||||||
|
Qualifying
derivatives, net of tax of $(12), $(452), $(184), $(104)
|
17
|
665
|
249
|
166
|
||||||||||||
|
Equity
investee's other comprehensive loss
|
(1
|
)
|
||||||||||||||
|
Defined
benefit plans:
|
||||||||||||||||
|
Net
actuarial gain, net of tax of $(3), $(3)
|
4
|
4
|
||||||||||||||
|
Reclassifications
to net income - (gains) losses, net of tax expense
(benefit):
|
||||||||||||||||
|
Available-for-sale
securities, net of tax of $(1), $(1)
|
2
|
2
|
||||||||||||||
|
Qualifying
derivatives, net of tax of $(91), $137, $(158), $135
|
127
|
(203
|
)
|
224
|
(204
|
)
|
||||||||||
|
Defined
benefit plans:
|
||||||||||||||||
|
Prior
service costs, net of tax of $(2), $(1), $(6), $(6)
|
4
|
5
|
10
|
12
|
||||||||||||
|
Net
actuarial loss, net of tax of $(1), $(2), $(4)
|
3
|
2
|
9
|
|||||||||||||
|
Transition
obligation
|
1
|
1
|
||||||||||||||
|
Total
other comprehensive income (loss) attributable to PPL
Corporation
|
192
|
318
|
610
|
(262
|
)
|
|||||||||||
|
Comprehensive
income
|
218
|
526
|
879
|
406
|
||||||||||||
|
Comprehensive
income attributable to noncontrolling interests
|
6
|
5
|
15
|
15
|
||||||||||||
|
Comprehensive
income attributable to PPL Corporation
|
$
|
212
|
$
|
521
|
$
|
864
|
$
|
391
|
||||||||
|
The
accompanying Notes to Condensed Consolidated Financial Statements are an
integral part of the financial
statements.
|
|
PPL
Energy Supply, LLC and Subsidiaries
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
(Millions
of Dollars)
|
||||||||||||||||
|
Three
Months Ended
September 30,
|
Nine
Months Ended
September 30,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Operating
Revenues
|
||||||||||||||||
|
Wholesale
energy marketing
|
||||||||||||||||
|
Realized
|
$
|
999
|
$
|
748
|
$
|
2,564
|
$
|
1,610
|
||||||||
|
Unrealized
economic activity (Note 14)
|
(307
|
)
|
1,157
|
(67
|
)
|
361
|
||||||||||
|
Wholesale
energy marketing to affiliate
|
445
|
453
|
1,353
|
1,370
|
||||||||||||
|
Utility
|
165
|
195
|
496
|
647
|
||||||||||||
|
Unregulated
retail electric and gas
|
34
|
43
|
108
|
110
|
||||||||||||
|
Net
energy trading margins
|
7
|
(132
|
)
|
2
|
(82
|
)
|
||||||||||
|
Energy-related
businesses
|
113
|
146
|
312
|
389
|
||||||||||||
|
Total
Operating Revenues
|
1,456
|
2,610
|
4,768
|
4,405
|
||||||||||||
|
Operating
Expenses
|
||||||||||||||||
|
Operation
|
||||||||||||||||
|
Fuel
|
264
|
305
|
708
|
734
|
||||||||||||
|
Energy
purchases
|
||||||||||||||||
|
Realized
|
721
|
456
|
1,956
|
996
|
||||||||||||
|
Unrealized
economic activity (Note 14)
|
(79
|
)
|
1,020
|
255
|
157
|
|||||||||||
|
Energy
purchases from affiliate
|
19
|
29
|
59
|
87
|
||||||||||||
|
Other
operation and maintenance
|
228
|
285
|
778
|
832
|
||||||||||||
|
Depreciation
|
83
|
79
|
236
|
237
|
||||||||||||
|
Taxes,
other than income
|
23
|
26
|
64
|
70
|
||||||||||||
|
Energy-related
businesses
|
106
|
136
|
292
|
360
|
||||||||||||
|
Total
Operating Expenses
|
1,365
|
2,336
|
4,348
|
3,473
|
||||||||||||
|
Operating
Income
|
91
|
274
|
420
|
932
|
||||||||||||
|
Other
Income - net
|
9
|
6
|
32
|
25
|
||||||||||||
|
Other-Than-Temporary
Impairments
|
6
|
18
|
16
|
|||||||||||||
|
Interest
Income from Affiliates
|
4
|
2
|
11
|
|||||||||||||
|
Interest
Expense
|
74
|
87
|
197
|
233
|
||||||||||||
|
Income
from Continuing Operations Before Income Taxes
|
26
|
191
|
239
|
719
|
||||||||||||
|
Income
Taxes
|
17
|
33
|
41
|
213
|
||||||||||||
|
Income
from Continuing Operations After Income Taxes
|
9
|
158
|
198
|
506
|
||||||||||||
|
Income
(Loss) from Discontinued Operations (net of income taxes) (Note
8)
|
(24
|
)
|
3
|
(53
|
)
|
17
|
||||||||||
|
Net
Income (Loss)
|
(15
|
)
|
161
|
145
|
523
|
|||||||||||
|
Net
Income Attributable to Noncontrolling Interests
|
1
|
1
|
1
|
|||||||||||||
|
Net
Income (Loss) Attributable to PPL Energy Supply
|
$
|
(16
|
)
|
$
|
161
|
$
|
144
|
$
|
522
|
|||||||
|
Amounts
Attributable to PPL Energy Supply:
|
||||||||||||||||
|
Income
from Continuing Operations After Income Taxes
|
$
|
8
|
$
|
158
|
$
|
197
|
$
|
505
|
||||||||
|
Income
(Loss) from Discontinued Operations (net of income taxes)
|
(24
|
)
|
3
|
(53
|
)
|
17
|
||||||||||
|
Net
Income (Loss)
|
$
|
(16
|
)
|
$
|
161
|
$
|
144
|
$
|
522
|
|||||||
|
The
accompanying Notes to Condensed Consolidated Financial Statements are an
integral part of the financial
statements.
|
|
PPL
Energy Supply, LLC and Subsidiaries
|
||||||||
|
(Unaudited)
|
||||||||
|
(Millions
of Dollars)
|
||||||||
|
Nine
Months Ended
September 30,
|
||||||||
|
2009
|
2008
|
|||||||
|
Cash
Flows from Operating Activities
|
||||||||
|
Net
income
|
$
|
145
|
$
|
523
|
||||
|
Adjustments
to reconcile net income to net cash provided by operating
activities
|
||||||||
|
Depreciation
|
237
|
240
|
||||||
|
Amortization
|
52
|
51
|
||||||
|
Defined
benefits
|
(64
|
)
|
(61
|
)
|
||||
|
Deferred
income taxes and investment tax credits
|
77
|
31
|
||||||
|
Impairment
of assets
|
105
|
49
|
||||||
|
Unrealized
(gains) losses on derivatives, and other hedging
activities
|
257
|
(86
|
)
|
|||||
|
Other
|
7
|
50
|
||||||
|
Change
in current assets and current liabilities
|
||||||||
|
Accounts
receivable
|
121
|
164
|
||||||
|
Accounts
payable
|
(224
|
)
|
(27
|
)
|
||||
|
Unbilled
revenue
|
49
|
(73
|
)
|
|||||
|
Fuel,
materials and supplies
|
(26
|
)
|
(9
|
)
|
||||
|
Collateral
on PLR energy supply to affiliate
|
300
|
|||||||
|
Counterparty
collateral deposits
|
326
|
(18
|
)
|
|||||
|
Price
risk management assets and liabilities
|
(215
|
)
|
(60
|
)
|
||||
|
Other
|
47
|
50
|
||||||
|
Other
operating activities
|
||||||||
|
Other
assets
|
11
|
14
|
||||||
|
Other
liabilities
|
(36
|
)
|
(4
|
)
|
||||
|
Net
cash provided by operating activities
|
1,169
|
834
|
||||||