Financial Analysis

"12. Commitments and Contingencies Energy Purchase Commitments (PPL, LG&E and KU) LG&E and KU enter into purchase contracts to supply the coal and natural gas requirements for generation facilities and LG&E's retail natural gas supply operations. These contracts include the following commitments: Contract Type Maximum Maturity Date Natural Gas Fuel 2027 Natural Gas Retail Supply 2026 Coal 2030 Coal Transportation and Fleeting Services 2033 Natural Gas Transportation 2055 LG&E and KU have a PPA with OVEC expiring in June 2040. See footnote (d) to the table in ""Guarantees and Other Assurances"" below for information on the OVEC power purchase contract. Future obligations for power purchases from OVEC are demand payments, comprised of debt-service payments and contractually-required reimbursements of plant operating, maintenance and other expenses, and are projected as follows: LG&E KU Total 2026 $ 19 $ 8 $ 27 2027 24 10 34 2028 24 11 35 2029 25 11 36 2030 23 10 33 Thereafter 184 83 267 Total $ 299 $ 133 $ 432 LG&E and KU had total energy purchases under the OVEC PPA for the years ended December 31 as follows: 2025 2024 2023 LG&E $ 26 $ 21 $ 20 KU 11 9 9 Total $ 37 $ 30 $ 29 (PPL) RIE enters into purchase contracts to supply electricity for electricity distribution operations and for the delivery, storage and supply of natural gas for RIE's retail natural gas operations. These contracts include the following commitments: Contract Type Maximum Maturit …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"8. 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 also apply 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: December 31, 2025 December 31, 2024 Expiration Date Capacity Borrowed Letters of Credit and Commercial Paper Issued (a) Unused Capacity Borrowed Letters of Credit and Commercial Paper Issued (a) PPL PPL Capital Funding (b) Syndicated Credit Facility (c)(d)(e) Dec. 2029 $ 1,500 $ $ 456 $ 1,044 $ $ 138 Bilateral Credit Facility (c)(d) Feb. 2026 100 100 Bilateral Credit Facility (c)(d) Feb. 2026 100 17 83 15 Total PPL Capital Funding Credit Facilities $ 1,700 $ $ 473 $ 1,227 $ $ 153 PPL Electric Syndicated Credit Facility (c)(d) Dec. 2029 750 6 744 1 Total PPL Electric Credit Facilities $ 750 $ $ 6 $ 744 $ $ 1 LG&E Syndicated Credit Facility (c)(d) Dec. 2029 600 600 25 Total LG&E Credit Facilities $ 600 $ $ $ 600 $ $ 25 KU Syndicated Credit Facility (c)(d) Dec. 2029 600 600 140 Total KU Credit Facilities $ 600 $ $ $ 600 $ $ 140 (a) Commercial paper issued reflects the undiscounted face value of the issuance. (b) PPL Capital Funding's obligations a …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"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 2025 PA Regulated $ 1,656 $ 448 $ 56 $ 54 $ $ $ 903 $ 3,117 RI Regulated (c) 1,249 671 83 86 213 2,302 KY Regulated 1,616 1,063 627 309 25 111 3,751 Total PPL $ 4,521 $ 2,182 $ 766 $ 449 $ 25 $ 111 $ 1,116 $ 9,170 Residential Commercial Industrial Other (a) Wholesale - municipality Wholesale - other (b) Transmission Revenues from Contracts with Customers 2024 PA Regulated $ 1,502 $ 418 $ 47 $ 57 $ $ $ 818 $ 2,842 RI Regulated (c) 1,150 593 91 10 176 2,020 KY Regulated 1,510 1,028 635 323 23 63 3,582 Total PPL $ 4,162 $ 2,039 $ 773 $ 390 $ 23 $ 63 $ 994 $ 8,444 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 PPL Electric 2025 $ 1,656 $ 448 $ 56 $ 54 $ $ $ 903 $ 3,117 2024 $ 1,502 $ 418 $ 47 $ 57 $ $ $ 818 $ 2,842 2023 $ 1,649 $ 444 $ 55 $ 54 $ $ $ 796 $ 2,998 LG&E 2025 $ 809 $ 540 $ 187 $ 139 $ $ 67 $ $ 1,742 2024 $ 754 $ 518 $ 188 $ 147 $ $ 50 $ $ 1,657 2023 $ 751 $ 517 $ 189 $ 104 $ $ 47 $ $ 1,608 KU 2025 $ 807 $ 523 $ 440 $ 169 $ 25 $ 96 $ $ 2,060 2024 $ 756 $ 510 $ 447 $ 176 $ 23 $ 64 $ $ 1,976 2023 $ 707 $ 484 $ 448 $ 16 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"15. Fair Value Measurements (All Registrants) Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). A market approach (generally, data from market transactions), an income approach (generally, present value techniques and option-pricing models), and/or a cost approach (generally, replacement cost) are used to measure the fair value of an asset or liability, as appropriate. These valuation approaches incorporate inputs such as observable, independent market data and/or unobservable data that management believes are predicated on the assumptions market participants would use to price an asset or liability. These inputs may incorporate, as applicable, certain risks such as nonperformance risk, which includes credit risk. The fair value of a group of financial assets and liabilities is measured on a net basis. See Note 1 for information on the levels in the fair value hierarchy. Recurring Fair Value Measurements The assets and liabilities measured at fair value were: December 31, 2025 December 31, 2024 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 PPL Assets Cash and cash equivalents $ 1,071 $ 1,071 $ $ $ 306 $ 306 $ $ Restricted cash and cash equivalents (a) 15 15 33 33 Total Cash, Cash Equivalents and Restricted Cash (b) 1,086 1,086 339 339 Special use funds (a): Money market fund 1 1 1 1 Commingled debt fund measured at NAV (c) …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"17. Goodwill and Other Intangible Assets Goodwill (PPL) Goodwill at PPL totaled $2,247 million at December 31, 2025 and 2024, consisting of $662 million for the Kentucky Regulated segment, $725 million for the Rhode Island Regulated segment and $860 million for Corporate and Other. There were no accumulated impairment losses related to goodwill. Other Intangible Assets (PPL) The gross carrying amount and the accumulated amortization of other intangible assets were: December 31, 2025 December 31, 2024 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Subject to amortization: Contracts (a) $ 125 $ 124 $ 125 $ 116 Renewable Energy Credits 24 20 Land rights and easements 445 139 432 147 Licenses and other 2 2 Total subject to amortization 596 263 579 263 Not subject to amortization due to indefinite life: Land rights and easements 18 18 Total not subject to amortization due to indefinite life 18 18 Total $ 614 $ 263 $ 597 $ 263 (a) Gross carrying amount includes the fair value at the acquisition date of the OVEC power purchase contract with terms favorable to market recognized as a result of the 2010 acquisition of LKE by PPL. Current intangible assets are included in ""Other current assets"" and long-term intangible assets are included in ""Other intangibles"" on the Balance Sheets. Amortization expense was as follows: 2025 2024 2023 Intangible assets with no regulatory offset $ 5 $ 5 $ 5 Intangible assets with regulatory offset 8 8 9 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"6. Income and Other Taxes (PPL) Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for accounting purposes and their basis for income tax purposes and the tax effects of net operating loss and tax credit carryforwards. The provision for PPL's deferred income taxes for regulated assets and liabilities is based upon the ratemaking principles of the applicable jurisdiction. See Notes 1 and 7 for additional information. Net deferred tax assets have been recognized based on management's estimates of future taxable income. Significant components of PPL's deferred income tax assets and liabilities were as follows: 2025 2024 Deferred Tax Assets Deferred investment tax credits $ 27 $ 28 Regulatory liabilities 186 133 Income taxes due to customers 397 418 Accrued pension and postretirement costs 99 112 State loss carryforwards 181 224 Federal and state tax credit carryforwards 35 24 Internal Revenue Code Section 197 intangibles 67 72 Contributions in aid of construction 206 163 Bad debt 34 37 Other 130 114 Valuation allowances (184) (224) Total deferred tax assets 1,178 1,101 Deferred Tax Liabilities Plant - net 4,105 3,898 Regulatory assets 432 432 Prepayments 49 39 Goodwill 52 38 Other 37 38 Total deferred tax liabilities 4,675 4,445 Net deferred tax liability $ 3,497 $ 3,344 State deferred taxes are determined by entity and by jurisdiction. As a result, $9 million and $12 million of net deferred tax asse …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"(All Registrants) 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 2025 to 2042, 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 2025 through 2051. RIE has various operating leases, primarily related to buildings, land, and finance leases related to fleet vehicles used to support the electric and gas operations, with lease terms ranging between 1 and 28 years. In measuring lease liabilities, the Company excludes variable lease payments, other than those that depend on an index or rate, or are in substance fixed payments, and includes lease payments made at or before the commencement date. The variable lease payments were not material for the year ended December 31, 2024. PPL Electric also has operating leases which do not have a significant impact to its operations. (PPL, LG&E and KU) Lessee Transactions The following table provides the components of lease cost for the Registrants' leases for the years ended December 31: 2025 2024 2023 PPL Lease cost: Finance lease cost: Amortization of right-of-use assets $ 1 $ Interest on lease liabilities Operating lease cost 26 20 Short …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

10. Retirement and Postemployment Benefits (All Registrants) Defined Benefits Certain employees of PPL's subsidiaries are eligible for pension benefits under non-contributory defined benefit pension plans with benefits based on length of service and final average pay, as defined by the plans. Effective January 1, 2012, PPL's primary defined benefit pension plan was closed to all newly hired salaried employees. Effective July 1, 2014, PPL's primary defined benefit pension plan was closed to all newly hired bargaining unit employees. Newly hired employees are eligible to participate in the PPL Retirement Savings Plan, a 401(k) savings plan with enhanced employer contributions. The defined benefit pension plans of LKE and its subsidiaries were closed to new salaried and bargaining unit employees hired after December 31, 2005. Employees hired after December 31, 2005 receive additional company contributions above the standard matching contributions to their savings plans. The pension plans sponsored by LKE and LG&E were merged effective January 1, 2020 into the LG&E and KU Pension Plan. The merged plan is sponsored by LKE. LG&E and KU participate in this plan. The RIE defined benefit plans were closed to new salaried employees in 2012 and bargaining unit employees in 2013. Employees hired after the defined benefit plans were closed receive additional company contributions above the standard matching contributions to their savings plans. PPL and certain of its subsidiar …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

"3. Revenue from Contracts with Customers (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 and include unbilled amounts, which represent the amounts due from customers as a result of customer's bills being rendered throughout the month, rather than at the end of the month. 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 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"2. Segment and Related Information (PPL) PPL is organized into three segments, broken down by geographic location: Kentucky Regulated, Pennsylvania Regulated, and Rhode Island Regulated. The Kentucky Regulated segment consists primarily of the regulated electricity generation, transmission and distribution operations conducted by LG&E and KU, as well as LG&E's regulated distribution and sale of natural gas. The Pennsylvania Regulated segment includes the regulated electricity transmission and distribution operations of PPL Electric. The Rhode Island Regulated segment includes the regulated electricity transmission and distribution and natural gas distribution operations of RIE. ""Corporate and Other"" primarily includes corporate level financing costs, certain unallocated corporate costs, and certain non-recoverable costs incurred in conjunction with the acquisition of RIE. ""Corporate and Other"" is presented to reconcile segment information to PPL's consolidated results and is not a reportable segment. PPL's Chief Operating Decision Maker (CODM) is the CLC. The CLC uses financial metrics including segment net income, earnings from ongoing operations, earnings per share and return on equity, as well as various operational metrics to assess segment performance and make investment and resource decisions. Segment net income is the measure of segment profit or loss that most closely aligns with GAAP and is being presented for disclosure purposes. The tables below provid …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"1. Summary of Significant Accounting Policies (All Registrants) General Capitalized terms and abbreviations appearing in the combined notes to financial statements are defined in the glossary. Dollars are in millions, except per share data, unless otherwise noted. The specific Registrant to which disclosures are applicable is identified in parenthetical headings in italics above the applicable disclosure or within the applicable disclosure for each Registrants' related activities and disclosures. Within combined disclosures, amounts are disclosed for any Registrant when significant. Business and Consolidation (PPL) PPL is a utility holding company that, through its regulated subsidiaries, is primarily engaged in: 1) the generation, transmission, distribution and sale of electricity and the distribution and sale of natural gas, primarily in Kentucky; 2) the transmission, distribution and sale of electricity in Pennsylvania; and 3) the transmission, distribution and sale of electricity and the distribution and sale of natural gas in Rhode Island. Headquartered in Allentown, PA, PPL's principal subsidiaries are LG&E, KU, RIE and PPL Electric. PPL's corporate level financing subsidiary is PPL Capital Funding. (PPL and PPL Electric) PPL Electric's principal business is the transmission and distribution of electricity to serve retail customers in its franchised territory in eastern and central Pennsylvania and the regulated supply of electricity to retail customers in that ter …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"10. Commitments and Contingencies Legal Matters (All Registrants) PPL and its subsidiaries are involved in legal proceedings, claims and litigation in the ordinary course of business. PPL and its subsidiaries cannot predict the outcome of such matters, or whether such matters may result in material liabilities, unless otherwise noted. Narragansett Electric Litigation (PPL) Energy Efficiency Programs Investigation Narragansett Electric, while under the ownership of National Grid, performed an internal investigation into conduct associated with its energy efficiency programs. On June 27, 2022, the RIPUC opened a new docket (RIPUC Docket No. 22-05-EE) to investigate RIEs actions and the actions of employees of National Grid USA and affiliates during the time RIE was a National Grid USA affiliate being provided services by National Grid USA Service Company, Inc. relating to the manipulation of the reporting of invoices affecting the calculation of past energy efficiency shareholder incentives and the resulting impact on customers. The Rhode Island Attorney General and National Grid USA intervened in the docket and the Rhode Island Division of Public Utilities and Carriers (the Division) is an automatic party in the docket. On February 21, 2025, the Division filed testimony confirming its initial testimony that $12 million is the appropriate amount to be refunded to the energy efficiency program. On March 4, 2025, a Settlement Agreement between RIE, the Division, and the Rhode Is …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"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: September 30, 2025 December 31, 2024 Expiration Date Capacity Borrowed Letters of Credit and Commercial Paper Issued (c) Unused Capacity Borrowed Letters of Credit and Commercial Paper Issued (c) PPL PPL Capital Funding (a) Syndicated Credit Facility (b) Dec. 2029 $ 1,500 $ $ 596 $ 904 $ $ 138 Bilateral Credit Facility Feb. 2026 100 100 Bilateral Credit Facility Feb. 2026 100 28 72 15 Total PPL Capital Funding Credit Facilities $ 1,700 $ $ 624 $ 1,076 $ $ 153 PPL Electric Syndicated Credit Facility Dec. 2029 $ 750 $ $ 1 $ 749 $ $ 1 Total PPL Electric Credit Facilities $ 750 $ $ 1 $ 749 $ $ 1 LG&E Syndicated Credit Facility Dec. 2029 $ 600 $ $ $ 600 $ $ 25 Total LG&E Credit Facilities $ 600 $ $ $ 600 $ $ 25 KU Syndicated Credit Facility Dec. 2029 $ 600 $ $ $ 600 $ $ 140 Total KU Credit Facilities $ 600 $ $ $ 600 $ $ 140 (a) PPL Capital Funding's obligations are fully and unconditionally guaranteed by PPL. (b) In January 2025, PPL Capital F …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"The following tables show revenues from contracts with customers disaggregated by customer class for the periods ended September 30. Three Months Residential Commercial Industrial Other (a) Wholesale - municipality Wholesale - other (b) Transmission Revenues from Contracts with Customers PPL 2025 PA Regulated $ 403 $ 119 $ 16 $ 15 $ $ $ 229 $ 782 KY Regulated 394 278 162 74 7 26 941 RI Regulated (c) 258 158 23 9 66 514 Total PPL $ 1,055 $ 555 $ 201 $ 98 $ 7 $ 26 $ 295 $ 2,237 2024 PA Regulated $ 367 $ 111 $ 12 $ 15 $ $ $ 204 $ 709 KY Regulated 378 268 161 76 7 20 910 RI Regulated (c) 112 38 5 251 52 458 Total PPL $ 857 $ 417 $ 178 $ 342 $ 7 $ 20 $ 256 $ 2,077 PPL Electric 2025 $ 403 $ 119 $ 16 $ 15 $ $ $ 229 $ 782 2024 $ 367 $ 111 $ 12 $ 15 $ $ $ 204 $ 709 LG&E 2025 $ 195 $ 137 $ 49 $ 29 $ $ 14 $ $ 424 2024 $ 190 $ 132 $ 48 $ 31 $ $ 6 $ $ 407 KU 2025 $ 199 $ 141 $ 113 $ 46 $ 7 $ 25 $ $ 531 2024 $ 188 $ 136 $ 113 $ 45 $ 7 $ 26 $ $ 515 Nine Months Residential Commercial Industrial Other (a) Wholesale - municipality Wholesale - other (b) Transmission Revenues from Contracts with Customers PPL 2025 PA Regulated $ 1,205 $ 331 $ 42 $ 41 $ $ $ 675 $ 2,294 KY Regulated 1,209 805 474 241 19 88 2,836 RI Regulated (c) 913 516 61 37 166 1,693 Total PPL $ 3,327 $ 1,652 $ 577 $ 319 $ 19 $ 88 $ 841 $ 6,823 2024 PA Regulated $ 1,125 $ 318 $ 34 $ 43 $ $ $ 613 $ 2,133 KY Regulated 1,147 780 479 248 18 48 2,720 RI Regulated (c) 480 182 17 593 128 1,400 Corp and Other 1 1 Total PPL $ 2,752 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"13. Fair Value Measurements (All Registrants) Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). A market approach (generally, data from market transactions), an income approach (generally, present value techniques and option pricing models) and/or a cost approach (generally, replacement cost) are used to measure the fair value of an asset or liability, as appropriate. These valuation approaches incorporate inputs such as observable, independent market data and/or unobservable data that management believes are predicated on the assumptions market participants would use to price an asset or liability. These inputs may incorporate, as applicable, certain risks such as nonperformance risk, which includes credit risk. The fair value of a group of financial assets and liabilities is measured on a net basis. See Note 1 in each Registrant's 2024 Form 10-K for information on the levels in the fair value hierarchy. Recurring Fair Value Measurements The assets and liabilities measured at fair value were: September 30, 2025 December 31, 2024 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 PPL Assets Cash and cash equivalents $ 1,102 $ 1,102 $ $ $ 306 $ 306 $ $ Restricted cash and cash equivalents (a) 17 17 33 33 Total Cash, Cash Equivalents and Restricted Cash (b) 1,119 1,119 339 339 Special use funds (a): Money market fund 2 2 1 1 Comm …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

5. Income Taxes Reconciliations of income tax expense (benefit) for the periods ended September 30 are as follows. (PPL) Three Months Nine Months 2025 2024 2025 2024 Federal income tax on Income Before Income Taxes at statutory tax rate - 21% $ 84 $ 57 $ 240 $ 189 Increase (decrease) due to: State income taxes, net of federal income tax benefit 20 20 48 48 Income tax credits (4) (2) (9) (4) Utility rate-making tax adjustments (a) (6) (4) (20) (14) Amortization of excess deferred federal and state income taxes (13) (13) (34) (33) Other (1) 4 3 Total increase (decrease) (4) 1 (11) Total income tax expense (benefit) $ 80 $ 58 $ 229 $ 189 (a) Primarily consists of tax impacts of AFUDC equity and related depreciation across PPL's regulated utility subsidiaries and flow through tax impacts of utility ratemaking. Flow through occurs when the regulator excludes deferred tax expense or benefit from recoverable costs when determining income tax expense. (PPL Electric) Three Months Nine Months 2025 2024 2025 2024 Federal income tax on Income Before Income Taxes at statutory tax rate - 21% $ 44 $ 40 $ 132 $ 122 Increase (decrease) due to: State income taxes, net of federal income tax benefit 13 13 40 39 Utility rate-making tax adjustments (a) (5) (2) (17) (12) Amortization of excess deferred federal and state income taxes (2) (3) (7) (8) Other (1) (1) (2) Total increase (decrease) 5 7 14 19 Total income tax expense (benefit) $ 49 $ 47 $ 146 $ 141 (a) Primarily consists of tax impacts of …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"9. Defined Benefits (PPL) Certain net periodic defined benefit costs are applied to accounts that are further distributed among capital, expense, regulatory assets and regulatory liabilities, including certain costs allocated to applicable subsidiaries for plans sponsored by PPL Services and LKE. Following are the net periodic defined benefit costs (credits) of the plans sponsored by PPL and its subsidiaries for the periods ended September 30: Pension Benefits Three Months Nine Months 2025 2024 2025 2024 PPL Service cost $ 8 $ 9 $ 23 $ 26 Interest cost 46 45 138 137 Expected return on plan assets (72) (74) (215) (224) Amortization of: Prior service cost 1 2 Actuarial loss 4 3 13 8 Net periodic defined benefit costs (credits) $ (14) $ (16) $ (41) $ (51) Other Postretirement Benefits Three Months Nine Months 2025 2024 2025 2024 PPL Service cost $ 2 $ 2 $ 5 $ 5 Interest cost 8 8 23 22 Expected return on plan assets (7) (8) (22) (23) Amortization of: Prior service cost 1 1 Actuarial loss (1) (1) (3) (4) Net periodic defined benefit costs (credits) $ 2 $ 1 $ 4 $ 1 (All Registrants) The non-service cost components of net periodic defined benefit costs (credits) (interest cost, expected return on plan assets, amortization of prior service cost and amortization of actuarial gain and loss) are presented in ""Other Income (Expense) - net"" on the Statements of Income. See Note 12 for additional information." …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

"3. Revenue from Contracts with Customers (All Registrants) See Note 3 in the Registrants' 2024 Form 10-K for a discussion of the principal activities from which PPL Electric, LG&E and KU and PPLs Pennsylvania Regulated, Rhode Island Regulated, and Kentucky Regulated segments generate their revenues. The following tables reconcile ""Operating Revenues"" included in each Registrant's Statement of Income with revenues generated from contracts with customers for the periods ended September 30. 2025 Three Months PPL PPL Electric LG&E KU Operating Revenues (a)(b) $ 2,239 $ 786 $ 427 $ 530 Revenues derived from: Alternative revenue programs (c) 6 (2) 2 Other (d) (8) (4) (1) (1) Revenues from Contracts with Customers $ 2,237 $ 782 $ 424 $ 531 2024 Three Months PPL PPL Electric LG&E KU Operating Revenues (a)(b) $ 2,066 $ 716 $ 397 $ 509 Revenues derived from: Alternative revenue programs (c) 17 (3) 11 7 Other (d) (6) (4) (1) (1) Revenues from Contracts with Customers $ 2,077 $ 709 $ 407 $ 515 2025 Nine Months PPL PPL Electric LG&E KU Operating Revenues (a)(b) $ 6,768 $ 2,298 $ 1,310 $ 1,566 Revenues derived from: Alternative revenue programs (c) 75 9 (1) 3 Other (d) (20) (13) (3) (3) Revenues from Contracts with Customers $ 6,823 $ 2,294 $ 1,306 $ 1,566 2024 Nine Months PPL PPL Electric LG&E KU Operating Revenues (a)(b) $ 6,251 $ 2,159 $ 1,239 $ 1,498 Revenues derived from: Alternative revenue programs (c) 21 (14) 15 13 Other (d) (18) (12) (3) (3) Revenues from Co …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"2. Segment and Related Information (PPL) PPL is organized into three segments, broken down by geographic location: Kentucky Regulated, Pennsylvania Regulated and Rhode Island Regulated. The Kentucky Regulated segment primarily consists of the regulated electricity generation, transmission and distribution operations conducted by LG&E and KU, as well as LG&E's regulated transmission, distribution and sale of natural gas. The Pennsylvania Regulated segment consists of the regulated electricity transmission and distribution operations of PPL Electric. The Rhode Island Regulated segment consists of the regulated electricity transmission and distribution and natural gas distribution operations of RIE. ""Corporate and Other"" primarily consists of corporate level financing costs, certain unallocated costs and certain non-recoverable costs incurred in conjunction with the acquisition of RIE. ""Corporate and Other"" is presented to reconcile segment information to PPL's consolidated results and is not a reportable segment. The table below provides information about PPLs segments and includes the reconciliation to consolidated net income for the three months ended September 30, 2025: Kentucky Regulated Pennsylvania Regulated Rhode Island Regulated Total Operating Revenues from external customers (a) $ 944 $ 786 $ 509 $ 2,239 Reconciliation of revenue Corporate and Other revenues Total consolidated revenues $ 2,239 Less: Fuel 231 231 Energy purchases 23 224 173 420 Other opera …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"XX. Summary of Significant Accounting Policies (All Registrants) The following accounting policy disclosures represent updates to Note 1 in each Registrant's 2024 Form 10-K and should be read in conjunction with those disclosures. Restricted Cash and Cash Equivalents (PPL) Reconciliation of Cash, Cash Equivalents and Restricted Cash The following provides a reconciliation of Cash, Cash Equivalents and Restricted Cash reported within the Balance Sheets that sum to the total of the same amounts shown on the Statements of Cash Flows: PPL September 30, 2025 December 31, 2024 Cash and cash equivalents $ 1,102 $ 306 Restricted cash - current (a) 42 1 Total Cash, Cash Equivalents and Restricted Cash $ 1,144 $ 307 (a) Bank deposits and other cash equivalents that are restricted by agreement or that have been clearly designated for a specific purpose are classified as restricted cash. On the Balance Sheets, the current portion of restricted cash is included in ""Other current assets."""

SignificantAccountingPoliciesTextBlock