PPL CorpPPL
PPL Corp Leases Disclosure
(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-term lease cost | — | 6 | 6 | ||||||||||||||
| Total lease cost | $ | — | $ | 33 | $ | 26 | |||||||||||
| LG&E | |||||||||||||||||
| Lease cost: | |||||||||||||||||
| Operating lease cost | $ | 5 | $ | 6 | |||||||||||||
| Short-term lease cost | 1 | 1 | |||||||||||||||
| Total lease cost | $ | — | $ | 6 | $ | 7 | |||||||||||
| KU | |||||||||||||||||
| Lease cost: | |||||||||||||||||
| Operating lease cost | $ | 10 | $ | 9 | |||||||||||||
| Short-term lease cost | 1 | 2 | |||||||||||||||
| Total lease cost | $ | — | $ | 11 | $ | 11 | |||||||||||
The following table provides other key information related to the Registrants' leases at December 31:
| 2025 | 2024 | 2023 | |||||||||||||||
| PPL | |||||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
| Operating cash flows from finance leases | $ | — | — | $ | — | ||||||||||||
| Operating cash flows from operating leases | — | 25 | 26 | ||||||||||||||
| Financing cash flows from finance leases | — | 1 | — | ||||||||||||||
| Right-of-use asset obtained in exchange for new finance lease liabilities | — | 7 | — | ||||||||||||||
| Right-of-use asset obtained in exchange for new operating lease liabilities | — | 47 | 15 | ||||||||||||||
| LG&E | |||||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
| Operating cash flows from operating leases | $ | 6 | $ | 8 | |||||||||||||
| Right-of-use asset obtained in exchange for new operating lease liabilities | 6 | 4 | |||||||||||||||
| KU | |||||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
| Operating cash flows from operating leases | $ | 9 | $ | 12 | |||||||||||||
| Right-of-use asset obtained in exchange for new operating lease liabilities | 10 | 5 | |||||||||||||||
The following table provides the total future minimum rental payments for leases, as well as a reconciliation of these undiscounted cash flows to the lease liabilities recognized on the Balance Sheets as of December 31, 2025.
| PPL | LG&E | KU | |||||||||||||||||||||
| Operating leases | Finance leases | Operating leases | Operating leases | ||||||||||||||||||||
| 2024 | $ | — | $ | — | |||||||||||||||||||
| 2025 | — | — | |||||||||||||||||||||
| 2026 | — | — | |||||||||||||||||||||
| 2027 | — | — | |||||||||||||||||||||
| 2028 | — | — | |||||||||||||||||||||
| Thereafter | — | — | |||||||||||||||||||||
| Total | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Weighted-average discount rate | |||||||||||||||||||||||
| Weighted-average remaining lease term (in years) | |||||||||||||||||||||||
| Current lease liabilities (a) | $ | — | $ | — | |||||||||||||||||||
| Non-current lease liabilities (a) | — | — | |||||||||||||||||||||
| Right-of-use assets (b) | — | — | |||||||||||||||||||||
(a) Current lease liabilities are included in "Other Current Liabilities" on the Balance Sheets. Non-current lease liabilities are included in "Other deferred credits and noncurrent liabilities" on the Balance Sheets. The difference between the total future minimum lease payments and the recorded lease liabilities is due to the impact of discounting.
(b) Operating lease right-of-use assets are included in "Other noncurrent assets" and finance lease right-of-use assets are included in "Property, Plant and Equipment" on the Balance Sheets.
Lessor Transactions
Third parties leased land from LG&E and KU at certain generation plants to produce refined coal used to generate electricity. The leases were operating leases and expired in 2021. Payments were allocated among lease and non-lease components as stated in the agreements. Lease payments were fixed or determined based on the amount of refined coal used in electricity generation at the facility. Payments received were primarily recorded as a regulatory liability and amortized in accordance with regulatory approvals. There are certain leases in which RIE is the lessor. Revenue under such leases was immaterial for the year ended December 31, 2025.
The following table shows the lease income recognized for the years ended December 31:
| 2025 | 2024 | 2023 | |||||||||||||||
| PPL | $ | — | 4 | 6 | |||||||||||||
| LG&E | — | — | 2 | ||||||||||||||
| KU | — | — | — | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2023 | Feb 16, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 18, 2021 | |
| 2019 | Feb 14, 2020 | |
| 2018 | Feb 14, 2019 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 17, 2017 | |
| 2015 | Feb 19, 2016 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.