PPL CorpPPL
PPL Corp Revenue Disclosure
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 will" customers of PPL Electric with no term contract and no minimum purchase commitment. Performance obligations are limited to the service requested and received to date. Accordingly, there is no unsatisfied performance obligation associated with PPL Electric's retail account contracts.
Certain customers have the option to obtain electricity from other suppliers where PPL Electric facilitates the delivery. In those circumstances, revenue is only recognized for providing delivery of the commodity to the customer.
Transmission Revenue
PPL Electric generates transmission revenues from a FERC-approved PJM Open Access Transmission Tariff. An annual revenue requirement for PPL Electric to provide transmission services is calculated using a formula-based rate. This revenue requirement is converted into a daily rate (dollars per day). PPL Electric satisfies its performance obligation to provide transmission services and revenue is recognized over time as transmission services are provided and consumed. This method of recognition fairly presents PPL Electric's transfer of transmission services as the daily rate is set by a FERC approved formula-based rate. PJM remits payment on a weekly basis.
PPL Electric's agreement to provide transmission services contains no minimum purchase commitment. The performance obligation is limited to the service requested and received to date. Accordingly, PPL Electric has no unsatisfied performance obligations.
(PPL)
Rhode Island Regulated Segment Revenues
The Rhode Island Regulated segment generates substantially all of its revenues from contracts with customers from RIE's regulated tariff-based transmission and distribution of electricity and regulated tariff-based distribution of natural gas.
Distribution Revenue
Distribution revenues are primarily from the sale of electricity, natural gas, and related services to retail customers. Distribution sales are regulated by the RIPUC, which is responsible for approving the rates and other terms of services as part of the rate making process. Natural gas and electric distribution revenues are derived from the regulated sale and distribution of electricity and natural gas to residential, commercial, and industrial customers within RIE's service territory under the tariff rates. The performance obligation related to distribution sales is to provide electricity and natural gas to customers on demand.
The performance obligation is satisfied over time because the customer simultaneously receives and consumes the electricity or natural gas as services are provided. RIE records revenues related to the distribution sales based upon the approved tariff rate and the volume delivered to the customers, which corresponds with the amount RIE has the right to invoice. Customers are typically billed monthly and outstanding amounts are normally due within 21 days of date of the bill.
Distribution revenue also includes estimated unbilled amounts, which represent the estimated amounts due from retail customers as a result of customer's bills being rendered throughout the month, rather than at the end of the month. Unbilled revenues are determined based on estimated unbilled sales volumes and then applying tariff rates to those volumes. Any difference between estimated and actual revenues is adjusted the following month when the previous unbilled estimate is reversed and actual billings occur. This method of recognition fairly presents RIE's transfer of electricity and natural gas to the customer as the amount recognized is based on actual and estimated volumes delivered and the tariff rate per unit of energy and any applicable fixed charges or regulatory mechanisms as approved by the respective regulatory body.
Distribution customers are "at will" customers of RIE with no term contract and no minimum purchase commitment. Performance obligations are limited to the service requested and received to date. Accordingly, there is no unsatisfied performance obligation associated with RIE's retail account contracts.
Certain customers have the option to obtain electricity or natural gas from other suppliers where RIE facilitates the delivery. In those circumstances, revenue is only recognized for providing delivery of the commodity to the customer.
Transmission Revenue
RIE's transmission services are regulated by the FERC and coordinated with ISO – New England (ISO-NE). As of January 1, 2023, RIE is a transmission operator. These revenues arise under tariff/rate agreements and are collected primarily from RIE's distribution customers. The revenue is recognized over time as transmission services are provided and consumed. This method of recognition fairly presents RIE's transfer of transmission services as the daily rate is set by a FERC-approved formula-based rate.
RIE's agreement to provide transmission services contains no minimum purchase commitment. The performance obligation is limited to the service requested and received to date. Accordingly, RIE has no unsatisfied performance obligations.
(PPL, LG&E and KU)
Kentucky Regulated Segment Revenue
The Kentucky Regulated Segment generates substantially all of its revenues from contracts with customers from LG&E's and KU's regulated tariff-based sales of electricity and LG&E's regulated tariff-based sales of natural gas.
LG&E and KU are engaged in the generation, transmission, distribution and sale of electricity in Kentucky and, in KU's case, Virginia. LG&E also engages in the distribution and sale of natural gas in Kentucky. Revenue from these activities is generated from tariffs approved by applicable regulatory authorities including the FERC, KPSC and VSCC. LG&E and KU satisfy their performance obligations upon LG&E's and KU's delivery of electricity and LG&E's delivery of natural gas to customers. This revenue is recognized over time as the customer simultaneously receives and consumes the benefits provided by LG&E and KU. The amount of revenue recognized is the billed volume of electricity or natural gas delivered multiplied by a tariff rate per-unit of energy, plus any applicable fixed charges or additional regulatory mechanisms. Customers are billed monthly and outstanding amounts are typically due within 22 days of the date of the bill. Additionally, unbilled revenues are recognized as a result of customers' bills being rendered throughout the month, rather than at the end of the month. Unbilled revenues for a month are calculated by multiplying an estimate of unbilled kWh or Mcf delivered but not yet billed by the estimated average cents per kWh or Mcf. Any difference between estimated and actual revenues is adjusted the following month when the previous unbilled estimate is reversed and actual billings occur. This method of recognition fairly presents LG&E's and KU's transfer of electricity and LG&E's transfer of natural gas to the customer as the amount recognized is based on actual and estimated volumes delivered and the tariff rate per-unit of energy and any applicable fixed charges or regulatory mechanisms as set by the respective regulatory body.
LG&E's and KU's customers generally have no minimum purchase commitment. Performance obligations are limited to the service requested and received to date. Accordingly, there is no unsatisfied performance obligation associated with these customers.
(All Registrants)
The following table reconciles "Operating Revenues" included in each Registrant's Statement of Income with revenues generated from contracts with customers for the years ended December 31:
| 2025 | |||||||||||||||||||||||
| PPL | PPL Electric | LG&E | KU | ||||||||||||||||||||
| Operating Revenues (a)(b) | $ | 9,042 | $ | 3,113 | $ | 1,748 | $ | 2,064 | |||||||||||||||
| Revenues derived from: | |||||||||||||||||||||||
| Alternative revenue programs (c) | 153 | 21 | (2) | — | |||||||||||||||||||
| Other (d) | (25) | (17) | (4) | (4) | |||||||||||||||||||
| Revenues from Contracts with Customers | $ | 9,170 | $ | 3,117 | $ | 1,742 | $ | 2,060 | |||||||||||||||
| 2024 | |||||||||||||||||||||||
| PPL | PPL Electric | LG&E | KU | ||||||||||||||||||||
| Operating Revenues (a)(b) | $ | 8,462 | $ | 2,876 | $ | 1,648 | $ | 1,964 | |||||||||||||||
| Revenues derived from: | |||||||||||||||||||||||
| Alternative revenue programs (c) | 5 | (19) | 13 | 16 | |||||||||||||||||||
| Other (d) | (23) | (15) | (4) | (4) | |||||||||||||||||||
| Revenues from Contracts with Customers | $ | 8,444 | $ | 2,842 | $ | 1,657 | $ | 1,976 | |||||||||||||||
| 2023 | |||||||||||||||||||||||
| PPL | PPL Electric | LG&E | KU | ||||||||||||||||||||
| Operating Revenues (a)(b) | $ | 8,312 | $ | 3,008 | $ | 1,613 | $ | 1,884 | |||||||||||||||
| Revenues derived from: | |||||||||||||||||||||||
| Alternative revenue programs (c) | 1 | 5 | (1) | (5) | |||||||||||||||||||
| Other (d) | (23) | (15) | (4) | (4) | |||||||||||||||||||
| Revenues from Contracts with Customers | $ | 8,290 | $ | 2,998 | $ | 1,608 | $ | 1,875 | |||||||||||||||
(a)PPL includes $2,168 million, $2,024 million and $1,851 million for the twelve months ended December 31, 2025, 2024, and 2023 of revenues from external customers reported by the Rhode Island Regulated segment. PPL Electric represents revenues from external customers reported by the Pennsylvania Regulated segment and LG&E and KU, net of intercompany power sales and transmission revenues, represent revenues from external customers reported by the Kentucky Regulated segment. See Note 2 for additional information.
(b)PPL's transition services agreement associated with the RIE acquisition ended in the third quarter of 2024. In conjunction with the completion of the agreement, PPL conformed the presentation of RIE's and the Rhode Island Regulated segment's net metering charges with the presentation of the other segments, resulting in an increase in "Operating Revenues" and a corresponding increase in "Energy purchases" beginning on January 1, 2024. For the year ended December 31, 2023, $146 million of net metering was presented as a reduction of "Operating Revenues" on PPL's Statement of Income.
(c)This line item shows the over/under collection of rate mechanisms deemed alternative revenue programs with over-collections of revenue shown as positive amounts and under collections as negative amounts.
(d)Represents additional revenues outside the scope of revenues from contracts with customers such as leases and other miscellaneous revenues.
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 | $ | 168 | $ | 22 | $ | 46 | $ | — | $ | 1,875 | |||||||||||||||||||||||||||||||
(a)Primarily includes revenues from pole attachments, street lighting, other public authorities and other non-core businesses. For the years ended December 31, 2023, the Rhode Island Regulated segment primarily includes open access tariff revenues, which are calculated on combined customer classes.
(b)Includes wholesale power and transmission revenues. LG&E and KU amounts include intercompany power sales and transmission revenues, which are eliminated upon consolidation at PPL.
(c)PPL's transition services agreement associated with the RIE acquisition ended in the third quarter of 2024. In conjunction with the completion of the agreement, PPL disaggregated the 2024 revenues of the Rhode Island Regulated segment in a manner consistent with that of its other segments. This resulted in certain customer revenues for the Rhode Island Regulated segment, which were previously presented in the "Other" category, being presented in the "Residential", "Commercial" or "Industrial" customer classes beginning on January 1, 2024. Applying the previous methodology to 2025 revenues would result in $534 million of Residential, $409 million of Commercial and $83 million of Industrial for the Rhode Island Regulated segment being presented as "Other" for the year ended December 31, 2025. Applying the previous methodology to 2024 revenues would result in $469 million of Residential, $372 million of Commercial and $88 million of Industrial for the Rhode Island Regulated segment being presented as "Other" for the year ended December 31, 2024.
As discussed in Note 2, PPL segments its business by geographic location. Revenues from external customers for each segment/geographic location are reconciled to revenues from contracts with customers in the footnotes to the tables above. PPL Electric's revenues from contracts with customers are further disaggregated by distribution and transmission as indicated in the above tables.
Contract receivables from customers are primarily included in "Accounts receivable - Customer" and "Unbilled revenues" on the Balance Sheets.
The following table shows the accounts receivable and unbilled revenues balances that were impaired for the year ended December 31:
| 2025 | 2024 | 2023 | |||||||||||||||
| PPL (a) | $ | 101 | $ | 103 | $ | 79 | |||||||||||
| PPL Electric (a) | 32 | 52 | 47 | ||||||||||||||
| LG&E | 4 | 4 | 4 | ||||||||||||||
| KU | 5 | 4 | 2 | ||||||||||||||
(a)2024 and 2023 includes amounts impaired related to PPL Electric's billing issues. See Note 7 in PPL's 2024 Form 10-K for additional information.
Contract liabilities result from recording contractual billings in advance for customer attachments to the Registrants' infrastructure and payments received in excess of revenues earned to date. Advanced billings for customer attachments are recognized as revenue ratably over the billing period. Payments received in excess of revenues earned to date are recognized as revenue as services are delivered in subsequent periods. The Registrants' contract liabilities are not material at December 31, 2025, 2024 and 2023.
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 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.