FirstEnergy in an SEC filing disclosed that, in connection with the previously disclosed arbitration proceeding between FirstEnergy Generation, LLC (FG), a subsidiary of FirstEnergy Solutions Corp. (FES), and CSX Transportation, Inc. (CSX) and BNSF Railway Company (BNSF) concerning a long-term coal transportation contract, the liability hearing concluded on February 24, 2017.

On April 12, 2017, the arbitration panel, among other things, denied FG’s demand for declaratory judgment that force majeure (based on federal environmental rule changes) excused FG’s performance, and ruled that FG breached and repudiated the contract. The parties to this contract dispute are engaged in settlement discussions and CSX and BNSF have agreed in principle to resolve all claims in return for the payment by FG of $109 million, payable in three annual installments beginning on May 1, 2017, which would be guaranteed by FirstEnergy Corp. (FirstEnergy).  Upon completion of a definitive settlement agreement, all proceedings relating to this dispute will be dismissed.

Furthermore, FirstEnergy said in the filing that, "In addition, FG is subject to separate proceedings with BNSF and Norfolk Southern Corp. (NS) related to another long-term coal transportation contract. Although the proceedings are still in the early stages, the parties to this dispute are also engaged in settlement discussions. If the BNSF and NS dispute is not settled or definitive settlement agreements are not finalized with all the parties, the amount of damages owed to CSX, BNSF and NS could be material and may cause FES to seek protection under U.S. bankruptcy laws."