Dive Brief:

• The U.S. Surface Transportation Board (STB) has directed BNSF Railway Co. to submit a detailed description of its contingency plans to mitigate potential coal shortages for electric utility shippers, SNL Energy reports.
• An association of consumers of coal from western mines had asked regulators to force the railroad to speed deliveries—possibly using fines if necessary to ensure sufficient fuel deliveries for the winter. 
• Many utility stockpiles had reached low levels as coal deliveries were slowed by a lack of rail cars. But service is reportedly improving, and the STB's decision stopped short of directing the railway to file a plan addressing the issue.

Dive Insight:

Regulators have called on BNSF to provide additional information on its plans to reliably supply coal to utilities facing the winter season. But the STB stopped short of directing the railway to file a formal plan, possibly related to reports that deliveries are improving, SNL Energy reports.

"As BNSF works to address its coal transportation challenges, more specific information on its coal service contingency planning is necessary," STB said in a statement. "Among other actions described in today’s order, the board is also inviting coal stakeholders to submit status reports to the board so that the board can obtain a full range of perspectives regarding coal service."

SNL reports that deliveries may be improving, however, and a mild December helped strengthen some utilities' stocks. The railway pays close attention to utility customers when they fall below a 10-day stockpile of fuel.

In November the railway said it intended to spend $6 billion to expand and maintain its rail system in 2015 to meet growing demand.