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Intangible Assets
 12 Months Ended
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS
INTANGIBLE ASSETS

As of December 31, 2016, intangible assets classified in Customer Intangibles and Other Deferred Charges on FirstEnergy’s Consolidated Balance Sheet, include the following:
 
 
Intangible Assets
 
Amortization Expense
 
 
 
 
 
 
 
 
Actual
 
Estimated
(In millions)
 
Gross
 
Accumulated Amortization
 
Net
 
2016
 
2017
 
2018
 
2019
 
2020
 
2021
 
Thereafter
NUG contracts(1)
 
$
124

 
$
31

 
$
93

 
$
5

 
$
5

 
$
5

 
$
5

 
$
5

 
$
5

 
$
68

OVEC(2)
 
54

 
48

 
6

 
2

 
1

 
1

 
—

 
—

 
—

 
4

Coal contracts(2)(3)(4)
 
556

 
544

 
12

 
55

 
—

 
—

 
—

 
—

 
—

 
—

FES customer contracts(5)
 
148

 
139

 
9

 
52

 
5

 
3

 
1

 
—

 
—

 
—

 
 
$
882

 
$
762

 
$
120

 
$
114

 
$
11

 
$
9

 
$
6

 
$
5

 
$
5

 
$
72


(1) 
NUG contracts are subject to regulatory accounting and their amortization does not impact earnings.
(2) 
Amortization expense excludes impairment charges related to intangible assets recognized in 2016, which totaled $92 million and are included in Impairment of Assets. See "Note 2, Asset Impairments" for further discussion.
(3) 
The coal contracts were recorded with a regulatory offset and the amortization does not impact earnings. Accordingly, the amortization expense for these coal contracts is excluded from table above.
(4) 
A gross amount of $40 million of coal contracts is related to FES. In June 2016, FES terminated a coal contract and the write-off is included in amortization expense in the table above.
(5) During 2016, FES recorded a pre-tax charge of $37 million associated with the termination of a customer contract, which is included in amortization expense in the table above.

FES acquired certain customer contract rights which were capitalized as intangible assets. These rights allow FES to supply electric generation to customers, and the recorded value is being amortized ratably over the term of the related contracts.