NEWS SUMMARY

Court Tells BGE to WaitThe state’s highest court yesterday said it decided to wait until July 20 to decide whether deregulation can be implemented in BGE’s territory. A lower appellate court issued a stay Friday, the day before deregulation was set to begin. The stay was issued in response to a motion from the Mid-Atlantic Power Supply Association. The power supply trade group had asked the Maryland Public Service Commission to review a deregulation-era settlement permitting BGE to discount residential electric rates while also recouping past operating costs — so-called stranded costs — from consumers. MPSA called the settlement noncompetitive. The court will review the stay and the stranded cost factor at the July 20 hearing.

Northrop Grumman PaysNorthrop Grumman Corp. has agreed to pay the United States more than $5.3 million to resolve allegations of violations of the Truth in Negotiations Act. The U.S. Attorney’s office said the charges stem from actions by the Westinghouse Electric Corp. Electronic Systems Group which Northrop acquired in 1996. The Westinghouse group was accused of submitting defective cost or pricing data to the government in connection with its proposal to manufacture two power supplies under F-16 radar system contracts with the Air Force.

Rolled Into 10The most sweeping restructuring of the state’s economic development programs took effect July 1 when the Maryland Department of Business and Economic Development streamlined its financing programs from 21 to 10. The consolidation makes the programs easier to navigate and understand for businesses wishing to make use of them, said DBED Secretary Richard C. Mike Lewin. The Financing Programs Consolidation Act of 2000 was passed in April.

Martek on Russell 3000Martek Biosciences Corp., of Columbia, is the newest addition to the Russell 3000 Index. Membership is determined by market capitalization rankings and style attributes. “We appreciate the recognition that Martek has gained by being included in the Russell 3000 Index,” said Martek CEO Henry Linsert Jr. “It should broaden the company’s exposure to investors.” Martek develops, manufactures and sells products from microalgae.

Pro Quarterback at UMABOakland Raiders Pro Bowl quarterback Rich Gannon and the University of Maryland Center for Celiac Research today launch a nationwide campaign to raise awareness of the disease. Gannon will debut a public service announcement he recorded with his 3-year-old daughter Danielle, who was diagnosed with celiac disease in 1998. People with celiac disease are unable to eat foods containing the protein gluten which is found in wheat and other grains.

Crestline RecapitalizesCrestline Capital Corp. closed a $92 million loan on eight of its 31 senior living communities, continuing its strategy of recapitalizing on those properties and using excess proceeds to invest in hotel management and ownership businesses, company officials said. The eight properties are located throughout the county, although none is in the Baltimore-Washington corridor. The company now has over $70 million of available capacity under its line of credit. Crestline Capital is one of the nation’s 20 largest hotel management companies through its wholly owned subsidiary, Crestline Hotels and Resorts. It is building the Baltimore-Inner Harbor Courtyard by Marriott at Inner Harbor East.

CoStar Expands ReachBethesda-based CoStar Group, a provider of information to the commercial real estate industry, has released nationally CoStar Exchange, an online marketplace for the buying and selling of commercial properties. With an unmatched level of independent, verified and highly secure information on more than 44,000 for-sale commercial properties throughout the United States, CoStar Exchange provides real estate professionals with knowledge they need to complete sale transactions. Already, 13 commercial real estate firms have signed up for the service.

Condor Sells SafariCondor Technology Solutions Inc. of Annapolis, a provider of interactive and e-business technology solutions, has sold its Safari Solutions product business to Allen Systems Group Inc., a software and services provider. Proceeds from the sale will be used to reduce debt and provide working capital. “This transaction will enable Condor to focus on its e-business solutions, the fastest growing segment of the company’s existing businesses,” said Kenn Hill, Condor’s chairman and CEO.

Orion Powers UpOrion Power MidWest, LP, a subsidiary of Orion Power Holdings Inc. of Baltimore, said it will repower the Brunot Island Power Plant, located on the Ohio River two miles from downtown Pittsburgh. The repowering will convert Brunot Island to an efficient, environmentally preferred combined cycle power plant fueled with natural gas. Brunot Island is a six-unit, oil-fired, simple-cycle peaking facility, which began operation in 1972. It has a net demonstrated capacity of 234 megawatts. Orion Power Holdings has more than $3 billion invested in 82 power plants with a total capacity of 5,227 megawatts.

Firehouse Commemorative VideoCollege Park-based Firehouse.Com, in partnership with New England Cable News, is producing a commemorative video of the “Worcester Six” memorial service, with profits benefiting the National Fallen Firefighters Foundation. Six Worcester, Mass., firefighters died Dec. 3 battling a cold storage warehouse blaze. They were memorialized days later at one of the largest memorial services in the history of the fire service. It was attended by an estimated 30,000 firefighters and civilians from around the world, including President Bill Clinton and Vice President Al Gore.

Hanger, NovaCare SettleHanger Orthopedic Group Inc. of Bethesda said it has reached a settlement with NAHC Inc. (formerly NovaCare Inc.) over issues related to the $25 million recently awarded to Hanger in a binding arbitration proceeding. The arbitration decision, rendered by KPMG LLP May 22, determined that NAHC owed Hanger $25,103,918 as a result of a shortfall in adjusted working capital in the orthotics and prosthetics business purchased by Hanger from NAHC last July

Calvert Goes Real TimeCalvert Group of Bethesda said the Calvert Social Index, a broad-based, rigorously constructed benchmark of large, U.S.-based socially responsible companies, is now being calculated real time and is being distributed by the Chicago Board of Trade to news agencies, financial services companies and brokerage firms. “The Calvert Social Index gives investors the opportunity to see how companies that have adopted sound corporate practices perform in the marketplace on a real time basis,” said Barbara J. Krumsiek, Calvert Group president and CEO. Calvert plans to add the real-time calculation to its Web site at www.calvert.com. The Calvert Social Index consists of 464 companies that are weighted on a market capitalization basis.

GE, JCPenney Do BusinessGaithersburg-based GE Global eXchange Services, a global business-to-business Internet commerce company, said it has been chosen by JCPenney to enable trading partners to comply with JCPenney’s supply chain e-commerce requirements. Compliance will result in significant efficiencies for the Texas-based retailer. Under the agreement, GE Global eXchange Services will deploy technology that allows trading partners to meet JCPenney’s e-commerce requirements whether their current business solution is based on desktop PC, Local Area Network or paper/fax/email technology.