BGE sues maker of pump sealThe Baltimore Gas and Electric...

BUSINESS DIGEST

May 14, 1994

BGE sues maker of pump seal

The Baltimore Gas and Electric Co. is suing an Oregon company for $4 million for a allegedly defective reactor coolant pump seal that the utility claims prevented the reactivation of its Unit 1 reactor at the Calvert Cliffs nuclear power plant for a week.

The suit, filed Monday in Baltimore Circuit Court, is against Sulzer Bingham Pumps Inc., part of Bingham International of Portland. The utility is seeking compensation for replacement power it had to buy during the week the reactor was not operating.

The shutdown was during a two-year period when both of the plant's reactors were out of service for extended periods, resulting in replacement energy costs of $458 million. A case is pending before the Maryland Public Service Commission on whether those costs should be passed on to ratepayers.

If the utility is successful in the suit, the $4 million will returned to ratepayers, according to BGE spokesman Karl R. Neddenien.

Continental plans Boston flights

Continental Airlines plans to announce on Monday nonstop service from Baltimore-Washington International Airport to Boston as part of its CALite discount fare program.

The Baltimore-to-Boston route is the latest for the Houston-based airline, which has increased its number of daily flights at BWI from seven to 33 during the past year.

Only two airlines -- USAir and Northwest Express -- currently fly from BWI to Boston, despite the fact that it is one of the airport's most popular routes.

GM talks with Sprint on EDS sale

General Motors Corp. has renewed efforts to sell all or part of its Electronic Data Systems Corp. unit, and this time the lead suitor appears to be Sprint Corp., analysts say.

Talks between GM and Sprint, the U.S.'s third-largest provider of long-distance phone services, have gained intensity in recent weeks. The sale of EDS, which provides computer services to businesses and governments, could raise an estimated $20 billion for GM, which needs the money to finance a restructuring of its auto operations.

Caterpillar offers UAW concession

Caterpillar Inc. offered a concession to the United Auto Workers yesterday in an effort to restart stalled contract talks and end two years of labor strife, but a condition the company attached drew union fire.

The heavy-equipment maker said it would withdraw its last contract offer, a key demand of the union to resume talks for the 14,000 workers it represents at Caterpillar.

However, the company said its move was conditional on a union guarantee that, after a limited period of negotiations -- perhaps 30 days -- workers would be allowed to vote on whatever offer the company had on the table. That's a demand the union has refused in the past.

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