The State Corporation Commission endorsed construction of two portions of the 500-kilovolt transmission line, proposed jointly by the Trans-Allegheny Interstate Line Co. and Dominion Virginia Power. In its unanimous ruling, the SCC concluded the proposed power line meets standards set by Virginia law and must be approved. West Virginia regulators have approved that state's portion of the line; Pennsylvania has yet to act. The SCC said work on the $243 million Virginia portion of the line could not begin until all the states have given it the green light.

Hampton Roads

General Dynamics gets $13.5M deal

General Dynamics Advanced Information Systems will update defense software and provide engineering services for the Navy through a contract worth up to $13.5 million, the company announced Tuesday.

General Dynamics, which is based in Falls Church, will perform the work in Virginia Beach and Fair Lakes for the Navy's Maritime Integrated Air and Missile Defense Planning Systems, according to a news release. Work is to be completed by July 2010.

The software updates will enable the Navy to better "address new threat and weapons characteristics" and overcome hardware obsolescence issues, according to the release.

- Kathy Adams, The Pilot

nation

Home Heating costs to rise, agency says

Heating U.S. homes with oil this winter will cost a painful $450 more than a year ago.

Even as oil prices are plummeting and plenty of natural gas is going into storage, people should brace for higher heating bills "across the board" no matter what fuel is used or region of the country, said Howard Gruenspecht, acting chief of the federal Energy Information Administration.

But fuel-oil users will experience the biggest hit with an expected heating bill of $2,388 on average for the October-March heating season, or 23 percent higher than what it cost last winter.

The price of natural gas will increase an average of 18 percent, or $1,010 over the heating season - about $155 more than last winter. People who heat with propane or electricity will see a 10 to 11 percent increase in costs, the agency said.

Circuit City seeks input for improving

RICHMOND | Circuit City Stores Inc. is working with advisers to determine how to substantially improve the nation's No. 2 consumer electronic retailer's operating and financial performance.

The move is part of the company's announcement last week that it has launched a comprehensive review in order to operate as a standalone business while it continues to explore strategic alternatives.

Circuit City spokesman Bill Cimino said that in addition to its previously announced plans to suspend store openings beginning in fiscal 2010, some of the 16 to 26 openings planned for fiscal 2009 also are on hold.

Web ad sales dip from prior quarter

U.S. Internet advertising revenue dipped slightly in the second quarter from the previous three-month period, which likely is a ripple effect from the bad economy given that prior to 2008 the market had seen several consecutive quarters of increases.

According to a report released Tuesday by the Interactive Advertising Bureau and PricewaterhouseCoopers LLP, online advertising revenue totaled

$5.7 billion in the second quarter.

That marked a significant increase from $5.1 billion in the same quarter in 2007. But it fell from the $5.8 billion reported for the first quarter of this year.

Anheuser-Busch reaches labor deal

Anheuser-Busch Cos. Inc. said it has reached a tentative labor deal that covers more than 5,000 Teamsters who work at the company's 12 breweries, including one in James City County.

The five-year contract recommended for ratification by the International Brotherhood of Teamsters, is expected to be voted on in November.

The deal includes a renewal of the St. Louis-based company's contractual commitment to keep the dozen facilities open for the span of the contract, if union workers approve the contract during the first round of voting.

Anheuser-Busch, the nation's largest brewer, also agreed to a 15 percent wage increase over the five-year contract.

The agreement, if ratified, will

remain in place once the brewer completes its merger with Belgian brewer InBev SA.

- From Pilot and wire reports Alcoa Inc.

52% decrease

One of the world's largest aluminum producers on Tuesday reported a 52 percent drop in third-quarter profits. Alcoa, the first component of the Dow Jones industrial average to report earnings, said results were hurt by sharply lower aluminum prices and weaker demand. It had earnings of $268 million compared with $555 million a year ago. Revenue edged down 2 percent to $7.23 billion.

Safeway Inc.

3% increase

Higher sales at its gas stations and upscale stores helped boost grocer Safeway Inc.'s profit nearly 3 percent in its third fiscal quarter. The nation's second-biggest grocery chain said its profit rose to $199.7 million, up from $194.6 million last year. The results sent Safeway shares up nearly 5 percent Tuesday to close at $22.85. Safeway's sales rose nearly 4 percent to $10.2 billion.

Yum Brands Inc.

5% increase

The fast-food company said its profit grew by 5 percent as surging sales in its operations in China offset a sharp decline in U.S. results. The parent company of Taco Bell, KFC and Pizza Hut reported worldwide same-store sales growth of 3 percent. It said net income rose to $282 million compared with $270 million a year ago. Revenue rose 11 percent to $2.8 billion.

- From wire reports

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