Agency calls for 7.8% cut in auto insurance rates
THE REGION
The State Rating Bureau took the middle road on next year's auto insurance rates, calling for average premium levels nearly halfway between those recommended by the industry and Attorney General Thomas F. Reilly. The bureau, a unit inside the Division of Insurance, recommended a 7.8 percent rate cut, which compares to a 0.1 percent reduction sought by the industry and the 18 percent cut requested by Reilly. The bureau sided more with the industry in forecasting future claims losses, saying last year's steep decline in payouts was somewhat of an aberration. (Bruce Mohl)
Power plant union reaches tentative contract accord
The union representing 47 workers at an Everett electric power plant reached a tentative contract settlement that averts a strike threatened to begin tonight. Members of the Utility Workers Union of America Local 369 who work at the Mystic 7 plant will vote Oct. 7 on ratifying the new contract, which offers a 14.5 percent pay increase over five years and benefit and work rule improvements that Local 369 president Gary P. Sullivan called ''fair and just." Mystic 7, a former Boston Edison Co. plant, is now owned by Boston Generating Power and Services Inc. (Peter J. Howe)
Blaming fuel costs, airline to cancel 15 round trips
Blaming the soaring cost of jet fuel, American Airlines said it is canceling 15 daily round trips this month out of its two main hubs, Chicago O'Hare and Dallas/Fort Worth International Airports. The service reductions slated for Oct. 5-29 do not affect Boston's Logan International Airport, where American is the biggest airline by passenger volume. American said jet fuel prices have soared 91 percent in the last year, including a 40 percent jump since late August after hurricanes Katrina and Rita. Delta Air Lines said it is canceling an unspecified number of flights, too, and along with Continental Airlines raising some fares by $20 because of soaring fuel costs. (Peter J. Howe)
THE NATION
Acting FDA chief to take leave from cancer institute
Dr. Andrew von Eschenbach said he will take a leave of absence from the National Cancer Institute to give his undivided attention to serving as acting commissioner of the Food and Drug Administration. President Bush named von Eschenbach, the cancer institute's director, as interim head of the drug regulatory agency Sept. 23, after FDA commissioner Lester Crawford resigned. The appointment triggered bipartisan concern over whether the dual roles for von Eschenbach raised the appearance of a conflict of interest. The FDA sometimes approves drugs tested in trials run by the cancer institute. He had pledged to refrain from FDA activities that could pose a conflict of interest. (Diedtra Henderson)
Etc.
General Motors is ending its employee discount incentive, which let all buyers pay the employee price for vehicles. The promotion was scheduled to end yesterday at the close of business for each dealer, a GM spokeswoman said . . . Underwriters for Lexington-based Predix Pharmaceuticals Holdings set the terms of the initial public offering at 5 million common shares, with an estimated price range of $10 to $12 a share . . . White Mountains Insurance Group, a Bermuda-based insurer with offices in Hanover, N.H., said Hurricane Rita may cost it about $15 million, pushing company expenses from Gulf Coast storms as high as $215 million . . . Shares of First Marblehead Corp. rose 11.2 percent to $25.40 after the student loan firm disclosed plans to buy back 5 million shares. The buyback comes two days after chief executive Daniel Meyers quit over an ethics violation that sent shares down more than 17 percent . . . Google Inc. cofounder Larry Page filed to sell 1.2 million shares worth $370 million, pushing his sales to more than $1 billion since the IPO last year. (Wire services)
