The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Thursday, May 2, 1996                  TAG: 9605020566
SECTION: BUSINESS                 PAGE: D1   EDITION: FINAL 
                                             LENGTH: Medium:   51 lines

DAILY DIGEST

Peninsula yard wins $15.6 million contract

The Navy gave Newport News Shipbuilding a $15.6 million contract to develop an electric drive for surface ships. The big Peninsula shipyard is the lead contractor in a joint venture on the drive with two other companies. The drive will actually be built by Kaman Electromagnetics Corp. in Hudson, Mass. Northrop Grumman Marine Systems will also help. The drive, known as an axial field permanent magnetic propulsion system, is patented by the yard and Kaman. (Staff) CompuServe teaming up with Weather Channel

The Weather Channel will soon provide on-line weather information to CompuServe Inc.'s new WOW! consumer on-line service. CompuServe and the Weather Channel announced the partnership Wednesday. The Weather Channel is a subsidiary of Norfolk-based Landmark Communications Inc., parent of The Virginian-Pilot. The Weather Channel will provide WOW! with satellite images and regional radar summaries, as well as five-day national and local forecasts in 800 cities. The branded service will be updated 24 hours a day. (Staff) TCI increases rates on most popular service

Tele-Communications Inc. said it will increase monthly rates for customers using its most popular service, expanded basic cable TV, by 15 percent June 1 to cover inflation and increased costs for programming. The monthly rate for the service will rise from $23.48 to $27. TCI said the new rate will cover two added channels, ESPN 2 and Home & Garden TV, bringing the total number of channels included in that package to 47. TCI, the nation's largest cable operator, has been increasing rates nationwide. It has agreed to sell its Chesapeake system to Cox Communications Inc. (Staff) New players to enter Va. local phone market

By the beginning of 1997, some new players may be handling local telephone service in parts of Virginia. The State Corporation Commission on Tuesday approved MSF Intelnet and MCImetro to provide local phone service. The certification of the companies is the first step in opening local phone service to competition. MFS hopes to begin carrying local telephone calls for business customers in Richmond and Northern Virginia by the end of the year. MCImetro is the local telephone arm of MCI Communications Corp., the country's second-largest long-distance carrier. The company expects to have a network built to carry local calls within 18 months. (Associated Press) by CNB