TOP 10 STORIES / Dec. 11-15

1 Energy Relief for California: The Clinton administration dramatically stepped up its role in the state’s dysfunctional electricity market, ordering power producers across the West to send electrons this way to help stave off the threat of blackouts. The emergency order from Energy Secretary Bill Richardson came after out-of-state power producers refused to sell into the state market, citing the growing debts of California utilities and their ability to pay their bills. When Richardson threatened to take action, the producers relented, and the prospect of the first-ever statewide hourlong blackouts was averted. Separately, the Federal Energy Regulatory Commission imposed a temporary, partial cap on energy prices in the state as part of a plan to fix a deregulated market the commission chairman called “a disaster in its application.” (A Times Staff Writer)

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2 Megamerger Moves Forward: America Online Inc. and Time Warner Inc. squeaked past the toughest remaining regulatory hurdle to their planned merger, but only after agreeing to a set of government-imposed conditions designed to prevent the combined company from monopolizing the Internet. The consent decree between the Federal Trade Commission and the two companies is expected to serve as a blueprint for future marriages between entertainment and technology firms and will help usher in a new wave of consumer technologies, particularly interactive television and high-speed Internet access. The agreement included several surprisingly tough conditions, such as a promise to open Time Warner’s high-speed cable lines to at least three AOL rivals and the appointment of a special monitor to ensure the new company complies with the FTC order. Next step: the Federal Communications Commission, which is expecting to wrap up its review by year-end. (Edmund Sanders)

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3 GM Drops Oldsmobile, Slashes Jobs: General Motors Corp. finally took a painful step that investors and Wall Street had long urged the behemoth to do: It axed the 103-year-old Oldsmobile division. GM also said it plans to eliminate 6,600 white-collar jobs in North America and Europe, where its operations are losing money. Olds’ sales have slumped since its heyday in 1985, and no amount of overhauling the products and marketing to appeal more to younger people could save the oldest remaining automotive marque. GM is left with seven domestic brands and says it will expand the Saturn division to attract import-minded young buyers. In a surprise move, GM also hired John Devine, former chief financial officer of Ford, as its new CFO, saying his experience and reputation on Wall Street should help boost GM’s share value. (Terril Yue Jones)

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4 Hospital Firm Pleads Guilty to Fraud: The former Columbia/HCA Healthcare Corp. agreed to plead guilty to 14 charges of criminal conduct involving overbilling the Medicare program, in the largest government fraud settlement ever reached by the Justice Department. The company, now known as HCA--The Healthcare Co., will pay more than $840 million in fines, civil penalties and damages in settling the case. None of the company’s executives faces prison sentences under the criminal plea bargain. Atty. Gen. Janet Reno said the financial penalties were “the most effective way” to prevent a recurrence of corporate fraud. HCA said it is continuing to work with the government to resolve remaining allegations. (Robert L. Jackson)

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5 State’s Economy on a Roll: Even if the nation falls into a mild recession next year, the still-hot California economy should suffer nothing worse than a moderate slowdown. That’s the conclusion of leading California analysts, including economists from UCLA, Cal State Fullerton and Cal State Long Beach, who recently have released or updated forecasts for 2001. The most bearish forecast came from UCLA, which predicted a mild midyear recession for the nation and projected that California’s jobless rate would climb from an average of 4.9% in 2000--the lowest level since 1969--to 5.4% next year. However, state officials reported that California’s jobless rate held steady at 4.8% during November, while Los Angeles County’s jobless level fell to 5%, which was down from 5.5% in October and the lowest on record for the area. (Stuart Silverstein)

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6 Disney Takes New Tack for Latino Moviegoers: Walt Disney Co. released both English and dubbed-Spanish versions of its new animated movie “The Emperor’s New Groove” in major multiplexes across the Southland as part of a new effort to attract the Latino moviegoing audience. Other studios are watching the experiment with deep skepticism. While acknowledging that Latinos are the fastest-growing moviegoing segment, they’re doubtful that there is a separate and viable Spanish-language business. (Times Staff Writers)

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7 NBC Replaces Entertainment Chief: NBC ended months of speculation by firing NBC Entertainment President Garth Ancier, but still surprised Hollywood by naming Jeff Zucker--executive producer of the network’s popular “Today” show--to replace him. Zucker, 36, has long been considered a network wunderkind but comes to the assignment with no background in entertainment. NBC officials said Ancier, 43, was not “a good fit” with the position. General Electric Co.-owned NBC is the top-rated network in prime time among the choice group of adults ages 18 to 49, but most of that success is attributable to series introduced before Ancier’s arrival in May 1999. This fall’s new NBC programs have largely failed to take hold. (Brian Lowry)

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8 Germany Alters Nazi-Era Retail Laws: The German government kicked another brick out of the wall shielding retailers from competition by revoking a Nazi-era law prohibiting discounts, rebates and lifetime guarantees. The change reflects a drive by the 2-year-old center-left leadership to improve the lot of the consumer and to drag overprotected shop owners and department store chains into the Internet era. Wal-Mart Stores Inc. and other U.S. retailers have run afoul of the laws, which were enacted during the 1930s as German tradesmen sought legal protection against competition from Jewish businesspeople. (Carol J. Williams)

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9 Leading Net Entertainment Sites to Merge: Shockwave.com and AtomFilms agreed to combine their operations in a deal that reflects the mounting consolidation pressure on companies trying to build online audiences for short films and animations. The two companies have attracted millions of viewers, but also lost millions of dollars, in an online sector that has seen an exodus of competitors and willing investors in recent months. (Greg Miller)

10 Belmont Property a Developer’s Dream: Real estate observers took note when the Los Angeles Board of Education gave Supt. Roy Romer approval to explore several solutions to the Belmont Learning Complex fiasco, including selling the 35-acre property. Concerns about explosive methane gas and toxins that halted development of the high school won’t necessarily scare off private developers, many of whom have expertise in cleaning up environmental problems, industry observers said. The Belmont property just west of downtown Los Angeles offers private investors the rare opportunity to own a large, centrally located property with downtown views and visibility from two major freeways, they noted. Potential uses include high-density housing, a shopping center and a mixed-use industrial and office park. (Jesus Sanchez)

In Other News:

Microsoft Corp. will pay $97 million to settle a federal lawsuit filed by employees who said the software giant classified them as “temporary” workers for years to deny them standard employee benefits. . . . El Segundo-based Merisel said it would leave the computer-hardware distribution business and lay off 200 employees, or 25% of its work force, in an effort to stem continuing losses. . . . Six Flags Magic Mountain plans to build three roller coasters next year in a bid to wrest the title of the world’s largest roller coaster park from the Cedar Point amusement park in Sandusky, Ohio.

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* These and additional stories from the last week are available at https://www.latimes.com/business, divided by category. Click on “Money & Investing,” “Entertainment Business” or other topics.

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* Please see Monday’s Business section for a preview of this week’s events.

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Microsoft Plunges

Microsoft Corp. joined a growing number of companies in warning that its earnings would miss analyst forecasts in the latest quarter, pulling its shares down 11% on Friday. The announcement prompted a sell-off of other tech companies, helping to bring Nasdaq down 75.24 points to close at 2,635.27. Microsoft also contributed to the 240.03-point decline in the Dow, to 10,434.96.

Microsoft Plunges, Los Angeles Times