if that is under litigation, the methodology that cpuc is under litigation. are we involved in that litigation? >> yes. >> are we making the case that they pg&e should be obligated to assume whatever energy contracts are freed up by virtue of our default? >> that is one of the points we made. >> one of the points you made or one of the points that was negotiated? >> one of the points we made in litigation that is being considered. this point came up as noting that the contract is contingent on a few things. even after final contract is negotiated, assuming this entity -- the final contract we bring that this -- if this body approves that, it is still not done. the next -- we will put into this contract are some terms that allow the general manager the authority to determine to execute that contract. the types of things to examine well-being of the outcome -- will be the outcome if there is any regulatory decision that may happen between now and then. this is potentially one of them. another is the final -- market prices are [unintelligible] for 4.5 years. the

cpuc commissioners and employees paid for the memorial themselves. and tonight at 6:00 i talked with a family still struggling with the fear and pain one year after the accident. cheryl? >> thank you very much. and there is a ceremony in remembrance of the disaster tomorrow. we'll have live coverage and will stream it for you from 6:00 to 6:30 p.m. >> and the court appearance of a union city woman expected in the death of a missing nursing student michelle lee postponed today because she's pregnant and needs medical clearance. she was taken to the infirm mirrory for a doctor's appointment pertain together pregnancy. she was arrested tuesday in connection with the disappearance of the 26-year-old lee last seen in may leaving kaiser medical center, police say they found lee's blood in esteban's car, as well as her dna on one of her shoes. >> president obama just finished a plan to put millions back to work. >> i am sending this congress a plan that you should pass right away. it's called american jobs act. there should be nothing controversial about th

if that is under litigation, the methodology that cpuc is under litigation. are we involved in that litigation? >> yes. >> are we making the case that they pg&e should be obligated to assume whatever energy contracts are freed up by virtue of our default? >> that is one of the points we made. >> one of the points you made or one of the points that was negotiated? >> one of the points we made in litigation that is being considered. this point came up as noting that the contract is contingent on a few things. even after final

the cpuc has been moving very slowly on this. it is an open decision for them to make, how you do the method for calculating what that bond amount should be. that may require an appropriation to cover. we have been aggressive in those proceedings and are continuing to push the commission to try to make some sort of decision there. also, we talk about the termination provision. last is that there is the -- we have been given indicative prices from shell as we go along with after the contract is approved by the board of supervisors and signed by the mayor, we are thinking the contract would have -- it will specify terms under which the general manager of the sfpuc may execute the contract, and one of those would be to make sure there are no favorable regulatory decisions, and the other would be that the pricing from shell is x or below to make sure it matches what we are forecasting for prices. quickly, on timeline, here we are almost in august. on tuesday, we presented to our commission. the full package i just went through here,

this is something that has been litigated at the cpuc and still remains in question. >> when you say bond, marin tried to obtain a bond and nobody sold it. it is cash? >> it is hard to -- it would be some type of insurance. as a city where are thinking we might be able to self-insure. it could go to an insurance broker and buy an insurance instrument from them. marin could not find an agent that knew how to quantify that risk and was only willing to sell it to them for the full cost, a cash bond. the amounts of money that have been thrown around are quite small. it would be fine to go ahead and appropriate it. we do not know how large it may end up being. the current amount is $100,000. we have that on deposit. >> if we fail here and the customers we signed up, it could be up to 130,000. it could grow to 230,000. we default or we cannot continue with those discussions, it would not cost more than 100 grand? >> power prices are low and there would prefer to have customers go back. the amount, we are figuring out calculations is 100,000. >> there have been other numbers offer. >> this

as i have said before, especially with cpuc's intention that there is important. whatever this package is, it comes back to the commission for a go or final no go. i hope that is helpful. president vietor: thank you. >> the board is scheduled to approve that -- that is my point , it is not scheduled. there is some question of whether it might be. secondly, the other issue is, what contact have we had with the rate fairness board that is part of our organization? >> we have not been setting -- >> we have briefed the rate fairness board on the state of the hetch hetchy enterprises' long-term sustainability concern. we have gone through the customs service -- cost of service and all the rage you have developed. that would have been last winter. what is next up for the rate fairness board, after the general terms of the term sheet and a green light from this body would be to update them on nine months of activity for the fund, tell them the terms here, and then go through the average bill impacts as well and the financial pro formas. that would take a process of 60 da

pg&e does d.not perform a test cpuc was expecting but commissioners believe tests are adequate. >> i would have preferred this one is coming in squeaky clean. but at this point, and i'm reasonably satisfied. >> this is testing small segments in a facility in the middle of nowhere. a compressor station. this cannot occur when you're testing large pipeline segments close to urban centers. >> we won't request cpuc raise that pressure to normal levels unless confident that it was safe to do so. >> the commission will vote in about two weeks. after that, will decide if it's necessary to go through this process again for the next dozen or so lines and pressure was cut after san bruno. abc 7 news. >> and still head here tonight at 6:00 the fund raising drive behind the america's cup race, what could happen if organizers can't come wupt money in time. >> and one woman who was too close for comfort. >> and extended service contracts offer piece of mind. is that worth money? i'm michael finney with an answer to that coming up on 7 on your side. >> and we're live on the green and gold carpet to

this new process was ordered by the cpuc after the san bruno explosion revealed numerous deficiencies in operations. today's hearing showed there were once again problems in the process with miscommunication about which tests could be done. commissioners now want to review the testimony and evidence. >> i would have much preferred that this first one come in squeaky clean with no wrinkles. and at this point, i'm subject to follow up and unreasonablely satisfied these were minor things the lines were tested at far above the pressure that we would be expected to encounter. >> won't request cpuc rate that a normal normal. >> and a the commission swril to vote and then, interestingly, the cpuc will have to decide if they want to continue with the process and live in san bruno abc 7 news. >> tomorrow morning, city of san bruno will hold a ceremony to mark the closure of a huge crater. and pg&e crews will take over the job of filling in homes starting tuesday after the noochbl the process is expected to take about three weeks. >> and bart citizens review board wants know why the investigati

as i have said before, especially with cpuc's intention that there is important. whatever this package is, it comes back to the commission for a go or final no go. i hope that is helpful. president vietor: thank you. >> the board is scheduled to approve that -- that is my point , it is not scheduled. there is some question of whether it might be. secondly, the other issue is, what contact have we had with the rate fairness board that is part of our organization? >> we have not been setting -- >> we have

i am hoping also we can use the cpucs however long they take in their process to our advantage to look the marketing capone and all of these components of the program and to continue this discussion so that we are by the time we have a contract ready to be signed, which i assume is based on cpuc's timeline that we are really ready to go with a complete understanding of all of the multiple components of the program. >> i am looking at how the item is worded. it does say that a general manager should continue to work on the cca program, but what i don't think is to submit the term sheet to the board of supervisors because there are too many unanswered questions. and i think that would be irresponsible of us to do so. in the form it is in now. >> do you have specific changes or comments? >> you don't like the second result. the reason that it is there is that should we go forward with this, the contract would have to come through both this commission and the board. so, do you give them a chance before the contract is finalized to have a discussion like you have had today, or do you wait u

. >> cpuc didn't escape blame either. ntsb says the regulator put blind trust in pg&e instead of protecting the public. pg&e failed. what about cpuc. were they asleep at the switch? >> absolutely they were asleep at the switch. they were a rubberstamp regulator. and it was clear by the nature of the kinds of audits that they did. they were desk audits, they were not in the field. they basically allowed pg&e to operate with its various plans in place that, frankly, couldn't hold water. >> a lot of recommendations by the ntsb. obviously many years before. they were recommendation that's weren't followed. >> among the ntsb recommendations -- require utilities to disclose details about their gas lines to emergency response agencies, and to equip their own crews with technology that can pinpoint the location of any leaks or line breaks. all part of a long list to improve the nation's pipeline safety and all useless unless they're put in place. >> that was vicky nguyen reporting. since 2002 there have been 23 incidents nationwi

i think that the cpuc will recognize not only with flat footed waits conned. >> san bruno was a game for us in the minute it happened and we have not rested one day in improving what we do. >> pg&e does d.not make anyone available for the one-year anniversary but talked to reporters after the final report. >> what i will hold our self as ktable for and expect our regulators and customers to hold us accountable for is to take actions to show we have a very safe gas pipeline system. >> the ntsb says pg&e must have overlooked or ignored what is obviously substandard pipe. and then could have caught the defect if only a pressure test had been required over next 54 years, but the state exempted pipes from regular testing. now, cpuc has gotten rid of the exemption, regulators are thinking about it. >> 150,000 miles of grandfathered pipeline. we're leading the way in the rest of the country will follow. >> pg&e made a number of changes on its own. and including reducing pressure on 1600 miles of gas transmission lines. pressure testing 165 miles this year, and using new technology to inspec

. >> and in san francisco, the cpuc takes up a thorny question of smart meter programs opt out choices. what will they be? how much will they cost you? >> and there is temperatures falling lower, i'll take a look coming up. so...what do you think? i'm not crazy about these light fixtures. kitchen's too small. what's next? 607 franklin st. ♪ sea bass... ♪ ooohhh! ♪ i like it. yeah, i love the kitchen. [ male announcer ] the epa-estimated 42 mpg highway chevy cruze eco. perfect for finding your way home. >>> people who don't want pg&e smart kbleerts installed are getting closer to an opt out option. >> it could cost them. and we're live in san francisco for us. >> and there was such public outcry against pg&e smart meter program, last year, cpuc ordered utility to come up with an opt out program. getting there is excruciating. today supposed to be a chance for interested parties to get details about options from pg&e and the other state utilities. the point of today's work shop was to explore feesibility of different options but the law judge in charge had a hard time keeping participant

the cpuc as well and the ntsb and hope to have an update from them that we can pass on to you later this morning. multiple investigations ongoing. there were six nor gas leaks found in this neighborhood making that a total of seven. still a lot of questions remain. claudine wong ktvu channel 2 news. >>> a tsunami warning has been canceled for the coast of alaska. it was triggered by a 7.1 earthquake. it hit two hours ago in a remote area of aleutian islands. there is no word yet of any major injuries or damages. sirens did sound in parts of alaska. people were told to evacuate to higher ground as a precaution but the tsunami warning was called off only after a small wave was recorded. >>> bay area beaches should be busy this holiday week. they come with a warning label this morning. ktvu kraig debro is in san francisco with what you should know before heading to the coast. >> reporter: good morning, pam. nobody is saying don't come to the beach. there is a warning afoot this weekend. it will be warm out. a lot of people will be visiting beaches. we're at ocean beach this morning. you can

torre on the timing question, we may need to start before we have a final term sheet or anything from cpuc. that program could start out on one level and anticipate increases in future years. i think thei think that the reat we get from the board of supervisors and from the mayor's office on that first year of the program will be a pretty significant indicator on if we can take comfort in that or not. >> i will work with the rate fairness board to carry out your wishes. >> we still have a ways to go, it feels like. there is still interest and commitment, we have the lafco meeting coming up and that will be a place to air these considerations. people have been working on this for many years, and it feels like the time has come for us to really decide on the best way forward. we will continue to drive this and move it to what is hopefully a successful conclusion. if there are no other comments, in the interest of time, i will move us along. >> if i could skip to 7c, it will be a fairly short discussion. on june 28, there was an item before the commission that was providing grants to job trai

and we get those to move those -- move the resolution forward urging the governor to work with the cpuc to resolve this in a friendly manner. >> we can prepare them for you. >> how are we doing? >> we are awaiting public comment or any direction or additional questions. >> could in advance to slide 11 again? >> absolutely. >> in effect, we are asking these entities for an increase and we are doing that so 75,000 people could enjoy having 100% clean power -- green power. i don't see h ow th how the impt benefits the ratepayers as a whole. it is going to benefit the 75,000. >>is that correct? >> saying a rate increase could satisfy two things. it could make hetch hetchy sustainable just as it is without cca. with cca, we would have to do higher rate increases to provide a choice for folks to be able to choose a more expensive product. albeit 100% green. you are correct. it would be increasing rates on the general fund on the hospital, on the mta, on the school district, on the community college. that would be one way to fund the cca which would give 75,000 customers a choice to pay an ext

one issue that is a problem is that cpuc bond. that is out of our control when that might happen. the project is contingent on that, we pretty much go as far as we can and we stop. that could be a very long time. that is the problem we have had. >> i appreciate that. at the moment i am not comfortable saying i am ready to proceed without knowing. it is such a potentially big ticket item. that seems unwise. >> [inaudible] >> i think so. >> maybe you could move it along a little bit. >> sorry. >> that is ok. >> the details are on here. the general concept is we are here today to get your feedback. the resolution is adopted and it will be presented to the board of supervisors during august and september. we would bring that back to you. the thought that we have been trying to aim toward this having all the elements being part of the same commission packet so that all the elements are being voted on together and the beginning of 2012, execute the contract and go through the customer education and marketing and outreach process. opting out at the time when the flat generation rates --

our health centers, our community centers, 10 of them, and the smart thing cpuc did with this energy efficiency team, they did the auditing, so they knew what the base line was and how we would measure the improvement, and i want to talk about them. they have been doing this not just from went and that money came in. barbara hail -- hale, others, you are part of that energy efficient team, and i want to express my thanks for working with the rest of the city and the building owners and everyone working together, because it is with those audits, and then wit and a great mind, to bring down what could have been in large single contract, we broke it down to represent opportunities, something the supervisors and i have been working on, and that resulted in 76 bay area workers getting jobs. that is that we use our federal money not in it -- not only in a responsible way, the money we were rewarded, but we use it even more responsibly. we kick up the standard by engaging the people who use the building in their habits and their culture and using it. it can be improved, and then we use our

you wouldn't request the cpuc raise the pressure to normal levels unless you were extremely confident to do so. >> decision is expected in two weeks. commissioners will also decide if it's necessary to hold hearings for about a dozen more lines where pressure was reduced. >>> 4:56 now. the companies responsible for one of the bay area worst oil spill finally agreed to settle up. next on abc7 news at 5:00 -- the deal that will pay back the government for the massive cost of the clean-up. >>> hayward police make an announcement that brings to an end a nearly 4-month-old mystery. but they haven't answered all the questions. i'm amy hollyfield. that story coming up. >> the search for the cause of a fire that has gutted a piece of san jose history. iririr >>> good morning. i'm amy hollyfield live in hayward where a family's hope turned to grief. michelle le's relatives took four months looking for her and now they're planning a memorial service. >>> i'm terry mcsweeney live in the newsroom. today is the day two imprisoned americans were to be released from iran but this morning there is a

. >> inside of the cpuc, pg&e and other state utilities came to provide details to help a judge and public evaluate different proposals. pg&e's preferred option is installing smart meter and turn off transmitter. >> pg&e does appreciate the need for a customer choice. and opt out. and are proposal is to turn radio off. so when radio is off, there would be no pulse, no transmission. >> the proposal includes charging customers one upfront fee of 270s wind advisories a monthly charge of $14. or a lower fee of $135 with a higher monthly charge of $20. to cover costs of meter yeerds rather than collecting data. >> the idea is charging people extra after they've been charged extra increase is opt out program is absurd and illegal like charging disabled people to access a wheelchair ramp and pg&e refused to really provide meaningful information except to keep pushing their proposal, which is too expensive and may not satisfy customer autos other options include a return to analog meters and a wired smart meter. abc 7 news. >> and beauty is in the hold of the beholder. one neighborhood discussing

. >>> on this one-year anniversary of san bruno pipeline explosion, cpuc has denied a request from pg&e to increase pressure in some of the gas pipelines. they were ordered to lower the pressure on all of its lines. it calls to restoring pressure levels before the tragedy. >> a number of parties said, wait a minute. this is pretty high profile. people are concerned. we ought to have an open public process. >> public hearings on increasing pressure will begin on september 19. the utility wants full pressure restored before the demand for gas reaches its peak during the winter season. >> demands for air-conditioning is what we're looking at this week because of the higher temperatures. >> especially those of you inland. we're going to get close to hundred? >> yes, brechbltwood, ukiah have a shot of hitting hundred. it will be warmer everywhere but air-conditioning is most needed. you can see a couple of areas of low pressure sinking toward the bay area. that is what some going to bring a chance of an isolated thunderstorm and maybe even a fire danger witness. that is tomorrow and sunday

. >> and pg&e has a plan for upgrade buzz that plan will require approval from cpuc after a lengthy public process where there sure to be many opponents. in cupertino, abc 7 news. >> and reacting today to the latest pg&e gas line explosion, congress woman jackie speier says more has to be done and says ratepayers presume the system put in place is safe. and in fact, she says that is not the case. >> i think it's policy makers we have to recognize that this problem is only going to grow. that we have ininfrom a structure crumbling. weather roads or bridges there are concerns in many areas bu but... we definitely have to deal with this issue. as each one of the explosions occurs, it gives us reason to pause and ask the question... is it safe? where i live? >> she says any upgreats should employ state of the art technology but not spend money inappropriately autographic videotapes place played in a san francisco courtroom and changed course of a rape trial against a local attorney. three women accused him of sexual assault after they answered his craig's list ads. but the judge tossed two of

the fire department, cpuc, national transportation safety board is taking a look. it's not a full blown investigation. and of course, pg&e, after the explosion, found seven leaks on two-inch line feeding this condominium. and pg&e spent the day here going door to door, checking for leaks inside and outside of the complex. on wednesday, one was destroyed after an explosion caused by a leaking line. fire officials say escaped natural gas caught in the garage, it's likely the pilot light ignited explosion and fire. the owner had left 15 mins earlier. a gas service representative or gsr was here about 30 minutes after the explosion. the gas flow was cutoff after another hour and a half. pg&e says excavating to pinch off lines which they did here is faster than closing valves. >> i.think our response is good in this case. our gsr was a first responder on scene. he called for a work crew. and a crew came after he called for them. >> amount of money that consumers pay, i think we expect that gas leaks should be found before there is an explosion rather than after there is

california public utilities was also admonished cpuc for their oversight of the system. >> families and neighborhoods that were killed will hold a memorial service tonight at skyline college in san bruno. we'll have coverage here on abc7 and stream it live in its entirety at abc7news.com abc7news.com from 6:00 to 6:30 p.m. >> they have been working to closing some of the districts 101 schools. district has now released a list of ten schools identified for possible closure consideration. oakland tribune reports the list of elementary schools, kaiser lake view, revere and marshal and maxwell park and sante fe and sobrante. claremont and chris middle schools were on the list but it was unlikely that any middle schools would be recommended for closure. >> if you dressing your kids for school this morning, it's going to be a little warmer again. >>> definitely going to be warmer today. we're talking about temperatures that will be -- let's show you right now. they'll be anywhere from a couple degrees to even 11 degrees warmer than yesterday. good morning to you. 2 degrees in hayward to 2 in

she worked for the cpuc for 21 years. we have more from the events remembering the anniversary of the disaster on our website, just go to ktvu.com. >> the woman accused of killing michelle lei made her first appearance today. amber lee just spoke to the suspect's former boyfriend. >> reporter: heather we are at the jail where the woman is staying in housing unit number 24. a spokesman for the sheriff's department said she is kept in a single cell away from the other inmates for her own safety because it's a high profile case. >> department in session. rthis afternoon the 27-year-old made her first court appearance. she is a accused of murdering her former school mate. a nursing student disappeared three months ago while on a break. also in court today was this man, he is the father of the suspect's daughter and the man who reportedly came between the two women. just two hours ago i spoke to him by phone. when i asked him what the nature of his relationship was with lei he said they were friends. he also said he was in cou

she worked for the cpuc for 21 years. we have more from the events remembering the anniversary of the disaster on our website, just go to ktvu.com. >> the woman accused of killing michelle lei made her first appearance today. amber lee just spoke to the suspect's former boyfriend. >> reporter: heather we are at the jail where the woman is staying in housing unit number 24. a spokesman for the sheriff's department said she is kept in a single cell away from the other inmates for her own safety because it's a high profile case. >> department in session. rthis afternoon the 27-year-old made her first court appearance. she is a accused of murdering her former school mate. a nursing student disappeared three months ago while on a break. also in court today was this man, he is the father of the suspect's daughter and the man who reportedly came between the two women. just two hours ago i spoke to him by phone. when i asked him what the nature of his relationship was with lei he said they were friends. he also said he was in cou

pg&e looking into this cpuc and the ntsb. we will also be looking into all of this. we will keep you updated here on the morning news. claudine wong channel 2 news. >>> police in fairfield investigating a suspected murder-suicide. the bodies of a man and woman were found in a home in north fairfield yesterday evening as police responded to a 911 call. a gun was found near the bodies. police say early evidence indicates the man shot and killed the woman then killed himself following a heated argument. neighbors are stunned as they described the man that they knew. >> he was really a peaceful guy. always helping neighbors. >> police say two of the couples teenage children were inside the home at the time of the shooting. they were not hurt. >>> the latest unemployment numbers are due out in less than 30 minutes. signs of modest growth are expected but what is the outlook for next year? coming up at 5:15 we will hear what the obama administration is saying in a live report from our washington, d.c. bureau. >>> the federal government will file a lawsuit against some of t

there was miscommunication between pg&e, the xis staff and pg&e's contract who wouldn't request the cpucssure to the normal levels unless we were extremely confident it was safe to do so. >> decision is expected in two weeks. commissioners will also decide if it's necessary to hold hearings for a dozen more lines where the pressure was also reduced. >>> 5:57 now. just ahead on abc7 news at 6:00 -- smaller soda. the company hoping to attract a bigger fan base might get smaller. >> brad in the bay! the premier that had some hollywood biggest stars descending on oakland last night. the lasting benefit for one bay area charity. >> hayward police aren't saying much but they said enough to bring conclusion to a long search. i'm amy hollyfield. the story coming up. -dad, why e you getting that? -that's my cereal. is there a prize in there? oh, there's prize, all right. is it a robot? no. is it a jet plane? nope. is it a dinosaur? [ laughs ] [ male announcer ] inside every box of heart healthy cheerios are the great tasting little o's made from carefully selected oats that can help lower cholest

on the testing of older pipes california is ahead of the nation cpuc got rid of that exemption that jackie speier is working on on a national level. >> thank you heather. pg&e crews tonight are in the process of replacing a pipeline for which the utility has no record and pg&e says the replacement is a quote safety precaution which doesn't explain why it's replacing the pipeline now since pg&e has no records for it. the utility has hundreds of miles of natural gas transmission lines in the bay area. we are waiting for a response from pg&e. >> utilities have smaller plastic pipeses but don't have to explain y the owner just left for lunch. 50 people have been killed on explosions blamed on the fail you're of the same type of pipe. federal regulators considered many brands of plastic pipes a danger. >> president obama made another visit to the bay area and came here yesterday to raise money and today to raise hope but jobs creation plan will work. mark matthews is here with details. mark? >> the president's town hall was at a computer history museum in mountain view. the event hosted by prof

the cpuc has been investigating muni for the past seven months. >>> let's see how the commute is going-- sal said it's slow in quite a few spots. >> it is slow. traffic is going to be busy coming into los gatos. 85 is slow from 101 to 17. yikes. that's terrible. 280 up to cupertino. the south bay has been kind of quiet but now they are making up for it. this is a look at the peninsula where 101 is pretty busy heading down to san mateo. 280 is much better. across the bay from hayward to union city. we've had a couple of minor incidents but just a bun everyone of slow traffic from 2 -- on 238 to 880 south. i want to show you the bay bridge toll plaza getting backed up for about a 15-minute wait. this morning in san francisco, northbound 101, i just wanted to show you this picture, the traffic is okay. but look at the fog coming in. i think people who don't like hot weather are saying yep, this is pretty good as j.j., our utility, operator -- our utility operator, backs up. let's transition to steve. >> is that joe johnson? >> yes. >> about time. he's a friend so i can -- [ laughter ] >>>