. >> that's correct under the regulatory structure that pg&e operates the california pg&e has a takeover for city's like ours pays the one for san francisco is specific only to san francisco and that tariff is for the physical aspect san francisco provides the electricity for the lights. >> for pg&e's lights. >> but the light we operate. >> but when pg&e goes out to repair or maintain the system is charges the puc for the work. >> we're charged a monthly fee per light and so they receive payments for us open a monthly basis to fund their operation and maintenance. >> including our overhead. >> correct that's profit. >> and their profit and so one of the benefits of and there are various benefits of moving pg&e's lights over to the puc pg&e public conversations and otherwise didn't obtain to this obviously there will have to be a negotiation around the purchase price but ultimately not only will it be much more easy to figure out who's in charge of the light a if it's a puc or pg&e light we can move past that but also it will be more efficient because puc will no longer have to be inducin

it comes after attack last year at a pg and e substation in south san jose. many believe it was an act of terrorism. pg and e says he's beefed up security but our investigation uncovered a different story. tonight understand we did not break any laws, and the vulnerability we are exposing is already known to those who may want to cause harm. that's why we're holding pg and e accountable for protecting electricity we all need. you're watching video from a security camera at the metcalfe substation. it shows sparks from the bullets, but cameras never captured images of the gunman. >> there were like 100 or so rounds. >> reporter: it took 19 minutes to destroy 19 transformers, an attack that had the potential to black out much of silicon valley. >> this is far more than vandalism. >> reporter: these two veteran deputies responded minutes after the attack, agreeing on to talk if we protected their identities. >> i believe that it was a terrorist attack. >> these were pros. >> reporter: san jose congresswoman zoe lofton and others have raised concerns that metcalf

pg & e says it beefed up security. tonight, gds we did not break any laws and the vulnerability we are exposing is already known to those who may want to cause harm. that's why we're holding pg & e accountable for protecting electricity that we all need. >> you're watching video from a security camera at the metcalf substation. it shows sparks from the bullets but cameras never captured images of the gunman. >> a hundred or so rounds. >> it took 19 minutes to destroy 17 transformers. an attack that had the potential to black out much of silicon valley. >> these with veteran deputies respond minutes after the attack. agreeing only to talk if we protected their identities. >> i believe that it was a terrorist attack. >> these were pros. >> the ranking government leaders have raised concerns that metcalf may foreshadow a more robust attack. >> a trial run is what it looked like to me. >> now nearly a year and a half later no, one has taken responsibility and the fbi has not made an arrest. >> those sub stations need to ha

he expects pg & e. referring to nonprofit. peavy engineered to fund the pce. >> can't say please pay for my dinner. pay for my party. and pay for the is nesh tinitia exchange for favorable treatment i will give you from my state appointment. >> so now we understand and the e-mail appears to outlean what pg & e needed. >> pg & e, is aware we're looking for a reference to the proposed 20% increase. the e-mail went on to say, peavy to expect a be gigs in january. the time of the 100th anniversary celebration. i told him i got the message. >> to me that shows you do me a favor the i will do you a favor. >> quid pro quo. >> absolutely. >> that controversial e-mail ended with this. all and all. we had a nice evening. polished off two bottles of good vino. our investigation also followed the money. take a look. disclosure shows pg & e contributed $650,000 to the campaign. according to reports in "the san francisco chronicle," spend $20,000 supporting president ucs, 100 year inside the julia morgan ballroom. >> they were negotiating b

comments off the assessment that's nice for the puc owned but in my district 090 percent is owned by pg&e that's in the contestanting so my frustration is the unresponsiveness that the utility company really has been to make repairs are larger absent from tennis shoes on an overhead wire to companies pointing to puc no one taking the ownership this is helpful it maps out exactly 95 percent of any problem pg&e is the sole force or the recommend to softly the challenges i'm interested in making the city look at the ownerships of 95 percent how do i help with that process. >> well, so a couple of thoughts. >> it's a tough question. >> that will be a city policy to happen i know there are you know going to be issues in terms of evaluation of pg&e street lights like the things for maintenance they're probably not worth as much as pg&e think they're worth ms. hail. >> the issue where you begin supervisor with the level of service i'm how have we're going to make headway in asking the california puc to ask pg&e to have performance goals and to report their maintenance activities on an annual b

pg&e says there's no disagreement here. the e-mails in question are inappropriate and it believes some violated the puc's rules. tonight at 11:00, more questions about pg&e's performance. this time the security of critical substations in northern and central california. following our investigation, a state senator and a former president of the puc are calling for action. that's tonight at 11:00. we hold pg&e accountable for security breakdowns. >> if you have a tip for our investigative unit call 888-996-tips. or e-mail theunit@nbcbayarea.com. >>> we got a good soaking today. get ready for round three. mom? dad? big uncle wayne?nut. hot chocolate. green tea. uh, decaf, cuz. wow. i'm dying for an herbal tea. the all new keurig 2.0 is here. right here in san francisco. whether it's helping local businesses like the fruitguys grow and prosper, supporting nonprofits like juma ventures as they fulfill their mission or helping neighborhoods like the tenderloin become vibrant communities. if there's a way to help the people of san

a game changer for the industry. >> pg & e responded. beef up security at critical substation. >> now i am here. 30 mip uts. haven't had any one ask me any question. >> its there anybody here. it used to be manned. but not any more. >> no security. >> yeah, security. cameras all around there. >> but nobody on site. >> no. >> 16 republicanths the attack. included 14 unannounced visits to nine of the largest substations in northern and central california. we got up close. and discovered a less than aggressive. highly simplistic, security network. >> they get a passion. is pass good enough. is a men -- is a minimum enough. >> i think not. >> he asked us to disguise his identity. in less than 15 minutes. >> the former special agent in front of the fbi. >> yes. >> would you call pg & e. >> yeah, we have lie stephanie douglas left the fbi and served as pg & e, director of security. following our 14 visits to substation. we asked for specific detail. can you tell us where we have been and when. >> i know a couple places that you have been. i kn

at the california puc because from the regulate terrors prospective the owner of that set asset is pg&e rate fairs to make sure that the rate pairs get appropriate value so far the asset so it's the c p puc ultimately decides whether the prices that pentagon and the city have negotiated is appropriate and that transaction can be appropriated at the state level it's a road that's been traveled, if you will, by another cities we've pursue is in district 10 where most of the street lights are on pg&e light poles and some recent examples where pg&e has sold similar the cross arm and the limb and part of the street light not the pole that's a wood utility pole so we have ready examples when we've looked the system we know that pg&e owns we've tried to see how much they're going to cost the city to install led system in its place we estimate that costs us too 62 and one hundred and 15 million that's a rough estimate not a insignificant endeavor and be responsible for bringing those systems up to our level of service exceptions and would need to look at what the operation and maintenance cos

pg&e pg&e is backing out -- pg&e is backing out of plans for a power plant in contra costa county. it would have been a 586 mega watt facility. they are backing out because of a ruling earlier this year. it annulled the decision to approve the agreement for the plant. >>> powerful display in san francisco today to remember all the pedestrians who had been killed or injured on city streets. >> enough is enough. the time is now. enough is enough. >> the sun of a 78-year-old held a -- the son of a 78-year- old held a chant and spoke following the death of his mother. she was killed backane september and -- back in september and organizers put the empty shoes on the steps of city hall to respect those who lost their lives this year in pedestrian accidents. >> behind me are 28 empty shoes. shoes that should be filled today. more than these shoes people lost limbs, people who can no longer stand because of traffic injuries. >> organizers called on the city to speed up efforts to make the streets in san francisco safer. they say in the last few weeks it has been especially dangerous with

. >>> right now at 6:30, more problems for pg&e.tled utility fighting off mounting pressure from a well-known local politician. an uncomfortable spotlight for the utility yet again. this time a state senator is demanding to know what pg&e is doing to keep its most critical electric substations safe. >> chief investigative reporter tony kovaleski is here with new details. >> they both accuse pg&e of not doing enough. tonight a state senator and a former president of the state's public utilities commission are calling for an investigation into pg&e and failures in its security network. our investigation uncovered risks and vulnerabilities in the security network. now pressure for action. >> by all indications, this is a major substation. >> reporter: our investigation and our cameras got an up-close look at many of pg&e's most important and most critical electric substations. >> this is a thermal imaging camera. we're about 200 yards away. >> this gate is wide open. >> we've spent almost an hour within about 200 yards of this apparent

he was a vice president of pg&e. the e-mail reports on a may 2010 dinner with president peevey, mike stated very clearly he expects pg&e to step up big and we need to spend at least $1 million. according to the e-mail, peevey wanted pg&e to contribute to defeat a ballot proposition governing california's fight against global warming. cherry also wrote, "i asked for clarification and peevey said at least doesn't mean $1 million, it means a lot more." >> that's solicitation, as far as i'm concerned, $1 million. >> reporter: in an e-mail cherry also wrote, peevey expects pg&e to contribute $100,000 to the celebration committee, referring to a nonprofit peevey engineered to fund the puc's 100-year anniversary celebration. >> you cannot say please pay for my dinner, please pay for my party, and please pay for the initiatives that i like in exchange for favorable treatment that i will give you from my state appointment. >> reporter: so we now understand what the president of the puc wanted and the e-mail also appears to ou

will be a city policy to happen i know there are you know going to be issues in terms of evaluation of pg&e street lights like the things for maintenance they're probably not worth as much as pg&e think they're worth ms. hail. >> the issue where you begin supervisor with the level of service i'm how have we're going to make headway in asking the california puc to ask pg&e to have performance goals and to report their maintenance activities on an annual basis i'm hopeful that will help but at the end of the day i suspect people won't be concerned about the level of service if their at the level you want in other words of ownership you know pg&e has sold street lights to other cities the process for that is typically an negotiation between the city and the utility a precede at the california puc because from the regulate terrors prospective the owner of that set asset is pg&e rate fairs to make sure that the rate pairs get appropriate value so far the asset so it's the c p puc ultimately decides whether the prices that pentagon and the city have negotiated is appropriate and that transactio

the city with the public utilities commissions a complaint in 9 city attorney's office that pg&e has unreasonably denied service to the city because pg&e has a monopoly on power and distribution in san francisco they're required to be an open access provider they've transferred hetch hetchy power to the terms of interconnection that's power generated by the city but transported on per diem lines it exteriors next julia year ago the city requested a new negotiation but per diem has refused to negotiate in good faith they've trying to force the city to put in several new equipment that's been in place for decades technologically e pg&e is trying to get the city to pay for services the city paid for years ago it appears that pg&e is trying to undermine those negotiations or trying to take advantage of the city last month the city attorney filed a complaint a complaint that alleges that pg&e has unreasonably denied service to san francisco so i'm calling for a hearing to hear an update on the complaint we've received help if the deputy city attorney on this effort i'd like to hear wla wh

in fact, he is one of the powerful people deciding how much you pay pg&e.re is more trouble for the president of the state's public utilities commission. >> chief investigative reporter tony kovaleski has been digging through hundreds of e-mails linked to his questionable relationship with pg&e. tony, a lot of talk about corruption here. >> reporter: raj, jesse, the accusations point as the current president's of the state public utilities commission. the u.s. attorney is investigating, and so is the state attorney general. tonight we investigate a telling e-mail and an empty disclosure form. >> but this is unseemly and it crosses the line. >> reporter: it's an e-mail two power brokers thought you would never see. >> well, it says that there are back room deelgs going on. >> reporter: and it's this empty form, unreported payments required by law, never disclosed to the state. >> i think that escalates from the word cozy to corrupt. >> reporter: together they point directly to the current president of the public utilities commission. >> an awful lot of pride

this prevent choice like the end users the developers will not be able to choose between the puc or pg&e and but that's important to keep in mind today they're there are is no choice for the private property owners they only have one choice pg&e they know that the puc provides a less expensive power than pentagon in most situations in addition we've heard censures about reliability but no facts to bear that out the puc has been a power provide for more than one hundred years for municipal purposes you don't hear about the lights combout in the airport or the applications or city hall or muni muni habitation many issues but the power going out is not one of them so this is an agency that provides power that is a water and sewer provide and understands how to operate a reliable utility system this will support many goals a as a city and an important step forward i'll be offering two amendments one is a clarifying amendment offered by the puc which i have copies of here and the second is addressing language to state that should a community choice ago gas station committee join here in san

pg&e is working to cap the leak. keep update online at kpix.com. >> ivy: here. >> liam: thank you. >> wyatt: goedemorgen. that's "good morning" in dutch. >> ivy: hmm. well, good morning, mate. that's "good morning" in australian. how'd you guys sleep? >> wyatt: uh, well, the three of us slept comfy. what about you two? >> ivy: yeah, it was like sleeping on a cloud. >> wyatt: well, good. then we're all geluk. that's -- >> liam: "happiness" in dutch. we know. thank you. >> ivy: ja, ja. >> liam: ja. >> wyatt: that's funny. i'm learning dutch, thank you very much. >> hope: if we're all done impressing each other with our dutch, uh, can we talk about the work in amsterdam? >> wyatt: right, amsterdam. just the four of us. a bonding experience with no interference.

pg and e says these scams are ongoing, and come in various forms.ut that pg and e would never demand payment using prepaid cash cards and that power would never be shut off unless there had been several written warnings. >> this is not normal. this is not something that's right. and they should hang up, and call pg and e. >> i'm glad that i'm talking to you, and you let the people know that hey, this kind of scam is going on. >> reporter: the gas station owner says this bill is the first he's received online. before this, his bill always comes in the mail. he suspects there's a security breach somewhere online. pg and e says it works with law enforcement to investigate reports of scams. reporting live, here in hayward, amber lee, ktvu, channel 2 news. >>> a crisis that effects the entire community. >> it's not against law to be mentally ill. >> 2 investigates the dwindling resources to treat mental illness. >> the pattern that will mean very similar temperatures in the valley, and at the coast, and why. >> coming up, sex ed uproar. the role planned

e-mails already released by pg & e revealed back channel communication with regulators and suggest pg & e was judge shopping. >>> the future of the oakland raiders is up for discussion. today representatives from san san antonio reportedly met with team management here in the bay area to try to convince them to move to texas. john sasaki talked to oakland's new mayor elect and gives us her take on things. >> reporter: outside raider headquarters it seemed like business as usual as players stopped to sign autographs. some where postlikely inside the facility, officials were talking to san antonio officials about moving south. libby says she will fight to keep the team here while using no city money to build a new stadium. >> i love our sports team. i love anything that lifts up oakland and gives us r.n. to be proud of this city. >> reporter: raider nation signs adorn the windows. >> i'm not worried about san antonio being here. the raiders are looking at their options. >> reporter: the idea under consideration is for the raiders to play at the alamodome where the university of the texa

she left the fbi and now serves as pg&e's senior director of security. following our 14 unannounced visits to substations, we asked pg&e for specific details. can you tell us where we've been and when? >> i'll let you tell me. i do know a couple of places that you've been, and i know that you've been to visiting some of our sites at night. >> reporter: that's part of our test here. can you tell us where we were and when? >> tony, i'll let you give me some ideas. >> i think pg&e's answer was weak. i hope it was just for the camera and that they don't seriously believe that their system is secure enough to protect the grid and protect the infrastructure and those substations, because what i saw, it didn't come close. >> reporter: do you think pg&e has done enough now to prevent another metcalf attack? >> we are working every day to make sure it never happens again, tony. >> reporter: nine days after that interview, a few weeks after our investigation, you're looking at what was left of an outer fence at the metcalf substation. this time intruders cut throu

pg&e says it will appeal the decision. >> that decision also fined pg&e $11 for a cot ooj that was destroyed in an explosion. gas leaked into a cottage that exploded. no one was actually inside when it happened. >> ski and snowboard season officially kicks off today. this is a time lapse posted. a couple of inches of snow fell at the summit. north star is one of two resorts opening this summer. the other is heavenly. >> the conditions a loot more amenable for skiers. >> yeah, we got quite a bit yesterday. we're going to keep your running rainfall totals going all weekend long with a third, very potent system on the way for saturday. now, those of you who want to get up to that fresh powder in tahoe, there's a high wind watch in place as we get into tonight. so traveling is going to become more dangerous as you head throughout friday night into saturday morning. and we're going to get quite a bit of snowfall tomorrow morning all the way throughout the afternoon hours, which is good news. but take a look at where we stand. mount tam almost up to 4 inches of rainfall just for the first two syst

&e pg&e has been an invaluable partner to the american red cross in helping us respond and prepare to disasters together with our award-winning initiative we've reached over one million community london breed's with the preparedness activities and established the relationships that are 150esh8 to the ability to recovery and become stronger after a natural disaster a culture in which neighbors help neighbors each are excepted with the acknowledge we need as well as the valuable connections to our community near the what happens near the what is lost let's be there by committing to be prepared and encouraging our loved ones to be prepared also thank you for coming here this evening. >> thank you very much mark your relationship with the american red cross is extremely important it's been mentioned pg&e is doing a lot since 1989 we'll note our c. construction standards have improved our electric and gas lines are better we integrate technology such as a our gas unit we have really increased our disadvantaged modeling capacities to understand the magnitude of an earthquake right after it

currently about 60% of street lights are maintained by the city and 40% are maintained and owned by pg&e. i've held two oversight hearings at the land use committee on street lights over the last few years and one of the significant issue that we've identified has been inconsistent maintenance practices between the puc and pg&e and the challenge that our residents often have in trying even to figure out who or where to call when a light needs service. last year a street light on guerrero street collapsed and fell over into the middle of the street. luckily no one was injured. when the puc investigated, it found that the entire corridor on guerrero from market street to cesar chavez street was -- each and every light needed to be replaced. they were deteriorated and in terrible shape. this is a public safety issue that we absolutely should not have. unfortunately, when the puc did replace those lights, it did so without converting them to pedestrian-scale lighting and without upgrading them to led technology. this is an example of a major missed opportunity. we should be upgrading to l-

went to pg&e for energy efficiency.uct of corruption. e-mails disclosed by pg&e shows c.p.u.c. president and pg&e made a secret deal. >> the president said he would give pg&e $26 million of rate payer money if pg&e would contribute to a political cause that he favored. >> the performance of the utilities didn't warrant awards. pg&e issued a statement saying there is no disagreement the e- mails were inappropriate and as we have acknowledged we believe some of them violated the rules. >>> the city counsel moving forward with a plan to expand the oakland zoo. it was an after midnight vote to approve the expansion into nolen park after a meeting last night with dozens of people expressing their opposition. they say it would sacrifice space but the zoo wants room for more exhibits. >>> new at 5:00 p.m. an effort by the makers of barbie to get girls interested in computer science back fired. ktvu's allie rasmus shows us why the book has parents upset. >> reporter: we will show you an excerp. barbie said i am only creating th

. >>> and tens of thousands of e-mails lead to a million dollar fine for pg&e. why some say the utility is still getting off easy. ♪ ♪ ♪ ♪ [ female announcer ] get your taste of the season, at raley's, bel air, and nob hill. >>> pg&e slapped today with a new million fine for attempts to improperly influence the outcome of a rape case. but the fine isn't quieting critics. they want a harsh deterrent and the shake-up of an overly cozy relationship between the utility and the puc which is assigned to regulate it. tony kovaleski continues to examine that relationship. tony, you have been looking at this for months. >> it was sometimes awkward, bizarre and highly unusual today in san francisco. the cpuc voted to punish pg&e in the scandal that included active involvement by the puc's president and one of its commissioners. >> so the motion is unanimously adopted. >> reporter: commissioners imposed a $1 million fine against pg&e for the judge shopping scandal, crossing the line in a series of e-mails pg&e and the cpuc discussed which judge to appoint to preside over a

. >>> they are claiming to work for pg&e, somebody called him and unless he paid his pg&e bill immediately, power at his business will be shut off. he needed to buy $66 in green dot and he said he took the call seriously and then had second thoughts. >> before i do that, something came to my mind so i called pg&e. >> he said this is a security breach and they said they would not do that without several written warnings and if you get a threatening call hang up and call pg&e. >>> perks are val -- valued they received a hefty seven package he received improper e- mail contacts with the state public's utility commission, the part that regulates pg&e. >>> and expecting to see repairs in the city streets according to the san francisco chronicle. theythey will be sealing cracks and putting a protective layer on the asphalt and work will continue until the end of the year. >>> still ahead, a security guard shot at a local starbucks, what handed out side of the coverage if i shop that led to that shooting. >>> they took me off, i am bringing your daughter home. >>> authorities snatch a worm right

the cpuc is deciding, bob, how to punish pg&e. >> reporter: good morning to you, scott. the public utilities commission here in san francisco just approved a roughly $1 million fine and a much larger penalty down the road for what amounted to be a behind closed door negotiation that affects how rate payers and how much they pay for a gas and electricity. now this centers on an e-mail exchange that took place last january. in it the utility asked its regulator, the puc, to change the administrative judge in a rate case from one who is, quote, hard on the utility, to one who is more favorable. the e-mail showed the puc ultimately complied with the request. once it became clear that was in violation of commission rules, four senior officials with the utility and puc either were removed or resigned. president michael peevey on the commission, who was included in part of that exchange, ended up recusing himself from that rate case. and peevey and commissioner recused themselves from the vote. the remaining three commissioners agreed with the recommendation the utility shareho

i at that -- i end at that point and it's up to the city and pg&e to go forward from that point. >> i will yield the floor. >> i'm really excited about this, i was just in the sunset talking to folks about undergrounding last night. one of the things we talked about were community business districts and the ability for community business districts to help in the funding of undergrounding so i know that sometimes we look at finance options through bonding and a number of other vehicles and taxes and so on and so forth, but i definitely would appreciate it if time permits to explore the possibility of contributions from community business districts because that's a tax and you are familiar with how those things are formed and whether or not those districts have the ability to commit funding toward something of this nature or using it as leverage in order to finance it in order to pay down the debt and how that kind of works would be helpful if time permits based on your timeline or if it's something we should probably look at after the report is completed. i don't know, but i just wante

& e. >> we're looking for pg and e. do the business of the cities of california. >> since the pipeline explosion, the city leaders have been relentless to release years of documents. mang damaging are e mails. the then chief of staff carol down is asked by brian cherry, any news on reassignment? brown relies working on it. i hope the mess is worth it. cherry responds you'll owe me if you do, mily face. >> peopleho get charged are the scapegoats. i thinkthere is a difference we want to make sure people at the top don't get a free walk. >> we'd like to see justice done if charges are appropriate. >> crews are on the scene trying to fix a natural gas leak that paralyzed downtown san jose today. a giant cloud of gas for hours that forced office building and business workers to shut down. >> i got the gas mas the fire department responded. >> it's just a high volume natural gas. the goal is try to prevent anyone from getting hurt. >> firefighters looking for pockets of natural gas. pg & e says it could take a couple hours mo