the pipeline eggs explosion. good morning. i'm kristen sze. n.t.s.b. says pg&e failed time and time again that could have taken steps to prevent the deadly disaster. terry mcsweeney has been monitoring the hearing all morning. >> who could forget the images in san bruno. a burst gas pipeline and ensuing inferno. in washington, d.c. the release of a report o of a yearlong investigation and a verbal assault on the pg&e. >> you are going to hear about a troubling explanations and a system of oversight. government agencies a placed a blind trust in operators to the detriment to public safety. >> reporter: with congresswoman jackie speier and the mayor and city officials in the audience, n.t.s.b. chairwoman put pg&e and the state puc in the crosshairs. the investigation begin with an inspection of the 28 footÑç section of the pipe sending natural gas to fuel the flames. >> this is enough gas to serve the entire city for a month and it was released in less than two hours. >> the investigation could not answer questions. >> it was compounded over the years by a litan

at first the control center could not pinpoint the explosion point. while pg & e got the brunt of the criticism, investigators also blamed state and federal regulators for lax oversight and for giving utility a pass on old pipes when they should have been pressure tested. >> you have got to make sure they're doing it the right way and when they violate that trust the penalty has to be high. >> reporter: among the 29 29 recommendations the safety board made. better inspections inside the pipes and the elimination of a rule that exempts older pipes from getting tested. san bruno's major who sat front and center during the proceedings had this to say about the final report. >> the ntsb did a great job. i think now we as a community will keep doing what we have been doing and that's rebuilding. >>> now the ntsb is done with its san bruno investigation its work on this issue is far from over. there are four or five more pipeline investigations pending. and the agency had to put off a lot other cases because of lack of funds. >>> we put those findings to chris john

with billions of the dollars needed to upgrade pg & e's vast pipeline system, who will pay? >> part of it will be to the extent that we've made mistakings. and that's on us. we need to make the investment to fix those mistakes. >> reporter: but what about procedures and equipment that would be applicable to all utilities that truly will follow. >> reporter: generally those then will be costs that will be borne by the customers. >> reporter: at this point three things are for sure. pg & e will never be the same, the cpuc will never be the same. and you will pay for much of it going forward. reporting live consumer editor tom vacar, ktvu channel two news. >>> the executive director of the california public utilities commission responded to the report in a written statement. paul cannon says we have ordered the utilities to test or replace all grandfathered pipes. >>> the ntsb concluded that substandard welding is what caused the pipeline disaster. the bad weld gradually worsened over the yearless. years. it finally ruptured under pressure that would not have posed a danger. as

we would -- my concern is the results from conversations surrounding pg&e. i am not so sure at this point that shell oil has been sufficiently vetted but i do not know. >> shell oil is internationally known. some of the similar questions were raised when iran energy selected shell oil. and it is a large corporation. the only one that would step forward. it is one of those things you might take into consideration as you look at the contract. it is the only company that has offered to do business. >> it is not show oil. -- shell oil. a subsidiary. i will move to slide 13. there are a bunch of different renewable as mr. harrington was noting. there is a different variety that we can utilize under grenoble's which is the -- that we can utilize. you can -- electricity comes off those panels. there is firm renewal bills which is the bulk of the product we will be purchasing. -- renewable switches the bulk of the product we will be purchasing. there is the tradeable renewable energy credits. all the sources would qualify as renewable under the california energy comm

& e is largely at fault. >> reporter: the pg & e pipeline blast destroyed 36 homes and killed eight people in san bruno. a fire that pg & e failed to control for and hour and a half. tonight the report put blame on pg & e. pg & e records about the pipeline were critically flawed. >> some of this information was inaccurate. the pipeline was not seemless but had a longitudal -- not seamless, but had a longitudinal seam. >> the results were misinterpreted or ignored. >> reporter: ntsb staff also said that pg & e did not take precautions. investigators also say that pg & e did not take the right precautions leaving people in the dark. >> while the majority of the blame fell on pg & e the ntsb said there's a lack of government oversight and there's a need to create state and federal regulations for testing older pipelines. jana katsuyama, ktvu channel 2 news. >>> more details now the ntsb made 29 recommendations among them it told pg & e to expedite the use of automatic or shut off valves. it said there should be improved recordkeeping. >>> ktvu's jana

& e is largely at fault. >> reporter: the pg & e pipeline blast destroyed 36 homes and killed eight people in san bruno. a fire that pg & e failed to control for and hour and a half. tonight the report put blame on pg & e. pg & e records about the pipeline were critically flawed. >> some of this information was inaccurate. the pipeline was not seemless but had a longitudal -- not seamless, but had a longitudinal seam. >> the results were misinterpreted or ignored. >> reporter: ntsb staff also said that pg & e did not take precautions. investigators also say that pg & e did not take the right precautions leaving people in the dark. >> while the majority of the blame fell on pg & e the ntsb said there's a lack of government oversight and there's a need to create state and federal regulations for testing older pipelines. jana katsuyama, ktvu channel 2 news. >>> more details now the ntsb made 29 recommendations among them it told pg & e to expedite the use of automatic or shut off valves. it said there should be improved recordkeeping. >>> ktvu's jana

what about the emergency response from pg&e? they just went through a time light of the exact moment of a report that the pipeline had exploded and that there were flames of the ear to what exactly pg&e was able to shut off the valve that was basically on fire and exploded. it took some 10 minutes. if the valves on the line had closed immediately after the would have gone out to get under 10 minutes, if they had done, these people are saying should happen. i will continue to listen in to what is happening in this light., i will be back at 7:30 a.m. with more. >> a developing story of south bay. an officer involved shooting that happened late last night. craig skalar is live in cupertino with an update. >> stevens creek boulevard is still blocked off at least eastbound are southbound. it has been closed since 9:10 a.m. what authorities at the sheriff's department say a deputy stopped a pedestrian on suspicion of an auto theft. the suspect shot at the sheriff's deputy and the deputy shot back at him injury him with some life threat

and also we would like to thank the pg&e, acknowledge the pg&e employees and their long-time sponsorship of us. they help us with the trucks and in the parade and they also, this year we will have a large representation of them during the parade, too. there's a lot of them, that are in attendance. if you're a pg&e employee, please stand up. but with i know that there's quite a few of you in the crowd. i also will be remiss if i don't thank padron in pg & e who has helped us in every aspect of our carnaval. this year we're also going to have a group of employees from the p.u.c. that will help us with the parade and also some volunteers from john owe collin high school and we thank them all. it is my honor and my pleasure to introduce to you somebody that i respect and think that we couldn't have a better mayor in this city. i have not been in touch with him for quite a while but in the last month it's been a couple of events that we've run into. i would like to introduce the san francisco -- [speaking spanish] , ed lee. >> thank you very much. welcome to city hall. i've been laughing for

now in the process of rebuilding and suing pg&e. he thinks the ntsb nailed it by putting the blame on the utility. >> a great neighborhood is gone. it is simple. we lost good friends. we lost neighbors and the community for what? for greed, right? >> reporter: the safety board determined pg&e welded poor lines and failed to inspect them and did a horrendous job of record keeping. it called for automatic shutoff valves that caused the fireball that went unchecked for so long. all findings that did not surprise the people who lived around the blast site. >> the last 50 years i have been paying my pg&e bill. i am so disgusted with those people. the tragedy that they caused, and the tragedy that they brought throughout these families lives. >> that i bors pointed -- the that i bors pointed their -- neighbors pointed their fingers at p pg&e executives. ray gio in washington, the pg&e president said they would update their plans based on federal report. >> unfortunately i know that no matter what i say or actions that i take, it will never

. >> 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. they are not willing to give this a price to pay for something we execute two months, four months, five months from now. there will be a price refre

the 4 that you have already tried. >>reporter: family want a trial in july of next year. pg&e issued the rae response brief today. it basically states pg&e has not been found liable for the explosion and fire that destroyed 35 homes and killed 8 residents last september 9 whichlt pg&e wants to do is have a trail on one issue that is liability. whether or not pg&e was at fault. >>reporter: to that end pg&e sent this response to us tonight. our gel has always been and continues to be of finding a timely fair resolution to these matters. we believe our proposal would allow a much faster efficient means to the restlution of the claims which the plaintiffs deserve. >> isn't necessarily about money. really hard to say what is going make me whole. >>reporter: he wants the dorption stand up and take responsibility. nssb relessed this video regarding the findings. >> quality of the well was also not consistent with what we would expect today or at the time with respect to industry standards. >>reporter: ntsb will present the findings tomorrow after year long investigation. in the court papers pg&e wants a trial on liabilit

the pipeline eggs explosion. good morning. i'm kristen sze. n.t.s.b. says pg&e failed time and time again that could have taken steps to prevent the deadly disaster. terry mcsweeney has been monitoring the hearing all morning. >> who could forget the images in san bruno. a burst gas pipeline and ensuing inferno. in washington, d.c. the release of a report o of a yearlong investigation and a verbal assault on the pg&e. >> you are going to hear about a troubling explanations and a system of oversight. government agencies a placed a blind trust in operators to the detriment to public safety. >> reporter: with congresswoman jackie speier and the mayor and city officials in the audience n.t.s.b. chairwoman put pg&e and the state puc in the crosshairs. the investigation begin with an inspection of the 28 footÑç section of the pipe sending natural gas to fuel the flames. >> this is enough gas to serve the entire city for a month and it was released in less than two hours. >> the investigation could not answer questions. >> it was compounded over the years by a litany

so how are people in san bruno reacting to the ntsb report and the harsh word for pg&e. ktvu's tara morarti joining us with more. >> reporter: you can see by the empty lots that line the streets. all are anxious to hear what this government report reveals but some fear pg&e will never come completely clean. >> i didn't feel safe. >> reporter: maria bar had her house rebuilt after the explosion. she fights back tears as she unpacks, each box opening up old wounds. >> i was out in the middle of my yard and i was reaching up. god, i don't want to go like this. my hair on fire. i don't want to die by burning to death. >> reporter: maria escaped but eight of her neighbors didn't make it. >> the night mares were horrible. >> reporter: most neighbors are curious about the report but think it will simply verify what they already know. >> as far as the inadequacies as well as the record keeping. it's disturbing. >> reporter: san bruno's mayor has been attending the hearings in washington where the ntsb has slammed pg&e for what it calls organizational indifferences. it inunited a

that was just less than a year before the september 9 explosion. but pg&e maintains it has followed safety procedures. >> these engineers according to what we have seen did numerous tests on it to determine that there was not a problem there that would compromise the integrity of the pipeline and so they put it back into service. >> reporter: pg&e is set to inspect and strength test nearly 1,000 miles of pipeline. it has already started to run high pressure water tests through more than 100 miles of its older pipelines. now, there are five members on the ntsb that will get to ask questions after federal investigators present their findings. that is again in about half hour. we are expecting a lot of discussion about recordkeeping and safety procedures. >> if folks want to watch it? >> reporter: you can go online. in fact, i know we are going to be showing a little bit of it at 6:30 and you can find it at capitalconnection.net but again, we'll have that coming up later in the hour. >>> there was a magnitude 2- point the quake overnight at 12:9, 2.9. the ep

we show the breakout on how much of that pg&e bill is how much gas, how much electricity. we do the same thing on our water bill to save on costs and so we combine the water and sewer under one bill just like pg&e combines a electricity and gas. customers typically -- that is why we show them with two parts to the column. >> commissioner moran: in the term sheet itself, let me start with the simplest of questions. this is the parameter for contract negotiations. it seems it is really contract, not so much program. am i missing something there? >> there were a number of things describing the program. if someone was writing this in isolation but would not just be looking at contract terms. there are broader discussions at the beginning. >> the reason for my question is, not having seen non- counterparts of the program, i am not comfortable with the term sheet. if we are talking about how comfortable are we with the shell contract, that is one issue. if it is extending that to the rest of the program as yet unseen, i am not comfortable with that. >> maybe we can change the tit

the year. >> >> commissioner torres: i do not think pg&e has the capacity to forecast accurately. local jobs, we have talked about that before. what local jobs will be coming to san francisco? is shell hiring local people? >> more notably some local jobs, we have been in discussions with noble americas. i will touch base on this as not having a single entity providing all services. we are talking about shell making sure that the buys are put in the system at the same time. these are large dollars but the one area where there is labour associated with it is the call center operations. dealing with customer interaction and the like. that is services we're talking about with noble americas about and they have expressed flexibility in how to -- who i are answering phones. they are a global commodities trading company. >> a temp agency? >> they are a broad company, dealing with shipping iron and other things across the world but they have acquired a subsidy that used to be a subsidy of -- and they do electricity commodity trading. when marin hired them they were sempra. they changed na