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PG&E charged with obstruction over San Bruno blast

By WTOP Staff

PAUL ELIAS
Associated Press

SAN FRANCISCO (AP) — A federal grand jury charged Pacific Gas & Electric on Tuesday with lying to federal investigators in connection with a fatal pipeline explosion that killed eight people and leveled a suburban Northern California neighborhood in 2010.

The U.S. attorney in San Francisco announced the obstruction of justice charge and 27 related counts, which are in a new indictment charging the utility with felonies. It replaces a previous indictment that contained 12 counts related to PG&E’s safety practices, but not obstruction.

Prosecutors say PG&E hampered the investigation by lying to National Transportation Safety Board investigators after the blast. In particular, PG&E officials are accused of trying to mislead the NTSB about the pipeline testing and maintenance procedures the utility was following at the time of the explosion and for six months after under a company policy that did not meet federal safety standards.

“The consequence of this practice was that PG&E did not prioritize as high-risk, and properly assess, many of its oldest natural gas pipelines, which ran through urban and residential areas,” the U.S. attorney’s office said in a statement.

The other charges accuse the utility of failing to act on threats in its pipeline system even after the problems were identified by its own inspectors. The indictment charges PG&E with keeping shoddy records, failing to identify safety threats and failing to act when threats were found.

NTSB investigators later found that PG&E had inaccurate records on its more than 6,000 miles of gas transmission lines, and that as a result hadn’t tested for the defective seam weld that ruptured a pipeline and ignited the fireball that leveled several blocks and left eight people dead in San Bruno.

No employees or executives have been charged in the San Bruno disaster. Prosecutors could still file another indictment charging individuals.

The utility announced in June that it was expecting the new indictment. PG&E spokesman Greg Snapper said company officials had not yet seen it.

“However, based on all of the evidence we have seen to date, we do not believe that the charges are warranted and that, even where mistakes were made, employees were acting in good faith to provide customers with safe and reliable energy,” he said in a prepared statement.

The new charges expose PG&E to more than $1 billion in fines. It had preciously faced up to a $6 million fine under the old indictment.

In addition, the utility is facing lawsuits and $2.5 billion in civil fines from regulators, including the state Public Utilities Commission. San Bruno city officials on Monday demanded the head of the PUC resign, alleging the agency had improper contacts with PG&E.

Along with causing the deaths, the explosion injured dozens and destroyed 38 homes. Nearly four years later, the neighborhood about 12 miles south of San Francisco is still recovering.

“What the U.S. prosecutor is saying is that PG&E did not use the proper procedure under the law for evaluating the integrity of their pipelines,” San Bruno City Manager Connie Jackson said. “On top of that, they represented to NTSB that the procedure they were using was correct and approved” when it wasn’t.

On Tuesday, San Bruno Mayor Jim Ruane said “the new criminal charges demonstrate a pattern of deceit by PG&E.”

PG&E said in May that it has committed $2.7 billion over the next several years for safety-related work following the incident.

Its profits were weighed down in its most recent quarter by $40 million in legal and safety improvement costs tied to its natural gas business.

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Associated Press Writers Ellen Knickmeyer and Lisa Leff contributed to this story.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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