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PG&E plans to appeal $1.4B penalty in deadly blast

By WTOP Staff

SUDHIN THANAWALA
Associated Press

SAN FRANCISCO (AP) — Pacific Gas & Electric Co. plans to appeal a $1.4 billion penalty recommended by California regulatory judges for a gas pipeline explosion in a San Francisco suburb that killed eight people, the utility said in a filing Wednesday with the U.S. Securities and Exchange Commission.

The utility said it plans to appeal to the California Public Utilities Commission within 30 days. The filing did not list a reason for the appeal, but PG&E spokesman Greg Snapper said the utility wants the commission to take into consideration the $2.7 billion PG&E has or will spend on gas pipeline safety improvements.

“We’re planning to ask the commission to review yesterday’s recommendation to make sure that a final penalty counts all of the company’s safety investments and actions to make the gas system the best in the country,” Snapper said.

He said any penalty should also directly go toward public safety. By far the largest share of the $1.4 billion penalty recommended by two administrative law judges Tuesday would go directly to the state with no strings attached.

The $950 million portion marked for the state’s general fund also drew objections from a private advocacy group for ratepayers and the city of San Bruno, the San Francisco suburb where the fiery 2010 explosion destroyed more than three dozen homes and became the state’s deadliest utility disaster in decades.

Those funds can be spent any way the governor and Legislature see fit, said H.D. Palmer, a spokesman for the state Department of Finance.

The penalty — the largest safety-related levy ever against a public utility in the state — also includes $400 million for pipeline improvements and about $50 million to enhance pipeline safety. PG&E cannot recover any of the money from customers.

Any appeal would first go to the administrative law judges who recommended the penalty before going to the state utilities commission for consideration.

The blast occurred when a 30-inch natural-gas transmission line installed in 1956 ruptured.

A 2011 investigation by the National Transportation Safety Board concluded the break occurred in a weak weld in a pipeline that PG&E records had shown as being smooth and unwelded. Among other safety failings, PG&E let an hour and 35 minutes go by before shutting off the natural gas fueling the fire, the federal investigators said.

The utilities commission previously ordered PG&E to pay $635 million for pipeline modernization — money that also cannot come from PG&E customers.

This year, federal prosecutors separately indicted PG&E on 27 counts alleging the utility violated pipeline safety requirements.

PG&E faces additional fines of more than $1 billion if convicted of the federal charges, which are separate from the state financial penalties. PG&E has pleaded not guilty to the counts.

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Associated Press writers Ellen Knickmeyer, Garance Burke and Donald Thompson contributed to this report.

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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