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Vermont's Worst Floods in Decades; New York City Subway Service Resumes; NYC's Three Airports Reopen; Irene in International Headlines; Obama to Speak Next Hour; Dangerous Flooding in Pennsylvania; Wind Damage in Rhode Island; Box Office Hit by Irene; MTV Music Award Winners; Beyonce's Having a Baby; Irene Damage Could Hit $10B; Gas Prices Holding Steady; Political Buzz; Irene Through iReporters' Eyes; Irene's Impact; Tracking Down the Lockerbie Bomber; Obama Picks Economic Adviser

Aired August 29, 2011 - 10:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


KYRA PHILLIPS, CNN ANCHOR: This hour, we measure the aftermath of Irene, the massive storm that paralyzed and pummeled the East Coast. It is blamed now for at least 21 deaths in nine states from Florida to Vermont.

At last count, about 3 million homes and businesses are still without power. More than $1 billion in damages blamed on the storm's winds, and the flooding damage will be much more costly.

And three Navy ships should be in position to aid relief efforts from New York to New England. CNN crews are in place to measure the storm's impact and the struggle for millions of Americans trying to move on.

We're going to take you from North Carolina to New England and from the White House to the CNN Weather Center. Let's go ahead to begin in Vermont, a state reeling from some of the worst flooding in decades that's where we find our Gary Tuchman. He is in Brattleboro, and Gary, what is the latest from there no now?

GARY TUCHMAN, CNN NATIONAL CORRESPONDENT: Well, Kyra, who would have thought that the green mountain state on the Canadian border would have been suffering so much from a tropical weather system.

The flood waters are receding, but there were a lot of flood waters and it left behind muddy driveways, muddy homes inside of the one- story home, and it is all emanating here in this town Brattleboro from what used to be a brook.

This was a quiet brook where children were swimming yesterday just for generations where children have swam in the wet stone brook, and it is now rapids five times as wide because of the explosive power of the waters from the tropical storm.

And look at what it has done to this business right here. This is an art studio. Fifteen artists worked inside of this building when the waters exploded through, it demolished that part of the building. That part of the building could fall into this raging brook at any time. Now, a short time ago we actually went inside of the building to take a look. We went inside, because artists were trying to recover some of the valuable artworks. We did not go into the damaged part of the building, but it was eerie being in there, because you felt it could collapse at any time.

As a matter of fact, my intrepid photographer, Bob Crowley, went inside there and heard cracking inside of the building and that is when they got the heck out. We talked to the owner of the building while we were inside. He is a nice guy who wanted to build the studio for the artists, and we asked him how shocked he was when he saw what happened.

(BEGIN VIDEO CLIP)

DAVID PARKER, BUILDING OWNER: It's a very old-fashioned shop. A couple thousand square feet and most of it is gone right now. So, the shock will come in a couple of three days, but for the time being, my responsibility is finding places for all of the tenants of the artists in the buildings. So they will have places to go tomorrow or the next day to continue working, because that is what this place is, a place for the artists.

(END VIDEO CLIP)

TUCHMAN: My other intrepid photographer, Tom Jeric, is now standing near the ledge taking the video of the raging waters, and I can tell you that the fortunate thing is that this is what we see after hurricanes and tropical storms the waters recede relatively quickly, but as I said it leaves the mud behind.

What we are seeing in this state more than 260 roads covered by the floodwaters. The state has beautiful covered bridges that you have seen in the movie, and four of them were destroyed from the raging floodwaters, but the saddest part of the story at least so far, one person killed.

A woman last night fell into a brook just like this about 20 miles to the west of us in a town of Wilmington, Vermont, and her body was found today. She was pronounced dead. Kyra, back to you.

PHILLIPS: All right. Our Gary Tuchman out there as he mentioned with Bob and Tom, two of our best photographers. Gary, thanks.

In New York, commuter trains and subway lines returning to service. Jason Carroll at Penn Station once again. All right, you said it was pretty calm, Jason, something like we don't normally see on an early Monday morning. Have things changed?

JASON CARROLL, CNN NATIONAL CORRESPONDENT: A lot of things have changed. You know, 7.5 million people use the transit system everyday here in the city, and sometimes at this hour, it feels like they are all right here at this spot.

But if you take a look around, you have got a few stragglers out here on a day like today at Penn Station. A lot of people deciding to obviously take a three-day weekend. Let me update you, Kyra, in terms of exactly what the situation is as it stands right now in terms of the transit system.

The subway system actually was up and running at 6:00 a.m. this morning. But, still, not as many trains as they normally have on the system, so there were a few delays there today, but officially subways are up and running, 6:00 a.m. and not the same situation for New Jersey transit.

For those folks trying to get in from New Jersey, the New Jersey transit system is still suspended and those trains. Same situation for Long Island railroad, we are seeing some suspensions there.

But there are some trains also running on the Long Island railroad so the folks coming in from that portion will have to check in first before they head into the city. All of the airports are up and running as of 7:00 a.m. this morning that includes LaGuardia, Newark and JFK that's for arrivals and departures.

But the airlines are in terms of what you should do with the carriers is to check before you head out, because there are still some residual delays depending upon which carrier you are flying on.

Other bridges and tunnels, they are open, Kyra, and operating, and the biggest problems are on Amtrak actually. The trains are running in the northeast corridor, but we are seeing suspensions for those people trying to get to places like Boston and Washington, D.C.

Yesterday, New York City's mayor said that it is going to require a little built of patience while the system tries to reboot itself.

(BEGIN VIDEO CLIP)

MAYOR MICHAEL BLOOMBERG, NEW YORK: It is fair to say that you are going to have a tough commute in the morning, and if you are pleasantly surprised, that's great.

(END VIDEO CLIP)

CARROLL: So, we did talk to a few commuters this morning who were in fact pleasantly surprised and they said barely anyone on the trains, Kyra, as they headed into the city. Back to you.

PHILLIPS: All right. Jason Carroll at Penn Station. Jason, thanks.

And air travel is also struggling to return to normal. New York's three major airports are back open along with smaller airports along the East Coast, and our Jacqui Jeras has been following all the flight delays, and what do you think?

JACQUI JERAS, AMS METEOROLOGIST: Things are moving. It's looking a lot better out there, Kyra. In fact, this is our flight explorer map and this shows you all the planes that are in the air as we speak and there are over 4,000 of them. So that's some good news.

During peak times, we're seeing between 5,000 and 6,000, so maybe it's a little bit lower than we would see on an average day, but overall the airplanes are out there, and it is going a little bit better.

All right, Titerboro though still reporting that they are closed. We have delays in San Francisco, but that is due to the low clouds that you will often see in the mornings this time of the year, and things should clear up for the afternoons.

Now we still are expecting some major delays though for the New York metros as well as Newark and it is just recovering. You know, it takes a while when you have canceled thousands of flights to kind of, you know, catch up from that.

In fact, our own Rob Marciano is trying to come back to be here for you tomorrow, and it might be me once again, because he can't get a flight back. So there you go. All right, San Francisco I mentioned and Miami and Denver, and also expecting some delays because of that.

Now something to think about as you are traveling across the roadways, there is a lot of water out there, and a lot of the roads have been washed out and a lot of bridges have been washed out. This impacts the I-95 corridor all throughout much of the interior.

So if you are trying to travel across the country, make sure you call ahead. A lot of those states have that 511 number that you call for any of these upstate because there are going to be issues on the roadways.

Major flooding still going on across about a dozen states here from North Carolina all of the way throughout New England, and a lot of the rivers have crested, a few haven't, they'll happen this afternoon. So the flash flooding event has started to go down.

But the cleanup is a long time, too. And Kyra, something else to think about, you know, is that there's been power lines that have been down. There are going to be boards all around with nails in them, and use a lot of caution if you are out there trying to cleanup.

Also speaking of the tropics, we just got to let you know what else is going out there. We have Tropical Storm Jose. We don't really need to worry about that one too much. We also have an area of concern up here. This is also going to be heading up to the north.

But what we want to keep our eye on is out here near the Cape Verde Islands and tropical depression number 12. This is forecast to become a hurricane. It's name would become Katia, and all the computer models are keeping it, you know, way out there in the ocean for probably at least a week before it would get anywhere close to land.

It's something to keep an eye on, and just a little note today is the day that Katrina made landfall on the Gulf Coast, and the name Katia replaces Katrina on that list.

PHILLIPS: Well, thank God things were not as devastating as Katrina.

JERAS: Yes, absolutely.

PHILLIPS: Thanks, Jacqui. Well, Irene also making international headlines. Let's go and check with our Zain Verjee. She's been monitoring how the flooding event has been playing overseas. Zain.

ZAIN VERJEE, CNN ANCHOR AND CORRESPONDENT, CNNI: Hi, Kyra. Yes, it really has. Much of the world's attention was focused on Irene. Let's take a look at "The Guardian," Kyra, this is the headline. It says, "Catastrophe averted at the cost of billion, but now floods loom."

This article goes on to say that a sign that the storm both proved not to be as fearsome as once threatened and that the evacuations had paid off. The cost of Irene was mostly being assessed in dollars and not human lives.

Take a look at the United Arab Emirates' paper, "The National," this is the headline, "New York defends hurricane precautions." It goes on to say precaution was clearly the watchdog for U.S. authorities mindful of the experience of Hurricane Katrina.

As Jacqui was saying, that Katrina had made landfall today actually all those years ago. The other point that I think that is interesting, too, Kyra, is that it is called a hurricane in your part of the world and the Caribbean and in the Eastern Pacific.

But in the Western Pacific, you know what they call it there, right? A typhoon and that's because the way they call it, but it is considered stronger than a hurricane because the waters in the Western Pacific are a lot warmer, and it creates more dangerous storm conditions because of that. Kyra, thought you would like to know.

PHILLIPS: You know what? I always love your bits of information. It makes me smarter every single day, Zain Verjee. Thank you.

In less than an hour from now, President Obama will focus on the nation's troubled economy. According to the two White House officials, he's going to nominate a new chairman of the White House Council of Economic Advisers. Dan Lothian is following that for us. So, Dan, what can you tell us about Allan Kruger?

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Right, Allan Kruger is likely to be the public face of the administration's economic team. He would follow Austan Goolsbee if confirmed. Austan Goolsbee obviously leaving earlier this month to return to the University of Chicago so who is he?

Well, he was a professor of Economics and Public Affairs at Princeton University. Also has published extensively on the economics of education, labor and unemployment among other things. He did work in the Obama administration during the first two years over the Treasury Department, and also during the Clinton administration at the Department of Labor.

President Obama in a statement this morning of Mr. Krueger said, quote, "as one of this country's leading economists, Allan has been a key voice on a vast array of economic issues for more than two decades. Allan understands the difficult challenges our country faces."

This announcement that the president will make at 11:00 in the Rose Garden comes ahead of this jobs speech that the president will make some time after Labor Day that's when the president will lay out a plan to bring down the high nation's high unemployment rate.

If confirmed Mr. Krueger would be a part of pushing this administration's policy, Kyra.

PHILLIPS: OK, Dan Lothian at the White House. Dan, thanks.

A legacy of a very soggy storm from downed trees in Connecticut to downed power lines. We're going to see how many people are still dealing without power.

And coming up in showbiz, Beyonce's big announcement at the MTV's music awards.

(C0MMERCIAL BREAK)

PHILLIPS: Stories across country now. People are addressing the concerns caused by Hurricane Irene. Flash flooding in Pennsylvania caused a lot of damage there and the worst may still be yet to come as swollen rivers are not expected to crest until later today.

(BEGIN VIDEO CLIP)

DAN DALY, RESIDENT: For an overnight shot, it is pretty impressive storm.

(END VIDEO CLIP)

PHILLIPS: Irene tore through Virginia Beach, Virginia. Drenching rains, high winds even a spinoff tornado. This is what it looked like there, and people ventured back into their neighborhoods saying that they are glad it was not worse.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: This is devastating.

UNIDENTIFIED MALE: It never happened before and I have been down here close to 30 years.

UNIDENTIFIED MALE: We dodged a bullet. I think God did us favor this time.

(END VIDEO CLIP)

PHILLIPS: And the storm tore through Providence, Rhode Island, as well, uprooting thousands of trees there. More than a quarter of a million people lost power.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I heard a big crash, and this big tree came down, and took down the telephone pole and the street lights and all of the electric knocked out.

(END VIDEO CLIP)

PHILLIPS: And Irene sure impacted the nation's power grid. At last count about 3 million homes and businesses are still without power. New York took the biggest hit about 830,000 homes are without power. Nearly 420,000 of those are on Long Island.

Now, in Connecticut, more than 600,000 homes are without power and nearly 420,000 homes in Pennsylvania still in the dark. In North Carolina, as many as 2,500 residents of the outer banks are stuck. They are actually cut off from the mainland, because the road along a narrow strip of land has been completely wiped out in some places.

CNN's Brian Todd had a chance to ride along in a National Guard chopper to see how those stranded folks are doing, and he joins us live now from Kill Devil Hills, North Carolina. Brian?

BRIAN TODD, CNN CORRESPONDENT: Kyra, 2,500 people as you mentioned still isolated on Hatteras Island, North Carolina. They are starting to get some connection to the outside world because ferry service has started to run in earnest this morning.

I believe, we are told they sent one ferry yesterday, but these are slow-moving ferries that take at least 2-1/2 hours each way to get there. So not sure how many of them are going to be able to get there with supplies, construction equipment and other things that are needed as quickly as the people there need it.

We did get some great aerial shots from our helicopter, from the National Guard as we went with them on a damage assessment mission around Hatteras Island and Ocracoke Island. And we saw flooded out roads, entire flooded neighborhoods, one older home not only hit with the hurricane, but caught on fire and burned down.

Then we saw the reason why this place was cut off. This incredible breach on Highway 12 running north to south that connects Hatteras Island to some of the other outer banks, the Barrier Islands, which then connects those islands to the mainland through causeways, but this section of Highway 12 is incredible.

It looks like a earthquake hit it. The roads caved in. It was chopped up. There are power lines down. The Atlantic Ocean is now running over it essentially. I asked a local resident, Matthew Williams just what people were thinking.

(BEGIN VIDEO CLIP)

TODD: What the philosophy? Why do people like you stay through this?

MATTHEW WILLIAMS, HATTERAS ISLAND RESIDENT: Well, I don't know. We grew up here, and the main thing is getting back. You know, when you are gone, you know, you are wondering what your belongings, and your property, and wondering how it is. You know, it is your whole life here, and it is kind of hard to leave.

(END VIDEO CLIP)

TODD: Now, another resident told us that folks there have lived through stronger hurricanes at least technically stronger, Category 2, 3 and even 4 hurricanes that they stuck around for.

But this same resident told us that even with that he has not seen flooding like this, and they have not had a breach on that highway, Kyra, since at least 2003 when Hurricane Isabel blew through, but that breach, we're told, maybe the most severe they have ever had.

PHILLIPS: Brian Todd in Kill Devil Hills. Brian, thanks.

Good news for drivers, lower gas prices could be coming as the effects from Hurricane Irene set in.

And moon walks and baby bumps. Of course, I'm talking about the Video Music Awards, what else. I will give you the highlights and Justin Bieber's new glasses. Straight ahead.

(COMMERCIAL BREAK)

PHILLIPS: Let's get some showbiz headlines for you. The weekend's top movie was "The Help" for the second straight week, but Hurricane Irene seems to have washed away the box office totals. As many as 1,000 theaters were closed because of the storm. A Hollywood reporter says Irene may have cut the ticket sales by $30 million bucks.

At the MTV Video Music Awards, Katie Perry picks up "Video of the Year" for Firework and Lady Gaga dressed there as her alter ego Joe Calderon gets "Best Female Video Award" for Born this Way, and Justine Beaver with a smile there.

And a nice surprise at the VMA after her performance, Beyonce, ready for this? She gets ready to pop the vest and shows off the baby bump and the crowd went wild. There is the shot of the husband Jay Z getting the love from Kayne West.

And some parts of the northeast, the floodwaters are still rising and so are the damage estimates. Government says the damage could top $1 billion just from the storm's winds. The flood damage is still being calculated and will certainly be much greater.

One insurance analyst tells us Irene's total price tag could be around $10 billion, which is not as bad as initially feared and falls well short apparently of the costliest natural disaster in U.S. history, Hurricane Katrina.

That struck the Gulf Coast six years ago today causing $45 billion in damage. Alison Kosik of the New York Stock Exchange monitoring a new survey on gas prices and the impact from Hurricane Irene. Alison --

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Exactly, Kyra. This is coming from the Lundburg Survey that the national average for a gallon of regular sitting at $3.61. You know, this crisis has really does not budged over the past two weeks. Because the oil prices, they've been holding steady. So what you see happening in oil prices you will see happen with the gas prices. Now we did see this big sharp drop in oil and gas prices happen earlier in this summer because of the slowing economy.

We saw oil was above $100 a barrel in June then it fell back below $85 a barrel, but that slide appears to be over as gas prices and oil prices appear to be levelling off. Kyra.

PHILLIPS: All right. Are you expecting or what kind of impact are you expecting from Hurricane Irene?

KOSIK: Well, with Hurricane Irene, you know what, expect the unexpected, because analysts think that the prices will fall a bit, which we definitely don't always look to and expect when we see hurricanes come, because the fact is that the damage wasn't as bad as feared.

You know there are a lot of refineries located along the East Coast, but they weren't damaged. Also, you know, the hurricane forced a lot of people to stay at home. So all of us, we were sitting at home getting stir crazy and not out driving around so we didn't have to refill our gas tanks.

And all that means is that there's lower demand, so we could see the prices drop a bit, which is good news, and good news to come out of the storm, Kyra.

PHILLIPS: OK, Alison, thanks.

Just ahead, we know that in any natural disaster, there are political winners and losers. So our political panel will weigh on what they think.

(COMMERCIAL BREAK)

PHILLIPS: Check top stories now. Japan is about to get a new prime minister. The finance minister will be Japans' sixth leader in five years. He is expected to become prime minister after confirmation by parliament. Japan's current prime minister was he heavily criticized after the tsunami and earthquake in March.

Hurricane Irene forced the postponement of the dedication of the Martin Luther King Jr. memorial in Washington this weekend. The 30- foot tall sculpture of King on the National Mall will be officially dedicated in the fall.

And people of New Orleans are recalling another Hurricane Katrina, and the hurricane struck the city six years ago today. Flooding in much of the city has devastated much of the Gulf Coast.

"Political Buzz," your rapid fire look at the hottest political topics of the day, three questions and 30 seconds on the clock, and playing today is Democratic strategist, Maria Cardonia, Pete Dominick, host of XM radio's "Stand Up with Pete Dominick" and CNN contributor and talk radio host, Dana Loesch. All right, guys, first question. President Obama is saying this isn't over. Governor Christie telling the folks to get off of the beach or even the North Carolina Governor Perdue being front and center, the damage from Irene wasn't as bad as feared.

But in any national disaster, there are political winners and losers. So what do you guys think, who won and lost, Maria?

MARIA CARDONA, DEMOCRATIC STRATEGIST: I think that the winners here, Kyra, were from the president on down to state and local elected officials including Mayor Bloomberg, the legend of Cory Brooker in New Jersey continues to grow as a response of leader, mayors, governors, Governor Christie, I think did a great job.

And Governor O'Malley, Governor Perdue as you mentioned, Governor McDonald, I think it's really a testament to how prepared the federal government was to basically coordinate the operations with the state and the local officials.

The losers were people like Ron Paul who thinks that FEMA should not exist and people like Rick Perry who wants to make Washington inconsequential, to those Americans whose lives were saved that's not a good thing.

PHILLIPS: Dana --

DANA LOESCH, RADIO TALK SHOW HOST: It is not a Monday without Maria, God bless you.

PHILLIPS: Back at you, Dana.

LOESCH: Kind of, in a weird way, agree with her. I think that state officials did a fantastic job because this is what state officials need to do, this is how you respond to disasters.

But ultimately I think the winners were the American people, because we kept hearing that this is so much worse than it actually was, and still, there is damage and lives lost.

But I mean, think about how bad this could have been and compare with the results that we actually saw. So I think that it really comes down to, again, American people won.

PHILLIPS: OK, Pete?

PETE DOMINICK, HOST, STAND UP ON XM RADIO: Well, the political winners, and in this case any time there's a hurricane, all presidents and all politicians at the federal level, they think about Katrina. Nobody wants to be George Bush and heck of a job brownie.

So they were prepared for that politically, but yes, I think government wins because people reminded of what government's role is, what their responsibility is and mostly, they did a great job.

But remember, without the federal government, states would pick up that 75 percent of the cost themselves. The federal government is going to do that in places that were declared a natural disaster area or emergency disaster, whatever they call it.

PHILLIPS: All right.

Part two here, Ron Paul saying that we should get rid of FEMA. Michelle Bachmann says the storm and earthquakes are signs from God.

OK, guys, are these candidates ready for the big office?

Dana?

LOESCH: Well, what I don't understand is how FEMA went from being Satan's spawn under Bush to now it's like yes, FEMA. I don't think that there's any argument that FEMA is a -- a completely corrupt department. I don't think that there's any argument. You had the Florida "Sun Sentinel," the "Los Angeles Times," "The Journal of Economics" that have all done in depth investigative reviews and studies of how much money is actually wasted by this department.

But I think what Paul was actually saying is that we need to really rely, again, on the states and states being able to respond.

For instance, we had -- we had family and friends who lived in New Orleans...

(BUZZER)

LOESCH: -- and there were -- they actually -- they stopped the Red Cross from coming in and donating. They stopped locals and -- and charities from coming and from helping out. That's -- that's not disaster relief, that's control.

PHILLIPS: Maria?

CARDONA: I want to answer for Dana's first question, is Hurricane Katrina. That's why FEMA became yes, FEMA now, whereas before, they had absolutely no clue what they were doing.

In terms of your question, Kyra, absolutely not. They are not ready for prime time. Look, under a Ron Paul administration, we would already have legalized marijuana, the Department of Education would have been wiped out. So people would be mellow, they would be undereducated and perhaps they wouldn't even know if their neighborhood was underwater and no one was coming to rescue them.

(LAUGHTER)

PHILLIPS: Pete?

DOMINICK: Well, Ron Paul is right about marijuana and -- and foreign policy. But on this whole FEMA thing, Michelle Bachmann talking about that, you know, God and, you know, the earthquake -- was behind the earthquake and -- and the hurricane, I agree with her. Michelle Bachmann is right, God is mad. But he'd mad that American people would possibly consider her as president of the United States.

(LAUGHTER) PHILLIPS: Oh, whoa. Your buzzer beater now. Twenty seconds each.

Here we go. George Pataki says he's not going to make a presidential run in 2012. At least he won't be another candidate to throw his hat into the ring only to have voters say, who exactly is that?

So who else do you want to see not run, guys, in the 2012 race, any party?

Dana.

LOESCH: Oh, goodness. Well, I'm kind of glad that Pataki is not running, because I always thought of him as a rhino. But I think that we have a lot of Republican stars that are not yet ready for a presidential race. I'd like -- perhaps Mike Pence will run in 2016, not now. Marco Rubio, I think, is a safe bet for 2016. Chris Christie maybe for 2016. But none of them now, not -- no -- no offense, guys, but just not right now.

PHILLIPS: Maria?

CARDONA: I think for me, as the Democrat on the panel here, the question actually does need to be the opposite, because I would love all of those people to actually jump in and run.

First on my list, Sarah Palin. Second on my list, Christine O'Donnell. She might not even not only be able to talk to God, she can talk to the Goddess. So I think that you can also look at Alan Keyes.

Where is that guy?

Tom Tancredo would be great. Jump in, everybody. The more the merrier.

(BUZZER)

PHILLIPS: Pete Dominick?

DOMINICK: Yes, Alan Keyes was a tough was a tough candidate. Also, Pat Robertson or any of these people that, like Michelle Bachmann, think God is responsible for the natural disasters because of things that are happening in America.

I'd like to announce today, Kyra, I have decided I am not running for president in 2012. A lot of people are going to be very, very happy about that.

PHILLIPS: Oh. We are...

UNIDENTIFIED FEMALE: Oh, that's to bad, Pete.

DOMINICK: Yes.

UNIDENTIFIED FEMALE: Well, the three...

(CROSSTALK)

PHILLIPS: -- the three of us ladies here...

UNIDENTIFIED FEMALE: -- might run.

PHILLIPS: Yes, we're very disappointed.

UNIDENTIFIED FEMALE: Absolutely.

DOMINICK: I will be getting the e-mails from all of you. Yes, I know. I'm sorry.

(LAUGHTER)

PHILLIPS: See you guys.

DOMINICK: Maybe next...

UNIDENTIFIED FEMALE: There's still time.

DOMINICK: Maybe next time.

PHILLIPS: Yes. There you go. You never know up to the last minute.

All right.

Well, the New York City...

DOMINICK: There's never been a...

PHILLIPS: The New York City hospitals that evacuated the patients because of Irene, well, they're slowly getting back into place. We're going to have a live report and an update just after the break.

(COMMERCIAL BREAK)

PHILLIPS: Stories across the country now. People assessing the damage caused by Hurricane Irene, starting in City Island, New York. Downed trees and flooding littered the Bronx island. But some felt they actually dodged a bullet.

(BEGIN VIDEO CLIP)

RIC SNAPP, CITY ISLAND, NEW YORK RESIDENT: We spent the night above ground, as we were supposed to. But we came down here and saw the broken tree. And my first thought was, oh, my God, my house is in really terrible shape. And then my eyes follow up and I see the rain gutter is the only significant damage to my entire house.

(END VIDEO CLIP)

PHILLIPS: And in Boston, transit services were shut down Sunday. More than a dozen shelters were opened.

Still, this Boston resident says she feels pretty lucky.

(BEGIN VIDEO CLIP)

KIRSTEN BRIEVE, BOSTON RESIDENT: We were thinking Irene was going to be a lot worse. So I guess we're lucky in that respect. But we'd like our power back.

(END VIDEO CLIP)

PHILLIPS: And she's not the only one. Power is now one of the biggest problems for many people there. The National Grid's Timothy Horan, he's never seen anything like it.

(BEGIN VIDEO CLIP)

TIMOTHY HORAN, NATIONAL GRID: When you look along the whole East Coast, it's millions of customers out of power and it's -- it's pretty -- pretty unprecedented.

(END VIDEO CLIP)

PHILLIPS: Well, CNN reporters and our affiliates brought us crucial reports from all over the East Coast. Great iReporters, well, theory showed up, stepped up and told us what was happening all around them.

Jacqui Jeras was monitoring so many of them. It was pretty incredible and it gave us an insight to places where we couldn't get to.

JACQUI JERAS, ATS METEOROLOGIST: Yes, absolutely. And, you know, and as these things are happening, as well, Kyra. And -- and so many of them focus on water and all the flooding that we've been dealing with.

Take a look at that first one that we have from you.

This is from Chad Stewart (ph) in Nags Head, North Carolina. He says he lives about 150 yards from the sound there. And so all this surge came in with a lot of debris in his yard. He said it didn't damage his home, thankfully. He did lose his car, however, and also his washer and dryer.

This next one from Ryan Lakee (ph). This is from Rahway, New Jersey. He's got some very -- actually, no. This is the Fleischmann, New York one. Sorry. This is Chris Cow (ph). This area overcome with flooding. This is in the Catskills, Kyra. So, you know, when you get that extra elevation in there, it can cause the flooding to become much worse. He said they were caught off guard a little bit here, but people were evacuated and were able to get out of that area in time.

PHILLIPS: Pretty incredible. And then, of course, you saw the one, that 5-year-old girl that was phoning into us, right?

JERAS: Yes.

PHILLIPS: Yes, that was -- I don't know if we've got that one hand or not.

JERAS: (INAUDIBLE).

PHILLIPS: Do we have that, guys?

JERAS: She's from -- from Pennsylvania.

PHILLIPS: OK.

JERAS: And she was out there with her umbrella.

PHILLIPS: Amazing.

JERAS: I actually think she's sent us iReports before, believe it or not.

PHILLIPS: Oh, has she? OK.

JERAS: In other rain events. So, yes, I think she's going to be on "AMERICAN MORNING" tomorrow morning, too...

PHILLIPS: Well, they...

JERAS: -- by the way.

PHILLIPS: -- they came in all ages and -- and all -- from all different parts of the states affected.

JERAS: And we appreciate them.

PHILLIPS: Yes. Oh, so much.

JERAS: And always remember safety, too, by the way. When you're getting these iReports, keep your safety number one. And then get your video.

PHILLIPS: Thanks, Jacqui.

Well, he's the world's fastest man -- perhaps a bit too fast. We're going to show you exactly what we mean next.

And nearly three million people without power after the hurricane. Coming up, we're going to see how long it's going to last.

(COMMERCIAL BREAK)

PHILLIPS: All right. It's time for a quick check of sports.

Despite despite Irene's impact on New York, the U.S. Open will start today. There was some concern with all the rain, but the U.S. Tennis Association is planning to start in just about 15 minutes. The top seeds, for the men, Novak Djokovic, "the Joker," as we know him. And then for the women, Caroline Wozniaki.

Now, golf fans know her, of course, as Rory McIlroy's lady friend.

And Usain Bolt is the world's record holder in the 100 meters. But yesterday, he was too fast in the final of the world championships. He jumped the gun and was disqualified from defending his title.

Well, check out the reaction. Yes, he knew he messed up.

And you can't get any closer to the heart of America's favorite pastime than the Little League World Series, right?

Nick Prato at the plate for the team from Huntington Beach, California. The score tied, one all, bases loaded, two outs in the bottom of the sixth. Yes, a big hit to center field. And (INAUDIBLE) in for the boys from California 2-1 over Japan.

And for nearly three million people, Hurricane Irene not a fading memory. They're without power right now. Chris Olert is with Con Edison.

He's joining us out of New York.

Chris, tell us how bad the situation is where are you right now and what particular areas you're working on.

CHRIS OLERT, ASSISTANT DIRECTOR, MEDIA RELATIONS, CON EDISON: Kyra, good morning.

Con Edison has about -- we've restored about 100,000 customers who lost electricity courtesy of Irene. We -- this is the worst overhead storm in Con Edison history. We have about 90,000 customers to go. Westchester was -- Westchester County, north of New York City, was especially hard hit. There are about 56,000 customers still without electricity. Our goal is to get them all back late Thursday.

PHILLIPS: By Thursday. So -- so, you know -- you know how people are, Chris. And they don't always understand the situation. They're going to say why the heck is it taking so long?

Can you sort of explain why it's going to take four days?

OLERT: Kyra, as everyone has seen on CNN, the damage from Irene was just horrific -- trees down, flooding. It takes a lot of time to get the -- the trees cleared, to let the water subside. We must get to equipment safely. That's for Con Edison employees, for Con Edison customers. Safety is number one. We just can't go plowing in there like -- like some rugby players on speed or something. We have to do this scientifically and carefully.

PHILLIPS: And do you -- do you have enough manpower and womanpower to get it done or are you seeking outside help?

OLERT: We've -- we started to seek outside help on Friday. Con Edison has got about 800 men and women from the Midwest and the South, because the utilities that we normally would use to help us out, we would help them out, they've had the same problems from Irene. So we've called to Texas, Missouri, Mississippi, Texas, Colorado Ohio, Wisconsin. And they started to file in this weekend. And they are, right now, working side by side with Con Edison crews to get New Yorkers' electricity safely restored.

PHILLIPS: Chris Olert with Con Edison.

Chris, thanks for calling in.

OLERT: Thank you, Kyra.

PHILLIPS: You bet.

A check of the stories making news later today. President Obama speaking at the top of the hour on nominating economist Alan Krueger to head the Council of Economic Advisers. Senator Jim Inhofe of Oklahoma will endorse Texas Governor Rick Perry for president. That's at 3:00 Eastern.

And Dr. Conrad Murray, Michael Jackson's doctor, has a court hearing at 4:30 Eastern time.

It caused international outrage when the Lockerbie bomber was released. And within the chaos of Libya, we lost track of the dying terrorist -- until now.

Nic Robertson tracked him down.

(COMMERCIAL BREAK)

PHILLIPS: Libyan rebels now pushing toward Moammar Gadhafi's hometown of Sirte. NATO forces have been bombing SCUD missile sites in the town ahead of the rebel offenses. There's also been growing tension among the rebels over the announcement that some former members of Gadhafi's regime have been added to the new rebel government.

Well, he was sent back to Libya to die. The terrorist known as the PanAm bomber was designed with terminal cancer, so the Scottish government released him from prison, defending its decision amid international outrage.

Since the chaos that erupted in Libya, we lost track of Abdel Basset al-Megrahi -- one of the last men alive who holds the secrets behind the 1988 PanAm bombing of Scotland that killed 270 people, 189 of them Americans.

But now in a CNN exclusive, senior international correspondent, Nic Robertson, actually tracks down the convicted terrorist in Libya on his death bed.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): We found Abdel Basset al-Megrahi's villa in an up market part of town. At least six security cameras and floodlights outside.

(on camera): This is Megrahi's house. This is where he's been living for the last couple of years. We're going to knock on the door and see if we can get any answer.

Hello?

(voice-over): For 15 minutes or so, nothing.

(on camera): I'm not sure if they've heard me, so let's try the last ditch means, which is to shout over the wall.

Hello? Hello, hello.

(voice-over): Then, all of a sudden, someone comes. Nothing prepares me for what I see -- Megrahi, apparently in a coma, his aging mother at his side.

KHALED AL-MEGRAHI, SON: We just give him oxygen -- nobody give us the advice and some food by injection. If you see, his body is weak.

ROBERTSON: He had been expected to die almost two years ago, but convicted PanAm bomber, Abdel Basset al-Megrahi, lives, only just. This wasn't the way he looked when he was released from a Scottish jail two years ago. He came home to a hero's welcome, freed on compassionate grounds, because doctors said he'd be dead in three months.

Almost immediately, he began renovating this palatial house -- money no object.

(on camera): It doesn't take long walking around this building before you begin to realize, and looking at the marble here on these expensive fittings, to realize that it appears Megrahi was being paid off handsomely for all those years he spent in jail.

(voice-over): In the two decades since the bomb exploded on board PanAm 103 over Lockerbie, killing 270 passengers, crew and townspeople, it seemed the secrets of the attack would die with the bombers. Megrahi always maintained he was innocent.

Just a month ago, in a rare public sighting, Moammar Gadhafi had him literally wheeled out for a pro-government rally. I'm seeing him now for the first time in two years. He appears to be just a shell of the man he was -- far sicker than he appeared before.

(on camera): Has he been able to see a doctor?

AL-MEGRAHI: No, there is no doctor and there is nobody to ask. And we don't have any phone line to call anybody.

ROBERTSON: What -- what's his situation right now?

AL-MEGRAHI: He stop eating and he sometimes is come in coma.

ROBERTSON: Coma. He goes unconscious?

AL-MEGRAHI: Yes. We just sit next to him and...

ROBERTSON (voice-over): All that's keeping him alive, they say, oxygen and a fluids drip. I ask about demands he return to jail in Scotland.

AL-MEGRAHI: My dad, he's still in the house and if you send him to Scotland, he will die by the way, here or there.

ROBERTSON: Do you know how long he has left? AL-MEGRAHI: Nobody can know how long he will stay alive. Nobody know.

ROBERTSON (voice-over): It seems I've arrived too late. He's apparently in no state to talk. Whatever secrets he has may soon be gone.

(END VIDEO TAPE)

PHILLIPS: And just to ask you again about those secrets, Nic. We talked last hour. And I'd like to explain to our viewers again, this was unbelievable access that you attained here. And a number of us curious about the issue of the PanAm bombing. Obviously, you're in a situation, very lucky to be in. But at the same time, you want to ask that million dollar question.

Describe the environment.

And did you feel comfortable working your way around that?

ROBERTSON: Well, what I really picked up and what I felt most out of this was a family hugely on edge about a security situation enveloping them -- around them in the city of Tripoli itself. And they're sort of living behind a sort of fortress wall and the security cameras and the -- and the gates. They're very concerned about their security.

And you really -- I really I picked up, as well, on the fact that -- that this man, Megrahi, appears to be -- I really got the sense from him that he's about to die. They're sitting there in the room with him as he's really in front of them, wasting away. They don't know how the treat him properly.

The family and Megrahi have always maintained that he was innocent. The point that they wanted to get across to me was it didn't matter, because I asked them, should he be taken back to Scotland to finish off his jail term there?

And they said, look, just let him die. Let him die here. Let him -- let him live his last days or weeks or whatever in peace at home.

So it really was a question that they didn't really want to answer. It didn't feel like the right environment, if you will, to be pushing them on that.

I was given two minutes in there when I was first brought in. They gave me, in the end, 10 minutes. I was not a welcomed visitor, just somebody they wanted to get, I believe, the story out about how sick he was -- Kyra.

PHILLIPS: How sick he was. And also a man convicted of killing 270 people, 189 of them Americans.

Nic Robertson, pretty tremendous access.

Thank you. And coming up in the next hour of CNN NEWSROOM with Suzanne Malveaux, millions of people still without power after Irene. The storm also flooded basements, damaged a lot of homes.

So what do you do if your house was hit?

We're going to tell you how to make a claim, how to get your money back. That's in the next hour of CNN NEWSROOM.

(COMMERCIAL BREAK)

PHILLIPS: All right. Well, we all know the nation's economy, it's not looking so good. But in minutes, President Obama will talk about his nominee to try to make a difference to head the Council of Economic Advisers.

Let's look ahead at jobs and that announcement.

CNN White House correspondent, Dan Lothian, at the White House from the Rose Garden, where that announcement will be made.

The president also hits the road this week, right -- Dan?

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: That's right. Tomorrow, the president will be going to Minneapolis, where he will be delivering remarks at the national American Legion convention.

I'm told that that's mostly veterans who will be there, but that the president will also talk about how service members and their families are impacted by the economy. And then, of course, we've been talking all about how the president really wants to talk and focus on jobs post-Labor Day. The president will be rolling out his jobs proposal, a way for the administration to try to bring down the high unemployment rate. So that's something the president has been working on while on vacation on Martha's Vineyard, expecting that to be rolled out some time after Labor Day.

PHILLIPS: All right. And, Dan, we've got about a minute to the top of the hour.

Is the president expected to step out?

What -- what time?

Do we have any idea?

LOTHIAN: We have just been given the two minute warning, so the president will be stepping out and formally nominating Mr. Krueger. He is a professor of economics and also public affairs at Princeton University, an economist who's written a lot about the economy and education, labor and employment. So he'll be a key member of the administration's -- the face of the administration's economic team.

PHILLIPS: Dan, appreciate it.

We'll take it live as soon as it happens. We'll have your next political update, also, in just about an hour, and, of course, all the political news you can find it 24-7 on our Web site, CNNPolitics.com.

That does it for us.

We'll see you back here tomorrow morning.

Suzanne Malveaux at the post.