Return to Transcripts main page

CNN Live Today

Firefighters Battle California Wildfires; Residents and Business Owners Return To New Orleans; Consumer Confidence Falls To New Low; Tips on Saving Money On Energy This Winter

Aired September 29, 2005 - 10:00   ET

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

CAROL COSTELLO, CNN ANCHOR: I just combined your name.
DARYN KAGAN, CNN ANCHOR: Karyn Dagan.

MILES O'BRIEN, CNN ANCHOR: Daryn Dagan. Daryn Kagan.

KAGAN: My tenth grade biology teacher, Mr. Lobe (ph), used to do the same thing. Daryn Dagan.

COSTELLO: So, see, it brought back great memories.

KAGAN: (INAUDIBLE). He was a great teacher, too.

MILES O'BRIEN: I think you owe him a term paper but that's we'll talk about that later.

KAGAN: A lab or something.

You guys have a great day.

We will get started. And we are going to start in my home state, Southern California.

We are watching these fires. Once again, about eight different fires burning around Southern California. This one the Chatsworth fire we're seeing live pictures there. Another structure has been consumed by the fires and we're going to get a live report from there coming up in just a minute.

Right now, let's take a look at what's happening "Now in the News."

And topping our headlines this morning. Judge John Roberts appears to be about 90 minutes away from becoming the new chief justice of the United States. The Senate convened about 30 minutes ago to finish its deliberations on the historic nomination. By all accounts, Roberts is assured confirmation when the roll call vote is taken about 11:30 a.m. Eastern.

Congress today is getting a status report from senior Pentagon officials on the war in Iraq. This is a live picture from the Senate Armed Services Committee hearing, which got under way about 30 minutes ago. Defense Secretary Donald Rumsfeld and his top military adviser will also testify before the House Armed Services Committee. We'll bring you the highlights of that testimony. Amtrak has had its second accident in as many days. The Texas Eagle was carrying 90 people. It derailed overnight near Blackwell, Missouri, while traveling slowly through a canyon. Officials say it may have been caused by a rockslide. No major injuries were reported. Yesterday a mother and child were killed and another child was hurt when an Amtrak Acela train smashed into their car at a crossing in Waterford, Connecticut.

In Las Vegas, an air traffic controller reportedly is off the job today and headed for more training after nearly guiding one airline into the path of another last week. According to today's "New York Times," America West Flight 539 was cleared for takeoff at the same time Canada Flight 593 was given the OK to cross the runway to the terminal. "The Times" says preliminary investigations show that the two planes came within 100 feet of colliding.

Good morning to you on this Thursday morning. I'm Daryn Kagan at CNN Center in Atlanta.

Our top story this morning, a rapidly moving wildfire north of Los Angeles. It's threatening about 100 homes in the Chatsworth area. We first told you about it yesterday when it was a relatively small brush fire. At that time, fire crews were struggling to get it contained before it could escape its remote area. Unfortunately, the Santa Ana winds conspired against them. Now they're racing to save the property. CNN's Dan Simon joins us. He is at the scene with an update.

Dan, good morning.

DAN SIMON, CNN CORRESPONDENT: Good morning, Daryn.

We're up to more than 7,000 acres right now. And if you have a live look, there is a building on fire. This is the Rocketdyne facility. And Rocketdyne is a research and development corporation. They make rocket engines there. And, as you can see, one structure has totally burned to the ground.

There have also been some homes that have really been threatened by this fire. One home so far totally destroyed. Several hundred people have been evacuated. And I'm actually with one of these evacuees right here. This is Priscilla Weems.

Priscilla, I can't imagine what's going through your mind right now. Tell us how you're holding up?

PRISCILLA WEEMS, FIRE EVACUEE: I'm just barely holding it together. My family and I.

SIMON: You're here with your pet Chihuahua. You got a knock on your door at 2:00 in the morning. Tell us about that.

WEEMS: I got a nice bang on the door that said you have about five minutes to gather your stuff and get out of the canyon. And I went outside and my neighbors and all of us were being pulled out. Gave us enough time to just grab some clothes, grab the horses, and bring them down the hill.

SIMON: And then you came down to this area, where the media is, because you're trying to get the most recent information. Do you have any idea on the status of your home?

WEEMS: We don't have any idea. The fire department is not going up there. I mean, since we've been out since 2:30, they told us that because there weren't that many structures up there, it wasn't worth sending up the firemen and putting out the fires. So we could all be homeless.

SIMON: Well, we certainly wish you the best of luck and, you know, take care. OK. Thanks very much.

Once again, 5 percent of this fire has been contained. A couple of shelters have been set up in the area and we know that at least 500 people have sought shelter. But once again, the flames really burning here. You can see the smoke spreading behind me. The concern today, of course, is the wind. If the wind kicks up, then this fire could really spread and put a lot of structures and people in danger.

Daryn, back to you.

KAGAN: Well, and this is almost like clockwork when you look at the calendar in Southern California, Dan, in terms of when the Santa Ana winds and that drier weather finally just has an impact on the land.

SIMON: You're absolutely correct. This is the time when these winds really kick up and it's been very hot the last few days and that's really making battling this blaze difficult. But 1,000 firefighters on hand to get a handle on this thing and hopefully we'll get some good information that we can pass along a bit later on to you.

Daryn.

KAGAN: All right. Thank you for that. Dan Simon live in Southern California.

As he was mentioning, the Santa Ana winds not helping the situation. Things still very warm and windy in the Southern California area. Here's Bonnie Schneider with more on that.

(WEATHER REPORT)

KAGAN: And now the latest on the aftermath of Hurricane Katrina. Beginning today, New Orleans Mayor Ray Nagin is opening the city gates to business owners who want to go back to the French Quarter and the Central Business District. And residents living in these eight zip codes can come home beginning tomorrow. But even as people flow back, life is far from returning to normal as you'll see in this report from Ted Rowlands.

(BEGIN VIDEOTAPE) TED ROWLANDS, CNN CORRESPONDENT, (voice over): Degas House is an historic building near the French Quarter. Now a bed and breakfast, it will reopen for guests as early as next week. There will be some inconveniences, however. No electricity. The water is unsafe to drink and debris is scattered everywhere. David Villarrubia owns Degas House.

DAVID VILLARRUBIA, OWNER DEGAS HOUSE: Hospital services. There are no pharmacies. There's no way to even restock water. And, I mean, that's a basic element. You can bring in food and water for a day, exit at night, I think that works.

ROWLANDS: New Orleans mayor, Ray Nagin, told members of the Louisiana State Legislature that except for the hard-hit ninth ward, he plans to have the entire city opened by next week. The mayor says he's pleased with the way people are returning to New Orleans, but he's upset with how the state has reacted. Specifically he was unhappy with the state health warning that termed New Orleans "extremely dangerous."

MAYOR RAY NAGIN, NEW ORLEANS: We're doing it as quickly as we can and we're trying to make sure it's as safe as we can. But we're continuing to send mixed messages out to everyone as it relates to the federal I fought with the federal government on this issue earlier and now I'm fighting with the state government on this issue. And unless you guys start to make a whole bunch of noise, this is not going to change.

ROWLANDS: In the Central Business District where stores and hotels are slowly getting ready to open, Nagin's plan is getting a lot of support.

CHARLOTTE SULLIVAN, MANAGER, CHILDREN'S PLACE: The longer people stay away, they're going to actually stay away and not come back. So I think it's a good plan to have everyone come back into the city as quickly as possible.

ROWLANDS: One major problem for restaurants and hotels is getting employees to come back. For example, many of these who work at the J.W. Marriott lived in the ninth ward and now have nowhere to call home.

DAVE HARDY, J.W. MARRIOTT: They, obviously, were affected, by large scales, because they lived in the parish that got destroyed. But we're prepared to supplement them as long as we need to, to get our business and our hotel back open and protect their jobs and get them back in here.

ROWLANDS: What remains to be seen is how many people will actually come back and how this crippled city will be able to support them. David Villarrubia is hoping to rent his bed and breakfast to FEMA at a reduced price. He thinks no matter how fast people are allowed bac, it's still going to be a very long time before this city will be anything close to normal.

(END VIDEOTAPE) KAGAN: And that was our Ted Rowlands reporting from New Orleans.

In Mississippi, the governor there says 1,500 feet will go a long way in rebuilding his state. That's how far he wants to move the coast floating casinos. He wants to move them on to shore. Most of the 13 barges were severely damaged or ruined by the massive storm. Haley Barbour wants lawmakers to amend existing limitations so casinos can be rebuilt on land.

(BEGIN VIDEO CLIP)

GOV. HALEY BARBOUR, ) MISSISSIPPI: The casinos were all floating. Every one of them on the coast was destroyed. Every single one. Many of them were thrown across the highway, hit hotels, hit buildings, hit vehicles. And only because we had evacuated, they did not kill a lot of people. So coming back with them sitting in the water is not the right thing to do. I propose just bringing them ashore a few hundred feet. You know, in a state 400 miles long, like ours, Miles, a few hundred feet is irrelevant. But they can be put safely, securely on land that way and it will solve that problem. It will also allow them to grow so they can be more than just gambling. So they can really become world class resorts.

(END VIDEO CLIP)

KAGAN: And Haley Barbour was elected on a promise not to have any expansion of the casinos, but he says this proposal would not allow gaming beyond the current coastal area.

Coming up on CNN LIVE TODAY, the mission is now the same for thousands of victims of Hurricane Katrina and Rita. They have to find a way to pick up the pieces.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: What are you trying to do here today? What are you trying to accomplish?

UNIDENTIFIED MALE: All I'm trying to do is collect some memories.

(END VIDEO CLIP)

KAGAN: Ahead, one man reminisces while sifting through the debris of a home that was washed away.

Also, John Grisham. The author's words made him famous, but the devastation in his state that he calls home left him almost speechless.

And Secretary of State Donald Rumsfeld providing a progress report on Iraq at this hour on Capitol Hill. You're going to hear questions that are being asked of him when CNN LIVE TODAY continues.

(COMMERCIAL BREAK) KAGAN: Showing you more live pictures now of Southern California, the Chatsworth fire. This fire now at over 9,000 acres near Los Angeles. Flames have destroyed at least one house and earlier we were seeing live pictures of a Rocketdyne engine design plant in the San Suzanna (ph) Mountains near Chatsworth also fully engulfed in flames. Much more live from Southern California coming up.

Right now, though, we do focus on the economy and the Gulf Coast. The hurricane's fallout has sharply eroded consumer confidence. According to the Conference Board, the Consumer Confidence Index is at its lowest level in nearly two years. That's the sharpest decline in 15 years. Among the highlights, 20 percent are pessimistic about the next six months and one-fourth of Americans expect fewer jobs to become available. Joining us to discuss the state of the economy is U.S. Commerce Secretary Carlos Gutierrez.

Mr. Secretary, good morning.

CARLOS GUTIERREZ, COMMERCE SECRETARY: Thank you. Good morning.

KAGAN: Good to track you down at the New York Stock Exchange, the heart of commerce there.

GUTIERREZ: Thank you.

KAGAN: Let's start with these numbers. Do they concern you, these lowest numbers on consumer confidence in the last two years?

GUTIERREZ: Well I think you'd expect the consumer confidence to take a dip over the last several weeks, especially after the hurricanes, and then with gas prices on the rise. I think it's something that you'd expect. The good news is that we went into this situation with Katrina we went into the hurricanes with a very strong economy, very resilient economy. And we'll see a short term impact, but we will rebound from that and we still expect to see very strong growth this year.

Gas prices are actually down below the level that they were before the hurricanes or at the level during right before the hurricanes, because the president tapped into the strategic reserve. And he's made it very clear that he's willing to do the same thing here.

KAGAN: I just have to stop you there, Mr. Secretary. You're telling me that gas prices are lower now than they were from before the hurricane?

GUTIERREZ: They're lower than they were during the hurricanes. So they're at the level . . .

KAGAN: OK. I don't think you've seen gas here in Atlanta, Georgia. I can tell you that.

GUTIERREZ: Well, no. No, no. But they shot up right during the hurricane and they've declined to the level that they were before the hurricane. And you've seen that. I think the national average is about $3.01. It's about $2.81 now. And I'm not saying it's acceptable. And I know that consumers are feeling that at the pump and this is a serious problem. The important thing, though, is that it was confronted, it was tackled and prices have stabilized. I'm not saying that they're at the right stage. We need to see them go down even further. But the good news is that the president took action and prices were stabilized and we've seen them decline in recent days.

KAGAN: OK. I think that's going to be interesting news to people who are filling up at pumps across the country, but we move on because there's another thing right around the corner and that's natural gas. And thinking about people heating their homes. And not just that, but the impact on commerce and on the economy as we move forward. Are you concerned about that?

GUTIERREZ: Well, we're concerned when consumers have to pay more for natural gas. And we're concerned going into the winter that there will be higher natural gas prices. That is always a concern. We don't believe it's going to have an impact on the economy as a whole, but it will have an impact on consumers.

KAGAN: You don't think that the increased natural gas price are going to have an impact on the economy?

GUTIERREZ: Not as a whole. Not as I mentioned before, we're going to see a decline in GDP in the third quarter of perhaps a half a percent, perhaps one percentage point. But we'll see growth return in the fourth quarter. We'll still grow in the third quarter and we will have a year with growth in the economy.

And the reason for that is that our economy is strong. We've had 10 straight quarters of GDP growing above 3 percent. We've been creating jobs. In spite of the increases in energy prices, our inflation has remained stable. So we have been through a lot of issues that we've had to confront in the past. We will get through this one.

KAGAN: Let's talk about jobs, because we saw the three governors from Louisiana, Mississippi and Alabama on Capitol Hill yesterday. They weren't even into the blame game. They really had one thing on their minds, and that they want jobs and they want commerce to be developed and encouraged to return to their area.

GUTIERREZ: Well, and that's a great point. And what I would like to say to businesses on this program is that there may not be a better place in the country in which to invest than the Gulf states and New Orleans. The president has proposed a tax incentive package to attract capital to that area, to create jobs, and to rebuild that area stronger and better than it was before. So this is a time to be thinking about creating jobs in that area, opening businesses, because they need basic infrastructure and basic businesses.

KAGAN: There is a lot of work to be done. Commerce Secretary Carlos Gutierrez.

Mr. Secretary, thank you for your time this morning. GUTIERREZ: Thank you.

KAGAN: Appreciate your time.

We are going to be talking about those home heating bills. You can expect, well, some tough bills coming up. We're going to have your "Top Five Tips" for beating the rising costs as the cooler temperatures flow in. That's just ahead.

(COMMERCIAL BREAK)

KAGAN: We are watching two hot spots this morning. On the left part of your screen, Southern California where a number of wildfires continue to rage out of control, including the largest in the Chatsworth area. And on the right of your screen, that is Defense Secretary Donald Rumsfeld. He is before the Senate Armed Services Committee answering questions about the war in Iraq this morning. We will be monitoring both and bringing you the highlights as they develop.

The first nationwide impact of Hurricanes Katrina and Rita has already been felt at the gas pump. The next blow-in will be the cold winds of winter. Joining us with her "Top Five Tips" on beating those skyrocketing heating cost, our Personal Finance Editor Gerri Willis.

Good morning.

GERRI WILLIS, CNN CORRESPONDENT: Good morning, Daryn. Good to see you.

I just saw the report on your air here that it may not affect the national economy but what's going on is going to affect your wallet big time. There's going to be a winter pinch this year, particularly with heating oil costs. Consider this. If you have an average-sized home, 2,025 square feet, you're going to see your costs go up about $600 to $2,200. If you heat your home with natural gas, you're still going to pay $400 more. It's across the board here, Daryn.

KAGAN: How do co-ops work in trying to help this?

WILLIS: Well, this is good news. Consumers do get together. They put together their buying power and they can buy heating oil at wholesale prices. That may be something you want to do. There are co-ops all through the northeast. Go online. Find one. You will have to pay a fee to join and, at the end of the day though, you will save a lot of money.

KAGAN: How do you cap your home heating costs?

WILLIS: If you're using a heating oil supplier that you particularly like, you may want to consider capping the price you pay to them. This will allow you to enjoy a consistent price all winter long. Don't fix the price because that way, if prices do fall later this winter, you won't be able to take advantage of it. And talking to some of the experts out there, that's exactly what happens. Come February or March, sometimes those prices slide. KAGAN: If you do heat your home with natural gas, you're kind of at the mercy of the bill that shows up in your mailbox.

WILLIS: Oh, you bet. You know, natural gas, you don't really negotiate the price for that. But here's what you can do. You make sure that your furnace is as efficient as possible. You want to do something called a blow door test. That's going to see it may help you understand just how efficient your heating system is. If it's less than 75, that's not a good thing. You want to install some weather stripping, make sure your windows are as efficient as possible. You're going to have to spend a little money to save a lot.

KAGAN: And let's not forget electricity. Is that supposed to go up as well?

WILLIS: Yes. Electricity prices are based on natural gas prices. There's you know, it's a big domino effect out there. You'll probably be paying a lot more for electricity this year. Think about getting some of those special bulbs that will help you save a lot of money. They cost more but they last much, much longer, as long as 10 years. These are fluorescent bulbs and they're much better than they used to be. They're really very attractive and they can save you big time on your electric bill.

KAGAN: All right. All tips that we appreciate. Gerri, thank you.

WILLIS: You're welcome.

KAGAN: Well, today has to rank as one of the biggest days of John Roberts' life. He is just hours away from being sworn in as the chief justice of the United States. The big question in D.C. now, who will President Bush pick to sit beside him on the bench? A live report just ahead.

Also, we continue our coverage of the aftermath of Hurricane Katrina and have a visit to hard-hit Plaquemines Parish, Louisiana. The damage so bad in this area, lifetime residents are saying good-bye forever.

And author John Grisham takes in the damage along the Mississippi Gulf Coast. It's a walk down memory lane for him and for CNN's own Anderson Cooper.

(COMMERCIAL BREAK)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com