Knitting Pattern 2 Cup Tea Cosy

in today's tutorial let's do a hot hibiscus tea cozy and this is a really super cute using the jacob's ladder concept. welcome back to the crochet crowd as well as yarnsiprations.com i am your host mikey. today we are going to do the hot hibiscus tea cozy. this is something i have seen on yarnspirations for quite some time and i was wondering how hard it was. i was kind of avoiding it because i was kind of scared of it. so today, i did a sample last night just to see if i could do this and i realized a few things. so, never judge a pattern by its look. so let me add to just get through the ins and outs of doing this project it is actually a lot more simpler than you realize. and once you get that under your belt, it is quite an easy pattern to follow up. you might be surprised. so let's begin. so let's quickly talk about this pattern. so here we have the cozy. this is not a complete round project. so this is the interesting thing about this. i thought we were going to have to go in there and than leave some holes for the spout and the handle but absolutely not. so what this is, is that , when i pull up the sample that i have already done it is actually made up of two particular pieces that are sewn together and when you sew them together you leave a hole for the actual spout and then you leave a hole on the other side. so when i have done this, this is actually one half of the tea cozy and it has the jacob's ladder concept going on here in order to create the braiding look that it has. so every two rows, you can see that there are two rows here, is a same color and then you change it. but , of course, you can change it as often or as little as you wish.

when it comes to your own personal creativity. the jacob's ladder that you are seeing here, is actually made up of two stands at the same time. so if i just grab these two here, i can work with them together and i grab the next two which are purple and i come up and pull through --like this. so, even though, there are two strands of every one of these things, this makes it a lot quicker to be able to follow by just doing the chain work and then it becomes a lot easier. also, what happens is this particular pattern is that we have to grow it up a certain size and then we start tapering in. so if you look at this particular example you can see that it is nice and fat here down at the bottom but than it starts to taper . this is so easy to master. it is not even funny because when you look at the pattern on the information, if you know how to read patterns, great, but if you do not, there is a diagram on showing you how to reduce in the final six revolutions to do it. so you have to determine your tea pot size whether it is a 4 cup or a 6 cup and make it to match. remember when you go to do this, when you go to do the jacob's ladder it is going to start contracting onto each other. so, see how wide it is here, it was that wide until i did this. and this tapering at the top it is going to be able to to just kind of go around your pot like this. so it is going to be able to follow . so, let's go through this pattern and i am going to do the second side of it, so you have to do two samples of this, and then we are going to then strategically sew it together. leave the hole for the spout and the handle. so let's look quickly at this diagram. this is chart number one, this is going to be for about 4 inches when it comes to doing all of the one sides that i was doing. so i decided i was doing a four cup tea pot. you can see in the instructions here as you go to do it, as we are just going to keep repeating the rows up until you get fours inches here in order before you start to taper but if it is a 6 cup than it will be 5 inches. so you just keep doing the same thing that you see here up until either 4 inches or 5 and then you start picking up here to do the final taper and the last six revolutions. this taper allows it to cup around the top of the teapot. so here is the top of the tea pot, here , this does not,attach to anything. so let me move that up. so this doesn't attach to anything it just sits directly on top to keep that teapot nice and warm for when you got company.

so let's begin. let's grab your 5mm size h crochet hook today and we are also going to be using lily sugar and cream yarn today. use as little or as much as you want. i have to say i barely touched this ball. these patterns don't take a lot of yarn at all. so , if you have spare yarn, cotton, lying around, you can probably get away with it, or if you don't, a beautiful color mix of really great colors of lily sugar and cream are available to you on-line or at your local retailer. so as mentioned, there are two different panels and this is one side of the teapot , the other side i am about to do here on camera. obviously i just tested it. so, on the outside here, we have it here and it will start to taper as we get closer to the top. and here is the base. so this basically, here at this point, we have it so it is marked. so you can see what is going on in this particular project. now, on the instructions , if you noticed that i wrote red is the final and red is the final color to get my four inches in the height. before i started tapering and i made a note of that because i want to do a second one of these, but , you know, wanted to make it look like it is consistent. so i am going to start with the same colors keeping the sample done and these are the same colors recommended in the pattern as well if you are confused at any point but just have fun with the colors! you can do a great job with it. what i recomend before you are doing your jacob's ladder, of course, and ijust did it here for a sample, to show you how all of these strands end up turning into this concept. so , let's grab our yarn, hot pink! and one more thing before we continue , just letting you know, it says chain 29 or 36. so 29 is the four cup teapot and 36 is the 6 cup teapot. so, what you want to do is every time you see that there is a parenthesis here, you have to do make sure you are following the instructions, matches all of your desires that you have. so every time you have a decision to be made you can see that it is in parenthesis. just like so. so watch this one, we are going to the four cup one, so i am going to be chaining up 29. so i am begining with hot pink first. and iam going to be chaining 29 that i just stated. so let's put that onto the hook, remember that never counts as one.

so, one, two, three, four and five--go all the way to 29. meet me back here in just a moment. so as we begin to do all of these instructions. just let me just turn this around, you are going to notice that this side edge will have three single crochets in a row before you are doing any of the chain work. in the very beginning right here, is there is only skipping of one chain and we are going to create this chaining of 10 and then just go over to the second one over. and so in between the regular one here, before we do the taper. there is always going to be 6 single crochets here, ok, and then it jumps over one and then another chain of 10 and then another 6. so just pay attention that you have to 3 on the edge and then in between all of this, there is only going to be 6. that just helps you keep the pattern. so let's go second chain from the hook. so one and two and just turn it around and get the back of loop only of the chain and i want you to single crochet in that one.

plus single crochet two more chains in there . to give you the three that are on the edge. so now we are going to start the jacob's ladder concept. right away. so every time we are doing the chains no matter where you are in the project it never changes these chains are always chaining up 10. so, one, two , three, four, five , six, seven, eight, nine, ten. so on the chain down, come down, and skip over, and go to the second one over and single crochet. we single crochet in that one and plus five more. it's best friends. so go another five in a row so that gives you a total of 6 single crochet. and you are going to continue to repeat this all the way to the other side. of this same concept and you will end up with 4 jacob ladder concepts. so, one , two ,three, four and five and six. so now you have got six in here, chain another 10, so one, two three, four , five six, seven, eight , nine, and ten. coming back down on the chain, skip one, second chain over, begin the single crochet again, and then five more of its best friends. so, one, two, three, four ,and five.

and carry on again. so just now, you are going to do another jacob's ladder so this is the third time, so one , two, three, four, five. six, seven, eight, nine, and ten, coming back down, skip one chain go to the second over for another single crochet. and then five more of its best friends again. so you just do a total of six again. and now we have one more jacobs ladder to do once we get this six done. this is three, and four, five, and six. and the final jacob's ladder so another 10. so one, two, three, four, five, six, seven, eight, nine, and ten. coming back down on the chain. skip one, go to the second over, for a single crochet and if you are keeping in count there is only two after this anyway and that gives you your final three on the edge. which is what you should have. so there is every two rows is the same color so this considered one row of using pink, we are going to turn around and do the second row. watch how we do it. so chain up one first and you are going to single crochet in every one of the beginning three so one , two, and three and once you get those three, another jacob's ladder.

so 10. one, two three, four, five six, seven, eight, nine, and ten. skip over, and go right directly for the six that are next after the jacob's. and go into th first one. so six in a row single crochet. one, two, three, four, five, six. and then jacob's ladder again so 10 in a row one, two, three, four, five , six , seven, eight, nine, and ten. ok. skip over that whole jacob's there and go into the first crochet on the other side do that one plus the five other ones. so you have six again. so for this particular size you can go four inches tall. doing this exact same row the only difference is that you are going to change the color every two rows so next, a jacob's one, two three, four, five, six , seven, eight, nine and ten.

skipping over. ok. and go into the first jacob's, sorry, first single crochet. one plus five others. so the reason i am taking you through this whole row is to show you how to change the color so you don't have any loose ends hanging out, so certainly when you are serving tea you don't want loose ends hanging out of your tea pot and that becomes the coversational piece instead of the hot gossip of the town. so begin again. so you are going to chain ten. one, two , three, four, five, six, seven, eight , nine, and ten. and then come back in and the final , on the other side, is only three left. so this is what i am going to do to show you to, um, how to finish. we are going to bring up the next color, in my case it is going to be the purple. so this is what i am going to do to finish. so, i am just going to grab my scissors and i am going to cut this pink yarn about , hmm, about six inches. and i am just going to pull that yarn through that loop. ok, that kind of locks it already. so i want to turn my work and get my hot purple ready for me. and the hot purple, i am going to start. so i am going to create a slip knot. first. and put it onto the hook. and all i am just going to do is that see this straggler here? i am just going to lay it down on top of the line so it looks like it is part of it going into the very first one and take the yarn that is going into the yarn ball and just put it over to do a slip stitch to fasten on , chain one, and these two stragglers i want you to leave down on top of the line.

so, just single crochet into that first one and one, and keep going to the next two. ok? and you are back at a jacob's ladder. but now what you can do is that you can safely trim that yarn now right here. ok, don't trim the one you are working on! just trim the ones you just changed to and now it is buried underneath and you will not see it. so now you can begin jacob's again. so, ten, two, three, four, five, six , seven, eight, nine and ten. and then go to the other side. the other side of that chain and do your next six in a row. so, one, two, three, four, five and six. and continue to do that same idea. so ten in a row and the next six. ten, six, and then ten and then the final is going to be three. turn around and go back in the other direction like i just showed you. and then when you get back to the other side you are going to change your yarn out again. so, you basically do down and back, and then change, down and back.

and change, and you keep changing your oolors in order for you to get to the look you see here. so i am going to a total of four inches tall. and just grab your measuring tape and just do it . mine happens to be the red, by the time i hit the red, that was four inches, you might have different tension than me but i am going to continue to do the rest now off camera and i will meet you back when i get my four inches tall. i will show you how to do the tapering of the top. so now back here and i just finished four inches in the height. i just told you i mentioned that red was my final before i started doing the taper process. so this is what it is going to look like almost like a rainbow and you can see all the changes and work in between which is the jacob's ladders. and then when you pull it down here this is what we are aiming for here. so off camera i finished this here, and i did the final two revolutions that locks in the top loops in order to continue and i kept the color scheme. accurate so after blue i then did green. so what i am going to do now is the next six rows we are going to start the tapering effect. and this is going to allow it to come together and you are really going to see on the backside here as we begin reducing stitches here and here. in order to create the round shape. so when you are looking at it from a tea pot point of view, you will see that this will kind of wrap around the top of tea pot just like so. because you are going to do the taper. so let's begin, start to do the tapering process

so let's begin and i am going to create a slip knot. and i am starting like i normally would if i wasn't tapering like on the very end. i am taking care of my red here and i am going to insert in and attach as i normally would with a slip stitch. and chain one. and so round number one or row number one of the tapering we are going to then continue along on the side edge as normal. so there will be three and two the side. so that is not going to be a change. what is going to be a change is row number one is in between the jacob's ladders and these six single crochets. so remember what i said in the very beginning? that chaining of 10 never ends and at any point never gets lower. so what we want to do is that do the jacob's now , the chaining of 10 so one, two, three, four, five, six, seven, eight, nine and ten. so they tapering is going to happen in the first set of six. here and each one of the sets of six as we go. so what we are going to do then is that the first two are going to be single crochet. as normal, one and two and the next two are going to come together so we are going to do single crochet.

two together. so going in. pulling it through, leave it on the hook, going into the next one and i want to pull through, pull through all three loops. so , two just became one. and so then we are just going to single crochet the final two left. and we are going to move on that way. so let's do another chain ten, so one, two, three, four, five, six, seven, eight, nine and ten. coming all the way across then to the other side, single crochet into this one. and to its buddy. the next one i mean. the next two are going to come together. so in pull through, going into the next one. pull through , pull through all three loops those two just became one. and then finish off the next two then, let's start again, chain 10, one , two, three, four, five, six ,seven, eight, nine and ten. skip over and get to the next group of ten. ahh.six, which is the final group of six. then go into the second one as normal so that the next two will come together. and then the final 2 just become one each. and then do the final chain ten, one, two , three, four, five, six , seven, eight, nine, and ten. and then we simply come in to the other side and simply crochet the final three that are left, one , two, and three.

so we don't do any decreasing on the edge at this particular section. so now we have just eliminated one stitch out of each between here and the sixes. and so let's move up to row number 2. of doing the decrease. let's turn our work. and we are going to begin row number 2. row number 2 is going to have a decrease not only here but also in the chain six area. so we are going to decrease one out of the side. so let's begin. we are going to chain one and single crochet into the first one and the next two that are left here on the edge are going to come together. so just put those two together. for a single crochet two together so now you have only have two stitches technically on the end. so let's do our chaining of ten, one, two three, four, five, six, seven, eight, nine and ten. let's go to our first group of five now that are left. we are going to single crochet into the first two, so one, and two and the next two are going to come together and then we only have one stitch left so we are going to single crochet into that one. ok? pretty easy right? so let's begin again, chain ten, one , two , three, four, five, six ,seven, eight, nine and ten. come to the other side, here is the next group of 5.

so the first two are two double crochets or two single crochets each, sorry. one single crochet each in the two. and then the next two are together. and then the final one is by itself. and chain ten again. so one two, three, four, five, six , seven, eight, nine and ten. and then coming to the next group of five, the first two are single crochets each. so one and two. the next two are together. and then there is going to be one final one by itself. and then go for another one here. it is going to be ten. one , two, three, four, five six, seven, eight, nine and ten. and your are on the final edge so the first two are going to come together. so we are going to put those together. and then there is one stitch left and that will be one single crochet. that is it for this pink so we are going to just fasten this pink off. this is row # 2. and we are just going to finish that off and turn over our work and begin the next color and begin to taper so let's bring up purple.

purple here on row number 3 there is no decreasing at all, we need to give it time to taper. if we taper too quickly then it will get to quickly to the top of the tea pot and it will not sit on there properly. we are going to join , as i told you before, chain one and single crochet into the first one and into the next one. again hiding in these loose ends. so there is only two single crochets left in this side area. making sure i am getting these stragglers down on top. so that i can hide them and safely trim them out. so let's begin to chain ten, one , two , three, four, five , six , seven, eight, nine and ten. continuing across there is only four stitches left here. you are just going to do one single crochet into each. there is no decreasing on this round but we need to give the project time to relax and to take its proper shape. ok? so lets keep moving. so chain ten, one, two , three , four, five , six ,seven , eight , nine and ten. coming back into the next one over here and just one single crochet into the four that are left. so one, two,three, and four. and continue along. chain ten. 1-10. and just go into the next one here. the next four. so one, two, three, and four. and then finally chaining of 10. 1-10. coming onto the edge there is only two left. so one single crochet into each of those.

let's turn our work. and we are now going to go for row number 4. row number 4 we are now going to do another decrease. so let's turn our work right away. so on the edge nothing is going to change nothing is going to decrease at all. row number 4 so chain up one. one single crochet into each of the two that are left. now chain 10. 1-10. now we are doing to decrease once again here in the middle. so the first one is going to be a regular single crochet. the next two are going to come together. and then the final one left is one single crochet. let's do it again, 1-10. skip to the next one. the first one is a single crochet. the next two are together. and the next one is one by itself so you really see the tapering, you see the effect here. so let's do it again. so chain 10. 1-10. skipping over, going over to the first one, the next two are together. ok, and then one single crochet into the final. and then finally we are going to go right to the edge. so we are going to chain 10. 1-10. and on those row here, the final two that are left is just going to be one into each so there will be no decrease on the edge. so let's get rid of this purple again so we have gone two rows of that so we are just going to trim that. and the ones that are hanging out before--let's get rid of that as well. so let's move along.

and we are going to go for row # 5. so let's start row # 5. create another slip knot and let's begin. and let's start right where the purple is. so row # 5 is there is no decreasing at all. so we are just going to work our way across there is nothing to decrease. so chain up one and one single into the first one. and it's buddy into the next one. so this is giving more time for the project to relax and now that is out you can either..i would just trim out, trim this out now and just, keeps out of your face and out of your way. and. let's continue. chain up 10. 1-10. ok. continuing over to the purple here there is only three stitches there and so there are only going to get one single crochet into each. so there is no decreasing at all. ok. and let's try again and chain 10. 1-10. continuing along. just the next three are going to be one single each no decrease. and then let's chain 10. 1-10. ok, skip over. single crochet into the next three. 1-3. and let's go again. so. chain 10. 1-10. and you are the on the edge, the final 2 are going to be one single crochet each. so let's turn our work and lets do row #6. row # 6 is the final point of doing these jacobs. and then the jacobs are done and we are going to have to put these together. so we are going to do the final decrease for the jacob's area.

so we are going to chain up 1 and the first two are going to come together. so you are just bringing those together. one. and now chain a total of 10. 1-10. so we have three stitches that are left here. we are going to make those into one. so we are going to do three together single crochets. so go to the first one, pull through, go into the next one, pull through again. and go into the final one and pull through. you will have four loops on your hook and pull through all of them and that just became one. let's do another 10. 1-10. ok. and these three are going to become one. so in, pull through, into the next one, pull through, into the final one, pull through four loops on the hook--pull through all of them. chain 10. 1-10. and then continue to the next one. put those three together. and then chain 10 again. 1-10. and you got the final two that are in the edge. we are going to put those two together. so you essentially at the top of each one of these just became one and that makes a difference in the next part. so let's fasten this off and i need to show you what to do next because now we are going to start doing the jacobs ladder effect of putting these all together in order to create th loops and i show you how to do that next. so now it's time to the jacobs ladder effect. we have to do this before we do the next row because we need to get these all secured cause the next row holds that permenently into position. so they don't unravel. so what happens here is that you got 4 of them to do and we need to start . so we are going to start with the pink and just hold it straight up.

and take the purple and there are two strings so keep them together. and take the next two purple and keep them together and push them through the other side of the pink and pull out. and you are going to notice that this is going to contract. so now . look and take the next two blues and ok, just pull that through the purple. you get that? and just kind of pull it now. nice and tight. now take the green and pull those through the blue. you are going to work up all the way like this. i love this part of the process and you are going to do this with all four of them and you are just going to let it hang open. when you get to the top and we are almost done to the top. and just keep grabbing each set of these chains. so what i loved about this pattern is that we have done another jacob's ladder where you have to single crochet across the chain. it takes forever i like how they put two chains together in order to speed up the process of making this teapot cover so just keep on going right to the top. and take the final two blue and pull them through.

and just let those hold and let those stand away. ok so you see that it just did a nice taper here. so take the next set here, iam not going to show this whole process again, but just take the next set and just holding it open ...and taking the purple through the other side of it and then just start looping all of the groups of colors through in order to make the braid going straight up. so please do that and i will meet you here so just leave them open so that they are ready for you at the top. just like this one. so this is what it looks like, you can see that it is compressed in and did the tapering. that is exactly what we wanted and this is what it looks like on the back . so . now i have two of these and i am going to the final two rows. so remember what we had in the last row, is that we had one basically single crochet onto each of them here..so. that is what we are going to be playing with this time. so we are going to start off right on the edge and let's see where that blue is? right where i finished off, so i knew where i was going . so iam going to insert into the top of the first single crochet that is there..it is the only one that is there. and iam going to attach and i am going to hide my yarn in as i normally would . so now. what i want to do is that i want to grab the blue that is popping up through here. ok. so just grab it.

and i want to put two single crochets around that loop this is going to hold it from unraveling. so two single crochets in there. just like there and then i am going to go, there is only one single crochet here, so iam going to one single crochet there. and then i am going to pull up the next blue loops. so just adjust them if you have to. and make sure they are open and two singles into that one. ok, the next single is right here. and the next one is the next one blue loops. your loops could be a different color. ok and that is the next single crochet here and the next blue loops that are here. pulling it up. one and two and there is going to be one single crochet right into the edge and you are just going to go into that one. so that was the second last row so you see that the blue loops are now being held into position. so let's do the final one that we have to do. so we are going to then chain up one. one single crochet into the first one and we are going to do two together all the way across so into this one. and the next one, bring it together. and keep doing that and grabbing all these single crochets and make them into one. so this is going to create the final tapering look at the top of the tea pot.

so just like this this will leave the hole. that is at the top of the teapot. and so once you get that done just single crochet all the way to the very end. of just two together. and that is it so let's just finish that yarn off. and i want to leave a little bit of extra because i got nowhere to hide that next time so what i want to do is to pull it through and i am going to slap a needle onto it and i am going to bury it right now so i am going to grab my teapot next. in order for me to measure. and i am going to show you my way of measuring, you can either, use the instructions if you don't have your teapot handy or you can just customize it towards your teapot. and i went to a secondhand shop this morning to pick up a teapot in order to do this .

and i, daniel and i rarely have company but these are really kind of a cool little accessory. i love the colors. that was one of the reasons i jumped onto this tutorial . i do love a lot of color in my home and if you seen any of my tutorials in the past. so we are just hiding in these loose ends and hide in any other loose ends that you because the next part of the process we are going to put it together and we are going to make the top after that. the next part of this tutorial you can either follow the instructions on where to sew or you can customize . what i would is turn it inside out and attach it to the outside of your current teapot you are working with. ok, so this is what it will look like when it is on. but i want you to turn it inside out. and i want you to put two layers on there so the seam is right at the spout here and the other seam is here at the handle. and what i want you to do is , is that i want you to put them both inside out and turn it . let's do the handle first. we need to know where exactly this handle is so we can get this cover on and i would recommend cutting four pieces of spare string for you. and i would just roughly measure up and line up the colors. so right around this purple here is where the handle is going to start directly underneath.

so i would use this spare strand to pull across and tie with a bow tie. in order for you to kind of join it together. this is just a holding spot. so you can take off this project and using your darning needle sew up confidently! so this is where i want to stop. so i can leave room for my handle to peek out afterwards so i am just going to create a bow tie. here so i can stop that . ok so let's just line it up properly. i can sew now from the top to this part here. and now i am going to look underneath. and i am going to do it at the purple right underneath and that is where i am going to join it and just happens to be both purple. i don't know if that is a miracle or if that is what happens today. it just happens to be my little teapot today. so now i safely can , rest assured that the handle will not be accidently sewn across. nothing is worse than sewing your project and then realizing that step that is supposed to go through is not going through because you did not leave a big enough hole

ok. so let s turn it around and do that top of the next section here. so this is pulling it straight across. and let's leave a little gap for the teapot spout. grabbing another piece of strand and this one is going to be in the pink here. pulling it through and through. so this is how i do my yarn. as far as customizing. use spare pieces of string when possible. and then go up underneath the spout. so the spout here i don't mind if it comes out an little bit extra. because that is where you are going to have heat loss. in this case i would go towards the blue. down here. so once i have this done and the reason why i turn it inside out is because i can safely now sew on this side and safely flip it inside out. when i am done in order to keep the same lines on the inside of this project. so you can either leave it on or you can just slid it off. this should slid off at this point if it is not sliding off you know you are going to be in trouble because you know you will never get it off when you are doing the actual project.

so. let's keep it inside out and let's begin and you don't have to do a lot of stitching here there is not a lot of space left. and let's begin and what i would do is choose a color that is pretty much almost going to match here. so i would probably choose the blue. and just create an extra long piece of stand. and grab your darning needle. and you are going to do this with all of them but i am only going to do this one time, i don't need to show all the time here, so the concept is the same. so right where i started the tie, is this i just want to go through and enough strands to go through this side of the project i don't want to make it bleed onto the other side of the project. so what i want to do on the other side is to create a slip knot and insert the hook through the slip know and i am going to try that again.

the slip knot kind of allows it to kind of tie onto itself so just slip it through pull through and get rid of this other one now that it is out of your way and you already got the positioning in so you can get rid of that strand there. and i want you to whip stitch across. so just coming across the project see this straggler? just let it stay down on top and just kind of trap it into position as you go over top of it. so that you will not have to deal with it later so just working your way back towards the top of the project. in this case. and staying on the strands that will appear on this side of the teapot cover

and go right to the top. so once you are at the top. which is where i am now it is that i am going to create a little mini knot. and again, staying on this side of the project, so it does not appear on the other side, and then a great way to hide in the loose ends at end is to go in and out of the stitch work and staying on this side of the project. don't let it bleed to the other side! and go back and forth. for total of three times in a row so that was one. and two and three. and i want you to do this with every one of the seams that are left and i will join you back here and we are just going to take a quick look at it and then we will move on to the top. of the project and then you can safely cut out all your loose ends. like this. so if i take a quick look at the other side..see..you don't even see it bleeding through it's great.

so let's continue to do that and i will see you at the next part of this tutorial. so just sew everything together and turn this back outside right. ok. so let's test my holder and i can see that there is a larger gap on one side, here, and there is probably a smaller. littler, gap on this side so the larger i would assume would be the handle. so now we can slip it over top here , like so, with the handle and there you go. so that would be what it would look like at this point so what it appeared to me when i first started this project this is that it is all one unit but in actual fact it is two pieces and sewn together and it looks really good but we are not quite done yet. we want to do a top piece that will be kind of a nice hibiscus flower. and that is coming up next. so now it is time to the hibiscus flower. and there is instructions with it but there is also a diagram which iove even better and this is what it is going to look like. when are going to use a total of green for this. so we are not using any other colors but if you like to change your colors that is completely optional.

lots going on in this pattern but it is really not that difficult if you just go piece by piece . how do you eat an elephant? well..just piece by piece. of course! so this is one of those and that is just a saying by the way! so what we have here, so let's just go step by step into these instructions and let me show you how to do it. let's grab your green 5 mm crochet hook to begin so let's begin the hibiscus and let's just start off with a slip knot. insert your hook and let's chain 5 1-5. let's insert our hook into the beginning chain and yarn over and pull through. and now you have the starting ring for making your flower. so let's begin the next part, round two

so let's begin round number 1 we are going to chain up one first. and then we are going to put 10 single crochets right into the center of the ring so just going into the center and single crochet. 1-10 once you get your 10. i want you to join it and if you are not sure where to join, just count back, one ,two, three , four 5-10. so let me do it again. 1-10. so the tenth one back is the one you are going to join. ok, so now. we can safely cut that strand out if you want. let's get that out of the way and let's move on round # 2. so we are going to create picots if you are new to crochet if there is two strands like this, that is a stitch, if you go into the strand that is closest to you that is the front loop and the strand that is in behind. the next one appeared to me when i first started this is , is that we are going to play with front loops in this particular round so let's begin, we are going to chain 1. and we are going to single crochet as the same stitch. of so it is stitched, did you hear that? but what i want you to do is that we have to go into a front loop only

ok, so we go into the front loop of that same stitch. ok, so just one strand, and i want you to just single crochet and we are going to then chain 3 and we are going to create what is called a picot. and the picot is kind of just a fancy look so you are going to go one, two, and three, ok and do you see the two strands that are right here? they are kind of facing up? slid your hook in behind those. just slide it behind and grab the yarn and pull through those two little strands and the one that is already on the hook that is a picot it is going to create a really nice lift. so come into the next one and let's single crochet into the next one. so just going in front loop only, single crochet

and let's do another picot so one , two, and three, and look down. to the two strands . just come through and through, go to the next one front loop only, single crochet, ok, chain 3, one , two, and three and then picot. just go into the two that are sticking up and pull through and through, please do that all the way around and you will have a total of 10 of these going all the way around because you had 10 single crochets. i will meet you at the end of this round. so once you get all the way back around, just join it to the starting of the first single crochet you should have a total count of 10 of these picots, 1- 10, lets move along and we are going to go for round #3 so round #3 we are starting in the wrong area so we have to finish off and it says to fasten off as well so we are going to finish that off and right where we are and we are going to re join in the same color yarn but in a different location i am just going to leave this straggler down in

what we need to do is that we need to go all the way around this one here and iam going to create another slip knot. and we need to look into where are we going to here and what do we do next. so we are going to create the leaves here on round #3 remember the picots are in the front loops? you can just choose any one of the back loops to begin and that same round so you are not working with these picots you are leaving them untouched and that is what we are going to do. so we are just going to join on and chain 1. and single crochet into the same one you just have to fold this work in front of you. so you can access and see everything you need to see now we have to chain 15 in order to create the first loop , 1-15. coming now to where that same one was attached we are going to single crochet one more time. so that brings that to a massive loop like this. so the next one back loop you run into is just going to be a single crochet by itself and the next one here, what i would do is take this strand here and just bury it as you go so just the next one you are going to sngle crochet

and then chain another 15. get that done and go into the exact same one and i am going right over top of that other strand that i want to bury so just to reiterate, the next one is the next back loop. single crochet, by itself, and the next one is another single crochet and then another loop and then you chain 15 come back into that same one you will have a total of 5 of these massive loops hanging out at the end of this round so please do that now so at the end of the final chain 15, i did a single crochet and if you remember the first one starts off with just one single crochet and that is where you are just going to join it and then so you have these massive loops just like so and you should have a total of 5 of them

so let's begin, we are going to do the final revolution, round #4, which is probably the a very easy round as well so let's begin and we are simply going to 10 and do right to this chain 15 and do 10 double crochets right in a row so let's just count those out together so just going right around the loop itself. 1- 2-3-4-5-6-7-8-9-10 so this half of the leaf and now i want you to do another picot, do you remember how to do that? chain 3, 1-3 coming into these two that are just leaning up and pull through and through and that is your picot and now iwant you to do 10 double crochets. on the other side 1-10. so now i got 10 on the other side before i go any further, the single crochet that is in between these two massive loops i want you to slip stitch only and pull through and through and then begin again. so ten double crochets going up , picot, and ten back and then slip and then keep doing that and you will have a total of 5 of these by the end of it , so please do that now so when you get all the way back around what is going to happen is that on the final here you are just going to slip stitch to the first one you have started

so right down here into the single crochet and then you are just going to fasten off so, you are going to notice that at this particular point you are going to have to use a darning needle to hide in the loose ends i have shown you how to do that already on this tutorial. so what is going to happen is that you will have noticed that if you are like me, that you may have extra ,see? it is kind of bunched up here? so you just kind of have to shape it a little. and get it to all balance. here on the back end, there is a lot of yarn there you just kind of have to stretch things to get it all back into balance

happens..you know it is not a big deal, it should be expected so just keep on just kind of shaping it and getting it to the way it should look and of course you can put it on the top of your teapot so, i am going to hide in this loose end and then i am going to take a look at what it looks like then at the top of the teapot and i am pretty excited about it! so , here is the top of my teapot. so this item here, the top just sits on top just as a covering just like this it is just more decorative and if you want to go and use your teapot, then of course, this is just kind of filling in that final hole that is in the top

and really kind of a nice idea. it is really a kind of neat accessory to have, and i am pretty excited about it and i think it is really quite cool

Knitting Craft Idea

[music] staci - we're here at the youtube la space,in los angeles california. and when i was planning this trip, i wantedto get the real knitting scene in la. and i asked facebook where i should go andwho i should talk to, and judy graham's name came up several times. you might know judy from her youtube channeland her website, which is knitting tips by judy, she has videos out. but the thing i'm really excited to talk withjudy about, and what really makes her a los angeles icon, is that she is who the moviesand tv talk to when they want something hand

knit, custom designed, or custom designed and knitfor tv and movies. so she has some good stories to tell, hi judy.thank you for being here. judy - hi staci, thank you for asking me. staci - yes, she drove all the way out hereto the space so we could sit outside here. being from texas, this is a real treat forme, to be outside and not sweating in the summertime! judy- right! [lauging]

s - so you have the youtube, your youtubechannel, and your website, but you've been in knitting business much longer than thosetwo things, right? j - oh, absolutely. before all the technology. want to hear my story? s - yes! well, the name of your company is topaz knitwear. j- topaz knitwear. but basically i started knitting when i wasthirteen years old, many many years ago. and i just always knitted.

got married, knitted, you know. had babies, knitted. s - lifelong knitter. j - lifelong knitter. at at one point, i was living in new york,and we moved to new england, where i opened a little craft store. where we sold supplies for weavers, glassbeads, pottery, you know, all that. and i started experimenting with weaving yarnsthat were very thin and fine. to see what i could come up with.

and i have one to show you here. s - okay. j - of one of the very early knits. s - this is knit, not woven, though. j - this is knit. s - wow! this is gorgeous! j - and it's made with rayon bucle yarn, onthe finest needles. s - how many years ago did you make this? j- this is about, uh, 38 years old.

s - i'll tell you, this looks like somethingi'd see in interweave knits. it is high fashion right now. j- right, i know. things come around, andgo around, yeah. s - the stitches are so tiny. j - the stitches are tiny, it's two pieces,increase for the little cap sleeve. s - right. j - and sewn together at the shoulder, andthe two side seams, and that was it. so, then i moved to la and i met someone whowas an actress, and she knew my knits, and she said you should bring them down and showthem to the costume people.

so i had a little basket of maybe six or sevenknits, i don't call them sweaters, i call them knits. j - and i went to the costume designer, itwas for a show called rhoda, i don't know if you remember it. s - i know rhoda! parker's smiling, too, offset.he knows rhoda. j - it's a spinoff from mary tyler moore,and rhoda just wore outlandish hippie clothes. s - yes! like things on her head. j - things on her head, and scarves, and everything. so, anyway, the costumer designer said, great,i'll take them.

s - wait, did you bring them in there to bringthem to them? j- no. s - you expected to leave with your knits? j - no, i brought them in to sell. s - oh, you did, okay. j - and she took them. and said, oh, thisis great, i'll buy as many as you can make, as fast as you can make them. so do-do-do-do-do. s - hahah!

j - there i go. s - you were hand knitting. j - i was hand knitting. j - and hand dyeing, you know, doing the wholespiel. s - wow. j - so, eventually that costume designer introducedme to other costume designers, and more and more. and i was just, i was considered the sweaterlady. s - the sweater lady.

j - and i was, you can't do this anymore,but i would go to the studio, take out a big black garbage bag, and just go from one stageto another and say do you want this, you know. and then people would say, well, i like this,but i need it two inches longer, two inches shorter. s - you were talking with the costume people. j - i was talking with the costume people. and, you know, can you make it in yellow,instead of blue, you know, just little changes, so it was just getting beyond what i coulddo by hand. s- right.

j - so, i put an ad in the paper. this was before craigslist or facebook oranything. s - in the newspaper. [laughs] j - newspapers! remember newspapers? so, looking for knitters. and everyone thatanswered my ad was a machine knitter, and i had never heard of a machine knit. j - knitting to me was this! j - so, i started interviewing people, andeventually hired people that could transpose my handknits over.

s - they can actually take the handknits thatyou write and put them into machine knits? j - no, they would take the actual sweater,you know, and copy it. j - without my writing, because patterns aretotally different on paper and machine. s - right, they would be. j - i never learned how to use the knittingmachine. s- you havent? i don't know how to use iteither. j - no, it's beyond me. it's like you do this. s - so this is really interesting. you, youto this day use machine knitters, but you don't do the machine knitting yourself.

j - correct. s - you hand knit the sample. j - sometimes. sometimes i knit a sample,sometimes i just get a photo a picture, a drawing, the drawing can be on the back ofa post it. or it can be really big. i'll show you... s - well, let's talk about, yeah, let's showsome other knits. will you show this one? because this, when people here at the youtube space havebeen asking me about this interview i have today, i say her name is judy, and give alittle thing.

and then all i say is freddy krueger sweater. and everyone is "ohhhhhh!", that's who you'retalking with! [laughs] j - well this is all i have left of the original. s - this is enough! yes, this is enough! werecognize this, and we're all scared! [laughing} j - it's really funny, because i had no ideawho freddy krueger was or the whole cult thing. s - well you had to make a sweater beforehis first movie, right? j - well, no, actually there was a first movie.i thought i made the sweater for the first movie.

j - but i found out from all these fanaticsthat are out there, that i did not. s- oh, yeah. yeah. j - the first movie did not have stripes onthe sleeves. s - that's a sleeve! j - this is a sleeve! [laughing] j - so, from the second one on. and this wasmade out of acrylic which is, the company has been out of business for ever, but afterthis first one they switched to wool. because it had to burn and tear, and you know.

s - right. oh, we all know what happens tofreddy krueger in the movies! j - so the last movie, they actually changedthe colors. s - oh! j - and i'm going to show you something. this is what i got. i'm going to take it outof the plastic, i think you can see it better. s - okay! j - can you see that? good, so they wanted it darker, and deeper,and... s - [laughs] creepier!

j - creepier! and so they came up with thesecolors. which are just totally, totally different. s - well, when was this last movie? j - about four years ago. s - okay, because as a teenager, i rememberthese being the creepy colors. j - uh, huh. s - okay, yes. j - so this was the first time it had changedin all these years. even when this acrylic was not being used,it was always bright red and olive green.

j - so that's my freddy... s - do you know, somebody, when i asked onfacebook and people were suggesting that i talk to you, and there was a little freddykrueger discussion. someone said that they made a happy littlechristmas stocking. and when they finished knitting it, they werelike, oh no! j - [laughs] s - it looks just like freddy! so. j - i do get emails often saying, can youmake me a freddy krueger sweater. i always say no, i can't, because i don'town the franchise.

j - but i can make you a red and green sweater.or you can make yourself a red and green sweater. s - that's what i tell people. i'll teachyou to make it, but i won't make it for you. j - yeah. s - so, you had to make a lot of these. j - oh, my gosh. the last one, this one, ithink there were 68. s - 68! s - okay, i've read your whole website, andi have not heard that number! s - because, well even in the pictures whereyou see freddy krueger, its shredded. j - burned and shredded.

s- so you hand over these beautiful sweaters. j - beautiful. s- and then all 68 of them are torn to bitsand a mess. well, that is exciting! what a thing to haveon your resume! because everyone knows this. s - wow! j - barbara streisand. this was probably oneof the biggest thrills of my life. she was working on a movie, and i was makingsome knits for the movie, and the costume designer said, you know she has this idea. she wants to do a little concert in her home.

very casual, just wants a skirt and like aturtleneck top. no big deal. so would you like to do it? and yes, of course. i met with barbara. now i usually do not meetwith the actors or the actresses because i don't want to get involved the, what i call,minutia. j- of it all. but i did meet with barbara. and she said yes, i just want like a turtlenecktop, and a long skirt with a slit up the side. and i would like for it to be silk. okay,fine.

so, i found this beautiful silk and wool yarn,and i made this outfit. s - oh! nice! which camera should we show this to so wecan get this clearly? look at that! i know this album cover. j - yeah, and you know it was on billboards,and it was on the cd, and, you know, the magazines. s - let's hold this up, you can see this. i recognize this. that is great and beautiful,and such a lovely drape on that silk. j - yeah, beautiful, beautiful. s - and this picture that you've been holdingup is actually an autographed "dear judy"

picture. and you went - there is more of this story. j - yeah, so my husband and i went, were invitedto the dress rehearsal. and we had to go to a secret place and geton a bus, and be taken on winding roads so that we wouldn't know where we were going. and when we got on the bus, the costume designersaid, by the way, two other people have made outfits for her, so we don't really know whatshe's going to wear. s- oh. j - so i said, okay. so we get to her house[laughs]

s- yeah! j - and it's like an amphitheater in the backyard. j - and it was very casual, but it was ratherlarge! and anyway, it's going to start, and the smokemachine starts, and the curtain opens. s - that's kind of a fancy house. i don'thave a smoke machine in my house. j - no, i don't, you know, i used to haveone but i got rid of it! s- hahah! j - anyway. the curtain opened, and i sawone leg came out, and then i saw white, and it was in fact the outfit.

s - the outfit! wow, and that slit on that leg, that is great. j - and after that, she became by best friend. and she wanted this outfit in every color,we switched to cotton. because she wanted every color, and she wantedone for her new york house, and one for her la house and it was like many many many. but then she found a new best friend. and her name was dia...donna karan? s - oh, have you ever heard of donna karan?

j - she made sweaters, also! j - so it was bye bye judy! s - so here we are in los angeles, droppingnames! look at this! okay. j - so that's my barbara streisand story. s - wow! that is great! that's something! j - that's what i was given for forrest gump. s - forrest gump's striped socks. j - yes, it was on the cover, you know, thebillboards, everything with his little socks. of course, i got a little more information.they wanted stripes, fair isle, red, blue,

you know, whatever colors. s- wait - so it was several pairs of socks? j - it was several pairs of socks. but onlyone made it to the screen. s - but it's also in the movie poster. j- it's on the poster. s - were those hand knit? j - those were not hand knit, no, they weren't. because they couldn't be. because, again,they needed multiples and fast and quick. i think somewhere i have a picture of thesocks, i'd have to...

s - well, anybody can right now google forrestgump, and look at the movie poster. and he's sitting there in a cream coloredsuit, i think. j - i think so, yeah. plaid shirt. i also made some other things for that film.i made sally field's bed jacket that she wore when she was dying. j - that was beautiful pink angora. and a couple of sweaters, and that was a funmovie. s - yeah! that is great! well, if you ever get bored, you can alwayslist this on ebay and see how much this little

piece of cardboard is worth! j - you're probably right! this is another autographed picture that ihave of chevy chase. s - [laughing] ohhh! and what movie is this? j - this was for vacation. s - right, okay. he's such a dad in that movie. and it's a black and white picture, and it'sa hip length cardigan.

j - yeah, tweed, shawl collar, basic old man'sbookstore, kind of. and it says, to judy, how about the turkeyin the sweater! s - i get it now! turkey in the sweater, becausehe's carving a turkey. j - so that's one of my fun mementos. s - yes, that's very cool. hopefully you cansee that well. j - a photographer came to my house. s - ooooooh! j - and he was there for three hours, tryingto find the perfect shot. and finally i took the knitting needles andlike stabbed them in my head, like get out

of here already! s- because you were so frustrated [laughs] this says "mother of purl", with "purl" beingspelled the knitting way, celebs go nuts over judy graham's knits. let me show this picture here. j- that's before my hair turned white. s- you had bright red hair! s- that is great, and then there's a pictureof, this is really small to see, but it's from the tv show friends.

tell us about that. j- i made a lot of things for friends, everyweek they would buy something new. it was for all the different characters, itwas great. s - were they telling you what they wanted?or were you making things. j - i was at that point i was making things,my own designs, and schlepping them to the studio. j - and then, like i said before, they wouldsay, well, it's nice but i'd like it in red, you know. courtney cox only wears red, and phoebe onlywears earth tones.

j - it was like that. and then a couple more pictures. s- we have whoopi goldberg here. in... j - burglar. burglar i think was the nameof the movie. j - and of course freddy. s - and waterworld? j - waterworld. s - okay, do you have things from waterworld?it's actually going to be hard to see these pictures on camera.

s - ooohhh. and the husband and the dog. j - and the husband and the dog. this is not from waterworld, but it's fromthe same designer that did waterworld. s- wow. this makes you think waterworld, becauseof the colors. j - i know, and this is the drawing that igot. with a little note on the bottom, can youdo this? s - can you do this! well they gave you a nice drawing! j - they did! it was really, really nice.

and they wanted it very thin, and very sexy,and so, i used... s - do you know what movie this was for? j - this was for the postman. s - the postman? j - you probably don't even remember it. itcame and went. s - i remember an italian movie called ilpostino. j - no, no. this was with kevin costner. s - i want to see if parker nods about thepostman. j - but it's a little dress. i don't havemany things left over, but i made it.

s- this is such tiny stitches! j - and this is actually the same yarn thatmy scarf is made out of. s- okay. j - which is... s - a thread! j - [laughs] yeah! but this is knit very tight, on the tightesttension that the machine can get. this is of course, knit very loose. s - very loosely, yeah.

s - that's great. so, did you have to make more than one ofthese? j - yes, many more. and then i thought, oh,these are gorgeous, they should sell in stores, they're beautiful. but, you know, it didn't. [laughs] s - and then you were probably on to the nextthing, anyway. j - on to the next thing, yeah. i did have a line that i sold in stores fora couple of years. but it was before the gap, and all that, whenpeople were willing to spend a lot more for

hand knits, for hand made sweaters. s - well, people are still willing. j - still, but it's a lot of work. you really,you need the name. and i didn't have the name at that time. thiswas a long time ago and just thought, well, i've got enough going on. s - well, this trunk of exciting stuff tellsme that you had a lot going on! j - yeah, let's see. s - i can see in the trunk to see what's comingup! [lauging}

j - i brought this for no other reason thanto say it was touched by george clooney. s- oh! can i touch it, too? j - [laughing} yeah! s - can i take this home? put it under mypillow? s- touched by george clooney, and staci perry. s - wow! that was funny that you brought that,judy. j - oh, i just thought well, you know. s - were you making a sweater for him? j - it was actually a scarf.

s - okay, now i've had my brush with greatness. j - right, right, there you go! j - this was for how the grinch stole christmas. j - lots and lots of hats, which i made allby hand. because they could be as crazy as they wanted,they didn't want any duplicates, they just wanted them all to be, you know, christmasy,but different. j - so, can we see that? yes, okay. yes, i recognize. well, i can picture in myhead that movie and the hand knits. because it's chrstmastime, and it's cold.

j - yes, christmas. um, this is kind of funny. this was for a commercial. i was asked tomake a sweater for a beer can. s- okay, what was the story that there wasa sweater on a beer can? j - i have no idea. s- did you see the commercial? j - no. s- really? wouldn't you - i would have goneto great lengths to see that. j - yeah, like okay. whatever you want. s - yes! did you have to make like 800 ofthem?

j - no, just one. s - one sweater for one beer can. j - one sweater for one beer can. s - tell us about this one. j - that was for a british airline commercial. and the idea behind it was that they're alwayson time, but no other airline is. and there was a woman on board that had abag of yarn, and she taught everybody how to knit. and they had to wait so long before they tookoff, that everyone made something. a hat,

a scarf, mittens, whatever. s- so in the beginning everyone had nothing. j - nothing. s - they had to wait so long, all using thesame yarn, that there is a ton of all these things in the same colors. j - right. s- but at least they traded yarn, so theyhad stripes, at least. j - right, yeah. j - right, right, so.

s - that's funny! j - so, it was really, you can't see here,but, lots of different things. s- that's great. okay. j - so, let's see. this is for the movie mousehunt. and the premise was that he gets his suittangled in a machine, and it all comes apart. so it was a suit, a vest, and a tie, thatwere all knitted. and as you know, when you knit you start atthe bottom up, and it unravels from the top. but no, no, no.

s - you had to knit top down. j - top down. s - let me show this picture. j - it really looked like a suit that wasoff a rack in a store. i was so proud of it. s - yeah, in knit. it does! s - and so it all came apart? j - all came apart! and that was really funto watch. s- that's great! christmas sweaters.

j - this was for hot in cleveland. and they were doing a campaign, and they calledme and said we need some ho, ho, ho sweaters. s- and all the ho ho hos completely perfectlyline up, with the three differently - j - that was the problem! [laughs] they're all different heights. s - yes! j - but the ho ho ho had to all be lined up. this was for an ad campaign, it was on a billboard,it wasn't in the show. the only one i did not make was betty's, theblue one.

s - yeah. i can see that. but this is all custom, the snowflakes arein different spots. j - this was kind of where i started. s- [laughing} j - i had some old yarn that i just wantedto use to see how it would work. s - oh, that's great. j - and just made lots of different variations. s- i can see that you have the ho. j - the ho, and the ho.

s- and the ho, and the ho. and then you have the different snowflakepatterns that you used in the sweaters here in this piece. j - so some of them had it across the top,some across the bottom, you know they all had to be different. s - gosh, this is so beautiful. j - isn't it beautiful? s - it really is. j - it's amazing what can be done on knittingmachines, i have to say.

j - so, there was a lot of anxiety over this. with the sizes and everything. s - how much time did you have to make these? j - i actually had a month, which was amazing. s - [exaggerated sigh] thats amazing?? j - but, of course, they changed their mindevery two days. oh, i don't want anything on the sleeve! oh,yes i do want something on the sleeve, you know, like that. s - yes, there are things on the sleeves inthis picture.

j - this little sweater, that looks like it'smade for a child, s- how pretty! j - is made for an actress. i'm not supposed to talk about the shows thati'm doing until they've been done. but i can only say that it's on the highestrated show on cbs, and the character's name is burnadette. s - i know exactly what she's talking about! j - and the story behind this - s- she's a tiny actress!

j - she is tiny! look at this, how tiny. and it doesn't even, it's not tight on heror anything. j - so the story behind this was, they cameto me last year, and they said, we have an actress who has a sweater, we got it at bloomingdale's. it was a special bloomingdale's only. and we haven't been able to find anymore. she loves this sweater, do you think thatyou could copy it? we've tried other people, we've gotten manyother things, nothing has worked. i said, well, i'll give it a try.

but i've never used this kind of stretchyyarn. s - yeah. j - so, made one. after searching everywhere for the perfectyarn. made one, and they said, well don't get tooexcited, it probably won't work. but, anyway. s- because it hadn't worked so many times. j - it hadn't worked so many times. but they called me and they said, she likesit!

and we want to get some more, can you giveme the color card so we can make a few more choices? so i did, and they chose several colors, andif you watch that show, you'll see that she's wearing one every week! s- i won't miss it now! j - and now, this is a new season, and they'vechosen more colors, and we're on - s- is this one of the sweaters that you'resending on to her? j - yes, this is for her, and she will getthis next week. j - this is the little picture that i got.

s - somebody gave this to you. j - yes. and they wanted me to make this hat. and it's for a costume, custom costume companythat makes things for parades and cartoons, like minnie mouse, mickey mouse, kind of thing. where all the characters have large headsand small bodies. j - so, i thought oh, cute little hat! s - cute little hat? wait, part of it's missing. j - part of it's missing.

but they gave me this form. s- [lauging] j - i haven't delivered it yet. so it hasn'tbeen totally put together. if i pull this it will go in. so this is the cute little hat! s - tiny cute little cartoon hat! j - i've made a lot of things for this company,they've done parades for despicable me, and they wear a lot of knits in that movie. j - do you have any questions?

s- questions? i'm too flabbergasted to askquestions. no, really what i want to talk about is - youand i have been talking multiple times over the past few weeks. and judy has not only her knitting tips byjudy youtube channel, you also have a video blog. j - video blog. s - this morning i saw your video blog postabout the scarf - j - the sweater that didn't work out? s- yeah, you had a piece of it, it was becauseof the industry that you're in, working with

the knits and the costumers and everything,somethings on, somethings off. something has stripes, something doesn't.something has a snowflake, it doesn't. or we're making it, we're not doing it. the actress gained weight, you know, whatever. j - yeah, you know, you want my job? you knowhow it works! s - i'm busy. from reading your website and listening yourvideo blog is so good that way because, we're both in the same umbrella industry. you are doing something very different withall this, and hearing about what it's like

for you is great. j - it's really interesting. and i just fell into it. you just never know. s- this was the one, you had the friend thatknew the person working on the costumes who made the introduction. j - right, right. and it just mushroomed. s- wow.

j - yeah. and i tried to retire, thought iwas retiring ten years ago. j - but that didn't work. s - the phone kept ringing. j - the phone kept ringing. and now i'm in the position where i can sayyes or no. if i want to go on vacation, i say no. j - but it's just fun and exciting and different,and keeping me going. s- and you're clearly very good at what youdo, so that makes you feel good about doing it too, i'm sure.

j - yeah, i thank you. s - yes, you can nod, you're good at this! s - obviously! j - i mean, basically, i just instinctivelyknow when i'm talking to them, what yarn should be used, what tension should be used. j - should it be thick, should it be thin. s- did you say that you've been knitting howmany years? j - uh, sixty? s - i hardly ever meet anyone who's been knittinglonger than i have.

j - well, i'm older than you! s - yes, i'll be, i'll catch up to you. j - i mean, you don't stop knitting, do you? s - no, you don't stop knitting. i mean it's just sort of what you do, allthe time. j - you know, always working on something,or other. j - and learning all the time. i mean, when i started my website, i thoughti knew a lot. but then, when people would write to me andask me questions about a certain stitch, and

what is that? s - is that when you started the instructionvideos? j - that's when i started, yeah, yeah. well when i heard about youtube. s - well, judy. i've had a lot of fun talkingwith you today. thank you for coming out here. i'm going to give everybody links to you'rewebsite and your youtube channel in the video description field, just below the video. so you can find judy and keep up on what projectsshe's doing for hollywood! because you always have something going, right?

j - always seem to have something going. s - very good. well thank you so much forcoming out. j - thank you for asking me, it was fun! s - good, good! s - look at all of this! i'm the only onewho gets to see this! j - there's tom. s - ahh, there's tom hanks and his socks![laughs] oh, and the bed jacket. j - and the jacket, right. and then this wasa poncho for his girlfriend.

s - jenny. oh, this was early on. this was just the sleeves. s - just the sleeves of this dress. j - yeah, and then this was just the apron. j - we're going back in time! s - we are! s - we're back to 1993 right now. j - i can't even remember these things. s - oh, why is this sweater so big?

j - why is this sweater so big? in one of the movies, in the 80s, freddy blewup! it was like ten feet wide, this way, and sixfeet this way. and these were my wonderful, my first crewthat i ever had. s - it's like, it's as big as seaming togetherafghans. j - yeah! s - okay, let's look at the rest of these.because i want you to tell me about what, this is like the thing for blowing it up orsomething? j - well, this was it on the form.

and it was me, standing there, to show thesize, and the person that's working on it at the costume house. s - golden girls? what do you have from there? j - i just made tons of stuff for them. s - oh, okay. j - this was the first movie that i ever madeanything for. s - i just watched this recently. j - really? s - uh, huh. like i think i saw it as a veryyoung adult, and then i just watched it again

recently. it kind of made more sense to me. j - this was the sweater that i made, formarybeth. s - okay, the blue one. wow. j - it was a rayon bucle, drapey. s- yeah. wow, okay. s - [laughing] did you make these? j - yeah. this one, this. s - okay, now we're jumping even further backin time. j - dynasty.

s - dynasty! j - we are going back! s - yes! you've been doing this for a while! j - this was valerie. valerie harper in chaptertwo. this was me modeling it, in my much youngerdays. [laughs] i don't know why we're going back this far! s - well, because i wanted to see it! j - this is george clooney's sizes. i havethis thing about george clooney! s - i do, too. that means that you are anamerican woman with a pulse.

j - 5'11". s - is he only 5'11"? j - this is your life! this is what i feellike! [laughs] j - going through all this old stuff! s - this is so great. [whooshing sounds]

Knitting Business Idea

ã¯â»â¿[applause] >>announcer: eric schmidt. [applause] >>allen: eric was back stage so he didn'tsee the jeff immelt video and what he has to live up to tonight.google has an energy plan. a national--the nation may not have a nationalenergy plan, but google has a national energy plan.i have seen you in the last 4 months on meet the press, larry king, the neal cavuto show,the rachel maddow show. i mean, the only person i've seen on the tubemore than you in the last 4 months is boone

pickens.why are you doing it? >>schmidt: because energy matters.if you go back to the survey that you showed at the beginning--people say the environmentdoesn't matter. but the energy matters a lot to them.and the way you solve the environment problem is you solve the energy problem.from a google perspective it's the right thing to do for the world.it's also good for our business because we're in the information business.and a lot of the energy solutions involve a lot of information. >>allen: but that would have to be a prettysmall part of your overall business--energy

information. >>schmidt: but we're happy to make money everywhere. [laughter] >>allen: you know, i always thought the waygoogle worked was that larry and sergei were out doing no evil, and you were back homerunning the company. >>schmidt: yes, that's all true. >>allen: has that started to change? >>schmidt: are you implying that they're beginningto do evil? no. >>allen: no.

>>allen: no, i'm implying that you're outin--i'm going to talk about the details. i'm going to talk about the details of yourenergy plan, but i think it's interesting to have you-- >>schmidt: it seems to me that we are in asituation where people--and there are many people in this room.you've got to get out and take a stand. so we talked about it.and larry and sergei talk about it a lot. and larry and sergei have been interestedin this for a very long time. we need to take a stand.we'll put up a proposal, and you can shoot at us.but at least we put up a proposal, and at

least you can judge on us based on what wesaid. >>allen: yeah. >>schmidt:and i think the more of that, the better. you've got a number of authors of such proposalshere at the conference, and i think that's great. >>allen: so you gave one of--one of the earlyspeeches you gave on this was in september. i pulled something up off the web where peoplewere commenting on it. a shareholder says, "i don't want eric schmidtout there talking about green energy investments." "i understand they consume a lot of energy,but that doesn't address the top line."

"it has a marginal effect on earnings. don'tdo it." i mean, what do you say to shareholders whosay this isn't the way you should be spending your time? >>schmidt: the shareholder value in a companyis created at the end of everything you do. you create shareholder value by serving yourcustomers, building a great business, and if you do a great job, your stock will goup. so they're not first in the discussion point.what's really first at google is about changing the world in a positive way.can we make a difference? in our case, we're huge energy users.so a relatively straightforward solution to

our energy costs goes right to the bottomline. sorry. >>allen: right. >>schmidt: okay?is that a crisp enough answer or shall i make a stronger answer? >>allen: that was crisp. no, that was good.that was good. >>schmidt: lower costs cause more earningsfor shareholders. >>allen:if you had seen the jeff immelt video, you would have--

>>schmidt: green energy-- >>allen: --thrown in a few expletives, butthat would have-- >>schmidt: green energy done right is moreprofitable than the old kind of energy, okay? >>schmidt: it's real easy to understand. >>allen: so let's talk about the-- >>schmidt: this is a good business to be inwhich is why we're all here. >>allen: it's important for google, right? >>schmidt: it's called economics. >>allen: that's right. so let's talk aboutthe specifics of the plan.

you set a target date of 2030-- >>schmidt: that's correct. >>allen:--to get utilities totally off of carbon fuels. >>schmidt: let me--it's easier if i sort ofmake the argument this way. you've got to solve a whole bunch of problems.and in the environmental movement you'll get people who are ideologues on 1 issue in favoror against. our view is that all of the aspects are goingto be brought in in some way. you've got to solve the energy generationproblem, and you've got to solve the transportation problem.so, surprisingly, when you add it all up if

you make--in our view--the right assumptionsand you invest in the right ways, you end up saving money.and that's the thing that i think was most surprising to me.so the rough numbers are we need about 3-1/2 trillion dollars of investment over 22 yearsas opposed to over 3 months which is a separate discussion. >>schmidt: so over 22 years, and we generateon a cost basis a savings of 4.4 trillion. so this is a net investment value, if youwill, by rebuilding the energy infrastructure of about 800 billion dollars--which in presentvalue terms is about 200 billion. and we'd certainly need the money.so the fact of the matter is that if you invest

in the right way you can make money by doingthis. and the way you do it is you've got to figureout a way to install the renewable energy and the distribution network to get it toconsumers. and you've got to address the energy efficiencyissues with respect to cars. >>allen: okay, so let's start with the renewableenergy--the utility piece of it. your 2030 plan takes renewable to like a thirdof our-- >>allen: --up from--i don't know--what isnet 1%, 2%? >>schmidt: what we did is we kept the currentsources of power roughly constant because you figure they're not going to be turnedoff.

in particular, we kept nuclear at its currentabsolute number. >>allen: you don't want more nuclear in yourplan. >>schmidt: our plan does not require morenuclear, and it also does not require to turn it off which is important.and, again, we'll talk about nuclear in a sec, but the important thing is if you buildthose plants, the incremental cost is high because you have to build all these plants.but, also you don't have to build other plants. so part of the calculation is what do younot have to build? and the assumption we made is that you wouldenact essentially a renewable portfolio standard and constant energy efficiency on a per capitabasis

which has been achieved in california since1973. if you look at per capita use of energy inthe united states, it has gone up over 30 years largely due to regulatory issues inour view. and if you decouple the management of electricutilities--literally, if you compensate the electric utilities for efficiency as opposedto absolute profits-- >>allen: which is done in california. >>schmidt: --which is done in california,and now done in 8 to 10 other states depending on how you define it--and i think will become a national trend because it's obviously a more efficient model--you end up with a significant savings there.

>>allen: that's the energy efficiency-- >>schmidt: that's the energy one. >>allen: so you get a big piece from energyefficiency, but-- >>schmidt: and then on the car side thereare many, many--and amory has talked about this in much of his writings-- >>allen: but wait. stay with utilities justfor a second. >>schmidt: same thing. sure. >>allen: i don't want to leave utilities yetbecause it's really the notion that we can between now and 2030 go from--again, i don'tknow the exact numbers--but it's like

well under 1% wind power to--wind power isa huge percentage of-- >>schmidt: it's about 10%. >>allen: ten percent of your plan.and solar--again from very small percentages, so-- >>schmidt: i should say--by the way--thatwind is on a kilowatt per hour basis roughly similar to the cost of coal after the subsidiesit gets today. and without the subsidies it's a couple centshigher per kilowatt. so that's pretty good.it's the one that's closest now to being a free substitute for--

>>schmidt: --for coal which is the most commonpower source that we all have. the issue, of course, is that wind doesn'tblow in the places where the people are. so, in order to make these systems reallywork, you also have to have the grid technology. and the problem with the grid is it takes2 years to get the line built and 8 years to get the permits.i'm not making that up, by the way. so you fundamentally have to establish eitherfederal rights of way for these things or other incentives that cause the utilitiesand so forth to actually be able to build these power ________?? 7:35 >>allen: so the federal government has tosay, "we can site these transmission lines

where we need to."is that-- >>schmidt: that has been discussed.the obama administration has already indicated very strong support for a federal renewableportfolio standard. an alternative if that does not get through--andi suspect it will get through--is that you can imagine incentives at the state levelwhere if 2 states have rps-- they can basically build these lines quickerwith federal help. so the arguments that we make do not workunless you solve the problem that the wind blows in the middle part of the country fromthe north to south. and, by the way, there's a tremendous amountof wind.

and the sun shines primarily in the desertsand heats up the ground for enhanced geothermal. >>allen: that's critical. you have to do that. >>schmidt: absolutely critical.if you look at the rate of improvement of solar photovoltaic and also solar thermal,they are behind wind, but they're going to get there.it's remarkable how quickly they're moving. >>allen: and do you see a distributed plan?are you talking about me putting solar panels on my house or are you talking about centralizedpower generating facilities? >>schmidt: all solutions ultimately are distributed.one of the errors that we have is we have a patchwork of economics and incentives thatdistort what is an obviously correct model

which is distributed power.and you want it to be able--that people on a fair basis to be able to generate and sendpower back into the grid--and on an economically equivalent basis.many of the utilities are now being regulated so that they have tariffs in.and, in fact, it's becoming possible to have a real business of generating power and sendingit in to the utilities. >>allen: and why not clean coal? why not carboncapture? why not take advantage of the technologiesthat can make coal plants-- >>schmidt: in the first place, there's a lotof great progress in carbon capturing sequestration. i don't use the term clean coal because ithink it's misused.

i think it's used to infer-- >>allen: because you don't think coal is clean. >>schmidt: well, it--if we're going to talkabout coal, i'd like to talk about it in the context of its co2 load as opposed to theother particulates that clean coal typically represents.so the fundamental problem is coal which is the most prevalent source of energy in theunited states and china. it generates too much co2.it really does contribute to global warming. now, 1 answer to that is that you have a carbontax or a cap and trade system. i am skeptical as to whether those are goingto happen simply because they have the wrong

words in them--which have the words taxesand prices and so forth. there are many, many people who believe thatthey're the right answer. but i think just politically we have to actas though those will occur but not anytime soon.so what that tells you is we--in our case, we assume carbon capture and sequestrationwill work, but we assume that it will take a fairly longtime for the systems to become prevalent enough. i should say that we're having a u.s. basedconversation here, but we can solve all the problems in the united states and get themright, and we can still die as a society basicallybecause of the issues in china and india.

and so in the car conversation that was fascinatingearlier, one of the things to emphasis is we have to solve the efficient car problemin the united states, but it's even more important to establishit at lower price points in developing countries which is where most of the cars are goingto get sold. maybe you start it in the u.s., and you learnfrom that, and you scale from there. these need to be global solutions. >>allen: and then why do you choose the googleplan to be a national plan? >>schmidt: because we could get accurate numbers.one of the other problems about energy is that there is not an agreed upon set of facts.it's too new. there are too many conflicts,

maybe too many political operatives or toomany business interests. but there's not a common spreadsheet on whatare costs--how do the economics work--and maybe there won't be.but it's not a perfectly free market in the sense that you don't really understand whatthe costs are. and my guess is that without some form ofcap and trade or carbon tax we will never really understand what the costs of theseplants should be. >>allen: i've seen you say in other venuesthat you stepped into this gap because you felt there was an enormous lack of leadershipin the united states on the energy issues. do you still feel that?

>>schmidt: well, obviously the administrationmakes a huge difference. and president obama--then candidate obama--hadindicated a very strong support for renewable energy.and i think with politicians you want to sort of judge them based on what they do, not whatthey say. the stimulus bill that was passed had 50 billiondollars of renewal investment, renewable credit. >>allen: is it in the right places as faras you're concerned? >>schmidt: it's good enough given that thegovernment is 2 months old-- >>allen: it's a start. >>schmidt: --they did a job of getting it--

>>allen: it doesn't address this transmissionproblem we talked about. >>schmidt: there's about 6 billion dollarsof actually smart grid and smart grid investment, and that's probably sufficient.there are probably more policy issues that will come when people start to actually tryto build these grids, and they discover various other--either federal issues or state issues. >>allen: but i--i mean smart grid seems tomean different things to different people, but what i've heard when i've inquired aboutwhat that money is for i hear more talk about devices in the hometo monitor energy usage as opposed to cracking that big problem you said of getting the powerfrom where it can be generated to where it

is consumed. >>schmidt: certainly the policy intent wasto do both. it's worth noting, by the way, that we takefor granted the structure of the internet and how powerful it is in distributed notionand anyone can connect to anything and you canmonitor everything on the internet. none of that is true of the energy grid tofirst order. so the most obvious thing that you want isyou want to be able to have a computer that somehow talks to your dryer and calculatesthe optimal time to turn on the dryer. and that optimal time will depend on an awfullot of dynamics.

today's price for energy; today's consumption;is the grid full? those sorts of things.if you look at energy costs-- >>schmidt: --literally the cost that the utilitiesface which is horrendous in these situations, it's not the base load that costs the allthe money, it's the peak power. it has to do with human use and human cyclesof the day. so the power they have to turn on at 2 to4 on a summer afternoon is immensely more marginally expensive than the power that theyhave every day. so anything you can do that can shift even5 or 10% off of that has huge systemic benefits for savings in efficiency and, obviously,climate change and so forth.

>>allen: do you think your experience in thecomputer business then helps you see issues in the energy business that perhaps peoplewho are actually in that business don't see? >>schmidt: well, it certainly makes us a betterirritant of them. >>schmidt: basically, we look at the structure,and we think--and i mean this with respect because these are people who have worked hardto build a great system--it's not very flexible. so we like to think of applying computersto a mature system to make it that much more efficient.again, even 5 or 10% improvements because of marginal costs have these enormous amountsof savings for them. so there's every reason to think this willhappen quite quickly.

>>allen: so you talk about people with a lotof experience in the business. since we have michael morris here who runsone of the largest utilities--largely coal fired utilities--in the country, i wonderif-- can we get a microphone up here, please, andi wonder if we could hear your reaction to the google plan?it's coming. >>morris: allen, thank you.and, eric, thanks for all the kind words you said.we obviously agree with much of what you've had to say and take challenge with some ofthe timelines and some of the dates. i feel like we're going to get there, butthe internal combustion engine which we call

a base load power plant is going to be withus a long time. >>schmidt: yeah. sure. >>morris: but we will transition to thesethings over time. clearly, i agree with your point that we'llget to distributed generation. it would be foolhardy for us to sit back astelco's did some years ago and say, "oh, yeah, sure. people are going to walk around withtelephones in their pocket." because they do.and eventually you and i may have a power plant in our home--a small power plant drivenby some other fuel source. it may be the sun. it may be the wind.it may be any of those combinations, but it

will take all of those things.i admire your comment about the transmission grid.you know, one of the things that my long term colleague boone pickens has done for all ofamerica is to raise the awareness of the need for the grid to be built.the end game for boone--and it was pretty clear when he was asking allen--is to putcompressed natural gas to better work than the generation of power.and what we see about the grid is get that federal authority to get it built like wedo natural gas pipelines, oil pipelines and those kinds of things.like ford, why try to tell the government we don't need your money, nor do we want yourmoney because it typically comes slowly

and comes with all kinds of strings attachedas some of our colleagues are finding out. what we need is that federal authority toget a single site and then a cross allocation model.because sitting around and trying to battle whether the state of x ought to pay this orthe state of y ought to pay that is just confusing. we've looked at your 30% and the timelineyou spoke to. don't know how that can happen.we're 40,000 megawatts-- >>allen: thirty percent--how do you get 30%a year energy from renewable sources? >>schmidt: by 2030. >>morris: i don't know how we could.

>>allen: you don't think it's possible. >>schmidt: >>morris: we're 40,000 megawattgenerator. that's 12,000 megawatts of wind and sun.you can't do any water anywhere in the united states.so i don't know how we get there. but we're a thousand plus megawatts of windtoday. we're 66% coal today.two short years ago we were 73% coal. so maybe you can get there.i just don't know-- >>schmidt: yeah. >>morris: --how the supply chain helps usget there.

we're pushing solar thermal.we don't know that it applies in our marketplace. and i'm on that slide you were on earlier,allen, which you all showed. you know, my average customer pays about $78a month. now, we don't serve california where you pay$780 a month or something like that. >>morris: no, kidding.i'm sorry peter. i know we'll be on a panel tomorrow together.i'm sure you'll beat me up for that. but, so be it.but the fact of the matter is for an investment of 7 or 8 or 9 thousand dollars for a rooftopsolar to take their cost from $70 dollars to $62 a month--i don't know who they're ever going to get

there. >>schmidt: again, we think the number is foot.i think the important point here is that we can't--america is a great country becauseof our ability to solve problems in clever new ways.really build enormous new businesses that change the world.if you take a look at any of the things where industry is represented here in the room,we can do this, and we can do it at scale--especially if we put our heads to it.much of the energy industry has largely languished in the last 30 years.the universities have not spent that much money on it.as you pointed out, the government regulation

has been a disaster for all the reasons thatyou said. and i think there's an opportunity beforeus. the other comment that i want to make is thatwe have not tonight spoken about efficiency. and by efficiency i mean the efficiency ofbuilding insulation--those sorts of things. the quickest way to actually solve all theseproblems is to have better passive insulation in your home--you know, those sorts of things.because saving so-called megawatts--saving the use of energy is the cheapest form ofgenerating it. and there are a tremendous number of ideasin there. and with the right financial incentives wecan make that happen even quicker.

>>allen: i'm going to open it up here, butwould you comment on that, as well, about the california style incentive systemso that you are not incentivized to increase energy usage, basically. >>morris: this may take longer than you want,but at any rate-- >>allen: you've got 20 seconds. >>morris: there you go. can't be done. anythingelse? the energy efficiency--there's no questionabout that. but when you speak to that issue--again, thinkof the appalachian region of west virginia, virginia that we serve.there's no one who's going to go out and spend

$1,800 to put in new insulation in their homefor the purpose of saving $2 a month on the cost of electricity.there's not an equation that make sense to retrofit--and i did the business roundtablestudy with a lot of my colleagues. many of your people were on the same workwith us. there is savings on the 30% range in the commercialmarketplace, but that's retrofitting buildings that were built in the 20s and 30s and 40s.it's not going to happen. you're not going to re-window them, hvac them,insulate them. i don't see that process.anything new ought to be built that way. you look at the state of florida.to build a new house, it has to be hurricane

proof. >>schmidt: on this-- >>morris: so, going to those standards, ithink we can get there. >>schmidt: on this, we actually disagree.the president's bill actually has about 6 billion in low income re-insulation program. >>morris: and an excellent way to get thatput to work would be to give it to the state utility regulator. >>schmidt: agreed. >>morris: through us, put it to work.

>>schmidt: i agree with that. >>morris: about 13 million dollars dedicatedto northeast ohio 7 years ago in a different administration--imagine that--for insulationfor homes. not 1 home has been insulated.the 13 million dollars is spent. you've got to get a better way to do this. >>schmidt: where did the money go?and, by the way, an even better way is to have the utilities be able to capitalize thoseimprovements in their rate base. >>morris: yeah, that's the point.so--and that takes me-- >>schmidt: the point is that smart regulationhere can actually cause this to occur very

quickly. >>morris: sure. >>schmidt: and things like energy efficiencyreally do compound over time in terms of the savings. >>morris: no argument with that. >>schmidt: because energy prices are not goingdown over the next 20 years. >>morris: to your question, i'm not a de-coupler.i'll make my money by the capital investments. and if my gigawatt hours shrink, they shrink. >>allen:okay. thank you.

let's open it up. somebody else. >>allen: oh, peter. yes, can we get a microphoneback there? >>peter: so, for those of you who don't knowme, i'm mike's counterpart. i'm at pg&e. >>allen: not a lot of coal. >>peter: not a lot of coal. zero in our operation.let me comment on a couple of points that have been raised.in total agreement that de-coupling is the way to go.i've been arguing it now for 4 years in front of the edison electric institute.and what i will comment on is during the last

year our stocks lost about 10%.and most of the utilities out there have lost about 50%.and we actually have been a beneficiary of de-coupling which normalizes our revenue andbrings us back to a revenue target. the important point to be made there is notonly is it good in a down turn but that it has put in place the right incentives.mike has an incentive to sell more kilowatt hours every year, every day, every week.and we have been incentivized. the important thing is california is--callit the 6th largest economy, 7th largest economy in the world.we've had de-coupling in place for 30 years. during that period of time, per capita energyuse in california has remained flat.

across the rest of the united states it'sgone up 50%. so in a huge laboratory over 30 years if youhave the right incentives in place energy efficiency will do a tremendous amount. >>allen: and, peter, what about renewables?what do you think about eric's goal of 30% renewable by 2030. >>peter: the first thing i'd say is i comefrom outside the electric utility industry. i was previously at goldman sachs.i've been in high tech. whenever you put an objective out there atfirst it seems un-accomplishable. and we felt that way about the 20% goal--20%by 2010 renewables in california.

well, during the bankruptcy process and energycrisis and all of that we didn't make much progress.so we came from behind. and we've gotten from the point in 3 or 4years where we contracted for 24% of our power to come from renewable by 2014.now, of course, we recently in the last 8 months or so had a meltdown in the capitalmarkets. so what has happened is we're afraid our counterpartiesaren't going to deliver. so we announced that first of all we woulddo a rooftop photovoltaic program. we had an announcement on that 2 weeks ago.and the next thing we're doing is we're looking to see how we can come into the market andprovide financing to distressed counterparties

and, in effect, be a venture capitalist ora distress fund lender. so we're really trying to be creative in gettingthere. while we may have gotten a setback in gettingto 20% by 2010, i believe we will get there by no later than, let's say, 2012--2014.and then what the government of california has said is now we need to do 33%.one would say that is really far more than we could possibly do.well, we went to work on it and said how could we build a business?not have a mentality of compliance, but how can we build a business and grow our business?and so we have contemplated vision and are working on a long distance transmission lineto british columbia where they will export

wind power as well has hydro to us.clean energy in california. and with that and other programs we thinkwe can get to 33%. so it really takes the right incentives andit takes really stretch thinking and visioning to move ahead.and let's face it, the utility industry has not been known for that historically.and we need to change because people like google are out there, and they are a catalystfor change as well as government. >>allen: do you want to comment on that? >>schmidt: thank you.i think it's easy--thank you for that. people talk about the utilities all the time.utilities have a number of very important

assets including the ability to raise capital.and they do it often, and they understand it very well.and i think using that capital to achieve these goals against measureable goals is goingto be part of the secret. >>allen: question right here. please identifyyourself. >>pope: carl pope from the sierra club.a comment and a question to you--not to you. >>allen: me? >>pope: at the beginning--yeah, you. >>allen: no, i ask the questions. i don'tanswer them. >>pope: at the beginning of this evening--no, no. i'm going to ask you a question.

at the beginning of the evening, we talkedabout how much things have changed in the last year.and i think in kitchen table america a lot has changed.and i think the conversations that are taking place in kitchen table america are a gooddeal more visionary. and i watched tonight some very, very smartpeople play "gotcha" and "no, you didn't get me".and i want to say that i think that if this 1943 we wouldn't be having these kinds ofconversations. i think that there is at least a possibilitythat this is 1943. and we really need to be saying not, "well,you really can't do that. you really can't

get it done,"which is actually the framing of this evening to the business folks upon the table is youcan't really do this. it's too ambitious.the media is setting a table about low expectations. and i don't think america wants that.i want to ask you, mr. murray, how would you be conducting this evening if this was 1943? >>allen: how would i what? >>pope: how would you be conducting this eveningdifferently if it was 1943, and if america really was--as i think a great many americansthink it is--right up against the wall? >>allen: well, we're up against--well, itseems to me we're up against 2 wall.

and that's what we're talking about here tonight.we're up against an economic wall. households' budgets are stretched.people are not going to be willing to pay higher prices on their utility bill or pay$5,000 for a hybrid car. and, at the same time, we are up against theenergy issues that all of you are talking about.so i think what we're trying to do here is to look at some of the tradeoffs that area necessary part of this game. >>schmidt: let me give you sort of a politicalanswer in context. change does not occur when things are goingwell. change occurs when people are scared.this is the time--and i'm not suggesting my

recommendation is correct or the other discussionsare. this is the time to have this conversation,set up bold agendas--which i think is what you were trying to get at--and go for it.it's the history of our country that we can do this.how would we think--are we not capable of doing this?look at the things that our predecessors were able to do.and we're just as smart if not smarter. we have the world at our feet in terms ofinformation. let's do it.we've got the underlying technology. we've got the smartest people in the world.we've got this enormous university system

which in my view has been underutilized andis now getting the right kind of support and funding.every day i come across some new and interesting idea that's sort of clever.this is the dawn of this sort of new age of ideas.so i would reject the old orthodoxies, and i would suggest that if you get the rightpeople in the room, and you drive it really hard, you can beat my plan.you can get it done quicker than 2030 if you all work very hard on it. >>allen: other questions.right here. let's let this gentleman. >>man: i've got the microphone.

>>allen: we're going to hear from you.i don't know who did that. the first rule of moderating is hang on tothat microphone. >>man: do i have to give it up? >>allen: you've got a whole hour tomorrow. >>allen: go ahead. ask your question. >>man: let me--just quickly on a questionto eric. eric, you're a smart guy and love to listento you talk. but all the things you've said made sense.and everything--the questions have been good. but please tell me how we are going to reducethe dependency on foreign oil.

because that is a security issue for thiscountry that i don't think that we can continue like we're going. >>allen: and we probably didn't do the transportationissue. >>schmidt: yeah, we didn't talk about transportation.more efficient cars. and the way you get to more efficient carsis you make them stronger, lighter, better physics.you use better instrumentation in the cars to make them more efficient.all the things that allen and others are working onand there's a lot of new stuff coming in that area--more efficient batteries, more efficientpower trains, more efficient use of charging,

night charging, all of that.the sum of all of that can produce very significant efficiencies.in fact, in our model--and you can see this in our plan--we actually assume that the economicsare such that people will actually want to trade their cars in to get that benefit. >>allen: last question right here. >>man2: i'm very inspired by you--mr. pope,is it? and, you, eric.and i admire both of you. and you're both exactly right.and we can do this, and we can do this now. and there's the talent in this room to puttogether a plan that can be implemented.

and there's very simple things.one is weatherization. mackenzie 2008--i beg to differ.but eric knows and a lot of people in this room know that weatherization is the low hangingfruit like pg&e has discovered. and using tax districting which has been putin ab111 in california--we're trying to get this legislation across the country.it will fund the average homeowner to weatherize their home by putting a tax assessment voluntarilyon their home. what does that give us?no. 1, let's say 5-10-15% energy efficient savings.no. 2, demand side management. part of any weatherizing system is demandside management.

another 5 or 10% conservatively, as eric pointsout, in reducing reserve requirement for the grid.now we have 20-30% excess capacity for the grid.with the cooperation of utility companies or a little bit of leaning by our president,we get this efficiency which can then be used for plugging hybrids, electric cars.and, in fact, under the laws that we're putting in, you can--the electric car now has 2 purposesbecause it can additionally--we're designing a home in a demand side management system,so the car plugs into the home and as eric pointed out, it additionally reducesthe peak demand. so when we combine these things together,they can be implemented now.

california berkeley october, 2008 their discussion--andjust in california by just weatherizing, it's an 86 billion dollar increase in gdp--a 49 billion dollar savings to the homeowner in california and a 400,000 job creation.so we're solving the economic issue. and we're solving the environmental issueand the energy independence issue. no new technologies.and we can do it now by cooperation between the auto industry, the googles, the sierraclubs, and utility companies--and really the media.because the media can be part of the solution. get this word out.what eric has been trying to do over and over is say we can innovate.really the same message.

>>allen: okay. what we will do now is moveupstairs where drinks will be served. i'm sure that will make solving all theseproblems much easier. and we'll continue the discussion. >>schmidt: thank you all. >>allen: tomorrow morning breakfast startsat 7 o'clock. program starts at 8:15.thank you.