It still doesn't explain why they waited until 12.00 before calling the game off and contradicts other people's view of the pitch at 12.30/1.00. And it seems unlikely that the weather forecast was inaccurate to the degree being stated by Peterborough.
It's their loss too though however, in gate revenues they will lose probably half the amount they would have taken from City fans, and also they will have lost money on the day in terms of food / drink sales etc.