Harry---Please find out exactly what they are filing---get a copy of it if 
possible and lets set up a conference call to discuss.



	"Harry Olivar" <hao@quinnemanuel.com>
	04/17/2001 01:17 PM
		 
		 To: <gfergus@brobeck.com>, <Christian.Yoder@enron.com>, 
<Richard.B.Sanders@enron.com>, <Steve.C.Hall@enron.com>
		 cc: "A William Urquhart" <awu@quinnemanuel.com>, "Kristen Bird" 
<kb@quinnemanuel.com>, "Michael Lifrak" <mtl@quinnemanuel.com>
		 Subject: Fwd: CHARGEBACK CASE


Richard - please let us know if it makes sense for us to file anything in 
connection with this motion.  (I would think probably not.)  Also, any luck 
in getting the PX to set forth its position regarding release of collateral 
in writing?
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From: "Williams, Marc" <MaWilliams@OMM.com>
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Subject: CHARGEBACK CASE
Date: Tue, 17 Apr 2001 11:23:56 -0700
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SDG&E is planning to file a motion in Judge Moreno's court requesting an
Order vacating (as moot) paragraph 6 of the Preliminary Injunction (which
permits participants to withhold amounts previously paid in charge-backs
from payments owing to the PX in connection with the normal invoicing
process) and stating that SDG&E is entitled to the amounts it has withheld
pursuant to paragraph 6.  SDG&E will argue that FERC clearly ordered the
charge-backs to be rescinded, and accordingly, that the reason for the
escrow no longer applies.

Please let us know whether you have any comments and/or would like to join
in this motion.

Marc Williams
for O'Melveny & Myers LLP
400 South Hope Street
Los Angeles, CA 90071-2899
tel (213) 430-6161
fax (213) 430-6407
mawilliams@omm.com

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