We fared well in the prehearing yesterday.  At issue was whether the California refund claims would be decoupled from the supplier/creditor claims of Enron and other sellers to whom California owes money.  For both strategic and tactical reasons, it is critical that these claims be resolved in the same adjudications and ultimate judgments.  In yesterday's prehearing, Enron and other suppliers defeated (at least for now) a very real threat of decoupling.  In addition, Gary Fergus did a very able job at educating the judge on (a) the inadequacies of California's data supporting its refund claims, and (b) the likelihood that California is cooking that data.

Jeffrey D. (Dan) Watkiss
Bracewell & Patterson, LLP
2000 K St., N.W.
Suite 500
Washington, D.C.   20006-1872
(202) 828-5851
dwatkiss@bracepatt.con
jdwatkiss@aol.com