Draft Enron Supreme Court Reply Brief

We had a meeting at Wilmer Cutler's office today to discuss the reply brief
(due on July 2). Attached is the first draft of the brief -- a redraft will
be circulated COB Wednesday which will revise this brief somewhat but not
significantly. I will circulate the revised brief once I receive it. Wilmer
asks that we get comments back to them by Noon on Friday.

Lou feels very good about New York being defeated in its petition. Almost
all of the intervenor briefs have been against New York, and Lou thinks he
can almost promise that the Court will not rule in favor of New York.

With regard to Enron's position, Lou feels that we have the upper hand
legally but he is concerned that our position lacks passion -- a reason why
the Court should rule against the regulator. We talked about ways to augment
the reply brief to show the court why it must overturn FERC on the bundled
retail transmission issue.

At the end of the meeting, I asked Lou to give us his best guess at our odds
of prevailing. Very informally, and somewhat in jest, Lou gives us a 37.5
percent chance of winning the bundled transmission argument. John, another
attorney at Wilmer working on the brief, gives us a 42 percent chance of
prevailing. Although these are non-binding, informal estimates, I thought
everyone would like to hear the odds our Supreme Court council are giving us.

Please let me know if you have any comments on the brief by noon on Friday.

Thanks

Sarah

- Combined reply draft v6.doc