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The 9th Circuit of the U.S. Ct. of Appeals granted EES' request to stay an 
injunction granted by the District Court in the UCS litigation, which would 
have required EES to continue to directly serve UCS.  The stay allows EES to 
return the customer UCS to PG&E and SCE for utility service and thereby save 
the future accrual of an additional $144 million of negative CTC 
receivables.  In approximately two months, the 9th Circuit will conduct a 
further review of the stay.  It is likely EES' service contract with USC will 
expire before any trial at the District Court.