You think Buffet will issue a white paper to say that Davis was a nutter for going long to hedge spot price energy contracts, given the facts on the ground at the time? If he does, that would be fascinating.
The state IMO should have sued to void the contracts based on fraud and unconscionability..they have proven some illegal manipulation, which made the market deceptively high...
Fraud is the intentional misrepresentation of an important issue of the contract. The presence of fraud in a contractual proceeding makes the contract voidable by the party upon whom the fraud was perpetrated.
Unconscionability
A contract may be unenforceable if it is found by a court to be flagrantly unfair. This defense is usually found in consumer cases, in which a person buys an item under terms so grossly unfair to the customer that the court refuses to enforce the contract.
http://www.weblocator.com/attorney/ca/law/c06.html