-Caveat Lector-

Sunday June 17 8:06 PM ET

TV Ads to Attack Calif. Gov. Davis on Energy

LOS ANGELES (Reuters) - The American Taxpayers Alliance, a group
with strong ties to the Republican Party, will begin airing a television ad in
California this week blaming California's Democratic Gov. Gray Davis
(news - web sites) for the state's electricity crisis, the Los Angeles Times
reported on Sunday.

The black-and-white, campaign-style ads, which criticize Davis for failing to
head off the crisis by signing long-term contracts before power prices
soared, were produced by Alex Castellanos, a Republican strategist with
close ties to the White House, the newspaper said.

The first wave of the ads, which will begin airing on Monday in Los Angeles,
San Francisco and San Diego, cost $350,000 to produce, but the source
of the funding for the campaign remained unclear, according to the Times.

Time magazine reported in its latest edition that hundreds of corporations
have contributed money to the anti-Davis effort, including Reliant Energy,
the Houston-based company Davis singled out for criticism last month for
alleged price-gouging. A spokeswoman for Reliant could not be
immediately reached for comment.

The ATA, which is headed by Scott Reed, hopes to raise up to $25 million
to keep the ads on the air, Time said.

Although public support for Davis has fallen since January, polls suggest
voters do not blame him for the state's energy crisis -- a problem he has
said he inherited from the flawed deregulation undertaken by a previous
Republican administration.

The ATA ad campaign charges that while Davis has been ''pointing fingers
and blaming others,'' his appointees at the Public Utilities Commission
(news - web sites) missed a chance last year to allow the big utilities to
lock in long-term contracts that could have avoided this year's spike in
wholesale power costs.

Steve Maviglio, a spokesman for Davis, said that was a misrepresentation
since the PUC under Davis appointee Loretta Lynch did allow a number of
long-term power contracts.

Other Davis aides said state-brokered purchase contracts, which now
account for about half of the power California needs on a given day, have
been a major factor in driving down spot electricity prices in recent weeks.

Democratic Rep. Anna Eshoo (news - bio - voting record), a California
lawmaker who was among a group that met last week with Vice President
Dick Cheney (news - web sites), sent an angry protest letter to Cheney over
the ad campaign, accusing Republicans of ``telling Californians that
'gouging' is good.''


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