FYI.  Note discussion of Ed, Enron and the 21st Century Energy Project at end 
of article.
Best, Jeff
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Campaign funds will pay for spots 
Robert Salladay, Chronicle Sacramento Bureau
Saturday, July 7, 2001 
,2001 San Francisco Chronicle 
Sacramento -- Gov. Gray Davis will begin a series of radio ads next week 
defending his handling of the energy crisis -- further proof that political 
campaigning has become a permanent sport. 
Davis political adviser Garry South said the ads are designed to fill an 
"information void" among Californians about what the state has accomplished. 
But they are playing statewide just as millions of dollars of TV ads financed 
by Republicans and power companies are attacking Davis. 
"The campaign season has started early," said Rob Stutzman, a consultant with 
the state GOP, which has not been involved with the anti-Davis TV spots 
running since June 19. 
Davis' 60-second radio spot takes the form of an "energy update," where the 
governor informs listeners that "we" have licensed 16 new power plants, 
including three Davis opened this month, and that "conservation is the best 
way to fight back against high energy prices." 
Davis' ads convey the same information as a series of state-financed "Flex 
Your Power" ads run by the Department of Consumer Affairs, only those ads 
don't mention Davis. Davis' campaign fund, worth well above $25 million, is 
paying for the $150,000-per-week radio spots to avoid accusations he is using 
state money to finance his political ambitions. 
South dismissed the notion that the radio ads came in response to the TV ads 
that make Davis a target, saying the governor's poll numbers are actually 
going up. He said people laughed at the ads attacking the governor as 
ridiculous, particularly one showing Davis in Red Square. 
"One of the reasons we chose this ('energy update') tack," South said, "is 
that people simply are not in the mood to have some full-out firefight and 
some partisan battle about this problem. They are in a just-the-facts-ma'am 
mood." 
Stutzman said he didn't disagree with South about the ill-timed and partisan 
nature of the TV ads, which are financed out of Washington, D.C., but he said 
the governor is also launching a political firefight of his own. 
"These ads, even though the the first iteration of them sound like public 
service ads, very much are political ads," Stutzman said. "The reason they 
may be poor political ads is they use the governor's voice, and I don't think 
he has any credibility on this issue." 
Davis already has updated his 2002 campaign Web site, www.gray-davis.com, 
which includes an odd-looking caricature of the governor and a photo of Davis 
standing with actor Martin Sheen, who plays a president on the TV show "The 
West Wing." The Sheen photo dominates the home page. 
"What we're trying to do with the Web site is have a little fun with it," 
said South, who declined to say whether Davis would run against President 
Bush in 2004. 
Last month, a conservative group with links to Republicans and energy 
companies began running a series of ads blaming Davis for the energy crisis 
and saying the state was suffering from "Grayouts." 
Time magazine reported last month that hundreds of corporations had 
contributed to the ads attacking Davis, who has accused Texas firms such as 
Reliant Energy of "unconscionable price-gouging." 
Reliant, which donated $10,000 to Davis before the energy crisis, has 
contributed to the anti-Davis advertising effort, according to Time, and the 
American Taxpayers Alliance hopes to raise as much as $25 million to keep the 
ads running in California through July. 
Scott Reed, a former campaign manager for Bob Dole's failed 1996 presidential 
bid, formed the American Taxpayers Alliance in Washington to raise money for 
the 30-second ads. He has refused to name his donors, and did not return a 
call for comment yesterday. 
Even though the 2002 elections are more than a year away, Republicans are 
worried they are losing ground in Congress on Bush's energy policy, and 
Davis' popularity has slipped somewhat in the polls. 
But the ads mounted by both sides also are designed to change public policy. 
Davis recently hired former Clinton-Gore campaign and White House strategists 
Chris Lehane and Mark Fabiani, and Davis' public presence and political pull 
dramatically increased. 
Another conservative group, the 21st Century Energy Project, will begin 
running TV ads next week in Washington to promote expansion of the energy 
supply, more drilling and nuclear energy. 
The $500,000, two-week advertising purchase is being coordinated by Ed 
Gillespie, a former campaign strategist for Bush and a consultant for 
Houston's Enron Corp., the world's largest energy trader. 
Gillespie said yesterday his group wants to promote a "conservative, market- 
oriented message" about energy, to counteract environmental groups such as 
the Sierra Club. He said environmentalists aren't addressing the gap between 
supply and demand, except through strict conservation. 
"We're trying to shape the debate, because it's been pretty one-sided so 
far," Gillespie said. 
E-mail Robert Salladay at rsalladay@sfchronicle.com. 
,2001 San Francisco Chronicle   Page A - 6