Powerful Reaction When Talk Turns To Electric Deals

POLITICS

by Howard Fine

Gov. Gray Davis is known for his reluctance to grant extended interviews with the press. And it seems for good reason. Earlier this month, Davis let loose in an editorial board interview with the San Diego Union-Tribune, a publication known for its conservative editorial bent.

Union-Tribune editors asked Davis about his signing those long-term energy contracts a year ago. Shortly after he signed the contracts, spot market electricity prices plunged and he came under considerable heat for agreeing to prices well above the spot market.

In describing his overall approach to the energy crisis, the Vietnam veteran governor said: “This is like a war. This is worse than being in Vietnam. This is a full-out war against me. Everyone said I can’t possibly do this.”

Later on, the Union-Tribune asked: “The main criticism is that you panicked and signed long-term contracts at very high cost.”

Davis’ response: “If I didn’t panic, you wouldn’t be able to put out your paper. I saved this friggin’ paper. I kept the lights on in this state. Do you understand that? I kept the lights on.”

The comments brought to mind another now infamous editorial board interview Davis had, this one with the San Francisco Chronicle a few months after he took office. At that time, he said: “The Legislature is here to implement my vision.” That didn’t sit too well with state Senate president John Burton and the rest of the legislators under the Capitol dome.

All About Timing

L.A. Mayor James Hahn took the heat as the roastee at last week’s annual Los Angeles Political Roast benefiting the American Diabetes Association.

Several of the roasters said Hahn has suffered from bad timing.

“Being mayor is about making tough decisions with good timing,” Chief Legislative Analyst Ron Deaton said during his roast of the mayor. “Jim, you need to work on timing. I mean, to take on the Police Chief (Bernard Parks) during Black History Month ”

Ax the Tax

“Ax the Tax” is the new slogan from the Valley Industry and Commerce Association as it begins to garner support from other business associations for its proposal to scrap the city of L.A.’s gross receipts tax on business.

But wait. VICA government affairs director Scott Schmidt told colleagues at the Hollywood Chamber of Commerce earlier this month that the campaign wasn’t just about getting rid of the burdensome business tax. “We’re looking for alternative tax strategies to offset the loss in city revenues that will occur when the business tax is scrapped,” he said.

In fact, representatives from VICA and other local business associations will gather this Thursday for a “brainstorming session” to come up with alternatives to present to L.A. Mayor James Hahn and the city’s Business Tax Advisory Committee.

Staff reporter Howard Fine can be reached by phone at (323) 549-5225, ext. 227, or by e-mail at

[email protected].