Subject: Doing what California does best---locking in a loss
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Date: Thu, 2 Aug 2001 16:13:00 -0700 (PDT)

Spokesman for California's Davis Sells His Shares of Calpine By David Ward  Sacramento, Aug. 2 (Bloomberg) -- A spokesman for California Governor Gray Davis, criticized for owning shares in power generator Calpine Corp., has sold the stock, the governor's office said.  Davis's interim communications director Steve Maviglio sold the 300 shares of Calpine that he had purchased last month, said Deputy Press Secretary Hilary McLean.  Republicans and public-interest groups criticized Maviglio for purchasing the stock while the Davis administration was negotiating long-term energy contracts with Calpine and promoting the company's efforts to build power plants in California.  ``He (Maviglio) felt it was becoming a distraction,'' McLean said.  Maviglio said that he had purchased 300 shares of Calpine at $40 each on June 20, after putting in an order on May 31. He denied any conflict of interest and said the stock was sold earlier this week.  Shares of San Jose, California-based Calpine rose 76 cents to $36.76 in midafternoon trading. They had dropped 9.7 percent from June 20 to yesterday's close.  Maviglio won't be fired or reprimanded for the purchase, McLean said. He won't comment on any conflict-of-interest issues before the administration, she said.  Republicans and public interest groups have criticized Davis after disclosures that some advisers and consultants to the state on energy matters owned shares in companies that are trading electricity or negotiating long-term power contracts with California.  California in January stepped in and began buying power for its two largest utilities, which are insolvent after running up more than $15 billion in debt because of a shortage of power plants and flaws in the state's deregulation law.