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Wednesday, September 16, 2009

New McDonnell ad accuses Deeds of misleading attack

The TV ad also accuses Deeds of supporting a proposed federal "cap and trade" bill.

The Capitol building in Richmond, Virginia

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RICHMOND -- Republican gubernatorial candidate Bob McDonnell is hitting back at Democrat Creigh Deeds over a Deeds television ad that links the former attorney general to rate increases imposed by Appalachian Power Co.

The flap began last week when Deeds launched an ad claiming that McDonnell, while serving as attorney general, recommended $180 million in rate increases for Appalachian. In the Deeds ad, an announcer says the rate increases "would cost $360 for each of us."

McDonnell's campaign denounced the ad, saying the State Corporation Commission approved the rate increases and that McDonnell's office saved consumers as much as $300 million by recommending smaller rate increases than Appalachian requested.

McDonnell's campaign debuted an ad Tuesday accusing Deeds of a misleading attack. The McDonnell ad, like the Deeds spot, is airing in the Roanoke and Bristol markets.

McDonnell's ad noted that Deeds voted for a 2007 bill establishing a new regulatory scheme for utilities that enables companies to recoup certain costs and reap earnings roughly equal to their peers in the Southeast.

The McDonnell ad also accuses Deeds of supporting a proposed federal "cap and trade" bill that would limit greenhouse gas emissions and establish a system of pollution allowances that industries could buy or sell. The McDonnell ad says the bill will "dramatically" increase utility rates and wipe out 56,000 manufacturing and coal industry jobs.

McDonnell's campaign bases its claim on Deeds' service on Gov. Tim Kaine's climate change commission. The panel's report included a recommendation for a federal cap and trade system. Deeds spokesman Jared Leopold said Deeds supports steps to address climate change, but opposes the specific cap and trade bill passed in June by the U.S. House of Representatives.

"Bob McDonnell was sitting in the room last week when Creigh Deeds said again that he does not support the House cap and trade bill," said Leopold, referring to a joint appearance the candidates made in Northern Virginia.

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