That was only fair, Davis said from the podium, because he'd taken such a hammering recently from critics on everything from the state budget shortfall to his handling of the energy crisis.

Strangely, the newspaper publishers, who successfully sued Davis last year to force him to make public details of energy purchases, seemed almost sympathetic.

Three years ago, Davis became the first Democratic governor in 16 years and voiced hope for an "era of higher expectations" and an administration that would end the "politics of division."

Now seeking re-election, Davis faces severe criticism over his handling of the energy crisis, sagging poll numbers and a legacy of having a hard time getting cooperation with his fellow Democrats in the Legislature.

Though he faces no significant primary challenge, Davis has decided not to sit on the sidelines until the fall campaign heats up. He has aired television ads that tout his accomplishments as governor and attack former Los Angeles Mayor Richard Riordan, the front-running GOP challenger, questioning Riordan's credentials as a pro-choice candidate.

Davis' lack of popularity after the energy crisis is in sharp contrast to President Bush, whose numbers have soared since the terrorist attacks, said Bruce Cain, a political science professor at the University of California at Berkeley.

HINDERED BY HIS OWN STYLE

"Bush was not terribly prepared for what happened, but his management style made up for his personal deficiencies," Cain said. "Gray Davis was better prepared to be governor, but he hit the electricity crisis and never recovered.

A lot of that has to do with the fact that his management style gets in the way."

Davis' tendency to micromanage and refuse to delegate drove good people out of the administration and makes it difficult for opposing views to be heard, Cain said.

Davis started his term facing an avalanche of demands from interest groups eager to make changes.

"Whoever was elected after 16 years of Republican governors was going to face Democratic expectations higher than they could meet," said Assemblyman Fred Keeley, D-Boulder Creek (Santa Cruz County). "That may have created some resentment."

Still, "I much prefer Gov. Davis to Gov. (Dan) Lungren," Keeley said, referring to the GOP candidate Davis defeated in 1998. Keeley said Davis will stick to core Democratic values, like protecting a woman's right to choose.

Davis, a self-described "moderate and pragmatist," moved cautiously through his legislative agenda after taking office. That did not help lawmakers feel closer to a man who already had been around the Capitol for nearly 30 years but formed few close alliances.

YEARS OF PLENTY

The first half of his term was marked by large budget surpluses that made governing easier.

The administration trumpets increased per-pupil spending, which raised California from 47th in the nation to 21st, around the national average. Davis also promotes his system for accountability, which ranks every school in the state and puts the list on the Internet.

"Education is my passion," he said. "It is the reason I get out of bed in the morning."

The governor's top priorities -- "education, education and education" -- dominated the debate in the first two years. Davis made progress -- despite disputes with teachers and other interested parties.

"I think we made a lot of progress, and I'm not going to blow smoke -- we had our share of differences with the governor," said Wayne Johnson, president of the California Teachers Association. "But significantly more money has been put into our public schools. We may not always agree on how to spend it, but you have to applaud it."

MIXED RESULTS

The governor, however, did not get all of his education initiatives through.

A plan to cut the income tax for teachers was rejected by lawmakers. Performance bonuses have been turned down by some teachers and have been cut by lawmakers looking to slash this year's budget.

Davis set his priorities on education, but also acted on other fronts important to his party, signing laws banning assault weapons, setting up a department to oversee the managed care industry, and creating a domestic partner registry.

In speeches, Davis lists areas where California is now at the forefront.

"When I took office, we were the seventh-largest economy in the world -- now we are the fifth," he said. "In health care, I believe we lead the nation. We provided the first patient protection organization in the country. We have gone where other states haven't gone."

TOUGH TIMES MAKE HARD CHOICES

Davis' smooth ride in the Capitol changed with the energy crisis and now a $10 billion budget shortfall. It is harder to govern when difficult decisions have to be made, said Sen. Don Perata, D-Oakland.

"It's pretty easy for all of us to do well when there is money to be spent, " he said. "Politicians don't like to have to make choices. And he is going to have to make some tough decisions that will affect the traditional Democratic base."

Davis said he was conservative in his first two years -- insisting on one- time spending and reserves to prepare for this rainy day. But Republicans criticize the increase in state spending, blaming the governor for the current shortfall.

"Two years ago, we warned that the state was spending too much money too quickly," said Senate Republican Leader Jim Brulte of Rancho Cucamonga (San Bernardino County). "The state had a $6-to-$8 billion surplus when he took over, and there is a $12 billion deficit today. And it is almost all attributable to his spending patterns."

Critics said Davis did not act quickly enough during the energy crisis and overcommitted the state to long-term energy contracts.

"There was no effort to get out in front on the issue," Perata said. "It forced the Legislature to do what it does worst, which is making and administering policy."

Brulte also said he would not fault the steps Davis eventually took.

"But just about everything he did, he did too late," Brulte said. "If he had done everything earlier -- when some had advised -- we would have avoided a significant amount of the energy problem that was created."

LONE TRAVELER

For months, Davis traveled from one dusty construction site to another -- heralding new power plants being built. But he almost always was alone. Few lawmakers, who usually enjoy having their picture taken with the sitting governor, bothered to attend.

Many were back at the Capitol, attending long hearings and meetings, attempting to craft their own solutions.

California ended up with six days of blackouts, but far fewer than the 36 that were predicted.

Davis, who admits to knowing nothing about energy before the summer of 2001,

can now easily discuss the complex market and how the system was out of whack.

He rattles off the reasons he believes the state got through the crisis as well as it did. They include widespread conservation -- encouraged by programs he initiated; licensing and building more power plants in the past two years than had been built in the previous 12; and signing long-term contracts that helped to tame the out-of-control spot market.

"I believe in the end energy is going to be a plus for Gray Davis," said Paul Maslin, Davis' pollster.

Despite these recited statistics, Davis' approval rating plunged during the height of the energy crisis and has yet to recover. In January, a Field Poll had his approval rating at just 39 percent -- down sharply from 57 percent in January 2001.

But Davis defends his actions.

"They said you weren't quick to act, so they wanted me to pass on a 400 percent rate increase to you, which I was not about to do," Davis said.

DESPITE DIP, PREDICTS VICTORY

Already, Davis has been the main target of the three Republican gubernatorial candidates. Once thought to be invincible -- with a $30 million war chest and popular support -- Davis is now seen as vulnerable.

But he has come from behind before, and he calmly predicted a double-digit victory in November, despite most polls showing him losing to Riordan, the Republican former mayor of Los Angeles, right now. Davis just has to get his message out, said Maslin.

"Over the course of a long campaign, there will be ample time for the governor to debate the real key issues facing the state," he said. "Over time, the governor's position is going to get stronger and stronger, and he's going to be in terrific shape come the fall."

JOSEPH GRAHAM

DAVIS JR.

(nicknamed "Gray" by mother)

Age: 59. Born Dec. 26, 1942, in New York City.

Education: B.A. Stanford University; law degree from Columbia University.

Background: Served as a U.S. Army captain in Vietnam; chief of staff to Gov.

Edmond G. Brown Jr. from 1975 to 1981; served in the state Assembly from 1983 to 1987; served as state controller from 1987 to 1995; served as lieutenant governor from 1995 to 1999; governor since 1999.

Family: Married to wife Sharon since 1983.

Information: Visit www.graydavis.com or call (310) 201-0344.

E-mail Lynda Gledhill at lgledhill@sfchronicle.com.

This article appeared on page F - 2 of the San Francisco Chronicle