Energy: there ought to be a law.(Memo To Members)(Editorial)

While Congress has focused on more immediate concerns, energy issues have been on the back burner. But as last year's energy crisis in California--and the current war on terrorism--are teaching us, a lot rests on how we handle our energy supply.

Last year, the House of Representatives passed a "comprehensive" energy bill that was anything but. It failed to include the critical categories of electricity pricing and supply. The bill that passed also lacked any adjustments to the current fuel-economy standards for passenger vehicles, even though a six-year freeze on changing them ended in early December. As of this writing, the Senate has yet to consider any energy package whatsoever.

Congress clearly needs a jolt. We believe it should make energy issues a priority, with legislation in both these areas:

Electricity supply. If nothing else, the California energy crisis showed that consumers expect and deserve some basics from their electricity supply. It should be dependable--people should not have to wonder when there will be brownouts or blackouts--and the price should be predictable, stable, and fair.

Conservation can reduce electricity consumption substantially. But much of our electricity consumption is unavoidable: Even the most-efficient refrigerators need to stay cold and showers need to stay hot. Lights, heaters, and alarms have to function.

That's why Congress must ensure that the least powerful electricity consumers--homeowners and small businesses--are protected from market abuses. In states where electricity rates are deregulated and set by market forces, not energy commissions, Congress and energy regulators must mandate an open trading system, publicly disclosing the terms and conditions of deals among energy suppliers. Government should also make sure there is sufficient reserve capacity and an adequate transmission system.

Electricity deregulation exists in some form in about half the states. But it's obviously not working for residential consumers, who are getting neither savings nor guaranteed reliability. Some ...