Simply adding supply to a dysfunctional market doesn't fix the market. We had hoped that the task force would address the market failures that have inflated gasoline, natural gas and electricity prices far above reasonable levels. Unfortunately, the Vice President's task force seems more interested in drilling and digging than dealing with our current problems. The Bush Administration must provide consumers with immediate relief by taking aggressive action to address blatant energy industry price gouging. Studies have shown that conservation measures, such as energy efficiency standards for autos and major appliances, have been a success.
Energy efficiency has the added benefit of lowering household utility bills.
That's why the Bush Administration should reverse its recent decision to back away from energy efficiency standards for air conditioners. Efficiency standards should be developed or strengthened for other products as part of a long term strategy to lower consumption. The plan will do nothing to meet the immediate concern of consumers - the high price of electricity. Neither competition nor regulatory tools are providing market discipline to prevent unwarranted price increases. If the market can't regulate prices properly, and FERC refuses to, Congress and the Executive Branch must step in to deal with this crisis.