Rethink the dereg rules Blackouts remind us that deregulation created some problems that need fixing.

BR-R-R-R-R-R!

The rolling blackouts across Texas during our recent cold spell got everyone's attention. There are now no fewer than four separate investigations into what went wrong and what should be done to prevent a next time. As well there should be.

In reading news reports and opinion articles about the blackouts, we can't help but notice the way the subject of electric deregulation is finding its way into the discussion. One of those informed viewpoints belongs to Bill White, the former Houston mayor and deputy secretary of energy in the Clinton administration, who also served on the board of the National Electric Reliability Council.

In last Sunday's Outlook section, White identified specific problems that came with the Texas Legislature's decision to allow the power industry to deregulate a decade or so ago, and said these must be fixed by "top public officials in Austin."

We concur. At the top of this list is restoring the requirement that utilities maintain a defined "reserve margin" to help guard against blackouts. White's points about the effect of political compromises in crafting dereg are well taken. These have resulted in added costs to consumers and a lack of oversight by the Texas Public Utility Commission. The PUC should be re-empowered to set these vital reserve margins.

With 20-20 hindsight, it seems clear that electric dereg weakened our system in several identifiable ways. Which reminds us that the movement to deregulate in Texas was most heavily promoted by companies and individuals whose methods of doing business were later discredited. We're speaking, in particular, of Enron. Several of those who lobbied state lawmakers so effectively have since served time in federal prison.

We notice, too, that promises of a new era of consumer choice have fallen short. Most consumers appear to be too timid to make changes in their service providers, perhaps out of fear that they do not know enough to make a good choice. And we also notice that electric bills are higher in areas of Texas under deregulation. For example, rates in the deregulated Houston market are considerably higher than those in Austin and San Antonio, which are served by municipally owned utilities.

In his Outlook piece, White also compared the risks of blackouts to conditions in underdeveloped countries, where such events are considered an uncomfortable fact of life. He warns further that there could be worse to come in the hot summer months unless steps are taken to bring back reserve margins.

The status quo isn't good enough for Texas. This state prides itself on being business-friendly while offering residents a high quality of life. The cornerstone of those promises is dependable electric power.

There is more than enough here to justify a rethinking of electric deregulation. We urge state leaders to make fixing this problem a priority.

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