Democrats, White House prepare for 2006 energy battle

Energy is poised to become a flashpoint in this year's midterm elections as congressional Democrats and the White House prepare to do battle over high prices and corporate "windfall" profits on the eve of tonight's State of the Union address.

Democratic Senatorial Campaign Committee Chairman Chuck Schumer (D-N.Y.) yesterday sent another clear signal that Democrats intend to play up high energy prices in their attempt to take back the House and Senate, saying the issue "will be a metaphor for the president as to why the public wants Democrats over Republicans."

Schumer and his House counterpart, Democratic Congressional Campaign Committee Chairman Rahm Emanuel (D-Ill.), told reporters yesterday that last year's energy bill gave the industry billions in tax breaks and other incentives but did nothing to wean Americans off foreign oil or protect consumers from price volatility in world oil markets or from high home heating fuel costs this winter.

Schumer, who last year called for a windfall profits tax on the oil industry and expects to do the same this year, said there is a high likelihood "of going back to very high levels of gasoline prices, which symbolize to Americans the lack of leadership in this country." He predicted prices could rise by 20 to 40 cents a gallon from today's levels by Memorial Day.

[Excerpt]