From Maxwell’s equations and the Poynting theorem, the time-domain electric and magnetic energy densities are generally defined in the frequency-dispersive media based on the conservation of energy. As a consequence, a general definition of electric and magnetic energy is proposed. Comparing with existing formulations of electric and magnetic energy in frequency-dispersive media, the new definition is more reasonable and is valid in any case. Using the new definition and staring from the equation of motion, we have shown rigorously that the total energy density and the individual electric and magnetic energy densities are always positive in a realistic artificial left-handed medium (LHM) [R. A. Shelby, D. R. Smith, and S. Schultz, Science 292, 77 (2001)], which obeys actually the Lorentz medium model, although such a LHM has negative permittivity and negative permeability simultaneously in a certain frequency range. We have also shown that the conservation of energy is not violated in LHM. The earlier conclusions can be easily extended to the Drude medium model and the cold plasma medium model. Through an exact analysis of a one-dimensional transient current source radiating in LHM, numerical results are given to demonstrate that the work done by source, the power flowing outwards a surface, and the electric and magnetic energy stored in a volume are all positive in the time domain.