The IEA advocates methods for determining and recovering stranded costs that are accurate, strictly enforced and designed to bring a rapid transition to full competition. Although each method has its drawbacks, divestiture of assets, combined with a wires charge, is a promising approach. The nuclear option should be maintained. Safety regulations should be cost-effective. Moreover, the IEA recommends removing all remaining obstacles to ownership changes of civil nuclear facilities, including foreign ownership.
Climate change is a third issue of paramount importance.
American commercial energy consumption and CO2 emissions are among the highest in the world, both per unit of GDP and per capita. Any effective international arrangement to combat climate change will therefore necessarily involve the US very heavily. DOE's recent comprehensive proposal for electricity restructuring also contains provisions aiming to increase the use of renewables. These initiatives focus heavily on technology development and deployment. The IEA is sceptical that the technologies thus developed will find their way onto the market in sufficient volume to allow the US to keep its Kyoto commitments.