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Practice Reading: Multiple Choice, Single Answer ID: #34931 Electric cooperatives
Instructions ›
Read the text and answer the multiple-choice question by selecting the correct response. Only one response is correct.
Declines in renewable energy pricing are creating opportunities for electric cooperatives in the US to deliver cost savings to their members. However, this is also creating risks for those utilities that are slower to transition to these technologies, according to a new study. Electric cooperatives have proposed retiring significant coal capacity and generating 55 percent of their energy from wind and solar resources by 2026. This would likely result in net customer cost savings, because of the highly competitive bids for wind and solar energy.

What is the writer's main point about renewable energy pricing?

* Click on the correct answer

Result:

AI explanationShows the answer. Tap to open.
Option 1: "The decrease in renewable energy pricing can benefit consumers."

Explanation: The text clearly states that declines in renewable energy pricing are creating opportunities for electric cooperatives to deliver cost savings to their members. This aligns directly with the main idea that the decrease in pricing is beneficial for consumers, as it suggests that consumers will experience lower costs due to these changes.

Option 2: "The prices for new wind and solar projects are higher than the operating costs of existing coal assets."

Explanation: This option contradicts the text, which implies that the competitive bids for wind and solar energy are leading to cost savings for consumers. Therefore, it is incorrect to state that new projects are more expensive than existing coal assets.

Option 3: "Electric cooperatives plan to increase the energy pricing."

Explanation: This option is incorrect because the text indicates that the cooperatives are transitioning to renewable energy sources to achieve cost savings for consumers, not to increase pricing. The focus is on reducing costs, not raising them.

Option 4: "Coal capacity is being increased to meet rising consumer demand."

Explanation: This option is incorrect as the text mentions that electric cooperatives are proposing to retire significant coal capacity, not increase it. The focus is on transitioning away from coal to renewable sources, which contradicts the statement about increasing coal capacity.

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