Scenario 15-2
Consider a local, privately-owned electrical cooperative named Poweshiek Power Company (PPCo). PPCo has just completed a clean-coal-burning electrical power plant in Iowa. Currently, PPCo can meet the electricity needs of all residents in the county. In fact, its capacity far exceeds the needs of the county. After just a few years of operation, the shareholders of PPCo experienced incredibly high rates of return on their investment due to the profitability of the corporation.
-Refer to Scenario 15-2. Which of the following statements is most likely to be true?

Question

Quizplus · Accepted Answer

(i) is true based on the scenario information that PPCo has just completed a clean-coal-burning electrical power plant in Iowa.
(iii) is true because it is mentioned that PPCo's capacity far exceeds the needs of the county, meaning they have excess electricity that they could potentially sell outside of the county.
(iv) is true based on the scenario information that the shareholders experienced high rates of return on their investment due to the profitability of the corporation.
(ii) is not necessarily true based on the information given as it is not mentioned if there are any plans for expansion or if there is a potential for future growth of electricity needs in the county.

Scenario 15-2 Consider a Local, Privately-Owned Electrical Cooperative Named Poweshiek Power Company