What Is Whoops?
Let me tell you about Whoops—it's a negative slang term that was once used for the Washington Public Power Supply System, or WPPSS. This organization was formed back in the 1950s to provide reliable electrical power to the Pacific Northwest, but it fell short in many ways, earning it the nickname 'Whoops'.
Key Takeaways
You should know that Whoops is simply a derogatory slang for the Washington Public Power Supply System. Today, that entity is known as Energy Northwest, and no one calls it 'Whoops' anymore. In the 1980s, it dealt with a string of costly failures. Most notably, in 1983, it caused the largest municipal debt default ever recorded.
Understanding Whoops
Whoops, which is WPPSS, funded the building of five nuclear power plants by issuing billions in municipal bonds during the 1970s and 1980s. In 1983, due to terrible project management, construction on some plants was stopped, and finishing the others looked improbable. As a result, the take-or-pay deals backing those bonds were declared invalid by the Washington State Supreme Court. That led directly to WPPSS having the biggest municipal debt default in history that year.
Early History of Whoops
Nuclear power gained traction in the 1960s as a supposedly clean and cheap energy source. WPPSS, or Whoops, jumped on this to address rising power needs in its area. It planned five nuclear plants, financed through public bonds that would be paid back from plant revenues. The bonds were issued, but sales didn't live up to projections. Their first project, the Packwood Lake Dam, finished seven months late, kicking off a series of issues for WPPSS.
Construction at the plants involved huge cost overruns and bad management. Contractors took advantage of government inefficiencies, charging too much while delivering too little. Safety inspectors then pushed for stricter rules, enforced midway by the Nuclear Regulatory Commission. This meant scrapping, redesigning, and rebuilding large parts of the projects.
High Costs and Big Trouble
By the early 1980s, only one of the five WPPSS plants was nearing completion. To make matters worse, nuclear power was no longer seen as cheap or beneficial, and public sentiment shifted against it. Some local cities boycotted nuclear power even before the plants were operational. Costs ballooned to over $24 billion needed for completion, but low power sales couldn't cover the gaps. Work stopped on all but the almost-done second plant, and the first one needed redesigning again.
WPPSS had to default on $2.25 billion in municipal bonds. The second plant started operating in 1984, but it was too late for the investors. On Christmas Eve 1988, a $753 million settlement was agreed upon. About 75,000 bondholders got back varying amounts—some received 40 cents per dollar invested, while others got as little as 10 cents.
Special Considerations
In 1999, WPPSS rebranded to Energy Northwest, making the 'Whoops' label a thing of the past.
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