What is Whoops?
Whoops is a derogatory term that was once used to refer to the Washington Public Power Supply System (WPPSS). Constructed in the 1950s to provide a steady electricity supply for the Pacific Northwest, WPPSS was a failure in many aspects, which is why it was given the moniker “Whoops.”
Recognizing Whoops
In the 1970s and 1980s, Whoops, or WPPSS, issued billions of dollars in municipal bonds to fund the building of five nuclear power facilities.
Due to abysmal project management, the development of several units was canceled in 1983, and it was doubtful that the remaining plants would be completed.
Consequently, the Washington State Supreme Court declared the take-or-pay agreements that had supported the municipal bonds null and invalid. Therefore, the WPPSS had the most significant municipal debt default in 1983.
Early Whoops History
Because it was seen as affordable and environmentally friendly, nuclear power gained popularity in the 1960s. Whoops, also known as WPPSS, saw this as a chance to supply the increasing need for electricity in the area. Five nuclear power stations were slated to be built, with the revenues from the facilities being used to repay the public bonds issued to fund them. Although the bonds were issued, sales fell short of projections.
The Packwood Lake Dam’s first project took seven months longer than expected. This marked the start of WPPSS’s issues with public works.
The factory needed better project management and cost overruns during construction. Contractors took advantage of government inefficiencies to overpay and provide subpar work.
Because of this, safety inspectors demanded stricter regulations, which the Nuclear Regulatory Commission (NRC) put into effect in the middle of construction. Much of the project had to be abandoned, reconstructed, and revised.
Expensive and Troublesome
By the start of the 1980s, only one of the five WPPSS facilities was almost complete. To make matters worse, nuclear power was shown not to be as inexpensive and advantageous as previously believed, and public sentiment shifted against it.
Before the plants were operational, a few cities within the area even abstained from using nuclear power. Due to ongoing overruns, the construction would have needed to be completed with approximately $24 billion in costs. However, the low power sales weren’t enough to compensate for the shortfalls. All except the almost-finished second plant had their construction stopped. Once again, the initial plant required remodeling.
The Washington Public Power Supply System defaulted $2.25 billion worth of municipal debts. 1984 the second plant eventually started, but investors found it too little, too late. A settlement of $753 million was reached on Christmas Eve, 1988. A portion of the roughly 75,000 bondholders in the scheme got $0.40 for each dollar they invested, while other bondholders only received $0.10 in return.
conclusion
- A disparaging colloquial word for the Washington Public Power Supply System is “whoops.”
- Energy Northwest Corporation is the new name for the Washington Public Power Supply Corporation; it is no longer known as “Whoops.”
- The business had several costly setbacks in the 1980s.
- The Washington Public Power Supply Company was to blame for the best municipal debt default in history in 1983.
