Whoops

What Is Whoops?

Whoops is a negative shoptalk word involved at one at once for the former Washington Public Power Supply System (WPPSS). Shaped during the 1950s to guarantee steady electrical power for the Pacific Northwest, WPPSS didn't prevail on many fronts — thus, its epithet of "Whoops."

Grasping Whoops

Whoops, or WPPSS, financed the construction of five nuclear power plants by giving billions of dollars in municipal bonds during the 1970s and 1980s.

In 1983, due to very poor project management, construction on certain plants was canceled, and completion of the leftover plants appeared to be improbable.

Thus, the take-or-pay arrangements that had been backing the municipal bonds were governed void by the Washington State Supreme Court. Accordingly, in 1983, the WPPSS had the biggest municipal debt default ever.

Early History of Whoops

Nuclear power became well known during the 1960s when it was perceived as clean and reasonable. WPPSS or Whoops considered this to be an opportunity to satisfy the developing need for power in its region. It scheduled five nuclear power plants financed by a [public bond](/public-reason bonds) issuance to be reimbursed with proceeds from the plants. The bonds were issued, yet sales didn't live up to assumptions.

The Packwood Lake Dam, its most memorable project, ran seven months over the scheduled completion date. This was the beginning of WPPSS's public works issues.

The construction issues at the plant included cost invades and poor project management. Contractors leveraged government failure and cheated and under-conveyed.

This made safety overseers demand more severe rules, which were carried out mid-construction by the Nuclear Regulatory Commission (NRC). Accordingly, a large part of the project must be rejected then updated and remade.

High Costs and Big Trouble

Toward the beginning of the 1980s, only one of the five WPPSS plants was close to complete. Furthermore, to make an already difficult situation even worse, by then, at that point, nuclear power was found not to be just about as cheap and beneficial as guaranteed, and public assessment betrayed it.

A few urban communities in the region even boycotted nuclear power before the facilities were ready to go. Cost overwhelms proceeded to where more than $24 billion would have been required to complete the work. Yet, the low power sales couldn't cover the deficits. Construction ended on everything except the close completed second plant. The main plant again must be overhauled.

The Washington Public Power Supply System was forced to default on $2.25 billion in municipal bonds. The subsequent plant at last became operational in 1984, yet it too little too late for investors. On Christmas Eve 1988, a $753 million settlement was reached. While a portion of the system's roughly 75,000 bondholders received $0.40 on every dollar they had invested, different bondholders received just $0.10 for every dollar they had invested.

Special Considerations

The WPPS changed into Energy Northwest in 1999, and the moniker of "Whoops" is currently obsolete.

Highlights

• In 1983 the Washington Public Power Supply Company was responsible for the biggest municipal debt default ever.
• Today, the Washington Public Power Supply Company is called Energy Northwest company and is not generally alluded to as "Whoops."
• During the 1980s, the company confronted a series of costly misfortunes.
• Whoops is a derogatory shoptalk term for the Washington Public Power Supply System.