Whoops
Candlefocus EditorWhoops is a derogatory slang term for the Washington Public Power Supply System which underwent a series of costly setbacks in the 1980s. Once simply known as the Washington Public Power Supply Company (WPPSS), the now-infamous moniker was adopted as a result of the tremendous financial difficulties the company faced after being charged with the largest municipal debt default in history.
The current incarnation of WPPSS is known as Energy Northwest, and its former name has largely fallen out of usage today. When people use the name "Whoops," they often invoke a sense of cautionary tale of debt and financial disaster with which the former moniker has become infamous.
The downfall of WPPSS began in the 1970s, when demand for electrical energy soared. In an effort to supply renewable energy to the region, the company launched several ambitious nuclear power plants. As these efforts were not part of the company's core expertise, the plants failed to produce the expected gains, resulting in huge levels of debt.
The company was also subject to huge cost overruns, negligence and false estimates in the construction of its nuclear plants. In 1983, the WPPSS defaulted on over $2.25 billion in debt, resulting in the largest municipal debt default in history. The debt could not be repaid due to plummeting electricity prices and the tremendous debt to which the company had committed itself.
The legacy of this mistake still plagues Energy Northwest today. Bondholders were forced to accept pennies on the dollar for the debt owed them, and the company faced a series of lawsuits for its mismanagement of the project. As a result, the unfortunate history of Whoops has earned the organization a lasting notoriety.
The history of Whoops is a reminder of the potential pitfalls faced by companies who take on ambitious projects. By relying too heavily on a different specialty, or committing to a project without first assessing the potential costs, companies can find themselves in positions like that of the Washington Public Power Supply Company: greatly in debt, unable to meet their commitments, and facing costly legal battles. Fortunately for Energy Northwest today, the company has learned much from its past mistakes, and is dedicated to producing renewable energy safely and reliably.