WPPSS Nuclear Projects: The Rise and Fall of WNP-3 and WNP-5

WPPSS Nuclear Projects: The Rise and Fall of WNP-3 and WNP-5

The history of the Washington Public Power Supply System (WPPSS) serves as a cautionary tale of ambitious energy expansion, escalating costs, and the power of public oversight. What began as a massive effort to secure the region's energy future through five nuclear power plants eventually culminated in one of the most significant project failures in the energy sector.

The Ambition of WPPSS

In 1973, WPPSS applied for construction and operation permits to expand its energy capacity. By 1977, construction had begun on two major units: WNP-3 and WNP-5. However, the project soon faced severe financial turbulence. By 1980, massive cost overruns triggered a complete overhaul of management across all five WPPSS nuclear sites.

To stabilize the projects, Bechtel was appointed as the construction manager for WNP-1, 2, and 4 at Hanford. Meanwhile, EBASCO was brought in to lead a new management team for WNP-3 and WNP-5 at Elma. Under EBASCO's leadership, WNP-3 became the showcase project for the system, with construction progressing at an estimated rate of 2% per month.

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Public Backlash and Initiative 394

As the budget for the five plants ballooned from an initial estimate of US$4.1 billion to a staggering US$24 billion, public sentiment shifted. In November 1981, Washington state voters considered Initiative 394 (I-394). This ballot measure asked whether public agencies should be required to obtain voter approval before issuing bonds—loans used to fund large-scale projects—for major public energy acquisitions.

Despite being outspent by opponents by nearly seven-to-one, I-394 passed overwhelmingly. This was a pivotal moment for WPPSS; previously, as a municipal corporation, it had the authority to issue bonds without the consent of the voters. The passage of I-394 stripped WPPSS of this autonomy, forcing future funding requests to the public ballot.

The Collapse of WNP-3 and WNP-5

The financial viability of the projects crumbled shortly after the vote. WPPSS failed to sell nearly US$961,000,000 in bonds (approximately $3,206,090,000 in 2025 value) required to finish the work. Consequently, construction on WNP-5 was terminated in January 1982, having reached only 16% completion.

WNP-3 fared slightly better but ultimately met the same fate. In July 1983, while 76% complete, the project was placed in an extended construction delay. For years, equipment was preserved in hopes that rising regional energy demand would justify a restart. However, the WPPSS board officially resolved to terminate WNP-3 in 1994, and preservation funding ceased in 1995. The construction permit (CPPR-154) was terminated in 1999, and the site was transferred to the Satsop Redevelopment Project.

Key Facts

  • Only one success: Of the five proposed nuclear units, only WNP-2 was completed and put into operation.
  • Budget explosion: Estimated costs rose from US$4.1 billion to US$24 billion.
  • WNP-3 Status: Reached 76% completion before being abandoned.
  • WNP-5 Status: Terminated at 16% completion.
  • Financial failure: WPPSS failed to sell $961 million in bonds to complete the projects.

Site Reuse and Modern Redevelopment

Rather than total demolition, contemporary plans for the site focused on reconfiguration. While some equipment, such as the WNP-3 turbine, was removed, the existing buildings were intended to support a transition into an industrial, business, or research park.

A portion of the land—approximately 22 acres (8.9 ha)—was retained by WPPSS for a different energy solution. This led to the creation of the Grays Harbor Energy Center, a combined-cycle combustion turbine plant. This facility came online in 2008, providing 650 MW of electric generation, with plans for an additional 650 MW approved but not yet built.

In a strange turn of events, the grounds saw a temporary use in 2018, serving as a storage site for thousands of diesel Volkswagen vehicles recalled during the company's emissions scandal.

Summary of WPPSS Nuclear Project Outcomes
Project Unit Outcome Completion Percentage Key Note
WNP-1, 4 Not Completed N/A Managed by Bechtel
WNP-2 Completed 100% Only operational unit
WNP-3 Terminated 76% Transferred to Satsop Redevelopment
WNP-5 Terminated 16% Construction ended Jan 1982

Frequently Asked Questions

Why was construction on WNP-3 and WNP-5 stopped?

Construction stopped primarily due to massive cost overruns and the inability of WPPSS to sell nearly US$961 million in bonds to fund the completion of the projects.

What was the impact of Initiative 394?

Initiative 394 required public agencies to obtain voter approval before issuing bonds for major energy projects, removing the authority WPPSS previously had to fund projects without voter consent.

Did any of the WPPSS nuclear plants actually work?

Yes, out of the five proposed nuclear units, only WNP-2 was successfully completed and put into operation.

What is currently located on the former WPPSS site?

The site has been partially repurposed for the Grays Harbor Energy Center, a 650 MW combined-cycle plant, and has been used for industrial purposes, including the storage of recalled Volkswagen vehicles in 2018.

How much did the budget increase for the five plants?

The estimated construction budget grew from an initial estimate of US$4.1 billion to US$24 billion.