In a statement, the developer, Nevada Hydro Company, said the new corporate entity was being established to build, own and operate the US$1.1B pumped storage scheme and its associated transmission lines.
LEAPS and the transmission links are mostly located in the Cleveland National Forest. The pumped storage project will move water between Lake Elsinore, which is the state's largest natural lake, and an upper reservoir in Decker Canyon.
The scheme is being developed by Nevada Hydro in co-operation with Elsinore Valley Municipal Water District (EVMD). Nevada Hydro said the development process had completed federal environmental documentation and approval was pending for a licence from the Federal Energy Regulatory Commission (FERC).
EVMD completed the second phase of the permitting process for the project three and a half years ago. But last year the project drew further criticism in the form of the US Environmental Protection Agency (EPA), which was unhappy about the plan to dam Morell canyon in the national forest. The Agency argued that the canyon held springs in a rare sloping wetland and interference would upset the nation's waters.
Nevada Hydro added: 'Once final approvals are granted by the State of California and FERC, it will be possible to begin construction and come online as soon as possible.'
In addition to Morgan Stanley, the firm's other supply chain partners on the project are voith-siemens, which will build the units, Siemens Power Transmission & Distribution, and consultant Devine Tarbell & Associates, which has been undertaking preliminary engineering.
