Monday, August 06, 2007

Lake Elsinore Hyrdroelectric Project Gets Cash Infusion.

CNN is reporting that Nevada Hydro has secured $1.1 billion in private financing from Morgan Stanley for the LEAPS hydroelectric project at Lake Elsinore.

The money will be used to form LEAPS Hydro, LLC, the company that will build, own, and operate the project once it is permitted. The report didn't specify how the equity in the new company will be allocated between Morgan Stanley and Nevada Hydro.

According to the write-up:

"Having already completed federal environmental documents, the project is pending final federal license approval by the Federal Energy Regulatory Commission. Once final approvals are granted by the State of California and FERC, it will be possible to begin construction and come on line as soon as possible."

The likelihood of a favorable ruling from FERC, notwithstanding, the project still needs to go through regulatory channels in California and that promises to a bumpy road.

Stiff opposition to project remains based on economic and environmental concerns, and, as has been demonstrated repeatedly in California, that could be insurmountable.

LEAPS Secures Major Financial Backing [Press Release via]