None of these numbers make any sense, because they don't account for the longevity of the capital investments (10 years? 60 years?), as well as maintenance costs.
You're off by at least a factor of 5 on the $/MWH for this pumped storage plant, even without the longevity and O&M. A factor of 2.2 on the cost, and a factor of 2.4 on the capacity. The $1.6B cost is in 1985 dollars[1]. In 2016 dollars, the cost is $3.5B [2]. The capacity at 3GW is only 10 hours, not 24 hours [3].
The solution is to look at Lazard's analysis of the levelized cost of energy storage. [4]
For the purposes of the transmission system:
Pumped Hydro: $152 -- $198 / MWH
Lithium Ion: $276 -------- $561 / MWH
Note that these costs are per MWH delivered to the grid, accounting for all the costs over time of that system.
When lithium ion battery prices fall by 50%, they now match the most cost effective storage out there. This will happen within 10 years.
It's amazing how fast the technology is changing. Pilot projects like this one should be happening all over the country right now, because within 10 years, it will be the only cost-effective way to do these things.
[1] http://www.crcnetbase.com/doi/pdf/10.1201/b10778-1
[2] http://www.in2013dollars.com/1985-dollars-in-2016
[3] http://www.energystorageexchange.org/projects/4
[4] PDF: https://www.lazard.com/media/438042/lazard-levelized-cost-of...