From the power supply construction,energy sources distribution,the increasing trend of the peak and vale difference,it is necessary to build Pumped-storage power plant in China. Pumped-storage power plant can take on the tasks of reducing peak and fill in gvalley,emergency reserve,frequency modulation,phase modulation,etc. in Power system, it can guarantee electric system safely,stably and economically. The paper analyzes the current situation of the development of pumped storage power station, illustrated the pumped storage power station operator theory, and pointed out the investment and financing issues in Hohhot's electric power system. On the basis of abroad experience in the pumped storage power station management operating system ,it proposed reform direction of the investment and financing system, effective compensation mechanism of the pumped storage power station.
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