A deal to pay off its debt and get the state to borrow $1 billion in gas from the Connecticut Natural Gas Development Corporation is the latest example of a natural gas boom that has helped boost the state’s economy and pushed up its energy costs.
The governor’s office said Friday that the state has raised about $1 million in financing for the project.
The amount of debt financing has been about $100 million, said Scott Breen, a spokesman for Gov.
Dannel P. Malloy.
The state has received $250 million in natural-gas financing for infrastructure projects since 2013.
The utility also has committed $40 million for a gas-powered road in central Connecticut.
The money is needed to pay for utilities that run power lines and substations to the project, said Breen.
That’s partly because Connecticut is an important gas-producing state, and it is also helping to pay down the state debt.
The new gas project is being funded through a $10 million bond that the governor’s administration issued in April, with state and federal agencies contributing $25 million each.
That means Connecticut is now using $1 of every $10 it borrows to pay its debts, the governor said.
The $1,600-a-month rate will be waived if the utility passes a loan-rating audit.
The company’s bond rating is the same as a $1-a