For the second straight year, the NPU Sewer Division has received approval for a $15.5 million short-term line of credit from the NPU Electric Division to help cover costs of the ongoing work to build a new sewage treatment plant on Hollyhock Island near Norwich Harbor. The Board of Public Utilities Commissioners, which doubles as the Sewer Authority and oversees all NPU operations, approved the loan agreement Tuesday. The loan money will be paid back with the same interest rate that the Electric Division cash reserves earn on money kept in its M&T Bank account, currently 5%. The new line of credit will be available to the Sewer Division beginning July 1 and must be paid back in full by June 30, 2025. NPU General Manager Chris LaRose said the loan is necessary as bills must be paid to contractors working on the massive project sooner than reimbursement it receives for the work from the state through the Clean Water Fund. The project has been approved for a $67.6 million Clean Water Fund grant.
https://www.theday.com/local-news/20240601/norwich-public-utilities-sewage-treatment-project-to-receive-loan-from-electric-division/#