Utilities The FY27 gross utilities budget before any offsets is $7,457,115, representing an increase of $1,161,991 (18%) over the FY26 budget. Utilities are projected to account for approximately 2% of the overall $314.5 FY27 budget. The increase in utility costs is primarily driven by two factors: the transition of new and renovated school buildings to fully electric systems, which increases electricity usage, and rising utility delivery and supplier rates across regional energy markets. As buildings shift away from fossil fuels toward electric systems, costs are moving from the natural gas budget into electricity, while overall energy delivery and supply costs continue to increase. In accordance with the City of Newton’s commitment to sustainability and green energy, new and renovated school facilities are being designed to operate fully on electricity. Beginning with the Newton Early Childhood Program (NECP) and the newly renovated 150 Jackson Road (Lincoln-Eliot School), buildings are transitioning away from fossil-fuel heating systems toward fully electric operations. As the district continues to modernize school facilities and reduce reliance on natural gas, natural gas usage is expected to gradually decrease while electricity usage increases. Future electricity costs are projected to rise as these buildings come online due to their larger physical footprints, full air-conditioning systems, and increasing electricity delivery and supply rates. Electricity The gross FY27 Electricity budget is $4.786 million, a $1.090M (30%) increase from the FY26 budget. Much of this is due to the following reasons: • 150 Jackson Road (Lincoln-Eliot) reopened as a fully electric building beginning in September 2025, increasing district electricity usage as the building transitioned away from natural gas heating. • Electricity delivery charges, which cover the cost of transmitting power through the regional grid—continue to rise and are the primary driver of cost growth. Delivery costs are heavily influenced by peak demand, and the district has experienced sustained increases tied to higher system peaks and capacity-related charges. In FY26, delivery rates increased by approximately 15–20% from Eversource. While these rates fluctuate monthly, they have historically grown in the 2–4% range. For FY27, the district is projecting a more moderate 5% increase across accounts. Total delivery costs are projected at $2.6M, representing 55% of the electricity budget. • The district maintains a fixed electricity supply contract at $0.121 per kWh. However, certain state and regulatory changes within the ISO-NE energy market, including environmental compliance and procurement adjustments, have resulted in modest increases to supply- related charges above the base contracted rate. These changes are outside the district’s control and have been most noticeable on electricity accounts.
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