Baltimore city leaders officially voted on Wednesday to hike BGE conduit fees, ending a controversial 2023 infrastructure agreement with Baltimore Gas and Electric. The Board of Estimates approved raising the underground franchise rate from $2.20 to $4.05 per linear foot starting next year. Mayor Brandon Scott pointed to rising construction costs and urgent public safety needs across the aging 700-mile underground network as the main reasons for stepping back from the old repair-for-rent model.
Why Baltimore Leaders Increased BGE
The decision to raise BGE conduit fees marks a major policy shift for Baltimore City. Under the previous 2023 deal, BGE agreed to perform $120 million worth of capital repairs on the city-owned network instead of paying traditional annual franchise rent.
City transportation officials noted that direct city control over maintenance funds is vital to prevent underground electrical fires and repair aging manholes. BGE uses about 75% of the total underground system, making it the largest occupant paying into the new rate structure.
How Rising BGE Conduit Fees Could Affect Customer Utility Bills
BGE leadership strongly opposed the rate hike, warning that higher BGE conduit fees will lead to higher monthly bills for utility customers across central Maryland. Representatives for the energy company estimated that local households could see their monthly bills jump as a result of the city’s rate hike.
However, Baltimore City Council President Zeke Cohen emphasized that BGE cannot raise customer utility rates on its own. Any cost increases passed on to ratepayers must first receive approval from the Maryland Public Service Commission.
My Opinion
Managing century-old underground infrastructure is always a tough balancing act, but handing control of municipal assets over to a private utility was bound to create tension down the road. Baltimore’s 2023 deal tried to shortcut budget problems by letting BGE fix the lines instead of paying rent. While that brought fast repairs to some spots, it also meant the city lost direct oversight over its own public network.
When underground fires broke out in downtown Baltimore over the past two years, it became clear that a private company answers to shareholders first, while the city has to answer to every resident walking above those cables. Taking back financial control and raising rates to fund proactive repairs makes administrative sense if you want safer streets.
At the same time, working-class households are already dealing with high inflation and rising living costs. If BGE takes this fee hike straight to the Public Service Commission and gets approval to pass every cent onto ratepayers, everyday residents end up carrying the burden. City leaders cannot just celebrate winning a fee increase; they need to show up at state regulatory hearings and actively fight to make sure BGE absorbs a fair share of these operating costs out of its corporate profits.
Bottom Line
The vote to double BGE conduit fees restores municipal control over Baltimore’s historic underground network. As the new rates take effect on January 1, 2027, all eyes will shift to state regulators to determine how much of this cost lands on public utility bills.
