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BGE seeks approval to pass Baltimore conduit costs to city customers
BGE wants Maryland regulators to approve a surcharge of about $9 a month for Baltimore City customers, citing higher fees to use the city’s underground conduit system. City leaders oppose the plan, which remains under review by the Public Service Commission.
Baltimore Gas and Electric is asking state regulators to approve a monthly surcharge of about $9 for its Baltimore City customers, saying the charge would cover higher fees for using the city’s underground conduit system.
The proposal, announced Oct. 20, is under consideration by the Maryland Public Service Commission. If approved, the surcharge would begin next year and apply only to BGE customers who live in Baltimore City. It would not take effect unless regulators approve it.
The city’s proposed conduit fee is $4.05 per linear foot, with future adjustments for inflation. The Board of Estimates voted over the summer to increase the rent BGE pays to use the system by 84%. BGE says the change would add about $50 million in annual costs, which it wants to recover from customers.
BGE President and CEO Tamla Olivier criticized the increase at a news conference, arguing the city had not explained how it would use the additional revenue. The utility said negotiations to extend an existing agreement—in which BGE made capital improvements in exchange for a reduced fee—did not succeed.
Mayor Brandon Scott, City Council President Zeke Cohen and Comptroller Bill Henry urged the Public Service Commission to reject BGE’s proposal. In a joint statement, they said the company was seeking an unprecedented charge that would fall only on city residents, while avoiding what they described as its fair share of conduit-system maintenance costs.
BGE said that if regulators reject the city-only proposal, it could instead seek a $2.20 monthly surcharge on all of its customers, including those outside Baltimore City. The dispute puts state regulators at the center of a contest over who should bear the costs of maintaining infrastructure used by the utility beneath city streets.