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State regulators weigh who pays Baltimore’s higher conduit fees
BGE is asking Maryland regulators to keep Baltimore City’s 84% conduit-fee increase off electric bills for customers in surrounding counties. The utility estimates the change could add about $9 a month for a typical city household starting next year.
Baltimore Gas and Electric is asking Maryland regulators to limit Baltimore City’s newly approved conduit-fee increase to customers inside the city, a move that could affect electric bills across central Maryland next year.
The 84% increase is expected to generate nearly $50 million in 2027 costs for BGE customers if the expense is spread across its service area. Under BGE’s proposal, city customers would instead see a separate surcharge estimated at about $9 per month for a typical household, while customers in surrounding counties would not pay for the city-owned system. Businesses could face higher charges.
The Maryland Public Service Commission is reviewing BGE’s request. A decision is pending, and the city’s new fees are expected to appear on bills after Jan. 1.
Baltimore owns the underground conduits used for electric infrastructure within city limits. BGE is required to use the system, while the city is responsible for its maintenance, inspections and upgrades. The aging network has been linked to outages and underground fires, sometimes associated with crowded manholes and deteriorating conditions.
BGE says it had been investing about $30 million annually in conduit improvements under an agreement with the city, rather than paying the standard fee. The utility says that approach spread project costs over time and allowed upgrades to move ahead. Its president and CEO, Tamla Olivier, said the company offered to continue investing but opposed having customers outside Baltimore pay for a fee increase set by city leaders.
The city’s Board of Estimates, led by City Council President Zeke Cohen, approved the higher fee. According to the information provided by BGE, the added revenue is intended to cover city overhead and possible future infrastructure work. BGE says it sought more detail about how conduit revenue has been spent; city records show $375 million in conduit revenue since 2016, but the utility says it received annual revenue figures rather than a fuller accounting in response to a public-information request.
An independent consultant found that BGE’s improvements addressed factors contributing to conduit hazards and supported renewed capital investment, according to the utility. The commission’s decision will determine whether costs tied to the new fee are borne only by Baltimore customers or are shared more broadly among BGE customers.