Baltimore Mayor Introduces New Fee for Underground Conduit Users

Baltimore city officials are moving forward with a proposal to implement a new fee for companies utilizing the city's underground conduit system. Mayor Brandon Scott announced the conduit franchise fee, which is designed to address rising maintenance costs and the increasing demand for repairs following a series of underground fires in 2024 and 2025.

Set to take effect on January 1, 2027, the fee will apply to all users of the conduit system at a rate of $4.05 per linear foot, with provisions for future inflation adjustments. This new fee structure will replace the existing agreement established in 2023 between the city and Baltimore Gas & Electric (BGE), the primary user of the conduit system.

Under the 2023 agreement, BGE was required to invest approximately $120 million in capital improvements to the conduit system by the end of 2026. However, city officials indicated that this arrangement, along with the $2.20 per linear foot fee paid by other conduit users, is no longer sufficient to maintain the infrastructure due to inflation and evolving repair needs.

City leaders have emphasized the necessity of proactive maintenance and upgrades to the aging system, which spans 700 miles and houses essential electrical and telecommunications infrastructure. The Baltimore City Department of Transportation plans to reinstate several positions dedicated to conduit maintenance to support this initiative.

Council President Zeke Cohen expressed his support for the new fee and indicated that he hopes BGE will absorb the costs without passing them on to consumers. City Comptroller Bill Henry also endorsed the proposal, stressing the importance of setting a reasonable fee that reflects the city's responsibilities as stewards of public infrastructure.

City Solicitor Ebony M. Thompson affirmed the city's authority to impose a fair rate to ensure the conduit system's upkeep. The proposed fee will be presented to the city’s Board of Estimates on August 5, 2026.

Reported by HarborBeat based on WBFF (source).