Baltimore to End Deal Allowing BGE to Profit from City Utility System

Baltimore officials are set to terminate a controversial agreement with Baltimore Gas & Electric (BGE) that allowed the utility to profit from enhancements to the city's underground utility network, known as the conduit system.

This decision marks a significant shift for Mayor Brandon Scott, who initially supported the deal three years ago despite opposition from various city leaders. If approved by the city's spending board, the new plan would allow the city to resume capital improvements while requiring BGE to pay full rent for the conduit space it occupies.

Recent negotiations between city officials and BGE have highlighted disagreements over maintenance and investment responsibilities for the aging conduit system. Deputy Mayor Khalil Zaied emphasized the importance of the city taking the lead on necessary improvements, stating, "BGE did good work, meeting their obligation under the 2023 agreement, but with the additional investment we need to make, it’s important the city leads."

The original 2023 agreement permitted BGE to add hundreds of millions of dollars in costs to customer bills over time, although initial fees were reduced due to the city lowering BGE's conduit rental charges. The city has since sought to renegotiate these terms, especially after a series of fires within the conduit system raised concerns about safety and maintenance.

In the proposed changes, BGE's conduit rental fee would increase from approximately $2.20 to $4.05 per linear foot, nearly doubling the previous rate. This adjustment reflects the city's efforts to ensure adequate funding for improvements, as BGE currently occupies over 75% of the conduit space, with other telecom companies also subject to the new rental rates.

The conduit system, which dates back to the 1890s, has long been criticized for its outdated materials, with a significant portion still made from terra-cotta and Orangeburg. A 2025 report highlighted numerous deficiencies in the system, prompting calls for increased investment and upgrades.

City officials plan to reinstate Baltimore’s conduit division by the end of the year, aiming to manage additional work internally and enhance the safety and reliability of the underground network.

Reported by HarborBeat based on The Baltimore Banner (source).