Baltimore to Renegotiate Underground Utility Agreement with BGE

Baltimore city officials have announced their decision to not renew the existing agreement with Baltimore Gas and Electric (BGE) regarding the city’s underground utility network. This agreement, which allowed BGE to invest in the infrastructure, will be renegotiated instead of automatically extended.

Mayor Brandon Scott's administration communicated this decision in a letter sent to BGE on Friday. Veronica McBeth, the city’s director of transportation, indicated that the current agreement does not require sufficient investment from the utility company.

The city's choice to pursue renegotiation is influenced by rising costs of labor and materials, as well as increasing public safety concerns related to the underground system. A recent report highlighted these issues, particularly in light of a series of explosive incidents within the underground network.

In response to the city’s decision, BGE spokesman Nick Alexopulos expressed the company's respect for the decision to not renew the agreement under its current terms. He emphasized BGE's commitment to collaborating with the city to enhance and modernize the critical infrastructure while focusing on affordability for customers.

The existing deal covers Baltimore's 740-mile underground utility system, known as the conduit, which accommodates utility and telecommunications lines. Under previous arrangements, utilities like BGE paid rent to the city for space in this system, while the city was responsible for capital improvements.

In 2023, the Scott administration had signed an agreement requiring BGE to invest up to $210 million over six years, with an initial three-year term and a possible extension. This deal was set to renew automatically at the end of the year unless the city provided notice by July 1.

The original agreement faced criticism, particularly due to the mayor's strong push for its approval. The city’s Board of Estimates, which is largely controlled by the mayor, approved the deal, although it faced a boycott from some council members during the voting.

In light of these developments, the Baltimore City Council had previously conducted hearings to scrutinize the agreement.

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