Baltimore has approved a major increase in the fee Baltimore Gas and Electric pays to access the city's underground conduit system, and the utility says that added expense could eventually reach customers through their monthly bills.
With energy costs already climbing, the fight highlights the tension between keeping utility service affordable and paying for major infrastructure work.
What happened?
According to the Baltimore Banner, the city's five-member spending board voted unanimously to raise conduit rent from $2.20 to $4.05 per linear foot, more than doubling the fee beginning January 1.
The outlet noted that BGE said the new price for using Baltimore's 741-mile underground utility system would likely show up in customers' monthly bills.
Addressing city officials, BGE Vice President Brittany Jones said, as the Baltimore Banner reported: "We have to prioritize affordability. Our customers are struggling to pay their current bills."
That vote followed Mayor Brandon Scott's decision to cancel a 2023 deal that had reduced BGE's rent while putting the company in charge of most capital improvements.
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City officials say a return to a standard rental arrangement is needed to help pay for improvements to the aging network.
Baltimore Deputy Solicitor Stephen Salsbury said, as the outlet reported, a 2025 study found dangerous overcrowding in conduit manholes and recommended installing new sensors to detect hazardous gas levels.
"Bottom line, if we were to return to the $2.20 linear foot rate, we could not meet the recommendations in that report," Salsbury told officials when asked if the city could afford to make recommended upgrades at the reduced rate, according to the Baltimore Banner.
Why does it matter?
For residents in Baltimore and nearby communities, the dispute comes as utility costs are already a growing burden.
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Separately, the Baltimore Banner noted that BGE is also seeking approval from state regulators for a rate increase that would add about $8 a month to the average residential electric bill, and Jones said the conduit fee increase could add still more.
The utility estimated that the conduit change could add roughly $1 to $2 a month for residential customers across several jurisdictions. Jones said that if regulators assigned the added cost only to Baltimore residents, bills in the city could climb by about $10 a month.
City leaders, however, say the risks of underinvesting in the conduit system are also serious.
They, as reported by the outlet, argue that an aging underground network exposed to fire hazards and gas buildup can put workers and neighborhoods at risk while threatening the reliability of essential services.
City officials say the higher fee is intended to fund needed safety improvements.
BGE has signaled that it may keep contesting the move, which could lead to another legal fight.
A similar dispute broke out in 2015, when Baltimore tried to raise conduit rates; BGE sued, and the eventual settlement left the fee at about the current $2.20 level, the Baltimore Banner reported.
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