Baltimore judge backs BGE bid to charge customers for $120 million in conduit upgrades

A Baltimore judge has given the local electric and gas utility, BGE, a win in the fight over who will cover upgrades to parts of the city's underground conduit system, a result that could leave customers paying much of the cost over time.

What happened?

According to WBFF, the ruling allows BGE to continue its plan to recover up to $120 million in costs over time through customer charges.

That outcome leaves in place a prior decision by a state regulator and turns aside a challenge from the Maryland Office of People's Counsel, which WBFF said represents local utility customers.

At the center of the case is Baltimore's unusual underground conduit network, a city-owned system of underground passages for electric, telecom, and other utility lines beneath city streets, as WBFF described it.

The plan stems from a 2023 agreement in which BGE committed up to $120 million to improve parts of that system by 2026, according to WBFF.

As part of that deal, BGE received reduced occupancy fees and said it would recover the upgrade costs from customers over time, the outlet reported.

Why does it matter?

Baltimore-area households already dealing with high living costs could face additional pressure on their utility bills.

Even if the money is recovered gradually, the ruling means residents may help pay for infrastructure upgrades tied to a city-owned system rather than having those costs absorbed elsewhere.

When families are already stretched by rising energy costs, they have less room in their budgets for essentials such as food, medicine, rent, and transportation.

While underground infrastructure upgrades can support reliability and safety, who ultimately pays for that work helps determine whether the process feels equitable.

Policies that shift major costs onto ratepayers can slow progress toward a more affordable and resilient future, especially for lower-income residents who are least able to absorb another expense.

What's being done?

The upgrades to the system are planned to be final in 2026, WBFF reported. 

The Maryland Office of People's Counsel's challenge shows there is still opposition to how those costs of these plans are being distributed.

Even with the court ruling, utility rate cases remain one of the main arenas where consumer advocates can push for stronger protections, greater transparency, and limits on passing major costs directly to customers.

The ruling is a clear victory for BGE, but for customers it leaves uncertainty around future rate hikes. 

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