Baltimore Conduit Takeover From BGE Could Raise Costs
City Leaders Defend Proposed Conduit Rate Hike Ahead of BGE Takeover
Baltimore City is preparing to take control of its century-old underground conduit system from Baltimore Gas & Electric, a transition that officials say is necessary to modernize the aging network but could result in higher costs.
The underground system carries electrical, telecommunications and fiber-optic cables throughout the city. BGE has operated the network for decades under an agreement that expires at the end of 2026. Baltimore is scheduled to assume control in January 2027.
CBS Baltimore reports that city officials met Wednesday to discuss the transition, including plans to improve safety, upgrade the infrastructure and create a city-run operation to oversee the system.
The city is proposing a significant increase in the rate companies pay to use the conduits. Customers currently pay $2.20 per linear foot, but the proposed rate would nearly double. Officials said the increase is needed to account for inflation and the rising costs of maintaining and operating the system.
Concerns about the condition of the underground infrastructure have grown following several underground fires across Baltimore over the years.
Baltimore City Council President Zeke Cohen criticized BGE’s management of the system, saying the company has not been a reliable partner in delivering essential services to residents.
BGE maintains that the proposed rate increase is excessive and warned that the additional costs could eventually be passed along to utility customers.
Some residents are also concerned that they will be unable to afford another increase in their monthly expenses as the cost of living continues to rise.
Mayor Brandon Scott defended the proposal, saying current rates no longer reflect the true cost of operating the system.
The city plans to create a new conduit division within the Baltimore Department of Transportation to manage the network beginning in 2027. Final operating expenses will depend on staffing needs and other costs associated with running and modernizing the system.
City Leaders Defend Proposed Conduit Rate Hike Ahead of BGE Takeover was originally published on 92q.com
