Analysis claims BGE pipeline program could drive up customers' bills

Analysis claims BGE pipeline program could drive up customers' bills

Maryland PIRG Foundation has growing concerns with BGE's Operation Pipeline Program.

In new findings, the foundation claims the list of projects designed to replace natural gas pipes could drive up costs for customers due to wasteful spending.

They say the method behind BGE's program may slow the work to replace and repair cast iron and bare steel gas pipes, and the delay could drive up project costs, leaving customers to fork out more money.

The foundation also believes that BGE isn't prioritizing safety or risky projects. 

BGE denies those claims.

"Out of control capital spending is in large part why gas distribution rates on our bills have tripled since 2010," said Baltimore City Council President Zeke Cohen.

Cohen stands behind the Maryland PIRG Foundation and other agencies, calling on the Public Service Commission to ensure that BGE and its Operation Pipeline Program are compliant with state law.

PIRG's analysis of the program

PIRG recently released its new analysis on the program looking to replace cast iron and bare steel gas pipes.

"BGE is charging customers billions under the banner of safety for a program that may actually be delaying the work to replace, repair the riskiest cast iron pipes," said Emily Scarr, a senior advisor for the Maryland PIRG Foundation.

The analysis claims that BGE will spend more than $4 billion.

"At a customer cost of about $19 billion over time," said David Lapp, with the Maryland People's Counsel. "That spending will drive BGE's rates much higher than they already are."

The consumer group said the gas and electric company doesn't prioritize risky pipes, such as cast iron, but focuses on converting its pressure system from low to medium.

They're asking the Public Service Commission to step in to make sure BGE complies with state law.

"In 2025, 85% of our planned operation pipeline work was abandoning the cast iron main," BGE spokesperson Nick Alexopulos said in response. "That number was conveniently left out of the report."

BGE responds

BGE Spokesperson Nick Alexopulos said a focus on low-pressure gas infrastructure is necessary.

He said much of the company's cast iron pipes are low-pressure, which has been recognized as a risk by the Pipeline and Hazardous Materials Safety Administration.

"We are engaged in proactively replacing the riskiest part of the system, which is roughly 12% of it," Alexopulos said. "That is not wholesale replacement. That is targeted replacement."

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