Baltimore leaders defend conduit takeover as BGE warns of higher costs
Baltimore City is preparing to take over its underground conduit system from Baltimore Gas & Electric (BGE), a move city leaders say will modernize the aging infrastructure but could lead to higher costs.
The century-old network of underground conduits, which houses electrical, telecommunications and fiber-optic cables, has been operated by BGE for decades under a contract that expires at the end of 2026. The city will assume control of the system in January 2027.
City leaders held a meeting Wednesday to discuss the transition, including plans to modernize the conduit system, improve safety and establish a new city-run operation.
"I just didn't think it exactly made sense, and I think over the last couple of years we've been proven correct in that regard," Baltimore City Councilmember Mark Conway said.
Customers currently pay $2.20 per linear foot to use the conduit system. The city is proposing nearly doubling that rate, saying the increase is needed to cover inflation and the rising costs of operating and maintaining the network.
Over the years, underground fires have occurred throughout Baltimore, raising concerns about the condition of the aging infrastructure.
"BGE has not been a true partner in providing essential services for our residents," Baltimore City Council President Zeke Cohen said.
BGE argues the proposed increase is too steep and says the higher fees would ultimately be passed on to utility customers.
"That's why BGE, from square one, was, 'Let's not increase this any more than they have to,'" BGE spokesperson Nick Alexopulos said.
Some Baltimore residents said they worry they won't be able to absorb higher utility costs.
"I just don't understand how this can happen," Baltimore resident Lisa Leidig said. "They need to lower the prices and the cost of living because a lot of people like myself can't make it that much anymore."
Mayor Brandon Scott defended the proposed rate increase, saying it is necessary to account for inflation and the higher costs of operating the system.
"Yesterday's price is not today's price," Scott said.
Scott said the city will establish a conduit division within the Baltimore Department of Transportation to manage the system beginning in 2027. He said the division's final operating costs will depend on staffing levels and other operational needs.
