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Baltimore Plans to End BGE Conduit Deal and Set $4.05 Per‑Foot Fee

Returning capital work to the city is meant to pay for repairs to a century‑old underground duct network by charging users higher, inflation‑adjusted fees.

Employees of the city’s conduit division replace a cracked manhole on Cathedral Street in Mount Vernon
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Overview

  • On Tuesday, July 28, 2026, Mayor Brandon Scott’s office formally proposed a new conduit rental rate of $4.05 per linear foot, adjusted for inflation and set to take effect Jan. 1, 2027.
  • If the Board of Estimates approves the plan at its Aug. 5 meeting, the city will not renew the 2023 capital‑investment deal with Baltimore Gas & Electric and will resume direct responsibility for major conduit repairs while BGE would pay full rent.
  • City officials cited a string of underground fires in 2024 and 2025 and widespread aging materials—largely terra‑cotta and Orangeburg pipe across the roughly 700‑mile system—as justification for needing more city‑led investment.
  • BGE has publicly rejected the near‑doubling of the fee, warning it would raise customer costs even as the company says it is on track to meet about $120 million in conduit upgrades by the end of 2026.
  • The move revives criticism of how the 2023 deal was approved, pushes the city to rebuild its conduit division to do more work in‑house by year‑end, and could shift who ultimately bears upgrade costs between utility shareholders, corporate conduit users, and ratepayers.