Baltimore Board of Estimates ends 2023 BGE deal, setting up higher fees to use conduit system
BALTIMORE —
A deal that sparked debate three years ago in Baltimore is officially on its way out.
The Baltimore Board of Estimates met Wednesday and voted to end a 2023 agreement with Baltimore Gas and Electric, opting to increase fees the utility must pay to use the city’s underground conduit system starting next year.
“We have to recognize that things have changed in the past three years,” Baltimore Mayor Brandon Scott said, citing higher construction costs, public safety concerns and the aging system as reasons for the decision.
The vote changes a deal that allowed BGE to trade repairs for rent. When the agreement expires at the end of the year, the utility will begin paying $4.05 per linear foot, up from the current rate of $2.20.
“Approving this rate adjustment will strengthen the reliability of the city’s conduit system, reduce safety risks and lessen the frequency of emergency repairs by allowing the department to invest proactively rather than reactively,” said Veronica McBeth, director of Baltimore City’s Department of Transportation.
BGE is the primary user of the city’s 700-mile conduit network, which is more than a century old, carries power and telecommunication lines beneath Baltimore.
“This is going to be absorbed by customers, not just within Baltimore City but across the region,” said Brittany Jones, BGE’s vice president of governmental and external affairs.
Video below: Baltimore mayor proposes new rate for BGE
BGE opposes the move, warning that the increased costs would be passed on to customers across Maryland.
“Every electric customer we serve will see an increase in their bills because of this vote,” said Nick Alexopulos, senior communications manager for BGE. “We will continue to do everything we can to advocate for them, to make sure that these undue cost burdens are not something that they have to deal with.”
The utility estimates the change could result in a few dollars’ increase per month for customers, though the final decision on rate adjustments will be made by Maryland’s Public Service Commission.
“BGE will say that they’re going to pass the rate on to the customers, but that’s not their decision. That’s the Public Service Commission’s decision,” Baltimore City Council President Zeke Cohen said.
Letters of Opposition filed with the Board of Estimates