Baltimore Approves Higher Underground-Conduit Fee Over BGE Objections

The city’s Board of Estimates voted to raise the charge from $2.20 to $4.05 per linear foot beginning in 2027.

Baltimore’s Board of Estimates has approved a higher fee for companies using the city’s underground conduit system, setting up a new cost structure for BGE and a fresh debate over whether utility customers will eventually pay more.

The board voted Wednesday to increase the charge from $2.20 to $4.05 per linear foot. The new rate is scheduled to take effect January 1, 2027, and will replace the city’s 2023 agreement with BGE, the largest user of the system.

That earlier arrangement moved away from a traditional franchise fee and required BGE to complete capital improvements valued at $120 million. City officials notified the utility in June that Baltimore would not renew the agreement under the same terms.

Mayor Brandon Scott said construction prices, system needs and public-safety concerns have changed since 2023. BGE objected, arguing that the city had not adequately justified the increase and warning that the added expense could reach customer bills.

Any direct rate impact is not automatic. The Maryland Public Service Commission—not BGE alone—reviews utility-rate requests. City Council President Zeke Cohen emphasized that distinction during the dispute, while Scott noted that BGE was already seeking a separate rate increase before the conduit vote. The mayor estimated the new fee could translate to roughly one additional dollar on a customer’s bill, though the final effect would depend on regulatory decisions.

The conduit network is a major but largely unseen piece of Baltimore infrastructure. It carries electric and communications lines below city streets, making the terms for access a question of both public revenue and long-term maintenance. The next step for residents is to watch the Public Service Commission, where claims about customer costs will face formal review.