Baltimore conduit franchise fee changes could raise infrastructure payments for BGE and other underground network users from January 1, 2027. Mayor Brandon Scott says the proposal addresses inflation, construction costs and urgent repair demands, as the Baltimore Chronicle editorial team notes.
New Baltimore conduit fee would apply to every user
The proposed rate is $4.05 per linear foot and would receive future inflation adjustments. It would replace Baltimore’s 2023 agreement with Baltimore Gas & Electric.
Under that deal, BGE funded capital improvements instead of paying the traditional franchise rate. The utility should complete about $120 million in conduit investments by late 2026, according to FOX45 News.
Other companies currently pay $2.20 per linear foot. That rate has remained unchanged since 2019.
The main changes proposed by the city are:
- a uniform fee for BGE and other conduit users;
- a January 1, 2027, start date;
- inflation-based future increases;
- more funding for proactive repairs;
- restored transportation department maintenance positions.
Baltimore officials argue the existing funding structure no longer covers daily operations and major construction work. Underground fires in 2024 and 2025 increased pressure for faster upgrades.
How the new rate compares with the existing system
The proposal would significantly change how private companies fund the city-owned network.
| Provision | Current arrangement | Proposed arrangement |
|---|---|---|
| BGE payment model | Capital improvements | Per-foot franchise fee |
| Other users’ rate | $2.20 per foot | $4.05 per foot |
| Effective date | Existing agreements | January 1, 2027 |
| Future increases | Limited | Adjusted for inflation |
| Primary purpose | Maintenance and projects | Repairs, staffing and modernization |
The earlier agreement required BGE to finance major improvements and pay an annual occupancy charge. Baltimore retained ownership of the network, according to the city’s 2023 conduit agreement release.
Officials oppose passing costs to BGE customers
City Council President Zeke Cohen supports the fee but opposes higher customer bills. He said company shareholders should finance the additional infrastructure costs.
Comptroller Bill Henry also backed the proposal. He described the fee as necessary for reasonable maintenance of publicly owned infrastructure.
The Baltimore underground conduit system spans about 700 miles. Its ducts and manholes carry electrical, telecommunications and fiber-optic cables across most of the city.
The proposal must move through the city approval process. Officials have not yet detailed BGE’s formal response or the potential effect on utility rates.
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