Baltimore City Approves Massive Conduit Fee Increase

The 84 percent rate hike will add nearly $50 million in costs for local BGE electric customers in 2027.

Updated on Oct. 20, 2026 in Utilities

Baltimore City Approves Massive Conduit Fee Increase

Live Poll

Should residents be responsible for paying specific infrastructure surcharges imposed by their local city government?

The Baltimore City Board of Estimates has approved an 84 percent increase in conduit fees to fund city infrastructure and overhead. The new rate is expected to add a $9 monthly surcharge to the bills of typical Baltimore City households starting in 2027.

Why it matters

The fee hike functions as an infrastructure tax on BGE electric customers, who rely on the city-owned underground conduit system. BGE has requested that the Maryland Public Service Commission limit the financial impact of these fees on city residents specifically.

The conduit fee hike will burden BGE customers with nearly $50 million in costs throughout 2027. This follows a period where Baltimore City collected $375 million in conduit revenue since 2016 while BGE invested $30 million annually in improvements.

The players

Baltimore City Board of Estimates

This body is responsible for the financial administration of the city, including the review and approval of municipal fees and contracts.

BGE

BGE is a major electric and gas utility provider serving residents and businesses across central Maryland.

Maryland Public Service Commission

This state agency regulates public utilities and transportation companies to ensure safe and reliable service at just and reasonable rates.

The details

BGE is one of approximately 40 entities that utilize the city-owned underground conduit infrastructure for electric facilities. The city intends to continue increasing these fees annually, prompting BGE to file a formal request with state regulators to address the allocation of these costs.

Since 2016, Baltimore City has collected $375 million in conduit revenue.
New surcharges are set to appear on customer bills starting Jan. 1, 2027.
The cost burden for BGE customers is projected to reach nearly $50 million in 2027.

Market Landscape

This conduit fee dispute reflects broader tensions as municipalities increasingly leverage infrastructure assets to generate revenue, often resulting in conflict with private utility providers. These moves frequently trigger regulatory intervention to determine how such municipal charges are passed down to retail utility customers.

Typical Baltimore City households should prepare for a $9 monthly surcharge on their electric bills starting in early 2027. Depending on the outcome of the utility commission filing, customers may see these costs separated from standard energy usage rates.

The takeaway

The approval of this fee hike signals a shift in how city infrastructure maintenance is funded, moving the burden directly to utility ratepayers. Residents should monitor future commission rulings to see if these costs remain bundled or are isolated on their monthly statements.

What happens next

The Maryland Public Service Commission will announce a decision on BGE's filing regarding the isolation of conduit fee costs at a later, yet-to-be-determined date.