BGE Seeks Baltimore-Only Conduit Surcharge
Baltimore City opposes a proposed surcharge that would apply only to city electric customers to cover rising underground conduit fees.
Updated on Nov. 4, 2026 in Utilities
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BGE has asked the Public Service Commission to approve a surcharge of about $9 per month on Baltimore City electric customers starting January 1, 2027. Baltimore City filed a formal response opposing the proposal.
Why it matters
The surcharge would pass through costs of Baltimore's city-owned underground conduit system to city ratepayers only, while BGE says it would shield customers in surrounding counties. The outcome affects how infrastructure costs are allocated between city residents and the wider service territory.
BGE's filing projects a roughly $9 monthly charge on Baltimore City electric bills, tied to an 84% planned rise in conduit fees after nearly $375 million collected since 2016. The Commission has not decided the request, and the city's objections remain pending.
The players
BGE (Baltimore Gas and Electric)
BGE is the electric and gas utility serving central Maryland, including Baltimore City and surrounding counties.
Maryland Public Service Commission
The Maryland Public Service Commission is the state agency that regulates utility rates and will decide whether to approve the proposed surcharge.
Baltimore City
Baltimore City owns the underground conduit system and filed a formal response opposing the surcharge on behalf of city ratepayers.
The details
Baltimore City owns the century-old underground conduit network that carries electrical, telecommunications and fiber-optic cables, and city law requires underground electric facilities to use it. Following the Board of Estimates' approval of an updated cost for all conduit users, BGE asked regulators to apply the resulting increase through a surcharge limited to city customers.
Timeline
2016: Baltimore began collecting conduit fees, totaling nearly $375 million since then.
End of 2026: The city begins solely updating the underground conduit system.
January 1, 2027: The proposed surcharge would begin appearing on Baltimore City electric bills.
Market Landscape
Because Baltimore law requires underground electric facilities to use the city-owned conduit system, the cost of that network falls on whoever is connected to it. BGE's proposal would tie that cost to city ratepayers alone rather than spreading it across its wider Maryland service territory.
If approved, Baltimore City electric customers would see roughly $9 added to their monthly bills starting January 1, 2027. Residents in surrounding counties would not pay this specific surcharge under BGE's proposal.
The takeaway
Residents who pay BGE bills in Baltimore City should watch the Public Service Commission's decision, since it determines whether conduit costs are passed through to them directly. Reviewing a bill for any new conduit-related line item will show whether the surcharge takes effect.
What happens next
The Maryland Public Service Commission will consider BGE's request, and the surcharge would take effect January 1, 2027 if approved.
Further reading
For related coverage of how these charges are set, see Utilities in Baltimore.
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