BALTIMORE, MD (WBFF) — Baltimore Gas and Electric (BGE) is pausing its proposed Baltimore Peninsula project, which would include underground transmission lines.
BGE announced that it is temporarily pausing design and engineering work:
After careful consideration, BGE is temporarily pausing design and engineering work on the Port Covington project in south Baltimore City. This project bundle—which includes the Greene Street to Port Covington transmission line, the Port Covington substation, and the Westport to Port Covington transmission line—will expand system capacity to support economic development and improve reliability for tens of thousands of new and existing customers in the area.
This pause does not change the underlying reliability needs in this part of the city, but it is a deliberate step that allows us to deepen engagement with local residents and community leaders, incorporate any updated development plans from Baltimore Peninsula’s new ownership, and thoughtfully review recommendations raised by Senate President Ferguson. We appreciate the outreach and leadership from Senate President Ferguson on behalf of the residents of his district, along with the leadership of Councilwoman Porter and Councilman Blanchard, who represent communities in the city where this project is located.
To be clear, this project does more than accommodate load growth; it also addresses reliability risk from critical transmission and distribution infrastructure that dates back to the 1950s. That risk grows each day this aging equipment stays on the system.
We remain committed to pursuing the important work to provide our customers with affordable, safe, and reliable service and secure a more resilient, sustainable energy future for the state of Maryland.
The move comes after state and local lawmakers pushed back on the project earlier this week, arguing it would disrupt historic communities and pass unnecessary costs to consumers.
Senate President Bill Ferguson, joined by Baltimore City Council President Zeke Cohen, announced legislation on Monday, which would require all transmission projects, underground or overhead, to go through the regulatory CPCN process with the Maryland Public Service Commission.
“BG&E must avoid tunneling through densely populated residential neighborhoods like this one here in Otterbein, unless absolutely necessary and it must evaluate all reasonable alternatives before moving forward,” Ferguson said. “BG&E must justify the need for this project and explain how a project that was proposed for $100 million has now jumped to nearly $500 million in just a few short years.”
“This legislation, like the Senate president said, will begin to rein in the utilities and make sure they cannot run roughshod over ratepayers,” Cohen said.
Ferguson voiced concern about the project potentially benefiting data centers.
“Additionally, we need know why BG&E is using the federal supplemental project process at the Federal Energy Regulatory Commission. This allows utilities to bypass important state and local review while earning higher returns on their investments,” Ferguson said.
However, officials with BGE argued the project is necessary and will improve reliability for existing customers throughout South Baltimore, as well as increasing capacity for future development. They also said aging infrastructure needs to be replaced regardless of development.
In response to the proposed legislation, BGE’s CEO Tamla Olivier, said “I think it’s great. I met with Senate President Ferguson last Thursday, and basically said, look, there are processes in place from a federal perspective, through FERC and PJM, as well as the state level, through the PSC the Maryland commission. What I’ve said to to the Senate President is I am happy to sit down. Let’s talk about what processes the state has in place today, because we follow the processes the rules that are put in place. If the state says you got to do X, Y and Z, we’re going to do X, Y and Z. So happy to partner about where you think there might be gaps, and let’s come up with what that looks like at a state level to change those processes.”
As for the cost of the project, officials with BGE said the cost has increased due to several factors, including an engineering redesign, increased cable lengths due to site uncertainty, and inflation of labor and material costs.
Now, the design and engineering work on the Baltimore Peninsula project is at a standstill.
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