Baltimore City officials begin negotiating new conduit system agreement

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After deciding not to renew the current conduit agreement, Baltimore City officials are negotiating a new agreement to ensure an increased investment in the conduit system.

“The City decided not to renew the agreement because our conduit system requires more investment in both capital improvements and maintenance than the current agreement would have provided for. We are currently seeking an agreement with BGE that recognizes the need for this increased investment so that we can ensure a safe and reliable conduit system for our residents. We will not speculate on the outcome of these negotiations, but we look forward to continuing to work to ensure a conduit system that works for all our residents,” a statement from the Mayor’s Office read.

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The conduit system is an underground network of about 700 miles of utility cables owned by the City of Baltimore. In 2023, Baltimore City entered into an agreement with Baltimore Gas and Electric, which was controversial at the time. As part of the agreement, BGE is required to make capital improvements to the conduit system. That agreement will come to an end at the end of the year.

While officials from the mayor’s office are currently discussing a new agreement, some city council members said they believe the city should manage the conduit system without BGE.

“I want our own contractors who we are working with, negotiating with, to make sure we are truly driving a public safety agenda, as opposed to Baltimore Gas and Electric’s profits agenda,” Baltimore City Council President Zeke Cohen said.

“I think we want to make sure at the end of the day that in this next agreement that it it makes sense that it’s done with the interests of the people in mind and that it’s not happening behind closed doors,” Councilmember Mark Conway said.

In a statement, a BGE spokesperson said, “We respect the City’s decision not to renew its conduit agreement with BGE under the current terms. We remain committed to working with the City in whatever capacity is deemed appropriate to ensure this critical infrastructure is strengthened, modernized, and managed in a way that delivers real, measurable benefits for our customers going forward, with a continued focus on affordability.”

“Any improvements to the City’s 100yearold conduit system immediately benefit Baltimore’s residents and businesses and help prevent much bigger problems down the road,” BGE continued to say. “We already know the risks, including underground fires. This is infrastructure the City owns, and BGE is partnering with the City to keep it functioning safely. Ignoring these needs simply isn’t an option.”

BGE spokesperson Nick Alexopulos also said while the agreement allows BGE to make the final decisions on capital improvement work performed by BGE, he said they share plans with the city in advance for feedback.

Additionally, he said the city still does capital improvement work as well, along with managing the conduit, tenants and maintenance. Alexopulos said no authority or control was handed to BGE as part of the 2023 agreement.