Households in Baltimore could face an additional charge on their utility bills under a proposal that has triggered opposition from local officials and the city’s main energy provider. The proposed fee still needs regulatory approval before it can take effect.
BGE Proposes A $9 Monthly Surcharge
Baltimore Gas and Electric has proposed passing a new cost on to customers through a $9 monthly surcharge. If approved, the charge would add up to $108 a year for a household.
The fee is linked to Baltimore’s conduit franchise arrangement, which covers the use of the city’s underground conduit system by the utility company.
City Raises Conduit Charges By 84%
Baltimore is increasing the amount charged to BGE for use of its underground conduit network. According to BGE, the increase would amount to around $50 million, representing an 84% rise in the charge.
BGE says it does not intend to absorb the additional cost and is instead seeking to recover it from customers.
BGE Calls The Proposal A Money Grab
BGE executives have criticised the city’s decision. Tamla Olivier, president and chief executive of BGE, described the proposed surcharge as a “money grab” and questioned how the additional revenue would be used.
John Frain, BGE’s vice president of regulatory policy and strategy, also called for greater transparency over the city’s plans. The company argues that customers should know where the additional money will go.
Baltimore Officials Reject BGE’s Position
Mayor Brandon Scott and other city officials have criticised BGE’s decision to pass the charge on to residents.
Scott, Council President Zeke Cohen and Comptroller Bill Henry described the proposed surcharge as an “unprecedented” charge that would apply specifically to Baltimore City customers.
The mayor also accused BGE of focusing on its profit margins rather than absorbing the additional cost. BGE has rejected that argument, saying the city treats the utility company as a source of additional revenue.
The Fee Has Not Been Approved
The proposed $9 monthly charge is not yet in effect. It must first be reviewed and approved by the Maryland Public Service Commission. Until the commission reaches a decision, Baltimore residents will not have to pay the proposed surcharge.
The dispute therefore remains unresolved, with the city and BGE offering sharply different views over who should bear the higher cost of maintaining the underground conduit system.
