BALTIMORE — Baltimore City and BGE have amended a 2016 agreement for the use of its underground conduit system.
Part of the revised agreement requires BGE to pay the City an annual $1.5 million maintenance fee through at least December 31, 2026.
BGE will also be responsible for up to $120 million in Capital Improvement projects throughout the length of the agreement.
Under the agreement, the City maintains full ownership of the 700-mile conduit system which contains critical electric and fiber-optic cables that powers a majority of the city.
BGE also takes on liability for any system failures during their work on the conduit.
The City's Board of Estimates still has to approve the agreement, which they will review on February 15.
“The proposed agreement with BGE allows for a shared responsibility in increased improvement efforts to the 700-mile capital structure, ultimately reducing the amount of money that the City pays year after year for conduit maintenance,” said Mayor Brandon M. Scott. “This is a sensible agreement that gives the City an opportunity to demonstrate good stewardship over this valued and vital asset.”
There had been some fear that the City would sell the conduit, despite residents voting against that possibility in last November's General Election.
MORE: Former Mayor Jack Young concerned Baltimore City may sell underground conduit
City Council President Nick Mosby recently called on the Scott Administration to provide analysis on their future plans for the conduit system at a February 9 legislative oversight hearing.
"[Scott] and other members of his administration have confirmed that they have been working on an agreement to give near full control over our conduit system to BGE," said Mosby in a recent letter to his constituents. "While BGE is a great partner to have, we cannot allow a for-profit company to make unilateral decisions on our public infrastructure. His administration has even retained a consultant to help make the best decision possible but the consultant has not even had a chance to complete their work and make recommendations."
Read the entire agreement with BGE here.
