Baltimore City is proposing a new fee structure for companies that use its municipally owned underground conduit system, an effort aimed at providing
sustainable funding to maintain and modernize one of the city’s most important pieces of public infrastructure.
The proposal would establish a $4.05 per linear foot franchise fee for Baltimore Gas & Electric (BGE) and other conduit users beginning January 1, 2027. The rate would also be adjusted for inflation moving forward. Baltimore’s approximately 700-mile underground conduit system houses electric, telecommunications, and fiber-optic cables that serve much of the city. According to city officials, increasing maintenance costs, inflation, and the need for more proactive repairs have prompted the proposed fee adjustment following several underground fires in recent years.
“Our conduit system is one of the most important components of our City’s infrastructure, and it is imperative we continue prioritizing its maintenance and improvement,” said Mayor Brandon M. Scott. “The agreement we negotiated back in 2023 has allowed us to make significant progress in upgrading and modernizing the system through significant capital improvement. However, as the system faces higher construction costs and ever-changing needs, the City must constantly evolve our approach to keep pace with our needs in 2026 and in the years to come. This new proposal takes into account those needs, builds on the progress we’ve made since 2023, and outlines a path for cooperation between all of our partners who utilize the conduit system.”
Under the 2023 agreement, BGE committed to approximately $120 million in capital improvements to the conduit system in lieu of paying a traditional franchise fee. The city says those investments are on track to be completed by the end of 2026. The new proposal would return all conduit users to a standard franchise fee structure while providing additional revenue to support ongoing operations, maintenance, and system upgrades.
The Baltimore City Department of Transportation also plans to reestablish dedicated positions focused on conduit maintenance and support as part of the updated funding approach.
While Baltimore’s municipally owned conduit system is unique in Maryland, the proposal reflects a broader challenge facing local governments: identifying sustainable funding sources to maintain aging infrastructure while addressing rising construction, maintenance, and operational costs.
