Judge upholds Baltimore’s controversial conduit deal with BGE

A circuit court judge in Baltimore has ruled against Maryland’s ratepayer advocate, preserving a controversial agreement over the city’s conduit system.

Baltimore Gas and Electric struck a deal with the city in 2023 that allowed the utility company to make major improvements to the city-owned system of underground tubes. In return, BGE would pay a far lower rental fee to the city and pass those savings on to customers over the short term.

Mayor Brandon Scott pushed the change forward in February 2023 despite objections and questions from fellow politicians. Months later, the Maryland Office of People’s Counsel reviewed the deal and concluded that it would lead to increased rates for BGE customers in the long term.

By that point, state regulators had already approved BGE’s spending plan. In June 2025, the Office of People’s Counsel filed a lawsuit in Baltimore City Circuit Court challenging several aspects of the deal.

This week, a judge ruled against the ratepayer advocate. Circuit Judge Catherine Chen’s opinion affirmed a crucial part of the deal — that capital improvements made by BGE to the city-owned conduit can be treated similarly to infrastructure that BGE owns outright.

“BGE remains committed to making smart, responsible investments that deliver safe, reliable, and resilient energy service to our customers, while supporting the continued growth and vitality of Baltimore City,” BGE spokesperson Jane Ballentine said in an email.

Earlier this month, the city sent BGE a letter saying that it intends to renegotiate the conduit deal. Absent that notification, the existing three-year deal would have been automatically renewed for another three years.

David Lapp, who leads the Office of People’s Counsel, said his office plans to appeal the judgment.