A Baltimore judge on Monday, June 22, 2026, sided with Baltimore Gas & Electric in a closely watched fight over the city’s underground conduit system, clearing the way for the utility to recover up to $120 million in upgrades through customer rates over time. The ruling keeps in place a state regulator’s earlier approval and deals a setback to the Maryland Office of People’s Counsel, which had challenged how the conduit spending was handled. At the center of the dispute was whether capital work on city-owned infrastructure can be folded into BGE’s rate base and earn the company a return.
The decision is a clear win for BGE and a loss for the state’s consumer advocate, cementing the Maryland Public Service Commission’s move to let the company recover conduit spending through its multi-year rate plan. As reported by The Baltimore Sun, the judge concluded that the commission did not overstep its legal authority when it signed off on the cost recovery approach.
How the conduit deal works
Under an amended 2023 lease, BGE agreed to invest up to $120 million in the city-owned conduit network through 2026 in exchange for reduced occupancy fees and a modest annual maintenance payment, according to local reporting. The structure of the arrangement, along with who ultimately comes out ahead, was laid out by Baltimore Brew and examined in more detail by Prism.
Why OPC sued
The state’s consumer advocate argued that the Public Service Commission treated BGE’s conduit upgrades as if they were improvements to company owned assets, which lets the utility earn profits on work performed on city property. “The Commission erred by treating improvements that BGE agreed to make to the conduit system like improvements to something BGE owns,” Maryland People’s Counsel David Lapp said in a release. The Maryland Office of People’s Counsel filed its appeal in Circuit Court in November 2025.
What it could mean for bills
The PSC approved the conduit spending as part of BGE’s second multi year rate plan but noted that the benefits to ratepayers were “unclear” and required a later benefit cost analysis. Regulators also warned that the costs could be spread over a long depreciation period. Reporting by WYPR highlighted concerns that customers could ultimately pay interest, taxes and a return on the conduit investments.
Political fallout
The conduit deal has stirred ongoing political blowback inside City Hall, and Mayor Brandon Scott’s administration later signaled it wanted to renegotiate portions of the agreement. The Banner detailed the backlash, while Hoodline has tracked related clashes over BGE’s infrastructure push in the city, including Judge Greenlights BGE Power Line.
What’s next
With the circuit court siding with the regulator, the immediate appeal brought by OPC is resolved in BGE’s favor, preserving a key plank of the utility’s rate plan. As WBFF reported, the decision leaves intact the pathway for BGE to recover the conduit spending through customer bills while work under the 2023 agreement continues.
Legal implications
The ruling narrows the short term legal options for ratepayer advocates but leaves open longer term questions about prudence reviews and whether other conduit tenants were effectively subsidized by BGE’s customers. Any future litigation would likely focus on those regulatory standards and on how BGE’s conduit spending is classified and audited, experts and advocates say. The Baltimore Sun offers additional detail on the court’s reasoning and what it could mean for similar infrastructure deals.
