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City Board votes for BGE conduit agreement despite absence of two members

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Posted at 10:36 AM, Feb 15, 2023
and last updated 2023-02-16 16:03:25-05

BALTIMORE — Two members of Baltimore's Board of Estimates no showed a Wednesday morning vote in hopes of preventing an agreement that would give BGE more control of the City's underground conduit system.

Council President Nick Mosby and City Comptroller Bill Henry each skipped the vote, requesting that it be deferred until March 15.

"The proposed underground conduit system agreement with BGE, which we believe allows BGE to reduce its fee structure and receive complete control of capital improvements, warrants time for public discussion and a thorough explanation as to the full impact this will have on the people of Baltimore now and in the future," Mosby and Henry said in a joint statement.

The delay tactics failed, as the remaining three members of the board approved the deal without them in absentia.

"We are committed to moving forward with our city business despite the absence the City Council President and the Comptroller," said Acting City Solicitor Ebony Thompson. "Neither the City Charter provisions nor the rules of the BOE allow that detrimental result."

According to committee rules, a Board of Estimates meeting cannot be cancelled by a member's failure to attend. Instead all five members must first vote to cancel such a meeting, which in this case didn't happen.

As currently written the rule states any member who abstains instead of recuses will count toward the quorum, which can be obtained by the attendance of three sitting members equaling a majority.

In question is a 2016 agreement with BGE that was amended February 7, allowing the company to utilize the 700-mile electrical system which powers a majority of the city.

RELATED: Baltimore City, BGE amend conduit use agreement amid fears of selling

Under the updated agreement BGE would pay the City an annual $1.5 million fee through at least December 31, 2026.

With that BGE would be responsible for up to $120 million in Capital Improvement projects throughout the length of the agreement.

BGE would then have blanket authorization to conduct any needed work on the Conduit System, while being prioritized in the event additional permits are needed.

Although each fiscal year the City can recommend Capital Improvement Projects, it's BGE who would have final say.

Still the City would be left with full ownership of the conduit system and responsible for its daily operation and maintenance.

There was previous concern that the City would sell the conduit.

Last October the Board of Estimates reviewed a $50,000 contract with a consulting firm that some, including former Mayor Jack Young, felt would incentivize a sale.

MORE: Former Mayor Jack Young concerned Baltimore City may sell underground conduit

Residents ultimately voted against the idea in the November General Election.

Meanwhile Mosby and Henry fear that BGE now holds all the power.

"The public and users of our conduit system should be afforded the opportunity to ask and have their questions answered," the two board members said in their statement. "We do not believe a decision of this magnitude should be driven by a single user – or even the largest user – and filing deadlines. And we continue to question not only the terms proposed but the non-inclusive, liability-only approach to reach those terms."

Some of those concerns are addressed in the agreement with subsection 12 reading, "BGE shall not enter or otherwise access any duct within the the conduit system that is used by others without prior written consent from the City."

The agreement also addresses potential conflicts of interest.

"No member, official, representative, or employee of the City shall have any personal interest, direct or indirect, in this Amendment, nor shall any member, official, representative, or employee participate in any decision relating to this Amendment that affects such person’s personal interest or the interests of any corporation, partnership, or association in which such person is, directly or indirectly, interested."

Following the vote BGE issued their own statement.

"Under the terms of this amended agreement which dictates the terms of BGE’s responsibilities regarding the conduit, Baltimore City retains ownership and control of the conduit system. Baltimore City, contractors, and the other users of the system are still able to perform additional work on the system if necessary. As we have done in the past, we will continue to meet monthly to partner with the City to prioritize projects."

The company claims the amended agreement will lessen costs passed onto consumers.

"Previously costs were a maintenance fee, which by regulation were required to be directly passed onto our customers. Under this new approved agreement, BGE will recover the capital contributions in our rates over time which reduces customer bill impact as opposed to the previous fee model which would have had a significant impact on customer rates."