A power line upgrade project in Baltimore estimated to cost $105 million ballooned to over $407 million before being put on hold when its developer, Under Armour, backed out.
Now a consumer watchdog group, the Maryland Office of People’s Counsel, is calling out the failed project and arguing that regular utility customers are going to end up paying.
Here’s what to know
The OPC argues that local utility projects don’t have to go through competitive bidding or strict cost controls the way regional projects do, as The Baltimore Sun reported. It’s asking federal regulators to address and close this loophole.
But the utility company in charge, Baltimore Gas and Electric, is pushing back and arguing the cost increase was reasonable and caused by inflation, high labor costs, supply chain issues, and design changes made by the developer.
More background
At its core, this is a familiar challenge in utility regulation: upgrading the grid while keeping electricity affordable for the people who depend on it every day…