Baltimore Gas and Electric’s (BGE) approval of a $17.5 million contract for a specially outfitted utility truck has reignited public scrutiny over rising utility rates and the oversight of infrastructure spending in Maryland.
The expense, authorized by the Maryland Public Service Commission (PSC), will be distributed across BGE’s 1.3 million customer accounts. BGE has hiked rates by around 7% for electric bills and 9% for residential gas since January 1.
Exelon, the parent company of BGE, has a market cap of $44 billion.
A recent poll by the University of Maryland, Baltimore County, found that Baltimore-area residents now rank utility bills among their top concerns about the cost of living.
The truck, used for detecting hazardous contact voltage — stray electrical currents that can cause electrocution-is part of an annual safety mandate.
BGE contracts the service to Osmose Utilities Services, a Georgia-based company it claims is the only approved vendor capable of performing the work across its 1,700-mile territory.
The vehicle and its team of surveyors comb Baltimore and surrounding areas for voltage faults, using proprietary equipment to detect electric fields from up to 30 feet away, even at speeds of 25 miles per hour.
The utility says the detection program is vital. In 2006, 14-year-old Deanna Camille Green was fatally electrocuted by a charged fence in Baltimore’s Druid Hill Park, prompting regulatory reforms.
Maryland is now one of a few states requiring regular contact voltage reviews.
Although BGE argued that the contract covers not only the vehicle but also staffing and technology upgrades over eight years, consumer advocates and state regulators raised concerns. Initial filings estimated the vehicle’s cost at roughly $100,000.
The ultimate contract figure — 175 times that estimate — left critics asking whether the company had sufficiently explored alternatives.
David Lapp, Maryland’s People’s Counsel and chief ratepayer advocate, called the process opaque. He stated that the commission lacked the necessary data to evaluate whether BGE had pursued lower-cost solutions.
Despite these concerns, the PSC approved the contract as an operational expense rather than a capital investment, which would have included additional financing costs for customers.
The commission allowed BGE to finance only $5 million of the total.
BGE defended the sole-source contract, citing Osmose’s proprietary technology and the statewide requirement for thorough annual testing.
Executives acknowledged the disadvantages of sole-sourcing but argued that no viable alternative exists. The company has previously contracted with Osmose and its predecessor, Power Survey, for similar services at slightly lower cost.
The latest contract, BGE says, reflects upgraded technology and anticipated efficiency gains, though the utility was unable to quantify the projected savings.
Public frustration has grown in recent months over escalating energy costs.
Rate increases tied to supply and infrastructure spending — including the contact voltage program and larger capital projects — have compounded financial pressure on households already strained by inflation.
Critics argue that these cost increases stem not only from infrastructure needs but also from BGE’s financial obligations to its parent company, Exelon, which sets aggressive return-on-investment targets.
The pressure to meet those goals, watchdogs argue, incentivizes large-scale spending that can ultimately be passed on to customers.
While BGE maintains that contact voltage detection is a life-saving service, opponents argue that the company’s inability to explain or verify the cost justifies more stringent oversight.
The PSC’s decision to approve the contract despite gaps in documentation underscores the broader tension between regulatory compliance, public accountability, and the economics of utility service.
As BGE’s multiyear rate plan — which sets customer charges through 2026 — moves forward, the truck contract is likely to remain a flashpoint in the debate over how utilities manage safety and spending in a high-cost environment.
