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Indiana concedes Illinois case - agrees to give transponder discounts to all
Posted on Fri, 2007-06-15 10:15
Indiana Governor Mitch Daniels this week stepped in to end the interstate tiff over transponder discounts. Acknowledging the Illinois Tollway was right he wrote to the Indiana Toll Road Oversight Board which supervises the concessionaire company and requested they extend the same treatment to Illinois I-PASS and apparently all E-ZPass group transponder users identically with the 40% discount proposed for local I-Zoom account holders. Indiana's electronic toll system will be fired up before the end of the month on the western end barrier system.
The Indiana Toll Road Oversight Board decided Thursday (Jun 14) that Illinois I-PASS transponder users and other foreign transponders of the E-ZPass group would be treated identically with new Indiana I-Zoom account holders. (see resolution nearby)
The oversight board's resolution follows a letter from Indiana Governor Mitch Daniels asking them to extend electronic toll discounts to I-PASS (Illinois brand) transponders.
"Thousands of northwest Indiana residents benefit from the toll discounts currently offered by Illinois on its tollroads... So it is right and fair that we reciprocate with a gesture of friendship and good neighborliness."
Daniels letter said there would be a safety issue if motorists were tempted to enroll in I-Zoom as well as I-PASS and attempted to swap transponders en route to get two different sets of discounts. Offering discounts for use of transponders, he said, was sound public policy in that it encouraged adoption of a technology which would ease congestion and increase operating efficiency.
The governor said the funds set aside in the Major Moves transaction - a term he uses for the concession funded program - provides enough money to fund the extension of the transponder discount to Illinois users. (see letter nearby)
Fight arose over interpretation of legislative intent
The fight was a result of the Indiana Toll Road Concession Company's (ITRCC) interpretation of legislative intent, initially supported by the state, that the transponder discount fund was intended to be used only for the benefit of Indiana residents. However there was nothing in the wording of the law saying this.
Under the terms of an amendment to the ITRCC concession the concessionaire retained $40m of the $3.8b upfront concession fee and placed it in an ITRCC controlled bank account set aside for the toll freeze discounts. They were offered at the last minute to gain the support of northwest Indiana legislators for enabling legislation for the concession.
When the $40m fund is close to being exhausted by drawings, the ITRCC applies to the Indiana Finance Authority, owner of the state toll road, for new funds to continue the discount on cash toll rates.
Gov Daniels says $250m is available for supporting the discount and toll rate freeze.
Following receipt of the governor's letter the ITR Oversight Board, which is appointed by the state, approved a resolution Thursday saying that the state through its partner (Cintra/Macquarie) "will offer the same toll discount provided users of Indiana based transponders to all transponder users that drive on the Indiana Toll Road irrespective of citizenship or brand of transponder."
McPartlin said in a statement yesterday: "Over the past few months we have stood by our belief that it makes no sense to force stateline drivers to purchase two different transponders in order to benefit from the convenience of electronic toll collection
and a discounted toll rate for interstate travel. We are pleased Indiana has reconsidered their position and decided to offer our I-PASS users the same level of customer service with no strings attached."
The Daniels move to concede and settle the dispute was also welcomed by the E-ZPass Inter Agency Group (IAG). James Mwape, business manager at the IAG told us in an email: "We are glad that this problem has come to successful conclusion."
COMMENT: This is a clear victory for the Illinois Tollway's executive director Brian McPartlin and the Illinois Tollway board, and a prudent backdown by Indiana.
TOLLROADSnews 2007-06-15
The Indiana Toll Road Oversight Board decided Thursday (Jun 14) that Illinois I-PASS transponder users and other foreign transponders of the E-ZPass group would be treated identically with new Indiana I-Zoom account holders. (see resolution nearby)
The oversight board's resolution follows a letter from Indiana Governor Mitch Daniels asking them to extend electronic toll discounts to I-PASS (Illinois brand) transponders.
"Thousands of northwest Indiana residents benefit from the toll discounts currently offered by Illinois on its tollroads... So it is right and fair that we reciprocate with a gesture of friendship and good neighborliness."
Daniels letter said there would be a safety issue if motorists were tempted to enroll in I-Zoom as well as I-PASS and attempted to swap transponders en route to get two different sets of discounts. Offering discounts for use of transponders, he said, was sound public policy in that it encouraged adoption of a technology which would ease congestion and increase operating efficiency.
The governor said the funds set aside in the Major Moves transaction - a term he uses for the concession funded program - provides enough money to fund the extension of the transponder discount to Illinois users. (see letter nearby)
Fight arose over interpretation of legislative intent
The fight was a result of the Indiana Toll Road Concession Company's (ITRCC) interpretation of legislative intent, initially supported by the state, that the transponder discount fund was intended to be used only for the benefit of Indiana residents. However there was nothing in the wording of the law saying this.
Under the terms of an amendment to the ITRCC concession the concessionaire retained $40m of the $3.8b upfront concession fee and placed it in an ITRCC controlled bank account set aside for the toll freeze discounts. They were offered at the last minute to gain the support of northwest Indiana legislators for enabling legislation for the concession.
When the $40m fund is close to being exhausted by drawings, the ITRCC applies to the Indiana Finance Authority, owner of the state toll road, for new funds to continue the discount on cash toll rates.Gov Daniels says $250m is available for supporting the discount and toll rate freeze.
Following receipt of the governor's letter the ITR Oversight Board, which is appointed by the state, approved a resolution Thursday saying that the state through its partner (Cintra/Macquarie) "will offer the same toll discount provided users of Indiana based transponders to all transponder users that drive on the Indiana Toll Road irrespective of citizenship or brand of transponder."
McPartlin said in a statement yesterday: "Over the past few months we have stood by our belief that it makes no sense to force stateline drivers to purchase two different transponders in order to benefit from the convenience of electronic toll collection
and a discounted toll rate for interstate travel. We are pleased Indiana has reconsidered their position and decided to offer our I-PASS users the same level of customer service with no strings attached."
The Daniels move to concede and settle the dispute was also welcomed by the E-ZPass Inter Agency Group (IAG). James Mwape, business manager at the IAG told us in an email: "We are glad that this problem has come to successful conclusion."
COMMENT: This is a clear victory for the Illinois Tollway's executive director Brian McPartlin and the Illinois Tollway board, and a prudent backdown by Indiana.
TOLLROADSnews 2007-06-15
