Facing default on debt, no money for upkeep West Virginia moving to hike tolls 30%

With a July 1 deadline for due bond payment of $11m looming, and insufficient cash to pay it the West Virginia state toll authority is finally moving to raise toll rates to avert a default. A 60% increase in cash toll rates is being proposed, mitigated by a 25% discount for West Virginia E-ZPass transponder customers. For WV E-ZPass users the increases will be 20% after the new 25% discount.

It will be the first toll rate increase since 1981, during which time the purchasing power of the dollar has halved.

The transponder discount on the new toll rates will apply to all classes of vehicles and will apply regardless of residence but will require customers to make the West Virginia E-ZPass their basic E-ZPass account. The toll authority will continue the existing commuter discount program available to passenger automobiles, also available regardless of state of residence.

At the three mainline or barrier plazas the basic toll for passenger cars will rise from $1.25 to:

- $2.00 cash and non-WV E-ZPass

- $1.50 for WV E-ZPass

Five axle vehicles such as the typical tractor trailer will see the base toll at mainline toll plazas rise from the present $4.25 to:

- $6.75 for cash and non-WV E-ZPass

- $5.06 for WV E-ZPass

The commuter rate allows unlimited travel through a mainline plaza for enrolled car owners for $25/quarter or 27.4c/day, or $95/year which is 26c/day. The commuter program requires a WV E-Zpass transponder account.

North Beckley tolls rise from 25c basic toll rate to 40c cash and non WV E-ZPass, and 30c WV E-ZPass. They have a $5/quarter commuter rate for unlimited travel in cars.

WSA forecasts adequate through 2019

Wilbur Smith Associates traffic and revenue study for the toll increases says that the new tolls should be adequate for the Turnpike's capital and deferred maintenance needs in addition to normal operating costs and debt service through 2019.

Toll revenue is projected to rise from $53m now 38% to $73m next year to $91m in 2019.

WSA projections assume an 8.5% point shift from cash and non-WV E-ZPass to WV E-ZPass.

NAMING: The West Virginia toll authority is named in the make-believe language of politicians: West Virginia Parkways Economic Development and Tourism Authority, although it has no parkway and has never had one, it does no economic development, and it is withdrawing from a small tourism venture.

BACKGROUND:  The West Virginia Turnpike has the record among state toll authorities in the US for the length of time its toll rates have been frozen - 28 years. Since 1981 the prices of goods and services as measured by the consumer price index have more than doubled. There was an abortive attempt to increase tolls on Jan 1 2006, rolled back Feb 13 when a judge ruled the toll authority had not given sufficient public notice of the proposed hikes.

Toll revenue in FY2008 on 94k toll transactions daily at four toll plazas was $56.6m. But the 142km (88 mile) expressway through the Appalachian mountains costs costs about $30m a year to operate, police and maintain.  WV Turnpike leaks revenue like a proverbial sieve. It has only three mainline toll plazas and one ramp plaza, although it has 18 interchanges.

Going from south to north there are:

- five untolled interchanges

- Mainline toll plaza A

- six more interchanges only one of which (Beckley) has a toll on the ramp

- Mainline toll plaza B

- four more interchanges without ramp tolls

- Mainline toll plaza C

- 4 more untolled interchanges

Three quarters of tolls are paid by out-of-state drivers and over a half are paid by trucks.

http://www.wvturnpike.com/studies/Traffic_and_Toll_Revenue_Study.pdf

TOLLROADSnews 2009-04-29