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April 9, 2009

The Great E-ZPass Fee Exodus

Remember the big hullabaloo about the $1.50 fee on E-ZPass accounts the Maryland Transportation Authority adopted in January? All those folks threatening to close their accounts and bring the system to its knees? Preliminary figures are in, and the rate of defection appears to bear out the authority's calculation that most E-ZPass users aren't going to flock to the slow lanes to save $18 a year.

According to the authority, account closures in the six months before the fee proposal averaged 642. In January, there were 796 account closures, 178 of them explicity in response to the new policy. In February, after the authority formally acted, there were 843 closures -- 195 because of the fee. In March the number of account closures rose to 996 but only 122 closures account-holders blamed the fees for their decision.

 According to the authority, there were 542,000 active E-ZPass accounts in Maryland as of February. So if you go by the number of customers who actually attributed theiir defection to the fee, you get an attrition rate of about 0.1 percent. If you go by the difference from the average rate of account closings, the number soars to about 0.15 percent. The authority doesn't jknow whether those who canceled were frequent or sporadic users, but common sense suggests that the fee refugees are skewed in the direction of light users. Those are precisely the folks that the system has been losing money on by subsidizing their participation. Of course, there are still three months to go before the fees take effect in July.

 

Posted by Michael Dresser at 5:00 AM | | Comments (17)
Categories: Maryland toll facilities
        

Comments

I am most definitely still cancelling my E-Z Pass. Only reason I haven't done it is there is still a few months before the outrageous fee goes into effect. I suspect there are more than a few people like me that are simply just waiting until it gets closer to July before they cancel and get their E-Z Pass elsewhere.

I'm planning on getting rid of mine before July.

I closed my EZPass because of the fee, but didn't bother giving an excuse. I just sent it in and requested it be closed. I waited until I was near my replenish threshold and sent it off. What was the number of closures prior to the fee announcement? That should give you a good indication of the number closings due to the fee.

I too will be canceling before July. Do you know the exact date that I must cancel by to avoid the fee?

REPLY: The last day to cancel and avoid the fee is June 30. If you use toll facilities only a few times a year, it probably makes sense to do so. (Michael Dresser)

I am surprised that many people have canceled their E-Z Pass' already. I will be joining the crusade in turning in my E-ZPass in June.

If you think regular EZ-Pass users subsidize light users of EZ-Pass, well, I have got some swamp land to sell you. Those who think so don't really have a grasp of the basic concept of incremental costs.

Adding a monthly fee to E-ZPass is a blatant attempt by the state to raise revenue with a classic bait and switch game. Get account holders to sign up initially for free, then just tack on a monthly fee after the system has been around for several years.

It is a shame that any E-ZPass holders are returning their passes. It would take the state of Maryland to come up with a plan to discourage a more inexpensive and more efficient way to collect tolls.

I got my EZPass in Virginia when I was working down there a lot. I don't think there is a fee as long as you signed up with a credit card.

We're planning to use ours for a trip north in May, so we're hanging on to it. And we're planning to send back the one for my car and for my husband's car. Not worth hanging on to.

REPLY: The fee applies to each account, not each transponder, so if you have multiple transponders, it makes sense to consolidate them on one account. Just close the account with the older transponder(s) before July 1. Your new transponder will be free up to that date, but will cost $21 afterward. (Michael Dresser)

I heard about this a couple of months ago, but it dropped off my radar.

I have two transponder units, one for each car. I'd still be charged $1.50 per month _for the account_, and _not_ $3.00 per month (because I have two units), correct?

REPLY: As long as you have both transponders on one account, the fee is $1.50 a month. (Michael Dresser)


Add me to the list that will get rid of mine before June 30th. I have a few more times to enjoy it between now and then.

I TO WILL BE CANCELING MINE BECAUSE I THINK IT IS STUPID TO CHARGE THE EASY PASS CUSTOMERS THE FEE . I THINK THE FEE SHOULD GO TO THE PEOPLE NOT USING THEM TO FREE UP THE LONG LINES SOME TIMES ONCE AGAIN MARYLAND IS BLOODSUCKERS

Like others have already offered, I am a sporadic EZ-Pass user who has been waiting until closer to the deadline before turning in my transponder.

Declaring the Maryland Transportation Authority correct in their assumption that there wouldn't be many defections based on your statistical analysis at this point is as accurate as me declaring we won't be having any temperatures above 80 this year since "preliminary figures are in" and we haven't yet had a day over 75 in 2009. Mission Accomplished!

EZPass call it a fee it's still a TAX. You always hear if you can dream it Maryland will tax it.

It's difficult to undertand why my Maryland would tax the very people who assist the state in reducing long traffic backups. Rather, why not raise the toll for all by a smaller amount than the $1.50 monthly charge that we EZPass folks must pay.Governor O'Malley, Where are you???

I canceled as well, not giving a specific reason.

Joseph brought up a good point about getting his EZ Pass in Virginia. I think everyone should do the same in protest of the new fees. Delaware also has a one time $25 charge with no monthly fees.

Despite not having as many cancellations as I expected, the time it has taken me to receive a refund seems to indicate otherwise. I sent in my pass in mid-February and have yet to see a credit to my card.

Help! How to cancel? I see many say they have canceled. I tried twice on the website, getting reply they would get back in 5 days. Still no word after 3 weeks. Tried to call toll free, busy for 3 days. Went to "ezpass" MVA location: they only sell, don't even know how to cancel--"have to use website". Help?

Have to go to website!!

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About Michael Dresser
Michael Dresser has been an editor, reporter and columnist with The Sun longer than Baltimore's had a subway. He's covered retailing, telecommunications, state politics and wine. Since 2004, he's been The Sun's transportation writer. He lives in Ellicott City with his wife and travel companion, Cindy.

His Getting There column appears on Mondays. Mike's blog will be a forum for all who are interested in highways, transit and other transportation issues affecting Baltimore, Maryland and the region.
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