State's E-ZPass transponder costs to drop
The multi state consortium that runs the E-ZPass toll collection system has agreed to a deal that would cut the cost of each transponder issued by its member toll authorities, including Maryland's, by more than half.
TollRoadsnews reported that the E-ZPass Inter-agency Group has chosen Kapsch TrafficCom IVHS Inc. as its supplier for the next generation of toll-collection devices. The Frederick-based trade publication calculated that Kapsch's bid would lower the per-unit cost of transponders from $20.95 to $8.90.
The deal would presumably give the Maryland Transportation Authority some room to offer its customers a better deal, though the savings are unlikely to have much impact on the record-high toll increases now pending. The total savings for the 10-year life of the contract would be $482 million split among the 24 toll agencies that make up the E-ZPass consortium.
The group includes toll agencies from as far west as Illinois, as far south as Virginia and as far north as the Canadian border.
The reduction presumably would allow member agencies to charge E-ZPass users less for the transponders they must install in their vehicle to participate in the electronic toll collection program. Maryland now charges $21 per transponder and is expecting a surge in demand because of the impending opening of the second phase of the Intercounty Connector and a pending proposal to offer a 10 percent discount to E-ZPass users at its other toll facilities.
Maryland now sells about 160,000 of the units each year.
Authority spokeswoman Kelly Melhem confirmed that the agency plans to share its savings with customers. Details of how those savings would be shared would be up to the authority's board.
The new contract could let the authority give a small break to holders of decals that let motorists use the Thomas J. Hatem Memorial Bridge over the Susquehanna River to use that facility at a sharp discount. The authority's toll plan would put an end to the decal system and require drivers who want the Hatem discounts to pay through the E-ZPass system -- a measure that brought loud protests at public hearings in Harford and Cecil counties. Under the proposal as stands, those customers would have to pay $21 for a new transponder.
Mehlem said she could not predict what the board would decide but indicated that members would be looking at the possibility of giving Hatem users a break on the transponder price.
"It is certainly going to be looked at based on the comments received in that part of the state," she said.
Kapsch prevailed in a competition in which four companies participated, although one was disqualified because its bid did not fit the contract criteria. The draft contract calls for Kapsch to supply and service equipment for 10 years, though member toll authorities will have an option to seek competitive bids after four.
TollRoadsnews reported that the authority expects to buy about 40 million transponders over the next 10 years.
According to the inter agency group, the new transponders will be smaller and "sexier" than thhe current model.
Delays in the procurement process have forced members to extend their current contracts with Kapsch into 2012. Maryland's Board of Public Works is scheduled to consider an extension of the current contract with Kapsch until next August, after which the new contract would likely take effect.
The Maryland authority said the procurement was especially complicated because it involved many members spread across 14 states.
Categories: Maryland toll facilities
Comments
EZ Pass usage has huge positive externalities; everyone who uses an EZ Pass reduces traffic congestion at toll booths and saves other drivers time, and saves the state money. The state should subsidize transponder usage (which they will start to do with the toll discounts) by either offering free transponders or eliminating the monthly maintenance fee.
COMMENT: Yes, E-ZPass has advantages in traffic flow, but in the case of infrequent users the impact is negligible. The monthly fee discourages the kind of customer who gets a free transponder then never uses it while the authority has to bear the carrying costs of keeping the account open. Who pays? The rest of us.
What would make sense is to apply the transponder savings to the transponders themselves. Another possibility would be to waive the monthly fee when a customer reaches a certain level of full-fare toll facility use. It's better to give a break to the best customers rather than the ones that generate little revenue. --MTD
Posted by: Mitch | July 22, 2011 12:26 PM
Mitch wrote:
"EZ Pass usage has huge positive externalities; everyone who uses an EZ Pass reduces traffic congestion at toll booths and saves other drivers time, and saves the state money. The state should subsidize transponder usage (which they will start to do with the toll discounts) by either offering free transponders or eliminating the monthly maintenance fee."
Mitch, this is absolutely correct.
My _only_ problem with E-ZPass discounts is that some states (especially N.J. and N.Y. - to a lesser extent Maryland) are only granting discounts to in-state transponder discounts, and charging everyone else the full price. That's immoral and wrong.
Posted by: C. P. Zilliacus | July 22, 2011 3:09 PM
Don't let them throw a few bucks to discount the EZPASS tag and make it seem like it's like the decal. The real trick is like the razor model- lower the initial cost, but make it back many times over in monthly fees. Once there's no decal, they can keep raising the monthly fee and keep on collecting month after month. Take a stand, Marylanders!
Posted by: James | July 25, 2011 2:48 AM
Sir/Madame:
It is my understanding that if you purchase your transponder from the State of New York, it is cheaper and THERE IS NO MONTHLY FEE! A subsequent story on this, if correct is certainly newsworthy for your readers.
Alan P Zukerberg
COMMENT: However, under the toll increase proposal now being considered, holders of out-of-state E-ZPass accounts would not be eligible for the 10 percent discount being offered to in-state E-ZPass users. So if you pay $15 in tolls a month, the current $1.50 fee would be canceled out by the discount.
Posted by: Alan Zukerberg | July 25, 2011 1:21 PM
I got my E-ZPass from Delaware. The DelDOT program does not have any monthly or annual account maintenance fees. Normally DelDOT charges $25.00 up front for each transponder, however right now through December 31 they are waiving the transponder fee. Even with the $25.00 fee up front, the Delaware program is still a better deal than Maryland. One thing to remember when opening an E-ZPass account with DelDOT, when you get to the page that asks you to "choose your state" always choose “Delaware” to avoid being redirected back to your home state’s agency. But don’t worry about having chosen Delaware, after getting around the redirect, you will get to real sign up page where you can enter your correct address and license plate information. This also holds true for avoiding the redirect on the websites of other E-ZPass agencies such as New York and Massachusetts.
Posted by: David B | November 20, 2011 12:59 PM