The Financial Implications of Going to All-Electronic Tolling
The Financial Implications of Going to All-Electronic Tolling
The Financial Implications of Going to All-Electronic Tolling
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Bill Nelsen, CPA<br />
Vice President
Transponders<br />
Issued <strong>to</strong> Date<br />
Current<br />
ETC Participation<br />
67%
Current<br />
ETC Participation<br />
67%<br />
Differentiated<br />
Toll Rate<br />
Cash<br />
Cash<br />
60¢ 6.0¢<br />
2004<br />
7.5¢<br />
6.0¢
Current<br />
ETC Participation<br />
67%<br />
• Distribution<br />
ib ti<br />
& Marketing<br />
• Other Markets
mini<br />
December 2008<br />
Goal<br />
As <strong>of</strong> July 1, 2008<br />
75%
Items <strong>to</strong> Consider<br />
<strong>Financial</strong><br />
Political<br />
Local Support<br />
Legal<br />
Environmental<br />
Technical<br />
Interagency Coordination<br />
Economic<br />
Staff Reassignment<br />
Media
Items <strong>to</strong> Consider<br />
se ness Cas<br />
Busin<br />
Today 2020 2030<br />
Time
Decision Point Prerequisite<br />
1. ETC participation > 75%<br />
Busin ness Cas se<br />
2. ETC available <strong>to</strong> everyone<br />
3. Video product available<br />
4. Urban areas first (physical constraints)<br />
5. Pro<strong>of</strong> <strong>of</strong> concept (SunPass only ramps, video billing)<br />
6. Cost <strong>of</strong> manual <strong>to</strong>ll collection<br />
Today 2020 2030<br />
Time
Decision Point Prerequisite<br />
Cost <strong>of</strong> manual <strong>to</strong>ll collection<br />
Increasing<br />
ratio<br />
Cash transactions<br />
Approaching<br />
cash <strong>to</strong>ll rate
<strong>Financial</strong> Impacts: Revenue<br />
Today Cashless (2015)<br />
ETC<br />
67%<br />
ETC<br />
85%<br />
Cash<br />
33%<br />
Video<br />
15%<br />
10%<br />
Pre-payment<br />
(e.g. credit card)<br />
5%<br />
Post-payment<br />
(possible viola<strong>to</strong>rs)
5%<br />
4%<br />
Violatio<br />
ons %<br />
3%<br />
2%<br />
400<br />
300<br />
ETC-Only Lanes<br />
1%<br />
200<br />
100<br />
0<br />
0%<br />
FY 2000<br />
FY 2001<br />
FY 2002<br />
FY 2003 FY 2004 FY 2005 FY 2006 FY 2007<br />
Number <strong>of</strong> Su<br />
unPass Lane<br />
es
ETC-Only Lanes<br />
400<br />
5%<br />
300<br />
4%<br />
es<br />
unPass Lane<br />
Number <strong>of</strong> Su<br />
200<br />
2007 Legislation:<br />
NLicense<br />
100<br />
plate placement<br />
Unpaid <strong>to</strong>ll notice<br />
Suspend driver’s license<br />
Proposed Legislation:<br />
Video billing option<br />
Processing fees<br />
3%<br />
2%<br />
1%<br />
Violatio<br />
ons %<br />
0<br />
FY 2000<br />
FY 2001<br />
FY 2002<br />
FY 2003 FY 2004 FY 2005 FY 2006 FY 2007<br />
0%
Will It Cost More / Less?<br />
Straddling<br />
ETC<br />
two systems<br />
Cash
Capital Expenditures<br />
(present-day cost)<br />
ORT<br />
Lite<br />
Typical<br />
Mainline Plaza<br />
Today<br />
<strong>All</strong>-<strong>Electronic</strong><br />
(Cashless)<br />
ORT
Bot<strong>to</strong>m Line<br />
Revenue<br />
• Technology<br />
• Legislation<br />
• Enforcement<br />
Integrated approach <strong>to</strong><br />
mitigating <strong>to</strong>ll violations<br />
Operating<br />
Cost<br />
Savings likely<br />
• Extent <strong>of</strong> existing backroom<br />
processes<br />
• Ability <strong>to</strong> pass on video costs<br />
Capital<br />
Cost<br />
Significant upfront<br />
investment<br />
• Long-term savings<br />
• Future cus<strong>to</strong>mer expectations
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