Mark Compton: Turnpike users must pay fair share

Our goal at the Pennsylvania Turnpike Commission is to collect all revenue that we generate. While leakage is an established part of the tolling business, as it is in any retail business model, it is something we take seriously. It has always been a part of tolling, even in a cash system, and we do everything we can to minimize it.

These measures include use of collection agencies, suspension of vehicle registrations, lawsuits, and even felony charges against those who refuse to pay. These measures take time, but they must be included in the discussion to understand the complete revenue capture.

Most importantly, it’s critical for customers to understand that — when you consider the E-ZPass and Toll By Plate options together, the Pennsylvania Turnpike collects 93% of revenues. In fact, collections at the turnpike’s cashless tolling locations meet or exceed tolling industry collection standards.

For us, it’s a matter of equity. Most customers do the right thing and pay what’s due. We owe it to these honest citizens to do all we can to collect from everyone. In January 2021, the Turnpike Commission implemented a 45% additional charge on Toll By Plate transactions to offset the higher cost to collect using this invoicing method. That charge includes offsetting the amount of unpaid toll revenue. As a result, AET revenues are effectively revenue neutral. That is to say, the 45% Toll By Plate charge offsets uncollectable Toll By Plate revenues.

As current president of the International Association of Bridge, Tunnel and Turnpike Association (IBTTA), our industry group, I began a task force to look at how we can better tackle the issue of loss in our industry. The task force is a first-of-its kind forum to bring in best practices from a national and global perspective. It’s worth mentioning here that, as we have these dialogues among agency leaders, the Pennsylvania Turnpike is regarded as best-in-class among our peers when it comes to the variety of measures we’ve implemented to collect what’s owed.

There’s no question our industry is changing. Agencies are focused on doing all we can to avoid mailing invoices to customers. We’re making it easier for drivers to pay up front. At the Pennsylvania Turnpike, our Toll By Plate customers also have the option to sign up for E-ZPass and pay the lower rate when the receive an invoice. Toll By Plate users can now opt to set up a prepaid account on our PA Toll Pay smartphone app and receive a 15% discount.

A recent report about leakage in the Pennsylvania Turnpike Commission’s Toll By Plate program didn’t tell the entire story. Our 93% overall collection rate is achieved, in large part, because 86% of Pennsylvania Turnpike customers use E-ZPass today — where tolls are electronically debited from prepaid accounts. The remaining 14% are Toll By Plate customers, and leakage was anticipated from the beginning — and has been a fact of life for the turnpike and toll agencies worldwide well before the introduction of All-Electronic Tolling or AET.

The decision to convert to All-Electronic Tolling was a measured one that began 10 years ago. We studied the impact on our operations and organization, then unveiled a series of AET pilots across the state beginning in 2016 to get real world data about the impacts. And finally in 2020, this preparation enabled us to convert ahead of schedule to safeguard our operations and ensure customer and employee safety during covid. The system and our collections rates have performed within expectations we established during a decade of research and what we know to be standard across peer agencies.

We believe all customers who utilize the Pennsylvania Turnpike should pay their fair share and so we will continue to do everything within our power to maximize collections and minimize loss, including exploring new ideas and opportunities with our partners, our industry, and our stakeholders.

Mark Compton is the CEO of the Pennsylvania Turnpike Commission.