Greenway new toll rate - July 2010

True, true, Mr. Linux.

I read Wolf's letters to the Greenway owners on his site and I can kinda see why nothing's been done. They're more of "My constituents are angry, you must do something!" instead of "My constituents are angry and if you don't do something, these are the consequences."

Right now I'm guessing Macquarie Atlas Roads doesn't really care what Wolf or anyone else says as long as people are taking the road and paying the tolls.

 

You also can't ignore that if they were to convert to a distance sensitive scheme, they would need to add several toll booths including a massive terminal booth on the Leesburg end plus ongoing costs of whatever jobs these added booths may create. I can't imagine the added infrastructure would be cheap and that clearly would be a justification for increased rates.

 

This truly is something that cannot be addressed and will not be resolved in the users of the Greenway's favor...ever......never......

Why? If higher ups (Congressmen, etc.) say this is bad, how can construction of hot lanes on 495 continue? The hot lanes have a payment scale that rises with usage, where they could argue that the Greenway's is consistant and fair (fair being all pay the same price). If Wolf states the Greenway is unfair and is a burden, then we should see his calling for an evaluation of the hot lanes........

Once everything is done, the Greenway will be found to be operating in a free market economy where their price point is what the market can support. If enough people stop driving on it the rate will drop. If people keep driving on it then obviously the price point is sufficient since demand remains constant.

 

But that is exactly what a free market is. The toll owners can set the price to whatever they want and customers can either use or not use their product! My price point to not use the product was at $3.00. Others feel the pain, but since they are still using the Greenway their price point to not use the Greenway is higher than what they are charging.

I agree with everything you are saying about the compan's health, etc., but that is much higher level then the basic economics and market price I referenced. The internal financials are irrelevant in basic economics. Supply and demand. At what point does the cost not equal a perceived benefit. It is at that point the product is not valued enough and not purchased.

 

I think this is the real solution we should be pushing for -- to get more east-west routes (that are already on the county transportation plan) actually *built*, making it easier for commuters to not use the Greenway. Then it won't matter if they charge $5 or $50, because people won't be using it.

It really doesn't need to be a freeway -- just roads that make it easy for us to get to 28 and the Dulles Toll Road.

 

I think the real answer is flynnibus and I NEVER agree on anything!

Fortunately, I don't have a dog in this fight since I take Rt7 to work. I'm taking the money I save on the Greenway and put it towards Openband......

 

I agree with all you have said in this and the other notes before and after. Certainly Macquarie has set up a clever scheme for off-shoring their profits via their financing structure and enabling the argument that the local entity needs a toll increase to achieve the return on investment allowed under the law. The Commonwealth was either naive or worse when this was setup.

Distance based tolls (DBT) would certainly mean a restructuring of the toll rate so that the Leesburg user would pay more to offset the losses from the lower tolls for the shorter haul users.

One of the three tests that the Greenway has to pass in order to justify a toll increase is that the proposed toll is economically neutral versus the cost of the alternative route. In their past petitions they have used a route from Leesburg as the basis as it is the lowest cost per mile of toll road use. In the case of DBT, the high toll from Leesburg will make it harder to justify the economic neutrality versus the alternate route. If they are unable to make the economic justification, they would be unable to justify the higher toll. The house of cards would start falling down. In the last two rounds of toll increases the hearing examiner recommended to the State Commerce Commission that a study be done on the cost of DBT implementation. Each time the SCC has ruled against the recommendation for a study (just a study!) and approved the increase requested. Perhaps there is a linkage and political pressure was applied to keep the house of cards standing.

-Jim

 

here's the deal people.

there's a double secret agreement that makes such a clustermuck out of waxpool, that greedway traffic is driven through the roof, and someone's pockets are lined with %age the uptick in greedway traffic, and with that, they will purchase Osama's old place, and put a restaurant where blue bros used to be.

i got it aaaaall figured out.