NTTA delays registered toll-rate decision; sends proposal to FAA committee after board debate

The North Texas Tollway Authority on March 12, 2025, discussed a proposed new "registered toll" rate that would let customers tie a license plate to a guaranteed payment mechanism (credit card) and be charged a lower rate than standard ZipCash invoices. Board members asked for more analysis and directed staff to return the item to the FAA committee in April for additional discussion and specific follow-up information.

Why it matters: The change is intended to expand lower-cost payment options for people who prefer or require license-plate-based transactions (including many commercial fleets) and to improve revenue assurance by reducing invoice generation and collection costs. Staff projected a net benefit to NTTA of roughly $14.7 million from the program at proposed pricing, but several board members sought further detail on consumer impacts, communication strategy and affected plate counts before adopting a final rate.

Proposal presented and projected effects

NTTA staff, led by Jeff Daley, presented a multi-phase rollout of a new registered toll rate: a license-plate-based payment tied to a guaranteed payment method would be charged 50% of the transponder (toll-tag) rate in the example used during the briefing. Illustrative pricing in staff's materials showed a $1.50 registered-plate charge compared with a $1.00 transponder rate and a $2.00 ZipCash premium in some examples. Staff's model indicated this change would affect a small share of system transactions initially (about 1% of overall transactions) and approximately 300,000 plates on toll-tag accounts (the presentation used 2023 data as a baseline) while yielding an estimated net benefit of about $14.7 million in the model presented.

Staff also proposed a phased rollout: April (interoperable and fleet transactions), June (license plates on NTTA toll accounts), August (ZipCash with autopay), and November (excessive license-plate reads and other edge cases). NTTA would not automatically change signage on roadways; initial outreach would rely on the NTTA website, targeted communications to fleet account managers, and billing inserts or emails.

Board concerns and direction

Board members raised multiple questions about equity, customer communication and operational details:

- Several members noted the board's sensitivity to toll-rate changes after the large increase in 2023 and requested more time and data before adopting a new rate structure for registered plates.

- Directors asked how the proposal would affect customers who prefer not to store payment information with NTTA or who face banking constraints (for example, potential overdraft risks). Staff responded that the registered option is voluntary and designed as an incentive to move some ZipCash customers to a lower-cost, guaranteed-payment arrangement.

- Directors asked for a clearer breakdown of how the $14.7 million net benefit was calculated; staff explained the benefit arises primarily from reclassifying certain "interoperable" license-plate customers who currently receive transponder rates while being license-plate billed, plus lower operating and billing costs (reduced invoice volume and lower per-transaction processing costs versus manual billing and OCR processing).

- Board members asked about outreach and whether customers would receive advance notification. Staff said toll-tag account holders would receive notices, fleets would be contacted directly, and ZipCash customers would be offered the option through billing inserts and emails.

Board action and next steps

Director Gravley formally moved to send the registered-toll-rate item back to the FAA committee for further review; Director Baker seconded. After discussion and with the chair's concurrence, the item was referred to the FAA committee for April with direction that staff provide specific follow-up data to committee members in advance. Staff committed to supply the additional materials and return to the FAA committee before bringing any final proposal back to the full board.

Speakers (first reference includes role/title as given in the transcript)

- Jeff Daley, staff presenter (finance and program briefing) - Director Gravley, NTTA board member (moved referral) - Director Baker, NTTA board member (seconded referral) - Director Grama, NTTA board member (commenter) - Director Knight, board member (presiding at the time of direction to committee)

Clarifying details extracted from the meeting record

- Proposed pricing example: registered-plate transaction shown as $1.50 (50% of transponder sample) compared with $1.00 transponder and $2.00 ZipCash example (figures used in staff presentation; modeled outcomes vary by segment). Source: Jeff Daley presentation. - Staff's modeled net benefit: approximately $14,700,000 (staff estimate presented to the board; model inputs include projected reclassification of some interoperable license-plate transactions and lower billing/collection costs). Source: Jeff Daley presentation. - Estimated affected plates and transactions: staff projected roughly 300,000 plates on toll-tag accounts may be eligible in the rollout phase; about 1% of systemwide transactions initially would move to the registered rate, per staff's illustrative model (using 2023 data as a baseline). Source: Jeff Daley presentation. - Phased rollout timeline (staff-proposed, contingent on Board direction): April (interoperable/fleet), June (license plates on NTTA accounts), August (ZipCash autopay option), November (excessive license-plate reads and other cases).

Authorities and constraints noted

- The board emphasized the need for clear communications and compliance with NTTA's policies and trust agreements; staff noted legal and contract considerations will be accounted for before any final rate change.

Meeting outcome

- The board referred the registered toll-rate proposal to the FAA committee for further review in April; no final rate change or vote on adoption occurred on March 12. Staff will supply requested data and analysis to committee members before that meeting.