Financial Position of 91 Express Lanes Owner

Re “The Right Route for the 91,” Editorial, Jan. 27:

The Times erroneously speculated regarding the financial condition of our company’s franchise. Public documents show that California Private Transportation Co.’s toll revenue grew from $7million in 1996 to $21million in 2000. And we will soon report that 2001 was the company’s best year ever, with revenue significantly exceeding 2000’s.

The 91 Express Lanes reached operating break-even in its third month of operation and achieved positive cash flow in its third year of operation. Any financial expert will tell you that these are extraordinary accomplishments for an infrastructure project of this size and nature.

In July, CPTC substantially improved the 91 Express Lanes’ short and long-term profitability by refinancing the facility’s original construction debt with AAA-rated toll revenue bonds, taking advantage of lower interest rates. The refinancing would have been impossible if we were in “financial difficulty.”

By providing significant benefits to customers, the 91 Express Lanes enjoy customer loyalty and significant market share. Today, more than 50% of commuters who regularly travel the Riverside Freeway through Santa Ana Canyon have FasTrak transponders.

It was OCTA that approached our company regarding the potential purchase of the 91 Express Lanes franchise, not the other way around. We have pledged to meet with OCTA regarding its interest, even though we are not pursuing a sale. If these discussions are to be productive, they will need to focus on delivering a result that benefits both CPTC and OCTA; one that is based on the full economic value of the business and considers the interests of our customers, employees and investors.

Greg Hulsizer

General manager

Calif. Private

Transportation Co.