Should Power Utility Customers Pay for Road Projects?

WI Gov. Scott Walker's proposal is to sell-off state assets, primarily state power plants to finance his transportation plan, thus linking rate payers with funding road projects. His transportation commission recommended raising the gas tax and fees.

3 minute read

February 22, 2013, 8:00 AM PST

By Irvin Dawid


In yet another example of a governor resorting to extreme measures to avoid doing what the experts recommend - raising the state gas tax or other road user fees - Wisconsin Governor Scott Walker seeks "to sell the 37 power and heating plants" to finance his two-year $6.4 billion transportation plan. Patrick Marley, Jason Stein and Don Walker write that such a "move could also have the unexpected effect of linking the prices paid by some utility customers to the financing of the state's road system".

Presenting the broad outlines of his roads plan, Walker said he will not recommend raising the gas tax or vehicle registration fees - ideas advocated by a commission he and legislators set up two years ago.

By increasing user fees such as gas taxes, vehicle registration fees, and road tolls - a 'pay-as-you-go' approach to financing the plan would be possible. Walker is opting for a bonding approach - dependent upon selling state assets, according to what was told to Assembly Speaker Robin Vos (R-Rochester) by the Walker administration.

The power plants serve University of Wisconsin campuses and state prisons. A Republican state senator skeptical of the plan asked how the sale would affect the rates that the state pays for utilities and "ordinary ratepayers unconnected to the state".

The proposal is somewhat reminiscent of another state sale of a state asset: the 2006 leasing of the Indiana Toll Road to a private consortium. In that case, drivers on the toll road, rather than utility payers, would be tied to financing a 10-year state transportation plan.

The proposal needs legislators' approval - and ensuring a competitive process for selling the assets may secure it. Approval by the state Public Service Commission is not needed according the governor - but refuted by others as they are charged to determine if "if projects are 'in the public interest'".

In fact, such a sale could make sense as the facilities are aging, in need of upgrade, and may need to be converted to burning natural gas or biomass from coal, according to the JS reporters. Whether revenues be dedicated to road projects that have a dedicated steady, if declining revenue stream is another matter.  

Unlike most other states, the state gas tax had been indexed to inflation according to the Wisconsin Dept. of Transportation (PDF) - but "(t)he Legislature froze the state gas tax at 32.9 cents per gallon in 2006". According to the Tax Foundation map, it is the fourteenth highest in the nation.

The 'path not taken' by Gov. Walker is one just taken by fellow Republican Gov. Matt Mead of Wyoming on Feb. 15 when he signed a substantial state gas tax increase bill of 10-cents or 71%.  AP via the Casper Star-Tribune Online wrote that the governor "says the state can no longer afford to subsidize the transportation department from general funds." The entire hike goes into effect on July 1, resulting in a total state excise tax of 24 cents.

Friday, February 15, 2013 in Milwaukee Journal Sentinal

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

June 11, 2025 - Diana Ionescu

Metrorail train pulling into newly opened subterranean station in Washington, D.C. with crowd on platform taking photos.

Congressman Proposes Bill to Rename DC Metro “Trump Train”

The Make Autorail Great Again Act would withhold federal funding to the system until the Washington Metropolitan Area Transit Authority (WMATA), rebrands as the Washington Metropolitan Authority for Greater Access (WMAGA).

June 2, 2025 - The Hill

Large crowd on street in San Francisco, California during Oktoberfest festival.

The Simple Legislative Tool Transforming Vacant Downtowns

In California, Michigan and Georgia, an easy win is bringing dollars — and delight — back to city centers.

June 2, 2025 - Robbie Silver

Bike Parking Utrecht Centraal Station

Supporting Cycling Takes More Than Just Bike Lanes

Safe, protected bike lanes are a key part of a city’s bike infrastructure — but secure parking, e-bike charging, and other amenities can also influence people’s shift to cycling.

June 11 - Cities Today

A blue and white Sound Transit heavy rail commuter trail with downtown Seattle skyline in background.

Judge Blocks Anti-DEI Rules for Transportation, Housing Grants

A second injunction blocks the Trump administration from enforcing new regulations for federal funding.

June 11 - The Seattle Times

San Jose, California city hall with glass dome in front of modern multistory building.

Unhoused People in San Jose Could Face Arrest if They Refuse Shelter

A policy proposed by the city’s mayor would give law enforcement the option to arrest homeless residents if they refuse three offers of housing.

June 11 - Associated Press