Eight People Charged With Crimes Relating To Pennsylvania Turnpike Contracts

Pennsylvania Turnpike Commission
PTC headquarters building in Harrisburg, Pennslvyania, as seen from the westbound lanes near Exit 247.

A former leader of the Pennsylvania State Senate and seven other people have been charged with crimes related to vendor contracts and other key relationship contracts with the Pennsylvania Turnpike. The eight are charged with a variety of crimes, including conspiracy, commercial bribery, bid rigging, theft and conflict of interest. The charges and investigation were unveiled March 13 in Harrisburg, the home of the Pennsylvania Turnpike Authority’s main offices, which can be seen from the turnpike, itself. One of the people charged in the long-running investigation and criminal case is from Florida, although there was no indication any of the criminal activity was related to Florida’s Turnpike.

The defendants include former Pennsylvania Senate Democratic Leader Bob Mellow, the former chairman of the Pennsylvania Turnpike, Mitchell Rubin, and the former chief executive of the Penna Turnpike, Joe Brimmeier. Raymond Zajicek of Tarpon Springs, Florida, was the the only person charged who was not from Pennsylvania. The remaining defendants include two turnpike vendors, Dennis Miller and Jeffrey Suzenski, and two other former turnpike officials: George Hatalowich, Melvin Shelton. Mr. Zajicek, of Florida, was also once a turnpike official in Pennsylvania.

Pennsylvania’s attorney general, Kathleen Kane, said the defendants’ indictments were the result of a long-running probe dating to 2009. Kane was quoted in the Associated Press as saying, “The public has lost untold millions of dollars. The greatest improper influence was exerted over the turnpike’s procurement process.”

Indeed, the way the turnpike chose vendors may have been directed by the former Senate Democratic Leader. Kane said a grand jury found “substantial evidence” Mr. Mellow had directed at least one aide to help political contributors get contracts for work on the turnpike.

The Pennsylvania Turnpike Commission released a statement calling the charges indefensible. “If charges against former [Pennsylvania] Turnpike employees are proven,” the statement reads, “we certainly cannot … defend that.

“Without a doubt, the commission remains committed to continuing our efforts to improve the accountability and operations of the Pennsylvania Turnpike,” the statement continues.

Drivers in Pennsylvania who commented on the news story, at least on the Internet, were quite mixed. One man said he would protest “as a statement against corruption” by staying off the turnpike.

Others offered positive feedback about the diligence of the attorney general’s office in helping expose the alleged criminal activity.

VIEW THE PTC STATEMENT HERE

Editor's note: This story has been modified from its original version, which misidentified the Pennsylvania Turnpike Commission as the Pennsylvania Turnpike Authority.

Gas Prices Dip Slightly As Spring Break Drivers Hit The Road

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Weekly gas price survey

Gas prices continued their declines into a second week this week as millions more college and university students hit the road for Spring Break, with the largest number of vacationers taking off from major universities during this week and the next two weeks. According to the weekly survey from the Energy Information Administration, the average price of a gallon of gas dropped by about a nickel, but the declines were much higher across the Midwest, where winter prices had suffered their greatest increases during January and February. Only the U.S. West Coast suffered a hike in prices, with average per-gallon costs for gasoline driving upward by about a penny.

March 11, 2013 gas prices
In most U.S. regions, the price for a gallon of regular unleaded is below $4.00 per gallon, although in some areas, just  barely.

The weekly declines mark the second time prices have gone down in as many weeks, and declines have now reached the point that prices, overall, are down from last year at this time. Year over year fuel costs have dropped by as much as 19-cents per gallon in some spots, with the average March gas price being about 12-cents per gallon this year, versus the same week in 2012.

Diesel fuel costs also continued their weekly downward trend, although the declines were not as steep as gas prices. Average prices-per-gallon for diesel dropped by about four-cents nationwide, while across New England down to the Carolinas the average price was down about six-cents per gallon.

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Weekly diesel price survey

Like gasoline, diesel prices are now less than they were at this time last year, although the greatest  year-over-year decline were to be found on the West Coast, where prices were down over 19-cents per gallon, versus the same survey period in 2012.

Still, the declines in gas prices are not yet enough to make up for the Winter pricing hikes that drivers suffered during January and February. Overall, average U.S. prices for a gallon of gas are up about 40-cents per gallon since the beginning of 2013.

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Does A Spring Break From Gas Prices Loom?

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Weekly gas price survey

March usually means the arrival of Spring Break, but it could also herald a momentary break from those continually rising gas prices, according to the latest gas price survey from the U.S. Energy Information Administration. For the first time in several weeks, the average per-gallon cost of a gallon of gas actually declined, although there was no such relief in the Rocky Mountain states or the U.S. West Coast.

Still, the week-over-week dip in fuel costs could not have come at a better time for many living along the Eastern seaboard and in the Midwestern states, where blasts of cold air have pushed up energy consumption. The average price for a gallon of gas dropped by about 2 ½-cents per gallon, but prices fell by nearly twice that rate on the Gulf Coast and Lower Atlantic States.

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Weekly diesel price survey

The relief was extended to truckers and fleet drivers, too, as diesel fuel prcies dropped about 3¢ per gallon during the past week. In an extra line of good news, the price declines affected all regions of the United States, unlike regular petroleum prices.

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Unrelenting Gas Price Increases Continue, With Deep South and West Coast Hit Hardest

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Weekly gas price survey

The spate of continuing gas price increases in the United States has continued, and the U.S. Energy Information Administration’s latest weekly gas price survey showed the West Coast and Deep South faced the highest week-over-week price increases of the year, so far. Some areas witnessed gas prices increasing by nearly 10-cents per gallon, putting greater strain on drivers filling up at the pump.

The relentless rise in gas prices finally caused the EIA to issue a news release today explaining the causes of the rising gas prices. The EIA statement details many of the issues outlined on TurnpikeInfo.com news last week, including the increasing cost of crude oil and the reduction of refinery capacity in the United States.

Meanwhile, one bright spot in the weekly survey was for Midwestern drivers, who have suffered higher-than-average price increases in per-gallon fuel costs since the start of the year. This week’s survey showed gasoline in the Midwest actually dropped nearly 3¢ per gallon, although prices remained over 11-cents per gallon higher than one year ago.

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Weekly diesel price survey

For truckers and other drivers of diesel-powered vehicles, the price of diesel continued to increase, albeit at a slower rate than has been seen since the end of 2012. Weekly diesel averages were up less than a penny per gallon. However, compared to this time last year, diesel prices are up by about 11-cents per gallon.

DOWNLOAD THE WEEKLY EIA GAS PRICE SURVEY

Gas Prices Keep Rising As Summer Driving Cost Becomes Winter Norm

The cost of a gallon of gas continued its unrelenting march to $4.00 per gallon this week as the average cost for a gallon of regular unleaded fuel reached $3.75, up an average of 11¢ per gallon for each of the past two weeks. The price of a gallon of gas has gone up about 50¢ since Christmas Day, less than two months ago, making the average cost of a fill up about $8.00 more expensive for the average U.S. driver. The price is based on a 16-gallon tank filled from near empty. The price of fuel is detailed in this week’s survey from the Energy Information Administration, a branch of the U.S. Department of Energy.

While the cost of gasoline rises, the cost of diesel fuel has also continued to go up week after week since the start of the year. The average price of a gallon of diesel fuel topped out at $4.33 per gallon, for truckers and diesel car owners driving in New England this week. For the U.S. as a whole, the cost is about $4.16 for each gallon of diesel.

Gas prices
Are we going to see $4-per-gallon gas soon? This picture, taken in May 2011 in Fort Lauderdale, shows prices at their pre-summer peak.

Part of the reason for the summer-time gas costs during February can be traced to a reduction in refinery capacity. Commodities trader Dennis Gartman told CNBC Tuesday, February 19, he believed the current cost of gas was traced to what he called an “extraordinary short squeeze” caused by BP and Hess each taking down large refineries. Gartman said the reduced refining capacity pulled “almost a half a million barrels of crude oil out of the market.” BP’s refinery in Whiting, Indiana is offline for routine maintenance, but the Hess refinery in New Jersey, which was closed in January, is slated to remain offline. That could create longer-term issues for fuel supplies.

The American Automobile Association reported the refinery closures are compounded by the fact crude oil, itself, is at nine-month highs, with Brent crude at over $119 per barrel. But, there is no consensus on just how high gas prices will rise or whether the current uptick in prices will continue at its current pace. Gartman told CNBC’s Fast Money he did not expect the fuel prices to keep going up; however, John Kilduff of Again Capital in New York told reporters Tuesday he would not be surprised if gas prices hit $5.00 per gallon.

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Cost To Drive Continues To Rise With Ever-Increasing Gas Prices

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Weekly gas price survey

Gas and diesel prices across the United States are heading back to their post-Summer highs as the week-over-week increase in the per-gallon price continues rising, hitting $3.61 per gallon as of February 11, 2013.  The U.S. Energy Information Administration’s weekly gas price survey shows the cost of driving will now set you back, on average, about $57.76 every fill up.  That price is based on the current U.S. per-gallon average of regular unleaded, multiplied by 16 gallons, the average size of a gas tank on a mid-size car.

The latest jump in prices means gasoline has increased more than 25¢ per gallon since the end of January, with gas prices now at their highest level since September 2012, when the average U.S. cost of a gallon of gas peaked at $3.86.

The 2013 gas price trend is in line with the start of the 2012 calendar year, which saw gasoline prices jump from an average of $3.40 in January, peaking at $3.93 per gallon in May, before declining rapidly through July.  The gas prices jumped again through the fall.  A chart of the long-term gas price trend, by month, can be downloaded here.

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Weekly diesel price survey

Diesel prices also continued their weekly increase, although at a slower pace than during January. The EIA survey of diesel prices shows the cost of a gallon of fuel for truckers and diesel-car owners is now at just over $4.10 per gallon.

The rising cost of fuel has prompted some trucker publications, including Transport Topics, to offer tops to reduce fuel costs, particularly for fleet operators.

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Gas Prices Surge Across U.S. As Prices Jump Nearly 7%

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Weekly Gasoline Price Survey

Gas prices surged by as much as 22-cents per gallon during the past week, according to the latest survey of the Energy Information Administration, a branch of the Department of Energy. The rise in case prices was felt from coast to coast, with prices in the Midwestern states rising the most, over 22¢ per gallon, while the West Coast felt a 13-cent rise in fuel prices. Including California, the U.S. West Coast gas price jumped by over 19¢ per gallon.

Across the Northeast and Atlantic States, gas prices jumped an average of 14-cents per gallon, week over week, with the average driver paying as much as $2.25 more per fill-up. The price is based on an average mid-size U.S. car with a 16-gallon fuel tank. If such a driver filled up twice per week, as a commuter, the likely monthly impact of the past week’s gas-price increase would average about $19.48 per month.

The prices come on the heels of average weekly gas price increases that have troubled U.S. drivers since the beginning of the year. There have been only a couple of weeks since January 1, 2013 when weekly gas prices have gone down, and such declines have been fairly minimal.

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Weekly U.S. Diesel Price Survey

Meanwhile, the cost of diesel fuel has continued to increase during the past week, costing independent truckers and other shipping companies more to bring products to consumers. The average price of diesel across the U.S. increased by 10 cents during the past week. Diesel prices have typically outpaced the inflationary trend of regular unleaded gasoline, but this week that trend was snapped. As with regular gasoline prices, the Midwest witnessed the biggest price increase, at over 11-cents per gallon. New England diesel fuel prices went up the by the smallest amount, which was about 6-cents per gallon, on average.

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Canoe Creek and Turkey Lake Service Plaza Construction

Canoe Creek Service Plaza
Older Google image of the Canoe Creek Service Plaza, as seen on TurnpikeInfo.com from 2009 through 2011.

Florida’s Turnpike Enterprise continues with a multi-year construction project to renovate all service plazas across the turnpike, with the Canoe Creek Service Plaza becoming the latest addition to the list of plazas undergoing renovations. The Canoe Creek travel plaza is located at mile marker 229, just south of the Disney-Area exits in Osceola County. At this time, the gas station remains open, with some food in the convenience store. The only other food available at this time is from the Dunkin’ Donuts restaurant. The food court is undergoing a complete renovation that will not be completed for several months.

Further north, in the heart of the Orlando Metro Area, the Turkey Lake Service Plaza construction continues unabated, with final work on the new food court underway. However, some limited food service is available. Nathan’s Hot Dogs recently reopened, and there is a new convenience store and gas station operating at the travel plaza, located at mile marker 263, between the I-4 and East-West Expressway exits.

The upgrade to Florida Turnpike service plazas will cost about $162-million. It is expected traffic through the service plazas will be largely unaffected by the construction work. A clerk at the Canoe Creek Service Plaza told TurnpikeInfo.com Wednesday night, January 30, the traffic going through the plaza was moving, “pretty good,” and that no construction vehicles were blocking any access.

Gas Prices Rise On East Coast, Surge In Midwest And Rocky Mountains

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Weekly gas price survey

Average gas prices bounced up nearly three cents per gallon along the East Coast of the United States during the past week, according to this week’s fuel survey by the Energy Information Administration. Some states along the Lower Atlantic states saw only two cent, per average, increase. Drivers living in the Midwest and particularly the Rocky Mountain states saw they fill-up costs leap by as much as 10-cents per gallon, on average. The EIA weekly survey results were released January 28, 2013.

The overall rise in fuel prices across the  the United States comes on the heels of a spike in crude oil prices on the New York Mercantile Exchange late last week. Energy companies generally adjust the prices charged for refined fuels to offset an anticipated rise in crude, even when the delivery dates for crude oil are two and three months away.

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Weekly diesel fuel survey

The cost of diesel did not rise as much as regular gasoline during the past week; however, diesel still increased by an average of three cents per gallon, following a larger spike in prices last week. The continued increase in diesel costs will continue affecting the trucking industry, particularly smaller fleets and independent operators.

DOWNLOAD THE WEEKLY EIA GAS PRICE SURVEY

Gas Prices for January 21, 2013 Show Solid Declines, But …

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Gas price survey

Gasoline prices marked a solid decline over the past week, but those drivers enjoying the biggest declines were only to be found on the East Coast and Gulf Coast states. Drivers in the Rocky Mountain States and particularly in the Midwest saw a sharp spike in gas prices, according to the weekly gas price survey from the Energy Information Administration.

The survey showed declines in regular gasoline prices across all regions if the East Coast, which includes New England and the Atlantic states. New England states saw the smallest decline, while states across the lower Atlantic enjoyed a decline of more than 3¢ per gallon.

Conversely, Midwestern drivers found fuel prices surging by upwards of 7¢ per gallon. It was the sharpest increase in fuel prices seen for the Midwest since last August, prices even surpassed last summer’s average price per gallon across the Midwest.  However, prices in states from the Dakotas to Ohio remained below the national average.

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Diesel fuel prices

Meanwhile, for truckers and other drivers of diesel-fueled vehicles, prices in diesel fuel rose across nearly every region of the United States, while remaining nearly flat across New England and the Central Atlantic states. Overall, Diesel fuel prices remain anywhere from 6¢ to 11¢ per gallon higher than this time last year, except in the Rocky Mountain and West Coast states, where prices year over year have fallen.

DOWNLOAD THE WEEKLY EIA GAS PRICE SURVEY