HAMMOND, Ind. (AP) — Travelers who pay cash along the Indiana Toll Road will see their rates increase starting April 1.

The road’s private operator expects an electronic tolling system will be ready for the full length of the 157-mile highway later this month.

Under its contract with the state, the Indiana Toll Road Concession Co. can increase tolls for cars and motorcycles once the electronic i-Zoom is fully installed. The toll for the full length of the toll road will rise to $8 from the current $4.65 for people paying cash.

Drivers who use an electronic toll transponder won’t see a toll hike until 2016.

“You continue to pay the rates that were set back in 1985,” said Jennifer Alvey, Indiana’s public finance director.

Raising tolls for the first time in two decades was a linchpin to the 2006 deal that allowed Republican Gov. Mitch Daniels to agree to a 75-year lease of the toll road for $3.8 billion.

The Indiana Finance Authority, which owns the toll road, finalized rules Tuesday to implement the new passenger vehicle tolls. Commercial trucks have been paying higher tolls since 2006.

ITR debuted its i-Zoom system in northwest Indiana late last year and has been working to install electronic tolling on the rest of the highway.

Alvey said Indiana has paid ITR Concession Co. $52 million since July 2006 to underwrite the passenger vehicle discount, which until next month covers both electronic and cash tolls.

An i-Zoom costs $50, which includes a $10 deposit and $40 in prepaid tolls. The transponders can be ordered at www.getizoom.com.

Posted 3/20/2008