CCP 03-27-2006 - Laserfiche WebLink

Home Browse Search

PrQcurcmcnt - Overview Page 10f2 WM Fuel/Environmental Charge Information ~ Print this page . Overview Waste Management is committed to controlling costs so we can continue to provide you with the best overall value in waste related services. However, rising fuel prices and environmentally related compliance costs are something we cannot control and our Fuel/Environmental Charge is meant to help us recoup these increased costs. The Fuel/Environmental Charge is one line item on customer invoices that contains two separate components - a fuel surcharge component and an environmental cost recovery component. Fuel Component for all invoices dated on or after June 29, 2005, we changed the fuel surcharge component of our fuel/Environmental Charge to more accurately reflect the impact of changing fuel prices on our expenses. The fuel surcharge calculation is tied directly to the national average price of diesel fuel as reported weekly by the Energy Information Administration of the U.S. Department of Energy ("EIA/DOE") in its Weekly Retail On-Highway Diesel Prices Index. This index is objective, publicly available and widely recognized in the trucking and transportation industries. This change will ensure that you, our valued customer, will pay a fuel surcharge that is currently adjusted, easy to calculate, and equitable to you and the Company. The EIA/DOE average is published each Monday and will be used for all invoices created during that week. The WM Collection Fuel Surcharge Table or WM Disposal Fuel Surcharge Table shows what the fuel surcharge, as a percentage of your monthly or other periodic invoice charges, before taxes, would be based upon the last reported EIA/DOE national diesel price index prior to your invoice date. For example, if the last reported EINDOE national diesel price index immediately preceding your invoice date were $2.00 per gallon, your fuel surcharge would be 5.25% of your invoice charges, excluding taxes. Environmental Component The environmental component of the Fuel/Environmental Charge is to cover the annualized increase in our nation-wide costs associated with environmental compliance, which has grown substantially on an annual basis since 2002. The environmental charge as assessed to a customer is not tied to the specific increased environmental compliance costs to service such customer, but the increased environmentally related compliance costs to service all Waste Management customers. on a nation-wide basis. As a result of the continued increase in such costs, we increased the environmental component of our Fucl/Environmental Charge on customer invoices from 1% to 2% of all invoice charges (excluding tax) beginning February 15, 2006. These environmentally related expenses include, but are not limited to, cover materials, engineering costs, environmental testing, and maintenance on environmental systems. . Determination of the Fuel/Environmental Charge Amount The Fuel/Environmental Charge that is included in a customer's invoice is determined by applying the percentage from the WM Collection Fuel Surcharge Table or WM Disposal Fuel Surcharge Table to the invoice charges(excluding tax). The 2% environmental component is then applied to the sum of the invoice charges and the fuel surcharge amount, but excluding tax, Historical WM Fuel/Environmental Charge values: For easy reference, the Historical Table shows each Fuel/Environmental Charge issued by WM since July of 2005. This table also references the corresponding EIA/DOE value for each week. Not a Governmental Tax; Future Changes The Fuel/Environmental Charge is not a tax or surcharge imposed by or remitted to any governmental or regulatory agency; it is our charge. The Fuel/Environmental Charge percentages may be changed at the discretion of Waste Management. To the extent required by your applicable customer service terms, the assessment of the Fuel/Environmental Charge and any changes to such charge is effective upon your payment. Frequently Asked Questions Q: Why did you increase the fuel surcharge component on June 29, 2005? A: This increase was necessary for us to stay even with the cost of diesel fuel today. Our residential and commercial vehicles get 3 - 4 miles per gallon and our roll off vehicles around 8. In addition, the third party vendors that transport our waste are charging us fuel surcharge. We changed our calculation to the National Average Fuel Index, which gets our Company closer to covering our fuel costs_ . Q: If the price of fuel goes dOWll, will my fuel surcharge component go down too? A: Yes, if the Department of Energy's National Average price falls, your fuel surcharge component will come down as well. This information is updated weekly. If the cost of diesel fuel decreases, this will affect your fuel surcharge hHn.//uJUJUl u....rn ...."mfW1\./f/nr{){'JlrpITlpntflillpl-infn/hlp.1 "=l1T('"h~r{Jp ~,,=n 71?71?OOr:.