Advanced Disposal’s invoices include various charges and fees (“Charges”). These Charges are the result of various internal and external factors that impact our business and are not represented to be an offset or pass through of Contractor’s actual costs whether taken collectively or with respect to each category, nor are they representative of actual taxes and surcharges imposed by or remitted to a governmental agency. Rather, they are intended to address a portion of Advanced Disposal’s costs on a companywide basis. Such Charges, including the examples below, also reflect the need to achieve an operating margin acceptable to Advanced Disposal.
Advanced Disposal is committed to ensuring a clean and safe environment for our employees, our customers, and our communities. We consider environmental stewardship of utmost importance and believe that our true business is making the world a cleaner, more beautiful place to live, work and play. In furtherance of these commitments Advanced Disposal assesses an Environmental Charge as a means to address impacts of various environmental factors associated with such things as site development, construction and maintenance, engineering, permitting and licensing and costs associated with managing and disposing of wastes in an environmentally sound manner.
The Energy Charge is assessed as a percentage of a Customer’s total invoice amount (exclusive of taxes and other Charges) to address direct and indirect energy costs which are subject to volatile and unpredictable fluctuations in market conditions for the energy consumed by our business and operations. The Energy Charge is calculated based on the peak price of diesel fuel during the thirty day period preceding the 15th day of the month of the Customer’s invoice as published by the Energy Information Administration of the U.S. Department of Energy (EIA/DOE) in its Weekly Retail On-Highway Diesel Price Index. This index is objective, publicly available and widely recognized in the trucking and transportation industries. The Energy Charge Table cross-references the peak diesel price with a corresponding energy charge percentage. The Energy Charge is calculated by multiplying this percentage with the total amount invoiced (not including taxes and other Charges).
Compliance and Business Impact Charge.
Advanced Disposal’s operating locations are faced with extensive oversight and compliance demands along with internal and external initiatives or requirements designed to improve the safety, efficiency, and management of our sites and employees. Advanced Disposal’s operating locations have and will continue to incur rising business impacts that exceed commonly used inflation indices. These factors make typical rate structures less reflective of the financial demands required to provide service at the highest levels of responsibility and stewardship our customers expect. The Compliance and Business Impact Charge is assessed as a percentage of the invoiced amount (exclusive of taxes and other Charges) to help address companywide impacts associated with oversight and compliance as well as internal and external initiatives designed to anticipate and enhance the safety, efficiency and management of Advanced Disposal’s operations.
The Administrative Charge is assessed to address companywide impacts associated with, by way of example and not limited to, customer billing, collection functions, print mail, lock box services, bank charges, and bad debt. A discounted charge may be applied in some instances for paperless billing and automatic payments.