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TAXES & FEES EXPLANATION

Allied Waste is committed to providing high quality service to our customers. We strive to control our costs in order to provide you exceptional service at reasonable rates. Fuel prices and environmental compliance costs, however, are costs we are unable to unilaterally control. The Fuel/Environmental Recovery Fee is a charge to help us recover these costs, and is identified as a single line item on your invoice. This line item represents two separate charges, a fuel recovery fee and an environmental recovery fee.

Fuel Recovery Fee
On May 1, 2006, Allied Waste updated the Fuel Recovery Fee component of the Fuel/Environmental Recovery Fee. The change increases the previous fuel recovery fee table by 1.25%. This change was made to more appropriately align the fee with the total cost of diesel Allied Waste incurs nationwide. The Fuel Recovery Fee component of the charge references the U.S. Department of Energy diesel price U.S. Average index, which is based on data from the U.S. Energy Information Administration. For additional information on the index, please click on the following link: http://tonto.eia.doe.gov/oog/info/wohdp/diesel_detail_report.asp.

The Allied Waste Fuel Recovery Fee component will be updated at the beginning of each month (on or about the 1st of each month). The corresponding diesel rate will be the peak weekly-published price per gallon in the preceding 31-day cycle. For example, if the highest diesel price per gallon were $2.75, based on the updated Allied Waste Fuel Recovery Fee Table, (Click here for Fuel Recovery Fee Table effective May 1st, 2006) the fuel component of the charge would be 9.80% of your invoice amount, excluding taxes. (Click here for the Historical Fuel Recovery Fee Table)

Environmental Recovery Fee
The Environmental Recovery Fee component of the charge is designed to recover the total annualized costs associated with environmental compliance incurred nationwide by Allied Waste. These costs include, but are not limited to, engineering costs, monitoring costs, and environmental systems maintenance. The fee is currently 5% of all invoice charges, excluding tax.

Calculation of Fuel/Environmental Recovery Fee
The Fuel/Environmental Recovery Fee charged on a customers invoice is calculated by adding the percentage from the fuel recovery fee table and the environmental fee and applying it to the total invoice charges, excluding taxes.

Not a Governmental Tax.

The Fuel/Environmental Recovery Fee is not a tax, surcharge, or fee mandated/imposed by or remitted to any governmental or regulatory agency. As noted above, the fee is an Allied Waste charge. The Fuel/Environmental Recovery Fee may be changed at the discretion of Allied Waste.

 

Frequently Asked Questions
Q: Why did you change the fuel component of the charge on May 1, 2006?
A: The increase was necessary for Allied Waste to recover the significant increased cost of diesel today.

Q: How often does the fuel component of the charge change?
A: The fuel component of the charge will change on a monthly basis. The FRF % will increase/decrease as the national average diesel price changes.

Q: How often does the environmental component of the charge change?
A: This component does not change monthly. It is currently set at 5% of the invoice charges, excluding taxes.

Q: Why do you charge an Administrative Fee?
A: There are specific costs associated with generating our invoices such as printing, mailing, cash processing and account maintenance. The increasing nature of these types of costs made it necessary to revise the Administrative Fee, which allows us to recover a portion of these costs. Rather than implementing a general price increase to cover these costs, we are identifying specific factors that influence our costs and recovering a portion of these costs through this Fee.

Q: Is there an alternative to paying or being charged the Administrative Fee?
A: Yes, if you enroll in our convenient recurring payment plan your Administrative Fee will be waived. There are two ways to enroll. You may either call customer service at the telephone number listed on the front of your invoice or you can enroll online at www.disposal.com.

We appreciate your business and look forward to continuing to serve you and the community. If you have any questions, please contact your local Allied Waste office at the phone number on your invoice.