The Energy Surcharge applies to customers in our collection and disposal lines of business and replaced our former Fuel Surcharge starting with invoices generated in April 2023. The Energy Surcharge is a recurring charge and is typically a fluctuating percentage of all invoice charges, excluding taxes.
The Energy Surcharge fluctuates up or down based on changes in the reported prices of diesel fuel and/or natural gas (a component of compressed natural gas or “CNG”), as reported by the U.S. Department of Energy in its weekly diesel price index and by the Henry Hub spot price index for natural gas. For Canadian customers, the Canadian national diesel price index is published by Bloomberg.
The Energy Surcharge is intended to measure changes in the cost of diesel, natural gas, and other hydrocarbon-based fuels and products that our WM operating companies and subcontractors use across our enterprise. Energy or fuel surcharges are common in the waste and transportation industries, including airlines, trucking and delivery service companies, as well as utilities.