WM Temporary Energy Surcharge Request LP 10.16.2026
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222 S Mill Ave. Suite 301 Tempe, AZ. T: 602-930-6145 October 13, 2026 Subject: Proposal for Temporary Energy Fuel Charge – Litchfield Park Dear Mr. Williams, WM values our ongoing relationship with Litchfield Park and remains committed to providing reliable, high-quality service to the community. We are writing to provide an update on current market conditions and formally request consideration of a temporary Energy Fuel Charge under our agreement. The waste and recycling services provided to Litchfield Park depend on a complex network of collection vehicles, transfer operations, disposal facilities, recycling processing, and transportation infrastructure. Like many essential service industries, these operations are affected by broader economic and energy market conditions. WM has absorbed a substantial portion of these cost increases to minimize impacts on customers and maintain service continuity. However, the magnitude and duration of these cost pressures have created a growing gap between current gate rates and the actual cost of providing service. The graph below illustrates the ongoing cost pressures affecting the waste and transportation industries. Diesel fuel prices continue to reach historic highs. Recent geopolitical instability and ongoing disruptions within global energy markets have resulted in significant increases in fuel costs nationwide. Because fuel is one of the largest operating expenses associated with collection, transfer, transportation, and disposal activities, these increases have had a direct and material impact on the cost of service. 222 S Mill Ave. Suite 301 Tempe, AZ. T: 602-930-6145 The current national average diesel price is approximately $6.38 per gallon, compared to $3.71 per gallon during the same period last year, representing an increase of more than 70%. These elevated fuel costs have persisted well beyond typical market fluctuations and are compounded by continued increases in labor, equipment, maintenance, insurance, and regulatory compliance expenses. As a result, the cost of delivering reliable waste and recycling services has increased at a pace that exceeds the adjustments contemplated under standard contract pricing mechanisms. These changes are outside the control of both Litchfield Park and WM, yet they have materially affected the cost of providing essential services. Throughout this period, WM has worked diligently to manage these impacts while maintaining consistent service levels for residents and businesses. We have absorbed a substantial portion of these rising costs and continued investing in the personnel, equipment, facilities, and infrastructure necessary to ensure dependable service. Given the magnitude of these extraordinary market conditions, WM is proposing a temporary Energy Fuel Charge as a separate line rather than a permanent change to the base rate. Proposed Temporary Charge Calculation: Effective November 1, 2026 • Energy Surcharge (CNG +Diesel) Q22025: 14.75% • Current Energy Surcharge (CNG +Diesel) Q22026: 22.65% • % Increase: 7.72% • Proposed monthly temporary fuel charge: $ 0.99/ per household • Duration: 6 months (subject to 3-month review) The temporary Energy Fuel Charge will: • Appear as a separate line item for transparency – “Invoice reflects a temporary fuel surcharge of $0.99 monthly. • Remain fixed for six months to support budget predictability. • Be reviewed mid -cycle and adjusted if fuel prices decline or increase further. 222 S Mill Ave. Suite 301 Tempe, AZ. T: 602-930-6145 Our request is intended to address short -term fuel volatility, not permanently changing the base rate. By using a separate, time -limited charge, Litchfield Park can maintain clear visibility with the cost driver while helping preserve the safe, dependable , and uninterrupted service that residents depend upon every day. We welcome the opportunity to review this proposal with you in detail and answer any questions. Thank you for your continued co llaboration . Sincerely, Clark Landrum Senior Account Executive T: 602.930.6145 222 S. Mill Ave., Suite 301 Tempe, AZ 85281