At Cadence, we are committed to providing the highest quality services to our customers through operations that are safe, responsible and sustainable. We strive for continuous improvement by optimizing our services and rigorously controlling our costs so your disposal costs can remain low.
As part of these ongoing efforts; Cadence has absorbed many extra market costs rather than passing them through to our customers. We’ve been able to do that with most of our customers over the last five years having not implemented price increases during that time. We’re proud of that.
In addition to continued annual increases in both our fixed and variable costs; we have also been impacted recently with new and unexpected environmental and risk assessment costs. While we can and will absorb some of these extra costs, we cannot absorb them all. Therefore, beginning January of 2020, we will be implementing an ERF (Environmental Recovery Fee).
The ERF will be applied on a disposal volume basis and assessed as a $/Ton rate. The ERF will not be added to taxes or other fees and will be separate from base disposal and surcharge fees. Going forward, we will continue to do everything possible to offer our customers the best possible services at the lowest possible costs.