Dear Customer:

As you are aware, fuel prices have spiraled upward over the past several months and presently are higher than they have ever been in our history. We have acted in good faith in our attempt to resist seeking relief, but this has placed an undue burden on us. We had hoped that this would be a short term inconvenience, but now it looks as if it will last longer than anyone expected. Due to the critical nature of the current situation, we can no longer continue to absorb these increased costs in their entirety. Therefore, we must implement a fuel surcharge.

The fuel surcharge will remain independent from our base rates and will be shown as a separate entry on our billings. The effective fuel surcharge will be a percentage of the Diesel Fuel Index. While Bavarian and its competitors are subject to similar budgeting constraints, our fuel surcharge is the lowest in this market. We will continue to endeavor to keep this burden at a nominal rate for our valued customers.

We regret that this action is necessary and we deeply appreciate your partnership in helping us to share in the burden of the fuel cost increase.

Please note, those individuals subject to a municipal franchise agreement like the City of Erlanger will not be charged as per the contract.

Respectfully,

Bavarian Waste Services