September 1, 2021
Dear Valued SCA Customer,
SCA and its affiliated companies continue to incur higher fuel costs in providing the high-quality services our customers have come to expect. While we have attempted to address these higher costs through operating efficiencies, SCA can no longer continue to absorb the higher fuel costs. As a result, we are implementing a variable energy charge, effective September 1, 2021.
The variable energy charge will be expressed as a percentage of a customer’s total invoice amount (excluding taxes and other charges), unless otherwise agreed, and is intended to address direct and indirect energy costs – fuel, natural gas, electricity – that affect almost every material used and service offered by SCA. SCA calculates the variable energy charge using the national average price per gallon of diesel fuel on the last day of the month according to the Energy Information Administration of the U.S. Department of Energy (EIA/DOE), as published on its website: (https://www.eia.gov/petroleum/gasdiesel/).
This index, which is objective and widely recognized, is used in commercial markets to track fluctuations in diesel fuel prices. SCA inputs the national average price per gallon of diesel fuel on the last day of the month into a formula that produces a percentage to be applied to customer invoice charges. The SCA Energy Recovery Fee Table, published on our website, reflects the formula’s correlation of changes in the fuel index to changes in applied invoice percentage. By way of example, if the monthly average price per gallon of diesel fuel is $2.29, then the monthly variable energy surcharge reflected on a customer’s bill will equal .11% of the customer’s invoice charges, less taxes and other charges, unless otherwise agreed. SCA reserves the right to vary the amount or to adjust the formula for calculating the variable energy charge in order to maintain operating margins acceptable to SCA. If SCA adjusts the formula, it will update the table accordingly.
SCA is dedicated to providing customers with safe and dependable power sweeping services. SCA sincerely appreciates your business and if you have any questions, please do not hesitate to contact your local SCA representative. Thank you.
Sincerely,
Sweeping Corporation of America
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SCA incurs many costs to provide high-quality services to its customers, and some of these costs may change significantly from month to month, week to week, or even day to day. Moreover, significant swings in these costs can be hard to predict. SCA remains committed to providing its customers with the best value in the marketplace. To do this, SCA uses variable charges to address volatility in certain costs of services in lieu of imposing fixed prices designed to address what may or may not happen over the long term. These variable charges allow SCA to maintain acceptable operating margins while also maintaining value to the customer throughout the customer’s service period.
Variable Energy Charge
Energy costs – fuel, natural gas, electricity – are almost constantly changing and often in ways that can be hard to predict. Changes in direct costs of energy also ripple into seemingly unrelated costs because almost every material and activity that exists or occurs in the marketplace has an energy cost component. The variable energy charge helps SCA maintain acceptable operating margins and customer value despite volatility in direct and indirect energy costs. The variable energy charge is not designed or intended to correlate specifically to the direct costs and expenses of servicing an individual customer’s account. Rather, the variable energy charge addresses overall direct and indirect energy costs incurred by all affiliates within the SCA family of companies.
To do so transparently, and unless otherwise negotiated with a customer, SCA calculates the variable energy charge using the national average price per gallon of diesel fuel on the last day of the month according to the Energy Information Administration of the U.S. Department of Energy (EIA/DOE), as published on its website:
https://www.eia.gov/petroleum/gasdiesel/
This index, which is objective and widely recognized, is used in commercial markets to track fluctuations in diesel fuel prices. SCA inputs the national average price per gallon of diesel fuel on the last day of the month into a formula that produces a percentage to be applied to customer invoice charges. The SCA Energy Recovery Fee Table, published below, reflects the formula’s correlation of changes in the fuel index to changes in applied invoice percentage. By way of example, if the monthly average price per gallon of diesel fuel is $2.29, then the monthly variable energy surcharge reflected on a customer’s bill will equal .11% of the customer’s invoice charges, less taxes, and other charges unless otherwise agreed. SCA reserves the right to vary the amount or to adjust the formula for calculating the variable energy charge in order to maintain operating margins acceptable to SCA. If SCA adjusts the formula, it will update the table accordingly.
Should you have questions regarding your invoice or the variable energy charge calculation, please contact your SCA service location.
SCA – Variable Energy Charge – Calculation Table 08042021.pdf
