Waste Management 2008 Annual Report Download - page 40
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Please find page 40 of the 2008 Waste Management annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.management operations allow us to provide customers with full management of their waste, including identifying
recycling opportunities, minimizing waste, and determining the most efficient means available for waste collection
and disposal.
We also develop, operate and promote projects for the beneficial use of landfill gas through our Waste
Management Renewable Energy Program. Landfill gas is produced naturally as waste decomposes in a landfill. The
methane component of the landfill gas is a readily available, renewable energy source that can be gathered and used
beneficially as an alternative to fossil fuel. The United States Environmental Protection Agency endorses landfill
gas as a renewable energy resource, in the same category as wind, solar and geothermal resources. At December 31,
2008, landfill gas beneficial use projects were producing commercial quantities of methane gas at 111 of our solid
waste landfills. At 80 of these landfills, the processed gas is delivered to electricity generators. The electricity is then
sold to public utilities, municipal utilities or power cooperatives. At 23 landfills, the gas is delivered by pipeline to
industrial customers as a direct substitute for fossil fuels in industrial processes. At eight landfills, the landfill gas is
processed to pipeline-quality natural gas and then sold to natural gas suppliers.
In addition, we rent and service portable restroom facilities to municipalities and commercial customers under
the name Port-O-Letยป, and provide street and parking lot sweeping services. We also have begun providing portable
self-storage, fluorescent lamp recycling and healthcare solutions services. From time to time, we are also contracted
to construct waste facilities on behalf of third parties.
Competition
The solid waste industry is very competitive. Competition comes from a number of publicly held solid waste
companies, private solid waste companies, large commercial and industrial companies handling their own waste
collection or disposal operations and public and private waste-to-energy companies. We also have competition from
municipalities and regional government authorities with respect to residential and commercial solid waste
collection and solid waste landfills. The municipalities and regional governmental authorities are often able to
offer lower direct charges to customers for the same service by subsidizing their costs through the use of tax
revenues and tax-exempt financing. Generally, however, municipalities do not provide significant commercial and
industrial collection or waste disposal.
We compete for disposal business on the basis of tipping fees, geographic location and quality of operations.
Our ability to obtain disposal business may be limited in areas where other companies own or operate their own
landfills, to which they will send their waste. We compete for collection accounts primarily on the basis of price and
quality of services. Operating costs, disposal costs and collection fees vary widely throughout the geographic areas
in which we operate. The prices that we charge are determined locally, and typically vary by the volume and weight,
type of waste collected, treatment requirements, risk of handling or disposal, frequency of collections, distance to
final disposal sites, the availability of airspace within the geographic region, labor costs and amount and type of
equipment furnished to the customer. We face intense competition based on pricing and quality of service. Our
customer service contracts limit our ability to implement certain price increases and pass through some of our
increased costs. From time to time, competitors may reduce the price of their services and accept lower margins in
an effort to expand or maintain market share or to successfully obtain competitively bid contracts.
Employees
At December 31, 2008, we had approximately 45,900 full-time employees, of which approximately 8,000
were employed in administrative and sales positions and the balance in operations. Approximately 11,000 of our
employees are covered by collective bargaining agreements.
Financial Assurance and Insurance Obligations
Financial Assurance
Municipal and governmental waste service contracts generally require contracting parties to demonstrate
financial responsibility for their obligations under the contract. Financial assurance is also a requirement for
obtaining or retaining disposal site or transfer station operating permits. Various forms of financial assurance are
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