220 CMR, § 272.05

Current through Register 1536, December 6, 2024

Section 272.05 - Fuel Price Surcharge

(1) When the average cost of diesel fuel in New England exceeds $3.196 per gallon, the Department shall authorize a fuel surcharge under 220 CMR 272.00. The Department shall calculate the fuel surcharge as a factor that may be multiplied by the sum of those applicable rates and charges relating to Fuel-burning Operations of the Service Vehicles.

(2) The Department shall obtain the retail on-highway price per gallon of diesel fuel for New England as reported by the Energy Information Administration of the U.S. Department of Energy on its website, www.eia.doe.gov, for the first three Mondays of each month (Retail Prices).

(3) The Department shall calculate the average cost of diesel fuel by taking the average of the Retail Prices as determined in 220 CMR 272.05 (Average Cost).

(4) To determine the appropriate fuel surcharge factor, the Department shall divide the Average Cost by $3.196 to produce a multiplication factor (Fuel Multiplication Factor or FMF). The Fuel Multiplication Factor is then multiplied by $8.92, the embedded cost of fuel in the basic tow rate, to arrive at the current fuel cost per basic tow (Current Fuel Cost). The Current Fuel Cost is then divided by the fuel-adjusted basic tow revenue requirement, which is the sum of the $132.00 basic tow rate, plus the product of the Fuel Multiplication Factor multiplied by $8.92, minus the embedded fuel cost of $8.92 (Fuel-adjusted Revenue Requirement). Dividing the Current Fuel Cost by the Fuel-adjusted Revenue Requirement and subtracting the current embedded 6.8 % yields a fuel surcharge factor (Fuel Surcharge Factor) that may be applied in the next month to the sum of the applicable rates and charges relating to Fuel-burning Operations of the Service Vehicles. This formula is mathematically represented as: (($8.92 x FMF) ÷ ($132.00 + (($8.92 x FMF) - $8.92))) - .068 = Fuel Surcharge Factor.

(5) On the fourth Monday of each month (or the next business day if this falls on a holiday) preceding a month in which the Department will authorize a surcharge, the Transportation Oversight Division will issue an Administrative Order setting forth the amount of the Fuel Surcharge Factor effective for the following calendar month by:

(a) posting on the Department's website the Fuel Surcharge Factor and the month and year for which it applies, where it will remain at least until the expiration of the month to which it relates; and

(b) recording a message accessible by telephone stating the Fuel Surcharge Factor and the month and year for which it applies, where it will remain at least until the expiration of the month to which it relates.

(6) To apply a fuel surcharge, the towing slip shall record the following:

(a) each applicable rate and charge relating to Fuel-burning Operations of the Service Vehicles and a sum total;

(b) the amount of the authorized Fuel Surcharge Factor; and

(c) the amount of the applicable surcharge (the product of multiplying the sum total from 220 CMR 272.05(6)(a) by 220 CMR 272.05(6)(b)).

(7) The authorization of the Fuel Surcharge Factor shall expire on the last day of the calendar month for which it is authorized.