Common use of Pass-Through Costs Clause in Contracts

Pass-Through Costs. Pass through costs are costs included in rates charged to customers, however these costs do not have an associated profit component. Pass through costs are generally transactional in nature and often are thought of as costs not associated with any significant effort performed by the hauler. The following pass through costs do not earn a profit, but are included in determining the total revenue requirement used to establish solid waste rates:  Interest expense  Franchise fees.

Pass-Through Costs. Pass through costs are costs included in rates charged to customers, however these costs do not have an associated profit component. Pass through costs are generally transactional in nature and often are thought of as costs not associated with any significant effort performed by the hauler. The following pass through costs do not earn a profit, but are included in determining the total revenue requirement used to establish solid waste rates:  ◼ Interest expense  ◼ Franchise fees.