Question-and-Answer Session
Operator
(Operator Instructions.) Our first question comes from Scott Levine - J.P. Morgan.
Scott Levin - J.P. Morgan
A question with regard to diesel fuel there specifically on pricing and obviously it's been going up pretty dramatically. Do you see any change either (a) in the comprehensiveness of the recovery mechanism - it doesn't sound like there is any but (b) secondly, can we anticipate any knock-on affect in terms of the strength in core pricing or any other aspect of the economy that's impacting your businesses given the strength in the move up here?
John W. Casella
I think clearly we've looked at the Index and how we're processing the surcharge on a quarterly basis in an effort to close any disconnects that we have. So one, we continue to look at that to try to improve our capture of the increased costs relative to the surcharge that we have in place. I think the other overriding issue that we really haven't talked about is we have a lot of activity going on right now, Scott, with hybrids. We've taken delivery on our first hybrid truck with International; we expect to be taking delivery on several different technologies over the next few months. It's still a pilot program but these trucks from a fuel consumption standpoint average anywhere from 30% to 40% savings from a fuel consumption standpoint as well as having a significant positive impact in terms of the reduction of greenhouse gasses. So I think you'll see lower capital expenditures on trucks a bit to try and take advantage of that hybrid technology as it enters into the marketplace. We expect to begin to see more activity on the hybrid side over the course of 09 and obviously I think more impacting 10 but certainly beginning to see those programs begin to be implemented in 09.
Scott Levin - J.P. Morgan
Okay. And in terms of the impact of fuel efficiency on the business end of this year into 2010 so when we see that, what can you say in terms of magnitude?
John W. Casella
I think it's fair to say that it's probably more a 2010 issue in terms of having a material impact. I think the real issue for 09 is establishing what are the technologies that we're going to use, what's the cost of those technologies, and really having an understanding of what the benefit of that is going to be. I think that's probably more a 2010 issue in terms of having potential significant impact in terms of reduction of costs.
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