RSG
#Hello, <UNK>.
Yes, I think what we're saying is that we are lifting guidance because of the favorability that we're seeing right now in our solid waste business.
Where ---+ what I called out before is a 60 basis point increase in margin year-over-year due to the solid waste business.
Keep in mind, also, that if you look at, kind of, our increase in guidance overall.
A good portion of that increase is really due to the solid waste business and that which is primarily yield.
Yes, and it's being offset by a couple of things we called out.
We called out the commodities and we called out some of the headwind from the E&P.
But, you're right.
The core business is operating very well and as we turn around these two very small parts of our business, although, obviously volatile parts of our business, that'll all ---+ that'll call ---+ come in behind it, so.
You're on the right track.
Business is doing really well, <UNK>.
Another way of saying it, right, is if recycling hadn't cratered on us, and E&P hadn't dried up, right.
Our margin's wouldn't have been up 60 basis points.
Right.
So, that's it.
Right.
So, we've said that approximately, what, $2.4 billion of our business is that ---+ again, that 30%, right.
So, it is restricted to some type of index.
And, we've been talking about lately, it's about $800 million of that piece, is the smaller municipal contract.
Generally, residential only.
Call it a five-year contract.
So, that $800 million that's the first piece we've been working on to move to a new index.
We've now moved $150 million of that business ---+ $150 million of the $800 million, to a new index.
That's confirmed.
I'm still working on the balance.
As you would expect, logically, when we tried to change how this occurs to ---+ with our customers and within the market, we would start with smaller contracts.
And, having good success.
The remaining $1.7 billion is larger contracts and franchise agreements that tend to run a lot longer than five years and also include, oftentimes, commercial small container, large container business.
So, we're up to $150 million out of the targeted $800 million.
We're progressing every quarter.
We don't know how far it will go.
We're certainly making strong arguments, and frankly, successful arguments for it, and we'll continue to do it.
Again, the overarching issue here is in these kind of public-private partnerships, they've got be mutually beneficial.
It's unrealistic for our municipal partners to expect us to settle for an index that doesn't adequately cover our inflation.
So, we've got to cover our inflation, net of productivity, on a consistent basis.
That's reasonable.
It's fair.
And, that's one of the reasons we're getting it done.
The fact that there is this water sewer trash index, something we can point to that's been in use now, for what, 15 years or whatever, is helping.
And, so, it's too early to tell how long it's going to take and how far it's going to go.
I can tell you this, we're not going to stop pushing.
And, that's ---+ we'll update you every quarter.
As we go through time.
But, it's certainly helping and we'll certainly show some benefit into next year
Yes, so it's fair.
It's equitable.
And, in some cases, it's helpful for them.
Especially, those municipalities that have their own sewer and water infrastructure, that has been struggling to keep up with the pace of inflation.
Frankly, we weren't the only ones that didn't know that this sewer/water, water/sewer/trash index existed.
So, we're shedding a lot of light on that.
And, so again, progress continues and we ---+ we're hopeful and confident that we'll have another positive update for you as we go through the year.
Well thank you, Gabrielle.
I would like to thank all Republic employees for their hard work, their commitment, and most of all, dedication to operational excellence in creating the Republic way.
Thank you for spending time with us today, everyone.
Have a good evening.
