The Postal Service opens Round 3 in the fight over the exigent rate increase

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Yesterday the Postal Service filed a brief with the U.S. Court of Appeals, District of Columbia, arguing that the Postal Regulatory Commission was wrong in its most recent ruling on the exigent rate increase. The Postal Service wants the case remanded to the Commission for further review so that it can renew its arguments for an extension of the 4.3 … Read More

Get it while you can: The PRC to rule on exigent rate case – How long will the surcharge go on?

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UPDATE: A few hours after this post was published, the Postal Regulatory Commission released its order on the exigent increase.   As predicted in the post, the Commission determined that the Postal Service was entitled to another $1.191 billion in additional contribution as an exigent rate adjustment, which translates to $1.396 billion in revenue.   That means the surcharge will … Read More

Next round in the exigent case: USPS seeks five-year extension of surcharge; the mailers say enough is enough

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Today was the deadline for submitting initial comments to the Postal Regulatory Commission concerning the exigent rate increase after the case was remanded by the US Court of Appeals in its June 5th ruling.  Judging by the comments, this case is far from being settled.  The Postal Service is looking to extend the surcharge for almost five years, while the mailers want … Read More

USPS, APWU, and mailers respond to the court’s ruling on the exigent case

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This week the Postal Service, APWU, and several associations of mailers filed briefs with the Postal Regulatory Commission responding to the DC Court of Appeals’ June 5th ruling on the case of the exigent rate increase. On Monday the Postal Service filed a motion asking the Commission to suspend the removal of the exigent surcharge, which is due to occur sometime in August. … Read More

Court rules on exigent rate increase: Not forever, but for how long?

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This week the DC Court of Appeals issued its decision on the exigent rate case.  The court affirmed the most significant element of the ruling by the Postal Regulatory Commission back in late 2013, namely, that the increase could not go on forever. But the court remanded another aspect of the Commission’s order, and it is now almost certain that … Read More

Postal rates going up again — and maybe down too

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On Thursday the Postal Service filed a notice with the Postal Regulatory Commission saying it intends to raise postal rates on April 26, 2015, under its price cap authority. The USPS press release says that the price hike will generate $400 million in contribution during FY 2015 (there will be only five months left in the fiscal year) and $900 … Read More

How’s the exigent rate increase doing?

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Earlier this week, the Postal Service released its preliminary financial report for fiscal year 2014.  Now may be a good time to evaluate the impacts of the exigent rate increase that went into effect on January 26, 2014. Back in September 2013, when the Postal Service presented testimony to the Postal Regulatory Commission about the proposed increase, one of the main … Read More

PRC grants rate increase but for less than two years

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The Postal Regulatory Commission has approved the Postal Service’s request for an exigent rate increase of 4.3 percent, but only for about 18 months to two years, however long it takes to recoup $2.8 billion in lost profits.  In the short term, the increase will help deal with the low liquidity problem, but it will not fully address the long-term … Read More

The PRC decides the rate case: What’s in Santa’s bag for the mailers?

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On Monday or Tuesday of this week, the Postal Regulatory Commission will issue an order on the Postal Service’s renewed request for an exigent rate increase.  If it’s granted in full, postal rates will go up about 4.3 percent.  That’s on top of the 1.7 percent increase already granted under the CPI cap, so the total increase would be about … Read More

Sources of change: The Postal Service breaks down the mail volumes for the PRC

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The news media are busy this weekend reporting on the Postal Service’s financial report for fiscal year 2013, which shows a $5 billion loss.  If Congress weren't requiring the Postal Service to pay $5.5 billion into the retiree health benefits fund, the Postal Service would have made a profit of over a half billion dollars.  Not that this could stop … Read More

How would an exigent rate increase impact mail volumes and revenues?

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The Postal Service’s request to the Postal Regulatory Commission for an exigent rate increase is on hold right now due to the government shutdown.  The Request, along with testimony from three Postal Service witnesses and a slew of tables, was submitted on September 26.  Before the shutdown happened, the Chairman had filed a couple of requests for additional information, but … Read More