Exigent Rate Case – Early USPS Increase Misfire?

The Alliance of Nonprofit Mailers comments on the third anniversary of the last failed USPS exigent rate case of 2010-11.  The current rumor is the USPS is considering filing for a rate increase as soon as July with a September/October implementation. Again, this is a rumor at the moment.

To file an exigent change requires the USPS to show it meets the exception that allows the Postal Regulatory Commission (PRC) to approve above- Consumer Price Index rate increases when reasonable, equitable and necessary for the USPS to continue providing necessary postal services after suffering losses that are “due to . . . extraordinary or exceptional circumstances.”

Loss of volume alone is not sufficient to ask for the exception. The PRC agreed with this and other causal reasons when denying the last request.

If an exigent case is filed, all mailers should be concerned about the apportioned costs associated with their mail. Periodicals and Standard mail stand to see the highest increases in relation to their calculated contribution to cost. If the USPS believes periodicals underpay by 15%+, the proposed increases will target the least efficient segments of Periodicals mail. Same with Standard segments considered to be under-paying the allocated share.

We will keep readers informed of developments as they occur. In all cases, highlighting rumor from actual deliberations maintains a professional industry dialogue.

Kindly,
CREEL Communications Group

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