Tag Archives: Postal Rate Commission

The Bureau – 1st Qtr 2014

Be on the look out for our award winning quarterly newsletter, The Bureau, mailing this week.

Our first newsletter of 2014 includes a handy postage reference guide and detailed comparison charts showing you the postage differentials by rates.

Our President, Ron Royall, gives a brief review of happenings from 2013 and shares what is expected for the coming year.

We’ve also included highlights from our recent AVA Digital Award for best video.

If you are not on our mailing list but would like to be added, please feel free to contact us by calling 713-528-5568 or click here to add your information.

Postal Rate Hike Approved

The price of a Forever stamp and other mail will rise by 3 cents on January 26, 2014. This represents the largest rate hike in 11 years. The increase will be in effect for two years, giving the USPS a temporary shot of extra revenue. “Allowing the rates to remain in effect indefinitely would result in over recovery of the financial impact of the Great Recession on the Postal Service,” wrote the commission.

The PRC (Postal Rate Commission) approved the exigent increase by a 2 to 1 vote, resulting in a 6% overall jump in postal rates. This is the first extra revenue for the USPS since the 2006 law limited rate increases to the rate of inflation.

In addition to First-Class mail, the higher rates will apply to magazines, newspapers, advertising mail and bills – which together account for most of the 158 billion pieces of mail delivered every year.

Exigent Case Basics

A review of the Exigent Rate Case from our partner, Thomas Glassman of Wilen Direct.

2012-Tom Glassman

Mr. Tom Glassman of Wilen Direct

In general, the Postal Rate Commission granted the USPS request for additional revenue as a result of recession related losses. Even though the mailing industry argued that the losses were from diversion to other marketing methods. As a result, the rates contained in its exigent price filing would be allowed to take effect on January 26th. However, the PRC did not agree that the rate increase should be permanent and so directed that the rates should be implemented as a “surcharge”. The USPS was further directed to submit a plan for the eventual removal of that surcharge. I believe that you will see them in place for a long time.