USPS Rate Hike Remanded Again

POSTAL POOCH RATE HIKE REMANDED AGAIN 1Two weeks ago the Postal Regulatory Commission sent the Postal Service’s rate and classification proposals for Periodicals, Standard Mail, and Package Services back for corrections and amendment. Last week the revised proposed rates were resubmitted, and for a second time, the PRC remanded the rate case stating the Postal Service has not complied fully with applicable statutory and regulatory requirements.  Once the rate proposal is updated, the PRC will allow 7-days for public comment.  In a statement released last week, the PRC also noted; “The Postal Service states that the revised prices are scheduled to go into effect on April 26, 2015. … Pursuant to [statute], no rate shall take effect until 45 days after the Postal Service files a notice specifying that rate.”

Our good friend and postal expert, Leo Raymond of Epicomm wrote; “Though I’m not a lawyer, that last sentence seems to sink the Postal Service’s plans for an April 26 implementation date — at least for Periodicals, Standard Mail, and Package Services. (The proposed rates and classification changes for First-Class Mail, and competitive products were approved earlier, and there’s no legal reason why implementation of those rates would have to be delayed, though implementing them separately would be a major headache for mailing companies and their software providers.)”
If the USPS HQ can update and resubmit by Monday, and allowing for the seven days for comment, add another few days for the PRC to deliberate, and assuming it doesn’t remand the filing a third time, it’s reasonable to not expect an order on final rates in April. This means that it is possible that the 45-day clock won’t start until the date of the PRC order putting rate implementation (for the three classes involved at least) into mid-May.

We’ll keep you posted as things unfold.

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