Category: Alerts

February 6, 2015 USPS Quarter One Fiscal Year 2015 Results Controllable Net Income: $1.124 Billion Postal Cash Nearly Doubles to $7 Billion Revenue up 4.3% Standard Mail Volume up 3.5% Package Volume up 12.8% First Class Volume Down 1.1% You probably will read that the Postal Service reported a $754 million loss for the first…

January 28, 2015 Today, the Alliance of Nonprofit Mailers asked the Postal Regulatory Commission (PRC) to pose questions to the United States Postal Service (USPS) regarding “several apparent anomalies in the prices proposed by the Postal Service for Nonprofit Standard Mail.” One set of questions is related to the law that requires the average revenue…

The 2006 legislation requires the Commission to issue a report in 2017 on whether the system of rate regulation adopted under the law should be modified or replaced. The regulatory review is likely to be highly controversial. ANM and other mailers believe that the scope of the Commission’s authority is limited to filling the gaps…

Legislation passed by Congress in 2006 normally limits rate increases on captive mail products to the rate of inflation as measured by the Consumer Price Index (“CPI”). This restriction, commonly known as the CPI cap, is the primary safeguard for captive mailers from abuse of the Postal Service’s pricing power. The law has an exception-informally…

The 2006 legislation allows the Postal Service to increase rates on captive mail products as needed to recover inflation as measured by the CPI. The Postal Service filed a request for such a rate increase in September 2013. While most rate adjustments of this kind are largely unopposed, this one was controversial.