PRC Rejects USPS a Second Time

April 26 Implementation Now Impossible

The Postal Regulatory Commission today remanded the new rates submitted by the USPS just last Thursday, March 12. The April 26, 2015 implementation planned by the Postal Service will now not be met because we are now inside the 45 days notice required by law.

The PRC news release:


PRC Again Remands Price Adjustments Back To USPS: Standard Mail, Periodicals, and Package Services Products Affected

Washington, DC – For the second time in this case, the Postal Regulatory Commission returned a Postal Service proposal to adjust rates for Standard Mail, Periodicals, and Package Services.

In Order No. 2378 issued on March 6, 2015, the Commission remanded the rates for these classes of mail so that the Postal Service could provide additional information and justifications, correct errors, and fulfill applicable legal requirements. The Commission held that the Postal Service needed to address several deficiencies, including unequal Standard Mail nonprofit and commercial discounts, improperly justified Standard Mail worksharing discounts with passthroughs above 100 percent, and improperly calculated billing determinant adjustments for all three classes.

In the order issued today, the Commission finds that the Postal Service has not adequately addressed the concerns described in Order No. 2378 and has failed to demonstrate that the proposed rates comply with applicable statutory and regulatory requirements. As a result, the Commission again returns the proposed rates and directs the Postal Service to provide information demonstrating that they conform to the law.

Once the Postal Service files a response to the Commission’s order, the public will have 7 days from the date of that filing to comment on the revised proposal.

The Commission’s complete analysis of the Postal Service’s revised price adjustments for Standard Mail, Periodicals, and Package Services can be found in Order No. 2398, under Docket No. R2015-4.