We're coming down to the wire on the rate increases from the latest postal rate case. The Postal Rate Commission handed down their recommendations for rates today. See DMNews for the announcement. The total requested rate increase is not as high as some feared; however the actual burden of cost increase is not uniform. The increase can vary by class of mail, size of mail piece, weight of mailpiece, and method of distribution. Quick Printing Magazine has provided several useful articles to help understand the current rate case, particular the changes regarding shape and weight.

The next step is for the USPS to accept the rates as handed down by the PRC, or appeal those with which it disagrees. Then the litigation and negotiation begins.

The Postal Accountability and Enhancement Act - passed in December 2006 - will streamline the rate making process in the future and tie increases to the Consumer Price Index. Within the next 18 months, the USPS will be able to request one more rate increase under the old rules so we are likely to see one more "go-round" under the old system. For those who want to read law, you can find the text here.