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Postal Regulatory Commission Announces Decision in CPI Postal Rate Case

Monday, November 25, 2013

Press release from the issuing company

A few days earlier than expected, yesterday, November 21, the Postal Regulatory Commission (PRC) issued a press release regarding the Consumer Price Index (CPI) postal rate increase.

"The Commission's primary responsibility is to assure predictable and stable rates for mailers bound by the statutory price cap. While we encourage the Postal Service to expand its capacity to track and measure the performance of mail services, this cannot be accomplished in a manner that effectively raises rates by 4.1% and 4.9% for First Class and Standard Mail," said Chairman Ruth Y. Goldway.

The Commission notes ". . . the simultaneous implementation of the Full Service IMb requirements, together with the planned price adjustments, would cause rates to increase by more than the maximum rate adjustment calculated in accordance with 39 C.F.R. § 3010.20."

The PRC also stated that the Postal Service must resolve unequal commercial and nonprofit discounts for Standard Mail® 5-digit automation flats noting that "the proposed rates violate the requirement that disparities between commercial and nonprofit discounts must be justified by a statutory exception."

The USPS® is expected to notify the PRC by November 27 whether they plan to eliminate the Intelligent Mail barcode® (IMb™) Full Service requirement or change the postal rates.

The exigency portion of the postal rate increase, the request by the Postal Service™ to increase postage rates beyond the Consumer Price Index price cap, is on a separate schedule and was not included in this press release. Additionally, the decision is independent from the Intelligent Mail package barcode (IMpb) requirement for most parcels beginning in January.

 

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