PRC Remands USPS Rate Increase

Citing numerous errors, incomplete information, and failures to comply with the law, the Postal Regulatory Commission (PRC) today remanded the current CPI-cap rate case back to the Postal Service for Periodicals, Standard Mail and Package Services. The full order can be read here. The PRC gave the USPS until March 12 to file an amended rate case so that the April 26 implementation date can be retained. The USPS might, however, request additional time and delay the April 26 implementation.

Here is an excerpt from the order:

In recognition of the Postal Service’s pricing authority, the Commission remands all Standard Mail, Periodicals, and Package Services rates to allow the Postal Service to modify its planned rates to comply with the applicable legal standards. Pursuant to 39 C.F.R. § 3010.11(f), the Postal Service shall file its amended notice of rate adjustment and describe how the modifications to the planned Standard Mail, Periodicals, and Package Services rates comply with applicable legal requirements. An opportunity for comments from interested parties will be provided. See 39 C.F.R. § 3010.11(g). The amended notice is due no later than March 12, 2015, so that new rates that comply with applicable legal requirements can be reviewed and implemented, as planned, on April 26, 2015. See 39 C.F.R. § 3010.11(i).

The PRC order also made specific reference to discrimination against nonprofits:

In section II of this Order, the Commission determines that the unequal commercial and nonprofit discounts in the Standard Mail class violate the requirement
that disparities between commercial and nonprofit discounts must be justified. The Postal Service did not provide a justification for the proposed unequal nonprofit and commercial drop ship discounts. The Commission also finds that the Postal Service failed to adequately justify the proposed disparity for nonprofit and commercial presort discounts.

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