A Postal Rate Case Update
will promptly communicate the news to you.
If the Governors tell the PRC to revise and resubmit its recommendations, I ask you to continue working with us to let the PRC know that several of its current proposals are unacceptable to the mailing community. However, if the Governors do accept the PRC’s recommendations, I assure you that we will use every possible means to fight a harmful decision.
What About Postal Reform?
I am sure many of you are also asking, “why is this happening?” After all, with our recent victory on postal reform legislation, it seemed that the nightmares of arbitrary, unexpected, and unjustifiable postal rate increases would be behind us.
Unfortunately, as we have stressed since December when the President signed the new postal reform law, the postal rate case (filed on May 3, 2006) was already well underway, and as required by law, proceeded under the old ratesetting rules rather than the new law that we fought so hard to attain, but which will not go into effect until June 2008.
Certainly, we had hoped that as the PRC adopted its new name and structure, it would also embrace the spirit of progress and predictability that will guide future ratesetting processes. Unfortunately, the PRC seems to be clinging instead to backward-looking ideas. While we were not entirely pleased with the rate increases the USPS requested last May, we expected those proposed rates to be relatively consistent with the PRC recommendations.
In the days after the PRC released its recommendations on February 26, we learned that the PRC’s public statements were masking serious flaws in the details of its recommendations.
Also, we began hearing from members as you had a chance to analyze how the PRC’s complex proposal would affect your specific operations. Although the impact would vary for each mailer, it quickly became clear that the rate increases recommended for flat-shaped mail were going to be far higher and more damaging than any of us had expected.