Postal Rate Commission Denies January 2011 USPS Rate Increase
In 2006 Congress reformed the process for changing USPS postal rates. The centerpiece of this reform is a price cap limiting increases to the rate of inflation which ensures rate stability and predictability for the nation’s mail users, and provides incentives for the Postal Service to reduce costs and operate efficiently. There is an exception to the price cap known as the “exigent rate” provision which requires an unpredictable event to have occurred that caused revenue deficiencies. In July 2010, the Postal Service filed the first-ever exigent rate request. The Postal Service asked the Postal Rate Commission to find that it needed to raise rates above the price caps for all its market dominant products, including First-Class, Periodicals, and Standard (advertising) Mail. It sought to raise prices by an average of 5.6 percent on January 2, 2011.
The Postal Rate Commission announced today that it unanimously denied the USPS rate increase request based upon the USPS claims that decreased mail volumes was a result of the recession and was an unpredictable event. The PRC ruled that decreased mail volumes were a result of increased electronic communication that should have been included in USPS budget strategies. At this time the USPS has not announced what, if any, rate adjustments they will make in 2011.
For more information on current rates and how to take advantage of all available postal savings, please contact Mailing Services at 335-2104 or your University Publishing coordinator at 335-3518.