PRC Gives Mailers a Lump of Coal This Season

The US Postal Regulatory Commission (PRC) granted the United States Postal Service’s request for an exigent postal increase late today – on December 24th,  Christmas Eve.

In its majority decision, the Commission found that the Postal Service experienced financial harm as a result of the Great Recession and is legally entitled to implement price increases in excess of the CPI cap for less than two years, according to the announcement from the PRC this afternoon.   “The Commission denied the Postal Service’s request to make the increases permanent. It found allowing the increases to remain in effect indefinitely would be inconsistent with fundamental postal policies underlying the price cap,” the PRC said.

“They are the Grinch this Christmas,” replied Jerry Cerasale, DMA’s senior vice president of government affairs.  “At least, they state that this outrageous postage increase will be phased out. ”

Sadly, however, the Commission does not set a date for the phase out.  The Commission says the USPS should recover the losses due to the Great Recession in less than two years, but will await quarterly volume and financial results from USPS to determine any phase out date. “That is a cop out,” Jerry said.  “Mailers have received a lump of coal for Christmas and will continue to receive more lumps for at least the next two Christmases.

“DMA is concerned that the phase out will never come.  It was time for the PRC to stand up and it failed.  It is a sad day for mailers,” he said.

DMA will alert members on specific actions required for compliance early in the New Year.

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