USPS Ordered to Reduce $7.5M SoCal Edison Fine

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…To “issue a revenue deficiency for the entirety of plaintiff’s discounted-workshare rate for 18 months is so disproportionate that it can hardly qualify as reasoned decision-making,” Boasberg said. The postal service argued that the court cannot remand the agency’s final decision back to the service’s Pricing & Classification Service Center – where Edison originally appealed the fine – because the center is not allowed to establish an unpublished rate surcharge without review by the Postal Regulatory Commission.

“This is too cute by half: not only does it mischaracterize the appropriate remedy – a reconsideration of the amount of the revenue deficiency – but it also mischaracterizes the PCSC’s capacity to grant this relief as the dedicated appeals board that can reassess the revenue-deficiency calculation,” Boasberg said.

The judge remanded the case to the PCSC, noting that he is confident that it will be able to “correctly determine a reasoned and reduced sum for the proper revenue-violation deficiency assessment.”

Source: Courthouse News Service

Written by Lisa.Bowes

September 30th, 2015 at 7:01 pm

Posted in USPS

One Response to 'USPS Ordered to Reduce $7.5M SoCal Edison Fine'

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  1. Lisa, your 2014 critique of this fine and the trend toward “penalties as a revenue stream” is worth a re-read: http://postalaffairsblog.intelisent.com/dead-tree-edition-subtle-violations-of-postal-regulations-can-cost-mailers-millions/.

    D. Eadward Tree

    30 Sep 15 at 10:54 pm

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