USPS Response to PRC with new Standard Mail Rates

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USPS Response PDF link
From the response:

“In response to Order No. 1541, the Postal Service is filing revised prices for Standard Mail Flats with this pleading in Attachment A. These revised prices reflect an average price increase of 2.617 for the Flats product, which is appreciably greater than the revised average price increase for the Standard Mail class (2.569 percent) and the CPI-U price cap (2.570 percent). No other Standard Mail prices were changed as a result of the Standard Mail Flats revisions.”

“Although the Postal Service is complying with the Commission’s directive by proposing an above-average price increase for Standard Mail Flats, the Postal Service reiterates its belief that the Commission has overstepped its authority in Order No. 1541. As accurately stated in Commissioner Taub’s dissent,14 the intent of the Congress in passing the PAEA was to afford the Postal Service true pricing flexibility, unencumbered by the Commission’s own vestigial views on pricing strategy. The Commission’s Order here ignores that Congressional intent. Under the PAEA, the Postal Service is primarily responsible for setting prices. Here, the Postal Service
proposed prices which it believed reflected an appropriate balance between the need to improve cost coverage for Standard Mail Flats pursuant to the Commission’s prior Order, and the need for the Postal Service to increase contribution in order to remain
economically viable. The Postal Service fully complied with the Commission’s directives concerning the pricing of Standard Mail Flats, and its statutory obligations, and the Commission therefore exceeded its authority when it declined to fully approve the price
proposal of the Postal Service.”

 

Written by Lisa.Bowes

November 27th, 2012 at 2:51 pm

Posted in USPS

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