Steve Hutkins at Save the Post Office
Continued discussions between the mailers who are faced with higher rates, PMG Louis DeJoy, and Congress. The mailers are in court as we read Steve’s excellent review of what is taking place.
Also, PMG DeJoy has plans of increased prices for mailers also includes slower service and higher prices for First Class mail. The February 12th edition of the Washington Post exposed the PMG plans to increase prices for First Class Mail and slower deliveries of First Class Mail going from 2 days to 3 to five days. More information can be found at WaPo or truthout.
Earlier this week a group of mailers’ associations continued their effort to convince the DC Circuit Court to stop the Postal Service from increasing rates under the new authority it was recently granted by the Postal Regulatory Commission.
The Postmaster General has told the mailers that another rate increase, based on the new authority, is “imminent.” The exact size of the increase has not yet been revealed, but the Postal Service’s calculations indicate it could be as large as 5.56 percent. Market Dominant revenues in 2020 were about $42 billion, so a full increase could mean $2.3 billion in additional costs for mailers.
In December, the Mailers filed appeals on the PRC’s order approving the new system in the DC Circuit. On January 27, 2021, they proceeded to file a request for a stay seeking to prevent the order from being implemented while the court heard the appeal. On February 8, the Commission filed its brief opposing the request for a stay, and the Postal Service filed its own opposition as well. On Tuesday of this week (February 16), the Mailers filed their reply. (For more background about the case, see this previous post and this one too.)