PRC busts the price cap, lawsuits sure to follow
Fact: Contrary to what President Trump claims, the Postal Service can’t solve its financial problems by raising “the price of a package by approximately four times.”
Steve Hutkins at Save The Post Office discusses the financial issues facing the United States Postal Service and why the Postal Regulatory Commission new plans to increase prices may be problematic. By no means is this a new topic. It has been brought up repeatedly by members of Congress and this administration as well as earlier administrations. The USPS was not meant to be profitable and its present situation is the result of the Postal Accountability and Enhancement Act.
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The Postal Regulatory Commission has spent the past four years working on a revision of the rate system for Market Dominant products. Yesterday the Commission issued its final rule on the changes. The order is here. The PRC’s press release is here. The media kit contains a useful FAQ.
The process of reviewing the rate system involved the Commission, the Postal Service, and an extensive list of stakeholders and commenters. And even though it’s been going on since December 2016, it’s not over yet, not by a long shot. Given that many of the mailers have fought the changes that were finally approved, it’s widely expected that some stakeholders will appeal the PRC’s order to the D.C. Circuit.