Sen. Susan Collins Urges PRC to Reject USPS Rate Case Proposal

In a letter filed with the PRC as part of the docket considering the rate proposal, Senator Susan Collins, co-author of the 2006 Postal Accountability and Enhancement Act (PAEA), wrote the following :

As the author of the Postal Accountability and Enhancement Act of2006 (PAEA), which grants the Postal Service the limited authority to file an exigent rate case, I want to make the congressional intent regarding the provision completely unambiguous as the Postal Regulatory Commission considers the pending Postal Service request. Neither the language nor the legislative history of the PAEA authorizes the United States Postal Service to file an exigent rate case under the current circumstances.

During the 2007 rulemaking process for the exigent rate case authority, Senator Tom Carper and I sent a letter to the Postal Regulatory Commission (PRC) explaining that the exigent rate authority in the PAEA was intended to be used sparingly. Specifically, the letter explained that the “extraordinary or exceptional circumstances” required to initiate an exigent rate case under the PAEA exist only if “terrorist attacks, natural disasters, and other events … cause significant and substantial declines in mail volume or increases in operating costs that the Postal Service cannot reasonably be expected to adjust to in the normal course of business.”

This letter lays out the express intent of the legislation, along with supporting legislative history. I urge the PRC to rely on it as you consider the Postal Service’s request. As the author of the exigent rate authority, I can attest that the provision was not intended to be used under the current circumstances. Indeed, the Postal Service’s current financial condition is largely the result of its own failure to sufficiently update its business model to adapt to predictable and natural cyclical changes in the economy and mail usage. The Postal Service’s financial condition is not the result of “extraordinary or exceptional circumstances” required by law to initiate an exigent rate case. As such, I urge the PRC to dismiss the case.

The PRC’s approval of an exigent rate increase under these circumstances would be inconsistent with the law and would undermine the intent of PAEA to provide predictability and stability in postal pricing. In light of the express requirements of the statute and its supporting legislative history. I urge you to follow the letter of the law and reject the Postal Service’s exigent rate case proposal.

Full letter in PDF format.

9 thoughts on “Sen. Susan Collins Urges PRC to Reject USPS Rate Case Proposal

  1. The rate increase will drive more
    people to use the Internet. We need
    to start laying people off. That includes
    management and craft. Those that are
    still working need to take big cuts
    in pay and benefits. We need to keep
    Saturday delivery and generate more

  2. Sen. Collins doesn’t call overfunding retiree health benefits by billions an exigent situation. I say go ahead and deny the rate increase and let Congress decide how to bail us out.

  3. As an insider,I am aware that any increase granted by Congress will just be wasted by upper postal mgmt by careless decisions they’ve made over my 20 yrs.of tenure such as purchasing flat sorting machines and dps machines(multi-million dollar)pieces of equipment.whY? If volume is down due to the internet,etc. why does the PO need this equipment?DPS MACHINES now sit disarmed in severals offices,disarmed as we speak, millions wasted. OTHER MONEY WASTING practices,changing delivery routes every 6 mos.,turning foot routes into routes that must use a vehicle, how does that save money? U must now pay for fuel, maintain the vehicle,risks vehicular accidents,etc.POSTMASTER POTTER NEEDS TO SAVE THE POSTAL SERVICE BY RETIRING OR RESIGNING IF HE DOESN’T HAVE ENOUGH TIME IN AND THE NALC NEEDS TO STOP AGREEING TO EVERYTHING THIS PO REQUESTS

  4. Sue is RIGHT ON POTTER and his clowns and cronies are the reason the PO is broke WAY TOO MUCH EAS DEAD WIEGHT plus Morons running the show. GET rid of Bonuses get rid of excessive discounts like 11.4 cents to process a ecr letter. Lots of business would love to raise prices to keep up with CPI. IF Potter cant run a business with CPI related prices increases plus having a monopoly he needs to be fired along with his 40 or so Vice Presidents. The PO is also wasting MILLIONS on SOX compliance PAYING big money for four sets of auditers toi audit BMEU we get the OIG then comes the INSPECTORS then comes HQ finance then comes in INDEPENDENT AUDITORS THE PO flies these guys in to make sure POSTAGE STATEMENTS are filled out properly and HIGHLIGHTED with a marker any moron can do that why fly in big money auditors. SUE IS RIGHT POTTER AND HIS CLOWNS are to blame!

  5. The Senator seems to have turned a blind eye to the cause of the Postal Services financial problem; and that is the 2006 PAEA bill that she forced the Postal Service to pay which has directly brought on this financial crisis. Without this payment, that is mandated on no other federal agency but the Postal Service, recent audits have shown the Postal Service would have been profitable in both 2008 and 2009.
    The financial problems would be put to bed if the Senator would admit her mistake and remove the $5.5 billion payment that the Postal Service has shouldered unfairly since 2006.
    Why, does no other federal agency; or for that matter no other private business or corporation not have the same payment as the Postal Service? Because it is untenable and aother republican plot to have the Postal Service privatized and sold off to big business to be destroyed.

  6. This lady has to be kidding! The only reason the post office has to raise rates is do to the postal reform act that she co-authored! thats the only reason the P.O. is losing money! Tell the truth you Parasite!

  7. Senator Collins would like us to believe she has a crystal ball…like she or anyone else KNEW the economy was going straight into the toilet in 2008. I will say being in CONGRESS Senator Collins certainly had a better IDEA of the economy TANKING than the Postal Service OR it’s hard working employees. Senator Collins, the Pre-funded Healthcare for Retirees needs to be repealed OR I expect to see every other Government Agency paying this and while you are at it, MANDATE all private companies to do the same!

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