USPS Moving Forward With Exigent Pricing Relief Case

USPS Statement on Proceeding with Exigent Pricing Relief

As a result of the Postal Regulatory Commission’s (PRC) Oct. 31 order denying a motion by the Postal Service to “stay” its request for exigent price relief until Dec. 15, 2011, the Postal Service today informed the Commission that it will continue to proceed with the case. If legislation passes that promotes the Postal Service’s financial stability, the Postal Service will review its position any may choose to withdraw the case if warranted.

The Postal Act of 2006 capped price increases for Mailing Services products and services at the rate of inflation as measured by the Consumer Price Index (CPI). However, the law does allow for increases beyond the CPI cap due to exceptional or extraordinary circumstances. That was the case in July 2010 when the Postal Service filed for an increase above CPI, citing the exceptional circumstances of significant mail volume losses. The Postal Service financial crisis has worsened since then.

While legislation continues to be introduced to address critical Postal Service issues, the uncertainty over Congressional action leaves the Postal Service little choice but to proceed with the case for now.
The Postal Service announced new Mailing Services prices last month and will announce new Shipping Services prices later this month. The new pricing will be effective Jan. 22, 2012.

source: USPS

6 thoughts on “USPS Moving Forward With Exigent Pricing Relief Case

  1. Tying postage increases to the CPI really doesn’t make much sense. The Postal Service doesn’t purchase much in the way of groceries or other consumer goods that have much of an effect on expenses. The big exception of course is FUEL PRICES, which have risen at a much higher rate than the CPI.

  2. Jeff has this right…we’re so far in the hole…the stamp increase only will bring in 900 million.Its all about management not wanting to be told what to do…a major problem throughout the postal system.

  3. i think lu has this wrong. if memory serves me, the prc is an advisory commission, than can issue an opinion, but cannot order the post office to do anything.

  4. what a bunch of crap. Again Postal MANAGEMENT going above and beyond the Law no matter who it affects. Again Postal Management thinks they are above the
    law. Boy i wish i could ignore the law!!!!!!

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