This summer was chock full of U.S. Postal Service controversy - overpayments made to the Civil Service Retirement System, droop test standards, and murmurs of a five day delivery schedule. None, however, received as much attention as the U.S. Postal Service filing an Exigent Rate Case on July 6 with the Postal Regulatory Commission (PRC). Many said the increase, estimated at 5.6%, violated the cost controls Congress put in place to protect consumers and organizations.

On September 30, the Postal Regulatory Commission made its final ruling, stating “From the outset we devoted ourselves to a careful study of the law. The Commission and our staff worked to determine the law’s intent, to clearly understand its provisions and to define our responsibilities in order to apply it fairly. Notwithstanding the complexity and difficulty of the issues before us, the Commissioners’ deliberations have been collegial. The decision we have come to is a consensus and is unanimous. We concluded we must deny the request.”

“I applaud the PRC decision to deny a rate hike based on the exigent clause in the PAEA. The ruling ensures that postage rates will not increase faster than inflation, a victory for both businesses and consumers,” said Erv Drewek, Brown’s Manager of Postal Affairs. “Although the USPS is in a difficult financial position, rate increases cannot be considered a fix-all for the numerous conditions facing the Postal Service.” The question being asked by everyone is ‘What happens next?’ “I am encouraging all of our customers to continue to voice their concerns,” continued Drewek. “Congress must relieve the USPS of its mandated legislative constraints surrounding the retirement pre-funding and delivery frequency.”

In support of an industry dependant on the USPS, Brown Printing Company has joined the AFFORDABLE Mail Alliance, a coalition that includes charities, small businesses, and American households who use the Post Office every day. Additionally, Erv Drewek, an active member of the American Catalog Mailing Association, has been hosting lunch and learns across the country to educate Brown’s customers on the effects of USPS regulation changes and proposed increases.

Postal Updates Since The Advantage…

• Postmaster General John E. Potter retired after nine years at the helm of the mail agency; Patrick R. Donohoe will succeed him.
• The Postal Service has filed an appeal with the U.S. Court of Appeals for the D.C. Circuit regarding the September 30, 2010 ruling of the Postal Regulatory Commission (PRC) denying the Postal Service exigent price request.
• The Postal Service is requesting a review of the PRC’s interpretation of the law that governs how prices can be set under “extraordinary and exceptional” circumstances.