USPS likely to file Exigency Rate Case

Here’s a USPS update from our CEO Tim Johnson:
It appears that the United States Postal Service (USPS) is planning to resurrect their request for “Exigency” postage rate relief.  Details regarding how much increase they will ask for are not known at this time. The Postal Board of Governors (BOG) is scheduled to meet on June 17th to discuss this possibility.  The decision regarding whether to move forward with an Exigency Rate Case will likely occur at that meeting.
The last time this happened, we, along with many in the industry, actively opposed the USPS request; ultimately the Postal Rate Commission (PRC) denied the USPS request.  However, the PRC left the door open for the USPS to re-file the request, which they have avoided doing until now.  The Postmaster General (PMG) has repeatedly said that he would only file for exigency relief as a last resort. Given the PMG’s recent lack of  legislative success related to postal reform, the BOG may now feel the time has come.
Though the industry will again oppose the Exigency Case, I suspect that the PRC will approve this USPS request.  Despite my sense that this is going to happen and we’re going to lose, we will continue to represent our client’s interests in Washington.

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