FIRST CLASS MISTAKE: PRC Finds 2020 Rates Too High

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WASHINGTON, DC — The Postal Regulatory Commission (PRC) found the USPS charging First-Class Mail 2020 rates above its lawful price cap authority and remanded the rate hike proposal to allow for adjustments.

WHAT THIS MEAN FOR MAILERS: First Class Mail rates will be a little lower in 2020 than first announced, by approximately 0.176 percent less. Corrected rate schedules to follow.

The PRC states in its order:

“As currently proposed, prices for First-Class Mail do not comply with certain statutory and regulatory requirements and are therefore remanded to the Postal Service for further action.

“The Commission finds that the Postal Service’s planned First-Class Mail price adjustments would exceed the price cap limitations specified by 39 U.S.C. §3622(d), as calculated in accordance with 39 C.F.R. §3010.21.

“Specifically, the Postal Service makes impermissible adjustments to the billing determinants related to Inbound Letter Post. As a result, the Postal Service incorrectly calculates the percentage change in rates for First-Class Mail to be 1.926 percent.

“Using the Postal Service’s planned First-Class Mail prices, the Commission has calculated the proposed percentage change in rates to be 2.109 percent, which exceeds the total price adjustment authority of 1.933 percent.

“In recognition of the Postal Service’s pricing authority, the Commission remands all planned price adjustments to First-Class Mail to allow the Postal Service to modify its proposal to comply with the applicable legal standards.”



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