The United States Postal Service (USPS) submitted another request to the Postal Regulatory Commission (PRC) last month for a 5.6-percent exigent postal rate increase after its initial appeal was rejected. Nonprofit mailers have a message for the USPS: Give it up.
In the latest update on this issue from The NonProfit Times, we learn that four nonprofit mailing organizations have sent a letter to Postmaster General Patrick Donahoe requesting that they drop their continued appeal for an exigent rate increase. Postal officials have publicly stated that they do not want an increase, and the mailers want them to act on those words. "If you do not want an exigent increase and you do not want mailers to plan for one," they wrote, "withdraw the case. Actions speak louder than words.” They also argue that even the possibility that mailers may face an above-Consumer Price Index increase has cast "a pall of uncertainty" over the industry, making budgeting and mailing plans difficult.
The letter was signed by Jerry Cerasale, senior vice president of the Direct Marketing Association (DMA); Tony Conway, executive director of the Alliance of Nonprofit Mailers; Jim Cregan, executive vice president, government affairs, for The Association of Magazine Media, and Gene Del Polito, president of the Association for Postal Commerce. To read the full story, head over to NPT's website.
Showing posts with label Rate Increases 2011. Show all posts
Showing posts with label Rate Increases 2011. Show all posts
Thursday, December 15, 2011
Friday, March 11, 2011
The United States Postal Service Appeals Rate Increase Rejection
Note: This is a summary of a past NPTtv story about how the USPS rate increase for 2011 was denied.
The Unites States Postal Service (USPS) is appealing the decision by the Postal Regulatory Commission, or PRC, to reject USPS's rate increase. As part of the appeal of the fact that it had its proposed rate increase denied, USPS claims that the PRC misread the statute and applied an "incorrect standard in evaluating the request" for the price increase. The Postal Regulatory Commission's denial of the proposed average 6.5% hike represents that first time it has ruled on an exigent rate case under the Postal Accountability and Enhancement Act of 2006.
The postal service concluded its third quarter in June with a net loss of $3.5 billion compared with 2.4 billion at the end of the same quarter in 2009. USPS also decreased costs by $6 billion last year. The proposed rate increase would have generated an estimated $2.3 billion in revenue for USPS in 2011, according to their assessment.
The Unites States Postal Service (USPS) is appealing the decision by the Postal Regulatory Commission, or PRC, to reject USPS's rate increase. As part of the appeal of the fact that it had its proposed rate increase denied, USPS claims that the PRC misread the statute and applied an "incorrect standard in evaluating the request" for the price increase. The Postal Regulatory Commission's denial of the proposed average 6.5% hike represents that first time it has ruled on an exigent rate case under the Postal Accountability and Enhancement Act of 2006.
The postal service concluded its third quarter in June with a net loss of $3.5 billion compared with 2.4 billion at the end of the same quarter in 2009. USPS also decreased costs by $6 billion last year. The proposed rate increase would have generated an estimated $2.3 billion in revenue for USPS in 2011, according to their assessment.
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