The Postal Regulatory Commission today today ruled that the US Postal Service has justified the recovery of $1.191B of contribution in addition to the $2.766B of contribution the PRC previously granted from the original 2013 exigent rate request. That amounted to an extra 4.3% increase on top of the January 2014 rate hike.
Bottom line to catalogers is reasonable considering the possibilities: Expect the exigent surcharge to be in place for about eight more months. Below are highlights from the full PRC ruling.
- The PRC finds the USPS has justified the recovery of $1.191 billion of contribution in addition to the $2.766 billion of contribution previously found justified by its previous order.
- The exigent surcharge shall remain in effect until removed in accordance with the surcharge removal plan filed June 2, 2014, and the provisions of PRC’s prior orders.
- The Postal Service must continue to report incremental and cumulative surcharge revenue to the PRC 45 days after the end of each quarter as required by the PRC’s previous orders.
- The Postal Service must notice the removal of the exigent surcharge at least 45 days before the date of the removal.
- The Postal Service shall provide bi-weekly estimates of the incremental and cumulative surcharge revenue beginning the quarter in which the Postal Service anticipates removing the surcharge.
It looks like the rate increase will stick around for a while yet. Postage increases are usually tied to the USPS Postal One updates which are around January and June. We will continue to update you with any changes.