Member Alert: Postal Service Delays April 2015 Price Change
March 27, 2015
The U.S. Postal Service has just announced that it will not implement the postage increase for Periodicals and Standard Mail on April 26 as planned.
As you will see in Max Heath’s April Pub Aux column, the Postal Regulatory Commission has twice rejected the proposed prices. In the latest round, it asked USPS to revise its proposal. Mailers are then permitted 45 days between final acceptance of the rates and the implementation. So the newest rates could not go into effect now until mid-May at the earliest.
We will keep you posted. Below is the USPS announcement.
Postal Service Delays April 2015 Price Change
The Postal Service Governors decided today to delay the implementation of new market-dominant and competitive rates and classification changes until all of our proposed market-dominant changes are approved by the Postal Regulatory Commission (“PRC”). This decision was primarily motivated by a desire to eliminate potential adverse impacts on postal customers that might result from a staggered implementation of our new prices. After considering the complexity of the required programming changes in view of the remand of some of our proposed changes by the Postal Regulatory Committee, the specific complications that our customers might face; the potential cost to the supply chain as a whole of a staggered implementation, the Postal Service has decided to delay implementation until all of our proposed rates and classification changes can be implemented at one time.
While proposed prices for First Class Mail, Special Services and Competitive Products have all been approved by the PRC, prices for the Standard Mail, Periodicals and Package Services classes have twice been remanded back to the Postal Service by the PRC for a wide array of technical and other concerns that are primarily related to the complexities of the price cap and the manner in which it is calculated. Rather than subject our customers to a piecemeal implementation of our new prices, the Postal Service has decided that the best course of action would be to wait until our complete price proposal is approved by our regulator. We have no desire to saddle our valued customers with the additional costs and burdens of a staggered implementation while we work with the PRC to obtain final approval of our remaining prices. We will set a new implementation date when we propose new prices for Standard Mail, Periodicals, and Package Services in response to the PRC’s March 18th remand order.