The DC Circuit Court of Appeals issued its decision in USPS v. Postal Regulatory Commission today, sending the case back to the PRC for further deliberations. The USPS had requested an above CPI rate increase of 5.6%, claiming the rate hike was needed to offset decreased volume caused by the recession. The PRC denied the request, finding that while the recession was indeed an “extraordinary” event, the rate increase was based more on “long-term structural problems not caused by the recent recessionâ€.
The Appeals Court found that the PRC erred in requiring too exact a link between the rate increase and the revenue lost by the USPS due to the specific “extraordinary” circumstance. It held that since Congress had not required that any exigent increase be solely due to the specific cause cited by The USPS, it was up to the PRC to spell out “how closely the amount of the adjustments must match the amount of the revenue lost as a result of the exigent circumstances.
Because the Commission did not…, we remand for it to do so now”.
Here’s the full decision: