Appeals Court sends exigency rate case back to PRC

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 recession”.

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:

USPS v. PRC Opinion on Merits

  • OG

    Congratulations on Step 1. Now back to the table and show how much and what specific costs justify this rate increase. I wouldn’t be surprised if Rep. Issa and Ross would somehow end up twitter-claiming this “extraordinary” circumstance is “due to” “labor expenses.” Go figure!


  • meera sethi

    kudos to the justice system. circumstances do change from time to time and no one could have predicted current recession. PRC should have considered extra ordinary circumstances rather than stifle USPS’s. Congress never intended to destroy Postal Business. common sense should have guided PRC. time to get rid of bunch of beaurocrats in PRC and replace them with business people