PRC issues decision in exigency case- USPS gets $1.2 billion additional contribution

The Postal Regulatory Commission today issued its decision in the remanded exigent rate adjustment case, deciding that the USPS is entitled to an additional $1.191 billion in “additional contribution” beyond the $2.766 billion the PRC had already authorized.

The USPS had appealed the original PRC decision to the DC Appeals Court, which ordered the PRC to recalculate the revenue lost due to the Great Recession. The postal service had argued for up to $8.6 billion in additional revenue, which would have extended the duration of the surcharge by more than four years, while mailers claimed that just $60 million would be enough.

This case has been remanded to the Commission by the United States Court of Appeals for the District of Columbia Circuit for further proceedings consistent with the Court’s opinion in Alliance of Nonprofit Mailers v. Postal Regulatory Commission, 2015 WL 3513394 (D.C. Cir. June 5, 2015) (ANM). For the reasons set forth below, the Commission finds that the Postal Service is entitled to recover $1.191 billion in additional contribution as an exigent rate adjustment. When added to the $2.766 billion in contribution originally authorized by the Commission in Order No. 1926,1 the total exigent rate adjustment approved by the Commission is $3.957 billion in contribution.

Postcom reports that “This would mean the exigency will be in effect for an additional eight months”.

Read the full decision (.pdf file).