PRC wants to know why USPS ignored exigency revenue reporting requirements

The Postal Regulatory Commission has been getting tough with the postal service lately, rejecting a negotiated service agreement with Discover that didn’t make financial sense, and twice returning USPS requests for rate adjustments that the PRC said were “riddled with errors”.

Now the PRC wants to know why the USPS hasn’t bothered to file a report on revenue from the exigency rate adjustment that was due over a month ago:

prcThe Postal Service has not filed the report that was due February 16, 2015, and as of today it is 36 days late.

The Commission is concerned about the Postal Service’s failure to comply with Order No. 2075, failure to inform the Commission and mailers when its report will be filed, and failure to explain the circumstances that gave rise to the omission… The Postal Service’s delays to date, especially the most recent delay in providing this information, cause the Commission to question the Postal Service’s ability to submit necessary reports on the exigent surcharge revenue collection in the future.

Therefore, the Commission orders the Postal Service to: comply with Order No. 2075 by filing the quarterly surcharge revenue collection update as soon as practicable, but no later than March 27, 2015; explain, as soon as practicable, but no later than March 27, 2015, the circumstances giving rise to the delay; and provide, as soon as practicable, but no later than April 3, 2015, its plan to ensure that future submissions, including the quarterly reports and the future bi-weekly estimates, will be timely and in compliance with Order Nos. 2075 and 2319.

Document Details | Postal Regulatory Commission.

PRC Again Remands Price Adjustments Back To USPS: Standard Mail, Periodicals, and Package Services Products Affected

prcWashington, DC – For the second time in this case, the Postal Regulatory Commission returned a Postal Service proposal to adjust rates for Standard Mail, Periodicals, and Package Services.

In Order No. 2378 issued on March 6, 2015, the Commission remanded the rates for these classes of mail so that the Postal Service could provide additional information and justifications, correct errors, and fulfill applicable legal requirements. The Commission held that the Postal Service needed to address several deficiencies, including unequal Standard Mail nonprofit and commercial discounts, improperly justified Standard Mail worksharing discounts with passthroughs above 100 percent, and improperly calculated billing determinant adjustments for all three classes.

In the order issued today, the Commission finds that the Postal Service has not adequately addressed the concerns described in Order No. 2378 and has failed to demonstrate that the proposed rates comply with applicable statutory and regulatory requirements. As a result, the Commission again returns the proposed rates and directs the Postal Service to provide information demonstrating that they conform to the law.

Once the Postal Service files a response to the Commission’s order, the public will have 7 days from the date of that filing to comment on the revised proposal.

The Commission’s complete analysis of the Postal Service’s revised price adjustments for Standard Mail, Periodicals, and Package Services can be found in Order No. 2398, under Docket No. R2015-4.

PRC approves USPS First Class Mail Price Adjustments

prcWashington, DC – Today the Postal Regulatory Commission issued Order No. 2365­­­­­­ on Price Adjustments for First-Class Mail finding the Postal Service pricing proposals to be consistent with the Consumer Price Index based price cap under the Postal Accountability and Enhancement Act of 2006, 39 U.S.C. 3622(d)(1)(A). The new prices will take effect April 26, 2015.

The Commission did not delay the review and approval of First-Class Mail despite incomplete information filed by the Postal Service for other classes of Market Dominant mail.

The Commission has approved the following actions that will affect domestic mail:

  • The Postal Service will maintain the price of the First-Class Mail stamp, which includes the Forever stamp, at 49 cents.
  • The single-piece additional ounce for letters will increase from 21 to 22 cents.
  • The price of Postcards will increase to 35 cents.

The following changes affect international mail:

  • Outbound Single-Piece First-Class Mail (first ounce) will increase by 5 cents to $1.20.
  • Non-machinable Outbound Single-Piece First-Class Mail will increase to $1.42.
  • Outbound Single-Piece Postcards will increase to $1.20.

All Commission documents pertaining to price changes for 2015 are located on the Commission’s website at www.prc.gov, under Docket No. R2015-4.

All of the prices above include the current exigent surcharge approved in Docket No. R2013-11.

PRC Reviews USPS FY 2013 Performance Goals and FY 2014 Plan

prcWashington, DC – In a report released today, the Postal Regulatory Commission evaluates the Fiscal Year 2013 performance goals and Fiscal Year 2014 performance plans of the United States Postal Service. The Commission had in previous years provided this analysis in its Annual Compliance Determination report. However, the Commission has determined that issuing its analysis in a separate report allows the Commission to provide a more in-depth review of the Postal Service’s goals and plans than in previous years.

The Commission’s report addresses and makes suggestions related to the Postal Service’s four performance goals: 1) Service, 2) Customer Experience, 3) Financial Results, and 4) Workplace Environment. Below is a summary of the Commission’s findings.

  • The Commission found that the Postal Service partially met the Service performance goal because it met some, but not all, targets for the service performance indicators. For presort First-Class Mail, all performance indicator targets were met. Single-Piece First-Class Mail performance results were mixed.
  • The Service did not meet its Customer Experience performance goals for residential and small-medium businesses as measured by national surveys. While the Postal Service also surveys large business customers, those survey data are not used in assessing performance towards achieving the Customer Experience goal. To ensure that all customers’ needs are being considered, the Postal Service should include a customer experience performance indicator and target measure for large business customer experiences.
  • The Commission determined that the Postal Service partially met its Financial Results performance goal. For FY 2013, deliveries per hour, which the Postal Service uses to measure productivity, did not meet the target. However, operating losses were less than forecast.
  • In the fourth and final goal, the Commission found that the Postal Service partially met its Workplace Environment performance target. In FY 2013, its Occupational Safety and Health Administration’s Illness and Injury Rate of 5.61 met the performance target; however, the Voice of the Employee survey target was not met.

A complete copy of the Commission’s report can be found on the PRC website at www.prc.gov