As you may know, the US Postal Service has proposed new rates for 2015. Behind the scenes, many of the original plans have since shifted. Here is a high level overview of what’s been going on in the USPS, and how it impacts your bottom line:

  • In early January, The USPS’ Emergency Board of Governors sent new Postal rates to the Postal Regulatory Commission (PRC). These rate changes were initially approved in February, and set to go into effect April 26.
  • In March, the PRC sent back revised Standard, Periodical rates & Package Services prices. These rates have bounced back and forth between the USPS and the PRC throughout March, and now cannot be finalized within 45 days of the initial date of April 26.

From the PRC:
“The Postal Service’s initial filing in this proceeding contained many errors &and inconsistencies and lacked information required by title 39 and the Commission’s regulations.”
The PRC also stated “The Postal Service proposes numerous unequal commercial and nonprofit discounts without proper justifications and several workshare discounts that exceed avoided costs without proper justifications.”
So what does this mean to you? Well, a few things, potentially:

  1. Rates could go into effect on April 26 for all classes of mail – this probably won’t happen, as the PRC seems to indicate that the 45-day notice that the USPS must give on new rates is the date that they are approved by the PRC.
  2. First-Class & Competitive rates could go into effect on April 26, and Standard and Periodicals would be at a later date.
  3. All classes of mail would not increase until all rates are approved.

I am betting on #2, as that would allow some increase in revenue for the USPS at an earlier date. I’m no clairvoyant, so don’t quote me, as the USPS has thrown us more curveballs than Sandy Koufax.
There will be more to come!