Postal Regulatory Commission Approves Rate Increase; Advises Governors Not to Increase by Full Amount
The U.S. Postal Regulatory Commission approved the Postal Service’s proposal to raise rates for Market Dominant products consistent with applicable law on May 30. According to Commission regulations, proposals for rate changes that comply with the applicable legal requirements may take effect. In its decision, the Commission strongly encouraged the Postal Service Board of Governors to consider exercising their business judgment, consistent with statutory and regulatory requirements, not to increase rates by the full amount permitted by law. In response to The Alliance’s comments submitted on May 9, on page 130, the order states: “The Commission also shares N/MA’s concerns about Periodicals’ costs and continues to strongly encourage the Postal Service to take steps to address them.” Regarding the Flats Operations plan, the order says: “The Commission nonetheless remains concerned about the issues raised by N/MA and is continuing to review them in Docket No. SS2022-1.”
Price changes are scheduled to take effect July 13. The proposed adjustments, approved by the governors of the Postal Service, would raise Periodicals rates by an average of 9.385 percent and Marketing Mail prices by an average of 7.385 percent.
Senator Hawley Introduces Postal Legislation
U.S. Senator Josh Hawley (R-MO) introduced S. 1604, the No Regional Transportation Optimization (RTO) Act on May 6. The legislation would:
- Prohibit the U.S. Postal Service from implementing the RTO plan or any similar initiative that the Postal Regulatory Commission concludes would negatively affect rural communities.
- Protect mail service in rural communities across America from further degradation.
