ABA Opposes Proposed Changes to Postal Pricing System

In a comment letter today, the American Bankers Association urged the Postal Regulatory Commission not to move forward with its decision to replace the consumer price index cap on United States Postal Service pricing with a new system that would effectively allow the USPS to raise postal rates as volume declines. The association warned that such a change “will accelerate the Postal Service’s decline,” and cause many ratepayers to leave the system permanently.

The letter came in response to a revised notice of proposed rulemaking for the statutory review of the system for regulating rates and classes for market dominant products. ABA noted that in general, the proposal places too much emphasis on assuring adequate revenues for the USPS and does not meaningfully incentivize the USPS to pursue efficiency and cost reductions.

With the exception of proposed improvements to workshare pricing discount programs, ABA urged the PRC to reconsider the majority of the proposal. “For bankers, stability, predictability and just and reasonable rates are paramount, and it is not clear. . . how the PRC has considered these factors.”

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