NALC submits comments in PRC’s rate-setting review

The Postal Regulatory Commission’s (PRC) required 10-year review of the way the U.S. Postal Service sets its prices for postage and postal products is underway, with NALC making an official submission to the agency before the public comment window closed on March 20.

Chief among NALC’s recommendations is that the PRC should eliminate the price cap on so-called “market dominant” products such as First Class Mail.  The cap has failed to provide the means to achieve the most important objective of the 2006 Postal Accountability and Financial Act (PAEA): financial stability for USPS.

The price cap is tied to the Consumer Price Index (CPI), an index that is not relevant to the cost of universal mail delivery and fails to provide postage rates high enough to cover the Postal Service’s legitimate costs, to pay down what its owes to the U.S. Treasury, to make needed capital investments in vehicles and facilities, and even to earn modest profits. Such profits would let the agency build up some cash reserves to help it ride out any emergency situations or other unforeseen circumstances.

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