Mailing & Fulfillment Special Report — Rate Case Realities

First, don’t get confused by the process. Basically, the U.S. Postal Service (USPS) does the math, projecting mail volume and its financial circumstances over a future period, then breaking the answer down to postage rates. Its regulator, the Postal Rate Commission, renamed the Postal Regulatory Commission (PRC) last month, performs its statutory role and conducts a trial-like proceeding, complete with witnesses and testimony. In the end, after 10 months of litigation, the PRC issues a “recommended decision” that the USPS governors consider, then accept or reject. (In the latter case, things get really interesting, but that’s not likely to occur this time.) Finally, the governors set the date for when the new rates, and any associated rule changes, will take effect. This year, the publicly circulated date is May 6, although that may change.