On USPS Postal Explorer last week, the USPS posted rate sheets for a possible decrease in Postal Rates that could come this spring.  Yes, you heard me right – a postal rate decrease.  Will this happen?  First a little reminder:

In early 2014, as you may remember, the rates took a large increase as the Postal Regulatory Commission (PRC) approved the normal CPI increase of 1.6%, but also approved an exigent rate increase of 4.3% – due to the loss of revenue the USPS had from the “Great Recession.”  This was a hit to mailers of 5.9%!  The PRC gave a certain timeframe to recoup the lost income & then reduce the rates by 4.3%.  This went to court and increased the amount of money that the USPS could recoup – which also extended the time to revert back. That time should be April/May this year. Postmaster General Megan Brennan had previously indicated that this decrease might happen at MTAC meetings in January, and this seems to be coming to fruition now.

There are still Postal reform bills in Congress, and one says that this exigent rate should remain in effect permanently. PostCom has written a letter to the Senate Committee Chairman, Gene Del Polito, claiming this part of Postal Reform is unacceptable & unwarranted. There is also a possibility that the courts would intervene in this matter, which could cause this rate decrease to not happen.

Whether Congress votes on this, or anything else in an election year, is probably unlikely.

We will know 45 days prior to any decrease to happen, because the Board of Governors has to submit the request to the PRC 45 days prior to any rate change.

We will keep you posted.