USPS files motion with PRC to reconsider the standard to determine when mail preparations changes are a rate impact

02/23/2016

The United States Postal Service has filed a motion for the Postal Regulator Commission to reconsider the standard that the Commission plans to use in determining when changes in mail preparation requirements implicate the price cap.

 

It was on January 22, 2016, that the Commission issued Order No. 3047. It set forth the standard it plans. The order was in response to the court’s May 2015 remand in United States Postal Service v. Postal Regulatory Commission.

In the recent motions, the USPS stated “Reconsideration is necessary because the Commission has not adequately responded to the court’s remand, for the reasons discussed below. The approach set forth by the Commission lacks clarity and appears no different from the prior standard that the court rejected as “not com[ing] close to satisfying the requirement of reasoned decision making.”

 

The motion goes onto state, “If the Commission nevertheless maintains that its approach does square with the statutory language, then it must also explain how dramatically expanding the application of the price cap to serve such a purpose achieves the statutory objectives and accounts for the statutory factors. In this regard, it is not apparent what statutory objective is actually advanced by an approach that seeks to penalize the Postal Service for implementing operational requirements that enhance efficiency or serve other important purposes by requiring the Postal Service to forego a disproportionate amount of its scant price cap authority.”

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