The Postal Rate Commission, which expects to decide whether to reaffirm or change its postage rate increase recommendations, is asking for direct marketing and mass mailing industries for input on three key questions.
Specifically the PRC wants to know if they agree with the U.S. Postal Service and its Board of Governors that it can legally change its earlier recommendation for a 4.6% increase to 6%; if it should make the change, and if so, how should the higher rates be developed.
The PRC wants industry, which strongly opposed the postal service's rate increase plans, to answer those questions by the close of business March 19.
The PRC, at the request of postal governors, is for the second time reconsidering its November recommendations for the lesser rate hike while reducing the amount of money the postal service sought to hold in reserve for "unknown adverse occurrences" or emergencies to $1.7 billion from $2.8 billion.
Postal governors, arguing for the second review, claim that the larger increase would keep the USPS financially viable. Without the increase, they say the USPS, which could lose between $2 billion and $3 billion this year, will be forced by mid summer to seek a rate hike of between 10% and 15%.
They also say that the postal service's ability to deliver mail across the nation would be jeopardized without an immediate infusion of money.
