A negotiated settlement ending this year’s postal rate case has been reached by participants in the case and the U.S. Postal Service.
“It’s beginning to look like a very substantial majority of the people [involved in the Postal Rate Commission] proceedings, more than 20 have already signed the settlement agreement and we expect more will have signed by the end of the day,” said Dan Foucheaux, a lawyer with the USPS.
The USPS has agreed to delay implementing the proposed 8.7% rate increase until July 1, and to wait until the start of its fiscal 2003, which begins in September, before asking for another rate increase.
The signers include the Direct Marketing Association, Association for Postal Commerce, Alliance of Nonprofit Mailers, the Mailing Fulfillment Service Association (formerly the Mail Advertising Service Association).
Although there are more than 30 organizations, companies and individuals participating in the rate case, Foucheaux said he doubted that every one would sign the agreement. “Some parties intervened [in the rate case] just to receive the [legal] papers, but did not take an active role in the proceedings,” he explained.
Gene Del Polito, president of the Association for Postal Commerce, predicted that “there will be one or two key holdouts.”
Neal Denton, Alliance of Nonprofit Mailers executive director, also predicted “a handful of folks” will not sign the agreement.
“The question is if they don’t sign on and agree, how aggressively they will oppose it or will they just go along for the ride,” Denton said.
The PRC, he added “is gong to have plenty of time in February to hear evidence and arguments on a handful of particular points that some interveners may want to raise.”
Foucheaux said he would file a full report with the PRC on the number of participants in the case signing the agreement on Friday. Documents of the actual agreement are expected to be filed next week.
There was no immediate comment from the PRC on the reported settlement agreement, which if accepted, would be the first time in recent memory that a major rate case was settled by mutual agreement of those involved.
The PRC is expected to file its recommendations with postal governors by late March.
Network
