Postal Regulatory Commission Update on Rate Making and Legislative Actions
Stay informed with the latest updates from the Postal Regulatory Commission regarding rate making, the Exigent Rate Case, and legislative proposals. Explore key areas of concern, the mission of the Commission, and the recent developments in the postal service industry.
Uploaded on | 0 Views
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
P O S T A L R E G U L A T O R Y C O M M I S S I O N P O S T A L R E G U L A T O R Y C O M M I S S I O N Parcel Shippers Association Regulatory Update Commissioner Mark D. Acton October 7, 2015 5/18/2015 V I E W S O F C O M M I S S I O N E R A C T O N 1
P O S T A L R E G U L A T O R Y C O M M I S S I O N For Discussion Postal Regulatory Commission Ratemaking - Exigency Legislative Action? Q & A 5/18/2015 V I E W S O F C O M M I S S I O N E R A C T O N 2
P O S T A L R E G U L A T O R Y C O M M I S S I O N The Postal Regulatory Commission Mission Statement: Ensure transparency and accountability of the United States Postal Service and foster a vital and efficient universal mail system Present Composition 5 Commissioners, appointed by the President and confirmed by the U.S. Senate presently at full complement 5/18/2015 V I E W S O F C O M M I S S I O N E R A C T O N 3
P O S T A L R E G U L A T O R Y C O M M I S S I O N PRC Core Duties Ensure the Postal Service complies with the law and applicable regulations Provide the public with transparency and accountability of the United States Postal Service Provide Advisory Opinions 5/18/2015 V I E W S O F C O M M I S S I O N E R A C T O N 4
P O S T A L R E G U L A T O R Y C O M M I S S I O N Rate Making: R2013-11 Exigent Rate Case PRC Order 2623 issued July 29, 2015 resolved key areas of concern: USPS New Normal arguments Count Once rule and alternative approaches Unit contribution calculation Mailers request for protection from overcollection 5/18/2015 V I E W S O F C O M M I S S I O N E R A C T O N 5
P O S T A L R E G U L A T O R Y C O M M I S S I O N Rate Making: R2013-11 Exigent Rate Case The literal bottom line ? Order 2623 authorizes USPS to collect an additional $1.2 billion in exigent surcharge This additional amount plus the $2.8 billion already collected produces a total exigent surcharge revenue of $4 billion Grand total is projected to be reached in April 2016 The exigent rate increase is purposefully a temporary surcharge adjustment USPS has appealed Commission ruling with the U.S. Court of Appeals, District of Columbia 5/18/2015 V I E W S O F C O M M I S S I O N E R A C T O N 6
P O S T A L R E G U L A T O R Y C O M M I S S I O N Legislatively Senate Homeland Security and Governmental Affairs Committee Ranking Member, Sen. Tom Carper, has proposed reform legislation No co-sponsors to date Broader question is whether targeted legislative changes are more passable than broad legislative reform Some agree a combination of re-amortization of USPS retiree health benefits prepayments, and the ability to administer its own health care plan would put USPS in a sustainable financial position 5/18/2015 V I E W S O F C O M M I S S I O N E R A C T O N 7
P O S T A L R E G U L A T O R Y C O M M I S S I O N Legislatively Factors (+) favoring/ (-) not favoring reform? (+) Reform of some form is needed! (-) The Postal Service had its first operational profit since 2008, which may impact the chances of reform as USPS circumstance seem less dire (-) Extended exigent surcharge (-) Election year Q & A / www.prc.gov 5/18/2015 V I E W S O F C O M M I S S I O N E R A C T O N 8
