USPS appeals against US postal regulator’s rejection of its price hikes

USPS will appeal against the ruling of the US Postal Regulatory Commission (PRC) on September 30in which it rejected the request of the postal operator to increase its mail prices by an average

As part of the decision by the USPS Governor, a petition will be filed in the United StatesCourt of Appeals for the District of Columbia Circuit, seeking a review of the PRC’s interpretationof the law that governs how prices can be set under extraordinary and exceptional circumstances,USPS said in a statement.

The US postal operator claimed that the PRC misread the statute and applied an incorrectstandard in evaluating the request for an exigent price increase.

“We have a fundamental disagreement with the PRC’s interpretation of the law,” said PostmasterGeneral John E. Potter. “This action is an investment in our future. We need to understand anddefine the rules under the current law should the Postal Service find itself in a similar situationin the future.”

In the petition, USPS also asks the Court of Appeals to confirm its right to pursue the exigentprice increase as originally requested of the PRC.

It is expected that the Court of Appeals will ask for briefs from both the Postal Service andthe US postal regulator. “Oral arguments also may be scheduled by the court once the petitionchallenging the PRC ruling is filed,” USPS added.

USPS said the exigent price request would have generated about $2.3 billion in much neededrevenue for the first nine months of calendar year 2011. “Filing for an exigent price change wasthe one tool the Postal Service had to use within the confines of the law to help address theimpact the recession had on its financial situation. But pricing is only one of a suite ofsolutions to address the dire financial situation the Postal Service faces. The long-term financialviability of the Postal Service will remain questionable unless the March 2 action plan isfulfilled.”

The company continues to evaluate other options to address the PRC’s ruling. “A quick and timelyresolution of the appeal is an important part of the Postal Service plan,” USPS concluded.