USPS Denied Exigent Rate Increase Request
Michael Makin, president and CEO of Printing Industries of America, applauded the PRC decision, stating that it was "right on the policy, right on the law, and, most importantly, right for business. Tens of thousands of jobs in the printing industry and throughout the mailing supply chain have been saved by this decision. As printers continue to struggle with economic and regulatory uncertainty, the PRC decision is one bright spot as the industry seeks growth opportunities in the mailing and fulfillment market."
The law requires the Postal Service to demonstrate that any exigent rate adjustments are due to the identified exceptional circumstances. This prevents a bona fide extraordinary or exceptional circumstance from being used as a general rate increase mechanism that would circumvent the price cap system.
While the PRC recognized the USPS’ recent volume losses and multi-billion dollar shortfalls, the commission analysis found that the Postal Service’s cash flow problem "is not a result of the recession and would have occurred whether or not the recession took place."