Postal Law

March 12, 2008

Today, the independent Postal Regulatory Commission approved the U.S. Postal Service’s proposed price adjustments for market dominant products.  This is the first increase under the new Postal Accountability and Enhancement Act of 2006 (PAEA), which is legislation MPA worked tirelessly to have passed and signed into law.

Under PAEA, increases can not exceed the statutory Consumer Price Index, which was 2.9 percent for the 12 months ending December 2007.  Following today’s conclusion of the Commission’s 14 day review period - which was preceded by a 20 day comment period during which MPA submitted comments in favor of the new rates - the 2.7 percent increase for periodicals will now officially become effective May 12, 2008.  As PAEA stipulates, the Postal Service may “bank” the difference between the cap and its planned price changes for use within five years.  The unused rate authority for periodicals is 0.176 percent.