Catalogers to Gain Temporary Postal Rate Relief

Today’s PRC action responds to the last of three issues returned to the Commission by the Governors in relation to Docket No. R2006-1. The Commission’s decision may be found on the PRC website: http://www.prc.gov/ under Daily Listing, May 25, 2007.

Commission chairman Dan G. Blair issued the following statement:
The Commission’s proposal gives the USPS Governors the ability to make a temporary rate reduction for catalog and flats mailers. We believe this option responds to the concerns expressed by the Governors and all of the many participants who submitted comments. It leaves Standard letter rates untouched, protects the Postal Service’s financial standing, allows USPS projected revenues to meet expected costs, and does not reduce the Contingency Fund. Our recommendation does not involve shifting the financial burden associated with lowering catalog and flats rates to other mailers. If the Governors accept our recommendation, commercial and nonprofit flats mailers could expect to achieve savings of $0.03 and $0.02, respectively, and the Postal Service would still break even if the temporary transitional rate relief for Standard Regular flats mailers ends on September 29, 2007, the last Sunday before the test year begins.