Postal
Update Postal Regulatory Commission Releases
Decision on Rate Case March 1, 2007—On Monday the PRC responded
to the USPS rate request filed in May 2006. They recognized the need for a rate
increase to break even and the need for improved rate designed for many postal
products. Despite the recognition the PRC recommended a smaller increase
was warranted, due to calculation errors in the supporting financial documentation
and conceptual errors in the proposed rates. The average rate increase will be
7.6 percent instead of the 8.1 percent requested by the USPS. The PRC recommended
a 2 cent increase in both first class letters and postcards, rather than the three
cents requested by the USPS. First class letters will go from 39 to 41 cents each
and postcards will go from 24 to 26 cents each. This is an increase of 6.9 percent.
A new “Forever Stamp” was given approval. It will be sold for the
current price of a first class letter and will remain valid indefinitely. The
stamps will be sold in reasonably limited quantities to ease the transition to
the new rates. Classroom Periodical rate Outside County. The Service
proposes cost coverage of 106.4 percent for Outside County Periodicals, which
corresponds to an average rate increase of 11.7 percent. USPS-T-35 at 2. Both
percentages are calculated after applying the 5 percent discount (from Regular
rates), except for advertising pounds, for Nonprofit and Classroom mailings. USPS-T-31
at 24. The proposed Outside County increase is based on the Service’s cost
attribution methods, mail processing cost model, and cost coverage. It assumes
adoption of the Service’s proposed structural reforms. The USPS will
reply before the rate changes take effect in May. For more information visit www.prc.gov.
What is the Classroom Periodical Rate?The
Classroom Periodical Rate gives publishers a postage discount on eligible materials
sent to schools and religious instructional centers. Eligible publications are
defined as “a religious, educational, or scientific publication designed
specifically for use in classrooms or religious instructions classes” (DMCS
422.3). While the discount varies according to the amount of advertising in the
periodical and the zones to which the periodicals are mailed, the rate is effectively
a 5% discount. Read
this document for complete background information on the CPA (pdf) and to
see how you can qualify for the rate. NOTE: The CPR does not apply
to BPM (Bound Printed Material), such as shipments of catalogs and textbooks.
For information on the Literacy Rate, which will apply to BPM, please read about
the Literacy Rate initiative. Goals
of the CPA - Keep interested AEP members informed about updates of
this postal rate and any pending rate cases with the postal commission.
-
Make eligible members aware of the rate and how they can qualify.
- Preserve
the Classroom Periodical Rate.
AEP will continue to work with the
original CPA supporters and interested AEP members as well as Venable LLP, a Washington
law firm specializing in corporate and business law, complex litigation, intellectual
property and government affairs, to secure the discount rate. Activities of the
CPA include disseminating information about postal rates, gathering data from
members about their postal practices, and working with government officials. |