PRC Issues New Proposal in the Ten Year Rate Review
The Postal Regulatory Commission (PRC) recently issued a new proposal as a part of their Ten Year Rate Review. We have kept our finger on the pulse of this important developing story since the initial release of their recommendations. These changes will impact the budgets of NPOs across the United States, so we all need to understand what is happening and lock arms in solidarity to ensure our industry’s voice is heard.
How did we get here?
The Postal Accountability and Enhancement Act (PAEA) mandated a 10-year review of the USPS CPI-cap rate system in 2016, which capped rate increases at the level of inflation. The requirement stated that the PRC had to review this rate-making system and determine if it met the original objectives. In 2017, the PRC found that the current system was not meeting the original objectives, and outlined areas of concern. This past December, the PRC issued an updated 2020 proposal and recommendations.
What is happening now?
Essentially the 2020 proposal provides greater autonomy on rate making and could substantially impact nonprofit mailers if it comes to fruition. Rather than increases based on CPI currently in place, there would be less moderation, if any at all, on price changes. When the mailing industry evaluated the potential impact in 2017 they believed some mailers could possibly see a 28-40% increase in postage. While the 2020 proposal is very similar to the 2017 original we evaluated, there are modifications that could mean even greater increases.
What can you do to make your voice heard?
Our industry can respond with comments until Monday, Feb 3rd. The Alliance of Nonprofit Mailers is advocating for NPOs to gather details that can be generated into declarations representing the Nonprofit Mailing Industry as a whole. We will share additional details, template letters and more as we continue to learn more. Stay tuned for additional collateral in the coming weeks.