{"id":636,"date":"2015-06-08T11:05:34","date_gmt":"2015-06-08T16:05:34","guid":{"rendered":"https:\/\/gofranklingo.wordpress.com\/?p=636"},"modified":"2018-07-13T02:02:10","modified_gmt":"2018-07-13T08:02:10","slug":"important-postage-update","status":"publish","type":"post","link":"https:\/\/blog.gofranklingo.com\/index.php\/2015\/06\/08\/important-postage-update\/","title":{"rendered":"Important Postage Update"},"content":{"rendered":"

Court Rules on end to 2014 Exigent Rate Increase<\/strong><\/p>\n

<\/p>\n

<\/p>\n

<\/p>\n

On Friday, June 5, 2015,\u00a0\u00a0the DC Court of Appeals issued its decision on the exigent rate case. \u00a0The court affirmed the most significant element of the ruling by the Postal Regulatory Commission back in late 2013, namely, that the increase could not go on forever.<\/p>\n

<\/p>\n

<\/p>\n

<\/p>\n

But the court remanded another aspect of the Commission\u2019s order, and it is now almost certain that the exigent increase will be extended beyond August, when it was expected to end.\u00a0 Depending on how the Commission does the next round of calculations, the increase could continue into the spring, or perhaps even longer.<\/p>\n

<\/p>\n

<\/p>\n

<\/p>\n

The increase went into effect in January 2014, and as of March 31, 2015, the Postal Service had collected almost 80 percent of the $2.8 billion it says it lost as a result of the depression. \u00a0At the current rate of generating contribution \u2014 about $150 million a month \u2014 the exigent increase would have reached the authorized limit at the end of August. \u00a0The court\u2019s ruling, however, means that the Commission will need to do some more calculations for how much additional contribution the Postal Service can take in.<\/p>\n

<\/p>\n

<\/p>\n

<\/p>\n

If the Commission were to determine that the Postal Service is in fact due another $1.2 billion, the exigent increase would continue another eight months or so.\u00a0 Rather than ending this August, it would continue until April 2016.<\/p>\n

<\/p>\n

<\/p>\n

<\/p>\n

Given the complexity of the issues still on the table and the amount of money at stake, it\u2019s possible that the case may end up back in court a third time.\u00a0 In the meantime, the exigent rate increase remains in place. \u00a0Not forever, but longer.<\/p>\n

<\/p>\n

<\/p>\n

<\/p>\n

Source:\u00a0 postalnews.com<\/em><\/p>\n

<\/p>\n

<\/p>\n

<\/p>\n

Editor\u2019s Note<\/span>:\u00a0 We believe that a likely scenario will be for the USPS to request a Consumer Price Index-based rate increase in early 2016.\u00a0 If the current CPI continues to hover around 2%, that would mean a rollback of the 4.3% exigent increase from 2014 combined with the CPI-based increase for a net reduction of just over 2% off of current 2015 rates. \u00a0Combining the increase and price rollback would \u00a0eliminate the cumbersome process of having to make two rate changes within a three to four month window.<\/p>\n

<\/p>\n

<\/p>\n

<\/p>\n

For updates on this issue, please continue to follow this blog or contact us at TheFranklinTeam@gofranklingo.com<\/a>.<\/p>\n

<\/p>\n

<\/p>\n

\n","protected":false},"excerpt":{"rendered":"

Court Rules on end to 2014 Exigent Rate Increase<\/p>\n<\/p>\n<\/p>\n

On Friday, June 5, 2015,\u00a0\u00a0the DC Court of Appeals issued its decision on the exigent rate case. \u00a0The court affirmed the most significant element of the ruling by the Postal Regulatory Commission back in late 2013, namely, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[33,34,92,94,100,132,140],"class_list":["post-636","post","type-post","status-publish","format-standard","hentry","category-recent-posts","tag-direct-mail","tag-direct-mail-budget","tag-postage","tag-postage-increase","tag-postal-rate","tag-usps","tag-usps-rate-increase"],"_links":{"self":[{"href":"https:\/\/blog.gofranklingo.com\/index.php\/wp-json\/wp\/v2\/posts\/636","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.gofranklingo.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.gofranklingo.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.gofranklingo.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.gofranklingo.com\/index.php\/wp-json\/wp\/v2\/comments?post=636"}],"version-history":[{"count":0,"href":"https:\/\/blog.gofranklingo.com\/index.php\/wp-json\/wp\/v2\/posts\/636\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.gofranklingo.com\/index.php\/wp-json\/wp\/v2\/media?parent=636"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.gofranklingo.com\/index.php\/wp-json\/wp\/v2\/categories?post=636"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.gofranklingo.com\/index.php\/wp-json\/wp\/v2\/tags?post=636"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}