Two weeks ago the USPS Board of Governors (BOG) decided to take elimination of Saturday delivery off the table—at least for now.  It came down to discretion over picking a battle with Congress on the issue created when Postmaster General Patrick Donahoe announced February 6th his decision to unilaterally eliminate Saturday delivery in August.

In the BOG’s public release they stated, “The Board has also asked management to evaluate further options to increase revenue, including an exigent rate increase to raise revenues across current Postal Service product categories and products not currently covering their costs.”

Unfortunately, the Postal Accountability and Enhancement Act of 2006 (PAEA) contained a clause allowing for an exigent price increase “necessary under exceptional or extraordinary circumstances.”  Three years ago the Postal Service filed for an exigent increase in postage rates in the neighborhood of 5% to 6%.  This is above and beyond the annual CPI increase allowed under PAEA.  After review by the Postal Regulatory Commission, then an appeal to federal Washington DC court, it was pushed back to the Postal Service for further definition.  It was not shot down.  Ever since then, the exigency rate increase has lurked in the background of conversations about USPS’s financial woes. 

The Postmaster General (PMG) has stated many times that he would no longer invoke the dreaded exigency clause—a certain mail volume killer.  The PMG knows this and so does the mailing industry.  When the BOG issued a release stating exigency is back on the table, we need to take notice and speak out.  There will be pain for all in the mailing industry if this gets legs.