NRLCA President Dwyer – Postage Rates to Drop as Exigent Rate Expires, Costing the Postal Service $2 Billion

This post seems to be older than 1 year— so keep that in mind while reading. It might be outdated.

As you may have heard, the Postal Service announced on February 25 that first class postage will decrease effective Sunday, April 10, unless congressional or court action extends or makes permanent the exigent surcharge currently in place for mailing products and services. This means that the price of a Forever stamp will actually drop from 49 cents to 47 cents. Other prices, including international letters and postcards, will also drop.

The Postal Service is allowed to apply for an exigent rate case–a rate case that goes above the CPI–when it can prove an extraordinary or exceptional circumstance happened. The Postal Service successfully argued in 2013 that the Great Recession of 2007-2009 was an extraordinary and exceptional circumstance that resulted in a drop in mail volume and revenue.

However, an order from the Postal Regulatory Commission (PRC) requires that the 4.3 percent exigent surcharge be reversed once the Postal Service has collected surcharges totaling $4.6 billion. That amount is expected to be reached by April 10.

This is only the third time in history that we have seen a reduction in postage rates. The two other rate reductions were on July 1, 1885, when a two-cent reduction in the price of a letter was ordered, and on July 1, 1919, when a WWI one-cent exigent surcharge was removed.

USPS Postmaster General Megan Brennan has asked Congress and the courts to continue the emergency rate increase. She has stated the decrease will cost the Postal Service $2 billion a year. The NRLCA also supports making the exigent rate case permanent.

– Jeanette P. Dwyer, NRLCA President

Source: News Info

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Michael Volz

No money lost. Rural carriers covered the lost.

Gerry Nance

One would think she would be busy right now…finding where our mail is hiding!

Gerry Nance

Maybe, just maybe lower rates will actually promote more mailing. I guess that’s the Republican coming out in me.

Leland Grant

the have gotten smarter than hiding it in the plants, imo, they arrange for thr drops to be delayed , offering a reduction in postage as an incentive,

Cammie Cofield Alexander

I had less mail today than I’ve had my entire career as a Rural Mail carrier 15 years! There is absolutely no shame in their game! I feel as though I’m being held up & robbed! Just this Rural carriers Opinion!!!