PRC Chief Takes USPS to Task Over Anonymous Memo

Share this content:
It seems that a rate increase for Standard A mail still is inevitable despite the fallout from a postal employee's memo disclosed by Postal Rate Commission chairman Ed Gleiman.


According to a transcript of last month's PRC hearing, the four-paragraph unsigned memo was attached to papers that the postal service submitted electronically to the PRC as part of its testimony.


The memo, titled "Docket R97-1 Revenue Requirement Updating Strategy for Rebuttal Testimony," said that the postal service is planning to give the PRC selective financial data to support its proposed rate increase. The USPS is asking the PRC to endorse a rate increase averaging 4.5 percent to raise $2.4 billion in revenue, despite reporting a $1.3 billion profit this year.


The dispute stems from a paragraph that says the postal service needs to give the commission "updated information on cost increases to offset the decreases included under [the first paragraph of the memo]," which includes cost changes for known, quantifiable, actual events that have been raised on record.


According to testimony, Gleiman said to Richard Porras, USPS vice president and controller and a witness at the hearing, "It seems that this strategy document is advising that the postal service should include in your testimony selected lists of revised cost estimates that are within control of the postal service to offset known and generally uncontrolled cost decreases. It doesn't say find all of the increases and all of the decreases. It says find enough to offset. That's fairly plain English where I come from."


Porras, who said he hadn't seen the memo, replied: "We were looking [to see if we] have any particular costs that were majorly going up. We weren't trying to go through every single line item."


In a written statement, Porras maintained that the full rate increase is necessary and that it would be unwise to recalculate all of the changes that have occurred since the case was filed. The net effect of the changes would be a $195 million decrease in the postal service's projected expenses.
Loading links....
close

Next Article in Agency

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here