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Parcel Shippers Association Regulatory Update Commissioner Mark D. Acton

Parcel Shippers Association Regulatory Update Commissioner Mark D. Acton. October 7, 2015. Postal Regulatory Commission Ratemaking - Exigency Legislative Action? Q & A. For Discussion. Mission Statement:

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Parcel Shippers Association Regulatory Update Commissioner Mark D. Acton

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  1. Parcel Shippers AssociationRegulatory UpdateCommissioner Mark D. Acton October 7, 2015 VIEWS OF COMMISSIONER ACTON

  2. Postal Regulatory Commission Ratemaking - Exigency Legislative Action? Q & A For Discussion VIEWS OF COMMISSIONER ACTON

  3. Mission Statement: Ensure transparency and accountability of the United States Postal Service and foster a vital and efficient universal mail system Present Composition 5 Commissioners, appointed by the President and confirmed by the U.S. Senate—presently at full complement The Postal Regulatory Commission VIEWS OF COMMISSIONER ACTON

  4. Ensure the Postal Service complies with the law and applicable regulations Provide the public with transparency and accountability of the United States Postal Service Provide Advisory Opinions PRC Core Duties VIEWS OF COMMISSIONER ACTON

  5. PRC Order 2623 issued July 29, 2015 resolved key areas of concern: USPS “New Normal” arguments “Count Once” rule and alternative approaches Unit contribution calculation Mailers’ request for protection from overcollection Rate Making:R2013-11 Exigent Rate Case VIEWS OF COMMISSIONER ACTON

  6. The literal “bottom line”? Order 2623 authorizes USPS to collect an additional $1.2 billion in exigent surcharge This additional amount plus the $2.8 billion already collected produces a total exigent surcharge revenue of $4 billion Grand total is projected to be reached in April 2016 The exigent rate increase is purposefully a temporary surcharge adjustment USPS has appealed Commission ruling with the U.S. Court of Appeals, District of Columbia Rate Making:R2013-11 Exigent Rate Case VIEWS OF COMMISSIONER ACTON

  7. Senate Homeland Security and Governmental Affairs Committee Ranking Member, Sen. Tom Carper, has proposed reform legislation No co-sponsors to date Broader question is whether targeted legislative changes are more “passable” than broad legislative reform Some agree a combination of re-amortization of USPS retiree health benefits prepayments, and the ability to administer its own health care plan would put USPS in a sustainable financial position Legislatively VIEWS OF COMMISSIONER ACTON

  8. Factors (+) favoring/ (-) not favoring reform? (+) Reform of some form is needed! (-) The Postal Service had its first operational profit since 2008, which may impact the chances of reform as USPS circumstance seem less dire (-) Extended exigent surcharge (-) Election year Q & A / www.prc.gov Legislatively VIEWS OF COMMISSIONER ACTON

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