May 2, 2007

Governors Approve a Lower Priority Mail Flat Rate Box Price and New First-Class Mail Nonmachinable Surcharge Application

The Governors asked the Postal Regulatory Commission to reconsider three items:

§        Price for the Priority Mail Flat Rate Box.

§        Application of the nonmachinable surcharge for First-Class Mail letters.

§        Prices for Standard Mail flats

On Friday, April 27, the Commission issued a Recommended Decision on two of our three requests for reconsideration. The Commission agreed with our analysis, and recommended an $8.95 Priority Mail Flat Rate Box price and recommended extending the nonmachinable surcharge to all single-piece and presorted First-Class Mail letters regardless of weight.

The Governors approved the Commission’s recommendation and thanked the Commission for their quick turn around on these two items. The Board set May 14 as the implementation date.

The Commission set May 4 as the due date for comments on how they could resolve the third item — the prices for Standard Mail Regular flats. There is no assurance that different prices will be recommended, and plan to implement the currently recommended rates on Monday, May 14, except for Periodicals rates which are delayed until July 15.

What changed as a result of the reconsideration?

The Priority Mail Flat Rate Box price will be $8.95 instead of the price originally recommended by the Commission — $9.15.

The 17-cent First-Class Mail nonmachinable surcharge now applies to all First-Class Mail nonmachinable letters — not just to those that weigh 1 ounce or less.