There is no question that a country’s postal service is a valuable national asset. On one hand, it is a functional asset that supports commerce and binds the nation together. On the other, postal operations are capital assets, with distribution networks, vehicles, machinery, and labor resources that have some sort of value.
While the value of binding the nation together is difficult to put into monetary terms, the value of capital assets is easier to assess. In fact, some cash-strapped governments around the world are trying to raise money by selling parts of their postal operations. The most prominent example is Greece, who announced in June that it plans to sell 39 percent of the national postal service, Hellenic Post.
The Postal Accountability and Enhancement Act of 2006 (PAEA) ushered in a new regulatory structure for the U.S. Postal Service. One key element was a price cap on market dominant products. (Most of the Postal Service’s products are market dominant.) This means that price increases for market dominant products are capped by the rate of inflation as measured by the Consumer Price Index (CPI). PAEA, however, does allow the Postal Service to increase its prices beyond the CPI cap under “extraordinary and exceptional circumstances.” The Postal Service makes the exception by filing an ‘exigent’ rate case to the Postal Regulatory Commission (PRC). Before the Postal Service can increase prices, the PRC must agree with the ‘exigent’ request and find it to be reasonable, equitable, and necessary.Read More
The economy has changed dramatically over the last 12 months. The Postal Service’s financial situation has changed, as well as its target markets and the fortunes and requirements of its customers. If the Postal Service gathers appropriate data to fully understand customers’ needs and desires, and offers relevant solutions, customers are more likely to choose the Postal Service as their primary supplier of mail products and services.Read More
A number of media news articles in the last year have examined reductions in Post Office retail hours around the country. They report that some Post Offices are cutting back or eliminating Saturday hours, opening late in the morning or closing earlier in the afternoon during the week.Read More
In a time when everyone is examining the dollars and cents of the postal business, people have a tendency to overlook the bigger picture: the greater role of the Postal Service in modern society.
With that in mind, the Postal Regulatory Commission requested the Urban Institute to study the Postal Service. The focus was not a traditional look at the business but a study of the benefits of the Postal Service and its infrastructure to the American population.
The abstract and the final report, both of which were released last week, cites “…the postal system has had a civic as well as an economic mandate that legislators and regulators interpret with changing times and circumstances in mind. An independent agency of the executive branch, the USPS opens access to information for preserving democracy, fostering commerce, and promoting the general welfare. It’s a public good and a great equalizer insofar as it serves rich and poor, urban and rural, young and old, unhealthy and hale.”Read More