USPS and the industry representing bulk mailers filed legal challenges as soon as the price increase took effect, with mailers challenging the recession’s justification for higher rates and the post office — which had pressed regulators for a 6 percent increase — arguing that the hike should be permanent.
The U.S. Court of Appeals for the District of Columbia Circuit ruled that the emergency rates should not become permanent. The aftereffects of the recession have become “the new normal,” the ruling said — and the Postal Service must adjust to that reality.
“The Commission sensibly concluded that the statutory exception allowing higher rates when needed to respond to extraordinary financial circumstances should only continue as long as those circumstances, in fact, remained extraordinary,” Circuit Judge Patricia Ann Millet wrote on behalf of the appeals court. “The Commission permissibly reasoned that just because some of the effects of exigent circumstances may continue for the foreseeable future, that does not mean that those circumstances remain ‘extraordinary’ or ‘exceptional’ for just as long.”
But the court also said the Postal Regulatory Commission had acted arbitrarily in calculating that postal officials should collect about $3 billion from the rate increased, and told the commission to re-examine its methods. As of Friday, it was unclear when the rates will be rolled back and by how much.