Page 9 - Postal Magazine Final
P. 9
WHAT IS THE PRC’S LEGACY?
IN THEIR
OWN WORDS:
PRC PERSPECTIVE
Mark Acton (R) Tony Hammond (R)
Commissioner Vice Chairman
“This proposal is no more “
“Many of the than a starting point. All The changes proposed
Postal Service’s the Commissioners agree in this Order essentially
greatest challenges that some change is needed constitute a return to the
to the ratemaking system.
are not a primary But, we disagree on the Postal Reorganization Act
result of the rates exact changes that would (PRA)’s cost-of-service
be most prudent . . . I am
that it charges its hopeful that, with the input rates, but without any
customers and of all stakeholders, the of the protections of the
partners.” Commission can arrive at a PRA framework. The PRA
balanced resolution to this
review process.” afforded the Postal Service
the ability to recover all
its costs through price
increases, but accordingly
made it forgo pricing
flexibility and subjected it
to significant regulatory
scrutiny. The [subsequent]
PAEA freed up the Postal
Service’s flexibility to set
Nanci E. Langley (D) Robert G. Taub (R) prices as it sees fit. But,
Commissioner Chairman
it also simultaneously
imposed the constraint of an
overall price cap to protect
“I continue to believe
that the PAEA [Postal customers. The changes
Accountability and “First and proposed in this Order
Enhancement Act]
performed as Congress foremost, the would grant the Postal
intended—providing Service the benefits of both
the Postal Service with financials need systems and require of it the
certain pricing flexibilities, to be fixed.” sacrifices of neither.
the mailers with pricing “
predictability and stability, - TONY HAMMOND
and the regulator with
enhanced authority.”
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