The Commission strongly encourages the Governors to consider exercising their
business judgment, consistent with statutory and regulatory requirements, not to
increase rates by the full amount permitted by law. Participants in the docket presented
a number of reasons why rate increases below the legal limit may be appropriate for
business and public policy reasons. The Commission recommends that, in exercising
their discretion, the Governors heed the concerns of stakeholders, particularly in light of
the facts that: rate increases have occurred more frequently than occurred previously
and than may have been expected by the mail market when the ratemaking system was
modified in Docket No. RM2017-3; some of the effects from the most recent rate
increases in January 2024 have yet to occur, let alone be understood; and service
performance and efficiency have declined by historic levels, adding to the stress on the
mail market. This combination of stressors may be unprecedented in the history of the
Postal Service. In addition, as of March 2024, the Postal Service had liquidity of
$16.150 billion, including cash, cash equivalents, short-term investments, and available
borrowing authority.3
