PRC Releases Opinion on Five Day-Delivery- 03.11

Click here to see the PDF version of this document.

The Postal Regulatory Commission released its advisory opinion on five-day delivery today. The PRC found the Postal Service
overstated the potential savings from eliminating Saturday mail delivery and failed to consider the impact on rural communities.

The PRC estimates that net savings of $1.7 billion annually would be achieved after about a three-year USPS phase-in. The
Postal Service had estimated $3.1 billion in annual savings.

Click here for the PRC media release.

Click here for the PRC advisory opinion.

The USPS response is below.
 

Postmaster General Patrick R. Donahoe Reacts To
PRC Decision On Five-Day Mail Delivery

We have received the Commission’s advisory opinion on our proposal to move to a five-day delivery schedule. We have been awaiting
the document and look forward to studying the views expressed by the Commissioners. Five-day delivery is an integral part of our
action plan for the future.
It’s important to remember that the Postal Service came well prepared to this undertaking. Based on extensive outreach to our
customers and other stakeholders, we developed an operational plan, analyzed the potential cost savings and conducted extensive
market research to document customer reaction and estimate mail volume changes that could result from implementation of this plan.

Following tremendous losses in mail volumes and revenues, the Postal Service remains in the midst of a period of great financial
instability. On March 30, 2010, we presented a compelling case to the PRC, reflected in the testimony of Postal experts in operations,
marketing and finance, as well as a highly respected market research firm and academician. Their testimony demonstrated that the
plan would effect a $3.1 billion annual saving and allow the Postal Service to continue providing excellent service in an economical and
efficient manner.

The Commission’s opinion is advisory only and therefore, is not a final determination on the merits of our proposal. We remain
convinced of our findings. As such, we will also continue to press our case with the Congress on this matter.


Bruce Moyer

The Moyer Group
Tel: 301.270.8115
Fax: 301.270.8255
Cell: 301.452.1111
Email: brumoyer@verizon.net