Postal Service Files Annual Compliance Report for FY2010

December 30, 2010 — The US Postal Service has filed its Annual Compliance Report (ACR) for the 2010 fiscal year.

After losing $8.5 billion last year, the USPS lost $173 million in the first two months of its 2011 fiscal year, which began October 1. Operating revenue increased 0.1% year-over-year for the two-month period to more than $11.7 billion. The report also indicates a loss of $456 million in November, with an increase in mail volume and operating revenue.

As was the case with past ACRs and its position in the Exigency case, the Postal Service continues to assert that a number of products are under water/do not cover their costs. The Postal Service continues to assert in this most recent Annual Compliance Report that a number of products including Standard Flats and Parcels as well as Periodicals fail to cover their costs and make a contribution to institutional costs.

DMA believes that the Service is in error and will likely file comments with the Postal Regulatory Commission akin to those it along other members of the Affordable Mail Alliance filed in the recent exigency rate case.

“To leave the Service’s claims unchallenged could ensure that future prices increase for these products are well above the overall averages permitted by the rate cap regime established in the 2006 reform act,” said DMA Senior Vice President of Government Affairs Jerry Cerasale. “This would be a setback for mailers who are just now beginning to recover from the economic downturn and for the Service’s efforts to regain mail volumes so vital to its economic well-being.”

To read the full Compliance Report, visit http://prc.gov/Docs/71/71432/FY10.ACR.Final.pdf.

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