Study), in FY 2014, the latest year data are available, the nation’s mailing industry employed 7.5 million workers and generated $1.4 trillion in revenues. February 24, 2017 EMA Comments at 2. The EMA study states: [A]lmost 85 percent of mailing industry jobs depend[] upon the delivery sector, of which the USPS is the center. However, if one analyzes further between the public and private sector components of the delivery network (i.e. separating the USPS from its private sector competitors), the dependence of the US economy on the USPS becomes even clearer. Some 6.9 million private sector jobs depend on the 617,000 jobs of the USPS. This distribution of jobs impact clearly (as would a similar comparison of revenues) that the Postal Service's importance to the economy is substantially greater than one might assume if the Postal Service were examined in isolation. Id. at 6. At the other extreme, however, the Commission determines that it would be inappropriate to design a system that lacks a mechanism to limit the magnitude of price adjustments. Such a mechanism is necessary to create predictability and stability, as required by Objective 2. Order No. 4257 at 103; 39 U.S.C. 3622(b)(2). The Commission finds, as discussed further below, that additional pricing authority is necessary to achieve the objectives of the PAEA. The Commission seeks to complement, rather than replace, the CPI-U price cap by providing discrete, defined amounts of additional rate authority. This additional rate adjustment authority is designed to put the Postal Service on the path toward generating positive net income and retained earnings. Accordingly, the Commission aims to design a ratemaking system that will put the Postal Service on the path to financial stability required by Objective 5 in a way that is consistent with the other objectives, such as Objectives 1 and 3, of the PAEA. Below the Commission describes its methodology to determine the amount and mechanism to provide that additional rate adjustment authority.
Study), in FY 2014, the latest year data are available, the nation’s mailing industry employed 7.5 million workers and generated $1.4 trillion in revenues. February 24, 2017 EMA Comments at 2. The EMA study states: [A]lmost 85 percent of mailing industry jobs depend[] upon the delivery sector, of which the USPS is the center. However, if one analyzes further between the public and private sector components of the delivery network (i.e. separating the USPS from its private sector competitors), the dependence of the US economy on the USPS becomes even clearer. Some 6.9 million private sector jobs depend on the 617,000 jobs of the USPS. This distribution of jobs impact clearly (as would a similar comparison of revenues) that the Postal Service's importance to the economy is substantially greater than one might assume if the Postal Service were examined in isolation. Id. at 6. At the other extreme, however, the Commission determines that it would be inappropriate to design a system that lacks a mechanism to limit the magnitude of price adjustments. Such a mechanism is necessary to create predictability and stability, as required by Objective 2. Order No. 4257 at 103; 39 U.S.C. 3622(b)(2). The Commission finds, as discussed further below, that additional pricing authority is necessary to achieve the objectives of the PAEA. The Commission seeks to complement, rather than replace, the CPI-U price cap by providing discrete, amounts of additional rate authority. This additional rate adjustment authority is designed to put the Postal Service on the path toward generating positive net income and retained earnings. Accordingly, the Commission aims to design a ratemaking system that will put the Postal Service on the path to financial stability required by Objective 5 in a way that is consistent with the other objectives, such as Objectives 1 and 3, of the PAEA. Below the Commission describes its methodology to determine the amount and mechanism to provide that additional rate adjustment authority. defined