What is an Exigent Rate Case?
The new postal law recognized that the Postal Service might need to raise market-dominant prices above the CPI-U price cap due to extraordinary or exceptional circumstances. In such circumstances, the Postal Service may file a proposal with the Commission for an “exigent” rate increase. Among other requirements, the Postal Service proposal must:
- Describe the exigent circumstances and show why they necessitate the increase,
- Show that the proposed rates are reasonable and equitable, and
- Describe circumstances under which the increases could be rescinded or reduced.
Upon receiving an exigent rate proposal from the Postal Service, the Commission will establish a docket, provide for public comment and conduct a hearing on the record. Interested parties may suggest relevant questions to the Commission that might be posed during the hearing. The Commission will issue its decision within 90 days of the Postal Service filing.