Bill Overview
Title: Ensuring Accurate Postal Rates Act
Description: This bill directs the Postal Regulatory Commission to review and potentially modify the market-dominant ratemaking system rules in light of the USPS Fairness Act, which canceled unpaid U.S. Postal Service obligations.
Sponsors: Rep. Connolly, Gerald E. [D-VA-11]
Target Audience
Population: Individuals using postal services
Estimated Size: 300000000
- The bill primarily affects individuals and businesses that use postal services, as it relates to postal rates.
- Changes in postal rates can influence shipping costs, which can impact online commerce, small businesses, and individuals who send mail regularly.
- The United States Postal Service (USPS) is a major postal service provider, and changes to its pricing structures can have widespread effects on both national and international postal services.
Reasoning
- The target population is quite large, estimated at around 300 million Americans who either frequently use postal services for personal or business reasons.
- While the policy targets all postal service users, the actual impact may vary significantly depending on the specific ways individuals or businesses rely on USPS.
- The budgetary constraint suggests a focus on cost-neutral or cost-reducing measures to maintain USPS operations without significantly increasing rates, potentially mitigating substantial cutbacks or service reductions.
Simulated Interviews
Farmer (Rural Iowa)
Age: 62 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 7/20
Statement of Opinion:
- I rely heavily on USPS to send my produce to local buyers.
- Changes in postal rates could really squeeze my already tight margins.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 6 | 4 |
| Year 10 | 6 | 3 |
| Year 20 | 5 | 2 |
Small business owner (Los Angeles, CA)
Age: 34 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- Any adjustments to postal rates would affect my shipping costs directly.
- I hope the policy leads to fair rates that don't disrupt my business operations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 3 |
Freelance writer (New York, NY)
Age: 28 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 8/20
Statement of Opinion:
- I use USPS for mailing articles to clients, but rate changes shouldn't impact me much.
- If rates increase, I might switch to digital submissions more.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Non-profit manager (Seattle, WA)
Age: 46 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- Our operations can be heavily influenced by any postal rate increase.
- We rely on bulk mailing to reach our donors and stakeholders.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 3 |
| Year 5 | 5 | 3 |
| Year 10 | 5 | 2 |
| Year 20 | 4 | 2 |
Retired teacher (Austin, TX)
Age: 53 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- I mainly use USPS for family letters, so any price changes should be manageable.
- As long as basic letter costs don't rise significantly, I will be unaffected.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Banker (Chicago, IL)
Age: 39 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 12/20
Statement of Opinion:
- I mostly deal with electronic payments, so postal rate changes are less relevant.
- Occasional postal service for personal use won't affect me much.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 7 | 7 |
Stay-at-home parent (Phoenix, AZ)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 11/20
Statement of Opinion:
- USPS is my main channel for communicating with distant family.
- Reasonable rates help me stay connected; I hope the policy maintains this.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 4 |
Private tutor (Miami, FL)
Age: 31 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 9/20
Statement of Opinion:
- I predominately use digital methods but occasionally need to mail materials.
- I foresee little change unless there's a substantial rate hike.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 7 |
Entrepreneur (Boston, MA)
Age: 55 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 6/20
Statement of Opinion:
- Any increase in local delivery rates could reduce my competitiveness.
- I depend on USPS for affordable and reliable delivery services.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 4 |
| Year 5 | 5 | 4 |
| Year 10 | 5 | 3 |
| Year 20 | 4 | 2 |
Real estate agent (Orlando, FL)
Age: 60 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 14/20
Statement of Opinion:
- I barely use USPS, only for occasional document mailing.
- The policy doesn't seem to touch on my needs greatly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 5 | 5 |
Cost Estimates
Year 1: $15000000 (Low: $10000000, High: $20000000)
Year 2: $15000000 (Low: $10000000, High: $20000000)
Year 3: $12000000 (Low: $8000000, High: $16000000)
Year 5: $10000000 (Low: $5000000, High: $15000000)
Year 10: $2000000 (Low: $1000000, High: $5000000)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- Ensuring the USPS Fairness Act is adequately integrated in the new postal rate rules could prevent further financial duress on the USPS.
- The overall success of the policy heavily depends on accurately predicting postal service market conditions and requirements.
- Potential resistance or legal challenges from stakeholders benefiting from current postal rate structures may arise.