USPS, PRC Play Numbers Game

The U.S. Postal Service is firing back over a recent report downplaying its estimated savings that would result from moving to a five-day delivery schedule.

In a report sent to Congress on Monday, USPS refuted recent findings that cutting Saturday delivery would result in just half of an estimated $3.1 billion in savings. The agency, which has been pushing for the flexibility to alter delivery frequency as a cost-cutting measure, has stated that dropping from six to five days would save $3.1 billion annually, while the Postal Regulatory Commission in March issued an advisory opinion on the issue, citing just $1.7 billion in annual savings.

According to the PRC, the Postal Service overestimated potential savings and underestimated potential losses in revenue associated with dropping Saturday delivery. The actual savings would occur only after three years, the opinion stated.

In its report, the Postal Service questioned the PRC's assumption that cutting delivery would result in minimal improvements in efficiency. The PRC's estimate is "is contradicted by the overwhelming weight of expert testimony ... [and] falls short of the requirement that it be based on substantial record evidence," the report states. In addition, USPS said its original estimate does account for the needs of customers and rural areas.