Alliance of Nonprofit Mailers v. PRC, No. 14-1009 (D.C. Cir. 2015)
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The Postal Service and others sought review of the Commission's order (Order 1926) where the Commission agreed that the recession that started in 2008 was an “extraordinary or exceptional circumstance” that warranted some rate increase, but the Commission only
permitted the Postal Service to recover $2.8 billion in lost revenue. Applying a deferential standard of review, the court upheld most of Order 1926 as neither arbitrary nor capricious, and as supported by substantial evidence. However, the court reversed the Commission’s determination that lost mail volume can only be counted for one year, as the rationale that the Postal Service should have been able to identify and adjust to that downturn immediately is at war with the Commission’s “new normal” holding, which openly endorsed a longer period of time for such adjustments. According, the court granted the Postal Service’s petition for review in part, vacated the “count once” portion of the Commission’s order, and otherwise denied the petition. The court also denied the Mailers’ petition for review. The case is remanded for further proceedings.
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