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The U.S. Postal Service may need to file a new notice with the Postal Regulatory Commission (PRC) in order to justify a 1.4 cent-per-piece discount it wants to offer mailers in return for putting barcodes on certain standard mail pieces. This discount is part of the USPS’s proposed rate increases set for May, according to Commission documents.

The discount would only apply to standard mail mixed automation area distribution center (AADC) letters, the PRC said.

“The Commission finds the Postal Service’s proposed justifications inadequate,” according to the PRC’s Review of Postal Service Market Dominant Price Adjustment report. “First, the Postal Service’s concern that [such a] discount will not be enough to encourage mailers to pre-barcode is not persuasive.”

The PRC went on to say it is cheaper for the USPS, rather than individual mailers, to apply barcodes as further justification for its position. The PRC also disputed the USPS’s contention that encouraging more barcoding makes pieces more machinable, according to the report.

Last month, the USPS proposed postage rate increases, averaging 2.9%, which take effect in May.

Otherwise, the PRC had little fault to find with the proposed increases.

After a 20-day public comment and 14-day review periods, the PRC found the USPS’s proposed postal rate hikes, which are scheduled to take effect May 12, generally don’t go over levels mandated by the Postal Accountability and Enhancement Act.

“Based on a review of he notice and supporting materials, including public documents and updated information submitted by the Postal Service, the Commission finds that the planned price adjustments do not exceed the statutory Consumer Price Index-based price cap of 2.9% for the 12 months ended Dec. 2007,” according to a PRC statement.