On Petition for Review from the Postal Regulatory Commission,PRC Docket No. R2010-4

1. Whether the PRC’s refusal to allow the Postal Service to make any adjustment to postage rates in response to the “extraordinary and exceptional” volume declines in the recent recession was based on an erroneous construction of 39 U.S.C. § 3622.

2. Whether the PRC’s refusal was arbitrary and capricious because the Postal Service did not have notice of the PRC’s interpretation of § 3622.