Future of USPS processing center in North Platte unclear

One of several massive changes being made within the USPS, the North Platte Processing and Delivery Center (P&DC) is slated to close its doors. This decision, however, is currently on hold.
On March 28, a meeting was held at the Sandhills Convention Center in North Platte. This meeting was required by law but it is unclear whether the details of the meeting were published anywhere that the public could access. Despite this, nearly 300 people were present–ranging from USPS employees, local business owners and community members. United States Senators Deb Fischer and Pete Ricketts were in attendance also, as well as the Mayor of North Platte Brandon Keliher. Several news outlets attended to provide coverage of the proceedings.
Two USPS representatives were present to conduct the meeting–Sr. Division Director for the USPS, Kathy Hand, and Strategic Communications Manager Communications, Mark Inglett.
The meeting began with a presentation outlining the USPS’ plan for the P&DC in North Platte and for the Postal Service, in general. After the presentation, the floor was opened to questions. Around 45 people gave questions and comments but–according to those in attendance–not many many answers were given and the attitude of the USPS representatives seemed defensive.
The transfer of North Platte’s Processing and Delivery Center to Denver is one of about 60 P&DC transfers planned across the country as part of USPS Postmaster General Louis DeJoy’s 10-year, $40 billion dollar “Delivering For America” (DFA) plan. This plan was published in 2021 and focuses on how to turn around the financial losses that the service has been experiencing. In the last 14 years, the USPS has recorded $87 billion in losses and has failed to meet its own delivery standards for much of that time, as well.
According to the DFA plan, there are a few major reasons for the massive financial losses and failing service standards. COVID-19 is noted as a contributor. Processing centers were hit hard and fundamentally changed how many use the Postal Service.
During the pandemic, flat mail volume significantly decreased while package volume increased exponentially. According to the USPS Annual Report in 2020, “mail volumes declined precipitously as marketers restrained from spending and adapted to changes in consumer behaviors. Package volumes rapidly increased as people minimized in-person shopping and ordered goods delivered to their homes”. USPS facilities were designed to handle mostly flat mail and are not typically equipped for a high-volume of packages. In the DFA plan, one of the goals is to update facilities to reflect this change.
Another problem identified in the DFA plan was the Postal Accountability and Enhancement Act (PAEA) of 2006. This piece of legislation ensured that the price increase of postal services could not exceed the rate of inflation. However, it also “compelled the USPS to pay in advance for the health and retirement benefits of all its employees for at least 50 years”. This, according to USPS estimates, is responsible for $54.8 billion in losses between 2007 and 2016. In 2022, the Postal Service Reform act was passed and reversed the pre-funding order. This has definitely helped the Postal Service’s financial problems but has not fixed it.
The DFA plan outlines many changes that the Louis DeJoy and the Postal Service plan to make. Many have questioned some of the changes–including the plans for the Processing and Delivery Centers.
During the meeting discussing the P&DC in North Platte, the USPS representatives assured attendees that the move to Denver would save money and improve service. They estimate that the change would save $1.0-$1.3 million in transportation costs, $300-$400 thousand in maintenance costs, $60-$80 thousand in mail processing costs and $90-$120 thousand in management costs annually. However, many do not see how this is possible and the numbers are not broken down in any of the USPS documentation.
The plan, currently, is to move Processing and Delivery Center operations in North Platte to Denver and shift North Platte’s facility to a Local Processing Center (LPC). This means that only local mail would be processed in North Platte. The meaning of “local mail” is not completely clear and questions to the USPS are met with no clarity but most assume this means mail to ZIP codes 69101-69103. All other mail would go directly to Omaha or Denver. This move is currently on hold due to a letter signed by multiple U.S. Senators.
On May 8, Senator Deb Fischer and Senator Pete Ricketts joined 24 other Senators in signing a letter to Postmaster General DeJoy urging him to pause the DFA plan. DeJoy has agreed and now the plan for the North Platte P&DC is currently on hold. It is unclear how long this will last or what will happen next.