PRC Commences First Broad Review of Postal Ratemaking System

Washington, DC – Today, the Postal Regulatory Commission (Commission) begins its review of the system for regulating rates and classes for Market Dominant products that was first established in 2006. The law requires that the Commission begin its review of the current rate system ten years after the date of enactment of the Postal Accountability and Enhancement Act, to determine whether it’s achieving the objectives established by Congress. If the Commission finds that the objectives, taking into account the factors, are not being met, it has the authority to either propose rules that modify the system or adopt an alternative system to achieve the objectives. Order No. 3673 outlines the parameters and timing by which the Commission will complete its review.

The Commission’s review will engage in a comprehensive evaluation of all aspects of the ratemaking system provided within 39 U.S.C. 3622, including:

  • The annual limitation on the percentage changes in rates
  • The schedule for rate changes
  • The 45-day notice before the implementation of rate adjustments
  • Expedited rate changes due to extraordinary or exceptional circumstances
  • Class level application of the annual limitation
  • The rounding of rates and fees
  • The use of unused rate authority
  • Worksharing discounts

Comments are due no later than March 20, 2017. Reply comments will not be accepted. The Commission has placed a link entitled, “10 Year Rate System Review” on the homepage of its website, www.prc.gov, to simplify comment filing for members of the general public.