Washington, DC – Today the Postal Regulatory Commission issued Orders 4875 and 4876 approving the Postal Service’s planned rate adjustments for both Market Dominant products and Competitive products respectively.
Rate increases for Market Dominant products must meet certain statutory and regulatory requirements, the most prominent of which is that such increases be no greater than the rate of inflation, as determined by the Consumer Price Index for All Urban Consumers. Conversely, the Postal Accountability and Enhancement Act requires, among other things, that rates for Competitive products must produce sufficient revenues to ensure they are not subsidized by Market Dominant products.
The Commission found that the rates for both classes of mail meet all statutory requirements and may take effect, January 27, 2019, as planned. The Commission also found that the planned classification changes, with the revisions set forth in Orders 4875 and 4876, are consistent with applicable law.
Select Market Dominant First-Class Mail rates will change as follows:
Select Competitive Product rates affected by the rate adjustment include:
Product: Priority Mail
Retail Small Flat Rate Box
Retail Medium Retail Flat Rate Box
Retail Large Flat Rate Box
Retail Large Flat Rate Box APO/FPO/DPO
Retail Regular Flat Rate Envelope
Retail Legal Size Flat Rate Envelopes
Retail Padded Flat Rate Envelopes
The Commission’s complete analyses of the Postal Service’s Market Dominant and Competitive rate adjustments for calendar year 2019 are located at www.prc.gov in Docket Nos. R2019-1 and CP2019-3, respectively.
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Washington, D.C. – Today, the Postal Regulatory Commission (Commission) issued its findings related to the statutorily mandated review of the system for regulating rates and classes for Market Dominant products that was first established in 2006 by the Postal Accountability and Enhancement Act (PAEA). The law required the Commission to review the past 10 years of the existing market dominant rate and classification system to determine if the system achieved the nine objectives, considering the 14 factors, established by Congress. The objectives reflect the goals of the PAEA to create a flexible, stable, predictable, and streamlined ratemaking system that ensures the Postal Service’s financial health and maintains high quality service standards and performance. Continue reading →
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03/25/2017 – The American Postal Workers Union (APWU) submitted comments before the March 20 deadline to the Postal Regulatory Commission (PRC) for their ongoing “10 Year Rate System Review,” required by Congress in the 2006 Postal Accountability and Enhancement Act (PAEA). The Commission is reviewing the effects of the current rate system, capped by the Consumer Price Index (CPI), to see how it impacts the Postal Service’s ability to meet the objectives stated in the PAEA. The PRC requested comments from stakeholders, including the public, about the Postal Service’s rate setting system. Continue reading →
The Postal Regulatory Commission’s (PRC) required 10-year review of the way the U.S. Postal Service sets its prices for postage and postal products is underway, with NALC making an official submission to the agency before the public comment window closed on March 20.
Chief among NALC’s recommendations is that the PRC should eliminate the price cap on so-called “market dominant” products such as First Class Mail. The cap has failed to provide the means to achieve the most important objective of the 2006 Postal Accountability and Financial Act (PAEA): financial stability for USPS. Continue reading →