The Postal Regulatory Commission (PRC) filed two orders today. They announced a phased approach to revising the rate system and will issue multiple notices of proposed rulemaking. They determined the system for regulating rates and classes for Market Dominant products is not achieving its objectives of the Postal Accountability Enhancement Act.
A companion order made two proposals: (1) limit USPS to one Market Dominant rate increase per year for a 5-year period; and (2) prohibit reducing the absolute value of the difference between workshare discounts and the costs avoided by the worksharing.
The orders noted the Alliance comments five times. The Alliance asserted that the Postal Service’s current schedule of twice-per-year Market Dominant rate adjustments frustrates the achievement of the statutory objectives to create predictability and stability in rates and to reduce the administrative burden and increase the transparency of the ratemaking process.
Comments on the two proposals are due 30 days from the date of publication in the Federal Register of the proposed rules
