Postal Service proposes an alternative pricing system that does not include a postage price cap

PRC 10-Year Review of Pricing System for Market-Dominant Products

3/20/17 – “The Postal Service filed comments today with the Postal Regulatory Commission (“PRC”) in connection with the PRC’s 10-year review of the pricing system for market-dominant products.  Because the current system is not achieving the objectives of the postal law, including the objective to ensure that the Postal Service is financially stable, the Postal Service has proposed an alternative pricing system that does not include a price cap.  Instead the PRC would be responsible for after-the-fact regulatory monitoring to ensure that the prices being charged by the Postal Service are just and reasonable.”


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USPS is offering comments on the 10-year pricing system review being conducted by the Postal Regulatory Commission (PRC).

Under a 2006 postal law, the PRC must review the system used for regulating rates and classes for market-dominant products, including First-Class Mail, USPS Marketing Mail and other mail categories.

The goal is to determine if the current system is meeting its objectives, which include enabling the Postal Service to be financially stable. If the current system is not meeting the objectives of the law, the PRC can modify it or adopt a new system.

In comments filed March 20, USPS recommended changes to the current system.

In a statement, the Postal Service wrote, “Because the current system is not achieving the objectives of the postal law, including the objective to ensure that the Postal Service is financially stable, the Postal Service has proposed an alternative pricing system that does not include a price cap. Instead the PRC would be responsible for after-the-fact regulatory monitoring to ensure that the prices being charged by the Postal Service are just and reasonable.”

Favorable resolution of the PRC’s pricing system review — along with enactment of postal reform legislation and continued aggressive management actions — are needed to restore USPS to financial stability, postal leaders say.

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