News & information

PRC publishes revised notice of proposed rulemaking

In early December, the Postal Regulatory Commission (PRC) issued a revised proposed rulemaking for the system that regulates the rates and classes of the Postal Service’s Market Dominant products. This follows an initial proposed rulemaking in December 2017 that was never implemented. The new proposal is based in part on comments received following the initial rulemaking. NALC’s comments figure prominently in the new filing. The notice is viewable here and the press release is viewable here.

The Postal Accountability and Enhancement Act (PAEA) of 2006 required the PRC to review the existing rate and classification system of Market Dominant products after ten years. The review’s mandate is to determine whether the legislated rate-setting system is achieving the objectives set forth in 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.” According to the PRC’s initial proposed rulemaking in December 2017, the system was not meeting these goals.

The first proposed rule, which would have liberalized the price cap to allow rates to rise by up to two percentage points more per year than the increase in the Consumer Price Index, was never finalized in part because of vacancies on the PRC. The last of those vacancies was recently filled.

NALC is pleased to see the PRC return to this important review. NALC is currently reviewing the proposed rulemaking’s impact and will fully participate in this process.  Our goal, as always, is to strengthen our nation’s universal postal service. Comments on the new proposed rulemaking will be accepted through February 3, 2020.