Postal Regulatory Commission Proposes Two New Ratemaking Rules

 

The Postal Regulatory Commission (PRC) has filed two orders, which presumably will benefit publishers by providing more predictable rate increases. 

Having determined that the system for regulating rates and classes for Market Dominant products is not achieving its objective, the PRC has proposed a phased system for revising the rate system, and is starting by recommending two changes:

  1. Restricting the Postal Service from adjusting Market Dominant rates more than once per year
  2. Restricting the Postal Service from setting workshare discounts farther away from their avoided costs

The News/Media Alliance has commented 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.”

 

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