The Postal Regulatory Commission (PRC) says the USPS has acted appropriately with its recent increases in postage.
The Postal Accountability and Enhancement Act of 2007 (PAEA) requires a 10-year review of the PAEA. Additionally, the House Committee on Appropriations requested a review of the size and timing of recent rate increases.
A 628 page report from the PRC , published on December 9, 2022, responds to Congress’s concerns about the increases. In the PAEA , the USPS was given an initial rate-making system. During a lengthy rulemaking process from 2016 to 2022 the PRC conducted the 10-year review of that system as required by the PAEA. The determination was that “the initial ratemaking system did not achieve the statutory objectives, taking into account the statutory factors.” The PRC found that the Postal Service’s operating environment changed due to the Great Recession, technological trends, and increased costs brought on by the PAEA. The result of those changes were the USPS failed to achieve medium and long-term financial stability, and failed to maintain high-quality service standards. As a result the PRC adopted a number of modifications to the ratemaking. The modifications were “designed to remedy the deficiencies of the initial ratemaking system and achieve all of the statutory objectives under the PAEA on balance.”
The PRC has committed to a second review in 5 years, and to review specific components of the system sooner that 5 years if necessary.
Additional Information HERE.