Latest News and Highlights  

Mail-Industry Leaders File Joint Comment in Opposition to Massive Postal Rate Increases. On March 1, 2018, MPA - the Association of Magazine Media, the Alliance of Nonprofit Mailers, the Association for Postal Commerce (PostCom), Idealliance and the American Catalog Mailers Association filed a public comment with the Postal Regulatory Commission (PRC) in response to the 10-year review proposal that would dramatically increase postage rates for some classes of mail by as much as 40 percent.  

The American Mail Alliance Files CommentsOn February 28, 2018, an unprecedented coalition of more than 50 leading associations, companies, nonprofits, magazines, newspapers and other stakeholders joined forces as the American Mail Alliance to advocate for a common sense approach to setting new postal rates, promoting the long-term health and success of the United States Postal Service (USPS), and opposing the radical postal rate increases proposed by the Postal Regulatory Commission (PRC). The coalition has come together as the PRC takes the next step in its 10-year review of postage pricing. As part of that process, the PRC has proposed a dramatic increase in postage rates by as much as 40 percent over five years. American Mail Alliance members argued that the PRC’s proposal will do lasting harm to the Postal Service and ultimately to the American people. Such a dramatic increase in rates will put many mailers – such as nonprofits – out of business.

PRC issues ruling in Appropriate Share Docket RM2017-1. The Postal Regulatory Commission issued a ruling in RM2017-1, Institutional Cost Contribution Requirement for Competitive Products. The Commission's order would replace the current 5.5% minimum requirement with a formula based approached that would update the requirement annually based on information provided in the PRC's Annual Compliance Determination. The proposed approach uses two components to annually capture changes in the market and the Postal Service’s position in that market: the Postal Service Lerner Index and the Competitive Market Output. The Lerner Index purports to measure a firm’s market power by comparing its prices with its unit costs.  

PRC Issues 2017 Annual Report to the President and Congress. The Postal Regulatory Commission (Commission) released its Annual Report to the President and Congress summarizing the activities undertaken by the Commission during Fiscal Year (FY) 2017. Each year, the Commission is required to address in its report information concerning the operations of the Commission, including the extent to which regulations are achieving the rate-setting objectives of the Postal Accountability and Enhancement Act (PAEA). 

U.S. Postal Service Files Annual Compliance Report Postal Accountability and Enhancement Act, today the Postal Service filed its Annual Compliance Report (ACR) with the Postal Regulatory Commission (PRC). The ACR is used to determine that the Postal Service is in compliance with the relevant statutory and regulatory requirements that govern USPS pricing and costing. It includes detailed information on product volumes, revenues, and attributable costs as well as the cost avoidance estimates used to develop workshare passthroughs. Given the proposed changes to the PRC’s system of regulating USPS rates, these estimates take on particular importance.  Accompanying the report itself is an extensive set of USPS workpapers and technical appendices which can be found here.

Postal Regulatory Commission (PRC) issues ruling in Ten-Year Regulatory Review On December 1, 2017, the Postal Regulatory Commission (PRC) issued the long awaited ruling in R2017-3: Statutory Review of the System for Regulating Rates and Classes for Market Dominant Products. The Postal Accountability and Enhancement Act (PAEA) stipulated that after ten years, the PRC was required to conduct a review of the ratemaking system established under PAEA to determine if the goals of the legislation were being met. According to the PRC the current system is not meeting the objectives of PAEA. As a result, the PRC is initiating a notice of proposed rulemaking (NOPR) that includes the following: Retention of a price cap based system;  USPS gains additional 2% pricing authority above CPI for next 5 years after which the PRC will evaluate the financial health of USPS; USPS may gain additional 1% pricing authority if service and operational targets are met; Products that are not covering attributable costs must have price increases at least 2% more than the average for their class; For periodicals all workshare passthroughs must be between 75% and 125%; For all other products passthroughs must be between 85% and 115% and Non-compliant workshare discounts will be subject to a three year grace period.   Op-Ed Written by Michael Plunkett, PostCom President & CEO   PostCom's Summary of the Decision  

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Five Things You Need to Know

1. U.S. Postal Service Reports First Quarter 2018 Results

2. U.S. Postal Service Issues 2018 Financial Plan 

3. Industry Associations Release 2018-2020 Mail Supply Chain Strategic Plan

4. STOP Act - Permanent Subcommittee on Investigations issue Report and hold Hearing

5. USPS Move Update compliance will change to a Census based approach






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