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Postal Regulatory Commission Activity

Key active dockets and proceedings at the Postal Regulatory Commission (PRC) that generate substantial interest among USPS commercial mailers, logistics partners, and industry advocacy groups focus on rate structures, network transformations, service performance, and market compliance.

Impactful ones today include:

  • Market Dominant Price Adjustment & Schedule Shift R2027-1
  • Context: The Postal Service filed a motion requesting a partial waiver of PRC rules regarding density rate authority calculation and timing. USPS seeks to shift its annual Market Dominant price adjustments from a July cycle back to a traditional January cycle starting in January 2027.  Because formal density authority normally requires full-year audited data from the March ACD report, USPS proposes utilizing a modified blend of actual YTD data and Q4 forecasts with a 5% safety margin.  
  • What’s Next: The Commission is evaluating the initial public comments to rule on whether to grant the partial procedural waiver.
    • USPS asked for a response by August 16th, but the PRC is not required to follow that timeline.  
  • Context: In early July USPS requested approval to modify the Mail Classification Schedule (MCS) by adding National Change of Address Plus (NCOA+) to the Market Dominant Address Management Services list.  Initially USPS was denied this request when submitted with the July 2026 price change. The PRC determined that this required formal public notice and dedicated regulatory review. 
  • What’s Next: Public comments were initially due in late July 2026, but the PRC has extended the deadline to be August 11th, after which they will review to reach a decision.  
    • USPS has asked for an expedited timetable so that they can implement it on October 4th, 2026.  PRC is not required to meet that deadline.
  • Market Dominant Rate Authority & System Review RM2024-4
    • Context: The 2006 Postal Accountability and Enhancement Act (PAEA) directed the PRC to review the rate making process in a 5-year review. The rule that review generated allowed USPS beginning in 2020 to raise prices above the Consumer Price Index (CPI) using additional factors (e.g., density, retirement and non-compensatory rate authority),  Additionally, it also required a 5-year review of the results of that 2020  rule. 
  • That review is still underway but has initially generated two new rules.
      • USPS can only raise Market Dominant prices once each fiscal year 
      • USPS cannot reduce a workshare discount % below its current % if it is within the band of 85% – 100% already.
  • What the USPS has asked the PRC for: Modification of the Market Dominant ratemaking system through the elimination of the price cap and adoption of a regulatory monitoring ratemaking system in order to achieve the objectives of forging a sustainable path to financial stability; (Industry opposes)
    • Alternatively, if the price cap is maintained, they have asked for a re-baselining of the rates to ensure they are compensable while also maintaining adjustment factors to ensure that the system is flexible enough to deal with economic circumstances that may arise; they asked for +22% to use over a 5-year period. (Industry opposes)
  • What’s Next: The PRC has informed the USPS and industry that they are going to create additional rules and changes but have not provided a date.
    • This could mean changes to the density factor, changes to CPI cap, possible service incentives or more.
  • Service Performance Measurement (SPM) System Review RM2024-9
  • Context: The PRC is evaluating the accuracy, reliability, and coverage of USPS’s internal Service Performance Measurement system. The inquiry examines how performance is tracked across First Mile collection, Processing Duration, and Last Mile delivery segments.
  • What’s Next: The PRC are analyzing submitted comments focused on evaluating whether the Postal Service’s proposed SPM modifications can achieve reliable, accurate, and representative measurement down to the 5-Digit to 5-Digit ZIP Code pair level.
    • The Commission’s immediate formal next step is issuing a Notice of Proposed Rulemaking (NPRM) to outline specific proposed changes to PRC reporting rules and set updated accuracy and granularity standards for the USPS to report.  After comments and review they will issue a final rule.

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