The PRC has been active with several new dockets and rulings of impact. Below is a summary with a status update on four of them.
RM2024-4 – Statutory Review of the System for Regulating Rates and Classes for Marketing Dominant Products to determine if the ratemaking system is achieving the objectives appearing in 39 U.S.C. § 3622(b), considering the factors in 39 U.S.C. § 3622(c).
- 4/5/2024 –The review of the effects from PRC final rule 5763, which gave USPS additional rate factors such as density, non-compensatory, and retirement, is initiated.
- 6/09/2025 – PRC issues Order Nos. 8891, 8892, and 8893, which outline their intention to use a phased approach with their findings.
- Phase one identifies why the changes are needed, noting that the current rate-making system does not meet the objectives and factors of the law.
- Phase two proposes two changes (1) restricting the Postal Service from adjusting Market Dominant rates more than once per year for the next five years, and (2) restricting the Postal Service from setting workshare discounts farther away from their avoided costs.
- This would generally limit USPS to one price increase annually during their fiscal year of Oct 1 – Sept 30, to go into effect this October 1st, 2025.
- Second, the Commission proposes to restrict the Postal Service from setting workshare discounts farther away from their avoided costs.
- 7/7/2025 – PRC grants request for extension of time for comments until July 28th, with reply comments due then by August 7th, 2025.
IMPORTANT IMPACT – beginning in 2026 the USPS may be restricted to only ONE price increase per year, and mailers performing workshare activities like sorting to 5D in First-Class Mail, may have the spread from AADC protected.
MC2025-1483 – Modify Product Descriptions of First-class Mail, USPS Marketing Mail and Periodicals.
- 6/11/2025 – USPS files a proposal to create zone pricing for origin-entered Marketing and Periodical mail. Additionally, they wish to change the workshare benchmark between DSCF and DDU and remove the workshare between the origin to SCF.
- This would be impactful to drop ship discounts, allowing USPS to set pricing outside of workshare rule constraints.
- The USPS would like to make these changes in alignment with a January 2026 price change.
- USPS has asked the PRC to provide approval within sixty days.
- Comments are still coming in.
IMPORTANT IMPACT – Zoned pricing presents challenges and opportunities for business mailers. Pricing for postal provided transportation will be based on the location of the mailer facility in proximity to end location for MM and Periodicals.
MC2025-948 – Removing Bound Printed Matter from Market Dominant Product List.
- 12/20/2024 – USPS files to eliminate BPM flats/parcels.
- 6/25/2025 – Order 8937 – PRC denies request to eliminate BPM but does approve changes to weight limits for USPS Marketing Mail.
- This would allow USPS to raise the maximum weight of Marketing Flats from 16oz to 20oz and 24oz for Carrier Route, for flat pieces under ¾ inch thick.
- This change will not happen until USPS initiates the next rate change, so MM remains at 16oz and all above as BPM flats.
- This limits the ability for BPM catalogs to participate in the 10% catalog promotion.
IMPORTANT IMPACT – The verdict from the regulator allows for Bound Printed Matter to continue pricing under Market Dominant constraints, and doesn’t force the move of non-marketing materials to competitive categories.
N2024-1 – Operational and Service Standard Changes Related to the DFA.
- 10/04/2024 – USPS requests an advisory opinion on changes proposed for service measurement.
- Multiple technical conferences, testimony, interventions, and comments.
- 1/25/2025 – PRC issues its advisory opinion.
- The Commission found that the Postal Service is irreversibly changing its network without laying a foundation for success, and the proposal has significant negative impacts on rural communities throughout the United States.
- 2/26/2025 – USPS announces plans to move forward with service measurement changes.
- Changed from 3D to 3D, using 5d to 5d measurement.
- Regional Transportation Optimization (RTO); changing pick-up schedules from twice a day to once a day for postal facilities greater than fifty miles from their Origin Regional Processing Distribution Center
RPDC.
- 4/1/2025 – Phase one moves forward with new CETs and RTO processes in place.
- 7/1/2025 – Phase two begins expanding the service bands for FCM.
- With the implementation of both phases it is expected 83% of Market Dominant mail will see no change in service, with 6% seeing a downgrade and 11% seeing an upgrade. Service Standard Maps can be located at https://www.usps.com/service-standards/
IMPORTANT IMPACT – With changes to Critical Entry Times (CETs) for First-Class mail, the reported impacts from USPS are under-reported. The final customer experience of on time may be impacted by an additional day.
For more information on these topics or other postal issues, contact GrayHair Software at engage@grayhairsoftware.com
