Dear Member:

Today, the Postal Regulatory Commission (PRC) approved all price changes proposed by the US Postal Service for both market dominant and competitive mail products and services. Some noteworthy highlights:

  • The overall 2.482% increase for the Marketing Mail class was approved.
  • Some previous Carrier Route Flats worksharing discounts exceeded their avoided costs, which led the PRC to require the USPS to either align the discounts with their avoided costs during this price adjustment, or provide support for an applicable statutory exception. In the case of the pallet discount in Carrier Route, t​he Postal Service opted for support from the operational efficiency statutory exception, saying that the current cost avoidance model excludes allied and platform cost avoidances. The PRC said that due to the compressed nature of this proceeding, it is unable to review the merits of this claim.  The PRC wants the USPS to align these discounts with their avoided costs as identified in the existing cost avoidance models or file a proposal to modify the models before they are used.
  • The 10% First Class stamp rate increase from 50 to 55 cents was approved.

To view the complete PRC filings, click here for the Market-Dominant notice and here for the Competitive Products notice.

© 2018 American Catalog Mailers Association, Inc. This recap is prepared exclusively for ACMA members. To protect the integrity of your membership, do not distribute this report outside of your company.