Caps On Mail Rate Hikes, Driving Efficiency Targeted In New Bill


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Elements of the bill, H.R. 9839, allow for penalties if the USPS doesn’t meet pricing, delivery and financial goals. That includes:

  • Holding the USPS accountable for improving efficiency by imposing an X-factor reducing rate authority if productivity is not improved each year.
  • Prohibits the PRC from creating a rate system with no price cap.
  • Holds the USPS accountable for service performance by reducing rate authority if it fails to meet established service targets.
  • Makes the PRC’s nature of service evaluations binding decisions, not just advisory opinions.
  • Limits rate increases to once per year.
  • Limits the imposition of “underwater surcharges” if service performance and cost efficiency are not maintained for the relevant products.
  • Requires the PRC to apply each objective for rate setting in every proceeding.
  • Creates a new volume-encouraging objective for evaluating rate increases.
  • Establishes an autonomous Office of Customer Advocate within the PRC to represent monopoly customer concerns with the power to initiate proceedings on their behalf.
  • Streamlines the PRC’s consideration of complaints.
  • Empowers the PRC to reduce rates for affected parties if it finds a rate is unlawful.
  • Requires the PRC to develop its own volume estimation model independent of the USPS.
  • Enables the USPS to invest retirement assets in private index funds such as those used by the Thrift Savings Fund.
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