FILE PHOTO: A United States Postal Service (USPS) truck is seen in the rain in Manhattan during the outbreak of the coronavirus disease (COVID-19) in New York City, New York, U.S., April 13, 2020. REUTERS/Andrew Kelly
The Postal Service is on track to receive more pricing flexibility for its mail rates, a move that its leadership says will put the agency on firmer financial footing.
The Postal Regulatory Commission released a final rule Monday that would keep a price cap on market-dominant products like first-class mail, but would base the cap on changes in mail density and retirement costs.
The PRC found these variables remain out of the Postal Service’s control, and should be considered to help the agency cover its operating costs. USPS reported its market-dominant products accounted for about 58% of its annual revenue in fiscal 2020.
The final rule from the PRC wraps up a 10-year review of the USPS rate-setting system under the 2006 Postal Accountability and Enhancement Act, the last major postal bill Congress approved.