On Wednesday, The Postal Regulatory Commission (PRC) denied the United States Postal Service’s request for rate changes on market dominant products. This is the second remand. The first occurred on March 6th.
We covered the first remand, which stated that the USPS didn’t meet several requirements and included errors and inconsistencies – many of which are required by title 39. In order No. 2398, released on Wednesday, the PRC stated that “because the Postal Service has not complied fully with applicable statutory and regulatory requirements and Order No. 2378, the Commission remands the revised price adjustments set forth in the Response for further revision, correction, and clarification.”
The PRC’s second analysis still discovered several of the same discrepancies that were found in the first filing for rate changes. The second remand focused on miscalculations in nonprofit and commercial pricing, the Flats Sequencing System (FSS), and other pricing issues.
In response to the PRC’s findings, the USPS does not plan to propose any price changes to Package Services. Instead, the Postal Service plans to revise its Package Services price cap calculation. According to Order No. 2378, the USPS calculates a revised Package Services total price adjustment of 1.947 percent. As a reminder, this is less than the price cap of 1.966 percent.
The USPS has also filed a Special Weight Report that would address concerns around the FSS. The USPS has until March 25th to make the PRC’s suggested changes.
More information on the second USPS remand can be found here.