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Latest News and HighlightsA Next-Generation Proactive Postal Regulatory System On May 22, a white paper was released by the Consumer Postal Council the is intended to be central for the start of in-depth public policy discussions about the future of the Postal Regulatory Commission. Contributors of the white paper include:
House Oversight Committee Holds Hearing On May 17th, the House Subcommittee on Government Operations and the Federal Workforce held a hearing titled “Tracking the Postal Service: An Update on the Delivering for America Plan” to receive updates from United States Postmaster General Louis DeJoy on the United States Postal Service’s finances, performance, and efforts to modernize. Oversight Committee members asked for updates and brought transparency to the Postal Service’s ongoing improvements to ensure that it continues to efficiently serve the American people. PRC Releases Report and Dashboard Analyzing Postal Service’s FY 2022 Finances On May 17th, the Postal Regulatory Commission released its Financial Analysis report, an in-depth evaluation of the overall financial position of the United States Postal Service in Fiscal Year (FY) 2022. With this year’s Financial Analysis report, the Commission introduces a fully accessible Financial Report Dashboard with downloadable data that provides a visual snapshot of key components of its analysis, including balance sheet and mail volume trends from 2007 to 2022. USPS Postal Inspection Service Roll Out Expanded Crime Prevention Measures On May 12, the United States Postal Service (Postal Service) and United States Postal Inspection Service (Postal Inspection Service) announced expanded actions to protect Postal employees and the security of the nation’s mail and packages as threats and attacks on letter carriers and mail fraud incidents have escalated concurrently with a national rise in crime. Incidents of letter carrier robberies are on the rise across the nation. In FY22, 412 USPS letter carriers were robbed on the job. With 305 incidents reported in the first half of FY23, these incidents are increasingly more prevalent. Expanded Project Safe Delivery actions include: Reducing Letter Carrier Robberies and Mail Theft, Preventing Change of Address Fraud and Defeating counterfeit postage. USPS Announces New Product - Ground Advantage On May 10th, the U.S. Postal Service proposed pricing for its new product offering, USPS Ground Advantage. Pending favorable review and comments from the Postal Regulatory Commission (PRC), USPS Ground Advantage would launch on July 9. USPS Ground Advantage will feature:
Published prices for USPS Ground Advantage will decrease 1.4 percent relative to current Parcel Select Ground and First-Class Package Service pricing. USPS Ground Advantage Retail prices will decrease 3.2 percent and USPS Ground Advantage Commercial published prices will decrease 0.7 percent. U.S. Postal Service Reports Second Quarter Fiscal Year 2023 Results On May 9th, the USPS reported their financial results for the second quarter of fiscal year 2023 (Jan. 1, 2023 - Mar. 31, 2023). On a generally accepted accounting principles (GAAP) basis net loss for the quarter totaled $2.5 billion, an increase in net loss of $1.8 billion, compared to a net loss of $639 million for the same quarter last year. On a non-GAAP basis, adjusted loss was $498 million, compared to adjusted income of $427 million for the same quarter last year. Total operating revenue was $19.3 billion for the quarter, a decrease of $484 million, or 2.4 percent, compared to the same quarter last year. PRC Initiates Public Inquiry Proceeding to Gather Information on Changes to the Postal Network On April 20th, the Postal Regulatory Commission announced it established Public Inquiry Docket No. PI2023-4 (PI2023-4) to provide a forum to gather information, provide transparency, and learn more about the Postal Service’s Delivering for America strategic initiatives that may have a significant impact on the postal community. Interested parties who wish to propose questions regarding the planned initiatives associated with the Postal Service’s Strategic Plan, may do so via Docket PI2023-4 by filing motions seeking information requests following the procedures of 39 CFR part 3010.170(e). USPS Files for Price Increase Effective July 9, 2023. On April 10th, the United States Postal Service filed notice with the Postal Regulatory Commission (PRC) of mailing services price changes to take effect July 9, 2023. If favorably reviewed by the Commission, the proposed increases will raise First-Class Mail prices approximately 5.4 percent to offset the rise in inflation. The price for 1-ounce metered mail will increase to 63 cents, and the price to send a domestic postcard will increase to 51 cents. A 1-ounce letter mailed to another country would increase to $1.50. There will be no change to the single-piece letter and flat additional-ounce price, which remains at 24 cents. The Postal Service is also seeking price adjustments for Special Services products including Certified Mail, Post Office Box rental fees, money order fees and the cost to purchase insurance when mailing an item. The price changes have been approved by the Governors of the U.S. Postal Service.
PRC Releases the FY 2022 ACD. On March 29, the Postal Regulatory Commission released the Annual Compliance Determination for Fiscal Year 2022, assessing the Postal Service’s compliance with rates and service performance. The Commission is required to issue its Determination 90 days after the filing of the Postal Service’s Annual Compliance Report (ACR) (39 U.S.C. Section 3653). This review reflects the new pricing rules for Market Dominant products adopted in FY 2021, including rate authority mechanisms and new requirements for workshare discounts and non-compensatory products. Some of the findings included:
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