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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: 

  • 21 workshare discounts passed through more than 100 percent of avoided costs, and 39 workshare discounts passed through less than 85 percent of avoided costs.
  • Cost of Periodical products have risen in the long term, while unit revenue has been unable to keep up with changes in unit costs, negatively affecting cost coverage.
  • Revenues for Competitive products as a whole exceeded incremental costs, therefore Competitive products were not subsidized by Market Dominant products during FY 2022.
  • A significant number of Market Dominant products failed to meet their service performance targets for FY 2022 and directs the Postal Service to take corrective action.

USPS Releases First Quarter Results. On February 9, the United States Postal Service announced its financial results for the first quarter of fiscal year 2023 (Oct. 1, 2022 - Dec. 31, 2022). The Postal Service's operating revenue was $21.5 billion for the quarter, an increase of $206 million, or 1.0 percent, on a volume decline of 1.7 billion pieces, or 4.8 percent, compared to the same quarter last year. Shipping and Packages revenue increased $203 million, or 2.4 percent, on a volume decline of 70 million pieces, or 3.5 percent, compared to the same quarter last year.  First-Class Mail revenue increased $95 million, or 1.5 percent, on a volume decline of 587 million pieces, or 4.5 percent, compared to the same quarter last year. Marketing Mail revenue decreased $106 million, or 2.4 percent, on a volume decline of 879 million pieces, or 4.7 percent, compared to the same quarter last year. 

PRC Releases Annual Report to the President and Congress On January 31, the Postal Regulatory Commission released its Annual Report to the President and Congress summarizing many of the activities undertaken by the Commission throughout the year.  The Commission's highlighted accomplishments included conducting rulemakings related to 1) service performance reporting requirements; 2) the letter monopoly; 3) rate incentives for Market Dominant products; and 4) the minimum appropriate share of institutional costs required to be borne by competitive products; and issuing advisory opinions on Postal Service proposals to 1) change service standards for Retail Ground and Parcel Select Ground and 2) revise the critical entry times (CETs) for some categories of Periodicals mail; and issuing analytical reports on the Postal Service related to compliance with pricing and service standards; the financial health of the Postal Service; and evaluation of the Service’s performance goals and plan.

Commissioner Mark Acton Elected PRC Vice Chairman On January 4, The Postal Regulatory Commission (PRC) announced that it had voted unanimously to designate Commissioner Mark Acton as vice chairman of the Commission effective January 1, 2023, succeeding Commissioner Ann Fisher. Agency regulations provide that the commissioners elect a member to serve as vice chairman for a term of one year. Commissioner Mark Acton was reappointed to the Commission by President Barack H. Obama on December 12, 2016, for a third term of continued public service extending until October 14, 2022, and was confirmed by the United States Senate on December 10, 2016.

PRC Unveils 5 Year Strategic Plan On January 3, 2023, the Postal Regulatory Commission unveiled its 2023-2028 Strategic Plan.  The Plan was developed using a foresight-based strategic planning process, guided by Toffler Associates. The strategic planning process also included inputs from the Commission’s diverse and skilled staff and a variety of external postal experts, to ensure that the Commission continues to operate as an effective and objective regulator that is trusted by the American public, policymakers, and all interested stakeholders. The four Strategic Goals identified encompass the Commission’s priorities and strategic focus throughout 2023-2028:

  • Strategic Goal 1: Anticipate and adapt to an evolving postal system through a responsive and trusted regulatory framework.

  • Strategic Goal 2: Enhance and expand communication of accurate and relevant regulatory information to postal stakeholders, policymakers, and the general public.

  • Strategic Goal 3: Develop an internal infrastructure to support and strengthen our regulatory capabilities through adaptive policies, efficient processes, and scalable platforms.

  • Strategic Goal 4: Build an organization that will attract, develop, and retain a diverse workforce of experts.

PRC Releases Annual Compliance Report On December 29, 2022, the Postal Regulatory Commission (PRC) released its Annual Compliance Report (ACR) for fiscal year 2022.  Overall, the ACR demonstrates that in FY 2022 the Postal Service’s Market Dominant and Competitive products were broadly in compliance. Service performance in FY 2022 showed substantial improvement over FY 2021, which had been exemplified by the negative service performance impacts of the COVID-19 pandemic, and which demonstrated that the Postal Service’s network needed fundamental improvements in order to provide precise, reliable service.  Overall, the Customer Experience (CX) Composite, which provides a comprehensive view of the Postal Service’s customer experience across multiple touchpoints, improved in FY 2022.

USPS Intends To Deploy Over 66,000 Electric Vehicles by 2028 The United States Postal Service on December 20th announced that it expects to acquire at least 66,000 battery electric delivery vehicles as part of its 106,000 vehicle acquisition plan for deliveries between now and 2028. The vehicles purchased as part of this anticipated plan will begin to replace the Postal Service’s aging delivery fleet of over 220,000 vehicles.The announcement is enabled by the Postal Service’s overall network modernization efforts which allows for a more rapid deployment of EVs, and its improving financial condition which includes $3 billion in congressional funding appropriated under the Inflation Reduction Act (IRA). New NGDVs are expected to start servicing postal routes in late 2023.