PRC Approves Proposal to Raise Rates for Competitive Products



Press Release
February 25, 2015

Washington, DC – The Postal Regulatory Commission today approved a proposal by the Postal Service to increase the postage rates for certain Competitive products and related classification changes.

The Postal Accountability and Enhancement Act requires that rates for Competitive products must produce sufficient revenues to ensure they are not subsidized by Market Dominant products. Each Competitive product must cover its attributable costs. In addition, Competitive products, as a group, must pay an appropriate share of institutional costs, currently set at 5.5 percent. The Commission determined that the proposed domestic and international Competitive products price increases appear to satisfy these requirements.

Planned price adjustments by the Postal Service for its domestic Competitive products will affect rates for Parcel Select, Parcel Return Service, *First-Class Package Service, Standard Post, and Domestic Extra Services. In the international area, products affected are Priority Mail International, International Priority Airmail/International Surface Air Lift, Airmail M-Bags, First-Class Package International Service, and International Ancillary Services.

Commission Order No. ­­­­­­­­­­­2366 outlines its review of the Postal Service’s request for Competitive product rate increases and associated mail classification changes.

*The Postal Service has requested the transfer of First-Class Mail Retail parcels to the Competitive products list. The Commission is still reviewing the request.

See the PRC order at (PDF).