Decision Close? Postal Regulatory Commission (PRC) 10 year Rate Review

RM2017-3, the PRC’s statutory review of the system for regulating rates and classes for market-dominant products is underway. The Commission is deliberating whether the current rate-making system meets the objectives of the law. A ruling was expected in early autumn, 2017. The timeline has been pushed back and a decision is anticipated to be made by the end of the week. Possible scenarios include:

1. CPI remains in place
2. Modified CPI cap with adjustment factor that accounts for unmet liabilities and/or volume loss
3. Eliminate the CPI cap
4. If the PRC recommends 2 or 3, they will issue a formal rulemaking and will allow two rounds of comments. It’s possible a final decision will not be announced until spring of 2018. Regardless of the decision, legal action is expected by various stakeholders.