Postal Regulatory Commission issues Final Rules on Minimum Contribution of Competitive Products to Institutional Cost

Washington, DC – The Postal Regulatory Commission (PRC) issued Order No. 4963 adopting final rules for the share of institutional costs that U S Postal Postal Competitive products must contribute. The previous share requirement was 5.5 percent of institutional costs. For Fiscal Year 2019, the PRC has determined the appropriate share as 8.8 percent. 

BACKGROUND

The PRC addressed two general topics that provide necessary background.

First, the Commission described developments in the parcel delivery market and discussed how both the market and the Postal Service’s position in the market have changed since the Commission first set the appropriate share in 2007 and since the Commission last reviewed the appropriate share in 2012.

Second, the Commission discussed the appropriate share requirement and its purpose in the context of the statutory scheme for regulating competitive products.

A copy of the order can be found at https://www.prc.gov/docs/107/107901/Order4963.pdf