Current Events

Postal Regulatory Commission/United States Postal Service

Washington, DC – Representatives of the Postal Regulatory Commission and the United States Postal Service met on April 18, 2017 to share information of interest concerning the operations of both organizations.

This session was limited to the sharing of information for the purpose of familiarizing each entity with the operations of the other organization, such as reporting on the status of major initiatives. Pending (or anticipated) postal matters before the Commission were not discussed, nor did deliberations or decisional matters take place during this session.


PRC Annual Compliance Determination Reveals Progress and Problems with Rate and Fee Compliance and Service Performance

The Commission today issued its Annual Compliance Determination (ACD), an assessment of the U.S. Postal Service rate and fee compliance and service performance in Fiscal Year (FY) 2016. The Commission has identified several compliance issues and directs the Postal Service to address them in FY 2017. Consistent with last year’s ACD findings, Flats cost and service issues and overall service performance continued to be challenges for the Postal Service. A number of workshare discounts also failed to meet compliance standards. Appendix A of the ACD provides a complete listing of the Commission’s principal findings and directives. A status report of Commission directives from FY 2015 is also noted in Appendix A.

PRC Report Shows USPS Financial Concerns Persist Despite Improvements in Liquidity

Today the Postal Regulatory Commission (Commission) released its Financial Analysis report, which analyzes the United States Postal Service’s Fiscal Year (FY) 2016 overall financial position.

In FY 2016, the Postal Service generated an Operating Income of $610 million despite an increase in operating expenses and the expiration of the exigent surcharge in April 2016. While this is the third consecutive year of net positive Operating Income, it is $578 million less than the net operating income of $1.2 billion recorded in FY 2015. Revenues from Market Dominant and Competitive products rate increases, the exigent price surcharge on Market Dominant products during the earlier half of the fiscal year, and continuing growth in Competitive products volume contributed to the net Operating Income. However, when all adjustments are included, the Postal Service incurred a net loss of $5.6 billion, a $531 million deterioration from FY 2015. The increase in the total net loss is largely driven by a $1.5 billion increase in overall compensation and benefits costs and an increase in non-cash workers’ compensation expense of $906 million caused by a decrease in the discount rate...