PRC Evaluates Postal Service Compliance with Pricing and Service in FY 2020 Annual Compliance Determination

Washington, DC – Today, the Postal Regulatory Commission (Commission) issued its 2020 Annual Compliance Determination (ACD) assessing the pricing and service performance of the Postal Service in fiscal year 2020 (39 U.S.C. Section 3653). The Commission is required to issue its ACD 90 days after the filing of the Postal Service’s Annual Compliance Report (ACR). Key issues identified in the ACD include:

  • Ten Market Dominant products did not cover their costs in FY 2020, and two of the five Market Dominant classes (Periodicals and Package Services) were also non-compensatory.
  • Operational and financial problems with flat-shaped products persisted, as these products had a negative contribution of more than $1 billion, and despite previous Commission directives, the Postal Service does not have a satisfactory plan to correct this.
  • Due to a number of internal and external factors, 17 of 22 Market Dominant products failed to meet their service standards, the worst service performance results since the Postal Accountability and Enhancement Act of 2006 mandated the establishment of service standards and tracking of performance against those standards.