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

11/27/2017

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 ratemaking system meets the objectives of the law.

A ruling was expected in early autumn, 2017. The timeline has pushed and is now expected to be late November. Many anticipate that it will be 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.