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Postal Regulators Lay Out New Proposal to Enable Larger USPS Rate Hikes

From Government Executive
By Eric Katz, Senior Correspondent

The U.S. Postal Service could soon raise prices in a way that more closely follows increases in its costs, as the mailing agency’s regulators proposed an overhaul to the existing rate-setting system it has deemed inadequate

The Postal Regulatory Commission still would not give USPS full authority to set its own prices. Instead, the new proposal would tie price caps to what PRC identified as USPS’ two biggest cost drivers: the declining density of mail and mandatory payments the agency must make toward benefits for future retirees. Other revisions prom the PRC would combine the performance-based price adjustment and give the USPS less wiggle room on discounts it offers to large-scale mailers who reduce the agency’s workload by presorting mail.

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