Postal Regulatory Commission: Proposed Rule on Market Dominant Rates
Summary
The Postal Regulatory Commission (PRC) has issued a procedural order setting deadlines for interested parties to submit petitions for modifications to the market-dominant ratemaking system or for an alternative system. The deadline for petitions is February 17, 2026, with responses due by March 2, 2026.
What changed
The Postal Regulatory Commission (PRC) has issued a procedural order in Docket No. RM2024-4, establishing deadlines for interested parties to submit petitions proposing modifications to the current market-dominant ratemaking system or suggesting an alternative system. This action follows previous proceedings where the PRC determined the existing system was not fully achieving statutory objectives. The order specifically sets February 17, 2026, as the deadline for submitting such petitions, and March 2, 2026, for responses to any filed petitions, including those already submitted by the Postal Service.
Regulated entities and interested parties should review the PRC's prior orders and the current procedural guidance to determine if they wish to submit proposals for changes to the ratemaking system. Any party intending to propose modifications must file a petition by the February 17, 2026 deadline. Failure to submit a petition by this date will preclude consideration of proposals in this phase of the proceedings. This is a critical opportunity for stakeholders to influence future postal rate regulation.
What to do next
- Review PRC Docket No. RM2024-4 and related orders.
- Prepare and submit petitions for modifications to the market-dominant ratemaking system or for an alternative system by February 17, 2026, if desired.
- Prepare and submit responses to any filed petitions by March 2, 2026.
Source document (simplified)
Content
ACTION:
Notice of procedural order.
SUMMARY:
The Commission sets a deadline for interested persons to request, by petition in the instant proceedings, that the Commission
consider specific proposals for modifications to the ratemaking system or for an alternative system.
DATES:
The deadline by petition for modifications to the ratemaking system or for an alternative system: February 17, 2026. The responses
to any petition (including the Postal Service Petitions) is due: March 2, 2026.
FOR FURTHER INFORMATION CONTACT:
David A. Trissell, General Counsel, at 202-789-6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Background
III. Procedural Order
IV. Ordering Paragraphs
I. Introduction
The Commission sets a deadline for interested persons, in accordance with 39 CFR 3010.201(b), to request, by petition in the
instant proceedings, that the Commission consider specific proposals for modifications to the ratemaking system or for an
alternative system. The deadline for such petitions is 30 days after the date of publication of this Order in the
Federal Register
. On December 22, 2025, the Postal Service filed two petitions. United States Postal Service Petition for Rulemaking to Repeal
the Minimum Remittance Payment Requirement, December 22, 2025; United States Postal Service Petition for Rulemaking to Modify
the Market-Dominant Ratemaking System to Achieve Objectives 5 and 8, December 22, 2025 (Postal Service Petitions). Responses
to any petition (including the Postal Service Petitions) shall be due 44 days after the date of publication of this Order
in the
Federal Register
.
II. Background
On April 5, 2024, the Commission initiated Docket No. RM2024-4 to review the Ratemaking System to determine whether the ratemaking
system is achieving the objectives appearing in 39 U.S.C. 3622(b), taking into account the factors in 39 U.S.C. 3622(c). (1) This docket incorporated several other related dockets including RM2021-2, the Commission's examination of a potential Performance
Incentive Mechanism. After notice and opportunity for public comment, the Commission determined that the ratemaking system
is not achieving such
objectives, taking into account such factors. [(2)]()
On June 9, 2025, the Commission indicated that it would “proceed using a phased approach to consider modifications necessary
to achieve the statutory objectives.” (3) The Commission stated that, under this approach, it “expects to issue multiple notices of proposed rulemaking.” Order No.
8892 at 2. Among other things, the Commission provided guidance for proposals by interested persons. See id. at 5. The Commission noted that “[i]nterested persons, in accordance with [39 CFR 3010.201] and other applicable procedural
rules, may request, by petition, that the Commission consider specific proposals for modifications to the R[at]emaking System
or for an alternative system.” Id. The Commission subsequently reiterated this guidance. (4)
Also on June 9, 2025, the Commission issued Order No. 8893, the first such notice of proposed rulemaking, and initiated Phase
2(a) of the instant proceedings. (5) Various commenters filed comments in response to Order No. 8893. (6) Of these, several commenters expressed interest in further information about next steps in the instant proceedings or advocated
that certain topics be considered in the next phase of the instant proceedings. (7)
On January 13, 2026, the Commission finalized the rules proposed in Order No. 8893. See Order No. 9426. In doing so, the Commission declined to provide further information about next steps in the instant proceeding. Id. at Section VII. The Commission observed that interested persons still might submit proposals for rule changes, and the Commission
was not able to predict the content of any such proposals that may be submitted. Id. However, the Commission also stated that interested persons had had several months in which to prepare proposals, and commenters
expressed interest in the next steps in the instant proceedings. Id. Consequently, the Commission stated that it would set a deadline for the submission of such proposals in the instant proceedings
by procedural order. Id. The Commission now issues this procedural order.
III. Procedural Order
Petitions under 39 CFR 3010.201(b)(1) for modifications of the ratemaking system, or for adoption of an alternative system,
pursuant to 39 U.S.C. 3622(d)(3) in the instant proceedings are due no later than 30 days from the date of publication of
this Order in the
Federal Register
. Any person may file such a petition. See 39 CFR 3010.201(b)(1). Petitions must provide all of the information specified by 39 CFR 3010.201(b)(1)(i) through 39 CFR
3010.201(b)(1)(v). The Commission will consider complete, timely-filed petitions in the instant proceedings. (8) Responses to any petition (including the Postal Service Petitions) shall be due 44 days from the date of publication of this
Order in the
Federal Register
.
Upon consideration of such petitions, the Commission plans to issue a notice and order establishing one or more new phases
of the instant proceedings to address any changes proposed in such petitions that the Commission, in its discretion, decides
to pursue and such additional proposals as the Commission may make. See 39 CFR 3010.201(b)(2). The Commission intends to expedite consideration of such proposals. In addition, before closing this
docket, the Commission will explain any decision to reject or defer consideration of a petition. See id.
IV. Ordering Paragraphs
It is ordered:
This Order, or abstract thereof, shall be published in the
Federal Register
.The deadline for interested persons, in accordance with 39 CFR 3010.201(b), to request, by petition in the instant proceedings,
that the Commission consider specific proposals for modifications to the ratemaking system or for an alternative system is
no later than 30 days from the date of publication of this Order in the
Federal Register
.Responses to any petition (including the Postal Service Petitions) shall be due 44 days from the date of publication of
this Order in the
Federal Register
.
By the Commission.
Mallory S. Richards, Attorney-Advisor. [FR Doc. 2026-00902 Filed 1-15-26; 8:45 am] BILLING CODE 7710-FW-P
Footnotes
(1) Advance Notice of Proposed Rulemaking on the Statutory Review of the System for Regulating Rates and Classes for Market Dominant
Products, April 5, 2024 (Order No. 7032).
(2) See Order Presenting Findings on the Statutory Review of the System for Regulating Rates and Classes for Market Dominant Products
(Phase 1 Completion), June 9, 2025 (Order No. 8891).
(3) Procedural Order on Phased Rulemaking, June 9, 2025, at 1-2 (Order No. 8892).
(4) See Order Denying Motions for Reconsideration, July 24, 2025, at 31-32 (Order No. 9042).
(5) Notice of Proposed Rulemaking on the Statutory Review of the System for Regulating Rates and Classes for Market Dominant
Products (Phase 2a Initiation) (Order No. 8893).
(6) Order Adopting Rules Limiting Frequency of Rate Increases Above the de minimis Threshold and Adding Criteria for Workshare Discounts for Market Dominant Products (Phase 2a Completion), January 13, 2026,
at Section VII (Order No. 9426) (identifying comments).
(7) See id. (considering comments); Comments of Alliance of Nonprofit Mailers, July 28, 2025, at 13 (“ask[ing] the Commission to propose
further modifications that restrain the magnitude of the Postal Service's pricing authority as soon as possible”); Comments
of the Greeting Card Association on Order No. 8893, July 28, 2025, at 8 (“The Commission, however, should include in the next
phase of this rulemaking an initiative to do away with the density-based pricing authority.”); United States Postal Service
Reply Comments in Response to Order No. 8893, August 7, 2025, at 28 (commenting that the Commission should proceed to considering
the ratemaking system's “failure . . . to provide adequate revenues for financial stability and to uphold the Postal Service's
financial integrity”); cf. Comments of the Association for Postal Commerce, July 28, 2025, at 2, 8-10 (suggesting consideration of density rate authority).
(8) Nothing in this Order restricts any person from petitioning the Commission under 39 CFR 3010.201(b)(1) at any time. However,
petitions that do not comply with the deadline established in this Order, or that do not contain information required by 39
CFR 3010.201(b)(1), should not be expected to be considered as part of the instant proceedings. On October 16, 2025, the Greeting
Card Association (GCA) filed an Additional Suggestion, which, in its view, “may . . . be deemed a [39 CFR 3010.201(b)(1)]
petition.” Docket No. RM2024-4, et al., Additional Suggestion, October 16, 2025, at 1 (GCA Additional Suggestion); see id. at 4. However, the GCA Additional Suggestion does not include specific proposals, including specific language, in regard to
the subject matter of the GCA Additional Suggestion. See 39 CFR 3010.201(b)(1)(iii). In addition, GCA is reminded of its obligation to comply with Rule 124(c) of the rules of practice,
which provides that the title of a document filed with the Commission “shall identify each participant on whose behalf the
filing is made . . . .” 39 CFR 3010.124(c).
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