Rule2026-00871
System for Regulating Rates and Classes for Market Dominant Products
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 16, 2026
Effective
February 17, 2026
Issuing agencies
Postal Regulatory Commission
Abstract
The Commission revises its rules to restrict the Postal Service from increasing rates above the de minimis threshold for Market Dominant products more than once per fiscal year (through fiscal year 2030) and to restrict the Postal Service from setting workshare discounts farther away from their avoided costs. These revisions aim to support a system design that achieves the statutory objectives, considering the statutory factors.
Full Text
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<title>Federal Register, Volume 91 Issue 11 (Friday, January 16, 2026)</title>
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[Federal Register Volume 91, Number 11 (Friday, January 16, 2026)]
[Rules and Regulations]
[Pages 2086-2087]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-00871]
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POSTAL REGULATORY COMMISSION
39 CFR Part 3030
[Docket Nos. RM2021-2, RM2022-5, RM2022-6, and RM2024-4; Order No.
9426]
RIN 3211-AA37
System for Regulating Rates and Classes for Market Dominant
Products
AGENCY: Postal Regulatory Commission.
ACTION: Final rule.
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SUMMARY: The Commission revises its rules to restrict the Postal
Service from increasing rates above the de minimis threshold for Market
Dominant products more than once per fiscal year (through fiscal year
2030) and to restrict the Postal Service from setting workshare
discounts farther away from their avoided costs. These revisions aim to
support a system design that achieves the statutory objectives,
considering the statutory factors.
DATES: Effective: February 17, 2026.
FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at
202-789-6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
[[Page 2087]]
II. Basis for Final Rules
III. Final Rules
I. Background
On April 5, 2024, the Commission issued an Advance Notice of
Proposed Rulemaking seeking comments on the Commission's review of the
system for regulating rates and classes for Market Dominant products
(ratemaking system).\1\ In Order No. 8891, the Commission determined
that the system for regulating rates and classes for Market Dominant
products was not achieving the objectives appearing in 39 U.S.C.
3622(b), taking into account the factors in 39 U.S.C. 3622(c) and has
determined to undertake a phased approach to considering modifications
necessary to achieve the statutory objectives.\2\
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\1\ Advance Notice of Proposed Rulemaking on the Statutory
Review of the System for Regulating Rates and Class for Market
Dominant Products, April 5, 2025 (Order No. 7032).
\2\ 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); Procedural
Order on Phased Rulemaking, June 9, 2025 (Order No. 8892).
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On June 9, 2025, the Commission announced its consideration of and
sought public comment on two proposed revisions to the ratemaking
system for Phase 2(a) of this proceeding.\3\ After considering
comments, the Commission finalizes both revisions with minor
alterations.
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\3\ See generally Notice of Proposed Rulemaking on the Statutory
Review of the System for Regulating Rates and Classes for Market
Dominant Products (Phase 2A Initiation), June 9, 2025 (Order No.
8893); see also Order No. 8892 at 4.
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II. Basis for Final Rules
Pursuant to 39 U.S.C. 503 and 3622, the Commission adopts the rules
proposed in Order No. 8893 with minor alterations as discussed below.
Both revisions are necessary to address areas that frustrate the
ability of the ratemaking system to achieve the statutory objectives
found in 39 U.S.C. 3622. Balancing the statutory objectives and
considering the statutory factors has required the Commission to
consider the necessary tradeoffs in designing the system. The
Commission adopts both revisions in Phase 2(a) because they are
comparatively simpler needed changes to the system and important first
steps aimed at achieving relevant statutory objectives in conjunction
with each other.
III. Final Rules
First, the Commission will restrict the Postal Service from
adjusting rates of general applicability for Market Dominant products
more than once per fiscal year, unless such rate adjustment filings
only include rate decreases or are de minimis rate increases. The
Commission adjusts the implementation period to March 1, 2026 through
September 30, 2030. The Commission considers the Postal Service's
claims regarding any potential negative impacts to the achievement of
Objectives 4, 5, and 8 to be overstated and outweighed by the
beneficial effects to the achievement of Objectives 1, 2, and 6, and
considers Factors 3, 7, 12, and 14. See generally 39 U.S.C. 3622(b) and
(c). Therefore, on balance, the Commission finds adopting the rule
change to be beneficial and a necessary modification to the ratemaking
system's design.
Second, the Commission corrects a regulatory gap to ensure that
workshare discounts remain as close to avoided costs as possible. The
Commission adjusts the existing rule governing application for waiver
to allow the Postal Service to seek waiver of the new workshare
discount rule under limited circumstances. As amended, the final rule
balances the statutory objectives by advancing the goals of Objectives
1, 2, and 5, while continuing to allow pricing flexibility under
Objective 4. The benefits of adopting this rule change outweigh the
minimal limitations on the Postal Service's pricing flexibility--
especially considering the expansion of the waiver process.
Consideration of Factors 5, 7, 12, and 14 also supports adopting this
rule change. See generally 39 U.S.C. 3622(b) and (c).
List of Subjects in 39 CFR Part 3030
Administrative practice and procedure, Fees, Postal Service.
For the reasons stated in the preamble, the Commission amends 39
CFR part 3030 as follows:
PART 3030--REGULATION OF RATES FOR MARKET DOMINANT PRODUCTS
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1. The authority citation for part 3030 continues to read as follows:
Authority: 39 U.S.C. 503; 3622.
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2. Add Sec. 3030.103 to read as follows:
Sec. 3030.103 Implementation of rate adjustments.
(a) Except as described in paragraph (b) of this section, effective
March 1, 2026, through September 30, 2030, the Postal Service may not
adjust rates of general applicability for Market Dominant products
using the rate authorities provided under subparts C through H of this
part more than one time each fiscal year.
(b) Rate adjustment filings that only include rate decreases
calculated pursuant to Sec. 3030.244 or are de minimis rate increases
compliant with Sec. 3030.129 are not subject to paragraph (a) of this
section.
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3. In Sec. 3030.282, add paragraph (d) to read as follows:
Sec. 3030.282 Increased pricing efficiency.
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(d) No proposal to adjust a rate associated with a workshare
discount may increase the absolute value of the difference between the
workshare discount and the cost avoided by the Postal Service for not
providing the applicable service, unless it is set in accordance with a
Commission order issued pursuant to Sec. 3030.286.
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4. In Sec. 3030.286, revise paragraphs (a) and (b) to read as follows:
Sec. 3030.286 Application for waiver.
(a) In every instance in which the Postal Service determines to
adjust a rate associated with a workshare discount in a manner that
does not comply with the limitations imposed by Sec. Sec. 3030.282(d)
and 3030.283 through 3030.284, the Postal Service shall file an
application for waiver. The Postal Service must file any application
for waiver at least 60 days prior to filing the proposal to adjust a
rate associated with the applicable workshare discount. In its
application for waiver, the Postal Service shall indicate the
approximate filing date for its next rate adjustment filing.
(b) The application for waiver shall be supported by a
preponderance of the evidence and demonstrate that a waiver from the
limitations imposed by Sec. Sec. 3030.282(d) and 3030.283 through
3030.284 should be granted. Preponderance of the evidence means proof
by information that, compared with that opposing it, leads to the
conclusion that the fact at issue is more probably true than not.
* * * * *
By the Commission. Commissioner Ann C. Fisher dissenting.
Mallory S. Richards,
Attorney-Advisor.
[FR Doc. 2026-00871 Filed 1-15-26; 8:45 am]
BILLING CODE 7710-FW-P
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