Notice2026-11286
Public Inquiry
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
June 5, 2026
Issuing agencies
Postal Regulatory Commission
Abstract
The Commission is acknowledging the filing of the explanation of its current methodology to value the Postal Service's universal service obligation (USO). This notice informs the public of the filing, invites public comment, and takes other administrative steps.
Full Text
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<title>Federal Register, Volume 91 Issue 108 (Friday, June 5, 2026)</title>
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[Federal Register Volume 91, Number 108 (Friday, June 5, 2026)]
[Notices]
[Pages 34259-34260]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-11286]
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POSTAL REGULATORY COMMISSION
[Docket No. PI2021-1; Order No. 9594]
Public Inquiry
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
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SUMMARY: The Commission is acknowledging the filing of the explanation
of its current methodology to value the Postal Service's universal
service obligation (USO). This notice informs the public of the filing,
invites public comment, and takes other administrative steps.
DATES: Comments are due: July 7, 2026.
ADDRESSES: Submit comments electronically via the Commission's Filing
Online system at <a href="https://www.prc.gov">https://www.prc.gov</a>. Those who cannot submit comments
electronically should contact the person identified in the FOR FURTHER
INFORMATION CONTACT section by telephone for advice on filing
alternatives.
FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at
202-789-6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Procedural History
III. Content of Library References PRC-LR-PI2021-1-NP1 and PRC-LR-
PI2021-1-1
IV. Administrative Actions
V. Ordering Paragraphs
I. Introduction
The Commission notifies the public of filing of the explanation of
the current methodology used by the Commission to value the Postal
Service's universal service obligation (USO). The Commission provides
until July 7, 2026 for public comment regarding the current USO
valuation methodology, including any suggested modifications or
enhancements.
II. Procedural History
In December 2020, the Commission established the instant docket to
revisit the methodology it uses to estimate the cost of the Postal
Service's USO.\1\ Since then, several Chairman's information requests
have been issued and the Postal Service has responded to them.\2\
Several motions and responses were filed.\3\ The Commission granted one
motion.\4\ The
[[Page 34260]]
Commission grants the Postal Service's Motion for Late Acceptance
because no participant would be prejudiced by the late acceptance of
Response to CHIR No. 7 and the procedural schedule has not been
adversely affected by the late acceptance. All other motions remain
pending. The Commission also received comments.\5\
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\1\ Notice and Order Providing an Opportunity to Comment with
Respect to Universal Service Obligation Valuation Methodology,
December 10, 2020, at 1 (Order No. 5777).
\2\ See, e.g., Chairman's Information Request No. 1, September
16, 2021; Responses of the United States Postal Service to Questions
1-3 of Chairman's Information Request No. 1, September 24, 2021;
Chairman's Information Request No. 7, March 31, 2026; Responses of
the United States Postal Service to Chairman's Information Request
No. 7 and Notice of Filing Materials Under Seal (USPS-PI2021-1-NP7),
April 16, 2026 (Response to CHIR No. 7).
\3\ See, e.g., Motion of the United States Postal Service to
Disclose Methodological Information and to Adjust Procedural
Schedule, January 12, 2021; Public Representative Response to Motion
to Disclose Methodological Information and Adjust Procedural
Schedule, January 14, 2021; Motion of the United States Postal
Service for Late Acceptance of the Responses to Chairman's
Information Request No. 7, April 16, 2026 (Postal Service's Motion
for Late Acceptance); Docket Nos. PI2020-1 and PI2021-1, Omnibus
Motion of Lindsey Vincent for an Order Compelling Forensic
Disclosure of RRECS Source Data, Convening a Technical Conference,
Establishing a Nationwide Error Registry, and Entering an Evidence
Preservation Order with Spoliation Sanctions, May 29, 2026.
\4\ Order Granting Motion to Disclose Methodological Information
and to Adjust Procedural Schedule, January 21, 2021 (Order No.
5821).
\5\ See, e.g., Comments of the Berkshire Company in Response to
Order No. 5777, March 15, 2021; Comments of Richard Graham Regarding
Data Integrity and the Valuation of Rural Delivery Workload, April
17, 2026.
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III. Content of Library References PRC-LR-PI2021-1-NP1 and PRC-LR-
PI2021-1-1
The Commission files its explanation of the current methodology
used by the Commission to value the Postal Service's USO in this
docket. Specifically, Library Reference PRC-LR-PI2021-1-NP1 is the
unredacted version, which is filed under seal. Library Reference PRC-
LR-PI2021-1-1 is the redacted version, which is filed publicly. The two
library references contain a detailed explanation of the Commission's
current USO valuation methodology, including workpapers showing the
calculations underlying its most recent USO valuation for Fiscal Year
(FY) 2024, which appears in the FY 2025 Annual Report.\6\ The two
library references are both organized according to three types of
public services or activities and the respective components under each
type, as follows:
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\6\ Postal Regulatory Commission, Annual Report to the President
and Congress, FY 2025, January 28, 2026, at 30-40 (FY 2025 Annual
Report).
<bullet> Postal Services to Areas of the Nation that Postal Service
Would Not Otherwise Serve
[cir] Maintaining Small Post Offices
[cir] Alaska Air Subsidy
[cir] Group E Post Office Boxes
<bullet> Free or Reduced Rates for Postal Services as Required by Title
39 of the U.S. Code
[cir] Preferred Rate Discounts Net of Costs
[cir] Periodicals Losses
<bullet> Other Public Services or Activities the Postal Service Would
Not Otherwise Provide but for the Requirements of Law
[cir] Six-Day Delivery
[cir] Uniform First-Class Mail Rates
[cir] Uniform Media Mail/Library Mail Rates
[cir] Postal Inspection Service (Net Cost)
The Commission's current USO valuation methodology differs from the
methodology used in the 2008 USO Report \7\ in the following major
areas: additional costs are included in the 6-to-5-day delivery cost
saving estimate; new additional USO-related costs are included in the
estimated total USO cost; and the Rural Route Evaluation Cost System
(RRECS) replaced the Rural Mail Count (RMC) for developing rural
carrier costs.
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\7\ Report on Universal Postal Service and the Postal Monopoly,
December 19, 2008 (2008 USO Report).
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IV. Administrative Actions
All material filed in Docket No. PI2021-1 will be available for
review on the Commission's website (<a href="https://www.prc.gov">https://www.prc.gov</a>). Any material
filed in this proceeding that is subject to an application for non-
public treatment (filed under seal) may be accessed via the
Commission's website only by account holders granted access by an order
or in accordance with 39 CFR 3011.300(a). Except as provided in 39 CFR
3010.120(a), all material filed with the Commission shall be submitted
in electronic format using the Filing Online system, which is available
over the internet through the Commission's website.
Pursuant to 39 CFR 3010.101(q)(3), Kenneth R. Moeller shall
continue to serve as an officer of the Commission (Public
Representative) to represent the interests of the general public in
this docket. The Public Representative does not represent any
individual person, entity or particular point of view, and, when
Commission attorneys are appointed, no attorney-client relationship is
established.
The Commission will accept comments concerning the matters
identified in this Order. Comments are due July 7, 2026. The Commission
invites interested persons to identify components of the current USO
valuation methodology where the underlying assumptions about how a
theoretical profit-maximizing Postal Service without a USO would behave
are no longer compelling. Further, the Commission seeks suggestions
concerning how to revise any outdated assumptions, as well as what data
and analytical methods would be necessary to incorporate any suggested
changes into the calculation of the USO's cost. Five specific questions
regarding the USO valuation methodology follow.
<bullet> What is the best way to adapt the RRECS data to calculate
the unit cost of the rural carrier providing retail services and the
rural delivery cost to a centralized mailbox?
<bullet> Is there a more appropriate proxy to use to estimate the
cost of providing uniform Media Mail and Library Mail rates?
<bullet> Should the USO cost of maintaining small post offices
(defined as those post offices in Cost Ascertainment Groups K and L) be
expanded to also include other post offices that do not cover costs?
<bullet> Can the Postal Service provide more current and accurate
inputs for the USO 6-to-5-day delivery cost savings estimate than the
inputs from Docket No. N2010-1? If not, which (if any) of the current
6-to-5-day cost savings estimates (rural carrier delivery cost, city
delivery carrier cost, mail processing cost, and transportation cost)
are likely to be materially inaccurate?
<bullet> Where the RRECS replaced the RMC to develop the rural
carrier 6-to-5-day delivery cost savings estimate, are the Commission's
RRECS adaptations and methodology to estimate the rural carrier cost
saving from reducing delivery days generally accurate and appropriate?
V. Ordering Paragraphs
It is ordered:
1. The Commission provides notice of filing the explanation of the
current methodology used by the Commission to value the Postal
Service's universal service obligation in this docket.
2. Comments are due July 7, 2026.
3. Kenneth R. Moeller shall continue to serve as Public
Representative in this proceeding.
4. This Order, or an abstract thereof, shall be published in the
Federal Register.
By the Commission.
Mallory S. Richards,
Attorney-Advisor.
[FR Doc. 2026-11286 Filed 6-4-26; 8:45 am]
BILLING CODE 7710-FW-P
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