Summary
This regulation implements the modern system of ratemaking for U.S. Postal Service market dominant products, establishing complex rules governing rate adjustments, including CPI-U based limitations, various types of accumulated rate authority (banked, density, retirement), and a mandatory 90-day notice and review process by the Postal Regulatory Commission. It details calculation methodologies, filing requirements, public comment periods, and restrictions on rate increases tied to volume, cost coverage, and authorized authority across different mail classes.
Reason
This represents quintessential regulatory overreach: a labyrinthine pricing control system for a government monopoly that should not exist. The'regulatory complexity itself imposes massive compliance costs on both the Postal Service and the PRC, while artificially constraining price signals that would otherwise emerge from market competition. The various forms of 'rate authority'—banked, density, retirement—are bureaucratic constructs that distort economic calculation, prevent efficient resource allocation, and centralize knowledge no regulator can possess. Even accepting the Postal Service's existence, this system substitutes bureaucratic planning for market pricing, guaranteeing shortages, surpluses, and mispricing while creating barriers to any private competition. The 90-day notice requirement, mandatory filings, and 30-day comment period add further delay and uncertainty. The unseen costs include reduced service quality, suppressed innovation, and the perpetuation of government monopoly power that harms consumers and stifles the competition that would naturally discipline pricing in a free market.