Opportunities To Improve the Postal Ratemaking Process

In response to a congressional request, GAO reviewed the postal ratemaking and classification processes to determine whether opportunities exist to improve them.

GAO found that, although the current ratemaking process can be lengthy, it works reasonably well. Further, GAO found that current Postal Rate Commission (PRC) procedures are appropriate for resolving mail classification cases. The ratemaking process provides interested parties with an opportunity to participate in the proceedings, develops an evidentiary record upon which rate decisions are based, and normally produces PRC recommendations to the Board of Governors for new postal rates within a reasonable time period. However, if the Board disagrees with a PRC-recommended decision, the reconsideration process may become excessively lengthy since there is no time limit set by law. Although the U.S. Postal Service (USPS), its Board of Governors, and PRC agree that time taken for reconsiderations can be a problem, they disagree on the remedies, with PRC favoring a flexible time limit. Other problem areas involve cost procedural issues, Board use of technical assistance, USPS and PRC reporting requirements, and the consumer advocate's role.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: L. Nye Stevens Team: General Accounting Office: General Government Division Phone: (202) 275-8676