Competitive products are those products which are not regulated by a price cap and include Priority Mail, Priority Mail Express, and First-Class Package Service. Postal law gives the Postal Service the flexibility to price these products competitively, as long as they are not subsidized by Market Dominant products, they cover all costs which are specifically attributable to them, and they contribute what the Commission determines to be an appropriate share of the Postal Service’s institutional costs.
Institutional costs are residual costs that cannot be specifically attributed to products or groups of products through reliably identified causal relationships. The Commission is required to revisit the appropriate share regulation at least every 5 years to determine if the appropriate share requirement should be “retained in its current form, modified, or eliminated.” This review marks the second one for the Commission since the appropriate share requirement was first set in 2007.
The Commission’s final order may be viewed under Docket No. RM2017-1 on the Commission’s website, www.prc.gov.
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