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PRC Issues Advisory Opinion on Postal Service Five-day Delivery Proposal
Thursday, March 24, 2011

Key findings of the Commission’s Opinion include:

  • The Commission’s annual net savings estimate is $1.7 billion.
  • The Postal Service’s savings estimate is $3.1 billion.
  • Full savings in either case would likely not be achieved until year three after implementation.
  • The Commission’s estimate of net revenue losses due to volume declines caused by the service cuts is $0.6 billion.
  • The Postal Service estimate of net revenue losses is $0.2 billion.
  • The planned changes would cause an average of 25 percent of First-Class and Priority mail to be delayed by two days.
  • The Postal Service did not evaluate the impact of the proposal on customers who reside or conduct business in rural, remote, and non-contiguous areas.
  • Customers in rural, remote, and non-contiguous areas can be particularly affected by the Postal Service’s plans. The Commission received significant input from rural America and traveled to South Dakota and Wyoming to meet directly with rural customers and community leaders.
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