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FY 2025 Annual Compliance Report

The Postal Service has filed an Annual Compliance Report on the costs, revenues, rates, and quality of service associated with its products in fiscal year 2025. Within 90 days, ...

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<title>Federal Register, Volume 91 Issue 1 (Friday, January 2, 2026)</title>
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[Federal Register Volume 91, Number 1 (Friday, January 2, 2026)]
[Notices]
[Pages 169-171]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-24211]


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POSTAL REGULATORY COMMISSION

[Docket No. ACR2025; Order No. 9417]


FY 2025 Annual Compliance Report

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Postal Service has filed an Annual Compliance Report on 
the costs, revenues, rates, and quality of service associated with its 
products in fiscal year 2025. Within 90 days, the Commission must 
evaluate that information and issue its determination as to whether 
rates were compliant and whether service standards in effect were met. 
To assist in this, the Commission seeks public comments on the Postal 
Service's Annual Compliance Report.

DATES: Comments are due: January 27, 2026. Reply Comments are due: 
February 10, 2026.

[[Page 170]]


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. The Postal Service's FY 2025 ACR
III. Administrative Actions
IV. Ordering Paragraphs

I. Introduction

    On December 29, 2025, the Postal Service filed with the Commission 
its Annual Compliance Report (ACR) for fiscal year (FY) 2025, pursuant 
to 39 U.S.C. 3652.\1\ Public portions of the Postal Service's filing 
are available on the Commission's website at <a href="https://www.prc.gov">https://www.prc.gov</a>. After 
reviewing the FY 2025 ACR, comments, and other data and information 
submitted in this proceeding, the Commission will issue its Annual 
Compliance Determination (ACD), which determines whether Postal Service 
products offered during FY 2025 complied with the applicable 
requirements of Title 39 of the United States Code.
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    \1\ United States Postal Service FY 2025 Annual Compliance 
Report, December 29, 2025 (FY 2025 ACR).
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II. The Postal Service's FY 2025 ACR

A. General Contents

    The Postal Service's FY 2025 ACR consists of a 62-page narrative. 
FY 2025 ACR at 1-62. The Postal Service has streamlined this document 
by reducing restatements of information appearing in multiple locations 
and expanding use of summary tables. Id. at 1.
    Additional materials are appended as 77 separate folders 
(interchangeably referred to as Library References). Id. at 1, 3. 
Consistent with past practice, some of the materials appear in non-
public annexes. Id. at 62. An application for non-public treatment of 
certain materials is filed as Attachment 2. Id., Attachment 2.
    Library Reference USPS-FY25-17 presents the United States Postal 
Service Fiscal Year 2025 Annual Report to Congress, which includes the 
Fiscal Year 2025 Annual Report, the Fiscal Year 2025 Comprehensive 
Statement on Postal Service Operations, the Fiscal Year 2025 
Performance Report, and the Fiscal Year 2026 Performance Plan.\2\ 
Supporting materials appear in Library References USPS-FY25-17, USPS-
FY25-NP18, and USPS-FY25-NP30. FY 2025 ACR at 4.
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    \2\ Id. at 3-4. Since Docket No. ACR2013, the Commission has 
published a separate notice soliciting comments on these materials, 
which are prepared by the Postal Service pursuant to 39 U.S.C. 2803 
and 39 U.S.C. 2804, and has provided the Commission's analysis in a 
separate report from the ACD. See, e.g., Docket No. ACR2024, Postal 
Regulatory Commission, Analysis of the Postal Service's FY 2024 
Annual Performance Report and FY 2025 Performance Plan, July 23, 
2025, at 10. The Commission will continue this practice in Docket 
No. ACR2025.
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    Similarly, a copy of the Postal Service's annual report to the 
Secretary of the Treasury regarding the Competitive Products Fund, 
required by 39 U.S.C. 2011(i), appears as part of Library Reference 
USPS-FY25-39, along with the other Competitive Products Fund materials 
required by 39 CFR 3060.20 through 3060.23. Id. at 3.

B. New ``Roadmap''

    The Postal Service's new roadmap to the FY 2025 ACR appears in 
Library Reference USPS-FY25-0 and consists of two Excel files: (1) 
Roadmap spreadsheet listing all Library References submitted, as well 
as the flow of inputs and outputs among them; and (2) Directives 
spreadsheet listing all active Commission directives, as well as the 
location of responsive information provided by the Postal Service. FY 
2025 ACR at 1-2.
    In prior years, the Postal Service provided a roadmap document in 
Library Reference 9.\3\ For FY 2025, Library Reference USPS-FY25-9 
contains only information responsive to two Commission rules: (1) a 
list of special studies and a discussion of obsolescence, as required 
by 39 CFR 3050.12; and (2) a brief narrative explanation of any changes 
to accepted analytical principles that have been made since the FY 2024 
ACD was issued and the reasons that those changes were accepted, as 
required by 39 CFR 3050.13. FY 2025 ACR at 2, 3. A table cross-walking 
the type of content appearing in Library Reference USPS-FY24-9 to its 
current iteration, Library Reference USPS-FY25-9, appears in its 
preface.\4\
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    \3\ See e.g., Docket No. ACR2024, Library Reference USPS-FY24-9, 
December 30, 2024, PDF file ``USPS-FY24-9 Preface.pdf.''
    \4\ Docket No. ACR2025, Library Reference USPS-FY25-9, December 
29, 2025, PDF file ``USPS-FY25-9 Preface.pdf.''
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C. Market Dominant Product-by-Product Costs, Revenues, and Volumes

    Comprehensive cost, revenue, and volume data for all Market 
Dominant products of general applicability are shown directly in the FY 
2025 Cost and Revenue Analysis (CRA), appearing in Library References 
USPS-FY25-1 and USPS-FY25-NP11, as well as the International Cost and 
Revenue Analysis (ICRA), appearing in Library Reference USPS-FY25-NP2. 
FY 2025 ACR at 4. Tables 1 through 5 provide data by class of each 
Market Dominant product, including costs, revenues, and volumes. Id. at 
5-7. Table 6 provides summary information by class regarding the ranges 
of passthroughs produced by workshare discounts. Id. at 8. Fuller data 
regarding workshare discounts and passthroughs appear in Library 
Reference USPS-FY25-3. Id. at 4. Table 7 provides summary information 
about the performance of First-Class Mail and USPS Marketing Mail 
promotions and incentives. Id. at 9.

D. Service Performance

    The FY 2025 ACR contains the Postal Service's discussion of service 
performance in FY 2025. Id. at 17-27. Public service performance 
information required under 39 CFR part 3055 or in response to past ACD 
directives appears in Library Reference USPS-FY25-29. Id. at 17 n.7. 
Non-public service information related to the service performance of 
international mail products appears in Library Reference USPS-FY25-
NP30. Id. The FY 2025 ACR also discusses customer satisfaction and 
consumer access to postal services, with supporting materials appearing 
in public Library References USPS-FY25-38 and USPS-FY25-33, 
respectively. Id. at 27-62.

E. Competitive Products

    The costs, revenues, and volumes for Competitive products of 
general applicability appear in the FY 2025 CRA or ICRA. Id. at 10. For 
Competitive products not of general applicability, data appear in non-
public Library References USPS-FY25-NP2 and USPS-FY25-NP27. Id. at 11. 
The FY 2025 ACR also addresses the Competitive product pricing 
standards of 39 U.S.C. 3633. Id. at 11-15.

F. Market Test, Nonpostal Services, and Inter-Agency Agreements

    The Postal Service describes the market test active during FY 2025. 
Id. at 9-10. The Postal Service discusses the nonpostal services and 
inter-agency agreements offered during FY 2025. Id. at 16-17. Library 
Reference USPS-FY25-20 contains supporting public material, and Library 
Reference USPS-FY25-NP32 contains supporting non-public material.

[[Page 171]]

III. Administrative Actions

A. Docket and Accessing Filings

    The Commission establishes Docket No. ACR2025 for consideration of 
the matters raised by the Postal Service's ACR. All material filed in 
Docket No. ACR2025 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). The Commission's rules on non-public materials (including 
access to material filed under seal) appear in 39 CFR part 3011.

B. Opportunity for Public Comment

    Section 3653 of title 39 requires the Commission to provide an 
opportunity to comment on the Postal Service's ACR. The Commission 
invites comments on the Postal Service's FY 2025 ACR and on whether any 
rates or fees in effect during FY 2025 (for products individually or 
collectively) were not in compliance with applicable provisions of 
chapter 36 of title 39 or Commission regulations promulgated 
thereunder. The Commission also invites comments on the cost coverage 
matters the Postal Service addresses in its filing; service performance 
results, levels of customer satisfaction achieved, and other matters 
that may be relevant to the Commission's review. Comments are due 
January 27, 2026. Reply comments are due February 10, 2026.

C. Public Representative

    Pursuant to 39 U.S.C. 3653(a), Kenneth R. Moeller is designated to 
serve as the Public Representative to represent the interests of the 
general public in this proceeding. Neither the Public Representative 
nor any additional persons assigned to assist him shall participate in 
or advise as to any Commission decision in this proceeding other than 
in his or her designated capacity.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. ACR2025 to consider 
matters raised by the United States Postal Service's FY 2025 Annual 
Compliance Report, filed December 29, 2025.
    2. Pursuant to 39 U.S.C. 3653(a), the Commission appoints Kenneth 
R. Moeller as an officer of the Commission (Public Representative) in 
this proceeding to represent the interests of the general public.
    3. Comments on the United States Postal Service's FY 2025 Annual 
Compliance Report to the Commission are due January 27, 2026.
    4. Reply comments are due February 10, 2026.
    5. This Order shall be published in the Federal Register.

    By the Commission.
Jennie L. Jbara,
Primary Certifying Official.
[FR Doc. 2025-24211 Filed 12-31-25; 8:45 am]
BILLING CODE 7710-FW-P


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