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AVAILABLE MARKET DOMINANT RATE AUTHORITY

Last Update: 07/12/2023

On November 30, 2020, the Commission issued Order No. 5763, which revised the 

ratemaking system for Market Dominant products pursuant to 39 U.S.C. § 3622(d)(3).1

Density-Based Rate Authority: As specified by 39 C.F.R. § 3030.162(a)(1), the 

density-based rate authority available to the Postal Service is calculated as 0.936

percent. (Exhausted in Docket No. R2023-2)

Retirement-Based Rate Authority: As specified by 39 C.F.R. § 3030.183(a)(1), the 

retirement-based rate authority available to the Postal Service is calculated as 1.036

percent. (Exhausted in Docket No. R2023-2)

Additional Rate Authority for Non-Compensatory Classes: 39 C.F.R. § 3030.222(a)

provides for an additional 2 percentage points of additional rate authority for any class 

of mail where the attributable cost for that class exceeded the revenue from that class. 

In FY 2022, the only class for which attributable cost exceeded revenue was

Periodicals. (Exhausted in Docket No. R2023-2)

Maximum Available Rate Authority by Class2

Class CPI-U Density Retirement

NonCompensatory Bank Total

First-Class Mail 1.388% 0.000% 0.000% N/A 0.011% 1.399%

Periodicals 1.388% 0.000% 0.000% 0.000% 0.000% 1.388%

USPS Marketing Mail 1.388% 0.000% 0.000% N/A 0.003% 1.391%

Package Services 1.388% 0.000% 0.000% N/A 0.002% 1.390%

Special Services 1.388% 0.000% 0.000% N/A 0.210% 1.598%

1 Docket No. RM2017-3, Order Adopting Final Rules for the System of Regulating Rates and 

Classes for Market Dominant Products, November 30, 2020 (Order No. 5763). Pursuant to 39 C.F.R. §§ 

3030.160(c), 3030.181(c), and 3030.222(b), the Commission determines the amount of Market Dominant 

rate authority available to the Postal Service for the density-based rate authority, the retirement-based 

rate authority, and rate authority for non-compensatory classes of mail. For a more detailed explanation 

of the rate authority calculations, see Docket No. ACR2022, Determination of Available Market Dominant 

Rate Authority, April 3, 2023 (Order No. 6472).

2 Density, Retirement, and Non-Compensatory authority exhausted. See Docket No. R2023-2, 

Order on Price Adjustments for First-Class Mail, USPS Marketing Mail, Periodicals, Package Services, 

and Special Services Products and Related Mail Classification Changes, May 31, 2023 (Order No. 6526).
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2.807%

3.514%

4.200%

0.656%

1.280%

1.857%

2.381%

2.907%

3.406%

0.404%

0.806%

1.139%

1.388%

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

7.0%

7.5%

8.0%

8.5%

9.0%

Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23

Percentage Change in CPI-U

Month-Year

Annualized Percentage Change in CPI-U and Available CPI-U Rate Authority 

June 2022 - June 2023

Annualized Percentage Change in CPI-U Available CPI-U Rate Authority Since Last Rate Adjustment

CPI-U annualized using a 12-month moving average. For a more detailed explanation of the calculation of the CPI-U rate authority, including partial year 

calculations, please see 39 CFR §3030.140-143.

Docket No. R2023-1 CPI-U Rate Authority Docket No. R2023-2 CPI-U Rate Authority 
Unused Rate Adjustment Authority By Class (The Bank)

Docket No.

New Unused 

Rate 

Adjustment 

Authority

Price Adjustment 

in Excess of 

Annual Limitation

Amount of Unused 

Rate Adjustment 

Authority Used in 

Subsequent Rate 

Adjustments

Remaining 

Unused Rate 

Adjustment 

Authority

Date 

Generated

Expiration 

Date

Docket(s) 

Used/Remaining 

Unused Rate 

Adjustment Authority 

Status

Final Order 

No.

(1) (2) (3) (4) (5)=(2)-(4) (6) (7) (8) (9)

FIRST-CLASS MAIL

R2019-1 0.000% 0.045% N/A N/A N/A N/A N/A 4875 1/

R2020-1 0.352% 0.000% 0.351% 0.001% 10/9/2019 10/9/2024 R2021-1/R2021-2/ 

R2022-1/Available

5373 3/ 4/ 5/

R2021-1 0.000% 0.373% N/A N/A N/A N/A N/A 5757 3/

R2021-2 0.000% 0.008% N/A N/A N/A N/A N/A 5937 4/

R2022-1 0.000% 0.003% N/A N/A N/A N/A N/A 6188 5/

R2023-1 0.000% 0.000% N/A N/A N/A N/A N/A 6341

R2023-2 0.010% 0.000% 0.000% 0.010% 4/10/2023 4/10/2028 Available 6526

PERIODICALS

R2019-1 0.000% 0.101% N/A N/A N/A N/A N/A 4875 1/

R2020-1 0.000% 0.000% N/A N/A N/A N/A N/A 5321

R2021-1 0.002% 0.000% 0.002% 0.000% 10/9/2020 10/9/2025 R2022-1/Depleted 5757 5/

R2021-2 0.035% 0.000% 0.035% 0.000% 5/28/2021 5/28/2026 R2022-1/Depleted 5937 5/

R2022-1 0.000% 0.037% N/A N/A N/A N/A N/A 6188 5/

R2023-1 0.744% 0.000% 0.744% 0.000% 10/7/2022 10/7/2027 R2023-2/Depleted 6341 7/

R2023-2 0.000% 0.744% N/A N/A N/A N/A N/A 6526 7/

USPS MARKETING MAIL

R2019-1 0.000% 0.063% N/A N/A N/A N/A N/A 4875 1/

R2020-1 0.040% 0.000% 0.040% 0.000% 10/9/2019 10/9/2024 R2021-1/Depleted 5321 3/

R2020-2 0.012% 0.000% 0.012% 0.000% 10/9/2019 10/9/2024 R2021-1/R2021-2/ 

R2023-1/Depleted

5570 3/ 4/ 6/

R2021-1 0.000% 0.051% N/A N/A N/A N/A N/A 5757 3/

R2021-2 0.000% 0.008% N/A N/A N/A N/A N/A 5937 4/

R2022-1 0.003% 0.000% 0.000% 0.003% 4/6/2022 4/6/2027 Available 6188

R2023-1 0.000% 0.002% N/A N/A N/A N/A N/A 6341 6/

R2023-2 0.000% 0.000% N/A N/A N/A N/A N/A 6526

PACKAGE SERVICES

R2019-1 0.000% 0.103% N/A N/A N/A N/A N/A 4875 1/

R2020-1 0.008% 0.000% 0.008% 0.000% 10/9/2019 10/9/2024 R2021-1/R2022-1/ 

Depleted

5321 3/ 5/

R2021-1 0.000% 0.002% N/A N/A N/A N/A N/A 5757 3/

R2021-2 0.002% 0.000% 0.002% 0.000% 5/28/2021 5/28/2026 R2022-1/Depleted 5937 5/

R2022-1 0.000% 0.008% N/A N/A N/A N/A N/A 6188 5/

R2023-1 0.003% 0.000% 0.001% 0.002% 10/7/2022 10/7/2027 R2023-2/Available 6341 7/

R2023-2 0.000% 0.001% N/A N/A N/A N/A N/A 6526 7/

SPECIAL SERVICES

R2019-1 0.000% 0.093% N/A N/A N/A N/A N/A 4875 1/

R2020-1 0.000% 0.004% N/A N/A N/A N/A N/A 5321 2/

R2021-1 0.000% 0.000% N/A N/A N/A N/A N/A 5757

R2021-2 0.000% 0.002% N/A N/A N/A N/A N/A 5937 4/

R2022-1 0.062% 0.000% 0.000% 0.062% 4/6/2022 4/6/2027 Available 6188

R2023-1 0.002% 0.000% 0.000% 0.002% 10/7/2022 10/7/2027 Available 6341

R2023-2 0.146% 0.000% 0.000% 0.146% 4/10/2023 4/10/2028 Available 6526

N/A means Not Applicable

7/ A portion or all of the unused rate adjustment authority generated in Docket No. R2023-1 was used for the above annual limitation rate adjustment approved in Docket No. R2023-

2.

6/ A portion of the unused rate adjustment authority generated in Docket No. R2020-2 was used for the above annual limitation rate adjustment approved in Docket No. R2023-1.

5/ A portion or all of the unused rate adjustment authority generated in Docket Nos. R2020-1, R2021-1, and R2021-2 was used for the above annual limitation rate adjustment 

approved in Docket No. R2022-1.

Notes: 

4/ A portion or all of the unused rate adjustment authority generated in Docket Nos. R2017-7 (as applicable), R2020-1, and R2020-2 (as applicable) was used for the above annual 

limitation rate adjustment approved in Docket No. R2021-2.

3/ A portion or all of the unused rate adjustment authority generated in Docket Nos. R2017-7 (as applicable), R2020-1, and R2020-2 (as applicable) was used for the above CPI-U 

rate adjustment approved in Docket No. R2021-1.

2/ A portion of the unused rate adjustment authority generated in Docket No. R2017-7 was used for the above CPI-U rate adjustment approved in Docket No. R2020-1.

1/ A portion or all of the unused rate adjustment authority generated in Docket Nos. R2015-4 (Interim), R2017-1 (Interim), R2017-7 (as applicable), and R2018-1 was used for the 

above CPI-U rate adjustment approved in Docket No. R2019-1.

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FY 2023 Market Test Revenue Limitations

Unless the Commission grants an exemption, total revenues anticipated or in fact 

received by the Postal Service from a market test must not exceed $10 million in any 

fiscal year, as adjusted by the change in the consumer price index for all urban 

consumers (CPI-U index) ($10 Million Adjusted Limitation).1 

If the Commission grants an exemption, total revenues anticipated or in fact received by 

the Postal Service from a market test must not exceed $50 million in any fiscal year, as 

adjusted by the change in the CPI-U index ($50 Million Adjusted Limitation).2 

The Commission must publish the $10 Million Adjusted Limitation and $50 Million 

Adjusted Limitation on its web site.3 The revenue limitations for FY 2023 are:

$10 Million Adjusted Limitation: $13,415,974

$50 Million Adjusted Limitation: $67,079,869

These revenue limitations are calculated consistent with the Commission’s regulations 

in 39 C.F.R. §§ 3045.15 and 3045.16.

Explanation of Calculations

Revenue limitations applicable during FY 2023 reflect the average CPI-U change during 

FY 2022. Calculating the $10 Million Adjusted Limitation and $50 Million Adjusted 

Limitation involves the following steps. 

First, a simple average CPI-U index was calculated for FY 2008 by summing the 

monthly CPI-U values from October 2007 through September 2008 and dividing the 

sum by 12. The result is 214.463.

Second, another simple average CPI-U index is similarly calculated for FY 2022 by 

summing the 12 monthly CPI-U values from October 2021 through September 2022 and 

dividing the sum by 12. The result is 287.723.

The formulas for calculating each revenue limitation are:

$10 Million Adjusted Limitation = $10,000,000 * (287.723/214.463)

$50 Million Adjusted Limitation = $50,000,000 * (287.723/214.463)

Results are rounded to the nearest dollar. 

1 39 U.S.C. §§ 3641(e)(1) and 3641(g); 39 C.F.R. § 3045.15(b). 

2 39 U.S.C. §§ 3641(e)(2) and 3641(g); 39 C.F.R. § 3045.16(a).

3 39 C.F.R. §§ 3045.15(c) and 3045.16(b).