USPS regulator pushes back on network overhaul efforts

The U.S. Postal Service’s plan to revamp its network received pushback from the Postal Regulatory Commission on Friday, adding further criticism to the agency’s overhaul under Postmaster General Louis DeJoy.

The Postal Service is shifting its mail and processing operations into modernized facilities across the country. It is also moving to consolidate dropoff and pickup activities at select post offices, a plan that aims to expedite transportation for mail near major facilities at the expense of some volume from rural locations.

The agency believes the initiatives could save up to $3.7 billion annually once fully implemented, according to an announcement from the Postal Regulatory Commission. But the Postal Service’s proposal hinges on unsubstantiated financial projections and risks “significant adverse effects” on certain mail products and rural communities, the regulator said.

“While the Commission acknowledges the challenges the Postal Service faces are significant, and change is essential, the Commission finds the Postal Service is irreversibly changing its network without laying a foundation for success,” the Postal Regulatory Commission said.

Postal Service officials have said most volume will either see the same or faster delivery speeds as a result of the transportation changes. This includes package delivery services like Ground Advantage and Priority Mail.

However, the commission said instances of slower service standards due to the pla…