Systems and methods are provided for an optical network unit (ONU) to automatically set its output power level for messages to be transmitted on a passive optical network. The ONU can autonomously determine the appropriate power level based on information provided to the ONU by an optical line terminal (OLT) and characterization by the ONU of optical signals it receives from the fiber. Specifically, the OLT can provide the ONU with control data indicative of the power level used by the OLT to transmit the message and the desired power level of the OLT for messages from the ONU. The ONU can measure the power level of at least one message received from the OLT and determine the path loss based on the measured power and the control data. The ONU can then automatically determine a suitable power level for its response message such that unacceptable levels of crosstalk between channels are avoided without having to perform an iterative power-leveling process that otherwise may introduce significant delays.