DMA to Host Sept. 5 Teleconference Call for Members on PRC's Ratesetting Reform Proposals; Federal Register Notice Published

September 4, 2007 — The Direct Marketing Association (DMA) will host a second teleconference call on Wednesday, September 5 at 3:00 p.m. (ET) to provide DMA members with an opportunity to discuss their views relating to the Postal Regulatory Commission’s (PRC) proposed ratesetting rules in accordance with the provisions of the Postal Accountability and Enhancement Act (PAEA). The DMA hosted its first teleconference call on Wednesday afternoon, August 30.

The Federal Register today published the PRC’s proposal. To access the notice, click here.

To participate in the September 5 teleconference, DMA members should contact Tom Foulkes, DMA vice president for government affairs, at tfoulkes@the-dma.org.

In addition to encouraging members to submit individual comments to the PRC, DMA earlier this week met with Commission staff. Also, DMA continues to work with other mailing community groups and is developing its own formal comments for submission to the PRC.

In unveiling the proposals on August 15, PRC Chairman Dan G. Blair said, “Early implementation benefits all customers of the US Postal Service. In three separate appearances before Congress this year, I said the Commission would meet its goal of issuing final regulations by the end of October. The regulations will reflect the input we received through our two Notices of Advanced Rulemaking issued this year, as well as the three field hearings we held this summer. The parties’ contributions are appreciated. We’re on track, and I thank my fellow Commissioners and Commission staff for moving forward so quickly.”

Blair noted that there was a general consensus that avoiding a final omnibus rate case under existing procedures would allow the Postal Service and the Commission to dedicate more resources to implementing other aspects of the PAEA. “Having this new framework in place, will allow the Postal Service to operate with the flexibility envisioned by the Act,” he said.

The PRC’s proposed rulemaking consists of three parts:

· Regulations related to competitive products;

· Regulations related to rate adjustments for market dominant products, including the formula for calculation of the rate cap under which annual adjustments may be made; and

· Establishment of a Mail Classification Schedule, which categorizes products as either market dominant or competitive.

“The proposed regulations provide a broad framework that will evolve over time, and we will issue proposals shortly amending the Commission rules concerning complaints and reporting requirements to provide additional transparency,” Blair said.

The Commission’s proposed regulation seeks to make the new rate system workable for all stakeholders by:

· Enabling the Postal Service to price its own products;

· Ensuring competitive products pay their own way;

· Improving accountability; and

· Maintaining universal service at affordable rates.

The PRC on August 29 extended the dates for comments on the agency’s proposed regulations to implement a modern ratemaking and classification system for market dominant and competitive mail products. The comment period was extended due to a delay with a the PRC proposals’ publication in the Federal Register.

The comment period has been extended from September 14 to September 24, 2007, and the date for reply comments is extended from September 28 to October 9, 2007.

To access the PRC’s August 15 press release, click here.

To access DMA’s August 15 statement regarding the Commission’s proposals, click here.

# # #