PRC Briefs DMA Members on Final Ratemaking Regulations

November 14, 2007 — The Direct Marketing Association (DMA) today hosted an online and teleconference briefing for its members with Steve Sharfman, general counsel of the Postal Regulatory Commission (PRC), to further clarify the PRC’s new ratemaking procedures for the US Postal Service (USPS).

“We appreciate the extent to which the PRC continues to reach out to the mailing community to address our concerns about the future of the Postal Service as a viable marketing channel,” said Jerry Cerasale, DMA senior vice president for government affairs. “DMA and its members greatly benefited from Mr. Sharfman’s clarification of many important provisions within the PRC’s final regulations, including Negotiated Service Agreements (NSA) for market-dominant classes and price caps on rate increases. Like the PRC, we are hopeful that that the final regulations will provide the Postal Service the transparency and accountability needed to remain competitive and solvent in the ever-changing global marketplace.”

The new regulations, which the PRC announced on October 29, 2007, address rate adjustments for the Postal Service’s market-dominant products. The regulations also address competitive products and the establishment of a Mail Classification Schedule, which categorizes products as either market dominate or competitive as set forth by the Postal Accountability and Enhancement Act signed into law in December 2006.

Cerasale praised the PRC “for delivering the new regulations in such a timely manner that will hopefully help mailers avoid another old-style, costly, and adversarial rate case proceeding. Under the new rules, we are optimistic that the next rate case, which could occur in late spring or early summer of 2008, will be decided under the PRC’s new rules, which would ensure that the next hike will be tied to the Consumer Price Index as required by the new law.”

“We are pleased to have been able to represent the views of both commercial and nonprofit mailers on this important issue,” Cerasale added. “And as we work to implement more provisions of the Postal Accountability and Enhancement Act, we are committed to continuing those efforts.”

To access online the PRC’s new procedures, visit the Commission’s homepage at www.prc.gov, or via the Federal Register (November 9, 2008) by clicking here.

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