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Considers the procedures of the ICC and the CAB for establishing postal rates, the role of Congress in determining postal rate policy, and considers proposals for the establishment of an independent Federal postal rate board,
GAO examined the U.S. Postal Service's proposals for modifying the postal ratemaking process, focusing on: (1) how the current ratemaking process could be improved; and (2) the effects of the 1970 Postal Reorganization Act on postal rates. GAO found that: (1) the Postal Service has petitioned the Postal Rate Commission to give it more flexibility in pricing postal products and establish a market-based mail classification schedule; (2) new Postal Service pricing mechanisms could minimize mail volume losses and keep rates lower for most mail classes; (3) Congress may have to clarify the 1970 ratemaking criteria because the Postal Service and Commission disagree on the extent that market forces impact postal rates; (4) postal ratemaking usually takes 10 months to complete and it does not include the time the Postal Service spends preparing rate cases and appeals; (5) proposed postal ratemaking reforms include developing accelerated procedures for market testing new products, establishing rate bands for competitive products, and allowing volume-based rates for high volume shippers; and (6) the Postal Service needs to be able to control labor costs and resolve workforce issues to remain competitive in the postal marketplace.
Considers the procedures of the ICC and the CAB for establishing postal rates, the role of Congress in determining postal rate policy, and considers proposals for the establishment of an independent Federal postal rate board,
Considers the procedures of the ICC and the CAB for establishing postal rates, the role of Congress in determining postal rate policy, and considers proposals for the establishment of an independent Federal postal rate board.