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Postal Service To Request Experimental Classification For Periodicals

Monday, September 16, 2002

Press release from the issuing company

WASHINGTON, D.C. -- The Governors of the Postal Service approved in early September the filing with the Postal Rate Commission of two targeted pricing initiatives that are designed to encourage greater efficiencies and to take advantage of the Postal Service's existing pricing flexibility. The two initiatives will be filed with the Postal Rate Commission as experiments. The first is a new classification for Periodicals. The other supports a negotiated service agreement (NSA) between the Postal Service and Capital One Services, Inc., its fourth largest customer and the largest single producer of First-Class Mail. As outlined in the Postal Service's Transformation Plan, NSAs are innovative pricing initiatives designed by the Postal Service to continually improve its efficiency, reduce costs, and increase revenue. Many Postal Service customers want access to prices and services targeted to their specific needs. One way to accommodate these needs is through customized agreements such as NSAs. Under current law, NSAs are one of the few ways the Postal Service can pursue pricing flexibility, which is a critical element of postal legislative reform. Details of the filings will be made public once the cases are filed, which is tentatively scheduled for mid-September.

 

 

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