WASHINGTON - In his opening remarks today, U.S. Postal Service Board of Governor Chairman Einar Dyhrkopp acknowledged receiving the recommended decision from the Postal Rate Commission (PRC) following a 10 month review by the independent Commission. The recommendations of the PRC will be reviewed by the Board at their December meeting and a decision on new rates will be made at that time. The Board approved rate adjustments for all categories of international mail, as well as a restructuring of international retail services. These changes will be implemented concurrent with the domestic rate case. The new rate structure replaces content-based rates with speed-based rates and seeks to make overall international retail services easier for postal customers. In other action, the Board today, received an overview of Postal Service finances from Chief Financial Officer and Executive Vice President Richard Strasser. The Board has approved - subject to further review - an operating plan that projects a loss of $480 million on total revenues of $67.9 billion. The Board has deferred full review of the integrated financial plan to a future meeting no later than February 6, 2001, citing the need to review the PRC rate recommendations with the projected financial plan.. The plan estimates that the combined effects of a rate increase in 2001, a slowing economy and a highly competitive environment will slow mail volume growth in 2001. Forecasts show mail volume is projected to increase only slightly, while population changes in the country will cause the number of addresses to balloon by over 1.7 million new delivery points. The operating plan sets ambitious productivity and expense management targets for FY2001. Among the targeted cuts is to reduce 13,200 workyears, building upon a reduction achieved in FY2000 of 6,200 workyears. CAPITAL PLAN The capital plan portion of the financial plan consists of $3.6 billion in capital investments and supports the goals of the strategic plan. The capital investment strategy identifies three priorities: * Concentrate on high return investments, such as automation/mechanization, and information platform projects; * Maintain the existing infrastructure (facilities, vehicles , and information systems) and, * Accommodate growth areas, including delivery network growth. FINANCING PLAN In conjuntion with approval of the integrated financial plan, the Board has agreed to increase the Postal Service's borrowing authority by $500 million for capital investment. Strasser indicated that the year ahead will be one of the most challenging faced by the service in recent times.