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Because the recently enacted postal reform legislation grants the Postal Service wide flexibility in future rate setting for its competitive products, the Commission’s recommendations for rate designs for USPS Express Mail, Priority Mail and Parcel Post largely mirror the Service’s proposals.
Noting that this was the first recommended decision of the new PRC, as well as his first case as a commissioner and as chairman, Blair observed that the central tenet of the case was having rates accurately reflect costs saved through work-sharing, and a rate design that sends the signal that the shape of the mail piece plays an important role in controlling costs.
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