PRC approves USPS request for sticky notes extension

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The Postal Regulatory Commission on June 14 approved the U.S. Postal Service's request for another one-year extension to test the market desirability of repositionable notes.

The USPS's repositionable notes -- "sticky notes" to some -- allow mailers of First-Class Mail, Periodicals and Standard Mail to affix a Post-It-type note to the outside of a mail piece for a fee, in addition to postage for the host piece.

This service was introduced on a provisional basis for a one-year period beginning April 3, 2005, and renewed for an additional year. Fees, which are based on a "value pricing" concept, are one-half cent for First Class and 1.5 cents for Standard Mail and Periodicals.

The USPS filed for the one-year extension request on April 2, the day before the April 3 expiration date. If the USPS Governors approve this recommendation, rates can remain at their current levels through April 3, 2008.

The PRC said its favorable recommendation on the requested change in the RPN expiration date marks its agreement with the USPS that another extension is justified based on limited RPN usage; the minor impact on revenue ($1.6 million) and volume; continuity and certainty for mailers; and the need to focus on the transition to a new ratemaking system envisioned by the Postal Accountability and Enforcement Act.

The PRC also noted that the USPS's filing of the requested extension triggered an automatic stay of the April 3 expiration date, so RPN service has not been interrupted while this case was pending.

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