Delivering Change at the Post Office

Priority Mail, Express Mail and parcels mailed in bulk by businesses fall under the competitive category. There is no cap on price increases for this category, allowing the Postal Service to offer discounts based on volume or to strike special terms. The Postal Regulatory Commission will ensure that the prices are reasonable and not being used to subsidize other types of mail.

Michael J. Critelli, chairman and chief executive of Pitney Bowes, a company that specializes in mail technology, views the new law as a framework for change. "It leaves to the regulator and to future actions by the Postal Service to fill in the rules and processes under which it will operate," he told the American University conference. "And that means that while there's great opportunity, there is also risk."

Blair has been working to reduce some of the risks. Since taking office in mid-December, he has attended the American University and other postal conferences, reaching out to mail users for advice on how to bring about the changes envisioned by the new law.

As part of the transition, the law permits the Postal Service to file for one more rate increase, no later than Dec. 20, under the old rules. But last week, the Mailers Council, a coalition of corporations and nonprofit groups, said it did not make sense to spend money on an old-style rate case when postal officials should be focused on developing a new system. Officials at the Postal Service said they have not made a decision.

Blair is adding staff to the agency, which now has 50 people, and is studying possible new procedures. The commission was previously known as the Postal Rate Commission, but Congress changed the name to signal its enhanced power.

Blair said Congress increased the commission's authority with the expectation that it would act in a "reasoned and balanced" way.

"The commission is very fervent about meeting the requirements established by the legislation," he added. "We take those very seriously and intend to meet them."

Stephen Barr's e-mail address isbarrs@washpost.com.