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Even with President Bush's signing of the Postal Accountability and Enhancement Act, many issues remain about how well the U.S. Postal Service will be able to operate.

"There are still a lot of unanswered questions and it my take a cultural change at the Postal Service to make sure it works as well as new law intended," said Gene Del Polito, president of the Association for Postal Commerce. He cited transparency and accountability as key areas that need work.

And some fear the postal service may take unfair advantage of existing conditions to try and squeeze more money out of ratepayers.

"The USPS no longer has the revenue requirements in current rate case that it once did since the military pensions and escrow were removed with postal reform law," said Bob McLean, executive director of the Mailers Council, who noted that the USPS has the right to make one more rate case filing under the current system.

"We're hoping they don't do that," said McLean.

The law -- the first major change to the USPS since 1971 -- transfers responsibility for military service benefits payable to postal retireEs to the Department of the Treasury. It also eliminates the requirement that the U.S. Postal Service pay $3 billion annually into an escrow account -- a driver behind the three-cent increase in stamp prices this year (Direct Newsline, Dec. 11).

It's estimated that relief from that payment burden will free up $78 billion over the next 60 years. The USPS can use those funds instead to fund retiree health costs, pay down debt and keep postal rate increases in check.

The bill also caps postal rates by tying any increases to hikes in the Consumer Price Index. Increases will thus be more predictable for mailers and will come in at or below the rate of inflation.

The new bill also provides for a streamlined rate case process. Under the new system, the USPS will be able to set new rates more quickly than the current nine-month review process, and will do so under the guidance of a new Postal Regulatory Commission. That commission will have the power to revise any new rate caps or rate systems.