Postal Service Defends Five-Day Delivery Schedule and Cost Savings
USPS challenges Postal Regulatory Commission analysis, stands by its $3.1 billion savings estimate.
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Further, the Postal Service report explains that the Commission's estimate of approximately $1 billion less in annual operational savings stems from the PRC's use of its rate case approach to product cost analysis, which assumes a static network. The PRC acknowledged in its Jan. 30, 2009 Report on Universal Service and the Postal Monopoly that such an approach fails to consider the operational impact of changing delivery frequency.
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