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DOCUMIENT RESUME
00436 - [A1051969]
The Role of the Postal Rate Commission Should Be Clarified.
GGD-77-20; B-114874. April 7, 1'77. Released April 21, 1977. 30
pp. + appendices (30 pp.).
Report to Sen. Lawton Chiles, Chairman, Senate Committee on
Appropriations: Treasury, Postal Service, General Government
Subcommittee; by Elmer B. Staats, Comptroller General.
Contact: General Government Div.
Budget Function: Comme~ce and Transportatio: Postal Service
(402).
organization Concerned: Postal Service; Postal Rate Commission.
congressional Relevance: Senate Committee on Appropridtions:
Treasury, Postal Service, General Government Subcommittee.
Authority: Postal Reorganization Act of 1970 (39 U.S.C. 101).
Because the Postal Service ind the Postal Rate
Commission disagree on the role the Congress 4ntended the
commission to play in postal affairs, disputes have arisen
involving the authority of the Commission tc: set certain postal
rates; pass on the validity of Service costs and revenue
estimates; and investigate management efficiency and economy and
the quality of mail service. Findings/Conclusions: The first
two rate cases handled by the Commission took 17 and 23 months
to complete. The cases required the time they did because of the
necessity to: develop a data base for a new regulatory
undertaking; and determine Ln appropriate costing method from
several alternatives. There is some doubt whether the Commissior
has the legal authority to require the Postal Service to provide
periodic reports on a regular basis. The Commission does not
have explicit authority under the act to subpoena information
required during a hearing. Existing law makes no Provision for
situations of court litigation where the Commission and the
Postal Service, as two official clients of the AttornEy General,
advocate conflicting pcsitions. The potential exists for the
abuse by the Postal Service's Board of Governors of its approval
authority over the amount the Commission can spend.
Recommendations: If the Congcess decides to leave the ratemaking
process essentially aL it is, its intent with respect to the
role of the Postal Rate Commission should be clarified. The
Postal Reorganization Act should be amended to provide the
Commission with authority to: impose a periodic repOLting
system; issue subpoenas; and represent itself in court
litigations. The Congress should also amend the Act tc provide
for congressicnal approval of the Postal Service's Board of
Governors' adjustments to the Commission tudgets. (Author/QN)](ViewImageLocal?handle=hein.gao/gaobaabwa0001&div=1&collection=&method=preview&ext=.png&size=3)