opinions, and habits of mailers of First- Class Mail letters is worthy of protection, in light of inroads made by those seeking to promote electronic diversion away from the mail. The Postal Service's certified request for reconsideration is still pending before the Commission.

     On April 29, 2003, Walz Postal Solutions (Walz) filed a complaint with the PRC, pursuant to 39 U.S.C. 3662, challenging the authority of the Postal Service to transfer Certified Mail delivery information to customers in bulk electronic files. In the most recent omnibus rate case (Docket No. R2001-1), the PRC recommended, and the Postal Service governors approved, enhancements to Certified Mail service that included providing customers with delivery information. The Domestic Mail Classification Schedule (DMCS) language resulting from that case referred generally to "electronic confirmation."

     The Postal Service filed its Answer to the Complaint on May 29, explaining that electronic file transfer was within the scope of the DMCS language. The Answer recommended that the PRC dismiss the Complaint, without discovery or hearings.Walz filed a reply to the Postal Service Answer on June 19, and the Postal Service responded on July 7, 2003. On October 9, 2003, the PRC concluded that the complaint presented no persuasive argument alleging a continuing violation of the Postal Reorganization Act. The PRC thus exercised its discretion to dismiss the complaint without hearings. The commission, however, noted procedural deficiencies in the Postal Service's actions concerning the electronic file transfer option.

     During the summer of 2002, the Postal Service and the PRC jointly sponsored a two-day public summit on postal rate making. These sessions were conducted to solicit public and mailer input on rate-making

issues, and to encourage discussion of ways to improve the rate-making process, short of legislative change. The summit focused on three main topics: (1) prospects for "phasing" the next omnibus postal rate and fee increases; (2) procedural improvements that could facilitate omnibus rate cases; and (3) the concept of negotiated service agreements, which are particularized agreements between the Postal Service and individual customers that could provide the basis for distinct rates and classifications. While action on the first topic was deferred until the filing of the next rate case, the Commission and the Postal Service took significant action during 2003 on the other topics, including the litigation of a proceeding to establish the first NSA (see current section D, previous item 2, Capital One Negotiated Service Agreement).

     During 2003, the PRC initiated several notice-and-comment rulemaking proceedings to consider amendments to its Rules of Practice and Procedure that govern omnibus rate cases and other cases before the Commission. On October 21, 2002, the PRC adopted final rules making the filing of electronic documents over the Internet the standard procedure for filing documents in its proceedings (Docket No. RM2002-1). The Commission refined these requirements in orders issued in December of 2002 and March of 2003 (Docket Nos. RM2003-2, RM2003-4). On December 13, 2002, the PRC proposed rules that would require the Postal Service in each rate case to develop and present overview, or "roadmap" testimony that explains technical and other interrelationships among the various Postal Service proposals (Docket No. RM2003-1). The PRC adopted final rules creating a roadmap witness requirement on August 7, 2003. On January 8, 2003, the PRC initiated a rulemaking to consider amendments that would update and supplement the Postal Service's practice of filing with the Commission periodic reports on Postal Service finances and operations (Docket No. RM2003-3). The PRC issued its final rule requiring changes in periodic reporting on November 3, 2003. Finally, on August 27, 2003, the PRC initiated Docket No.