[1001] Repositionable Notes (RPN) service allows mailers of First-Class Mail,

Periodicals and Standard Mail to affix a Post-It-type note to the outside of a mailpiece for a fee, in addition to postage for the host piece. This service was introduced, on a provisional (or test) basis, for a one-year period beginning April 3, 2005, and renewed for an additional year. Fees, which are based on a "value pricing" concept, are one-half cent for First-Class and 1.5 cents Standard Mail and Periodicals.

[1002] In this case, the Postal Service seeks and the Commission recommends another one-year extension for provisional RPN classifications and rates. If the Governors approve this recommendation, rates can remain at their current levels through April 3, 2008.1 As in the past, the Service will be able to seek another extension of RPN service, request permanent status for it, or allow it to expire.

[1003] The Commission's favorable recommendation on the requested change in the RPN expiration date marks its agreement with the Postal Service that another extension is justified based on limited RPN usage; the minor impact on revenue ($1.6 million) and volume; continuity and certainty for mailers; and the need to focus on the transition to a new ratemaking system envisioned by the Postal Accountability and Enforcement Act (PAEA). A fifth justification, which emerged while the case was pending, is that the sole filing indicating potential opposition to a settlement, was withdrawn.

[1004] The Commission notes that the Service's filing of the requested extension

triggered an automatic stay of the April 3, 2007 expiration date, so RPN service has not been interrupted while this case was pending. It appreciates the efforts of the Postal