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Benefit-Cost Regulation of Negotiated Service Agreements

In: Progress toward Liberalization of the Postal and Delivery Sector


  • David M. Levy

    (Sidley Austin Brown & Wood LLP)

  • Joy M. Leong

    (Sidley Austin Brown & Wood LLP)

  • Lawrence G. Buc

    (SLS Consulting Inc.)

  • Michael K. Plunkett

    (United States Postal Service)


During the past 30 years, many regulatory commissions have abandoned their traditional hostility to customized rate and service contracts between regulated carriers or public utilities and individual customers. In 2002, the U. S. Postal Rate Commission (“PRC”) joined this trend, announcing that the PRC would look favorably on Negotiated Service Agreements (“NSAs”) between the United States Postal Service (“USPS”) and individual mailers. To date, however, the NSA mechanism has failed to live up to its potential. In contrast to the flourishing of customized contracts in other industries, only four NSAs with USPS have received regulatory approval in the past three years.

Suggested Citation

  • David M. Levy & Joy M. Leong & Lawrence G. Buc & Michael K. Plunkett, 2006. "Benefit-Cost Regulation of Negotiated Service Agreements," Topics in Regulatory Economics and Policy, in: Michael A. Crew & Paul R. Kleindorfer (ed.), Progress toward Liberalization of the Postal and Delivery Sector, chapter 0, pages 341-357, Springer.
  • Handle: RePEc:spr:topchp:978-0-387-29744-6_20
    DOI: 10.1007/978-0-387-29744-6_20

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