U.S. postal reform bill hailed by mailers.

The Postal Accountability and Enhancement Act (H.R. 6407) was passed by both the House of Representatives and the Senate and signed into law by President Bush in December.

"This represents a lot of work done behind the scenes, and a lot of compromises made with the mailers and the unions," said Jerry Cerasale, senior vice president of government affairs for the Direct Marketing Association. "We are very proud and excited that this has finally moved forward."

It's the first major overhaul of the USPS since 1970 and is expected to help stabilize mail volume and postage prices. The final bill contains elements that mailers have sought for years:

* A cap that ties future postal rate increases to the rate of inflation,

* A tight exigency clause defining the conditions for emergency rate increases,

* The return of the military retirement cost burden ($27 million) to the Treasury, and

* Language supporting the continuation of work-sharing agreements.

The legislation will not affect the current rate case, probably to take effect in May, because the new statute provides that within 12 months from the date of enactment, the service may file one more rate case that will be tried under the current law.