President George W. Bush signed into law new postal legislation that will benefit both residential and business customers by ensuring predictable price increases tied to the rate of inflation.

The Postal Accountability and Enhancement Act is the first major change to the Postal Service since 1971. The law enables the organization to continue its transformation efforts and cost-cutting measures.

“This new law could not have come at a better time. The Postal Service has never been stronger and this law enables us to build on our successes,” said Postmaster General John E. Potter, who attended the White House signing ceremony Dec. 20. The Postal Service has ended a fourth consecutive year with positive retained earnings and a seventh consecutive year of improved productivity, and has benefited from record service and customer satisfaction scores that are independently measured.

By staying focused on customers, service and cost control, the U.S. Postal Service has achieved remarkable results and is better prepared than ever to help ensure a prosperous future for mail, according to an annual progress report on the organization’s transformation efforts.

“Transformation helped deliver solid results across the board, but even greater results lie ahead,” wrote Postmaster General John E. Potter and James C. Miller III, chairman of the Board of Governors, in an introduction to the document. “Aided by powerful new technologies, disciplined field management and unprecedented information flows between customers and postal operations, we are poised for new breakthroughs in service improvement and cost reduction.”

The Strategic Transformation Plan, 2006-2010, is the Postal Service’s roadmap for the future. It builds on the original Transformation Plan announced in 2002, which set a foundation for change that has delivered unprecedented achievements in revenue, productivity, service and employee engagement.

The 2006 Annual Progress Report, available on usps.com, examines progress made on key transformation strategies during fiscal year 2006.

The report reflects the Postal Service commitment to being the best delivery service, detailing how the organization has used innovation and quality improvement to make mail a more powerful and versatile business tool.

From introducing new barcode technology to expanding the use of scanning devices, more information is available about the mail as it moves from production to delivery than ever before. That enables the Postal Service to fine-tune service and cut costs even further. The organization has embraced the Internet as an opportunity to improve access by bringing the Post Office to the customer and by offering quick, easy and convenient online options to pay for postage, shipping, mailing, and package pickup.