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Postage rates may still go up

By Ed O'Keefe

The price of postage stamps may still increase to 46 cents next year. The U.S. Postal Service plans to appeal a regulator's decision to deny permission to raise rates by 2 cents.

The Postal Service will appeal the Sept. 30 ruling by the Postal Regulatory Commission to the U.S. Court of Appeals for the District of Columbia, asking the court to review the regulator's interpretation of the 2006 postal reform act. The law allows USPS to file an exigent -- or immediate -- rate case based on "extraordinary circumstances."

The Postal Service filed an exigent rate case this summer, hoping to raise about $2.3 billion in revenue during the first nine months of 2011. The mail agency argued that the economic downturn had caused a rapid decline in mail volume, requiring a price hike above the rate of inflation. Regulators agreed that the recession had contributed to a slump in mail volume, but said the USPS business model was more to blame.

"We have a fundamental disagreement with the PRC's interpretation of the law," Postmaster General John E. Potter said Friday. "This action is an investment in our future. We need to understand and define the rules under the current law should the Postal Service find itself in a similar situation in the future."

Leave your thoughts in the comments section below

By Ed O'Keefe  | October 22, 2010; 10:07 AM ET
Categories:  Postal Service  
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Comments

I had to pay my congressman thousands to keep our post office the closure list.

Posted by: blasmaic | October 22, 2010 2:09 PM | Report abuse

if "free market" jim demint and his senate friends would not require 1st class customers like me to subsidize junk mailers than rate increase would not be necessary and saturday deliveries would not be threatened. of course he used to be a junk mailer himself so i guess he is just protecting his friends and biggest campaign contributors.

Posted by: george32 | October 22, 2010 3:22 PM | Report abuse

We need to remember that Ben Franklin, thoughtful guy that he was, thinking about our welfare down the line, started the post office system because our nation needs a federal post office. He didn't start UPS, FEDEX, or DHL, although he was a pretty smart guy. Franklin wasn't so concerned about private mail delivery systems. For that reason I think the post office should continue to be nurtured as part of our government administration, so that it will be there when we need it. I think sometimes, except of course in time of war, the Post Office is our most useful Federal Government Service. Postal rates should be permitted to rise to cover postal expenses. The USPS should carry government mail and packages, preferentially. The USPS should be encouraged to modernize technologically, and innovate in the products it offers. There should be USPS sponsored college scholarships and business school fellowships that require the recipients to work a set number of years in the postal service as payback for support. The US Postal Scholars would elevate the image of the postal service in our society, and ensure the Postal Service a renewable cadre of talented workers.

Posted by: drray-yup | October 22, 2010 3:34 PM | Report abuse

Of course rates will go up, after the elections. God forbid the PO cuts costs! All they have to do is watch the Administration.

Posted by: Jimbo77 | October 22, 2010 3:41 PM | Report abuse

DAMN IT EVERYTHING IS GOING UP EXCEPT MY PAY. BUT THE DAMN GOVERNMENT'S PAY RAISE CAN AFFORD THE SKY HIGH COST OF LIVING! THEN THEY WONDER WHY AMERICA IS READY TO TURN ON THEM. WHAT A BUNCH DAMN IDIOTS, TO THINK THEIR GREEDY WAYS WOULD NOT CATCH UP TO THEM !

Posted by: JWTX | October 22, 2010 3:53 PM | Report abuse

What's with these odds cents stuff the USPS seems to love so much? Just raise the damn stamps to $.50 and be done with it.

Oh, but first be responsible and find some amount of saving in your workforce and do some re-structuring. As much as we love the USPS Americans can't keep on subsidizing this albetross of an qusi-businee indefinately.

Posted by: PracticalIndependent | October 22, 2010 4:12 PM | Report abuse

Of course rates will go up, after the elections. God forbid the PO cuts costs! All they have to do is watch the Administration. - Jimbo
==========================================
Why are you whining about the cost, Jimbo?

Try mailing a UPS or FedEx letter for 44 cents. They'll laugh you right out of their office. The minimum cost for a FedEx or UPS letter is about seven dollars. Quite a difference from 44 cents.

Posted by: DarrylScott | October 22, 2010 5:00 PM | Report abuse

Fire the Post Master General; remove the unions from the postal system; provide more services to the American people; stop whinning. Why can the USPS enjoy hikes in services when the American people are seeing reductions in their pay checks due to Obama and the historic tax hike that is about to smack down workers in January. I suppose unions are exempt from the tax hike. America needs to reform this corrupt government and union cronynism that is turning us into a model of France.

Posted by: lhudson828 | October 23, 2010 1:34 AM | Report abuse

The comments to this entry are closed.

 
 
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