IBJNews

Post office still seeking rate hike for 2011

Back to TopCommentsE-mailPrintBookmark and Share

The post office is trying again to get a rate increase next year.

The agency said Friday it is appealing the Postal Regulatory Commission's rejection of its requested increase.

The post office had asked for a 2-cent increase in the current 44-cent price for First Class stamps starting in January. Officials said the increase would help compensate for increasing losses caused by a drop in mail volume as a result of the weak economy, and a shift in communications and bill paying to the Internet.

The commission rejected that request on Sept. 30.

The Postal Service said it will ask a federal court of appeals in Washington to review of the commission's interpretation of the law that governs how prices can be set.

The post office argues that the commission misread the statute and applied an incorrect standard in evaluating the request for a price increase.

"We have a fundamental disagreement with the PRC's interpretation of the law," Postmaster General John E. Potter said in a statement. "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."

According to the post office, the rate increase would generate about $2.3 billion in added revenue.

The post office is facing a $6 billion loss and has cut staff, taken steps to close offices and asked Congress for permission to reduce mail delivery to five days a week.

The post office is an arm of the federal government, but does not receive tax dollars for its operations.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
ADVERTISEMENT