US post office to give rate decision
_ The post office appears headed for a midsummer rate increase _ perhaps 3 cents more to mail a letter _ after winning near-unanimous agreement from businesses and organizations that usually fight vigorously to prevent higher postal rates.
Without the usual opposition, the independent Postal Rate Commission gave speeded-up consideration to the Postal Service’s request for new rates.
The commission was issuing its decision Friday.
Under the Postal Service proposal, which could take effect as early as June 30, the cost of a first-class stamp would rise 3 cents to 37 cents, a 2-cent boost would put the rate for post cards at 23 cents, and most other charges would also go up.
Battered by declining business in a slow economy, the post office lost $1.68 billion last year and was anticipating a $1.35 billion loss this year after freezing new construction and cutting 12,000 jobs.
The agency announced Sept. 11 it would seek higher rates to take effect this fall.
Then the terror attacks, followed by the anthrax-by-mail infections, socked the agency with hundreds of millions of dollars in additional costs for cleanup and preventing future mail contamination.
Knowing that would plunge the post office into even worse financial straits, Rate Commission Chairman George Omas suggested the post office and 60 or so organizations that usually fight it out over rates to reach an agreement all could accept.
nt rates are well within lawful limits,” argued a group including the Association for Postal Commerce, the Mailing and Fulfillment Service Association and the Recording Industry Association of America.
While many that normally oppose rate increases accepted this one, it was not always cheerfully.
Longtime rival United Parcel Service said that while it “could find fault with a number of the rates set forth in the settlement,” it joined in the agreement to help the post office “respond to recent extraordinary events and return to financial stability.”
One group of businesses commented that if the case had been fully argued, its members would have fought for different rates.
“The settlement agreement represents, we believe, the best result that is possible to achieve under current circumstances,” said the group, which included the Alliance of Nonprofit Mailers, AOL Time Warner, Coalition of Religious Associations, Magazine Publishers of America and the National Newspaper Association.
“However,” the group added, “the circumstances themselves _ the need for so much additional revenue so soon after the last two rate increases, based on estimates developed prior to Sept. 11, 2001 _ reflect poorly on the Postal Service.”
In addition to the 37-cent rate for the first ounce of first-class mail, other increases requested by the post office include:
_Increase the postcard rate 2 cents to 23 cents.
_A 1-pound priority mail item would rise 35 cents to $3.85.
_Increases in parcel post, with a 5-pount item costing $4.19 to $7.25 now, depending on distance, would rise to $5.03 to $9.43.
_A half-pound Express Mail item would jump $1.20 to $13.65.
_Certified mail would increase 20 cents to $2.30.
_Insurance charges would go up for most mail, depending on amount of insurance, but would be reduced for Express Mail.
_The charge for a return receipt would go up 25 cents to $1.75. ___
On the Net: Postal Rate Commission: http://www.prc.gov
U.S. Postal Service: http://www.usps.com
