Interesting Opportunities Evolving Amid the Gray Clouds of 2007 Postal Rate Increases
The "Postal Accountability and Enhancement Act" (S. 662; H.R. 22) passed the Senate in February 2006 and the House of Representatives in August 2005. However, little progress has been reported from the joint House and Senate committee assigned to work out the differences between their two separate versions of the bill. Not wanting to dampen the spirits of their clients with a rate hike request concurrent with their annual Postal Forum, the Postal Service lost little time following their April convention, to file for a rate increase.
Affected industry associations, which were universely opposed to the huge price hike, quickly responded with trumpets blaring in urging their members to contact elected officials requesting Postal Reform legislation be completed as a hopeful relief from this cost driver.
At the beginning of May, the USPS announced that it has filed a formal request with the independent Postal Rate Commission (PRC) to raise postage rates by a system-wide average of 8.5% and an average increase of 9.0 % for Standard Mail. By class, the Post Office has proposed average increases as follows:
| · First-Class | 7.1% (3-cent stamp hike) | |
| · Standard | 9.0% | |
| · Periodicals | 11.7% | |
| · Package Services | 13.4% | |
| · Priority Mail | 13.8% | |
| · Express Mail | 12.5% | |
| · Special Services | 11.2% |
The filing triggers a ten month long trial-type administrative proceeding under law to examine the request. At the end of the ten months, the PRC will issue a recommended decision and rate schedule. Once approved by the Postal Service Board of Governors, the rate changes will most likely go into effect May 2007.
