USPS rate increase disappoints Collins

Sen. Susan Collins (R-Maine) recently said she was disappointed by the Postal Regulatory Commission’s decision to approve postal rate increases for first-class, standard, periodicals and packages, and warned the increases could lead to less mail.

“I am disappointed that the PRC has approved a postal rate increase averaging six percent,” Collins said. “My concern is that a rate increase of this magnitude will worsen the postal service’s crisis by further driving down mail volume, eroding the postal service’s steadily declining customer base and leading to a further decline in revenues…”

USPS should implement initiatives that attract new customers and lead to an increase in mail volume, Colilns added.

“…Even though temporary, these rate increases may well do just the opposite,” she said.

Collins also expressed concern that the exigent rate increases are not in compliance with laws that tie price increases to the rate of inflation.

“…Congress intended the authority to increase rates under an exigent case to be used only in extreme and unforeseen instances – such as terrorist attacks, natural disasters and other events that would cause significant and substantial disruptions in service,” Collins said. “The exigent rate provisions were not meant to be used to remedy poor economic performance or to offset an ongoing marketplace trend, such as the increased use of electronic mail.”