Price Of Postage Rose Sunday

Will Rise 3 Cents

                                    (File)

Consumers can expect to pay more to mail letters and packages next week when the U.S. Postal Service implements a significant rate hike.

A regular first-class mail stamp will increase from 55 cents to 58 cents (6.8%) while package services will jump 8.8% effective Sunday. A coalition of mailers had sought to block the rate increase, but the U.S. Court of Appeals for the District of Columbia Circuit denied a petition to put block the increase.

The court issued a statement that the petition was denied, but did not provide any reason for that decision. The National Newspaper Association, News Media Alliance and other large-scale mailers argued that the Postal Regulatory Commission’s decision to authorize the USPS increase was flawed and that the increase should be delayed until the court determined whether the PRC was correct.

The newspaper association, which represents primarily weekly and small daily newspapers, argued that the increase would “create immediate and irreparable harm to users of the mail,” said Tonda Rush, NNA public policy director and general counsel.

“This was always the longest of longshots to try to delay the increase,” NNA Chair Brett Wesner, president of Wesner Publications, Cordell, Okla., said. “We felt the impact of a double-digit increase between last January’s rate hike and the second one of the year coming this month was overwhelmingly damaging to community newspapers.  So we decided to join in this appeal.  NNA appreciates the support of News Media Alliance and the good work of William Baker of the Potomac Law Group for the skillful handling of our petition.

“The court rarely issues such stays. This decision does deliver a blow to newspapers that are struggling to stay afloat. It does not diminish the basis of our original lawsuit. The oral argument on that case will proceed on Sept. 13,” Wesner added, saying a decision by the court is expected by the end of the year. “That decision could send the whole matter back to the PRC for reconsideration, and the PRC has the authority to roll back this increase if it so chooses. Congress also has the authority to take action here. I think our members have led the industry in reaching out to Congress about the financial distress of USPS and the need for postal reform.”

Werner said it’s understandable about the Postal Service’s motivation for seeking the maximum rate increase allowed. “But we, like a growing group of other stakeholders using this universal service, believe a fundamental reworking of the postal laws is the right way to approach the problem, not putting a huge burden on the backs of small businesses.”

Dave Partenheimer, a postal spokesman, confirmed the agency will implement the new prices as scheduled. 

"The new pricing will enable us to grow revenue to help achieve financial sustainability to fulfill our universal service mission, as outlined in our Delivering for America plan," Partenheimer said. "Even with the rate increases, Postal Service prices will remain among the world’s most affordable."

The rate hikes were the first USPS implemented under a new authority PRC granted last year, tying price caps to what the regulatory commission identified as USPS’ two biggest cost drivers — fewer pieces of mail going to more addresses and mandatory payments the agency must make toward benefits for future retirees.