April 2005
USPS Raising Rates...Or Not?
Yes, what you've heard is true: On Friday, April 8, 2005, the USPS officially
filed a rate case with the Postal Rate Commission. The USPS is asking for an
increase of 5.4% for nearly all rates, across the board. But this rate case
is different from previous rate cases in that it the post office is not attempting
to recover losses from operating costs. Law mandates this rate increase.
Public Law 108–18 requires the USPS establish a $3.1 billion escrow fund, although it does not indicate how the money is to be spent. There are some facts you may not have heard. The last rate increase was in June 2002 and, as the USPS has promised to keep rates stable until 2006, this new increase will not take effect until sometime next year.
If the rate case is accepted, the 1st class stamp, currently 37 cents, would increase to 39 cents. I say if because this rate case, unlike previous rate increases, this one is not guaranteed. Since the rate increase is solely to fulfill a requirement of law, if the law should be repealed or changed, the rate case would be withdrawn and postage rates would remain unchanged.
Even if rates do increase in 2006, that would be after more than three and a half years of stable rates. Not many companies could boast that.
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The SCF Map identifies the service areas of all USPS Sectional Center Facilities (SCF) throughout the US. The SCF Map is a complete U.S. map and also includes county names and boundaries. Each SCF boundary is clearly shaded in one of several different colors.
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Email Caveats: Why We Never Stopped Mailing
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