Sen. Susan Collins: USPS Rate Hike, Service Cuts May Lead To Fewer Customers

July 8, 2010 by
Filed under: postal 

The U.S. Postal Service Tuesday announced plans to seek approval for a wide array of rate increases, filing its request with the Postal Regulatory Commission (PRC).

In response, Senator Susan Collins issued the following statement on the USPS proposal:

“As the principal author of the 2006 postal reform act, I am disappointed that the Postal Service is seeking rate increases that far exceed the rate of inflation, averaging between four and six percent and for one class of mail as high as 23 percent. Only when the Postal Service can demonstrate ‘exceptional or extraordinary circumstance’ does the law allow for rate increases that exceed the rate of inflation. The Postal Service cites as one factor justifying the exigent rate case ‘continued movement toward electronic alternatives’ despite that trend being neither unexpected nor extraordinary.

“The Postal Service’s proposal could actually worsen the erosion in its customer base. Raising the rate for catalogs by more than five percent will cause some businesses to reduce their mailings of catalogs and to direct more of their customers to websites for information about their products. The Postal Service’s plans to hike rates so substantially as well as to cut services may well produce a death spiral of fewer customers and ever declining volume, exactly the wrong direction,” Collins said.

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Comments

6 Comments on Sen. Susan Collins: USPS Rate Hike, Service Cuts May Lead To Fewer Customers

  1. macax on Thu, 8th Jul 2010 9:10 am

    2. Just what I would expect from someone whose job depends on the mood of the voters in her state. Why doesn’t the good senator make the really tough decisions and allow the closing of small post offices that need to be closed and allow Saturday delivery to end to save money. That might jeopardize her job. Obviously another Monday morning quarterback who can’t come up with a solution to a problem she herself contributes to.

  2. roy on Thu, 8th Jul 2010 10:04 am

    3. Sen Collins is rught on.Every good businessman knows that in tough times you must provide more service.She is one of very few who have any real good ideas about the post office.

  3. A Smalls on Thu, 8th Jul 2010 11:21 am

    4. Her only concern is to LL bean. She authored this stamp tax for a republican administration and now want to blame the USPS.

  4. Doug Hilbert on Fri, 9th Jul 2010 4:28 am

    5. Cut service and raise rates, a sure fire method to go out of business. USPS management is working to fail so some huge conglomerate can take over and pay Potter and his cronies the millions they’re worth.

  5. james gortze on Fri, 9th Jul 2010 12:37 pm

    6. collins is the f’n moron that started the spiral now she disapproves!!! i think there is a ton we can do prior to raising rates, for some reason, these postal morons can’t figure it out

  6. Babiesbengals on Fri, 9th Jul 2010 6:39 pm

    7. Does anyone see the BIG PICTURE??????? We need to do everything we can to protect our jobs!!!!! There are enough people out of work and on unemployment. We don’t need to add anymore people to the unemployment line! Start trying to protect your jobs!!!!!!!