Sen. Susan Collins: USPS Proposed Exigent Rate Increases Are Not Justified Under Law

Senator Susan Collins issued the following press release:

Collins Backs Position taken by the Affordable Mail Alliance

WASHINGTON, D.C. – U.S. Senator Susan Collins, Ranking Member of the Senate Homeland Security and Governmental Affairs Committee and author of the landmark postal reform law, the Postal Accountability and Enhancement Act of 2006, issued a statement today in support of the Affordable Mail Alliance’s Motion to Dismiss the U.S. Postal Service’s proposed rate increases.

The Alliance filed its motion with the Postal Regulatory Commission, arguing that the Postal Service’s rationale for its proposed rate hikes does not meet the required criteria to use an exigent rate case – which would allow postal rates to exceed the annual price increase cap.

Senator Collins’ statement follows:

“As the author of the 2006 postal reform law, I completely agree with the Affordable Mail Alliance that the Postal Service’s proposed exigent rate increases are not justified under law.

“Let me be clear. The authority to increase rates under an exigent case can only be used in extreme and unforeseen instances – such as terrorist attacks, natural disasters, and other events that would cause significant and substantial disruptions in service. The law was not meant to be used to remedy poor economic performance or to offset an ongoing marketplace trend, such as the increased use of electronic over traditional mail.

“In addition to not meeting the criteria set forth in the law, the exigent rate case is simply a bad business decision. Rather than help restore postal solvency, an exigent rate increase will worsen the Postal Service’s crisis by further driving down mail volumes and thus revenues. Such action will erode further the Postal Service’s already declining customer base. The Postal Service should be looking at initiatives that will increase volume and attract more consumers. These rate increases will do just the opposite.”

7 thoughts on “Sen. Susan Collins: USPS Proposed Exigent Rate Increases Are Not Justified Under Law

  1. I agree with Senator Collins, raising rates now is cutting off your nose to spite your face. However, the Senator and Congress should be scting immediately to remove the ” pre-paying retiree health benefits ” from the Postal Service as THAT is the major reason that the Postal Service is in the deep financial trouble that it is in. Of course the fact that the Postal Service is probably the only federal agency that is completely unaccountable for it’s spending is also a serious problem that needs addressing by Congress.
    The latest scandal comcerning ex-vice president Robert Bernstock and his use of postafunds, postal employees, and his giving away of contracts to companies that he is financially involved with; show that the Postal Service is lacking substantial oversight. When incidents like this are allowed to happen and swept under the proverbial rug, it demonstrates the need for outside oversight.

  2. If they are not justified Sen Collins then you and the other Confressional members need to get to work on the PREFUNDING OF RETIREE HAELTHCARE BENEFITS, lowering them substantially if not doing away with them altogether(my option, get rid of them), and rectifying the imbalance of the CSRS overpayment to the USPS…..then we wouldn’t, shouldn’t need an increase! AND WE CRAFT WORKERS WOULD NOT HAVE TO HAVE LOWERED PAY, INCREASED COST TO HEALTCARE, ETC!!!!

  3. THE LAW was meant as a stamp tax, and you wrote it!! Personally, I wouldn’t tell too many people that one.

Comments are closed.