USPS Will Not Seek Exigent Rate Increase

The U.S. Postal Service will not seek an "exigent" (higher-than-inflation) rate increase this year, Postmaster General Pat Donahoe told the Mailers Technical Advisory Committee today.

USPS asked the Postal Regulatory Commission last month for special permission to raise most postal rates by more than 4%, in addition to the usual rate increases that are capped by changes in the Consumer Price Index.That proposal came in a court-ordered reconsideration of the financially strapped Postal Service's request for rate hikes to help it overcome the effects of the recession.

But Donahoe told the mailers group today that USPS would pursue that case only to get the PRC to clarify its position on when such exigent rate increases are allowed.

It will, however, implement CPI-capped rate increases in January, he said. Based on current inflation numbers, those increases will probably be a bit above 2%.