Postal Service petitions court to rush rate hike decision

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Washington, D.C.—The U.S. Postal Service has asked a federal appellate court to expedite a decision on whether postal rates may be increased sometime next year.

In September, the Postal Service’s rate hike request was denied by the Postal Regulatory Commission. The Postal Service then appealed to the U.S. Court of Appeals in the D.C. circuit to overturn the PRC decision.

“Resolving this matter quickly is in everyone’s interest,” said Hamilton Davison, president of the American Catalog Mailers Association, in a statement. “Commercial mailers may be inhibited in planning their budgets and mailings for 2011 if there is uncertainty about prices, or the Postal Service’s ability to maintain its delivery standards beyond September 2011.”

The catalogers association and many other marketing organizations had opposed the Postal Service’s rate hike request.

If postal rate increases are allowed, first-class mail would rise from 44 cents to 46 cents, or 4.5%, but the increase would be much greater for some forms of commercial mail, such as small-size merchandise and product samples (23.3%), catalogs (12%) and periodical mailings (8%).

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