Postal Service to Appeal Rate Increase Denial

The Postal Service has decided to appeal a Sept. 30 ruling by the Postal Rate Commission denying its request for a 5.6 percent emergency rate increase.

The commission had ruled that USPS had failed to justify an emergency boost, as required under the law authorizing petitions for such increases. Instead, the panel ruled, USPS actually needed the money because of "long-term structural problems" in postal operations.

The Postal Service said commission members "misread the statute and applied an incorrect standard."

"We have a fundamental disagreement with the PRC's interpretation of the law," said Postmaster General John E. Potter. "This action is an investment in our future. We need to understand and define the rules under the current law should the Postal Service find itself in a similar situation in the future."