(Direct Newsline)—Mailer groups welcomed the relatively small proposed postage increase recommended by the U.S. Postal Service but are girding for higher rates in as little as two years if Congress doesn’t enact postal reform legislation this year.

The USPS filed a rate case with the Postal Rate Commission yesterday seeking an expedited decision to raise rates and fees 5.4% for almost all categories.

“The postal service put off all classification changes and everything else it might have been considering to come up with a rate case that everybody could sign off on,” said Gene Del Polito, president of the Association for Postal Commerce.

He warned that if Congress does not pass, and President Bush does not sign, a postal reform bill this year, we’ll have “the mother of all rate cases in 2006.”

“This is the unfair stamp tax that we wouldn’t have if Congress had acted,” said Ellenor Kirkconnell, assistant director of the Alliance of Nonprofit Mailers.

She hoped the process for postal reform would start April 14, when the House Government Reform Committee begins its mark-up of Rep. John McHugh’s postal reform bill proposed in January and Sen. Susan Collins (R-ME) opens hearings on the Senate bill.

“This is a significant reduction from the double-digit rate increase that previously had been discussed,” said Jerry Cerasale, the Direct Marketing Association’s senior VP-government affairs, in a statement. “Moreover, considering that we will have gone at least three and a half years since the last rate increase, this filing represents relatively good news for all mailers.”

The filing seeks a rate increase solely due to the requirement of Public Law 108—18 that the postal service establish a $3.1 billion escrow fund. The law does not stipulate how the funds are to be used.

“If Congress passes and the president signs legislation overturning the escrow requirement, this case could be withdrawn,” said USPS spokesman Jerry McKiernan.

For standard mail weighing 3.3 ounces or less, the USPS proposes raising the presorted basic letter rate to 28.2 cents from 26.6 and the presorted basic non-letter rate to 36.3 cents from 34.4. For larger pieces, it recommends hiking the presorted basic rate to 20.9 cents from 19.8.

For nonprofit standard mail weighing 3.3 ounces or less, the USPS suggests boosting the presorted basic letter rate to 17.4 cents per piece from 16.5, and the presorted basic non-letter rate to 24.2 cents from 23. For larger nonprofit pieces, it asks that the presorted basic rate go up to 11.6 cents from 11.

First class postage would increase to 39 cents from 37 and the charge for additional ounces would go to 24 cents from 23.

Presorted first class rates would be raised to 37.1 cents from 35.2 and postcard rates would increase to 24 cents from 23.

Mailer groups welcomed the relatively small proposed postage increase recommended by the U.S. Postal Service but are girding for higher rates in as little as two years if Congress doesn’t enact postal reform legislation this year.

The USPS filed a rate case with the Postal Rate Commission today seeking an expedited decision to raise rates and fees 5.4% for almost all categories.

“The postal service put off all classification changes and everything else it might have been considering to come up with a rate case that everybody could sign off on,” said Gene Del Polito, president of the Association for Postal Commerce.

He warned that if Congress does not pass and President Bush does not sign a postal reform bill this year, we’ll have “the mother of all rate cases in 2006.”

“This is the unfair stamp tax that we wouldn’t have if Congress had acted,” said Ellenor Kirkconnell, assistant director of the Alliance of Nonprofit Mailers.

She hoped the process for postal reform would start April 14, when the House Government Reform Committee begins its mark-up of Rep. John McHugh’s postal reform bill proposed in January and Sen. Susan Collins (R-ME) opens hearings on the Senate bill.

“This is a significant reduction from the double-digit rate increase that previously had been discussed,” said Jerry Cerasale, the Direct Marketing Association’s senior vice president for government affairs, in a statement. “Moreover, considering that we will have gone at least three and a half years since the last rate increase, this filing represents relatively good news for all mailers.”

The filing seeks a rate increase solely due to the requirement of Public Law 108–18 that the postal service establish a $3.1 billion escrow fund. The law does not stipulate how the funds are to be used.

“If Congress passes and the president signs legislation overturning the escrow requirement, this case could be withdrawn,” said USPS spokesman Jerry McKiernan.

For standard mail weighing 3.3 ounces or less, the USPS proposes raising the presorted basic letter rate to 28.2 cents from 26.6 and the presorted basic non-letter rate to 36.3 cents from 34.4. For larger pieces, it recommends hiking the presorted basic rate to 20.9 cents from 19.8.

For nonprofit standard mail weighing 3.3 ounces or less, the USPS suggests boosting the presorted basic letter rate to 17.4 cents per piece from 16.5, and the presorted basic non-letter rate to 24.2 cents from 23. For larger nonprofit pieces, it asks that the presorted basic rate go up to 11.6 cents from 11.

First class postage would increase to 39 cents from 37 and the charge for additional ounces would go to 24 cents from 23.

Presorted first class rates would be raised to 37.1 cents from 35.2 and postcard rates would increase to 24 cents from 23.