WASHINGTON — The cost of post office boxes throughout Central Oregon will rise sharply in August as the U.S. Postal Service adjusts its pricing structure.

As announced in The Federal Register on Wednesday, the Postal Service is increasing fees by around 20 percent on post office boxes in 1,625 areas across the U.S. starting Aug. 27. The change reflects a shift from “market-dominant fee group” to “competitive fee group,” an acknowledgment by the Postal Service that it no longer has a monopoly on postal services such as boxes, and it faces competition from private companies.

Affected areas in Central Oregon include Bend, Sunriver, La Pine, Madras, Prineville, Sisters and Terrebonne.

The Postal Service lost $5 billion in 2013, the seventh consecutive year it has operated at a net loss. While increases in electronic communication via email and text and the accompanying drop in letters account for some of the decreases in revenues, the Postal Service also points to its federally required payments to cover health care and retirement benefits for employees as a major factor in its financial woes.

According to financial filings by the Postal Service, post office boxes generated $889 million in fees in 2013, up from $836 million in 2012 and $808 million in 2011. Prices vary per box, which can range in size from 3 inches by 5.5 inches to 22.5 inches by 12 inches.

David Rubin, an attorney for the U.S. Postal Service, did not respond directly to a call from The Bulletin. He told the National Journal that the 20 percent price increase would mean a small box would cost $64 for six months, up from the $53 it now costs. The biggest box will increase from $440 for six months to about $528.

In the Federal Register notice, the Postal Service noted the new prices will include several “enhancements” for post office box customers, including: electronic notification of the receipt of mail, use of an alternate street address format, signature on file for delivery of certain accountable mail, and additional hours of access and/or earlier availability of mail in some locations.

In recent years, the Postal Service has tried to implement several major service changes to save costs. In 2011, it announced plans to study almost 3,700 underused rural post offices for possible closure, including 41 in Oregon. Ultimately, it reduced the number of proposed closures in Oregon to 20 but suspended that plan after considerable public outcry and political resistance. Last year, U.S. Postmaster General Patrick Donahoe said the Postal Service would cease Saturday delivery, saving $2 billion a year, but that plan was also scrapped.

In 2002, the Postal Service handled 102 billion pieces of first-class mail. By 2011, that number had dropped to 74 billion, and the Postal Service projects a further 50 percent decline in volume by 2020.

— Reporter: 202-662-7456, aclevenger@bendbulletin.com