Rate board denies Postal Service price hike
WASHINGTON — The independent panel that oversees the U.S. Postal Service voted today to deny the agency's request to increase the cost of mailing a letter by 2 cents, keeping first-class stamps at 44 cents.
Ruth Goldway, chairman of the Postal Regulatory Commission, suggested at a news conference that the problem with the proposal was more in the packaging than the plea.
In July, the Postal Service proposed raising first-class postage from 44 cents to 46 cents as part of a strategy for dealing with a worsening financial crisis. The request required the commission's approval, because the margin of increase was higher than the existing rate of inflation. But the five-member panel unanimously said no.
In light of the decision, the Postal Service has a number of options, including a legal appeal, filing a new special rate-increase request to the commission, or requesting a smaller rate hike that would be automatically approved for rising within the rate of inflation.