USPS - Proposed Price Adjustments for Spring 2007

[Eric]

http://www.usps.com/ratecase/welcome.htm

Pricing Proposal Moves Forward

On February 26, 2007, the Postal Regulatory Commission issued its Opinion and Recommended Decision on the R2006-1 Omnibus Rate Case.

The Governors will review the Commission’s recommendation and, if they approve, the Board of Governors will set the implementation date for the new prices. The complete Opinion and Recommended Decision is available on the PRC Web site at www.prc.gov.


On May 2, 2006, the Postal Service Board of Governors approved filing an omnibus rate case with the Postal Rate Commission to adjust postage rates in spring 2007 to cover increasing operational costs. Our proposal calls for a 3-cent increase in the price of a First-Class stamp and a new "forever stamp" that would be good for any future 1-ounce single-piece First-Class Mail letter, no matter how prices may change beyond 2007.

Although postal rates did change in January 2006, that change was the result of a federal law passed in 2003 requiring us to place $3.1 billion in escrow. The 2006 filing is the first time in nearly five years that we proposed to adjust postage rates to cover rising operational costs. We included several improvements in our price relationships and incentives to send the right signals to enhance efficiency, offer more choices, and ensure that all types of mail cover their costs.