U.S. Postal Service seeks rate increase

April 8, 2005 at 12:20 PM
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WASHINGTON, April 8 (UPI) -- The U.S. Postal Service Friday requested a 5.4-percent increase in most of its categories, a raise that would increase first-class postage to 39 cents.

The USPS in a release, filed the request with the Postal Rate Commission, asking for an expedited recommendation from the panel with the increase, if granted, taking affect in early 2006..

The Postal Service said the increase application stemmed from a law mandating that USPS establish a $3.1 billion escrow fund. It added if the escrow rule was removed, it would withdraw the rate-hike request.

Under the proposal, the price of a first-class stamp would go from 37 cents to 39 cents. The last previous increase was a 3-cent rise on June 30, 2002.

The release said the proposed increase of 5.4 percent would be "spread across all classes and subclasses of mail and special services."

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