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Postage Rates Go Up in July - To Help Expected $2 Billion Loss by USPS

Press release from the issuing company

WASHINGTON — The Governors of the U.S. Postal Service today announced that they voted unanimously in closed session to modify the April 10 decision of the Postal Rate Commission (PRC). The original decision of the independent Postal Rate Commission (November 13, 2000) was allowed to take effect under protest January 7, 2001, pending further review. The rate schedule which had been implemented on a provisional basis in January will be replaced by the modified schedule on July 1. Under the new schedule, rates for a one ounce First-Class letter remain the same at 34-cents, but the charge for an additional ounce will now rise to 23-cents. Postcards will increase by one cent to 21-cents, the first increase in the postcard rate since 1995. "We take this action mindful of our statutory obligation to assure the financial integrity of the nation's universal postal system. As the officials responsible for matching revenue with costs, we found that the additional revenue is essential and is adequately supported in the record compiled before the Commission," said Robert F. Rider, Chairman, Board of Governors, U.S. Postal Service. The Postal Service is facing a loss this year that could exceed $2 billion due to a variety of factors, including a weakening economy and soaring fuel and personnel expenses. The Postal Service has taken a number of steps including cutting capital commitments by one billion dollars this year and freezing hiring for administrative positions and cutting programs and activity budgets. In addition, cost reductions totaling $2.5 billion through fiscal year 2003 have been targeted. ------------------------------------------------------------------------ Modified Postage Rates Effective July 1 Service Current July 1                                                                                     First-Class letter   1 oz. 34 cents 34 cents Additional ounce 21 cents 23 cents   Postcard 20 cents 21 cents   Priority Mail   1 lb. $3.50 $3.50 2 lb. $3.95 $3.95 Flat Rate Envelope $3.95 $3.95   Express Mail   ½ lb. $12.25 $12.45 up to 2 lbs. $16.00 $16.25 Flat Rate Envelope $16.00 $16.25   Services   P O Box rates no change Basic insurance no change Certified Mail $1.90 $2.10 Domestic Money Orders $0.75 $0.90 International M.O. no change [Note: This is a brief summary of commonly used rates affecting retail consumers. Other rate categories have also changed. MORE INFORMATION AVAILABLE AT http://www.usps.com/ratecase/. A complete listing of rate changes will appear in a future issue of the Postal Bulletin.]