Another Increase?
Postal Commission backs `forever' stamp, 2-cent hike in letter rate

WASHINGTON (AP) - Say goodbye to those pesky 1- and 2-cent stamps that used to clutter up desks and purses every time the price of mailing a letter went up.

A new "forever" stamp good for mailing a letter no matter how much rates rise was recommended Monday by the independent Postal Regulatory Commission. The panel also called for a 2-cent increase in firstclass rates to 41 cents, a penny less than the post office had sought.

In addition, the changes would sharply scale back the price of heavier letters.

"Adoption of this proposal is good for the Postal Service, postal customers and our postal system," commission chairman Dan G. Blair said at a briefing.

A forever stamp would not carry a denomination, but would sell for whatever the first-class rate was at the time.

For example, if the 41-cent rate takes effect, forever stamps would sell for 41 cents. If rates later climbed to 45 cents or more, the price of the forever stamp would also go up at the counter or machine, but those purchased before the change would still be valid to mail a letter.

So there would be no need to buy smalldenomination stamps to add to envelopes.

Currently, first-class mail costs 39 cents for the first ounce and 24 cents for each additional ounce.

While the first ounce would rise to 41 cents under the proposal, it would cost just 17 cents for each additional ounce.

That means the price of sending a twoounce letter would actually decrease from 63 cents to 58 cents.

Postage rates last went up in ing mail. The proposal also recommended

The trade group The Greeting a 2-cent boost, to 26

Card Association also said cents, in the cost of mailing a

it was pleased the commission post card, also a penny less

recommended the forever than the Postal Service had

stamp and trimmed back the sought.

rate increase to 2 cents.

Blair said the rate proposals

The matter now goes back were scaled back because

to the board of governors of the higher rates the post office

the post office which can accept proposed would have raised

the recommendations or more income than necessary

ask for reconsideration. If accepted, for the service to break even

the new rates could in 2008.

take effect as soon as May.

The proposal also suggested

The Postal Service applied changes in a variety of other

for higher rates last May. rates including a 17-cent surcharge

Since then the commission on "odd-shaped" mail

has received 139 pieces of testimony that cannot be processed using

from 99 witnesses and letter-sorting machines.

held 34 days of hearing on the

William Burrus, president

request in developing its recommendations. of the American Postal Workers

Union, called the decision

Under legislation approved "a major victory for the

by Congress last year, the American people." He said

commission will develop a the union had argued for the

new, less cumbersome system smaller rate increase.

of raising rates for use in the

In addition, Burrus said, the

future, and also has more authority commission agreed with his

to regulate postal activity. January 2006.

Postmaster General John E. Potter has pointed out that "the Postal Service is not immune to the cost pressures affecting every household and business in America."

For example, each penny increase in the price of a gallon of gasoline costs the post office $8 million a year, and the post office cannot simply add a fuel surcharge to its rates.

Proposed rate changes include:

Priority Mail, 1 pound, $4.60, up from $4.05.

Express Mail, 8 ounces, $16.25, up from $14.40.

Parcel post, 5 pounds, $5.67, up from $4.36.

Certified Mail, $2.65, up from $2.40.

Money orders up to $500,

$1.05, up from 95 cents.

Bank statement, 3 ounces, union on limiting discounts

58.4 cents, down from 73.9 cents.

Department store bill, presorted, 37.3 cents, up from 37.1 cents.

Weekly newsmagazine, 5.8 ounces, presorted, 20.6 cents, up from 18.5 cents.

Household magazine, 13.8 ounces, presorted, 33.6 cents, up from 28.9 cents.

National newspaper, 10 ounces, presorted, 36.4 cents, up from 31.4 cents.

Small nonprofit magazine, 4 ounces, presorted, 32.4 cents, up from 28.3 cents.

Advertising, 2 ounces, presorted, 23.3 cents, up from 21.4 cents.

Advertising, 9 ounces, large envelope, presorted, 62.9 cents, up from 57.0 cents.

Nonprofit mail, 1 ounce, 16.4 cents, down from 17.0 cents.

Church bulletin, 12.7 cents, down from 18.9 cents.

Library mail, 2 pounds, presorted, $1.88, up from $1.78.

On the Net: U.S. Postal Service:

http://www.usps.com large mailers get for presort-