Date set for postal rate increase

Posted 9:51AM on Tuesday 9th April 2002 ( 23 years ago )

WASHINGTON - Mailing a letter, bill payment or birthday gift will cost more starting June 30. Higher postal rates, including a 3-cent boost to 37 cents for first-class mail, were approved in February. The effective date was announced Tuesday by the Postal Service board of governors. "The governors recognize that raising rates is not the long-term solution to retaining universal service," board chairman Robert Rider said. But he said the higher rates will help the agency cope with the economic downtown and the cost of last fall's terrorist attacks. The increase will give the cash-strapped postal service a boost as it tries to cope with declining business and hundreds of millions of dollars in costs from the terror attacks and anthrax contamination last fall. Postmaster General John Potter said last week that there won't be another increase until at least 2004. The Postal Service suffered a $1.6 billion loss last year, before the terror attacks that cost it hundreds of millions more. The agency has halted new construction and cut its staff by 12,000 over the last year. While this rate increase is expected to provide some financial breathing room, officials continue to stress that to achieve long-term health the agency needs changes in the way it operates. Potter has announced an end to the self-imposed freeze on closing small post offices and sent a transformation plan to Congress seeking more flexibility in changing rates, adding new services and negotiating charges to large mailers. While the cost of the first ounce of first-class mail goes up 3 cents, each additional ounce will cost 23 cents, the same as currently. Some other rate increase some other changes taking effect include: --Post card: 23 cents, up 2 cents. --Priority mail, 1 pound: $3.85, up 35 cents. --Express Mail, 8 ounces: $13.65, up $1.20. --Parcel post (varies), typical 2 pound: $4.14, up 69 cents. --Certified mail: $2.30, up 10 cents. --Signed return receipt: $1.75, up 25 cents. --Money order up to $500: 90 cents, unchanged. --Bank statement, 3 ounces: 83 cents, up 3 cents. --Presorted utility bill: 27.8 cents, up 2.3 cents. --Weekly news magazine, presorted, 5.8 ounces: 17.5 cents, up 1 cent. --Household magazine, presorted, 13.8 ounces: 27.4 cents, up 1.5 cents. --National newspaper, presorted, 10 ounces: 30.3 cents, up 2.6 cents. --In-county newspaper, presorted, 4.5 ounces: 6 cents, unchanged.

http://accesswdun.com/article/2002/4/196268