FOR IMMEDIATE
RELEASE Contact: David
Partenheimer
March 19,
2007
202-268-8567
David.A.Partenheimer@usps.gov
Release No. 07-23
USPS Governors Approve Majority of Postal Regulatory Commission’s Price
Recommendations,
Including Forever Stamp
· Request
Reconsideration for Some Mail Classes
· Approve
Shape-Based Pricing
· Board
of Governors Set May 14 for New Prices
WASHINGTON, D.C. — The Governors of the U.S. Postal Service (USPS) today
approved an increase in the price of a First-Class stamp to 41 cents,
authorized the issuance of the Forever Stamp,
approved shape-based pricing, and set May 14 as the date for
implementation of these changes. (See attached chart.) However, they delayed
implementation of new prices for periodicals and requested reconsideration
for some mail classes.
USPS
proposed new rates on May 3, 2006, and the Postal Regulatory Commission (PRC)
issued its recommendation on Feb. 26, 2007. The Governors spent considerable
time deliberating the PRC’s recommendations – meeting six times and
rewriting several drafts of their decision over the past 22 days – before
voting earlier today. (See complete decision of the Governors at
http://www.usps.com/ratecase/.)
“We
praise the PRC for its early and thoughtful recommended decision,” said
Board of Governors Chairman James C. Miller III, “and appreciate the
comprehensive analysis the Postal Service staff provided in its rate
proposal.”
Forever Stamp
The
Governors approved the Forever Stamp, which will sell at the new 41-cent
First-Class Mail one-ounce letter rate. The value on these stamps will
always be the one-ounce letter rate and can be used for any future one-ounce
letter mailing without extra postage.
“The
Forever Stamp is a consumer innovation that delivers convenience and value
and will help ease the transition for mailing letters when prices change,”
said Chairman Miller.
Shape-based Pricing
The new
prices also reflect differences in the costs of handling letters, large
envelopes (flats), and packages. Mailers are encouraged to consider options
available to reduce postage costs. For example, if the contents of a
First-Class large envelope are folded and placed in a letter-sized envelope,
mailers can reduce postage by as much as 39 cents per piece.
Request for Reconsideration
The
Governors, however, requested reconsideration of the PRC’s rate
recommendations for Standard Mail flats (catalogs), the Non-machinable
Surcharge for First-Class Mail letters, and the Priority Mail Flat-Rate Box.
·
Standard Mail Flats
– The Governors are concerned that price increases recommended by the PRC
may impose an unnecessary degree of “rate shock” on the catalog industry,
particularly small businesses. The recommended increase for some catalog
mailers is as much as 40 percent, which is more than double what the Postal
Service had proposed.
·
Non-machinable
Surcharge
–The PRC decision on First Class Mail two-ounce and three-ounce letters does
not differentiate between machinable and non-machinable. The Governors
believe this warrants further analysis to ensure there are incentives for
mailers to provide letters that can be processed at lower cost on efficient
sorting equipment.
·
Priority Mail Flat-Rate Box
– The PRC recommended a rate of $9.15 for the Priority Mail Flat-Rate Box,
which is $1.05 above the current rate and 35 cents higher than the Postal
Service proposal of $8.80. The Governors believe a rate below $9 would be
more appropriate for this popular consumer and business product and would be
cost-justified.
Delayed Implementation
The
Board of Governors also delayed until July 15, 2007, implementation of the
new prices for Periodicals (magazines and newspapers) to allow time for the
publishing industry to update computer software and adjust to the complexity
of the PRC-recommended rate structure for periodicals. USPS had proposed a
single container charge for periodicals to encourage efficiency, but the PRC
recommended 55 different prices based on container type, entry point, and
level of sortation.
Note: The Postal Service
has nine Governors who are appointed by the President with the advice and
consent of the U.S. Senate. They are members of the Board of Governors,
which also includes the Postmaster General and the Deputy Postmaster
General. Only the Governors can approve a PRC rate case recommendation, but
the full Board sets the implementation date for the new prices.
# # #
A federal agency, the U.S.
Postal Service is the only delivery service that visits 146 million homes
and businesses, six days a week. It has 37,000 retail locations and relies
on the sale of postage, products, and services to cover its operating
expenses. The Postal Service has annual revenues of $73 billion and delivers
nearly half the world’s mail.
|
EXAMPLES OF NEW PRICES FOR POSTAGE
Effective
May 14, 2007 |
|
|
Current |
New |
|
First-Class MailÒ |
|
|
|
Letters, Bill
Payment, Greeting Card |
$ 0.39 |
$ 0.41 |
|
Wedding Invitation
(2-ounce) |
$ 0.63 |
$ 0.58 |
|
Postcard |
$ 0.24 |
$ 0.26 |
|
Priority MailÒ |
|
|
|
Flat-Rate Envelope |
$ 4.05 |
$ 4.60 |
|
Flat-Rate Box |
$ 8.10 |
$ 9.15** |
|
12-pound (Chicago
to Los Angeles) |
$19.80 |
$24.10 |
|
Express MailÒ |
|
|
|
Flat-Rate Envelope |
$14.40 |
$16.95 |
|
1-pound package |
$18.80 |
$19.50 |
|
Parcel PostÔ |
|
|
|
1-pound package |
$ 3.95 |
$ 4.50 |
|
5-pound (Chicago
to Los Angeles) |
$ 9.11 |
$ 9.50 |
|
Bank Statement |
|
|
|
(2 ounces,
3-digit, barcoded) |
$ 0.545 |
$ 0.459 |
|
Utility Bill |
|
|
|
(5-digit, barcoded) |
$ 0.293 |
$ 0.312 |
|
|
|
|
** Postal Service
Governors are requesting reconsideration for the new price of the Priority
Mail Flat-Rate Box.
