PROPOSES HIGHER POSTAGE RATES, CHANGES IN RATE STRUCTURE
|The Postal Service
on Wednesday filed a request with the Postal Rate Commission (R2006-1) for
higher postage rates, seeking about $4 billion in new revenue for the test
year of 2008. The rate hike translates into an 7.6 percent overall average
postage rate increase that is supported by the PRC..
|Of course, certain
classes of mail would see higher-than-average increases and other classes
would see lower (see charts on next slides showing average increases by class
of mail). In some cases, such as First-Class Mail letters weighing 2 oz.,
prices would actually decrease.
|The filing includes
a number of pricing innovations and changes, including a move to a pricing
structure based more on shape than on weight. Postal prices now are based
primarily on weight and do not recognize that each shape - letter, flat,
parcel - has different processing costs, postal officials said.