Tag: USPS

The US Postal Service reported today it concluded fiscal 2005 with a net income of USD1.4 billion on record revenues of USD70 billion and record volume of 212 billion pieces of mail. “Financially, we are in the best position we’ve been since the 1970s,” said Postmaster General John E. Potter at the December meeting of the Board of Governors. “Despite the strong financial and productivity records of recent years, we are facing a modest increase in postage rates in January.” The January 8, 2006 rate increase was compelled by legislation enacted in 2003 requiring the Postal Service to put aside over USD3 billion each year into escrow beginning in 2006.

The cost of mailing a letter will increase to 39 cents on Jan. 8. The Postal Service’s board of governors approved the two-cent increase in first-class postal rates late Monday. It is the first increase since June 2002. The cost of mailing a postcard will increase a penny, to 24 cents, as part of the roughly 5.4 percent, across-the-board hike in most rates and fees. The increase fulfills a requirement, passed by Congress in 2003, that the Postal Service establish a USD3.1 billion escrow account. Congress is to determine later how to spend that money. The Postal Service said without the mandate it would not have had to raise rates next year.