Postal Service Expected to Seek Rate Hike
The Postal Service is getting ready to kick off the complex process of raising rates, a step that could mean higher stamp prices early next year.
Major mailers have been on edge in recent months, anticipating the action that many expect to be announced Tuesday at the monthly meeting of the Postal Service’s board of governors.
“I think it’s about 95% likely that the governors will approve a filing,” said Neal Denton of the Alliance of Nonprofit Mailers.
“They’re going to do it,” agreed Gene Del Polito, president of the American Assn. for Postal Commerce, formerly the Advertising Mail Marketing Assn.
Two of the post office’s main competitors--Federal Express and United Parcel Service--announced rate increases to take effect in February, citing rising costs.
Last month, postal officials declared their rates would not be raised in 2000, noting the $363-million profit for fiscal 1999. Starting the complex process of raising rates now is not likely to break that promise.
The post office would have to seek permission from the independent Postal Rate Commission, which would then hold hearings and issue its decision; the process takes 10 months.
Assuming commission approval, the matter would go before the postal governors in November or December.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
