Postal Service Rate Increase Denied

10.01.10 | FL News Team

(Washington, DC)  --  The panel that regulates the U.S. Postal Service has denied a proposal to increase postage rates.  The Postal Regulatory Commission Thursday said the Postal Service had failed to justify the requested five-point-six-percent increase.  Instead, the panel blamed the government agency's business model for its recent financial hardships.

In July, the Postal Service proposed increasing the price of first-class postage from 44 cents to 46 cents in an attempt to compensate for decreasing revenue and declining mail volume.  In August, the Postal Service reported a three-point-five-billion-dollar net loss for the fiscal third quarter of 2010.  That's one-point-one-billion more than the same time frame last year.