In a surprising decision, the Postal Rate Commission today has recommended rates that are either equal to or below those requested by the U.S. Postal Service, while still providing the agency with sufficient revenue to meet all its needs.

The decision was made by Dan G. Blair, the new chairman of the new Postal Regulatory Commission. The recommendation, which was delivered a week before deadline, came as a unanimous decision.

"In nearly every category of mail, including nonprofits, the Commission approved rate increases equal to or below the postal services request, while still meeting the Services revenue requirement," Mr. Blair said.

The decision follows an administrative proceeding involving mailers, employee organizations, consumer representatives and competitors. While the rate increase will impact numerous classes of mail to varying degrees, the average rate increase will be 7.6 percent. The rates proposed by the postal service equate, on average, to an 8.1 percent increase.

The PRC, for example, has recommended a 2 cents rather than 3 cents increase in the price of a First-Class stamp. The PRC adopted USPS proposal for Standard Mail shape-based rates.

The PRC also approved the USPS "Forever Stamp" proposal specifically designed to ease the publics transition to new single-piece letter rates. Forever Stamps will be sold in reasonably limited quantities for the price of a First-Class one-ounce letter and continue to be worth the price of a First-Class, one-ounce letter even if that price changes.

"This is a prime example of the Postal Regulatory Commission working together with the postal service in the best interests of the citizen mailer," Mr. Blair said.

"The postal service has a minimum of 60 days before they can implement rates" Mr. Blair said. "The earliest will be May."

Courtesy of DMNews.com