Cash-strapped USPS considers emergency rate hike
The financially struggling Postal Service is proposing a three-cent increase for first-class stamps amid precarious financial woes.
Postmaster General Patrick Donahoe has said the agency expects to lose $6 billion this year and that a special rate hike may be needed. It currently costs 46 cents to mail a letter.
Under federal law, the post office cannot raise prices more than inflation unless it cites exceptional circumstances and gets approval from the independent Postal Regulatory Commission.
Media and marketing businesses warn that a big increase in postal rates could hurt their business and drive down postal volume and revenues.
The Postal Service has said it is running out of cash. Congress is considering cost-saving measures that include ending most Saturday and door-to-door deliveries.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)