Rate Case Settlement Decision Expected This Week

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Officials involved in postal rate case settlement negotiations expect a decision by the end of the week.


The settlement proposal calls for an average 8.7 percent rate increase to be implemented in June. Without the settlement, the next postal increase likely would occur in September or October.


If industry businesses and trade groups do not approve the settlement, the postal service has said it will ask for a higher rate increase.


Meanwhile, a joint House-Senate committee may reach a decision today on a defense appropriations bill that includes up to $600 million for the USPS.


The USPS wants the June date because it estimates it will raise an additional $500 million for each month of higher rates. If industry businesses and trade groups do not approve the settlement, the postal service has said it will ask for a higher rate increase.


The postal service's Board of Governors set a Dec. 28 deadline for a decision on a settlement. Participants in the discussions include the Direct Marketing Association, ADVO Inc., McGraw-Hill, Postcom and the Alliance of Nonprofit Mailers.


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