NPES Government Affairs Update — Mailing & Postage

The Commission’s recommendations followed an administrative proceeding that began in May of 2006, which involved mailers, employee organizations, consumer representatives and competitors. The rate increase request was designed to generate additional revenue to help offset a projected $5.8 billion revenue deficiency in FY 2008 (the test year). While the rate increases will affect many classes of mail in varying degrees, the average rate increase will be 7.6 percent, lower than the 8.1 percent average rate increase sought by the Postal Service, but still sufficient to meet the Postal Service’s revenue requirement. On average, First-Class rates will increase 6.9 percent, Standard Mail rates will increase 9.3 percent and periodical rates will go up 11.8 percent.