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DMM Advisory 3/15/2005

April 11, 2005

On April 8, 2005 the Postal Service filed a rate case with the Postal Rate Commission (PRC), seeking an expedited recommended decision to raise prices 5.4 percent for almost all categories.

This filing is unique in that the decision to seek a rate increase is due to the Postal Service’s legal obligation to fund the $3.1 billion escrow requirement imposed by Public Law (PL) 108-18. Should legislation be enacted that eliminates the escrow funding requirement, this rate case will be withdrawn.

The proposal calls for an almost uniform 5.4 percent rate and fee increase spread over all classes and subclasses of mail and extra services. The postage for a one-ounce piece of First-Class Mail would go from 37 to 39 cents

We are not proposing any classification-related changes and if favorably recommended by the PRC, we would not implement new rates before January 2006.

We want you to be fully informed about the proposed rate increase and will keep you informed as the rate case progresses during the coming year.  Information and comprehensive rate charts outlining current and proposed rates are available at www.usps.com/ratecase.