Going Postal - Rates Rise AGAIN - Sunday

June 29, 2002

WASHINGTON (Reuters) -- The cost of mailing a standard letter domestically increases 3 cents this Sunday to 37 cents. Sending a postcard will rise 2 cents to 23 cents.

It is the third postage increase since 1999 and is expected to generate about $500 million a month in additional revenue for the embattled U.S. Postal Service, which is struggling with higher costs and the inroads of e-mail and other delivery services.

"I've gone through this so many times," said Phil Holt, who used his lunch hour in Washington to purchase a book of 37-cent stamps.

The postal service is urging people to buy stamps ahead of the increase to prevent a rush on post offices. The agency has printed 15 billion new 37-cent stamps and 3-cent makeup stamps.

Postal service spokesman Jerry Kreienkamp warned customers the agency will not cut mailers slack if they forget to stick a 37-cent stamp to their letter next week.

"The regulations state (letters) have to have 37 cents, and I think people have had sufficient notice," Kreienkamp said.

The postal service has pledged not to raise rates again until 2004, at the earliest.

http://www.cnn.com/2002/US/06/29/stamps.reut/index.html