Postal Commission backs 'forever' stamp, 2-cent increase in letter rate

WASHINGTON -- Say goodbye to those pesky 1- and 2-cent stamps that used to clutter up desks and purses every time the price of mailing a letter went up.

A new "forever" stamp -- good for mailing a letter no matter how much rates rise -- was recommended Monday by the independent Postal Regulatory Commission. The panel also called for a 2-cent increase in first-class rates to 41 cents, a penny less than the post office had sought.

In addition, the changes would sharply scale back the price of heavier letters.

"Adoption of this proposal is good for the Postal Service, postal customers and our postal system," commission chairman Dan G. Blair said at a briefing.

A forever stamp would not carry a denomination, but would sell for whatever the first-class rate was at the time.

For example, if the 41-cent rate takes effect, forever stamps would sell for 41 cents. If rates later climbed to 45 cents or more, the price of the forever stamp would also go up at the counter or machine, but those purchased before the change would still be valid to mail a letter.

While the first ounce would rise to 41 cents under the proposal, it would cost just 17 cents for each additional ounce.

That means the price of sending a two-ounce letter would actually decrease from 63 cents to 58 cents.

The proposal also recommended a 2-cent boost, to 26 cents, in the cost of mailing a post card, also a penny less than the Postal Service had sought.

The matter now goes back to the board of governors of the post office which can accept the recommendations or ask for reconsideration. If accepted, the new rates could take effect as soon as May.

The Postal Service applied for higher rates last May. S

Under legislation approved by Congress last year, the commission will develop a new, less cumbersome system of raising rates for use in the future, and also has more authority to regulate postal activity.

Postage rates last went up in January 2006.