-- Mailing a letter will cost you just a little bit less starting this weekend.
Postal officials wanted to keep stamp prices at their current levels, estimating the price reduction will cost the Postal Service $2 billion in revenue annually, but its regulator, the Postal Regulatory Commission, declined the request.
"Given our precarious financial condition and ongoing business needs, the price reduction required by the PRC exacerbates our losses," Postmaster General and CEO Megan Brennan said in a release. The Postal Service reached its $15 billion borrowing limit with the Treasury department in 2012.
The agency has relied on raising rates on its package business to help with the red ink. Financials for the Postal Service in the most recent three-month period showed the first quarterly profit since 2011, earning $307 million, compared with a loss of $754 million in the same period a year earlier.