USPS may need emergency rate hike

THE US Postal Service may need an emergency rate increase to stay afloat.

Postmaster General Patrick Donahoe, who's testifying before a US Senate committee, says the agency's cash balance next month likely will cover only five days of its average daily expenses.

The panel is looking at a plan to fix the agency's finances, including ending Saturday delivery and changing the way retiree health care costs are calculated.

Without help from Congress, the agency expects its multibillion-dollar annual losses to worsen.

Media and marketing firms that depend on postal services say a broad rate hike could hurt their business.

The independent Postal Regulatory Commission must approve any emergency postal rate increase request.

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