By Cezary Podkul and Emily Stephenson

(Reuters) – The financially troubled U.S. Postal Service has determined that its plan to replace money-losing offices with retailers contracted to offer basic services will not work in many rural communities.

The world’s largest mail carrier hoped the plan, announced in July as part of a series of cost-cutting moves to combat recent losses, would save hundreds of millions of dollars.

WASHINGTON, Oct 18 (Reuters) – The cash-strapped U.S.
Postal Service announced on Tuesday a one-cent increase in the
cost of mailing a letter, starting in January.

The new prices lift the cost of a first-class stamp to 45
cents starting on Jan. 22, 2012, the first increase in more
than two years.

WASHINGTON, Oct 13 (Reuters) – U.S. lawmakers on Thursday
advanced legislation to overhaul the financially strapped U.S.
Postal Service but removed a plan to immediately give the
agency authority to stop Saturday mail delivery.

The House of Representatives Committee on Oversight and
Government Reform voted to send Chairman Darrell Issa’s postal
overhaul bill to the full House, with changes.

WASHINGTON, Oct 13 (Reuters) – Returning up to $75 billion
the U.S. Postal Service believes it overpaid into a federal
pension fund would not solve the agency’s long-term financial
problems and would force the government to pay billions more
for worker pensions, the Government Accountability Office said
on Thursday.

The Postal Service has recently lost billions of dollars
each quarter as consumers use email and pay bills online.

WASHINGTON, Sept 23 (Reuters) – Senator John McCain
unveiled a bill on Friday to revamp the U.S Postal Service,
including an end to Saturday mail delivery, the latest of a
series of legislative proposals to shore up the financially
shaky mail service.

The proposal, which would also create advisory groups to
reduce the number of post offices and cut costs, is based on
Republican Representative Darrell Issa’s bill in the House of
Representatives, a McCain spokesman said.

WASHINGTON (Reuters) – A House of Representatives panel on Wednesday approved a bill that would end Saturday mail delivery by the U.S. Postal Service and establish a process that could lead to worker layoffs at the cash-strapped agency.

Republican lawmakers overrode the objections of their Democratic counterparts to approve the bill which would also phase out delivery to front-door mail slots as part of an overhaul of the service.

WASHINGTON, Sept 21 (Reuters) – A House of Representatives
panel on Wednesday approved a bill that would end Saturday mail
delivery by the U.S. Postal Service and establish a process
that could lead to worker layoffs at the cash-strapped agency.

Republican lawmakers overrode the objections of their
Democratic counterparts to approve the bill which would also
phase out delivery to front-door mail slots as part of an
overhaul of the service.

WASHINGTON, Sept 19 (Reuters) – The Obama administration’s
plan to rescue the U.S. Postal Service would allow the agency
to end Saturday mail delivery and sell non-postal products,
according to documents released on Monday.

The plan, introduced alongside a deficit-reduction package,
also would restructure a massive annual payment to prefund
retiree health benefits and refund $6.9 billion the mail
carrier says it overpaid into a federal retirement fund.

WASHINGTON (Reuters) – The Obama administration’s plan to rescue the U.S. Postal Service would allow the agency to end Saturday mail delivery and sell non-postal products, according to documents released on Monday.

The plan, introduced alongside a deficit-reduction package, also would restructure a massive annual payment to prefund retiree health benefits and refund $6.9 billion the mail carrier says it overpaid into a federal retirement fund.

WASHINGTON, Sept 19 (Reuters) – Republican lawmaker Darrell
Issa plans to offer an amendment that boosts the annual savings
in his bill to overhaul the U.S. Postal Service to more than
$10 billion, his office said.

Issa, who is chairman of the powerful House of
Representatives Oversight Committee, will announce the
amendment on Monday, when the Obama administration is expected
to unveil its own strategy for saving the mail carrier.