[Federal Register Volume 60, Number 248 (Wednesday, December 27, 1995)]
[Notices]
[Pages 66999-67000]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-31296]



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POSTAL RATE COMMISSION

[Order No. 1097; Docket No. MC96-1]


Notice of Filing of Request for Establishment of an Experimental 
First-Class and Priority Mail Small Parcel Automation Rate Category

Issued December 20, 1995.
    Before Commissioners: Edward J. Gleiman, Chairman; W.H. ``Trey'' 
LeBlanc III, Vice Chairman; George W. Haley, H. Edward Quick, Jr.; 
Experimental First-Class and Priority Mail Small Parcel Automation 
Rate Category, 1995.

    Notice is hereby given that on December 19, 1995, the U.S. Postal 
Service filed a request with the Postal Rate Commission pursuant to 
3623 of the Postal Reorganization Act, 39 U.S.C. 101 et seq., for a 
recommended decision on proposed changes in the Domestic Mail 
Classification Schedule (DMCS). The proposed revisions also include 
proposed new rates. The request includes attachments supported by the 
testimony of four witnesses and four library references. It is on file 
in the Commission Docket Room and is available for inspection during 
the Commission's regular business hours.

Experimental Nature of the Proposed Change

    The Postal Service indicates that it is requesting new, 
experimental small parcel automation rate categories within First Class 
and Priority Mail.

Description of Request

    The Postal Service requests the establishment of discounted rate 
categories within Priority Mail and First-Class Mail for bulk 
quantities of small parcels that are prebarcoded and otherwise 
compatible with processing on sorting machines equipped with barcode 
scanners. The proposed service would be available to all Priority and 
First-Class Mail pieces which: (1) Are entered at one of the designated 
test sites; 1 (2) are presented in mailings of 50 or more pieces; 
(3) bear a barcode as prescribed by the Postal Service; (4) meet 
machinability specifications prescribed by the Postal Service; (5) bear 
a label placed on the surface of the parcel with the largest measured 
area; (6) meet address readability specifications as prescribed by the 
Postal Service; and (7) are presented for mailing in a manner which 
does not require cancellation. The Postal Service proposes a rate 
discount of four cents per piece for mailings that would qualify for 
inclusion in the proposed categories.

    \1\ The Postal Service states that there are currently three 
locations which have equipment appropriate for processing the 
proposed parcel categories: the Southeastern Pennsylvania Processing 
and Distribution Center, the Philadelphia, Pennsylvania Airport Mail 
Facility, and the St. Petersburg, Florida Sectional Center Facility.
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    The request of the Postal Service proposes that the experimental 
First-Class and Priority Mail Small Parcel Automation Rate Categories 
be in effect for two years. The Postal Service states a belief that 
this period of effectiveness will allow mailers sufficient time to 
adjust their mailing practices to use the classification, and provide 
adequate time for the Service to aggregate and fully analyze data 
collected under the experiment. If the data generated in the experiment 
are determined to support a request for a permanent mail classification 
change, the Postal Service anticipates that such a filing would be made 
sufficiently in advance of the termination date that service at the 
experimental sites would not be interrupted.

Motion for Waiver of Certain Filing Requirements

    The Postal Service's request was also accompanied by a motion for 
waiver of compliance with certain requirements of section 64(h) of the 
rules of practice [39 CFR 3001.64(h)], which specify rate-related 
information to be included in classification requests that would affect 
rates and fees. Specifically, the Postal Service seeks waiver of 
compliance with subsections (d) (in part), (f)(2), (f)(3), (h), (j), 
(l)(1) (in part), and (l)(2) of section 

[[Page 67000]]
54 of the rules [39 CFR Sec. 54(d), (f)(2), (f)(3), (h), (j), (l)(1), 
and (l)(2)], which would otherwise be required under section 
64(h)(2)(i) [39 CFR Sec. 64(h)(2)(i)]. The Postal Service states that 
the requested waiver is justified by the extremely limited scope of the 
proposed experiment and its anticipation that the consequent effects on 
costs, revenues, and volumes will be very minor.

Motion to Expedite the Proceeding

    Section 67d of the rules of practice (39 CFR 3001.67d) states that 
the Commission will treat cases falling under the experimental rules as 
subject to the maximum expedition consistent with procedural fairness, 
and prescribes adoption of a schedule that will allow issuance of a 
decision not more than 150 days from a determination that experimental 
treatment of the request is appropriate. Notwithstanding this 
provision, the Postal Service has submitted a motion requesting that 
the Commission establish procedures allowing for issuance of a 
recommended decision on its request within 120 days of the date of its 
filing. In support of its motion, the Postal Service states that it has 
provided sufficient information to allow such expedited consideration, 
and claims that it needs additional flexibility to operate in an 
increasingly competitive environment. In connection with its motion, 
the Postal Service proposes adoption of special rules of procedure, 
which it provided in draft form. The Service also provides a proposed 
procedural schedule, which would culminate in issuance of the 
Commission's Recommended Decision on April 12, 1996.
    Anyone wishing to be heard in this matter is directed to file a 
written notice of intervention with Margaret P. Crenshaw, Secretary of 
the Commission, 1333 H Street, NW, Washington, DC 20268-0001, on or 
before January 16, 1996. Intervenors should indicate whether they want 
full or limited participation status. See rules 39 CFR 3001.20 and 
3001.20a.
    Those interested in participating in this docket are given notice 
that the Commission will evaluate whether it is appropriate to use 
rules 67-67d for considering a Postal Service request. In determining 
whether the procedures for experimental cases are appropriate, the 
Commission will consider: (1) The novelty of the proposed change; (2) 
the magnitude of the proposed change; (3) the ease or difficulty of 
collecting data on the proposed change; and (4) the duration of the 
proposed change. Participants are invited to comment on whether the 
Postal Service request should be evaluated under rules 67-67d. Such 
comments are to be filed on or before January 16, 1996. Prior to a 
Commission decision on this question, participants should act on the 
assumption that the Postal Service request that the case be considered 
pursuant to these rules will be approved.
    Rule 67a provides a procedure for limiting issues in experimental 
cases. In order to enable participants to evaluate whether genuine 
issues of fact exist, the Postal Service shall respond to discovery 
requests within 10 days. Written discovery pursuant to rules 25-28 may 
be undertaken immediately upon intervention.
    A decision on whether there is a need for evidentiary hearings, and 
the scope of any such hearings has not been made yet. Participants 
wishing to comment on this question should file a statement of issues 
raised by the Postal Service request by January 16, 1996. At the same 
time, participants should designate those issues involving questions of 
material fact which they believe require trial type hearings. The 
Postal Service and any interested participant may file responses to 
these statements on or before January 26, 1996.
    If it is determined to schedule trial type hearings to consider 
topics involving issues of material fact, hearings to evaluate the 
supporting evidence presented by the Postal Service may be scheduled to 
begin as soon as February 6, 1996. The Presiding Officer will establish 
subsequent procedural dates.

Representation of the General Public

    In conformance with Sec. 3624(a) of title 39, the Commission 
designates W. Gail Willette, Director of the Commission's Office of the 
Consumer Advocate (OCA), to represent the interests of the general 
public in this proceeding. Pursuant to this designation, Ms. Willette 
will direct the activities of Commission personnel assigned to assist 
her and, when requested, will supply their names for the record. 
Neither Ms. Willette nor any of the assigned personnel will participate 
in or provide advice on any Commission decision in this proceeding. The 
OCA shall be separately served with three copies of all filings, in 
addition to and contemporaneous with, service on the Commission of the 
24 copies required by section 10(c) of the rules of practice [39 CFR 
3001.10(c)].
    It is ordered:
    1. The Commission will sit en banc in this proceeding.
    2. Notice of intervention will be filed no later than January 16, 
1996.
    3. Participants wishing to comment on whether it is appropriate to 
consider this request under Commission rules 67-67d shall submit such 
comments no later than January 16, 1996.
    4. Participants are directed to file statements of issues and 
designations of issues requiring trial type hearings no later than 
January 16, 1996; responses may be submitted no later than January 26, 
1996.
    5. Answers to the Postal Service motions: to Expedite the 
Proceeding, and for Waiver of Certain Filing Requirements are to be 
submitted no later than January 16, 1996.
    6. W. Gail Willette, Director of the Commission's Office of the 
Consumer Advocate, is designated to represent the general public.
    7. The Secretary shall cause this Notice and Order to be published 
in the Federal Register.
Margaret P. Crenshaw,
Secretary.
[FR Doc. 95-31296 Filed 12-26-95; 8:45 am]
BILLING CODE 7710-FW-P