[Federal Register Volume 61, Number 121 (Friday, June 21, 1996)]
[Notices]
[Pages 31968-31979]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15777]



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POSTAL RATE COMMISSION

[Docket No. MC96-3; Order No. 1115]


Special Services Fees and Classifications; Notice of Request for 
Changes in Domestic Mail Classification Schedule Provisions and Rates 
for Special Services and Order Instituting Proceedings

[Issued June 12, 1996].
    Before Commissioners: Edward J. Gleiman, Chairman; W.H. ``Trey'' 
LeBlanc III, Vice-Chairman; George W. Haley; and H. Edward Quick, 
Jr.

    Notice is hereby given that on June 7, 1996, the United States 
Postal Service filed a request with the Postal Rate Commission pursuant 
to section 3623 of the Postal Reorganization Act [39 USC Sec. 3623] for 
a recommended decision on proposed changes in provisions of the 
Domestic Mail Classification Schedule (DMCS) and rates that affect 
selected special services. See Request of the United States Postal 
Service for a Recommended Decision on Special Service Changes (June 7, 
1996) (referred to herein as ``Request'').
    Contents of the filing. The Service's Request proposes changes to 
the terms of service and rates for post office boxes (including caller 
service), certified mail, return receipt, insurance, and registry 
service. It proposes to treat the production of postal cards as a new 
special service distinct from the postage that such cards require, and 
to rename postal cards ``stamped cards.'' It also proposes to eliminate 
special delivery service. The Postal Service's Request does not 
encompass any changes to the rates for the classes and subclasses of 
mail, nor the fees for other special services not specifically 
addressed by its proposals. Request at 3. The changes proposed may be 
summarized as follows:

Post Office Boxes

     Increase basic Group I fees by an average of 24 percent.
     (Group I fees apply at city delivery offices).
     Increase basic Group II fees by 100 percent.
     (Group II fees apply at non-city delivery offices).
     Eliminate basic fees for offices with no carrier delivery.
     Institute an annual $36 non-resident fee.
     Refine definitions of the fee categories.

Certified Mail/Return Receipts

     Increase certified mail fee by 40 cents.
     Replace the two basic return receipt options with one 
option.
     Replace the two return receipts for merchandise options 
with one option.
     Clarify the categories of mail eligible to use return 
receipt for merchandise service.

Insurance

     Raise the indemnity limit from $600 to $5000.
     Raise the indemnity limit for Express Mail merchandise 
from $500 to $5000.
     Reduce the limit for Express Mail document reconstruction 
from $50,000 to $500.

Registry

     Simplify fee schedule by eliminating uninsured registry 
service over $100.

Postal Cards

     ``Postal cards,'' which are sold to customers by the 
Postal Service, renamed ``stamped cards''.
     Institute a 2-cent fee (above postage) for stamped cards.

Special Delivery

     Eliminate special delivery service.
    See Direct Testimony of W. Ashley Lyons on Behalf of United States 
Postal Service (hereafter ``USPS-T-1'') at 4-5.
    Effect on net revenue. Unlike the Postal Service's other recent 
classification reform proposals, its proposal in this docket is not 
intended to have a neutral effect on its overall net revenue. The 
Postal Service estimates that if its proposals in this docket had been 
in effect throughout FY 1996, they would have increased system revenues 
by $339.9 million while increasing system costs by only $0.5 million, 
for a net increase in system revenue of $339.4 million. USPS-T-1 at 8-
9.
    A request that would increase system net revenue so substantially 
is normally considered in an omnibus rate proceeding.1 In this 
request the Postal

[[Page 31969]]

Service proposes to obtain the additional net revenue by increasing the 
contribution to institutional costs only from certain special services. 
The Postal Service explains that this is intended to serve its 
financial goals by enabling it to rebuild its equity or to extend the 
period between omnibus rate increases. USPS-T-1 at 6, 9-11. It observes 
that increasing its overall net revenue by raising markups on services 
that are less sensitive to price increases, as it proposes here, 
reflects a general policy to make demand pricing a greater factor in 
its rate and classification proposals. It states that seeking infusions 
of net revenue through requests for new classifications or new products 
filed between omnibus rate proceedings reflects a management strategy 
that it may continue to follow in the future. USPS-T-1 at 6-7.2
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    \1\ The Postal Service has submitted documentation bearing an 
``MC,'' or mail classification designation. While the proposals to 
increase net revenue appear to fit the pattern of an ``R,'' or rate 
designation, there is no apparent substantive reason to change the 
designation for the case at this time, and in the interest of 
avoiding unnecessary expense, we will not order such a change.
    \2\ During the course of the proceeding, the justification for 
these policies and their selective application may be explored.
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    Cost and roll-forward methodologies. In the past, interim Postal 
Service filings used the same base year and test year that were used in 
the most recent omnibus rate proceeding. This provided a consistent 
basis for comparing the cost and revenue effects of proposed interim 
changes with the cost and revenue effects of the general rate and 
classification schedules in place. In this interim filing, the Postal 
Service has complicated the evaluation of its proposed changes by using 
a base year (FY 1995) and a test year (FY 1996) that were not used to 
evaluate the rate and classification schedules in place. In another 
departure from recent practice, its filing develops base year costs 
solely by the methods that the Postal Service uses in its own Cost and 
Revenue Analysis Report (CRA). It does not follow the Commission's 
approved costing methods as far as practical, as the Postal Service's 
filing did in Docket No. MC95-1, nor describe and explain its 
departures from them, as the Postal Service's filings did in Docket 
Nos. R94-1 and MC93-1. Direct Testimony of Richard Patelunas on Behalf 
of the United States Postal Service (hereafter ``USPS-T-5'') at 5-
7.3
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    \3\ Examples of cost attribution methods that were used by the 
Commission in the most recent omnibus rate proceeding but appear to 
be omitted from this filing are attributing coverage-related 
delivery costs according to single subclass stop analysis, and 
attributing some fixed costs associated with Special Delivery 
Messengers to the various services that use them.
---------------------------------------------------------------------------

    The Postal Service describes changes that it has made to its cost 
model between FY 1994 and FY 1995 that have not previously been 
discussed in testimony. These include aligning accounts in its CRA 
Report with those in its Revenue and Expense Report, reweighting IOCS 
tallies for mail processing and customer service functions in CAG B 
offices, reassigning some IOCS tallies for small parcels to services 
other than parcel post, revising the rules for assigning certain mixed 
mail tallies to mail classes, reassigning certain Special Delivery 
Messenger costs, redistributing certain RBCS clerk and mailhandler 
costs, and updating the factors used to develop space-related costs. 
USPS-T-5 at 8-11.
    Proposed DMCS provisions. In their Decision of March 4, 1996, in 
Docket No. MC95-1 (Classification Reform I), the Governors of the 
Postal Service adopted extensive revisions to the Domestic Mail 
Classification Schedule (DMCS). These revisions are scheduled to take 
effect on July 1, 1996. The Governors further revised the DMCS in their 
Decision approving the Recommended Decision of the Commission on 
Experimental First-Class and Priority Mail Small Parcel Automation Rate 
Category, Docket No. MC96-1, implemented by resolution of the Governors 
on April 28, 1996. In Attachment A to its Request, the Postal Service 
displays changes that it proposes in this filing to a version of the 
DMCS that reflects these recent revisions. These proposed revisions 
accompany this Notice as Attachment A.
    Proposed special service rate and fee schedules. The special 
service schedules were last amended in part by the Decision of the 
Governors in Classification Reform I. Rate schedules amended in 
connection with that decision, along with fee schedules for all special 
services, were published for informational purposes in the Federal 
Register on March 12, 1996 (61 FR 10,220). In Attachment B to its 
Request, the Postal Service displays changes that it proposes to the 
special service schedules corresponding to the revisions that it 
proposes in the DMCS. Its proposed changes to the special service 
schedules accompany this Notice as Attachment B.
    Intervention. Participation in Commission proceedings generally 
takes the form of either full intervention or limited participation. 
See Commission rules 20 and 20a [39 CFR Sec. 3001.20 and .20a]. For 
those wishing to express their views informally, without incurring the 
obligations that attach to the other two forms of participation, 
commenter status is available. See Commission rule 20b [39 CFR 
Sec. 3001.20b]. Those wishing to be heard in this matter as either a 
full intervenor or limited participant are directed to file a written 
notice of intervention in conformance with rule 20(b) or 20a(a) 
identifying the status they intend to assume and affirmatively stating 
how actively they expect to participate. In addition, intervenors are 
requested to provide a telephone number and facsimile number, and for 
each person designated to receive service of documents who is willing 
to receive service electronically, the appropriate e-mail address. (See 
proposed Special Rule 3A, infra.)
    Notices of intervention should be sent to the attention of Margaret 
P. Crenshaw, Secretary of the Commission, 1333 H Street, NW, 
Washington, D.C. 20268-0001, and are to be filed on or before July 9, 
1996. Commenter status does not require a notice of intervention.
    Representation of the general public. In conformance with section 
3624(a) of title 39, the Commission designates W. Gail Willette, 
Director of the 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. If a participant elects procedure (1) 
service, as defined by the proposed special rules of practice, it shall 
serve the OCA separately with three copies of all filings, in addition 
to and contemporaneously with, service on the Commission of the 24 
copies required by section 10(c) of the rules of practice [39 CFR 
Sec. 3001.10(c)], except as provided by Special Rule 3B.
    Special rules of practice. The Commission proposes conducting this 
proceeding pursuant to the special rules of practice set forth in 
Attachment C. These rules reflect the special rules implemented in 
Docket No. MC96-2, including a revision of Special Rule 3 to allow for 
voluntary, alternative service of documents by electronic filing. See 
P.O. Ruling MC96-2/9. The alternative system will allow participants to 
receive service either electronically or via traditional hard copy 
means. Participants are encouraged to carefully review the terms of all 
the rules and suggest any changes they believe would be beneficial. The 
use of electronic forms of filing and electronic database structures 
makes it especially important that titles of filed documents 
effectively describe their contents.
    Initial prehearing conference: date, location, and agenda. The 
Commission

[[Page 31970]]

will convene a prehearing conference at 9:30 a.m. on Friday, July 12, 
1996, in the Commission's hearing room at 1333 H Street, N.W., Suite 
300, Washington, D.C. The Commission asks that persons attending the 
conference be prepared to discuss procedural and scheduling matters 
pertinent to the Service's filing.
    Participants are to file a notice of issues they would like to 
raise for consideration at the prehearing conference. Suggestions need 
not be limited to procedural matters, but may include substantive 
issues to the extent that considering them at this stage might expedite 
the proceeding. An agenda incorporating participants' suggestions will 
be distributed at the beginning of the prehearing conference.
    Docket Room operations. Documents may be filed with the 
Commission's docket section Monday through Friday between 8 a.m. and 5 
p.m. Questions about docket room operations should be directed to Ms. 
Peggie Brown (at 202-789-6847) or Ms. Joyce Taylor (at 202-789-6846). 
Questions concerning any technical difficulties in electronic filing 
should be directed to the Commission's computer room at 202-789-6873.
    It is ordered:
    1. The Commission will sit en banc in this proceeding.
    2. Notices of intervention shall be filed no later than July 9, 
1996.
    3. A prehearing conference will be held Friday, July 12, 1996 at 
9:30 a.m. in the Commission's hearing room.
    4. Participants are to file notices of issues they intend to raise 
at the prehearing conference by July 9, 1996.
    5. Comments on the proposed special rules of practice set out in 
Attachment C should be filed by July 9, 1996.
    6. W. Gail Willette, Director of the Commission's Office of the 
Consumer Advocate, is designated to represent the interest of the 
general public in this proceeding.
    7. The Secretary shall cause this Notice and Order to be published 
in the Federal Register.

    By the Commission.
Cyril J. Pittack,
Acting Secretary.
Attachment A--Special Services Reform

Requested Changes in the Domestic Mail Classification Schedule

    In this Request, the Postal Service asks the Commission to 
recommend certain changes in the Domestic Mail Classification Schedule 
(DMCS). The changes requested herein alter the DMCS recommended by the 
Commission on November 29, 1978, adopted by decision of the Governors 
and implemented by resolution of the Board of Governors on April 3, 
1979, effective April 15, 1979, and as amended from time-to-time, most 
recently by the decisions of the Governors approving the Recommended 
Decision of the Commission on Experimental First-Class and Priority 
Mail Small Parcel Automation Rate Category, Docket No. MC96-1, as 
implemented by resolution of the Board of Governors adopted on April 1, 
1996, effective April 28, 1996, and the Decision of the Governors 
approving in part the Recommended Decision of the Commission on 
Classification Reform I, Docket No. MC95-1, as implemented by 
resolution of the Board of Governors adopted on March 4, 1996, 
effective July 1, 1996. The current DMCS (which is published in part at 
39 CFR Part 3001, subpart C, appendix A, in part as attachment A to the 
Decision of the Governors of the United States Postal Service on the 
Recommended Decision of the Postal Rate Commission on Classification 
Reform I, Docket No. MC95-1 (61 FR 10,220), and in part as attachment A 
to the Decision of the Governors of the United States Postal Service on 
the Recommended Decision of the Postal Rate Commission on the 
Experimental First-Class and Priority Mail Small Parcel Automation Rate 
Category, Docket No. MC96-1 (61 FR 17,210)), is incorporated by 
reference in this Request.
    Proposed additions to text of the classification schedule are 
underlined; proposed deletions are in brackets. The changes in the DMCS 
requested by the Postal Service are as follows:
Attachment A--Special Services Fees and Classifications

Expedited Mail Classification Schedule

* * * * *

160  Ancillary Services

    The following services may be obtained in conjunction with mail 
sent under this classification schedule upon payment of applicable 
fees:

------------------------------------------------------------------------
                  Service                              Schedule         
------------------------------------------------------------------------
a. Address correction......................  SS-1                       
b. Return receipts.........................  SS-16                      
c. COD.....................................  SS-6                       
d. Express Mail Insurance..................  SS-9a                      
------------------------------------------------------------------------

* * * * *

[180  Insurance and Indemnity]

[181  Insurance Coverage]

[Express Mail is insured against loss, damage or rifling at no 
additional charge.]
[182  Indemnity Coverage]
[182.1  Payment of Indemnity. Indemnity will be paid by the Postal 
Service as follows: ]
    [a. For document reconstruction the maximum liability is $50,000 
per piece, up to $500,000 per occurrence regardless of the number of 
claimants, to be paid under terms and conditions prescribed by the 
Postal Service.]
    [b. For merchandise the maximum liability is $500 to be paid under 
terms and conditions prescribed by the Postal Service.]
    [c. For mailings valued at $15 or less, for negotiable items, or 
currency or bullion, the indemnity is $15 to be paid under terms and 
conditions prescribed by the Postal Service.]

[182.2  Indemnity Not Available. Indemnity will not be paid by the 
Postal Service for loss, damage or rifling:]
    [a. Of nonmailable matter;]
    [b. Due to improper packaging;]
    [c. Seizure by any agency of government; or,]
    [d. Due to war, insurrection or civil disturbances.]
[183  Insurance Claims And Procedures]

180  Refunds

181  Procedure

    Claims for refunds of postage [or insurance] must be filed within 
the period of time and under terms and conditions prescribed by the 
Postal Service.
[184  Refunds]

182  Availability

[184.1] 182.1  Same Day Airport. The Postal Service will refund the 
postage for Same Day Airport Express Mail not available for claim by 
the time specified, unless the delay is caused by:
    a. Strikes or work stoppage;
    b. Delay or cancellation of flights; or
    c. Governmental action beyond the control of Postal Service or air 
carriers.

[184.2] 182.2  Custom Designed. Except where a service agreement 
provides for claim, or delivery, of Custom Designed Express Mail more 
than 24 hours after scheduled tender at point of origin, the Postal 
Service will refund postage for such mail not available for claim, or 
not delivered, within 24 hours of mailing, unless the item was delayed 
by strike or work stoppage.

[184.3] 182.3  Next Day. Unless the item was delayed by strike or work 
stoppage, the Postal Service will refund postage for Next Day Express 
Mail not available for claim or not delivered:
    a. By 10:00 a.m., or earlier time(s) prescribed by the Postal 
Service, of the

[[Page 31971]]

next delivery day in the case of Post Office-to-Post Office service;
    b. By 3:00 p.m., or earlier time(s) prescribed by the Postal 
Service, of the next delivery day in the case of Post Office-to-
Addressee service.

[184.4] 182.4  Second Day. Unless the item was delayed by strike or 
work stoppage, the Postal Service will refund postage for Second Day 
Express Mail not available for claim or not delivered:
    a. By 10:00 a.m., or earlier time(s) prescribed by the Postal 
Service, of the second delivery day in the case of Post Office-to-Post 
Office service;
    b. By 3:00 p.m., or earlier time(s) prescribed by the Postal 
Service, of the second delivery day in the case of Post Office-to-
Addressee service.

First-Class Mail--Classification Schedule

* * * * *

222  [Postal and] Stamped and Post Cards Subclass

222.1  Definition
    222.11  [Postal] Stamped Card. A [postal] stamped card is a card 
with postage imprinted or impressed on it and supplied by the Postal 
Service for the transmission of messages.
    222.12  Post Card. A post card is a privately printed mailing card 
for the transmission of messages. To be eligible to be mailed as a 
First-Class post card, a card must be of uniform thickness and must not 
exceed any of the following dimensions:
    a. 6 inches in length;
    b. 4\1/4\ inches in width;
    c. 0.016 inch in thickness.
    222.13  Double Cards. Double [postal] stamped or post cards may be 
mailed as [postal] stamped or post cards. A double [postal] stamped or 
post card consists of two attached cards, one of which may be detached 
by the receiver and returned by mail as a single postal or post card.
    222.2  Restriction. A mailpiece with any of the following 
characteristics is not mailable as a [postal] stamped or post card 
unless it is prepared as prescribed by the Postal Service:
    a. Numbers or letters unrelated to postal purposes appearing in the 
address portion of the card;
    b. Punched holes;
    c. Vertical tearing guide;
    d. An address portion which is smaller than the remainder of the 
card.
222.3  Regular Rate Categories
    222.31  Single Piece Rate Category. The single piece rate category 
applies to regular rate [Postal] Stamped and Post Cards subclass mail 
not mailed under section 222.32.
    222.32  Presort Rate Category. The presort rate category applies to 
[Postal] Stamped and Post Cards subclass mail that:
    a. Is prepared in a mailing of at least 500 pieces;
    b. Is presorted, marked, and presented as prescribed by the Postal 
Service; and
    c. Meets the addressing and other preparation requirements 
prescribed by the Postal Service.
222.4  Automation Rate Categories
    222.41  General. The automation rate categories consist of [Postal] 
Stamped and Post Cards subclass mail that:
    a. Is prepared in a mailing of at least 500 pieces;
    b. Is presorted, marked, and presented as specified by the Postal 
Service;
    c. Bears a barcode representing not more than 11 digits (not 
including ``correction'' digits) as prescribed by the Postal Service; 
and
    d. Meets the machinability, addressing, barcoding, and other 
preparation requirements prescribed by the Postal Service.
* * * * *

260  Ancillary Services

    First-Class Mail, except as otherwise noted, will receive the 
following additional services upon payment of the fees prescribed in 
the corresponding schedule:

------------------------------------------------------------------------
                  Service                              Schedule         
------------------------------------------------------------------------
a. Address correction......................  SS-1                       
b. Business reply mail.....................  SS-2                       
c. Certificates of mailing.................  SS-4                       
d. Certified mail..........................  SS-5                       
e. COD.....................................  SS-6                       
f. Insured mail............................  SS-9                       
g. Registered mail.........................  SS-14                      
[h. Special delivery.......................  SS-17]                     
[i.] h. Return receipt (merchandise sent by  SS-16                      
 Priority Mail only).                                                   
[j.] i. Merchandise return.................  SS-20                      
------------------------------------------------------------------------

270  Rates and Fees

    The rates and fees for First-Class Mail are set forth in the 
following rate schedules:

------------------------------------------------------------------------
                                                       Schedule         
------------------------------------------------------------------------
a. Letters and Sealed Parcels..............  221                        
b. [Postal] Stamped and Post Cards.........  222                        
c. Priority Mail...........................  223                        
d. Fees....................................  1000                       
------------------------------------------------------------------------

* * * * *

Standard Mail Classification Schedule

* * * * *

360  Ancillary Services

* * * * *

362  Single Piece, Parcel Post, Bound Printed Matter, Special, and 
Library Subclasses

    Single Piece, Parcel Post, Bound Printed Matter, Special, and 
Library subclass mail will receive the following additional services 
upon payment of the appropriate fees:

------------------------------------------------------------------------
                  Service                              Schedule         
------------------------------------------------------------------------
a. Certificates of mailing.................  SS-4                       
b. COD.....................................  SS-6                       
c. Insured mail............................  SS-9                       
[d. Special delivery.......................  SS-17]                     
[e.] d. Special handling...................  SS-18                      
[f.] e. Return receipt (merchandise only)..  SS-16                      
[g.] f. Merchandise return.................  SS-20                      
------------------------------------------------------------------------

    Insurance, [special delivery,] special handling, and COD services 
may not be used selectively for individual pieces in a multi-piece 
Parcel Post subclass mailing unless specific methods approved by the 
Postal Service for ascertaining and verifying postage are followed.
* * * * *

Periodicals Classification Schedule

* * * * *

[460  Ancillary Services]

[Periodicals class mail will receive the following additional service 
upon payment of the appropriate fee:]

------------------------------------------------------------------------
                 [Service                             Schedule]         
------------------------------------------------------------------------
[Special delivery.........................  SS-17]                      
------------------------------------------------------------------------

* * * * *

General Definitions, Terms and Conditions

* * * * *

3000  Postage and Preparation

* * * * *

3080  Refund of Postage

    When postage and special service fees have been paid on mail for 
which no service is rendered for the postage or fees paid, or collected 
in excess of the lawful rate, a refund may be made. There shall be no 
refund for registered, COD, [and] insured, and Express Mail Insurance 
fees when the article is later withdrawn by the mailer. In cases 
involving returned articles improperly accepted because of excess size 
or weight, a refund may be made.
* * * * *

[[Page 31972]]

Classification Schedule SS-3--Caller Service
3.01  Definition
    3.010  Caller service is a service which permits a customer to 
obtain [his] mail addressed to [a] the customer's box number through a 
call window or loading dock.
3.02  Description of Service
* * * * *
    3.022  Caller service is provided to customers on the basis of mail 
volume received[,] and number of post office boxes [rented] used at any 
one facility.
* * * * *
Classification Schedule SS-4--Certificate of Mailing
* * * * *
4.03 Other Services
    4.030  The following services, if applicable to the class of mail, 
may be obtained in conjunction with mail sent under this classification 
schedule upon payment of the applicable fees:

------------------------------------------------------------------------
                                              Classification schedule   
------------------------------------------------------------------------
a. Parcel airlift........................  SS-13                        
[b. Special delivery.....................  SS-17]                       
[c.] b. Special handling.................  SS-18                        
------------------------------------------------------------------------

* * * * *
Classification Schedule SS-5--Certified Mail
* * * * *
5.04  Other Services
    5.040  The following services may be obtained in conjunction with 
mail sent under this classification schedule upon payment of the 
applicable fees:

------------------------------------------------------------------------
                                              Classification schedule   
------------------------------------------------------------------------
a. Restricted delivery...................  SS-15                        
b. Return receipt........................  SS-16                        
[c. Special delivery.....................  SS-17]                       
------------------------------------------------------------------------

Classification Schedule SS-6--Collect on Delivery Service
* * * * *
6.06  Other Services
    6.060  The following services, if applicable to the class of mail, 
may be obtained in conjunction with mail sent under this classification 
schedule upon payment of the applicable fee:

------------------------------------------------------------------------
                                              Classification schedule   
------------------------------------------------------------------------
a. Registered mail, if sent as First-      SS-14                        
 Class.                                                                 
b. Restricted delivery...................  SS-15                        
[c. Special delivery.....................  SS-17]                       
[d.] c. Special handling.................  SS-18                        
------------------------------------------------------------------------

* * * * *
Classification Schedule SS-9--Insured Mail
* * * * *
9.02  Description of Service
    9.020  The maximum liability of the Postal Service under this 
schedule is [$600] $5000.
* * * * *
9.05  Other Services
    9.050  The following services, if applicable to the class of mail, 
may be obtained in conjunction with mail sent under this classification 
schedule upon payment of the applicable fees:

------------------------------------------------------------------------
                                              Classification schedule   
------------------------------------------------------------------------
a. Parcel Airlift........................  SS-13                        
b. Restricted delivery (for items insured  SS-15                        
 for more than $50).                                                    
c. Return receipt (for items insured for   SS-16                        
 more than $50).                                                        
[d. Special delivery.....................  SS-17]                       
[e.] d. Special handling.................  SS-18                        
[f.] e. Merchandise return (shippers       SS-20                        
 only).                                                                 
------------------------------------------------------------------------

* * * * *

Classification Schedule SS-9a--Express Mail Insurance

9a.01  Definition

    9a.010  Express Mail Insurance is a service that provides the 
mailer with indemnity for loss of, rifling of, or damage to items sent 
by Express Mail.

9a.02  Description of Service

    9a.020  Express Mail Insurance is available only for Express Mail.
    9a.021  Insurance coverage is provided, for no additional charge, 
up to $500 per piece for document reconstruction, up to $5,000 per 
occurrence regardless of the number of claimants. Insurance coverage is 
also provided, for no additional charge, up to $500 per piece for 
merchandise. Insurance coverage for merchandise valued at more than 
$500 is available for an additional fee, as set forth in Rate Schedule 
SS-9a. The maximum liability for merchandise is $5,000 per piece. For 
negotiable items, currency, or bullion, the maximum liability is $15.
    9a.022  Indemnity claims for Express Mail must be filed within a 
specified period of time from the date the article was mailed.
    9a.023  Indemnity will be paid under terms and conditions 
prescribed by the Postal Service.
    9a.024  Among other limitations prescribed by the Postal Service, 
indemnity will not be paid by the Postal Service for loss, damage or 
rifling:
    a. Of nonmailable matter;
    b. Due to improper packaging;
    c. Due to seizure by any agency of government; or,
    d. Due to war, insurrection or civil disturbances.

9a.03--  Fees

    9a.030  The fees for Express Mail Insurance service are set forth 
in Rate Schedule SS-9a.
Classification Schedule SS-10--Post Office Box Service
10.01  Definition
    10.010  Post office box service is a service which provides the 
customer with a private, locked receptacle for the receipt of [his] 
mail during the hours when the lobby of a postal facility is open.
10.02  Description of Service
* * * * *
    10.021  A post office box holder may [request] ask the Postal 
Service to deliver to the post office box all mail properly addressed 
to the holder. [him through the post office box.] If the post office 
box is located at the post office indicated on the piece, it will be 
transferred without additional charge, in accordance with existing 
regulations.
* * * * *
10.03  Fees
* * * * *
    10.031  In postal facilities primarily serving academic 
institutions or the students of such institutions, [periods of rental 
and] fees for post office boxes are administered as follows:

------------------------------------------------------------------------
     Period [for] of box [rentals] use                   Fee            
------------------------------------------------------------------------
95 days or less...........................  \1/2\ semi-annual fee.      
96 to 140 days............................  \3/4\ semi-annual fee.      
141 to 190 days...........................  Full semi-annual fee.       
191 to 230 days...........................  1\1/4\ semi-annual fee.     
231 to 270 days...........................  1\1/2\ semi-annual fee.     
271 days to full year.....................  Full annual fee.            
------------------------------------------------------------------------

    10.032  No refunds will be made for [boxes rented] post office box 
fees paid under section 10.031. For purposes of this classification 
schedule SS-10, the full annual fee is twice the amount of the semi-
annual fee.

[[Page 31973]]

Classification Schedule SS-11--Mailing List Services
11.01  Definition
* * * * *
11.02  Description of Service
* * * * *
    11.0221  Gummed labels, wrappers, envelopes or [postal] stamped or 
post cards indicative of one-time use will not be accepted as mailing 
lists.
* * * * *
Classification Schedule SS-13--Parcel Airlift (PAL)
* * * * *
13.07  Other Services
    13.070  The following services, if applicable to the class of mail, 
may be obtained in conjunction with mail sent under this classification 
schedule upon payment of the applicable fees:

------------------------------------------------------------------------
                                              Classification schedule   
------------------------------------------------------------------------
a. Certificate of mailing................  SS-4                         
b. Insured mail..........................  SS-9                         
c. Restricted delivery (if insured for     SS-15                        
 more than [$25] $50).                                                  
d. Return receipt (if insured for more     SS-16                        
 than [$25] $50).                                                       
[e. Special delivery (if mailed for        SS-17]                       
 delivery within the 48 contiguous                                      
 states).                                                               
[f.] e. Special handling.................  SS-18                        
------------------------------------------------------------------------

* * * * *
Classification Schedule SS-14--Registered Mail
* * * * *
14.02  Description of Service
* * * * *
    14.021  Registered mail service provides [optional] insurance up to 
a maximum of $25,000[. ], depending upon the actual value at the time 
of mailing, except that insurance is optional for articles valued $100 
or less.
* * * * *
    14.026  Indemnity claims for registered mail on which insurance is 
provided, or for articles valued $100 or less on which optional 
insurance has been elected, must be filed within a specified period of 
time from the date the article was mailed.
* * * * *
14.06  Other Services
    14.060  The following services may be obtained in conjunction with 
mail sent under this classification schedule upon payment of applicable 
fees:

------------------------------------------------------------------------
                                              Classification schedule   
------------------------------------------------------------------------
a. Collect on delivery...................  SS-6                         
b. Restricted delivery...................  SS-15                        
c. Return receipt........................  SS-16                        
[d. Special delivery.....................  SS-17]                       
[e.] d. Merchandise return (shippers       SS-20                        
 only).                                                                 
------------------------------------------------------------------------

14.07  Fees
    14.070  The fees for registered mail [and related optional 
indemnity purchase] are set forth in Rate Schedule SS-14.
* * * * *
Classification Schedule SS-16--Return Receipts
* * * * *
16.02  Description of Service
    16.020  Return receipt service is available for mail sent under the 
following classification schedules:

------------------------------------------------------------------------
                                              Classification schedule   
------------------------------------------------------------------------
a. Certified mail........................  SS-5                         
b. COD mail..............................  SS-6                         
c. Insured mail (if insured for more than  SS-9                         
 $50).                                                                  
d. Registered mail.......................  SS-14                        
e. Express Mail..........................  .............................
f. [First-Class] Priority Mail             .............................
 (merchandise only).                                                    
g. Standard Mail (merchandise only) sent   .............................
 by Single Piece, Parcel Post, Bound                                    
 Printed Matter, Special, and Library                                   
 Subclasses).                                                           
------------------------------------------------------------------------

    16.021  Return receipt service is available at the time of mailing 
or, when purchased in conjunction with certified, COD, insured (if for 
more than $50), registered, or Express Mail, after mailing.
    16.0211  Mailers requesting return receipt service at the time of 
mailing will be provided, as appropriate:

[a. The] the signature of the addressee or [his] addressee's agent, 
[and] the date delivered, [or]
[b. The signature of the addressee or his agent, the date delivered and 
the address of delivery], if different from the address on the 
mailpiece.
* * * * *
[Classification Schedule SS-17--Special Delivery]
[17.01  Definition]
[17.01  Special delivery service is a service that provides for 
preferential handling in dispatch and transportation, and delivery of 
mail as soon as practicable after arrival at the addressee's post 
office.]
[17.020  Description of Service]
[17.020  Special delivery service is available for mail sent under the 
following classification schedules:]

[a. First-Class Mail].
[b. Periodicals].
[c. Single Piece, Parcel Post, Bound Printed Matter, Special, and 
Library Standard Mail].

[17.021  Special delivery is made only to addresses where it is known 
that such delivery can be made.]

[17.022  Special delivery mail is delivered during prescribed hours in 
addition to regular carrier delivery hours.]

[17.023  If delivery cannot be made a notice of arrival is left at the 
address.]

[17.03  Requirements of the Mailer]
[17.030  Mail sent under this classification schedule must be 
identified as prescribed by regulation.]
[17.04  Deposit of Mail]
[17.040  Special delivery mail must be deposited in a manner prescribed 
by the Postal Service.]
[17.05  Forwarding and Return]
[17.050  Special delivery mail which is forwarded or returned does not 
receive special delivery service unless the special delivery fee has 
been guaranteed, or if a forwarding order had been given by the 
addressee at the office of original address in advance of the arrival 
of the mail.]
[17.06  Other Services]
[17.060  The following services, if applicable to the class of mail, 
may be obtained in conjunction with mail sent under this classification 
schedule upon payment of the applicable fees:]

------------------------------------------------------------------------
                                              Classification schedule   
------------------------------------------------------------------------
[a. Certificate of mailing...............  SS-4]                        
[b. Certified mail.......................  SS-5]                        
[c. COD mail.............................  SS-6]                        
[d. Insured mail.........................  SS-9]                        
[e. Parcel airlift.......................  SS-13]                       
[f. Registered mail......................  SS-14]                       
------------------------------------------------------------------------

[17.07  Fees ]
[17.070  The fees for special delivery service are set forth in Rate 
Schedule SS-17.]
Classification Schedule SS-18--Special Handling
* * * * *
18.02  Description of Service
* * * * *
    18.021  Special handling [(or special delivery)] service is 
mandatory for

[[Page 31974]]

matter which requires special attention in handling, transportation and 
delivery.
* * * * *
Classification Schedule SS-19--Stamped Cards and Envelopes
19.01  Definitions
    19.010  Plain stamped envelopes and printed stamped envelopes are 
envelopes with postage thereon offered for sale by the Postal Service.
    19.011 Stamped cards and double stamped cards are defined in 
classification schedule 222.11 and 222.13, respectively.
19.02  Description of Service
    19.020  Stamped envelopes are available for:
      a. First-Class Mail within the first rate increment.
      b. Standard Mail mailed at a minimum per-piece rate as prescribed 
by the Postal Service.
    19.021  Printed stamped envelopes may be obtained by special 
request.
    19.022  Stamped cards are available for First-Class Mail.
19.03  Fees
    19.030  The fees for stamped cards and envelopes are set forth in 
Rate Schedule SS-19.
* * * * *
Attachment B--Special Services Fees and Classifications
Requested Changes in the Special Service Schedules
    In conjunction with the requested changes in the Domestic Mail 
Classification Schedule (DMCS) set forth in Attachment A, the Postal 
Service also is requesting that the Commission recommend corresponding 
changes in the attendant special service schedules and the title of 
Rate Schedule 222.
    The special service schedules were last amended in part by the 
Decision of the Governors Approving in part the Recommended Decision of 
the Postal Rate Commission on Classification Reform I. Rate Schedules 
amended in connection with that decision, along with fee schedules for 
all special services, which were published for informational purposes 
in the Federal Register on March 12, 1996 (61 Fed. Reg. 10,220), are 
incorporated by reference in this Request.
    Proposed additions to the text of the schedules are underlined; 
proposed deletions are in brackets. The requested changes in the 
schedules are as follows:
* * * * *

First-Class Mail--Rate Schedule 222--[Postal] Stamped and Post 
Cards

* * * * *

                     Schedule SS-5.--Certified Mail                     
------------------------------------------------------------------------
                                      Fee (in addition to postage)      
------------------------------------------------------------------------
Per piece....................   [$1.10] $1.50                           
------------------------------------------------------------------------

* * * * *

                      Schedule SS-9.--Insured Mail                      
------------------------------------------------------------------------
          Liability                   Fee (in addition to postage)      
------------------------------------------------------------------------
$ 0.01 to $ 50...............  $0.75                                    
50.01 to 100.................  1.60                                     
[100.01 to 200...............  2.50]                                    
[200.01 to 300...............  3.40]                                    
[300.01 to 400...............  4.30]                                    
[400.01 to 500...............  5.20]                                    
[500.01 to 600...............  6.10]                                    
100.01 to 5000...............  $1.60 plus $0.90 for each $100 or        
                                fraction thereof over the first $100 in 
                                value.                                  
------------------------------------------------------------------------


                                     Schedule SS-9A--Express Mail Insurance                                     
----------------------------------------------------------------------------------------------------------------
                                                                 Fee (in addition to postage)                   
----------------------------------------------------------------------------------------------------------------
        $0.01 to $500.......................  No charge.                                                        
----------------------------------------------------------------------------------------------------------------
                                                   Merchandise                                                  
----------------------------------------------------------------------------------------------------------------
Value Level:                                                                                                    
        $0.01 to $500.......................  No charge.                                                        
        500.01 to 5000......................  $0.90 for each $100 or fraction thereof over $500 in value.       
----------------------------------------------------------------------------------------------------------------


[[Page 31975]]



                              Schedule SS-10.--Post Office Boxes and Caller Service                             
----------------------------------------------------------------------------------------------------------------
                                                                                    Semi-annual fees ($)        
                Box size                      [Box capacity  (cu. in.)     -------------------------------------
                                                                                 IA          IB           IC    
----------------------------------------------------------------------------------------------------------------
[A. Post Office Box Semi-Annual Rental                                                                          
 Rate]:                                                                                                         
    [Group I--offices with city carrier                                                                         
     service]:                                                                                                  
        1...............................  Under 296.......................      $24.00       $22.00      $20.00 
        2...............................  296-499.........................       37.00        33.00       29.00 
        3...............................  500-999.........................       64.00        56.00       52.00 
        4...............................  1000-1999.......................      105.00        95.00       86.00 
        5...............................  2000 and over...................      174.00       155.00      144.00 
    [Group II--offices without city                                                                             
     carrier service:                                                                                           
        1 annual........................  ................................        8.00                          
        2 annual........................  ................................       13.00                          
        3 semi-annual...................  ................................       12.00                          
        4 semi-annual...................  ................................       17.50                          
        5 semi-annual...................  ................................       27.50]                         
    [Group III--offices without rural                                                                           
     carrier service:                                                                                           
        Box sizes 1-5 annual............  ................................        2.00]                         
[B. Caller Service:                                                                                             
    For Caller Service semi-annual......  ................................      250.00       240.00      225.00]
    [For Each Reserved Call Number        ................................       30.00]                         
     annual.                                                                                                    
----------------------------------------------------------------------------------------------------------------


                        A. Semi-Annual Fees at Offices That Offer Any Carrier Service \1\                       
----------------------------------------------------------------------------------------------------------------
                                                                                     Fee group                  
            Box size                  Box capacity (cu. in.)     -----------------------------------------------
                                                                       A           B           C           D    
----------------------------------------------------------------------------------------------------------------
1..............................  Under 296                            $30.00      $28.00      $25.00       $8.00
2..............................  296-499                               46.00       41.00       36.00       13.00
3..............................  500-999                               80.00       70.00       65.00       24.00
4..............................  1000-1999                            121.00      109.00       95.00       35.00
5..............................  2000 and over                        209.00      186.00      150.00       55.00
----------------------------------------------------------------------------------------------------------------


B. Semi-Annual Fees at Offices That Do Not Offer Any Carrier Service \1\
------------------------------------------------------------------------
                        Box size                                Fee     
------------------------------------------------------------------------
1-5.....................................................       \2\ $0.00
------------------------------------------------------------------------


                                             C. Caller Service Fees                                             
----------------------------------------------------------------------------------------------------------------
                                                                                   Fee group                    
                                                             ---------------------------------------------------
                                                                   A            B            C            D     
----------------------------------------------------------------------------------------------------------------
Caller Service (semi-annual)................................      $250.00      $250.00      $250.00      $250.00
Each Reserved Call Number (annual)..........................        30.00        30.00        30.00       30.00 
----------------------------------------------------------------------------------------------------------------
NOTES:                                                                                                          
\1\ In addition to the fees specified, all customers will be subject to an additional semi-annual $18.00        
  nonresident fee per box, regardless of box size, unless they receive, pursuant to postal regulations, an      
  exemption based upon proof of local residency.                                                                
\2\ Post office box customers who are eligible to receive carrier service at their delivery addresses are       
  ineligible for these fees and are subject instead to Group D fees.                                            

* * * * *

                    Schedule SS-14.--Registered Mail                    
------------------------------------------------------------------------
                                         Fees (in addition to postage)  
                                     -----------------------------------
                Value                    For articles      For articles 
                                          covered by      not covered by
                                          insurance         insurance   
------------------------------------------------------------------------
$0.00 to 100........................          \1\ $4.85      \1\ [$4.85]
0.00 to 100.........................           \2\ 4.95  ...............
100.01 to 500.......................               5.40           [5.20]
500.01 to 1,000.....................               5.85           [5.55]
1,000.01 to 2,000...................               6.30           [5.90]

[[Page 31976]]

                                                                        
2,000.01 to 3,000...................               6.75           [6.25]
3,000.01 to 4,000...................               7.20           [6.60]
4,000.01 to 5,000...................               7.65           [6.95]
5,000.01 to 6,000...................               8.10           [7.30]
6,000.01 to 7,000...................               8.55           [7.65]
7,000.01 to 8,000...................               9.00           [8.00]
8,000.01 to 9,000...................               9.45           [8.35]
9,000.01 to 10,000..................               9.90           [8.70]
10,000.01 to 11,000.................              10.35           [9.05]
11,000.01 to 12,000.................              10.80           [9.40]
12,000.01 to 13,000.................              11.25           [9.75]
13,000.01 to 14,000.................              11.70          [10.10]
14,000.01 to 15,000.................              12.15          [10.45]
15,000.01 to 16,000.................              12.60          [10.80]
16,000.01 to 17,000.................              13.05          [11.15]
17,000.01 to 18,000.................              13.50          [11.50]
18,000.01 to 19,000.................              13.95          [11.85]
19,000.01 to 20,000.................              14.40          [12.20]
20,000.01 to 21,000.................              14.85          [12.55]
21,000.01 to 22,000.................              15.30          [12.90]
22,000.01 to 23,000.................              15.75          [13.25]
23,000.01 to 24,000.................              16.20          [13.60]
24,000.01 to 25,000.................              16.65          [13.95]
25,000.01 to 1,000,000..............              16.65          [13.95]
    Plus handling charge per $1,000                                     
     or fraction over first $25,000.               0.45           [0.35]
1,000,000 to 15,000,000.............             455.40         [355.20]
    Plus handling charge per $1,000                                     
     or fraction over first                                             
     $1,000,000.....................               0.45           [0.35]
Over 15,000,000: additional charges                                     
 may be based on consideration of                                       
 weight, space and value............                                    
------------------------------------------------------------------------
\1\ Without insurance.                                                  
\2\ With insurance.                                                     


* * * * *

                             Schedule SS-16                             
------------------------------------------------------------------------
                                                      Return and fee (in
              Receipts and description                   addition to    
                                                           postage)     
------------------------------------------------------------------------
Requested at time of mailing:                                           
    [Showing to whom (signature) and date delivered               $1.10]
    [Merchandise only--without another special                          
     service.......................................                1.20]
    Showing to whom (signature), [and] date, and                        
     address (if different) where delivered........                1.50 
    Merchandise only--without another special                           
     service.......................................                1.65 
Requested after mailing:                                                
    Showing to whom and date delivered.............                6.60 
------------------------------------------------------------------------


                            [Schedule SS-17]                            
                           [Special Delivery]                           
------------------------------------------------------------------------
                                                     [Fee] [(in addition
                                                         to postage)]   
------------------------------------------------------------------------
[First-Class and Priority Mail:                                         
    Not more than 2 pounds.........................                9.95 
    Over 2 pounds but not over 10 pounds...........               10.35 
    Over 10 pounds.................................               11.15]
[All Other Classes:                                                     
    Not more than 2 pounds.........................               10.45 
    Over 2 pounds but not over 10 pounds...........               11.25 
    Over 10 pounds.................................               12.10]
------------------------------------------------------------------------

* * * * *

[[Page 31977]]



              Schedules SS-19.--Stamped Cards and Envelopes             
------------------------------------------------------------------------
                                                               Fee  (in 
                                                             addition to
                                                               postage) 
------------------------------------------------------------------------
Cards:                                                                  
    Stamped Card...........................................        $0.02
    Double Stamped Card....................................         0.04
Envelopes:                                                              
    Single Sale............................................         0.06
    Bulk (500) #6-3/4 size:                                             
        Regular............................................         8.20
        Window.............................................         9.00
    Bulk (500) size > #6-3/4 through #10: \1\                           
        Regular............................................        12.00
        Window.............................................        13.00
    Multi-Color Printing (500):                                         
        #6-3/4 size........................................        10.50
        #10 size \1\.......................................        15.00
    Printing Charge per 500 Envelopes (for each type of                 
     printed envelope):                                                 
        Minimum Order (500 envelopes)......................         4.40
        Order for 1,000 or more envelopes..................         4.40
    Double Window (500)--size > #6-3/4 through #10: \1\....        15.00
    Household (50):                                                     
        Size # 6-3/4:                                                   
            Regular........................................         3.00
            Window.........................................         3.10
        Size > #6-3/4 through #10:                                      
            Regular........................................         3.20
            Window.........................................        3.30 
------------------------------------------------------------------------
\1\ Fee for precancelled envelopes is the same.                         

* * * * *
Attachment C--Special Services Fees and Classifications

Special Rules of Practice

1. Evidence
    A. Case-in-chief. A participant's case-in-chief shall be in writing 
and shall include the participant's direct case and rebuttal, if any, 
to the United States Postal Service's case-in-chief. It may be 
accompanied by a trial brief or legal memoranda. There will be a stage 
providing an opportunity to rebut presentations of other participants 
and for the Postal Service to present surrebuttal evidence.
    B. Exhibits. Exhibits should be self-explanatory. They should 
contain appropriate footnotes or narrative explaining the source of 
each item of information used and the methods employed in statistical 
compilations. The principal title of each exhibit should state what it 
contains or represents. The title may also contain a statement of the 
purpose for which the exhibit is offered; however, this statement will 
not be considered part of the evidentiary record. Where one part of a 
multi-part exhibit is based on another part or on another exhibit, 
appropriate cross-references should be made. Relevant exposition should 
be included in the exhibits or provided in accompanying testimony.
    C. Motions to Strike. Motions to strike are requests for 
extraordinary relief and are not substitutes for briefs or rebuttal 
evidence. All motions to strike testimony or exhibit materials are to 
be submitted in writing at least 14 days before the scheduled 
appearance of the witness. Responses to motions to strike are due 
within seven days.
    D. Designation of Evidence from other Commission Dockets. 
Participants may request that evidence received in other Commission 
proceedings be entered into the record of this proceeding. These 
requests should be made by motion, should explain the purpose of the 
designation, and should identify material by page and line or paragraph 
number. Absent extraordinary justification, these requests must be made 
at least 28 days before the date for filing the participant's direct 
case. If requests for designations and counter-designations are 
granted, the moving participant must submit two copies of the approved 
material to the Secretary of the Commission for inclusion in the 
record.
    Oppositions to motions for designation and/or requests for counter-
designations shall be filed within 14 days.
2. Discovery
    A. General. Rules 25, 26 and 27 apply during the discovery stage of 
this proceeding except when specifically overtaken by these special 
rules. Questions from each participant should be numbered sequentially, 
by witness.
    The discovery procedures set forth in the rules are not exclusive. 
Parties are encouraged to engage in informal discovery whenever 
possible to clarify exhibits and testimony. The results of these 
efforts may be introduced into the record by stipulation, by 
supplementary testimony or exhibit, by presenting selected written 
interrogatories and answers for adoption by a witness at the hearing, 
or by other appropriate means.
    In the interest of reducing motion practice, parties also are 
encouraged to use informal means to clarify questions and to identify 
portions of discovery requests considered overbroad or burdensome.
    B. Objections and Motions to Compel Responses to Discovery. Upon 
motion of any participant in the proceeding, the Commission or the 
presiding officer may compel an answer to an interrogatory or request 
for admissions if the objection is overruled. Motions to compel should 
be filed within 14 days of an objection to the discovery request.
    Parties who have objected to interrogatories or requests for 
production of documents or items which are the subject of a motion to 
compel shall have seven days to answer. Answers will be considered 
supplements to the arguments presented in the initial objection.

[[Page 31978]]

    C. Answers to Interrogatories. Answers to discovery are to be filed 
within 14 days of the service of the discovery request. Answers to 
discovery requests shall be prepared so that they can be incorporated 
as written cross-examination. Each answer shall begin on a separate 
page, identify the individual responding, the participant who asked the 
question, and the number and text of the question.
    Participants are expected to serve supplemental answers to update 
or to correct responses whenever necessary, up until the date that 
answers are accepted into evidence as written cross-examination. 
Participants filing supplemental answers shall indicate whether the 
answer merely supplements the previous answer to make it current or 
whether it is a complete replacement for the previous answer.
    Participants may submit responses with a declaration of accuracy 
from the respondent in lieu of a sworn affidavit.
    D. Follow-up Interrogatories. Follow-up interrogatories to clarify 
or elaborate on the answer to an earlier discovery request may be filed 
after the initial discovery period ends. They must be served within 
seven days of receipt of the answer to the previous interrogatory 
unless extraordinary circumstances are shown.
    E. Discovery to Obtain Information Available Only from the Postal 
Service. Rules 25 through 27 allow discovery reasonably calculated to 
lead to admissible evidence during a noticed proceeding with no time 
limitations. Generally, through actions by the presiding officer, 
discovery against a participant is scheduled to end prior to the 
receipt into evidence of that participant's direct case. An exception 
to this procedure shall operate when a participant needs to obtain 
information (such as operating procedures or data) available only from 
the Postal Service. Discovery requests of this nature are permissible 
up to 20 days prior to the filing date for final rebuttal testimony.
3. Service
    A. Receipt of Documents. The Service List shall contain the name 
and address of up to two individuals entitled to receive copies of 
documents for each participant. If possible that entry will also 
include a telephone number and facsimile number. Individuals on the 
service list willing to receive documents electronically will provide 
their e-mail address which shall appear on the Service List. Service on 
those individuals should be made electronically if possible. Otherwise 
service should be effected as provided in Rule of Practice 12.
    B. Service of Documents. Service of documents may be effected using 
one of three procedures. Procedure (1): participants will file 
documents and effect service as provided in Rules of Practice 9-12. 
Procedure (2): participants will provide the Commission with a diskette 
containing the text of each filing simultaneously with the filing of an 
original and one hard copy. Procedure (2) participants will serve all 
individuals on the service list not identified as willing to receive 
electronic service as provided by Rule of Practice 12. The Commission 
will provide service via e-mail to the remainder of the service list. 
Procedure (3): participants will provide the Commission with an 
original, one hard copy, and an electronic copy sent by e-mail to PRC-
[email protected]. Procedure (3) participants will provide service 
electronically via e-mail to those individuals identified on the 
service list as willing to receive electronic service and will serve 
the remainder as required by Rule of Practice 12.
    Certificates of service should identify the procedure used to 
effect service.
    C. Exceptions to general service requirements for certain 
documents. Designations of written cross-examination, notices of intent 
to conduct oral cross-examination, and notices of intent to participate 
in oral argument need to be served only on the Commission, the OCA, the 
Postal Service, and the complementary party (as applicable), as well as 
on participants filing a special request for service.
    Discovery requests, objections and answers thereto need to be 
served on the Commission, the OCA, on the complementary party, and on 
any other participant so requesting, as provided in rules 25-27. 
Special requests relating to discovery must be served individually upon 
the party conducting discovery and state the witness who is the subject 
of the special request.
    D. Document titles. Parties should include titles that effectively 
describe the basic content of any filed documents. Where applicable, 
titles should identify the issue addressed and the relief requested. 
Transmittal documents should identify the answers or other materials 
being provided.
4. Cross-examination
    A. Written cross-examination. Written cross-examination will be 
utilized as a substitute for oral cross-examination whenever possible, 
particularly to introduce factual or statistical evidence.
    Designations of written cross-examination should be served no later 
than three working days before the scheduled appearance of a witness. 
Designations shall identify every item to be offered as evidence, 
listing the participant who initially posed the discovery request, the 
witness and/or party to whom the question was addressed (if different 
from the witness answering), the number of the request and, if more 
than one answer is provided, the dates of all answers to be included in 
the record. (For example, ``OCA-T1-17 to USPS witness Jones, answered 
by USPS witness Smith (July 1, 1996) as updated (July 21, 1996).'' When 
a participant designates written cross-examination, two copies of the 
documents to be included shall simultaneously be submitted to the 
Secretary of the Commission.
    The Secretary of the Commission shall prepare for the record a 
packet containing all materials designated for written cross-
examination in a format that facilitates review by the witness and 
counsel. The witness will verify the answers and materials in the 
packet, and they will be entered into the transcript by the presiding 
officer. Counsel for a witness may object to written cross-examination 
at that time, and any designated answers or materials ruled 
objectionable will be stricken from the record.
    B. Oral cross-examination. Oral cross-examination will be permitted 
for clarifying written cross-examination and for testing assumptions, 
conclusions or other opinion evidence. Requests for permission to 
conduct oral cross-examination should be served three or more working 
days before the announced appearance of a witness and should include 
(1) specific references to the subject matter to be examined and (2) 
page references to the relevant direct testimony and exhibits.
    Participants intending to use complex numerical hypotheticals or to 
question using intricate or extensive cross-references, shall provide 
adequately documented cross-examination exhibits for the record. Copies 
of these exhibits should be provided to counsel for the witness at 
least two calendar days (including one working day) before the 
witness's scheduled appearance.
5. General
    Argument will not be received in evidence. It is the province of 
the lawyer, not the witness. It should be presented in brief or 
memoranda. Legal memoranda on matters at issue will be welcome at any 
stage of the proceeding.
    New affirmative matter (not in reply to another party's direct 
case) should not be included in rebuttal testimony or exhibits.

[[Page 31979]]

    Cross-examination will be limited to testimony adverse to the 
participant conducting the cross-examination.
    Library references may be submitted when documentation or materials 
are too voluminous reasonably to be distributed. Each party should 
sequentially number items submitted as library references and provide 
each item with an informative title. Parties are to file and serve a 
separate Notice of Filing of Library Reference(s). Library material is 
not evidence unless and until it is designated and sponsored by a 
witness.

[FR Doc. 96-15777 Filed 6-20-96; 8:45 am]
BILLING CODE 7710-FW-P