[Federal Register Volume 62, Number 116 (Tuesday, June 17, 1997)]
[Notices]
[Pages 32832-32837]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-15810]


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POSTAL RATE COMMISSION

[Order No. 1184; Docket Nos. MC97-4 and C97-1]


Bulk Parcel Return Service and Shipper-Paid Forwarding 
Classifications and Fees; and Complaint of the Advertising Mail 
Marketing Association Regarding Charges for Standard (A) Merchandise 
Returns; Notice of Request for Changes in Domestic Mail Classification 
Schedule Provisions and Rates Affecting Forwarding and Return of 
Standard (A) Parcels and Order Instituting Proceedings

Issued June 11, 1997.
    Before Commissioners: Edward J. Gleiman, Chairman; H. Edward 
Quick, Jr., Vice Chairman; George W. Haley; W.H. ``Trey'' LeBlanc 
III.

    Notice is hereby given that on June 6, 1997, the United States 
Postal Service filed a Request with the Postal Rate Commission pursuant 
to section 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 and fees. The Request includes attachments 
and is supported by the testimony of two witnesses and two library 
references. It is on file in the Commission Docket Room and is 
available for inspection during the Commission's regular business 
hours.
    Contents of the filing. The Postal Service requests that the 
Commission consider two changes affecting the forwarding and return of 
Standard (A) parcels that were initially considered in Docket No. MC97-
2. It requests that Bulk Parcel Return Service (BPRS) and Shipper Paid 
Forwarding (SPF) be established. Under current practice, forwarding and 
return of bulk Standard (A) parcels is obtained by endorsing mailpieces 
``Forwarding and Return Postage Guaranteed'' or ``Forwarding and Return 
Postage Guaranteed, Address Correction Requested.'' At the time that a 
parcel is returned, postage is paid for return service and indirectly 
paid for forwarding service, through a weighted fee that is 2.472 times 
the applicable single piece rate. The 2.472 weighting factor is the sum 
of one and 1.472. One, multiplied by the single piece rate, is intended 
to directly cover the cost of return service. 1.472 is the average 
number of pieces that are forwarded for every piece that is returned. 
Multiplying 1.472 times the single piece rate is intended to cover the 
cost of return service. This weighted fee can result in a charge for 
forwarding and return that is prohibitively high, according to the 
Postal Service. To provide continuity mailers other options, the Postal 
Service proposes to establish SPF and BPRS.
    SPF would allow mailers to pay forwarding fees (the applicable 
single piece rate) directly, through the use of the tracking 
capabilities of the existing electronic Address Change Service (ACS). 
Only machinable parcels with the required endorsements would be 
eligible. An advance deposit would be required.
    BPRS, through bulk handling of returned parcels, would lower the 
average cost of return service. BPRS mailers would arrange to pick up 
their returned parcels at a specified frequency, at a designated postal 
facility, or would have their returned parcels delivered to them in 
bulk by the Postal Service. Only machinable parcels weighing less than 
one pound, with the required endorsements, would be eligible for BPRS. 
A minimum of 50,000 returned parcels per year would be required. BPRS 
mailers would be required to document their returned parcel volume, and 
to maintain an advance deposit account. A flat $1.75 per-piece fee and 
an annual permit fee of $85 is proposed. SPF and BPRS service could be 
combined.
    The Postal Service's request is supported by the testimony of 
Postal Service witness Pham (USPS-T-1), which analyzes the costs of 
BPRS, and the testimony of Postal Service witness Adra (USPS-T-2), 
which addresses the consistency of the proposed changes in 
classifications and fees for SPF and BPRS with the applicable standards 
of the Postal Reorganization Act. The Postal Service asserts that 
neither SPF nor BPRS would alter existing forwarding or return services 
or rates for Standard (A) parcels. It also asserts that establishing 
BPRS would have little financial impact on postal costs and revenues. 
It contends that it would reduce overall postal costs by approximately 
$4 million, and Standard (A) mail's contribution to institutional costs 
by less that $1 million. See USPS-T-2, Exhibit USPS-2A.
    The Postal Service's request is accompanied by two library 
references. The first (USPS-LR-1/MC97-4) is the FY 1996 Cost & Revenue 
Analysis Report. The second (USPS-LR-2/MC97-4) is a mailer survey 
designed to estimate the volume impact of BPRS.
    Proposed DMCS provisions. The Postal Service's Request proposes 
changes in the current Domestic Mail Classification Schedule (DMCS). It 
proposes establishing separate Special Service Schedules SS-21, for 
Bulk Parcel Return Service, and SS-22, for Shipper-Paid Forwarding. The 
DMCS is codified at 39 CFR part 3001, subpart C, Appendix A. In 
Attachment A to its Request, the Postal Service displays the changes it 
proposes in the version of the DMCS currently in effect. These proposed 
revisions accompany this Notice as Attachment A.
    Proposed rate and fee schedules. In Attachment B to its Request, 
the Postal Service displays changes it proposes to the various rate and 
fee schedules currently in effect. It proposes to establish Schedule 
SS-21, which would specify a flat fee for BPRS of $1.75 per piece; and 
to specify a BPRS permit fee of $85, under existing Schedule 1000. The 
Postal Service's requested changes in rates and fees accompany this 
Notice as Attachment B.
    Procedural proposals. The Postal Service's Request is accompanied 
by a Motion of the United States Postal Service to Establish Procedural 
Mechanisms Concerning Settlement. In it, the Postal Service observes 
that the SPF and BPRS proposals in this docket

[[Page 32833]]

are identical to those that were included in the Postal Service's 
Request in Docket No. MC97-2. It notes that before that docket was 
withdrawn, intervenors had approximately seven weeks in which to 
conduct discovery. It expresses a hope that any additional discovery 
will be begun quickly after intervention, limited in duration and 
scope, and designed to determine whether intervenors can join, in whole 
or in part, in the proposed Stipulation and Agreement that accompanies 
its Request.
    The proposed Stipulation and Agreement recites that Advertising 
Mail Marketing Association (AMMA) filed a section 3662 complaint in 
October of 1996 alleging that the Standard (A) single piece rate 
charged to the recipients of returned Standard (A) parcels violates the 
policies of the Postal Reorganization Act, that AMMA withdrew its 
complaint in anticipation that MC97-2 would address this issue, that 
AMMA asked that the Commission revive its complaint after the Postal 
Service withdrew its Request in MC97-2, and that the Postal Service 
filed its Request in this docket, again proposing SPF and BPRS.
    The proposed Stipulation and Agreement would stipulate that the 
Request, attachments, and accompanying testimony and exhibits 
constitute substantial and sufficient evidence in support of the SPF 
and BPRS proposals, and that those proposals are consistent with the 
policies of 39 U.S.C. 3622 and 3623. It provides that the methods of 
classification or ratemaking, or determination of cost of service, are 
stipulated to only for purposes of this docket. The proposed 
Stipulation and Agreement is signed by the Postal Service and AMMA.
    The Postal Service proposes that the Order that institutes this 
proceeding enter the proffered testimony and the Stipulation and 
Agreement in the record. It also proposes that the Order allow 
intervention until June 27, 1997, require statements of intent to 
contest specific issues from intervenors by July 8, 1997, require that 
any discovery undertaken be completed by July 18, 1997, that any 
testimony or pleadings opposing the Stipulation and Agreement be filed 
by August 4, 1997, and that any responses be required by August 11, 
1997.
    The Postal Service accompanies its Request by a motion for waiver 
of many of the filing requirements of Rules 64 and 54, on the ground 
that these proposals are narrow in scope and limited in their effect on 
other classes and services. The Postal Service also includes a motion 
for consolidation of this docket with Docket No. C97-1.
    Ruling on motion to establish settlement procedures. It is 
Commission policy to facilitate settlement of issues. In view of the 
very limited scope and effect of these proposals, and the willingness 
of the complainant in Docket No. C97-1 to settle, the Commission 
recognizes the potential for expeditious settlement of this docket. In 
view of the active litigation of these proposals in Docket No. MC97-2 
by others, however, it appears that the optimal approach is one that 
will accommodate either settlement, or such litigation as the 
intervenors choose to pursue, with the utmost expedition. The 
Commission, therefore, will adopt a two-track approach, designed to 
simultaneously encourage settlement, and speed any litigation that 
intervenors deem necessary. The Commission will schedule a settlement 
conference for Monday, July 14, 1997, in the Commission hearing room at 
1333 H Street, NW, Washington, DC beginning at 9:30 a.m. The Postal 
Service will serve as settlement coordinator.
    Participants will have until July 1, 1997, to intervene. 
Intervenors may commence any desired discovery immediately upon filing 
a Notice of Intervention. The Commission will schedule a prehearing 
conference for the afternoon of July 14, 1997, at 1:30 p.m., following 
the morning settlement conference. At the prehearing conference, the 
Postal Service will be asked to report on the results of the settlement 
conference. At that time, if intervenors believe that there are legal 
or factual issues that are an obstacle to settlement, they will be 
asked to identify them, and indicate whether they wish to present 
evidence on those issues. Further procedural scheduling will depend on 
the results of the prehearing conference.
    Rulings on remaining motions. In its Motion of United States Postal 
Service for Waiver of Certain Filing Requirements Incorporated in the 
Commission's Rules of Practice and Procedure, accompanying its Request, 
the Postal Service seeks waiver of the requirement to provide the 
information specified in Rules 64(b)(3), 64(d), and 64(h), and Rules 
54(b)(3), 54(f)-(h), 54(j), and 54(l), to the extent that they apply, 
and a blanket waiver of other filing requirements that its Request does 
not fully satisfy. Rule 64(h)(3) provides that these requirements may 
be waived if the Commission determines that it has been demonstrated 
that the proposed changes in the classification schedule do not 
significantly change rates and fees or cost-revenue relationships 
referred to in the rule.
    The SPF and BPRS proposals would not change current rates and fees 
for any existing category of mail or special service, including 
Standard (A) mail. Because they would alter total costs by only about 
$4 million out of more than $55 billion, and reduce the Standard (A) 
single-piece contribution to institutional costs by less than one 
percent, these proposals would not appear to have a significant impact 
on cost and revenue relationships of the various subclasses. Therefore, 
a waiver of these requirements appears to be warranted under the 
Commission Rules of practice, including Rules 64(h)(3) and 54(r). 
Accordingly, it will be granted.
    In its Motion of the United States Postal Service to Consolidate 
Proceedings, filed with its Request, the Postal Service argues that the 
filing of its Request in this docket Docket No. C97-1 returns to the 
status that it held just prior to the withdrawal of the Request in 
Docket No. MC97-2. At that time Docket No. C97-1 was being held in 
abeyance. It argues that resolution of the issues in the current docket 
would resolve the identical issues in C97-1, and therefore it is 
appropriate to consolidate Docket No. C97-1 with the current docket. 
The apparent agreement by the complainant in C97-1 with the resolution 
of those issues proposed by the Postal Service in the current docket 
confirms the appropriateness of the Postal Service's request. 
Therefore, it will be granted.
    Also filed with the Postal Service's Request is a Motion of the 
United States Postal Service Seeking Leave to File Facsimile Copy of 
Signature Page as Attachment to Stipulation and Agreement. The Motion 
alleges sufficient grounds for granting the leave that it requests.
    Intervention. Participation in Commission proceedings generally 
takes the form of either full intervention or limited participation. 
See sections 20 and 20a of the Commission rules of practice (39 CFR 
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 section 20b (39 CFR 
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 section 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

[[Page 32834]]

provide a telephone number, facsimile number, and e-mail address if 
available.
    Notices of intervention should be sent to the attention of Margaret 
P. Crenshaw, Secretary of the Commission, 1333 H Street, NW, Suite 300, 
Washington, DC 20268-0001, and are to be filed on or before July 1, 
1997. 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.
    Special rules of practice. Special Rules of Practice are set forth 
in Attachment C. These Special Rules are an amalgam of the non-
controversial portions of the Special Rules used Docket Nos. MC97-2, 
and MC96-3. Participants are to follow these Special Rules during this 
proceeding or to submit requests for waiver or modification of any of 
these rules.
    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).
    It is ordered:
    1. The Commission will sit en banc in this proceeding.
    2. Notices of intervention shall be filed no later than July 1, 
1997.
    3. A settlement conference will be held on July 14, 1997, beginning 
at 9:30 a.m. in the Postal Rate Commission hearing room, 1333 H Street, 
NW., Suite 300, Washington, DC 20268-0001.
    4. A prehearing conference will be held on July 14, 1997, beginning 
at 1:30 p.m., in the Postal Rate Commission hearing room, 1333 H 
Street, N.W., Suite 300, Washington, D.C., 20269-0001.
    5. 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.
    6. The Motion of the United States Postal Service to Establish 
Procedural Mechanisms Concerning Settlement, filed June 6, 1997, is 
granted to the extent described in the body of this order.
    7. The Motion of the United States Postal Service to Consolidate 
Proceedings, filed June 6, 1997, is granted.
    8. The Motion of the United States Postal Service Seeking Leave to 
File Facsimile Copy of Signature Page as Attachment to Stipulation and 
Agreement, filed June 6, 1997, is granted.
    9. The Motion of the United States Postal Service for Waiver of 
Certain Filing Requirements Incorporated in the Commission's Rules of 
Practice and Procedure, filed June 6, 1997, is granted.
    10. The Secretary shall cause this Notice and Order to be published 
in the Federal Register.

    By the Commission.
Margaret P. Crenshaw,
Secretary.

Attachment A--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 Decision of the Governors on the Recommended Decision 
of the Postal Rate Commission on Special Services Fees and 
Classifications, Docket No. MC96-3, (Special Services Decision) as 
implemented by Resolution 97-7 of the Board of Governors, and the 
Decision of the Governors on the Recommended Decision of the Postal 
Rate Commission on the Experimental Nonletter-Size Business Reply Mail 
Categories and Fees, Docket No. MC97-1 (BRM Decision), as implemented 
by Resolution 97-8 of the Board of Governors. The current DMCS (which 
is published in part at 39 CFR part 3001, subpart C, appendix A, in 
part as Attachment A to the Special Services Decision (62 FR 26,099), 
in part as Attachment A to the BRM Decision (62 FR 25,756), and in part 
as Attachment B to the Decision of the Governors of the United States 
Postal Service on the Recommended Decision of the Postal Rate 
Commission on Nonprofit Standard Mail, Nonprofit Enhanced Carrier Route 
Standard Mail, Nonprofit Periodicals, and Within County Periodicals, 
Docket No. MC96-2 (61 FR 42,464)), is the basis for the proposed 
changes in this Request.
    Proposed additions to text of the classification schedule are in 
italics; proposed deletions are in brackets. The changes in the DMCS 
requested by the Postal Service are as follows:
350  DEPOSIT AND DELIVERY
* * * * *

353  Forwarding and Return

353.1  Single Piece, Regular, Enhanced Carrier Route, Nonprofit and 
Nonprofit Enhanced Carrier Route Subclasses (Section 321)

    Undeliverable-as-addressed Standard Mail mailed under section 321 
will be returned on request of the mailer, or forwarded and returned on 
request of the mailer. Undeliverable-as-addressed combined First-Class 
and Standard pieces will be returned as prescribed by the Postal 
Service. Except as provided in Schedule SS-21, [T]the Single Piece 
Standard rate is charged for each piece receiving return only service. 
Except as provided in Schedule SS-22, [C]charges for forwarding-and-
return service are assessed only on those pieces which cannot be 
forwarded and are returned. Except as provided in Schedules SS-21 and 
SS-22, [T]the charge for those returned pieces is the appropriate 
Single Piece Standard rate for the piece plus that rate multiplied by a 
factor equal to the number of section 321 Standard pieces nationwide 
that are successfully forwarded for every one piece that cannot be 
forwarded and must be returned.
* * * * *
360  ANCILLARY SERVICES
* * * * *

363  Regular and Nonprofit

    Regular and Nonprofit subclass mail will receive the following 
additional services upon payment of the appropriate fees:

------------------------------------------------------------------------
                           Service                              Schedule
------------------------------------------------------------------------
a. Bulk Parcel Return Service................................      SS-21
b. Shipper-Paid Forwarding...................................      SS-22
------------------------------------------------------------------------

* * * * *
CLASSIFICATION SCHEDULE SS-21--BULK PARCEL RETURN SERVICE

21.01  Definition

    21.010  Bulk Parcel Return Service provides a method whereby high-
volume parcel mailers may have undeliverable-as-addressed machinable 
parcels returned to designated postal

[[Page 32835]]

facilities for pickup by the mailer at a predetermined frequency 
prescribed by the Postal Service or delivered by the Postal Service in 
bulk in a manner and frequency prescribed by the Postal Service.

21.02  Description of Service

    21.020  Bulk Parcel Return Service is available only for the return 
of machinable parcels, as defined by the Postal Service, initially 
mailed under the following Standard Mail subclasses: Regular and 
Nonprofit.

21.03  Requirements of the Mailer

    21.030  Mailers must receive authorization from the Postal Service 
to use Bulk Parcel Return Service.
    21.031  To claim eligibility for Bulk Parcel Return Service at each 
facility through which the mailer requests Bulk Parcel Return Service, 
the mailer must demonstrate receipt of a prescribed minimum number of 
returned machinable parcels at a given delivery point in the previous 
postal fiscal year or must demonstrate a high likelihood of receiving 
the prescribed minimum number of returned parcels in the postal fiscal 
year for which the service is requested.
    21.032  Payment for Bulk Parcel Return Service is made through 
advance deposit account, or as otherwise specified by the Postal 
Service.
    21.033  Mail for which Bulk Parcel Return Service is requested must 
bear endorsements prescribed by the Postal Service.
    21.034  Bulk Parcel Return Service mailers must meet the 
documentation and audit requirements of the Postal Service.

21.04  Other Services

    21.040  The following services may be purchased in conjunction with 
Bulk Parcel Return Service:

------------------------------------------------------------------------
                                                          Classification
                                                             schedule   
------------------------------------------------------------------------
a. Address Correction Service...........................          SS-1  
b. Certificate of Mailing...............................          SS-4  
c. Shipper-Paid Forwarding..............................         SS-22  
------------------------------------------------------------------------

21.05  Fee

    21.050  The fee for Bulk Parcel Return Service is set forth in Fee 
Schedule SS-21.

21.06  Authorizations and Licenses

    21.060  A permit fee as set forth in Fee Schedule 1000 must be paid 
once each calendar year by mailers utilizing Bulk Parcel Return 
Service.
    21.061  The Bulk Parcel Return Service permit may be canceled for 
failure to maintain sufficient funds in an advance deposit account to 
cover postage and fees on returned parcels or for failure to meet the 
specifications of the Postal Service.
CLASSIFICATION SCHEDULE SS-22--SHIPPER-PAID FORWARDING

22.01  Definition

    22.010  Shipper-Paid Forwarding provides a method whereby mailers 
may have undeliverable-as-addressed machinable parcels forwarded at 
Standard Mail Single Piece rates for up to one year from the date that 
the addressee filed a change-of-address order. If the parcel, for which 
Shipper-Paid Forwarding is elected, is returned, the mailer will pay 
the appropriate Standard Mail Single Piece rate, or the Bulk Parcel 
Return Service fee, if that service was elected.

22.02  Description of Service

    22.020  Shipper-Paid Forwarding is available only for the 
forwarding of machinable parcels, as defined by the Postal Service, 
initially mailed under the following Standard Mail subclasses: Regular 
and Nonprofit.

22.03  Requirements of the Mailer

    22.030  Shipper-Paid Forwarding is available only in conjunction 
with automated Address Correction Service in Schedule SS-1.
    22.031  Mail for which Shipper-Paid Forwarding is purchased must 
meet the preparation requirements of the Postal Service.
    22.032  Payment for Shipper-Paid Forwarding is made through advance 
deposit account, or as otherwise specified by the Postal Service.
    22.033  Mail for which Shipper-Paid Forwarding is requested must 
bear endorsements prescribed by the Postal Service.

22.04  Other Services

    22.040  The following services may be purchased in conjunction with 
Shipper-Paid Forwarding:

------------------------------------------------------------------------
                                                          Classification
                                                             schedule   
------------------------------------------------------------------------
a. Certificate of Mailing...............................          SS-4  
b. Bulk Parcel Return Service...........................         SS-21  
------------------------------------------------------------------------

22.05  Applicable Rates

    22.050  Except as provided in Schedule SS-21, Standard Mail Single 
Piece rates, set forth in Rate Schedule 321.1, apply to pieces 
forwarded or returned in connection with Shipper-Paid Forwarding.
GENERAL DEFINITIONS, TERMS AND CONDITIONS
* * * * *

2000  Delivery of Mail

* * * * *

2030  Forwarding and Return

* * * * *
    2033  Applicable Provisions. The provisions of sections 150, 250, 
350 and 450 and schedules SS-21 and SS-22 apply to forwarding and 
return.

Attachment B--Requested Changes in the Fee 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 fee schedules.
    Rate and fee schedules were last amended in part by the Decision of 
the Governors on the Recommended Decision of the Postal Rate Commission 
on Classroom Mail, Docket No. MC96-2 (Classroom Decision), as 
implemented by Resolution 97-9 of the Board of Governors; the Decision 
of the Governors on the Recommended Decision of the Postal Rate 
Commission on Special Services Fees and Classifications, Docket No. 
MC96-3 (Special Services Decision), as implemented by Resolution 97-7 
of the Board of Governors; and the Decision of the Governors on the 
Recommended Decision of the Postal Rate Commission on the Experimental 
Nonletter-Size Business Reply Mail Categories and Fees, Docket No. 
MC97-1 (BRM Decision), as implemented by resolution 97-8 of the Board 
of Governors. The current rate and fee schedules (which are published 
in part at 39 CFR part 3001, subpart C, appendix A, and in part as the 
Attachment to the Classroom Decision, in part as Attachment B to the 
Special Services Decision (62 FR 26,099), in part as Attachment B to 
the BRM Decision (26 FR 25,756), and in part as Attachment B to the 
Decision of the Governors of the United States Postal Service on the 
Recommended Decision of the Postal Rate Commission on Nonprofit 
Standard Mail, Nonprofit Enhanced Carrier Route Standard Mail, 
Nonprofit Periodicals, and Within County Periodicals, Docket No. MC96-2 
(61 FR 42,464)) are the basis for the proposed changes in this Request.
    Unless otherwise indicated, proposed additions to the text of the 
schedules are

[[Page 32836]]

in italics. The requested changes in the fee schedules are as follows:
* * * * *
SPECIAL SERVICES
* * * * *

------------------------------------------------------------------------
                                                                   Fee  
------------------------------------------------------------------------
               Schedule SS-21--Bulk Parcel Return Service               
------------------------------------------------------------------------
Per Returned Piece.............................................    $1.75
------------------------------------------------------------------------
                           Schedule 1000--Fees                          
------------------------------------------------------------------------
                                                                        
                  *        *        *        *        *                 
Authorization to Use Bulk Parcel Return Service................    85.00
------------------------------------------------------------------------

Attachment C--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, unless good cause is shown. 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. Sections 25, 26 and 27 of the rules of practice 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.
    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. Sections 25 through 27 of the rules of practice 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.
    B. Service of Documents. Documents shall be filed with the 
Commission and served upon parties in accordance with sections 9 
through 12 of the Commission's rules of practice. As provided in the 
Secretary's Notice to Intervenors, issued February 4, 1997, 
participants capable of submitting documents stored on computer 
diskettes may use an alternative procedure for filing documents with 
the Commission. Provided that the stored document is a file generated 
in either Word Perfect 5.1 or any version of Microsoft Word, and is 
formatted in Arial 12 font, in lieu of

[[Page 32837]]

the requirements of section 10 of the rules, a participant may submit a 
diskette containing the text of each filing simultaneously with the 
filing of 1 (one) printed original and 3 (three) hard copies.
    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, the Postal Service, and the 
complementary party, and on any other participant so requesting, as 
provided in sections 25-27 of the rules of practice. 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 (March 1, 1997) as updated (March 21, 1997)).'' 
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.
    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. 97-15810 Filed 6-16-97; 8:45 am]
BILLING CODE 7710-FW-P