[Federal Register Volume 66, Number 143 (Wednesday, July 25, 2001)]
[Proposed Rules]
[Pages 38602-38603]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-18454]


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POSTAL RATE COMMISSION

39 CFR Part 3001

[Docket No. RM2001-3; Order No. 1319]


Rules of Practice and Procedure

AGENCY: Postal Rate Commission.

ACTION: Request for comments on expired rules.

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SUMMARY: Several Commission rules on expedited consideration of Postal 
Service requests for recommended decisions have expired. The Commission 
seeks comments on whether these rules should be re-issued. After 
evaluation of the comments, the Commission anticipates issuing a notice 
of proposed rulemaking addressing the expired rules.

DATES: Comments are due by August 21, 2001.

ADDRESSES: Send comments to Steven W. Williams, Acting Secretary, 
Postal Rate Commission, 1333 H Street, NW., Suite 300, Washington, DC 
20268-0001.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
202-789-6820.

SUPPLEMENTARY INFORMATION: In two unrelated rulemakings, the Commission 
amended its rules of practice, 39 CFR 3001.1 et seq., to provide for 
expedited consideration of certain Postal Service requests for a 
recommended decision. The first, adopted in 1989, concerned changes in 
Express Mail rates and fees. The second, adopted in 1996, entailed four 
rules designed to address certain types of classification changes. 
These five rules contain a common thread; each includes a five-year 
sunset provision; each of these rules has now expired.
    By this notice, the Commission solicits comments from interested 
persons concerning the advisability of reissuing some or all of these 
rules. The rules are briefly described below.\1\
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    \1\ The Commission is distributing the relevant rules with this 
order to the service list in the most recent omnibus rate case, 
docket no. R2000-1, as a convenience to those parties.
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1. Market Response Rate Requests for Express Mail Service

    Rules 57 through 57c govern Postal Service requests for an 
expedited recommended decision on changes in Express Mail rates and 
fees. These rules were adopted in response to a Postal Service petition 
requesting the Commission to initiate a rulemaking to implement special 
rules designed to consider changes in Express Mail rates prompted by 
changes in market conditions. See order no. 836, docket no. RM88-2, 
August 10, 1989. The rules provide for a compressed procedural schedule 
under which the Commission is to consider the Postal Service's market 
rate request within 90 days of its filing. Rule 57c; see also rule 
57b(e)(5). As adopted, the rules were designed, consistent with due 
process, to expedite consideration of proposed changes in Express Mail 
rates occasioned by market conditions for the purpose of minimizing the 
loss of Express Mail's contribution to institutional costs recommended 
in the most recent omnibus rate case. Rule 57(a). The rules included a 
sunset provision limiting their effectiveness for a period of five 
years from the date of their adoption by the Commission. Rule 57(b).
    In August 1994, on or about the date the rules expired, the Postal 
Service requested the Commission to institute a rulemaking proceeding 
to reissue the rules. After notice and comment, the Commission reissued 
the rules, including the sunset provision. Order no. 1042, docket no. 
RM95-1, February 17, 2000. The reissued rules (57 through 57c) expired 
March 6, 2000.
    The Postal Service never invoked these rules. Nor has it sought to 
have them reissued after their expiration in March 2000.

2. Limited Classification Changes

    In April 1995, the Postal Service petitioned the Commission to 
initiate a rulemaking involving changes or additions to the 
Commission's procedural rules concerning limited rate and 
classification matters. The petition drew heavily on a report, ``Postal 
Ratemaking in a Time Change,'' issued by the Joint Task Force on Postal 
Ratemaking, June 1, 1992. In an advance notice of proposed rulemaking 
the Commission requested comments on the Postal Service's petition. 60 
FR 22017, May 4, 1995. Following the receipt of comments by interested 
parties, the Commission issued a notice of proposed rulemaking in which 
it proposed specific amendments to its rules of practice designed to 
expedite consideration of certain limited classification-related 
changes requested by the Postal Service. Order no. 1084, docket no 
RM95-4, October 13, 1995. Thereafter, in a final rule issued, in May 
1996, the Commission adopted three separate set of rules designed to

[[Page 38603]]

facilitate expedited review of Postal Service requests concerning 
market tests provisional service changes of limited duration, and minor 
classification changes. Order no. 1110, docket no. RM95-4, May 7, 1996. 
In addition, the Commission adopted a rule permitting the Postal 
Service to request use of multi-year test period for a new services. 
Id. at 19-22. Each of these rules included a five-year sunset 
provision. Each has expired.

A. Market Tests of Proposed Mail Classification Changes

    Rules 161 through 166 govern requests by the Postal Service to 
permit market testing of a proposed service change to develop 
information necessary to support a permanent classification change. 
Among other things, these rules, which pertain exclusively to the 
Commission's determination to recommend for or against the market test, 
identify the data to be provided, e.g., such data as are necessary to 
fully inform the Commission and the parties of the nature and impact of 
the market test (rule 162); outline the procedures to be followed (rule 
163); and provide a rule for decision under which the Commission has 90 
days to consider the proposed market test (rule 164). Absent good 
cause, the Commission shall not recommend market tests of more than 
one-year duration. Rule 161(b).
    The Postal Service invoked these rules once. In docket no. MC98-1, 
Mailing Online Service, the Postal Service sought to conduct a market 
test of a proposed mailing online service prior to its introduction as 
an experimental mail classification. The Commission approved the 
proposed market test. PRC Op. MC98-1, October 7, 1998. The Postal 
Service, however, encountered technical difficulties in its market 
test, and, as result, withdrew its proposal to conduct an expanded 
Mailing Online experiment. Subsequently, in November 1999, the Postal 
Service filed docket no. MC2000-2 to implement a nationwide Mailing 
Online experiment.

B. Provisional Service Changes of Limited Duration

    Rules 171 through 176 govern requests for the establishment of a 
provisional service to supplement, but not alter, existing mail 
classifications and rates for a limited and fixed duration. The 
requirements of these rules are generally similar to those for market 
tests, e.g., identifying the data to be provided, the procedures to be 
followed, and the timetable for decision. See rules 172-74. Provisions 
service changes are limited to a duration of no more than two years, 
which, upon request, may be extended for an additional year if a Postal 
Service request to establish the provisional service as a permanent 
mail classification is pending before the Commission. See rule 171(a).
    The Postal Service has employed these rules once. In docket no. 
MC97-5, the Postal Service requested a provisional classification and 
fee schedule for a packaging service under which mailers would bring 
items to selected post offices for packing prior to mailing as parcels. 
The Commission recommended the provisional service, albeit with 
modifications. PRC Op. MC97-5, March 31, 1998. The Governors have not 
acted on this recommended decision.

C. Minor Classification Cases

    Rules 69 through 69c provide for expedited review of Postal Service 
requests for a recommended decision of minor mail classification 
changes. A change is considered minor if it: involves no change in an 
existing rate or fee, would impose no new eligibility requirements on a 
subclass or rate category, and would not significantly affect the 
institutional cost contribution of the affected subclass or rate 
category. These rules, while differing somewhat from those for the 
other expedited proceedings, do describe the data to be filed and the 
procedures to be followed. Rules 69a-69b. The rules prescribe a 
timetable for the Commission to decide whether to treat the request as 
a minor classification change. Rule 69b(f). In addition, the rules 
provide for a recommended decision no later than 120 days after the 
filing of the request. Rule 69c. The Postal Service has employed these 
rules once. In docket no. MC99-4, the Postal Service sought expedited 
review of its request for a classification change expanding the 
availability of Bulk Parcel Return Service (BPRS). An unopposed 
stipulation and agreement formed the basis of the Commission's 
recommended decision in that proceeding. PRC Op. MC99-4, August 19, 
1999; see also Governors' Decision, Docket No. MC99-4, August 30, 1999.

D. Multi-Year Test Periods

    Subpart K of the Commission's rules, rules 181 and 182, authorizes 
the Postal Service to request an extended test period (of up to five 
years) for the purposes of determining breakeven of a proposed new 
postal service. Rule 181. Among other things, the Postal Service must 
justify its request through testimony and other documentary support. 
Rule 182.
    The Postal Service has never invoked the multi-year test period 
rules.

3. Request for Comments

    The rules, which were initiated at the Postal Service's request, 
were designed to provide the Postal Service with procedural options to 
facilitate expedited consideration of certain proposals. The rules have 
been invoked sparingly or not at all. The question, therefore, arises 
whether the rules or some of them have sufficient value to warrant 
reissuing them. Consequently, as part of its review process, the 
Commission requests comments on which of these rules, if any, should be 
reissued. Comments are due no later than August 21, 2001. Following 
receipt of comments, the commission will, if warranted, issue a notice 
of proposed rulemaking to revise its rules of practice and procedure.
    Ted P. Gerarden, director of the office of the consumer advocate, 
is designated to represent the interests of the general public in this 
docket. It is ordered:
    1. Interested persons may submit comments by no later than April 
21, 2001, on which of the foregoing rules, if any, should be reissued.
    2. Ted P. Gerarden, director of the office of the consumer 
advocate, is designated to represent the interests of the general 
public in this docket.
    3. The acting secretary shall cause this notice and order 
concerning the rules of practice to be published in the Federal 
Register.

    By the Commission.

    Dated: July 19, 2001.
Garry J. Sikora,
Acting Secretary.
[FR Doc. 01-18454 Filed 7-24-01; 8:45 am]
BILLING CODE 7715-01-M