[Federal Register Volume 66, Number 192 (Wednesday, October 3, 2001)]
[Notices]
[Pages 50483-50485]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-24639]



[[Page 50483]]

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POSTAL RATE COMMISSION

[Order No. 1323; Docket Nos. R2001-2 and MC2001-2]


Experimental Suspension of Manual Delivery Confirmation Fee

AGENCY: Postal Rate Commission.

ACTION: Notice and order on experimental filing.

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SUMMARY: This document informs the public that the Postal Service has 
proposed temporary experimental suspension of the manual delivery 
confirmation fee used in conjunction with Priority Mail. It notes the 
Service's interest in settlement negotiations. It also establishes 
several procedural deadlines and sets dates for settlement and 
prehearing conferences.

DATES: October 10, 2001: Deadline for notices of intervention, answers 
to motion for waiver of filing requirements, and comments on rule 67-
67d treatment. October 11, 2001: Deadline for issue statements and 
comments on evidentiary hearings. October 12, 2001: Prehearing 
conference (10 a.m.). See Supplementary Information section for 
information on other dates.

ADDRESSES: The prehearing conference will be held in the Commission's 
hearing room, 1333 H Street NW., suite 300, Washington, DC 20268-0001. 
Send comments to the attention of Steven W. Williams, acting secretary, 
1333 H Street NW., suite 300, Washington, DC 20268-0001.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
202-789-6824.

SUPPLEMENTARY INFORMATION:

A. Authority To Consider the Service's Request

    39 U.S.C. 3622 and 3623.

B. Background

    On September 20, 2001, the United States Postal Service filed a 
request with the Postal Rate Commission for a recommended decision on a 
proposed temporary experimental suspension of the fee charged for the 
manual delivery confirmation special service when it is used in 
conjunction with Priority Mail. Request of the United States Postal 
Service for a recommended decision on experimental delivery 
confirmation special service category and fee (``request''). The 
Service's request was filed pursuant to chapter 36 of the Postal 
Reorganization Act, 39 U.S.C. 3601 et seq.
    It was accompanied by contemporaneous motions seeking waiver of 
certain provisions of rules 54 and 64 of the Commission's rules of 
practice \1\ and asking for establishment of procedural mechanisms to 
encourage parties to consider expeditious settlement of issues in this 
proceeding,\2\ as well as by a notice of the Service's intention to 
convene an informal settlement conference on October 11, 2001.\3\ All 
these documents are available for physical inspection in the 
Commission's docket section during regular business hours, and for 
internet access on the Commission's Web site at: http://www.prc.gov 
within the search field ``docket no. MC2001-2.''
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    \1\ Motion of the United States Postal Service for waiver of 
certain provisions of rules 54 and 64, September 20, 2001.
    \2\ Motion of the United States Postal Service to establish 
procedural mechanisms concerning settlement, September 20, 2001.
    \3\ Notice of the United States Postal Service concerning 
settlement discussions, September 20, 2001.
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Brief Description of Request and Its Rationale

    The Service proposes to offer the manual version of delivery 
confirmation service to retail Priority Mail users without charge for a 
period beginning December 1 and ending December 16, 2001. Request, 
attachment B. The current fee for manual delivery confirmation service 
when used in conjunction with Priority Mail is 40 cents. An electronic, 
non-retail version of the service is currently available to Priority 
Mail users at no additional charge. Ibid.
    The Postal Service anticipates two direct benefits from this 
proposal. First, it believes that the experiment would give postal 
customers an incentive to mail packages before the busiest week of the 
holiday mailing season, and thereby reduce demand on its resources 
during the peak period following December 16. Second, the Service 
expects that the proposal would introduce the retail delivery 
confirmation service to customers who otherwise would not be aware of 
it. Additionally, the Service anticipates that its experiment would 
provide valuable experience with more flexible approaches to pricing. 
Request at 2-3.

Significance of Experimental Designation

    By designating its request as one that involves an experimental 
change, the Postal Service signals its intention that the Commission 
apply its expedited rules of practice and procedure for experimental 
changes in Secs. 3001.67 through 3001.67d of title 39, CFR. Request at 
1. In support of this treatment, the Service asserts that the filing is 
consistent with the logic of the experimental rules. Id. at 2. It also 
notes that a preliminary cost and revenue analysis has been prepared 
and included in the testimony supporting its request, and that more 
complete data will be gathered during the term of the experiment, with 
the potential for supporting a request to establish the change on a 
permanent basis. Ibid.
    The proposed temporary suspension of a currently applicable rate 
represents a novel form of experiment under sections 67 through 67d of 
the Commission's rules. In determining whether these procedures are 
appropriate, the Commission will consider the proposed change's 
novelty, magnitude, the ease or difficulty of collecting data, and 
desired duration. 39 CFR 3001.67(b).
    Participants are invited to comment on whether the Postal Service's 
request should be evaluated under rules 67-67d. Comments are due on or 
before October 10, 2001, and participants should be prepared to discuss 
any relevant issues at the prehearing conference.
    Pending a determination on this issue, participants should 
recognize that the motion seeking application of the experimental rules 
may be granted. The Commission notes that its experimental rules 
provide that cases falling within this designation shall be treated as 
subject to the maximum expedition consistent with procedural fairness, 
and that participants will be expected to identify genuine issues of 
material fact at an early stage in this case. 39 CFR 3001.67d. This 
rule also prescribes adoption of a procedural schedule that will allow 
for issuance of a decision not more than 150 days following a 
determination regarding the appropriateness of applying the 
experimental rules or the filing of the request, whichever occurs 
later.
    Under the terms of its request, the Postal Service asks that the 
Commission issue its recommended decision in sufficient time to enable 
it to implement the proposed experiment 72 days after the submission of 
its filing. Achieving the implementation date proposed by the Postal 
Service will require extraordinary expedition, but the Commission will 
endeavor to do so within the bounds of procedural fairness to all 
participants.

Motion for Waiver of Certain Commission Rules

    As noted above, the Service seeks waiver of certain provisions of 
rule 64(h) and related rules that may be deemed applicable to the 
instant

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request. Motion of the United States Postal Service for waiver of 
certain provisions of rules 54 and 64, September 20, 2001 (``motion for 
waiver''). As noted therein, rule 64 (h) provides that when requesting 
a change in the classification schedule, the Postal Service must 
provide certain rule 54 information if the proposed classification 
change results in the following: A change in the rates or fees for any 
existing class or subclass; the establishment of a new class or 
subclass for which rates are to be established; a change in the 
relationship of costs to revenues for any class or subclass; or a 
change in the relationship of total Postal Service costs to total 
revenues.
    The Service submits that the changes proposed in its request do not 
significantly change any of the referenced rates or cost-revenue 
relationships, except in the delivery confirmation special service. 
Motion for waiver at 1-2. Further, even if the experiment is 
implemented, the Service states that it expects that delivery 
confirmation service will cover its volume-variable costs and make a 
contribution to institutional costs. Id. at 2.
    The Service also presents reasons why certain criteria in rule 
64(h) should not apply to this request, and further contends that none 
of the rule 54 requirements should be found to apply. Id. at 2-3. It 
asserts that all of the rule 54 requirements should therefore be 
waived, but also undertakes to provide certain responsive rule 54 
information in an attempt to cooperate and assist with consideration of 
the request. Id. at 3. Interested parties are advised to review the 
Service's motion for waiver for additional information concerning the 
bases for its request.

Proposed Procedural Mechanisms and Limitation of Issues

    In its motion to establish procedural mechanisms concerning 
settlement, the Service asks the Commission to adopt procedural 
mechanisms it suggests to encourage participants to reach an 
expeditious resolution of issues in this proceeding through a 
stipulation and agreement, which the Service proposes and appends to 
its motion. Motion of the United States Postal Service to establish 
procedural mechanisms concerning settlement, September 20, 2001. In a 
separate notice, the Service states its intention to convene an 
informal, off-the-record settlement conference among all participants 
of record in this proceeding on Thursday, October 11, 2001, at 2 p.m. 
Notice of the United States Postal Service concerning settlement 
discussion, September 20, 2001.
    In its motion, the Service notes that its proposal is time-
sensitive, and recognizes that the timing of its request ``puts a 
premium on the Commission's ability to expedite this proceeding in a 
manner that respects the due process rights of those who may 
intervene'' in the case. Motion to establish procedural mechanisms at 
1-2. At the same time, the Service submits that the ``very limited 
scope and simplicity'' of its proposal offers an opportunity for the 
parties to proceed toward a resolution of any material issues by means 
of a stipulation and agreement. Id. at 2.
    In order to proceed with maximum expedition to this resolution, the 
Service asks the Commission to issue an order at the outset of this 
case that would establish procedures to govern its conduct. The Service 
anticipates that any discovery regarding the proposed experiment might 
be relatively limited in duration and scope, and suggests that 
participants be allowed to begin their discovery immediately upon 
intervention. Ibid. This is a useful suggestion, and the Commission 
shall so order. Additionally, the Service proposes the adoption of 
special procedures that would:
    (1) Enter the Postal Service's request (with associated 
attachments), the testimony and library reference filed with this 
request, and the stipulation and agreement into the record in this 
docket;
    (2) Give parties until October 10, 2001, to intervene and October 
17, 2001, to complete discovery;
    (3) Require that objections to any discovery request be filed 
within 3 workdays days after whichever comes later, the date on which 
such a request is filed with the Commission or posted on the Commission 
web site;
    (4) Require that all answers to discovery requests be filed no 
later than five workdays after such posting;
    (5) Give notice of a formal prehearing conference to be convened on 
October 15, 2001, at 1:00 p.m.;
    (6) Make the Commission hearing room available to the Postal 
Service and the participants on that date at 10:30 a.m. as the venue 
for an informal off-the-record meeting to discuss the proposed 
stipulation and agreement and related matters in advance of the pre-
hearing conference;
    (7) Provide notice to intervenors that, if they wish to contest the 
PostalService's request and the proposed stipulation and agreement, 
they must, by October 17, 2001, file a statement of their intention to 
do so. Any such statement should identify with specificity the issues 
contested, and state whether the intervenor intends to offer evidence 
on any such issues; and
    (8) Establish subsequent procedures to resolve any genuine issues 
of material fact should a participant contest the Postal Service's 
request. Motion at 3-5.
    The Commission will adopt some of the suggested procedural 
mechanisms in this order, but finds insufficient justification for 
others. For example, receiving the Postal Service's request and 
supporting documents into the record at this time, prior to any 
opportunity for exploration by potentially interested parties, would be 
premature. Additionally, more flexibility may be required in crafting 
procedures for resolving any factual issues that may be identified, and 
thereafter reaching an expeditious decision on the Service's request.
    At this juncture, the Commission will undertake to maximize 
expedition consistent with procedural fairness by providing for prompt 
intervention, expedited discovery if participants so desire, and early 
identification of any legitimate issues of material fact that may 
require resolution, either through written discovery efforts or in 
hearings.

Intervention

    Those wishing to be heard in this matter are directed to file a 
written notice of intervention with Steven W. Williams, acting 
secretary of the Commission, 1333 H Street NW., suite 300, Washington, 
DC 20268-0001, on or before October 10, 2001. Notices should indicate 
whether participation will be on a full or limited basis. See 39 CFR 
3001.20 and 3001.20a.

Discovery and Limitation of Issues

    In order to identify and address any factual issues in this case 
expeditiously, parties may initiate any desired discovery on their 
intervention. As the Postal Service requests, objections to any 
discovery request shall be filed within three workdays of its filing or 
posting on the PRC website, whichever occurs later. All answers to 
discovery requests shall be filed no later than 7 days following their 
posting on the Commission's web site.
    Rule 67a provides a procedure for limiting issues in experimental 
cases. In this proceeding, the Postal Service's proposed experiment may 
involve issues arising under the criteria of 39 U.S.C. 3622(b), 
3623(c), or other guiding provisions in the Postal Reorganization Act. 
To enable the Commission and participants to evaluate whether there are 
genuine issues of fact requiring resolution in this proceeding, parties

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shall file statements of any such issues they believe to exist by 
October 11, 2001, and be prepared to discuss those statements in the 
prehearing conference to be held the following day.

Need for Hearing

    A decision on whether there is a need for evidentiary hearings, and 
the scope of any such hearings, cannot be made at this time. Comments 
on this matter, and other procedural issues raised by the Service's 
request, should be filed no later than October 11, 2001, and 
participants should be prepared to discuss these matters at the 
prehearing conference.

Representation of the General Public

    In conformance with Sec. 3624(a) of title 39, the Commission 
designates Shelley S. Dreifuss, acting director of the Commission's 
office of the consumer advocate (OCA), to represent the interests of 
the general public in this proceeding. Pursuant to this designation, 
Ms. Dreifuss will direct the activities of Commission personnel 
assigned to assist her and, upon request, will supply their names for 
the record. Neither Ms. Dreifuss nor any of the assigned personnel will 
participate in or provide advice on any Commission decision in this 
proceeding. The OCA shall be separately served with three copies of all 
filings, in addition to and at the same time as, service on the 
Commission of the 24 copies required by Commission rule 10(d) [39 CFR 
3001.10(d)].

Prehearing Conference

    A prehearing conference will be held Friday, October 12, 2001, at 
10 a.m. in the Commission's hearing room. At the conference, the Postal 
Service will be expected to report on the progress made in the off-the-
record settlement conference it has announced for the preceding day. 
The Service and other participants should also be prepared to address 
the procedural matters discussed above.

Ordering Paragraphs

    It is ordered:
    1. The Commission establishes docket nos. R2001-2 and MC2001-2, 
preliminarily designated as experimental suspension of fee for manual 
delivery confirmation category, to consider the request referred to in 
the body of this order.
    2. The Commission will sit en banc in this proceeding.
    3. The deadline for filing notices of intervention is Wednesday, 
October 10, 2001.
    4. Answers to the Service's motion for waiver of certain filing 
requirements and comments on the appropriateness of considering the 
request under sections 67 through 67d of the rules of practice are due 
no later than October 10, 2001.
    5. Written discovery pursuant to rules 26-28 may be undertaken upon 
intervention.
    6. Objections to written discovery requests shall be filed within 3 
workdays, as specified in the body of this order.
    7. The Service shall respond to discovery requests within 7 days, 
as specified in the body of this order.
    8. Interested parties shall file statements of issues they perceive 
in the case, in accordance with 39 CFR 3001.67a(b), and comments on the 
need for evidentiary hearings, and the scope of any such hearings, by 
October 11, 2001.
    9. A prehearing conference will be held Friday, October 12, 2001, 
at 10 a.m. in the Commission's hearing room.
    10. Shelley S. Dreifuss, acting director of the Commission's office 
of the consumer advocate, is designated to represent the interests of 
the general public in this proceeding.
    11. The acting secretary shall arrange for publication of this 
notice and order in the Federal Register.

    Dated: September 27, 2001.
Steven W. Williams,
Acting Secretary.
[FR Doc. 01-24639 Filed 10-2-01; 8:45 am]
BILLING CODE 7710-FW-P