[Federal Register Volume 66, Number 192 (Wednesday, October 3, 2001)]
[Notices]
[Pages 50480-50482]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-24654]


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POSTAL RATE COMMISSION

[Order No. 1324; Docket No. R2001-1]


Postal Rate and Fee Changes

AGENCY: Postal Rate Commission.

ACTION: Notice and order in omnibus rate and classification case.

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DATES: Notices of intervention, answers to motions, and comments on 
request for expedition due October 24, 2001; prehearing conference on 
October 25, 2001; comments regarding pending cases due October 29, 
2001. See SUPPLEMENTARY INFORMATION section for other dates.

ADDRESSES: Send notices of intervention or comments to the Commission 
in care of the Acting Secretary, 1333 H Street NW., suite 300, 
Washington, DC 20268-0001.
SUMMARY: This document informs the public that the Postal Service has 
filed a request for an expedited decision on omnibus rate, fee and 
classification changes. It identifies overall percentage increases for 
various classes, encourages interested persons to review the filing to 
determine its impact for further details, and takes several preliminary 
procedural steps. It also states that a companion document will contain 
specific proposed rate and fee changes.

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

SUPPLEMENTARY INFORMATION:

I. Introduction

    This notice and order [no. 1323, issued September 26, 2001] informs 
the public that on September 24, 2001, the United States Postal Service 
filed a request with the Postal Rate Commission for an expedited 
recommended decision on proposed changes in essentially all domestic 
postage rates and fees, and in some mail classifications.\1\ It 
summarizes basic features of the filing, including several 
contemporaneous notices and motions; institutes a formal proceeding for 
consideration of the Service's proposals; sets October 25, 2001 as the 
date for a prehearing conference; and takes several other initial 
procedural steps. A companion notice and order presents a complete 
schedule of the Service's proposed rate and fee changes.
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    \1\ Request of the United States Postal Service for a 
recommended decision on changes in rates of postage and fees for 
postal services, September 24, 2001 (Service's request or request).
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    Summary. The request affects virtually all of the Service's 
offerings, and is based on important assumptions regarding costs, 
volumes, pricing and, in some instances, classification changes. It 
includes a proposed 3-cent increase in the First-Class stamp, raising 
the price from 34 cents to 37 cents. The charge for each additional 
ounce of single-piece First-Class Mail would remain at 23 cents.
    The Postal Service has indicated the proposed systemwide average 
increase for all classes of mail and services is 8.7 percent. Average 
increases, by individual class of mail, are 8.2 percent for First-Class 
Mail; 9.7 percent for Express Mail; 13.5 percent for Priority Mail; 
10.0 percent for Periodicals; 7.3 percent Standard Mail; and 8.9 
percent for Package Services. Proposed percentage changes for the 
Special Services vary considerably by individual service.
    Rate changes for a specific piece of mail, bulk mailings, or a 
special service may differ significantly from the systemwide average 
change, as well as from the referenced change for an individual class 
of mail. Many subclasses and services include numerous individual rate 
cells, and the application of various discounts, surcharges, and annual 
mailing permit fees often determines effective percentage changes. 
Interested persons are urged to carefully review the Service's filing 
to determine the proposal's impact.

II. Establishment of Formal Docket

    The Service's request was filed pursuant to sections 3622 and 3623 
of the Postal Reorganization Act (39 U.S.C. 3622, 3623). The Commission 
hereby institutes a proceeding, designated as docket no. R2001-1, 
postal rate and fee changes, to consider the instant request. In the 
course of this proceeding, participants may propose alternatives to

[[Page 50481]]

the Service's proposal, and the Service itself may revise, supplement, 
or amend its initial filing. The Commission's review of the Service's 
request, including any revisions, alternatives proposed by others, or 
options legally within the purview of the Service's request, may result 
in recommendations that differ from those proposed by the Postal 
Service in its initial filing.

III. Filing Contents; Availability, Including Commission Internet 
Posting

    The Service's initial docket no. R2001-1 filing includes its formal 
request (including an explicit request for expedition); seven 
attachments; 44 pieces of testimony (along with related exhibits) 
presented by 40 witnesses; and numerous library references.\2\ Several 
notices and motions accompanied the filing. The Commission has posted 
the request and most related material on its Web site at www.prc.gov. 
Subsequent filings in this case will also be posted on the Web site, if 
provided in electronic format or amenable to conversion, and not 
subject to a valid protective order. Information on how to use the 
Commission's Web site is available online or by contacting the 
Commission's Web master at 202-789-6873.
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    \2\ At the time the case was filed, 138 numerical designations 
were associated with Postal Service library references in this case. 
Of these, two numbers were reserved, 2 library references were 
withheld pending a ruling on protective conditions, and 134 were 
filed with the Commission's docket room.
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    The entire filing and related documents are also available for 
public inspection in the Commission's docket section. The docket 
section's hours are 8 a.m. to 4:30 p.m., Monday through Friday, except 
on federal government holidays. The docket section telephone number is 
202-789-6846.
    Description of attachments. Attachment A to the request identifies 
requested changes in the domestic mail classification schedule (DMCS) 
in legislative format. Attachment B presents proposed rates and fees. 
The Commission is publishing attachment B in a companion notice and 
order. Attachment C, which addresses Commission rule 54(b)(2), 
designates the contents of the domestic mail manual (DMM) as the 
specification of the rules, regulations and practices establishing 
conditions of mailability and standards of service. It also provides a 
copy of the table of contents of the current DMM. The DMM is available 
for review on the Postal Service's Web site, www.USPS.gov.
    Attachment D is the certification, required by rule 54(p), 
regarding the accuracy of cost statements and other documentation 
submitted with the request. Attachment E contains a report of the 
Service's independent auditors, which includes related audited 
financial statements. Attachment F is an index that identifies 
witnesses, the numerical designation of each piece of testimony, 
related exhibits and library references, and attorney contacts. 
Attachment G contains a compliance statement addressing pertinent 
provisions of rules 54 and 64, and refers to a separate notice and 
motion for waiver related to the alternate cost presentation required 
by these rules.
    Expedition. The Service's request includes a request for maximum 
expedition. In particular, the Service suggests that consideration of 
the request could be completed in less than 10 months without 
interfering with the Commission's interests or compromising 
participants' due process rights. It maintains that several benefits 
(primarily associated with implementation) would flow from completing 
the case even one month earlier than the statutory maximum. United 
States Postal Service request for expedition, September 24, 2001.

IV. Notices

    The Service filed two notices addressing administrative matters. 
One lists attorney/witness assignments; expresses the Service's 
intention to hold technical conferences; and states that further 
information on such conferences will be available shortly.\3\ The other 
notice contains a master list of library references. This notice 
identifies the relevant category for each library reference; states 
that no category 4 or 6 library references have been filed; and notes 
that waivers have been requested, in separate motions, for library 
references in categories 1, 2, 3 and 5.\4\ Further, the notice states 
that two library references (USPS-J-94 and USPS-J-99) have not been 
filed, pending a ruling on protective conditions.\5\
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    \3\ Notice of the United States Postal Service regarding 
attorney/witness assignments, September 24, 2001.
    \4\ Library reference categories are identified in Commission 
rule 31(b)(2).
    \5\ Notice of the United States Postal Service of filing of 
master list of library references, September 24, 2001.
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    A third notice, filed in combination with a motion for waiver of 
the Commission's library reference rules, addresses the Service's 
filing of alternate cost information under Commission rule 54(a)(1). 
Notice of the United States Postal Service concerning provision of 
information pursuant to Commission rule 54(a)(1) and motion requesting 
waiver of the Commission rules with respect to category 5 library 
references, September 24, 2001 (Notice and waiver motion on rule 
54(a)(1) requirements).

V. Motions for Waiver of Library Reference Rules

    Four motions seek waiver, to the extent deemed necessary, of the 
Commission's rules on library references. Three deal exclusively with 
waiver.\6\ One is combined with a notice regarding the Service's rule 
54(a)(a) presentation. notice and waiver motion on rule 54(a)(1) 
requirements.
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    \6\ Motion of the United States Postal Service requesting waiver 
of the Commission rules with respect to category 1 libary references 
(noting that 26 of the 29 category 1 references include materials 
available in electronic format); motion of the United States Postal 
Service requesting waiver of the Commission rules with respect to 
category 2 libary references (noting that virtually all category 2 
references include electronic versions); motion of the United States 
Postal Service requesting waiver of the Commission rules with 
respect to category 3 library references (noting that electronic 
versions of most category 3 references cannot be provided because 
the materials have been obtained from an external source only in 
hard-copy versions, or because of manual redactions. These motions 
were filed September 24, 2001.
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    Deadline for answers to motions for waiver of rules on library 
references. Answers to each of the Service's motions for waiver of the 
library reference rules are due no later than October 24, 2001.

VI. Motion for Waiver of Rules 31(k) and 54 for Two Library 
References, and for Protective Conditions for These References

    In a combined pleading, the Postal Service seeks waiver of 
Commission rules 31(k) and 54 for two library references--USPS-LR-J-94 
and USPS-LR-J-99--and application of protective conditions. The 
affected library references relate to costs associated with the Postal 
Service's transportation agreement with FedEx. Motion of United States 
Postal Service for waiver and for protective conditions for library 
references [USPS-LR-J-94 and USPS-LR-J-99] concerning costs associated 
with the FedEx transportation agreement, September 24, 2001 (Motion on 
FedEx-related library references). In this pleading, the Service notes 
that it has filed a redacted version of the transportation agreement 
with the Commission as USPS-LR-J-97. It states that the two library 
references that are the subject of this pleading have been prepared but 
not filed with the Commission, pending a ruling on protective 
conditions.

[[Page 50482]]

    The Service asks that the Commission adopt the protective 
conditions included in its motion so that the library references can be 
produced as soon as possible. Id. at 3. It also asks that the 
Commission issue an order strongly urging all who participate in this 
proceeding to limit their use of any information pertaining to the 
FedEx contract that may surface in this proceeding. Id. at 4.
    Deadline for answers. Answers to the Service's motion on FedEx-
related library references are to be filed no later than October 24, 
2001.

VII. Summary of Impact of Proposed Rate, Fee and Classification 
Changes

    In its request, the Service maintains that without rate and fee 
changes, it will incur a substantial revenue deficiency--of 
approximately $5.275 billion--in the proposed test year, in 
contravention of 39 U.S.C. 3621. (The test year is government fiscal 
year (GFY) 2003.) The Service is seeking a 3 percent allowance for 
contingencies.
    The proposed changes, along with income from sources not subject to 
Commission jurisdiction, are expected to generate a revenue surplus of 
approximately $33.1 million. Request at 1-2. These estimates, as well 
as the proposals underlying them, entail important assumptions 
regarding costs, volumes, and pricing, and some of these assumptions 
differ from those that underlie current rates.
    Classification changes range from minor clarifying revisions to the 
DMCS to more significant worksharing alternatives, such as a pallet 
discount in Periodicals. A variety of classification changes also 
affect Special Services.

VIII. Participation

    The Commission invites participation in this case by interested 
persons. Commission rules provide that a participant may elect full, 
limited or commenter status. Persons electing full or limited status 
shall file notices of intervention conforming to Commission rules no 
later than October 24, 2001. Persons seeking to intervene on a full or 
limited basis after that date must file a motion for intervention. 
Commenters do not need to file intervention notices or motions; 
instead, they may simply direct their comments to the attention of 
Steven W. Williams, acting secretary of the Commission, 1333 H Street 
NW., suite 300, Washington, DC 20268-0001. Commenters may also e-mail 
their position on the Service's request to the Commission at prc-
[email protected].
    Persons unsure of their intervention status under the Commission's 
rules or seeking more information on how to participate in this case 
should contact Shelley S. Dreifuss, acting director of the Commission's 
office of the consumer advocate.

IX. Representation of Interests of the General Public

    The Commission designates Shelley S. Dreifuss, acting director of 
the Commission's office of the consumer advocate, to represent the 
interests of the general public in this proceeding, pursuant to 39 
U.S.C. 3624(a). Ms. Dreifuss shall direct the activities of Commission 
personnel assigned to assist her and, at an appropriate time, provide 
the names of these employees for the record. Neither Ms. Dreifuss nor 
the assigned personnel shall participate in or advise as to any 
Commission decision in this proceeding, other than in their designated 
capacity. Participants shall serve the OCA separately with three copies 
of all filings in addition to, and at the same time, as they effect 
service on the Commission.

X. Prehearing Conference Date; Other Scheduling Matters

    The Commission will hold a prehearing conference on October 25, 
2001, at 10 a.m. in the Commission's hearing room, 1333 H Street NW., 
suite 300, Washington, DC 20268-0001. Participants intending to raise 
topics for discussion at the prehearing conference, other than those 
mentioned in this notice and order, are requested to file a notice to 
that effect no later than October 24, 2001, providing sufficient detail 
to inform the Commission and others of the nature of the topic and its 
potential impact on the proceeding.

Effect of Service's Omnibus Request on Pending Matters

    Several cases were pending at the time the Service filed this 
request. The Commission anticipates addressing the status of these 
cases and their impact on this case at the prehearing conference. 
Participants wishing to comment on the effect of the omnibus filing on 
procedural aspects of these cases also may file a written statement 
with the Commission no later than October 29, 2001.
    It is ordered:
    1. The Commission hereby institutes docket no. R2001-1 for 
consideration of the Service's request for omnibus rate, classification 
and fee changes.
    2. The Commission will sit en banc in this proceeding.
    3. Notices of intervention will be accepted through October 24, 
2001.
    4. 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.
    5. A prehearing conference will be held on Thursday, October 25, 
2001 at 10 a.m. in the Commission's hearing room.
    6. Participants wishing to comment on the effect of docket no. 
R2001-1 on pending cases shall file written comments no later than 
October 29, 2001.
    7. Participants intending to raise topics for discussion at the 
prehearing conference, other than those identified in this notice and 
order, are requested to file written notice of such intention and a 
description of such topics no later than October 24, 2001.
    8. Comments on the United States Postal Service request for 
expedition shall be filed no later than October 24, 2001.
    9. Answers to the motion of the United States Postal Service 
requesting waiver of the Commission rules with respect to category 1 
library references shall be filed no later than October 24, 2001.
    10. Answers to the motion of the United States Postal Service 
requesting waiver of the Commission rules with respect to category 2 
library references shall be filed no later than October 24, 2001.
    11. Answers to the motion of the United States Postal Service 
requesting waiver of the Commission rules with respect to category 3 
library references shall be filed no later than October 24, 2001.
    12. Answers to the motion of United States Postal Service for 
waiver and for protective conditions for library references [USPS-LR-J-
94 and USPS-LR-J-99] concerning costs associated with the FedEx 
transportation agreement shall be filed no later than October 24, 2001.
    13. Answers to the Service's motion requesting waiver of the 
Commission rules with respect to category 5 library references (filed 
in combination with a notice of the United States Postal Service 
concerning provision of information pursuant to rule 54(a)(1), shall be 
filed no later than October 24, 2001.
    14. The [Acting] Secretary shall cause this notice and order to be 
published in the Federal Register.

    Dated: September 27, 2001.
Steven W. Williams,
Acting Secretary.
[FR Doc. 01-24654 Filed 10-2-01; 8:45 am]
BILLING CODE 7710-FW-P