[Federal Register Volume 69, Number 229 (Tuesday, November 30, 2004)]
[Notices]
[Pages 69640-69641]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-26354]


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POSTAL RATE COMMISSION

[Docket No. MC2005-1; Order No. 1425]


Experimental Premium Forwarding Service

AGENCY: Postal Rate Commission.

ACTION: Notice and order.

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SUMMARY: This document announces a case involving a proposed two-year 
experiment that will test demand for a new Premium Forwarding Service 
(PFS). This service entails periodic reshipment of a customer's mail 
from a permanent address to a temporary address. Additional fees are 
involved. Conducting an experiment will allow the Postal Service to 
determine whether PFS should be made available on a permanent basis.

DATES: See SUPPLEMENTARY INFORMATION for dates.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at http://www.prc.gov. Hard copy submissions, when 
allowed, should be sent to the attention of Steven W. Williams, 
Secretary of the Commission, 1333 H Street NW., Suite 300, Washington, 
DC 20268-0001.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
at 202-789-6818.

SUPPLEMENTARY INFORMATION:
    Notice is hereby given that on November 19, 2004, the 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 a proposed experimental PFS.\1\ The 
Postal Service proposes to implement the requested experimental service 
through additions to the Domestic Mail Classification Schedule (DMCS) 
and associated new fees. The request includes attachments and is 
supported by the testimony of four witnesses and a library reference. 
It is on file in the Commission's docket room for inspection during 
regular business hours and is available on the Commission's Home page 
at http://www.prc.gov.
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    \1\ Request of the United States Postal Service for a 
Recommended Decision on Experimental Premium Forwarding Service, 
November 19, 2004 (Request).
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    Description of the request. The proposed experiment would introduce 
a new PFS, under which the Postal Service would offer to reship 
periodically all of a customer's incoming mail from a permanent address 
to a temporary address to which the customer has moved. For this 
service, the Postal Service would charge a $10.00 enrollment fee plus a 
fixed per-shipment charge of $10.00. Such PFS shipments would be sent 
via Priority Mail service once a week to the customer's temporary 
address. The Postal Service anticipates that the experimental PFS 
service will be an attractive supplement to existing options for 
customers who relocate temporarily because it would satisfy demand for 
service features not currently available through those options.
    Experimental designation. The Postal Service seeks consideration of 
its proposal under the Commission's expedited rules of practice and 
procedure applicable to experimental mail classification changes, 39 
CFR 3001.67 through 3001.67d. In support of this approach, it cites the 
need to collect currently unavailable data to test its assumptions 
about the projected average weight and distance of PFS shipments, as 
well as its estimates of demand for the service. According to the 
Service, a two-year experimental trial of PFS service would enable it 
to collect, aggregate and analyze such data, so that a request for a 
permanent classification change can be prepared if the data support 
such a request. Further, the Service anticipates that a two-year 
experiment will allow customers sufficient time to determine whether 
PFS service meets their demands.
    Compliance statement and conditional motion for waiver. In a 
pleading \2\ filed contemporaneously with its Request, the Postal 
Service describes its approach to satisfying the filing requirements 
contained in pertinent provisions of the rules of practice, and asks 
the Commission to accept that approach for the purposes of this 
proceeding. Generally, the Postal Service states that it developed 
certain materials specifically for the PFS proposal, but also 
supplemented this information with documentation it submitted in the 
most recently concluded omnibus rate proceeding (Docket No. R2001-1), 
as well as with material it periodically submits to the Commission. The 
Service believes that incorporation of these supplemental materials 
meets most of the specific filing requirements of the rules of 
practice. Alternatively, if the Commission concludes that the 
incorporated materials are insufficient, the Postal Service moves for 
waiver of the pertinent provisions.
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    \2\ Statement of the United States Postal Service Concerning 
Compliance with Filing Requirements and Conditional Motion for 
Waiver, November 19, 2004.
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    Proposed settlement procedures. The Postal Service's November 19, 
2004, filing also included a request for establishment of settlement 
procedures in this proceeding.\3\ The Service states that the proposed 
experimental PFS classification is simple, is supported by 
straightforward testimony, and would be of a limited scope and 
duration. The Service also opines that the proposal's benefits to 
customers, its minor financial impact, and the fact that all its costs 
are volume-variable may increase the likelihood of settlement. In view 
of this prospect, the Postal Service asks that the Commission 
facilitate a possible settlement by making its hearing room available 
for a settlement conference prior to the prehearing conference in this 
docket; appoint its lead counsel to serve as settlement coordinator; 
and thereby provide an opportunity for its

[[Page 69641]]

counsel to report on the likelihood of settlement during the prehearing 
conference.
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    \3\ United States Postal Request for Establishment of Settlement 
Procedures, November 19, 2004.
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    Further procedures. Those wishing to be heard in this matter may 
choose from among the modes of participation specified in sections 20 
through 20b of the Commission's rules of practice (39 CFR 3001.20, -20a 
and -20b). Notices of intervention under sections 20 and 20a will be 
due on December 20, 2004, and shall be filed using the Filing Online 
system at the Commission's Web site (http://www.prc.gov) unless a 
waiver is obtained for hardcopy filing. See sections 9(a) and 10(a) of 
the rules (39 CFR 3001.9a and 10a). Notices should indicate whether 
participation will be on a full or limited basis. Comments pursuant to 
section 20b may either be filed online as described in section 20b(a) 
or submitted as a hardcopy letter to the Secretary of the Commission, 
Steven W. Williams, 1333 H Street, NW., Suite 300, Washington, DC 
20268-0001.

Experimental Status

    At this stage of the proceeding, the Commission has docketed the 
instant filing as an experimental case for administrative purposes. 
Formal status as an experiment under Commission rules 67-67d, which the 
Service makes clear it seeks for this Request, is based on an 
evaluation of factors such as the proposal's novelty, magnitude, ease 
or difficulty of data collection, and duration. A final determination 
regarding the appropriateness of accepting the filing as an 
experimental case and application of Commission rules 67-67d will not 
be made until participants have had an adequate opportunity to comment. 
Participants are invited to file comments on this matter by December 
20, 2004.
    Section 67a of the rules specifies procedures for the limitation of 
issues in considering requests that involve classification changes that 
are properly designated as experimental. Pursuant to section 67a(b) [39 
CFR 3001.67a(b)], participants are directed to submit statements in 
their notices of intervention indicating whether they seek a hearing 
and, if so, to identify with particularity any genuine issues of 
material facts believed to warrant such a hearing.
    The Commission grants the Service's Request for Establishment of 
Settlement Procedures and appoints Postal Service lead counsel as 
settlement coordinator. In this capacity, counsel for the Service shall 
file periodic reports on the status of settlement discussions, with the 
first report to be submitted orally during the prehearing conference 
scheduled below. The Commission further authorizes the settlement 
coordinator to hold settlement and/or technical conferences, at the 
convenience of participants, anytime between January 3 and 6, 2005.
    Prehearing conference. A prehearing conference will be held in this 
docket on January 7, 2005. Participants shall be prepared to address 
whether there are issues of material fact requiring a hearing in this 
matter, in order to inform the Commission's determination regarding the 
limitation of issues pursuant to section 67a(c) of the rules of 
practice [39 CFR 3001.67a(c)].
    Public participation. In conformance with section 3624(a) of title 
39, the Commission designates Shelley S. Dreifuss, 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.

Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. MC2005-1, Experimental 
Premium Forwarding Service, to consider the Postal Service Request 
described 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 December 20, 
2004.
    4. Notices of intervention shall indicate whether the participant 
seeks a hearing and identify with particularity any genuine issues of 
material fact that warrant a hearing.
    5. The deadline for answers to the Statement of the United States 
Postal Service Concerning Compliance with Filing Requirements and 
Conditional Motion for Waiver, filed November 19, 2004, is December 20, 
2004.
    6. The Commission grants the United States Postal Service Request 
for Establishment of Settlement Procedures, November 19, 2004, under 
the terms described in the body of this ruling.
    7. The Commission appoints Postal Service lead counsel to serve as 
settlement coordinator in this proceeding.
    8. The deadline for comments on the Postal Service's request for 
treatment of its Request as experimental under Commission rules 67-67d 
is December 20, 2004.
    9. The Commission will make its hearing room available for 
settlement and/or technical conferences during the period of January 3 
through 6, 2005.
    10. A prehearing conference will be held January 7, 2005 at 10 a.m. 
in the Commission's hearing room.
    11. Shelley S. Dreifuss, Director of the Commission's Office of the 
Consumer Advocate, is designated to represent the interests of the 
general public in this proceeding.
    12. The Secretary shall arrange for publication of this notice and 
order in the Federal Register.

    By the Commission.
Steven W. Williams,
Secretary.
[FR Doc. 04-26354 Filed 11-29-04; 8:45 am]
BILLING CODE 7710-EW-P