[Federal Register Volume 72, Number 42 (Monday, March 5, 2007)]
[Notices]
[Pages 9786-9787]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-3823]


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POSTAL REGULATORY COMMISSION

[Docket No. MC2006-7; Order No. 4]


Stamped Stationery and Cards

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: This document informs the public that the Postal Service 
proposes classification and fees for certain stamped stationery and 
cards. It identifies preliminary procedural steps, including the 
likelihood of a settlement teleconference. This information provides 
interested persons with an opportunity to participate in this case.

DATES: March 22, 2007: Deadline for intervention and responses to 
waiver motion; April 3, 2007: Prehearing conference, 10 a.m. in the 
Commission's hearing room.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at http://www.prc.gov.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
202-789-6820 and [email protected].

SUPPLEMENTARY INFORMATION: Regulatory History, 71 FR 51651 (August 30, 
2006).

I. Background

    In Order No. 1475, the Commission found stamped stationery to be a 
postal service and concurrently established Docket No. MC2006-7 for the 
purpose of receiving a request from the Postal Service establishing a 
classification and fee schedule for stamped stationery.\1\ On February 
22, 2007, the Postal Service filed a request for a recommended decision 
to establish classifications and fees for Premium Stamped Stationery 
(PSS) and Premium Stamped Cards (PSC).\2\
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    \1\ See PRC Order No. 1475, August 24, 2006 and PRC Order 
No.1476, August 24, 2006.
    \2\ Request of the United States Postal Service for a 
Recommended Decision to Establish Classifications and Fees for 
Premium Stamped Stationery and Premium Stamped Cards, February 22, 
2007 (Request).
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    In contemporaneous filings, the Postal Service submitted a 
conditional motion for waiver of the filing requirements \3\ and a 
notice of a settlement teleconference.\4\ The Request, accompanying 
testimony of witness Yeh (USPS-T-1), and related material are available 
for review in the Commission's docket room during regular business 
hours. They may also be accessed electronically, via the Internet, on 
the Commission's Web site (http://www.prc.gov).
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    \3\ Statement of the United States Postal Service Concerning 
Compliance with Filing Requirements and Conditional Motion for 
Waiver, February 22, 2007 (Motion for Waiver).
    \4\ Notice of Settlement Teleconference, February 22, 2007 
(Notice).
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II. Proposed Classifications

    Premium stamped stationery is sold by the Postal Service in pads 
consisting of 12 sheets of quality stock paper, featuring a design and 
imprinted with matching postage stamps. Each pre-stamped sheet has room 
for the name and address of the recipient and, on the reverse side, 
space for writing a message. Each sheet is designed to be folded, 
sealed, and mailed. Request at 1.
    Premium stamped cards are sold by the Postal Service in booklets or 
packets, consisting of 10 to 20 cards of quality stock paper, imprinted 
with postage and featuring designs related to the imprinted postage. 
Each pre-stamped card has room for the name and address of the 
recipient on the right-hand side and space for a message on the left. 
The theme of the card adorns the reverse side of the card. Id. at 2.
    The Postal Service denotes each of these services as ``premium'' to 
distinguish them from more utilitarian stamped envelopes and stamped 
cards that are already in the Domestic Mail Classification Schedule 
(DMCS). DMCS 961 and 962. The Postal Service proposes to amend the DMCS 
with separate provisions and fee schedules for PSS and PSC. See 
Request, Attachments A and B.
    The Postal Service proposes, as more fully explained in the 
testimony of witness Yeh (USPS-T-1 at 2-6), a fee structure 
establishing a range of fees between minimum and maximum levels tied to 
the then-current First-Class Mail letter or card rate.\5\ The Postal 
Service proposes to allow the range to change automatically with and in 
direct proportion to future changes in the applicable First-Class Mail 
letter or card rate. Under the proposal, the Postal Service would be 
authorized to change the fee within the range upon public notice.
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    \5\ The proposed minimum fee for PSS is 2 times the First-Class 
Mail letter rate and for PSC is 1 times the First-Class Mail card 
rate. The proposed maximum fee for PSS is 3 times the First-Class 
Mail letter rate. USPS-T-1, Attachment A, workpaper PSSPSC-WP1. The 
proposed maximum fee for PSC apparently is 3 times the First-Class 
Mail card rate. Id. at 10, Attachment A, workpapers PSSPSC-WP1 and 
WP2; but see USPS-T-1 at 5, lines 1-3. The Postal Service should 
reconcile these statements.
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    The Postal Service notes that in Order No. 1475 the Commission 
identified stamped stationery as a specialty product that may justify a 
novel pricing approach, including the possibility of rate bands 
consisting of minimum and maximum fees with the Postal Service 
authorized to flex the fee within that range upon public notice. 
Request at 2-3; see also PRC Order No. 1475, supra, at 13-14. The 
Postal Service indicates that its proposed fee structure generally 
follows the approach suggested illustratively by the Commission. 
Request at 2.

III. Conditional Request for Waiver of Filing Requirements

    In support of its Request, the Postal Service states that its 
Compliance Statement (Attachment E to the Request) identifies 
information contained in its testimony and supporting documentation 
intended to satisfy the filing requirements of rules 54 and 64 of the 
Commission's Rules of Practice and Procedure. Request, Attachment E at 
1.\6\ The Postal Service notes that it has incorporated by reference 
pertinent materials from Docket No. R2006-1, the most recent omnibus 
rate case, and material periodically filed with the Commission. It 
asserts that that incorporation satisfies the filing requirements 
pertaining to classes of mail and special services. Id.
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    \6\ Motion for Waiver at 1. The Motion for Waiver also 
references rule 162, which concerns market tests. That reference is 
inapposite.
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    In addition, the Postal Service contends that the establishment of 
classifications and fees for Premium Stamped Stationery and Premium 
Stamped Cards represents new DMCS subsections and fees, providing an 
option for customers with very little impact on postal costs, volume, 
and revenues. It also asserts that there is substantial overlap between 
information sought in the general filing requirements and the materials 
provided in Docket No. R2006-1. Id. at 1-2.
    Alternatively, the Postal Service requests a waiver of certain 
filing requirements if the Commission concludes that the materials 
incorporated by reference are not sufficient to satisfy those 
requirements. Id. at 3.\7\
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    \7\ In support of its conditional motion, the Postal Service 
cites 39 CFR 3001.54(r), 3001.64(h)(3), and 3001.67a. The reference 
to rule 67a, which concerns experimental changes, is inapposite.
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IV. Notice of Settlement Teleconference

    In its Request, the Postal Service indicates that despite its best 
intentions

[[Page 9787]]

it was unable to engage in any pre-filing consultations with 
participants due to the press of other business. The Postal Service 
states, however, that it informed participants (from Docket No. C2004-
3) of its intention to file this Request, that it is committed to 
engage in settlement discussions, and that it encouraged participants 
to engage in informal requests for additional information before 
commencing formal discovery to develop a record in pursuit of a 
mutually agreeable settlement agreement. Request at 3-4.
    The Postal Service reads Order No. 1475 as authorizing settlement 
procedures in this proceeding and thus has not requested that such 
procedures be established. Id. at 4. Instead, the Postal Service filed 
a Notice of Settlement Teleconference advising participants to inform 
it of their availability to participate in such a conference during the 
period March 5 through March 23, 2007. Notice at 1.

V. Commission Response

    Intervention. Order No. 1476 set the due date for notices of 
intervention at 28 days following submission of the Postal Service's 
Request. Since the Request was filed February 22, 2007, notices of 
intervention from any interested persons are due no later than March 
22, 2007. The notice of intervention shall be filed electronically via 
the Commission's Web site (see Filing Online), unless a waiver is 
obtained for hardcopy filing. 39 CFR 3001.9(a) and 10(a). Notices 
should indicate whether participation will be on a full or limited 
basis. See 39 CFR 3001.20 and 3001.20a. No decision has been made at 
this point on whether a hearing will be held in this case.
    Settlement. In Order No. 1475, the Commission suggested that the 
Postal Service may wish to engage participants in a pre-filing dialogue 
``in an effort to fashion a broadly acceptable pricing approach.'' PRC 
Order No. 1475 at 15 (footnote omitted). As noted above, the Postal 
Service's efforts to do so were thwarted by the press of other 
business. Its proposal to conduct a settlement teleconference is 
reasonable, particularly given the dispersed geographic location of the 
participants.
    The Commission appoints Postal Service counsel as settlement 
coordinator. In this capacity, Postal Service counsel shall file 
periodic reports on the status of settlement discussions. At a minimum, 
a periodic report on the status of settlement discussions shall be 
filed no later than two business days prior to the prehearing 
conference scheduled herein. The Commission authorizes the settlement 
coordinator to hold one or more settlement teleconferences from March 
5-28, 2007. In addition, the Commission will make its hearing room 
available for conducting settlement conferences. Authorization of 
settlement discussions does not constitute a finding on the necessity 
of hearings in this case.
    Prehearing conference. A prehearing conference will be held April 
3, 2007, at 10 a.m. in the Commission's hearing room. Participants 
shall be prepared to identify any issue(s) that would indicate a need 
to schedule a hearing, along with other matters referred to in this 
order.
    Conditional Motion for Waiver. Participants may comment on the 
Postal Service's conditional motion to waive certain filing 
requirements. Responses to the Postal Service's Motion for Waiver are 
due on or before March 22, 2007.
    Representation of the general public. In initiating this 
proceeding, the Commission designated 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. See PRC Order 
No. 1476 at 2-3.
    Administrative matter. The docket name has been modified to reflect 
the inclusion of stamped cards in the Postal Service's Request.

Ordering Paragraphs

    It is ordered:
    1. The Commission will consider the Postal Service Request referred 
to in the body of this order in Docket No. MC2006-7.
    2. The Commission will sit en banc in this proceeding.
    3. Postal Service counsel is appointed to serve as settlement 
coordinator in this proceeding.
    4. The deadline for filing notices of intervention is March 22, 
2007.
    5. A prehearing conference will be held April 3, 2007 at 10 a.m. in 
the Commission's hearing room.
    6. Responses to the Postal Service's Motion for Waiver of certain 
filing requirements are due on or before March 22, 2007.
    7. The Secretary shall arrange for publication of this notice and 
order in the Federal Register.

    By the Commission.

Steven W. Williams,
Secretary.
[FR Doc. E7-3823 Filed 3-2-07; 8:45 am]
BILLING CODE 7710-FW-P