[Federal Register Volume 73, Number 110 (Friday, June 6, 2008)]
[Notices]
[Pages 32366-32367]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-12763]


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POSTAL REGULATORY COMMISSION

 [Docket No. MC2008-4; Order No. 80]


Premium Forwarding Service

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: This document announces a formal docket to consider 
transferring the classification of Premium Forwarding Service from the 
market dominant products list to the competitive products list. It 
solicits comments to assist in this task.

DATES: Comments due June 16, 2008.

ADDRESSES: Submit documents 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: On May 30, 2008, the Postal Service filed a 
request to modify the Mail Classification Schedule transferring Premium

[[Page 32367]]

Forwarding Service (PFS), which is currently classified as a market 
dominant product and part of the Special Services class, to the 
competitive products list.\1\ The Request is made pursuant to 39 U.S.C. 
3642 and 39 CFR 3020.30 et. seq. and includes two attachments.\2\ Rule 
3020.30 allows the Postal Service to request the transfer of a product 
from the market dominant products list to the competitive products 
list. The Postal Service must provide detailed support and 
justification for such a request. 39 CFR 3020.31 and 3020.32. The 
Commission reviews the Request and the comments of interested parties 
under Sec.  3020.34.
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    \1\ Request of United States Postal Service, May 30, 2008 
(Request).
    \2\ Attachment A illustrates the proposed changes to the Mail 
Classification Schedule. Attachment B is a Statement of Supporting 
Justification by Maura Robinson, Manager, Pricing Systems and 
Analysis for the Postal Service.
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    PFS provides residential postal customers with a forwarding service 
for their mail when they are away from their primary residences. Most 
mail from a customer's permanent address is forwarded once a week via 
Priority Mail to the customer's temporary address.\3\ The customer is 
charged a $10 enrollment fee and a weekly fee of $11.95.\4\ PFS is used 
by postal customers with multiple residences, or those on extended 
travel for business, or personal reasons, and recreational vehicle 
owners.
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    \3\ Mail that will be rerouted separately includes mail 
requiring a scan, signature, or additional postage at delivery. 
Express Mail articles are rerouted immediately. Priority Mail 
articles are rerouted separately unless shipping them in the PFS 
package would not delay their delivery. First-Class Mail packages 
that do not fit in the weekly PFS shipment will be rerouted 
separately. Standard Mail pieces will only be included in the PFS 
package if they can be accommodated in the PFS package after 
letters, flats or large envelopes, and magazines have been included. 
Otherwise, Standard Mail pieces will be shipped postage due. Parcel 
Post, Bound Printed Matter, Media Mail, and Library Mail pieces will 
not be included in the PFS package, but will be shipped postage due.
    \4\ PFS is available for a minimum of two weeks and maximum of 
52 weeks. Payment for the entire period of service is due with the 
application.
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    The Postal Service supports its Request with a Statement of 
Supporting Justification from Maura Robinson, Pricing Systems and 
Analysis Manager, at the Postal Service. The Postal Service explains 
that no Governors' Decision was required in this case since no change 
in classification or price is proposed, but merely a transfer of a 
product from one product list to another. Request at 1. The Postal 
Service also asserts that PFS will ``meet the statutory cost coverage 
requirements'' applicable to competitive products under 39 U.S.C. 3633. 
Attachment B at 1-2. The Postal Service further asserts that because 
private alternative options to PFS are available in the form of 
commercial mail forwarding services or informal agreements with friends 
that PFS properly belongs in the competitive product category. Id. at 
3-4. The Postal Service also contends with regard to PFS that it does 
not have the ``ability to set prices substantially above costs, raise 
prices significantly, decrease quality, or decrease output, without 
losing a significant level of business.'' Id. at 3. The Postal Service 
asserts the position that the ``[t]ransfer of PFS to the competitive 
product list will ensure that its revenues are appropriately 
classified, since * * * PFS is provided within a competitive market.'' 
Id. at 5.
    Pursuant to Sec.  3020.33, the Commission provides interested 
persons an opportunity to express views and offer comments on whether 
the planned transfer is consistent with the policies of 39 U.S.C. 3633 
and 3642. Comments are due no later than June 16, 2008.
    Pursuant to 39 U.S.C. 505, Kenneth E. Richardson is appointed to 
serve as officer of the Commission (Public Representative) to represent 
the interests of the general public in the above-captioned docket.
    It is Ordered:
    1. Docket No. MC2008-4 is established to consider the Postal 
Service Request referred to in the body of this order.
    2. Comments are due no later than June 16, 2008.
    3. The Commission appoints Kenneth E. Richardson as Public 
Representative to represent the interests of the general public in this 
proceeding.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Steven W. Williams,
Secretary.
[FR Doc. E8-12763 Filed 6-5-08; 8:45 am]
BILLING CODE 7710-FW-P