[Federal Register Volume 73, Number 114 (Thursday, June 12, 2008)]
[Notices]
[Pages 33465-33466]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-13161]


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POSTAL REGULATORY COMMISSION

[Docket Nos. CP2008-8, CP2008-9 and CP2008-10; Order No. 81]


Global Plus Postal Contracts

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: This document announces the filing of three Postal Service 
notices regarding Global Plus contracts and related Commission review. 
Publication of this document satisfies procedural requirements. It also 
allows interested persons an opportunity to comment.

DATES: Postal Service filings are due June 13, 2008. Public comments 
are due June 19, 2008.

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: On June 2, 2008, the Postal Service filed 
three notices, which have been assigned to Docket Nos. CP2008-8, 
CP2008-9 and CP2008-10, announcing prices and classification changes 
for competitive products not of general applicability. The notice in 
Docket No. CP2008-8 informs the Commission that ``the Governors have 
established prices and classifications for competitive products not of 
general applicability for Global Plus Contracts.'' \1\ The Postal 
Service attached a revision of the draft Mail Classification Schedule 
(MCS) (section 2610.5) concerning Global Plus contracts to the 
Notice.\2\ Docket No. CP2008-8 has been filed pursuant to 39 U.S.C. 
3632(b)(3) and 39 CFR 3015.5 and 3020.90. In support of this docket, 
the Postal Service has also filed materials under seal, including the 
Governors' decision. The Postal Service claims that ``[c]ontract prices 
are highly confidential in the business world * * * [and that its] 
ability * * * to negotiate individual contracts would be severely 
compromised if prices for these types of agreements were publicly 
disclosed.'' Notice at 1-2.
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    \1\ Notice of United States Postal Service of Governors' 
Decision Establishing Prices and Classifications for Global Plus 
Contracts, June 2, 2008, at 1 (Notice).
    \2\ The draft MCS remains under review. The Commission 
anticipates providing interested persons an opportunity to comment 
on the draft MCS in the near future. Modifications to the MCS, such 
as proposed in Docket No. CP2008-8, should, in the future, be filed 
in the dockets designated by the ``MC'' prefix. Contracts executed 
pursuant to those requested classifications are appropriately filed 
as ``CP'' dockets.
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    The notices in Docket Nos. CP2008-9 and CP2008-10 announce 
individual negotiated service agreements, namely, specific Global Plus 
contracts that the Postal Service has entered into with individual 
mailers.\3\ In support of these dockets, the Postal Service has also 
filed materials, including the contracts and

[[Page 33466]]

supporting materials, under seal.\4\ The Postal Service asserts that 
``[t]he names of customers who enter into respective contracts and the 
related contract prices are highly confidential business information.'' 
Docket No. CP2008-9 Pricing Notice at 1; Docket No. CP2008-10 Pricing 
Notice at 1.
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    \3\ Docket No. CP2008-9, Notice of United States Postal Service 
Filing of a Global Plus Contract, June 2, 2008 (Docket No. CP2008-9 
Pricing Notice); Docket No. CP2008-10, Notice of United States 
Postal Service of Filing a Global Plus Contract, June 2, 2008 
(Docket No. CP2008-10 Pricing Notice).
    \4\ The Postal Service's filings under seal did not comply with 
the Commission's procedural rules. The Postal Service is reminded 
that a cover sheet must be attached to all documents being filed 
under seal. The cover sheet must contain the caption and title 
pursuant to 39 CFR 3001.11(a). Consistent with previous practice, 
documents filed under seal should contain a statement similar to the 
following: ``CONFIDENTIAL--DOCUMENT FILED UNDER SEAL.'' See, e.g., 
Docket No. MC2005-3, P.O. Ruling MC2005-3/2, at Attachment para. 10.
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    The Postal Service's filings in these dockets are related. Docket 
No. CP2008-8 establishes, in essence, a shell classification, while 
Docket Nos. CP2008-9 and CP2008-10 are specific agreements negotiated 
pursuant to the conditions of the shell classification. Given this 
interrelationship, the Commission reviews these proceedings together in 
this order.\5\
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    \5\ While this order treats these proceedings together due to 
their interrelated nature, future filings should be made in the 
docket related to the issues being addressed.
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    In Order No. 43, the Commission issued regulations establishing a 
modern system of rate regulation, including a list of competitive 
products. PRC Order No. 43, October 29, 2007, 3061, 4013. Among other 
things, the Commission determined that each negotiated service 
agreement would initially be classified as a separate product. The 
Commission also acknowledged, however, the possibility of grouping 
functionally equivalent agreements as a single product if they exhibit 
similar cost and market characteristics. Id. 2177 and 3001. In its 
filings, the Postal Service does not contend or provide support for the 
proposition that these two agreements are premised on similar cost and 
market characteristics. Thus, the specific Global Plus agreements filed 
in Docket Nos. CP2008-9 and CP2008-10 will be classified as new 
products.
    As noted above, the Postal Service filed all three above-captioned 
dockets pursuant to 39 CFR 3015.5.\6\ Recognizing that the Postal 
Service's filings in these proceedings represent a series of recent 
filings involving competitive rates not of general applicability under 
39 U.S.C. 3632(b)(3), the Commission will proceed as if the Global Plus 
negotiated service agreements also had been filed pursuant to 39 CFR 
part 3020, subpart B.\7\ As a consequence, the Commission will also 
review the dockets pursuant to 39 CFR 3020.34. Because the Commission 
in its own discretion will review these dockets under 39 CFR 3020.34, 
the Postal Service may, if it wishes to do so, supplement the materials 
already filed with the Commission.\8\
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    \6\ Docket No. CP2008-8 was also filed pursuant to 39 CFR 
3020.90.
    \7\ In Order Nos. 78 and 79, the Commission provided guidance on 
the filing procedures that should be used for such filings in the 
future. See PRC Order No. 78 at 3, n.6.
    \8\ The Commission characterizes the Governors' decision and 
associated materials filed in Docket No. CP2008-8 as material that 
supports the specific negotiated service agreements filed in Docket 
Nos. CP2008-9 and CP2008-10.
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    In addition, the Commission directs the Postal Service to identify 
and list any contracts currently in existence (and their respective 
expiration dates) that would no longer qualify as Global Plus contracts 
under proposed revised section 2610.5 to the draft MCS attached to the 
Notice in Docket No. CP2008-8. The Commission also directs the Postal 
Service to provide a detailed justification for why it believes that 
Global Plus contracts' expiration dates (without disclosing the 
identity of the customers) should not be made publicly available. The 
Postal Service must also address the reasons why the entire Governors' 
decision is considered to be highly confidential or otherwise entitled 
to be filed under seal.
    Under the negotiated service agreements at issue, mailers would pay 
discounted rates prior to necessary regulatory approval for such rates 
subject to subsequent collection of the full rate if regulatory 
approval is not obtained. The Postal Accountability and Enhancement Act 
does not appear to contemplate this arrangement for new products. See 
39 U.S.C. 3642(e). The Postal Service should address this issue in its 
comments.
    Answers to the Commission's questions and any supplemental 
materials that the Postal Service plans to provide are due no later 
than June 13, 2008.
    Interested persons may express views and offer comments on whether 
the planned changes are consistent with the policies of 39 U.S.C. 3632, 
3633, or 3642. Comments are due no later than June 19, 2008.
    Pursuant to 39 U.S.C. 505, Paul L. Harrington is appointed to serve 
as officer of the Commission (Public Representative) to represent the 
interests of the general public in the above-captioned dockets.

It is ordered:
    1. Responses to the Commission's questions set forth in the body of 
this order and any supplemental materials that the Postal Service 
wishes to provide are due no later than June 13, 2008.
    2. Comments by interested persons on issues in these proceedings 
are due no later than June 19, 2008.
    3. The Commission appoints Paul L. Harrington as Public 
Representative to represent the interests of the general public in 
these proceedings.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Steven W. Williams,
Secretary.
 [FR Doc. E8-13161 Filed 6-11-08; 8:45 am]
BILLING CODE 7710-FW-P