[Federal Register Volume 73, Number 164 (Friday, August 22, 2008)]
[Notices]
[Pages 49723-49724]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-19446]


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POSTAL REGULATORY COMMISSION

 [Docket Nos. MC2008-6, CP2008-14, CP2008-15; Order No. 97]


Administrative Practice and Procedure; Postal Service

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission has established formal dockets to consider 
three related Postal Service filings. The filings concern prices and 
classification changes for competitive products not of general 
applicability involving foreign postal administrations. The 
Commission's action will provide for public input and for a review to 
determine consistency with applicable statutory requirements.

DATES: Comments are due August 26, 2008.

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

SUPPLEMENTARY INFORMATION: On August 5, 2008, the Postal Service filed 
three requests incorporating notices, pursuant to 39 U.S.C. 3642, 39 
CFR 3030 et seq.,

[[Page 49724]]

which have been assigned to Docket Nos. MC2008-6, CP2008-14 and CP2008-
15, announcing prices and classification changes for competitive 
products not of general applicability.\1\ The request in Docket No. 
MC2008-6 informs the Commission that ``the Governors have established 
prices and classifications not of general applicability for Inbound 
Direct Entry Contracts with Foreign Postal Administrations,'' and 
attaches a redacted copy of the Governors' Decision.\2\ See Request, 
Attachment 1. The Postal Service also attached a revision of the draft 
Mail Classification Schedule (MCS) (section 2612) concerning Inbound 
Direct Entry Contracts to the Notice.\3\ See Request, Attachment 1, 
Attachment A.
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    \1\ Case captions for cases such as those involving negotiated 
agreements for competitive products should be standardized. The 
first line in the caption should list ``Competitive Product 
Prices''. The second line should list the product and the docket of 
the case that created that product. The third line should list the 
contracting party or ``Negotiated Service Agreement'' if the 
contracting party is confidential information.
    \2\ Request of United States Postal Service to Add Inbound 
Direct Entry Contracts With Foreign Postal Administrations to the 
Competitive Product List, and Notice of Filing (Under Seal) The 
Enabling Governors' Decision and Two Functionally Equivalent 
Contracts with Foreign Posts, August 5, 2008 (Request).
    \3\ The draft MCS remains under review. The Commission 
anticipates providing interested persons an opportunity to comment 
on the draft MCS in the near future.
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    In support of these dockets, the Postal Service filed a Statement 
of Supporting Justification of Pranab Shah. See Request, Attachment 2. 
The Postal Service has also filed materials under seal, including the 
unredacted Governors' Decision in Docket No. MC2008-6. The Postal 
Service claims that ``[p]rices and other contract terms relating to the 
foreign posts' processes and procedures 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.'' Request at 
2-3.
    Docket Nos. CP2008-14 and CP2008-15 announce specific Inbound 
Direct Entry Contracts that the Postal Service has entered into with 
the individual Foreign Postal Administrations, namely China Post Group 
and Hong Kong Post, respectively.\4\ Id. In support of these dockets, 
the Postal Service has also filed materials, including the contracts 
and supporting certifications, under seal.\5\
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    \4\ The Commission characterizes the Governors' Decision and 
associated materials filed in Docket No. MC2008-6 as material that 
supports the specific negotiated service agreements filed in Docket 
Nos. CP2008-14 and CP2008-15.
    \5\ See PRC Order No. 95, August 11, 2008, at 2 regarding the 
filing of certifications under seal.
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    The Postal Service's filings in these dockets are related. Docket 
No. MC2008-6 establishes, in essence, a shell classification, while 
Docket Nos. CP2008-14 and CP2008-15 are specific agreements negotiated 
pursuant to the conditions of the shell classification. Given this 
interrelationship, the Commission reviews these proceedings together in 
this Order.\6\
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    \6\ 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. Docket No. RM2007-1, Order Establishing Ratemaking 
Regulations for Market Dominant and Competitive Products, October 29, 
2007, paras. 3061 and 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 substantially equivalent 
agreements as a single product if they exhibit similar cost and market 
characteristics. Id., paras. 2177 and 3001. In its filings, the Postal 
Service contends that these two agreements are premised on similar cost 
and market characteristics and provides arguments to support this 
claim. Request at 5-6. Thus, the Postal Service requests that the 
Commission classify the two agreements filed in Docket Nos. CP2008-14 
and CP2008-15 as part of the same product.
    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 August 26, 2008.
    Pursuant to 39 U.S.C. 505, Paul L. Harrington is designated 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. Docket Nos. MC2008-6, CP2008-14, and CP2008-15 are established 
to consider the Postal Service Request and related contracts referred 
to in the body of this Order.
    2. Comments by interested persons on issues in these proceedings 
are due no later than August 26, 2008.
    3. The Commission designates 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.
    Issued August 13, 2008.
Judith M. Grady,
Acting Secretary.
 [FR Doc. E8-19446 Filed 8-21-08; 8:45 am]
BILLING CODE 7710-FW-P