[Federal Register Volume 73, Number 226 (Friday, November 21, 2008)]
[Notices]
[Pages 70681-70682]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-27764]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2009-8 and CP2009-9; Order No. 134]


Competitive Product Prices Bilateral Negotiated Service Agreement

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently-filed Postal Service 
request to add the Canada Post--United States Postal Service 
Contractual Bilateral Agreement for Inbound Competitive Services to the 
Competitive Product List. The Postal Service has also filed a related 
contract. This notice addresses procedural steps associated with these 
filings.

DATES: Comments are due December 3, 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:

 I. Background

    On November 13, 2008, the Postal Service filed a formal request 
pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add the Canada 
Post--United

[[Page 70682]]

States Postal Service Contractual Bilateral Agreement for Inbound 
Competitive Services (Bilateral Agreement) to the Competitive Product 
List.\1\ The Postal asserts that the Contractual Bilateral Agreement is 
a competitive product ``not of general applicability'' within the 
meaning of 39 U.S.C. 3632(b)(3). This Request has been assigned Docket 
No. MC2009-8.
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    \1\ Request of the United States Postal Service to Add Canada 
Post--United States Postal Service Contractual Bilateral Agreement 
for Inbound Competitive Services to the Competitive Product List, 
and Notice of Filing (Under Seal) the Enabling Governors' Decision 
and Agreement, November 13, 2008 (Request).
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    The Postal Service contemporaneously filed notice, pursuant to 39 
U.S.C. 3632(b)(3) and 39 CFR 3015.5, that the Governors have 
established prices and classifications not of general applicability for 
inbound competitive services as reflected in the Bilateral Agreement. 
More specifically, the Bilateral Agreement, which has been assigned 
Docket No. CP2009-9, governs the exchange of Inbound Parcel Post from 
Canada.
    In support of its Request, the Postal Service filed a redacted 
version of the Governors' Decision establishing prices for the 
Bilateral Agreement. Attached to the Governors' Decision are: Proposed 
Mail Classification Schedule language, a redacted version of 
management's analysis of the Bilateral Agreement, certification of 
compliance with 39 U.S. C. 3633 (a), certification of the Governors' 
vote,\2\ and a Statement of Supporting Justification as required by 39 
CFR 3020.32.\3\ In addition, the Postal Service indicates that it filed 
an unredacted copy of the Governors' Decision, the Bilateral Agreement, 
and other supporting documents designed to establish compliance with 39 
CFR 3015.5 under seal. Request at 2, n.2.
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    \2\ See Attachment 1 to the Request.
    \3\ See Attachment 2 to the Request.
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    In the Statement of Supporting Justification, Lea Emerson, 
Executive Director, International Postal Affairs, asserts that ``[t]he 
addition of the [Bilateral] Agreement as a competitive product will 
enable the Commission to verify that the agreement covers its 
attributable costs and enables competitive products, as a whole, to 
make a positive contribution to coverage of institutional costs.'' Id. 
at 2. W. Ashley Lyons, Manager, Corporate Financial Planning, Finance 
Department, certifies that the contract complies with 39 U.S.C. 
3633(a). Request, Attachment 1. He observes that the Bilateral 
Agreement ``should not impair the ability of competitive products on 
the whole to cover an appropriate share of institutional costs.'' Id.
    As noted, the Postal Service filed much of the supporting 
materials, including the Governors' Decision and the Bilateral 
Agreement, under seal. It maintains that the Bilateral Agreement, 
related financial information, and the Governors' Decision should 
remain under seal as they contain pricing, cost, and other information 
that are highly confidential. Request at 2.\4\
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    \4\ The Postal Service indicates that the materials filed under 
seal constitute a subset of the overarching agreement between the 
parties, representing the parties' agreement concerning inbound 
competitive services. The Postal Service further indicates that the 
parties anticipate finalizing ``this and related agreements by mid-
December, and any lingering details will not affect the rates, 
classification, or other fundamental basis for this Request and 
Notice.'' Request at 5, n.12.
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    The Postal Service has an existing bilateral agreement with Canada 
Post which is set to expire December 31, 2008. Id. at 3. The new prices 
and classifications modify the current agreement, extend it for 1 year, 
and are scheduled to take effect January 1, 2009, or ``after filing 
with and review by the Postal Regulatory Commission, whichever is 
later.'' Governors' Decision at 2.

II. Notice of Filings

    The Commission establishes Docket Nos. MC2009-8 and CP2009-9 for 
consideration of the Request pertaining to the proposed Canada Post--
United States Postal Service Contractual Bilateral Agreement product 
and the related Bilateral Agreement, respectively. In keeping with 
practice, these dockets are addressed on a consolidated basis for 
purposes of this Order; however, future filings should be made in the 
specific docket in which issues being addressed pertain.
    Interested persons may submit comments on whether the Postal 
Service's filings in the captioned dockets are consistent with the 
policies of 39 U.S.C. 3632, 3633, or 3642, 39 CFR part 3015, and 39 CFR 
3020 subpart B. Comments are due no later than December 3, 2008. The 
public portions of these filings can be accessed via the Commission's 
Web site (http://www.prc.gov).
    The Commission appoints Paul L. Harrington to serve as Public 
Representative in these dockets.

It is Ordered:

    1. The Commission establishes Docket Nos. MC2009-8 and CP2009-9 for 
consideration of the matters raised in each docket.
    2. 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 these proceedings.
    3. Comments by interested persons in these proceedings are due no 
later than December 3, 2008.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.


    By the Commission.
Steven W. Williams,
Secretary.
 [FR Doc. E8-27764 Filed 11-20-08; 8:45 am]
BILLING CODE 7710-FW-P