[Federal Register Volume 73, Number 248 (Wednesday, December 24, 2008)]
[Notices]
[Pages 79198-79199]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-30758]


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POSTAL REGULATORY COMMISSION

[Docket No. PI2009-1, Order No. 152]


Universal Postal Service

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: This document provides notice that the Commission has issued a 
report on universal postal service and the postal monopoly. It 
describes how copies of the report and related material can be 
accessed. It also establishes a new docket for submission of comments 
addressing the report.

DATES: Initial comments due February 17, 2009; reply comments due March 
19, 2009.

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

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

SUPPLEMENTARY INFORMATION: Regulatory History, 73 FR 23507, (April 30, 
2008).

I. Introduction

    On December 19, 2008, the Commission transmitted to Congress and to 
the President a Report on Universal Postal Service and the Postal 
Monopoly (Report) as required by section 702 of the Postal 
Accountability and Enhancement Act (PAEA), Public Law 109-435, 120 
Stat. 3218 (2006). The Report is the product of over 8 months of review 
and analysis of information, comments, and testimony submitted in 
Docket No. PI2008-3 \1\ by the United States Postal Service (Postal 
Service),\2\ other Federal agencies, a member of Congress, 
representatives of Postal Service employee unions, postmaster 
associations, users of the mails, enterprises in the private sector 
engaged in the delivery of the mail, and the general public.\3\ In 
addition to its solicitation of written comments, the Commission 
scheduled three field hearings,\4\ a hearing in Washington, DC,\5\ and 
a public workshop.\6\
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    \1\ The proceedings in Docket No. PI2008-3 were instituted by 
PRC Order No. 71, Notice and Order Providing an Opportunity to 
Comment, April 18, 2008.
    \2\ In addition to the data, testimony, and other related 
materials submitted in Docket No. PI2008-3, the Postal Service also 
commissioned analyses which it has made available at http://www.usps.com/postallaw/universalpostalservice.htm.
    \3\ The Commission was assisted in this undertaking by a team of 
experts assembled by the School of Public Policy at George Mason 
University (GMU) and by GMU's Center for Social Science Research.
    \4\ Hearings were held in Flagstaff, Arizona on May 21, 2008; 
St. Paul, Minnesota on June 5, 2008; and Portsmouth, New Hampshire 
on June 19, 2008.
    \5\ The Washington, DC hearing was held on July 10, 2008.
    \6\ The workshop was held in Washington, DC on June 12, 2008.
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II. The Commission's Report

    The extensive Commission Report is available at http://www.prc.gov. 
It addresses all of the matters identified in section 702 of the PAEA, 
including:

--A comprehensive review of the history and development of universal 
service and the postal monopolies;
--The current legal scope of the universal service obligation and the 
postal letter and mailbox monopolies;
--The scope and standards of universal service and the postal 
monopolies likely to be required in the future to meet the needs and 
expectations of the United States public.

    The report recommends no immediate changes in universal service, 
the universal service obligation, the letter monopoly, or the mailbox 
monopoly. However, it recognizes that the Postal Service is faced with 
many difficult challenges stemming both from technological and social 
trends, and volume declines caused by the current economic downturn, 
and offers recommendations identifying areas where additional 
information should assist decision makers if future action becomes 
necessary.
    Primary Commission findings are:

--The universal service obligation has seven attributes: (1) Geographic 
scope; (2) range of products; (3) access to postal facilities; (4) 
delivery frequency; (5) prices/affordability; (6) quality of service; 
and (7) users' rights.
--The current obligation to provide service to all persons in all parts 
of the Nation, its territories, and possessions, is paramount, and 
should not be altered.
--Current law makes the universal service obligation applicable to both 
market dominant and competitive products.
--A first estimate of the annual cost of the universal service 
obligation, based on FY 2007, is $4.4 billion.
--A first estimate of the annual value of the combined letter mail and 
mailbox monopolies, based on FY 2007, is $3.5 billion, although this 
estimate is subject to substantial variation.

    Accompanying the Report is a CD that contains the extensive body of 
material underlying the Report that was developed for the Commission 
under a contract with the George Mason University School of Public 
Policy. All of this material can be accessed on the Commission Web 
site. For the USO Report: http://www.prc.gov/docs/61/6128/USO 
Report.pdf. For the USO Appendices and Workpapers: http://www.prc.gov/prc-pages/library/USOAppendices.aspx.

III. Public Comments

    The Commission's Report is a further step in the ongoing evolution 
of postal services. The information and analyses contained in the 
Report will form an important part of the basis for future discussions 
and action on issues facing the Postal Service. While the PAEA does not 
specifically require the Commission to solicit comments on its Report, 
the Commission believes that further discussion would be facilitated 
and the record further enhanced by establishing a new docket that gives 
the public an opportunity to comment. Following the receipt of 
additional comments, the Commission may decide to issue a supplemental 
report. The Commission urges those persons and entities that 
participated in the proceedings in Docket No. PI2008-3, as well as any 
other interested persons, to review the Report carefully and provide 
their comments in this new docket.

IV. Public Representative

    Section 505 of title 39 requires the designation of an officer of 
the Commission in all public proceedings to

[[Page 79199]]

represent the interests of the general public. The Commission hereby 
designates E. Rand Costich as that Public Representative in this 
proceeding. Pursuant to this designation, he will direct the activities 
of Commission personnel assigned to assist him and will, upon request, 
provide their names for the record. Neither he nor any of the assigned 
personnel will participate in or provide advice on any Commission 
decision in this proceeding.

V. Ordering Paragraphs

    It is Ordered:
    1. As set forth in the body of this Notice, Docket No. PI2009-1 is 
established for the purpose of receiving comments regarding the 
Commission's December 19, 2008 Report to Congress and the President on 
Universal Postal Service and the Postal Monopoly.
    2. Interested persons may submit comments no later than February 
17, 2009.
    3. Reply comments may be filed no later than March 19, 2009.
    4. E. Rand Costich is designated as the Public Representative 
representing the interests of the general public in this proceeding.
    5. The Secretary shall cause this Notice to be published in the 
Federal Register.

    By the Commission.
Steven W. Williams,
Secretary.
[FR Doc. E8-30758 Filed 12-23-08; 8:45 am]
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