[Federal Register Volume 74, Number 186 (Monday, September 28, 2009)]
[Rules and Regulations]
[Pages 49326-49327]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-23321]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3010

[Docket No. RM2009-8; Order No. 303]


Postal Rates

AGENCY: Postal Regulatory Commission.

ACTION: Final rule.

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SUMMARY: The Commission has approved a rounding convention used in the 
statutory price cap calculation for purposes of establishing rates for 
certain postal products. This change will facilitate small rate 
adjustments and promote consistency with the treatment of unused rate 
adjustment rounding.

DATES: Effective October 28, 2009.

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

SUPPLEMENTARY INFORMATION: 

Regulatory History

72 FR 63662 (November 9, 2007).
74 FR 27843 (June 11, 2009).
74 FR 36132 (July 22, 2009).

    This order adopts the amendments proposed to the inflation-based 
price cap calculation as set forth in Order No. 246.\1\ The amendments 
allow the Commission to calculate the price cap using three decimal 
places, as opposed to one decimal place. Id. at 2-3.
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    \1\ PRC Order No. 246, Notice of Proposed Rulemaking to Amend 
the Cap Calculation in the System of Ratemaking, July 10, 2009 
(Order No. 246).
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    Order No. 246 explains that previously data limitations only 
allowed for the use of one decimal place. Id. at 2. Order No. 246 also 
sets forth the developments that make three decimal places more 
appropriate, including small rate adjustments proposed by the Postal 
Service, which require a greater degree of precision from the cap; the 
availability of data that allows the cap

[[Page 49327]]

to be calculated to three decimal places; and consistency with the 
Postal Service's unused rate adjustment authority (bank), which is 
calculated to three decimal places. Id. at 2-3.
    The Commission amends the last sentence in 39 CFR 3010.21(a) and 
3010.22(b) to read, ``The result is expressed as a percentage, rounded 
to three decimal places.'' The amendment also corrects an inadvertent 
error in the current heading for part 3010 from ``Regulation of Rules 
for Market Dominant Products'' to ``Regulation of Rates for Market 
Dominant Products''. Id. at 3.
    Only two comments were submitted in response to Order No. 246. The 
Postal Service and the Public Representative both filed comments in 
support of the proposed change.\2\
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    \2\ Initial Comments of the United States Postal Service, July 
30, 2009; Public Representative Comments, August 21, 2009.
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    It is ordered:
    1. The Commission adopts the referenced amendments as final rules 
revising the price cap calculation in 39 CFR part 3010 and the part 
heading for 39 CFR part 3010. The part heading and sections affected by 
these revisions are set forth in their entirety, following the 
Secretary's signature, to provide context and clarity.
    2. These rules shall take effect 30 days after publication in the 
Federal Register.
    3. The Secretary shall arrange for publication of this order in the 
Federal Register.

List of Subjects in 39 CFR Part 3010

    Administrative practice and procedure; Postal Service.

    Dated: September 22, 2009.

    By the Commission.
Shoshana M. Grove,
Secretary.

0
For the reasons discussed in the preamble, the Commission amends 
chapter III of title 39 of the Code of Federal Regulations as follows:

PART 3010--REGULATION OF RATES FOR MARKET DOMINANT PRODUCTS

0
1. The authority citation for 39 CFR part 3010 continues to read as 
follows:

    Authority:  39 U.S.C. 503; 3622.


0
2. Revise the part heading of part 3010 to read as set forth above.

0
3. Revise Sec.  3010.21 to read as follows:


Sec.  3010.21  Calculation of annual limitation.

    (a) The calculation of an annual limitation involves three steps. 
First, a simple average CPI-U index is calculated by summing the most 
recently available 12 monthly CPI-U values from the date the Postal 
Service files its notice of rate adjustment and dividing the sum by 12 
(Recent Average). Then, a second simple average CPI-U index is 
similarly calculated by summing the 12 monthly CPI-U values immediately 
preceding the Recent Average and dividing the sum by 12 (Base Average). 
Finally, the annual limitation is calculated by dividing the Recent 
Average by the Base Average and subtracting 1 from the quotient. The 
result is expressed as a percentage, rounded to three decimal places.
    (b) The formula for calculating an annual limitation is as follows: 
Annual Limitation = (Recent Average/Base Average)-1.

0
4. Revise Sec.  3010.22 to read as follows:


Sec.  3010.22  Calculation of less than annual limitation.

    (a) If a notice of rate adjustment is filed less than 1 year after 
the last Type 1-A or Type 1-B notice of rate adjustment applicable to 
an affected class of mail, then the annual limitation will recognize 
the rate increases that have occurred during the preceding 12 months. 
When the effects of those increases are removed, the remaining partial 
year limitation is the applicable restriction on rate increases.
    (b) The applicable partial year limitation is calculated in two 
steps. First, a simple average CPI-U index is calculated by summing the 
12 most recently available monthly CPI-U values from the date the 
Postal Service files its notice of rate adjustment and dividing the sum 
by 12 (Recent Average). The partial year limitation is then calculated 
by dividing the Recent Average by the Recent Average from the most 
recent previous notice of rate adjustment (Previous Recent Average) 
applicable to each affected class of mail and subtracting 1 from the 
quotient. The result is expressed as a percentage, rounded to three 
decimal places.
    (c) The formula for calculating the partial year limitation for a 
notice of rate adjustment filed less than 1 year after the last notice 
is as follows: Partial Year Limitation = (Recent Average/Previous 
Recent Average)-1.

[FR Doc. E9-23321 Filed 9-25-09; 8:45 am]
BILLING CODE 7710-FW-P