[Federal Register Volume 74, Number 218 (Friday, November 13, 2009)]
[Notices]
[Pages 58661-58663]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-27268]


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POSTAL REGULATORY COMMISSION

[Docket No. CP2010-8; Order No. 333]


Competitive Products Price and Classification Changes

AGENCY:  Postal Regulatory Commission.

ACTION:  Notice and order.

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SUMMARY:  The Commission is conducting a formal review of the Postal 
Service's planned rate adjustments for essentially all products in the 
competitive products category. A public comment period extends through 
November 23, 2009. This will be followed by a Commission determination 
on the consistency of the adjustments with certain considerations. The 
new rates and classification changes are expected to take effect 
January 4, 2010.

DATES:  1. Supplemental information from the Postal Service is due: 
November 13, 2009. 2. Comments are due: November 23, 2009.

ADDRESSES:  Submit comments electronically via the Commission's Filing 
Online system at http://www.prc.gov. Commenters who cannot submit their 
views electronically should contact the person identified in ``FOR 
FURTHER INFORMATION CONTACT'' by telephone for advice on alternatives 
to electronic filing.

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

[[Page 58662]]


SUPPLEMENTARY INFORMATION: On November 4, 2009, the Postal Service 
filed notice with the Commission concerning changes in rates of general 
applicability for competitive products.\1\ The Filing also includes 
related mail classification changes. The Postal Service represents 
that, as required by the Commission's rules, 39 CFR 3015.2(b), the 
Filing includes an explanation and justification for the changes, the 
effective date, and a schedule of the changed rates. The price changes 
are scheduled to become effective January 4, 2010.
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    \1\ See Notice of the United States Postal Service of Changes in 
Rates of General Applicability for Competitive Products Established 
in Governors' Decision No. 09-13, November 4, 2009 (Filing). The 
Filing is available on the Commission's Web site, http://www.prc.gov, under Daily Listings for November 4, 2009. Pursuant to 
39 U.S.C. 3632(b)(2), the Postal Service is obligated to publish the 
Governors' Decision and record of proceedings in the Federal 
Register at least 30 days before the effective date of the new rates 
or classes.
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    Attached to the Filing is the Governors' Decision evaluating the 
new prices and classification changes in accordance with 39 U.S.C. 
3632-33 and 39 CFR 3015.2. The Governors' Decision provides an analysis 
of the competitive products' price and classification changes intended 
to demonstrate that the changes comply with section 3633(a) of title 39 
and the Commission's rules. See 39 CFR 3015.7(c).
    The Attachment to the Governors' Decision sets forth the price 
changes and related product description changes to be incorporated into 
the draft Mail Classification Schedule. Selected highlights of the 
price and classification changes follow.
    Express Mail. Overall, Express Mail prices increase by 4.5 percent. 
Price increases for retail and Commercial Base pricing increase, on 
average, by 4.5 percent. The Commercial Plus prices increase by 4.4 
percent. Separate rate tables are created for Commercial Base and 
Commercial Plus price categories.
    Priority Mail. Priority Mail prices increase by 3.3 percent 
overall, with average retail prices increasing by about 3.9 percent. 
The average increase for Commercial Base prices is 2.9 percent. 
Commercial Plus prices increase by 0.9 percent.
    Changes to the price structure include the following: (1) Renaming 
the regular-size flat rate box from ``Regular'' to ``Medium;'' (2) 
adding a new half-pound price starting at $4.22, and a flat rate padded 
envelope priced at $4.95 to the Commercial Plus category; (3) adding a 
new Commercial Plus Cubic category for shipments that weigh less than 
20 pounds and are no larger than one-half cubic feet in volume for 
customers who ship more than 250,000 Priority Mail pieces annually.
    Parcel Select. Parcel Select service increases, on average, by 4.7 
percent. For destination entry parcels, the average price increases 3.9 
percent for dropshipping at destination delivery units, 6.9 percent for 
parcels entered at a destination plant, and 6.9 percent for parcels 
entered at a destination Bulk Mail Center (BMC). There are no price 
changes to nondestination-entered parcels.
    The Loyalty and Growth Incentive rebates are being eliminated as of 
the end of May 2010. Additionally, the 50-piece volume minimum for the 
Barcoded Nonpresort price category is being eliminated for parcels paid 
using PC postage. Other non-substantive conforming changes are being 
made to the draft Mail Classification Schedule.
    Parcel Return. Parcel Return service increases, on average, by 3.0 
percent. Return BMC prices will increase by 3.3 percent, and the price 
for parcels picked up at a delivery unit will increase by 2.1 percent.
    Global Express Guaranteed. Global Express Guaranteed service 
increases, on average, by 4.1 percent. The existing structure remains 
the same.
    Express Mail International. Express Mail International service 
increases, on average, by 2.9 percent. The existing structure remains 
the same.
    Priority Mail International. Overall, Priority Mail International 
(PMI) prices increase on average by 3.0 percent. The existing structure 
of PMI remains the same; however, there will be a single maximum 
dimension for both rectangular and non-rectangular pieces and rate 
group 6 is being assigned to Cuba. The name of the regular-size flat 
rate box changes from ``Regular'' to ``Medium.''
    Inbound Air Parcel Post. There will be a single maximum dimension 
for both rectangular and non-rectangular pieces.
    Global Expedited Package Services (GEPS) contracts. There will be a 
single maximum dimension for both rectangular and non-rectangular 
pieces.
    Global Plus contracts. There will be a single maximum dimension for 
both rectangular and non-rectangular pieces.
    Country group assignments. The country rate group for Kosovo is 
established. Its country group assignment corresponds to that for 
Serbia.
    Details of these changes may be found in the Attachment to 
Governors' Decision No. 09-13.
    The Filing also includes two additional attachments: A redacted 
table that shows FY 2010 projected volumes, revenues, attributable 
costs, contribution, and cost coverage for each product, and an 
application for non-public treatment of the unredacted version of that 
table.
    Notice. The establishment of rates of general applicability for 
competitive products and the associated mail classification changes 
effect a change in the draft Mail Classification Schedule. As such, 
pursuant to subpart E of part 3020 of its rules, 39 CFR 3020.90 et 
seq., the Commission provides notice of the Postal Service's Filing. 
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 and 39 CFR part 3015 and 39 CFR 3020, subpart B. Comments 
are due no later than November 23, 2009.
    Pursuant to 39 U.S.C. 505, Richard A. Oliver and John Klingenberg 
are appointed as Public Representatives to represent the interests of 
the general public in the above-captioned docket.
    Supplemental information. Pursuant to 39 CFR 3015.6, the Postal 
Service is requested to provide a written response to the questions 
below. To assist in the completion of the record, answers should be 
provided as soon as possible, but by no later than November 13, 2009.
    1. Please refer to the redacted, untitled and unnumbered table 
attached to the Filing which presents certain information for FY 2010 
(Table 1).
    a. The Commission is unable to verify the FY 2010 volume, revenue, 
attributable cost, contribution, or cost coverage data provided by the 
Postal Service in Table 1. Please provide data similar to that provided 
in Docket No. CP2009-8 to support all data in both the redacted and 
unredacted versions of Table 1;\2\ and
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    \2\ See, e.g., Docket No. CP2009-8, Library Reference USPS-
CP2009-8/NP1, November 18, 2008.
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    b. Provide a narrative explaining the method used to forecast data 
in Table 1.
    2. Please reference Governors' Decision No. 09-13. The Postal 
Service provides overall price increases for the following products: 
Express Mail 4.5 percent, Priority Mail 3.3 percent, Parcel Select 4.7 
percent, Parcel Return Service 3.0 percent, Global Express Guaranteed 
4.1 percent, Express Mail International 2.9 percent, and Priority Mail 
International 3.0 percent. Please describe the weights used to derive 
the Before Rates and After Rates indices relied upon to calculate the 
overall (average) percentage price increase for each product and 
service referenced

[[Page 58663]]

above. Please show all calculations in Excel.\3\
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    \3\ See e.g., id., Notice of the United States Postal Service of 
Filing of Responses to Chairman's Information Request No. 2, 
December 8, 2008.
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It is ordered:

    1. The Commission establishes Docket No. CP2010-8 to provide 
interested persons an opportunity to express views and offer comments 
on whether the planned changes are consistent with the policies of 39 
U.S.C. 3632, 3633, or 3642 and 39 CFR part 3015 and 39 CFR 3020, 
subpart B.
    2. Comments on the Filing are due no later than November 23, 2009.
    3. The Commission appoints Richard A. Oliver and John Klingenberg 
as Public Representatives to represent the interests of the general 
public in this proceeding.
    4. The Postal Service shall provide a written response to the 
supplemental information requested in this Order no later than November 
13, 2009.
    5. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Judith M. Grady,
Acting Secretary.
[FR Doc. E9-27268 Filed 11-12-E8; 8:45 am]
BILLING CODE 7710-FW-S