[Federal Register Volume 75, Number 217 (Wednesday, November 10, 2010)]
[Notices]
[Pages 69142-69143]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-28309]


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POSTAL REGULATORY COMMISSION

[Docket No. CP2011-26; Order No. 575]


Postal Rate and Classification Changes

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The document provides the public with notice that the Postal 
Service has filed with the Commission notice of its intention of 
planned rate and classification changes rates for certain competitive 
domestic and international products. The changes have an anticipated 
effective date of January 2, 2011. The Postal Service's filing triggers 
a review process, which includes an opportunity for the public to 
comment. This document addresses the comment process and other matters 
that pertain to the planned changes.

DATES: Supplemental information (from Postal Service) due: November 10, 
2010. Public comments due: November 19, 2010.

ADDRESSES: Submit documents electronically via the Commission's Filing 
Online System at http://www.prc.gov. Those who cannot submit filings 
electronically should contact the person identified in the FOR FURTHER 
INFORMATION SECTION for advice on alternatives.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
at 202-789-6824 or [email protected].

SUPPLEMENTARY INFORMATION: On November 2, 2010, 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 2, 2011.
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    \1\ Notice of the United States Postal Service of Changes in 
Rates of General Applicability for Competitive Products Established 
in Governors' Decision No. 10-4, November 2, 2010 (Filing). The 
Filing is available on the Commission's Web site, http://www.prc.gov, under Daily Listing for November 2, 2010. 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 includes a draft Mail Classification Schedule for 
competitive products of general applicability. Selected highlights of 
the price and classification changes follow.
    Express Mail. Overall, Express Mail prices increase by 4.6 percent. 
Retail prices increase, on average, by 5.0 percent. Commercial Base 
prices do not change. The Commercial Plus prices decrease by 5.0 
percent. The volume threshold for Commercial Plus decreases from 6,000 
to 5,000 pieces of Express Mail.
    Priority Mail. Priority Mail prices increase by 3.5 percent 
overall, with average retail prices increasing by about 3.9 percent. 
The average increase for Commercial Base prices is 3.2 percent. 
Commercial Plus prices increase by 2.0 percent.
    Changes to the price structure include the following: (1) Adding 
price categories called Regional Rate Box and Critical Mail; (2) adding 
Legal Flat Rate Envelopes and Padded Flat Rate Envelopes, both priced 
at $4.95 retail; (3) the parcel volume threshold in Commercial Plus is 
reduced from 100,000 to 75,000 pieces (all shapes); (4) the letter- and 
flat-size volume threshold in Commercial Plus is reduced from 100,000 
pieces to 5,000 pieces; (5) customers who ship more than 600 Priority 
Mail Open and Distribute containers annually will qualify for 
Commercial Plus.
    Parcel Select. Parcel Select service increases, on average, by 4.4 
percent. For destination entry parcels, the average price increases 8.0 
percent for dropshipping at destination delivery units, 0.2 percent for 
parcels entered at a destination plant, and 0.6 percent for parcels 
entered at a destination Network Distribution Center (NDC). For 
nondestination-entered parcels, the average increases are 9.8 percent 
for origin NDC presort, 7.7 percent for NDC presort, and 7.6 percent 
for barcoded nonpresort.
    Parcel Return. Parcel Return Service increases, on average, by 3.1 
percent. Return NDC prices will increase by 0.9 percent, and the price 
for parcels picked up at a delivery unit will increase by 8.0 percent.
    Domestic Extra Services. Premium Forwarding Service prices increase 
5.0 percent. The weekly reshipment fee increases to $14.75. On average, 
Address Enhancement Service prices increase 5.0 percent.
    Global Express Guaranteed. Global Express Guaranteed service 
increases, on average, by 3.7 percent. A classification change allows 
postage payment by permit indicia. Published discounts for Express Mail 
Corporate Accounts and for users of Information-based indicia (IBI) 
devices are eliminated.
    Express Mail International. Express Mail International (EMI) 
service increases, on average, by 3.1 percent. Classification changes 
include the introduction of a legal-sized EMI Flat Rate Envelope, seven 
new country groups for EMI, elimination of published discounts for 
Express Mail Corporate Accounts and for users of IBI devices, 
elimination of Return Receipt service, and combination of Mexico with 
the ``All Other Countries'' price tier for Flat Rate Envelopes.
    Priority Mail International. Overall, Priority Mail International 
(PMI) prices increase on average by 3.8 percent. Classification changes 
include the introduction of several new flat rate options, seven new 
country groups, and the elimination of published discounts for users of 
IBI devices.

[[Page 69143]]

    International Priority Airmail. International Priority Airmail has 
a price increase of 3.3 percent.
    International Surface Air Lift. International Surface Air Lift has 
a price increase of 6.4 percent.
    Airmail M-Bags. The published prices for Airmail M-Bags increase by 
5.8 percent.
    International Ancillary Services. Prices for paper money orders and 
for insurance with EMI and PMI increase. The unique price tier for 
Canada when optional insurance is purchased for PMI parcels is 
eliminated.
    Details of these changes may be found in the Attachment to 
Governors' Decision No. 10-4.
    The Filing also includes two additional attachments: A redacted 
table that shows FY 2011 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. 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 19, 2010.
    Pursuant to 39 U.S.C. 505, Cassandra L. Hicks is appointed as 
Public Representative 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 10, 2010.
    1. Please refer to the redacted tables attached to the Request 
which present ``Competitive Product Contribution & Cost Coverage 
Analysis'' for FY 2011 ``January 2, 2011 Implementation'' and ``October 
1, 2010 Implementation.''
    a. Provide FY 2011 volumes, revenues, attributable costs, 
contribution, and cost coverage data similar to that provided in Docket 
No. CP2010-8 to support all data in both the redacted and unredacted 
tables.\2\
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    \2\ See e.g., Docket No. CP2010-8 Notice of the United States 
Postal Service of Filing Supplemental Information Under Seal In 
Response To Commission Order No. 333, November 16, 2009 and November 
19, 2009; Supplemental Information Provided by the United States 
Postal Service in Response to Commission Order No. 333; and Notice 
of Filing Material Under Seal, November 19, 2009.
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    b. Provide a narrative explaining the method used to forecast data 
in the referenced tables.
    c. Provide attributable costs, revenues, and volumes data for each 
product grouped in ``All Other Competitive International (including 
Services)'' at the same level of detail provided for all other 
competitive products in this docket. For each of these international 
products, explain how the expected revenues and costs comply with 39 
U.S.C. 3633(a).
    2. Please refer to Governors' Decision No. 10-4. The Postal Service 
provides overall price increases for the following products: Express 
Mail 4.6 percent, Priority Mail 3.5 percent, Parcel Select 4.4 percent, 
Parcel Return Service 3.1 percent, Premium Forwarding Service 5.0 
percent, Address Enhancement Service 5.0 percent, Global Express 
Guaranteed 3.7 percent, Express Mail International 3.1 percent, and 
Priority Mail International 3.8 percent, International Priority Airmail 
and International Surface Air Lift 4.4 percent, Airmail M-Bags 5.8 
percent. Please provide 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 above 
similar to the supplemental data filed in CP2010-8. Id. Please show all 
calculations in Excel, and explain any adjustments made due to 
classification changes.
    3. Please refer to the Draft Mail Classification Schedule (MCS) in 
the Attachment to Governors' Decision 10-4 sections 2115.2 and 2115.3. 
Please confirm that ``Lightweight'' Parcel Select size and volume 
thresholds should not be included in the Draft MCS.\3\ If not 
confirmed, please explain.
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    \3\ Docket No. MC2010-36, Transferring Commercial Standard Mail 
Parcels to the Competitive Product List, is still under review by 
the Commission.
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    4. The Postal Service's request includes two new Priority Mail 
price categories: Critical Mail and Regional Rate Boxes. Please provide 
a detailed description of Critical Mail and Regional Rate Boxes. The 
response should include a discussion of how the proposed price 
categories differ from the existing Priority Mail price categories.
    It is ordered:
    1. The Commission establishes Docket No. CP2011-26 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 19, 2010.
    3. The Commission appoints Cassandra L. Hicks as Public 
Representative 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 
10, 2010.
    5. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2010-28309 Filed 11-9-10; 8:45 am]
BILLING CODE 7710-FW-P