[Federal Register Volume 75, Number 222 (Thursday, November 18, 2010)]
[Notices]
[Pages 70754-70755]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-29083]


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POSTAL REGULATORY COMMISSION

[Docket No. MC2011-5; Order No. 583]


Postal Classification Changes

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently-filed Postal Service 
request announcing a classification change affecting bundle and 
container charges for Outside County Periodicals pieces in combined 
mailings of Standard Mail and Periodicals. This notice addresses 
procedural steps associated with this filing.

DATES: Comment deadline: November 24, 2010.

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 the FOR 
FURTHER INFORMATION CONTACT section by telephone for advice on 
alternatives to electronic filing.

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

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
II. Additional Details
III. Commission Analysis and Initial Action
IV. Ordering Paragraphs

I. Introduction

    On November 5, 2010, the United States Postal Service, invoking 
Commission rules 3020.90 and 91, filed a Notice with the Commission 
announcing a classification change

[[Page 70755]]

established by the Governors.\1\ The change affects bundle and 
container charges for Outside County Periodicals pieces in combined 
mailings of Standard Mail and Periodicals. Id. at 1. An attachment to 
the Notice presents conforming revisions to the Mail Classification 
Schedule (MCS). These revisions affect Periodicals MCS section 1320.4, 
Price Categories. They do not affect any Standard Mail sections in the 
MCS, nor do they affect any Within County MCS sections. The Notice does 
not provide a date certain for the planned change.
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    \1\ Notice of the United States Postal Service of Classification 
Change Related to Combined Mailings of Standard Mail and 
Periodicals, November 5, 2010 (Notice).
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II. Additional Details

    Relationship to co-mailing and co-palletizing. The Postal Service 
notes that the planned change means that when bundles or containers 
include both Standard Mail and Periodicals pieces, the Outside County 
Periodicals bundle and container prices apply based on the proportion 
of Periodicals pieces in bundles or weight in the container. Id. It 
explains:

    Specifically, mailers using the Mixed Class preparation option 
may combine Standard Mail and Periodicals mailpieces within the same 
bundle (comail), or combine separate same-class bundles on the same 
pallet (copalletize), to maximize presorting or to qualify for 
deeper destination entry discounts.

Id.

    The Postal Service asserts, without elaboration, that the changes 
provide ``a fair price application for Mixed Class mailings of Standard 
Mail and Periodicals.'' Id. In a similar vein, it also asserts that it 
believes the changes are consistent with 39 U.S.C. 3642 and should be 
incorporated by the Commission into the MCS. Id.

III. Commission Analysis and Initial Action

    Rules 3020.90 and 91, which the Postal Service cites as the 
administrative vehicle for its filing, are part of Subpart E of Part 
3020--Product Lists. This subpart is captioned ``Requests Initiated by 
the Postal Service to Change the Mail Classification Schedule.'' The 
first two individual rules within this subpart address Postal Service 
responsibilities. They require that the Postal Service assure that 
product descriptions in the MCS accurately reflect current offerings 
(Sec.  3020.90) and submit corrections that do not constitute a 
proposal to modify the product lists by filing a notice of the proposed 
change no later than 15 days prior to effective date (Sec.  3020.91).
    The remaining two rules address Commission responsibilities. They 
require the Commission to publish the proposed change on its Web site 
and provide interested persons with an opportunity to comment on the 
consistency of the planned change with 39 U.S.C. 3642 (Sec.  3020.92). 
They also require the Commission to review the change and comments and, 
upon a finding that there is no inconsistency with 39 U.S.C. 3642, to 
change the MCS to coincide with the effective date of the change (Sec.  
3020.93(a)).
    The rules in Subpart E were adopted as part of a series of 
rulemakings implementing the Postal Accountability and Enhancement Act 
(PAEA) of 2006. At the time, the Commission viewed Subpart E as a 
vehicle for minor classification changes. The Postal Service's Notice 
indicates that it considers Subpart E as an appropriate vehicle for 
effecting the modification proposed here, which it characterizes as a 
matter of rate application for practices associated with co-mailing and 
co-palletizing in mixed class mailings.
    The Commission interprets the Postal Service's presentation of 
proposed MCS revisions and its assertion regarding consistency with 39 
U.S.C. 3642, which addresses changes to the product lists, as a 
demonstration of its interest in facial compliance with Subpart E 
requirements and the apparent lack of other viable alternatives under 
the existing administrative framework.
    With the perspective gained over the past few years, it appears 
that Subpart E may not be optimally suited for the type of change the 
Postal Service proposes here. This is because the proposal may have 
rate and price cap implications, raising questions about how the 
Commission's compliance function will be affected. At the same time, it 
is also appears that no practical alternative exists for expedited 
consideration of the proposal, and that compliance concerns can be 
addressed, at least preliminarily, in the context of this case.
    The Commission therefore establishes Docket No. MC2011-5, 
Modification of Mail Classification Schedule Regarding Combined 
Mailings of Standard Mail and Periodicals, to address the Postal 
Service's filing. In conformance with rule 3020.92, the planned change 
appears on the Commission's Web site. In addition, the Notice will be 
published in the Federal Register. The Commission invites interested 
persons to comment on the consistency of the change with 39 U.S.C. 3622 
and 3642. Comments are due no later than November 24, 2010.
    In conformance with 39 U.S.C. 505, the Commission appoints Robert 
N. Sidman to represent the interests of the general public in this 
proceeding.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. MC2011-5, Modification of 
Mail Classification Schedule Regarding Combined Mailings of Standard 
Mail and Periodicals, for consideration of matters raised in the Postal 
Service's Notice.
    2. Pursuant to 39 U.S.C. 505, Robert N. Sidman is designated 
officer of the Commission (Public Representative) to represent the 
interests of the general public in this proceeding.
    3. Comments are due no later than November 24, 2010.
    4. The Secretary shall arrange for publication of this notice and 
order in the Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2010-29083 Filed 11-17-10; 8:45 am]
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