[Federal Register Volume 76, Number 239 (Tuesday, December 13, 2011)]
[Notices]
[Pages 77483-77485]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-31910]


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POSTAL REGULATORY COMMISSION

[Docket No. N2012-1; Order No. 1027]


Nationwide Change in Postal Delivery Service Standards

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently-filed Postal Service 
request for an advisory opinion on an initiative involving examination 
of the continuation of service at postal retail locations. This 
document invites public comments on the request and addresses several 
related procedural steps.

DATES: 1. Notices of intervention are due: December 30, 2011, 4:30 p.m. 
Eastern Time.
    2. Prehearing conference: January 4, 2012, at 10 a.m. (Commission 
hearing room, 901 New York Ave., NW 20268-0001, Suite 200).

ADDRESSES: Submit notices of intervention electronically by accessing 
the ``Filing Online'' link in the banner at the top of the Commission's 
Web site (http://www.prc.gov) or by directly accessing the Commission's 
Filing Online system at http://www.prc.gov/prc-pages/filing-online/login.aspx. Persons interested in intervening who cannot submit their 
views electronically should contact the person identified in the FOR 
FURTHER INFORMATION CONTACT section as the source for case-related 
information for advice on alternatives to electronic filing.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
at (202) 789-6820 (case-related information) or [email protected] 
(electronic filing assistance).

SUPPLEMENTARY INFORMATION: On December 5, 2011, the United States 
Postal Service (Postal Service) filed a request with the Postal 
Regulatory Commission (Commission) for the Commission to issue an 
advisory opinion under 39 U.S.C. 3661(c) regarding whether certain 
changes in the nature of postal services conform to the applicable 
polices of title 39.\1\
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    \1\ Request of the United States Postal Service for an Advisory 
Opinion on Changes in the Nature of Postal Services, December 5, 
2011 (Request).
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    The Postal Service proposes to revise service standards for First-
Class Mail,

[[Page 77484]]

Periodicals, Package Services, and Standard Mail. The most significant 
revisions would eliminate the expectation of overnight service for 
significant portions of First-Class Mail and Periodicals. Within First-
Class Mail, 3-digit origin-destination pair service standards would be 
modified to move overnight delivery to 2-day delivery, and to move a 
portion of 2-day delivery to 3-day delivery. Id. at 1. Although changes 
to service standards for competitive products such as Express Mail and 
Priority Mail are not being proposed, the realignment of 3-digit 
origin-destination pairs could also affect those products. Id. at 7.
    The Postal Service asserts the service standard changes would allow 
for a significant consolidation of the Postal Service's processing and 
transportation networks. It contends the consolidated networks would 
better match current and projected mail volumes and result in 
substantial cost savings. Id. at 1-2. The Postal Service projects this 
effort will result in costs savings of $2.1 billion annually. Id. at 4.
    Concurrent with this request for an advisory opinion, the Postal 
Service is separately pursuing modification of the market dominant 
product service standards appearing at 39 CFR parts 121 and 122. Id. at 
6. The Postal Service asserts that no changes to service standards will 
be implemented until completion of the independent rulemaking 
anticipated for completion in March 2012. Id. at 14. Thus, the Postal 
Service realistically anticipates there will be no changes to service 
standards associated with the request for an advisory opinion until the 
first half of April 2012, at the earliest. Id.
    The Postal Service's direct case. The Request is accompanied by 13 
pieces of testimony, 33 public library references, and 6 non-public 
library references. The Postal Service explains that the circumstances 
under which it seeks this advisory opinion are explained in the Direct 
Testimony of David E. Williams on behalf of the United States Postal 
Service (USPS-T-1).
    The modeling performed to study potential network changes as well 
as delivery, mail processing, maintenance and transportation 
operational changes that are being planned are explained in the Direct 
Testimony of Stephen Masse on behalf of the United States Postal 
Service (USPS-T-2), Direct Testimony of Emily R. Rosenberg on Behalf of 
the United States Postal Service (USPS-T-3), Direct Testimony of Frank 
Neri on behalf of the United States Postal Service (USPS-T-4), Direct 
Testimony of Dominic L. Bratta on behalf of United States Postal 
Service (USPS-T-5), and Direct Testimony of Cheryl D. Martin on behalf 
of the United States Postal Service (USPS-T-6).
    The Direct Testimony of Pritha N. Mehra on behalf of the United 
States Postal Service (USPS-T-7) and Direct Testimony of Kevin Rachel 
on behalf of the United States Postal Service (USPS-T-8) discuss 
potential commercial mailer impacts and labor issues relating to 
potential cost savings.
    Detailed estimates of the operational cost savings that could be 
achieved if the changes were in effect are provided in Direct Testimony 
of Marc A. Smith on behalf of the United States Postal Service (USPS-T-
9) and Direct Testimony of Michael D. Bradley on behalf of the United 
States Postal Service (USPS-T-10).
    Based upon quantitative and qualitative market research provided in 
Direct Testimony of Rebecca Elmore-Yalch on bhalf of the United States 
Postal Service (USPS-T-11), the Postal Service estimates the potential 
revenue loss that could result from implementing these service changes 
in Direct Testimony of Greg Whiteman on behalf of the United States 
Postal Service (USPS-T-12).
    The Postal Service asserts the service changes described in this 
request potentially affect every sender and recipient of mail served 
directly by the United States Postal Service. Accordingly, the Direct 
Testimony of Susan M. Lachance on behalf of the United States Postal 
Service (USPS-T-13) summarizes the tools and techniques that the Postal 
Service has employed and will continue to employ for communicating 
effectively vital information to customers in a timely fashion.
    The Request and all supporting public materials are on file in the 
Commission's docket room for inspection during regular business hours, 
and are available on the Commission's Web site at http://www.prc.gov.
    Intervention. Section 3661(c) of title 39 requires that the 
Commission afford an opportunity for a formal, on-the-record hearing of 
the Postal Service's Request under the terms specified in sections 556 
and 557 of title 5 of the United States Code before issuing its 
advisory opinion. All interested persons are hereby notified that 
notices of intervention in this proceeding shall be due on or before 
December 30, 2011. See 39 CFR 3001.20 and 3001.20a. It is the 
Commission's intent to hold hearings for the receipt of evidence in 
this proceeding.
    Participants are reminded that discovery directed towards the 
Postal Service's direct case may begin upon intervention. Participants 
are encouraged to begin discovery as soon as possible because the 
Commission anticipates a limited discovery period in this proceeding.
    Further procedures. At this time, the Commission cannot anticipate 
the duration, or even the exact form, proceedings on this matter will 
take. The Postal Service proposes that the Commission convene a 
prehearing conference at the earliest reasonable opportunity to 
consider all possible ways to expedite and streamline this proceeding. 
Id. at 13 n.15. The Commission will accommodate this request by 
scheduling a prehearing conference for January 4, 2012, at 10 a.m. in 
the Commission's hearing room.
    Participants who wish to offer their views on procedural issues, 
including a procedural schedule, may do so during the prehearing 
conference. At a minimum, participants should be prepared to discuss 
and justify the length of time necessary for discovery on the Postal 
Service's direct case, and an estimation of time necessary for 
preparation of any rebuttal testimony after the Postal Service's direct 
case is entered into the record at hearing. Participants also are 
encouraged to comment on these issues within their notices of 
intervention if possible.
    Shortly following the prehearing conference, a procedural schedule 
will be issued, as well as any special procedures that may be 
applicable to this proceeding. The procedural schedule will be 
established consistent with participants' due process rights for 
thorough consideration of all material issues relevant to this docket.
    Public Representative. Section 3661(c) of title 39 requires the 
participation of an ``officer of the Commission who shall be required 
to represent the interests of the general public.'' Christopher Laver 
is designated to serve as Public Representative to represent the 
interests of the general public in this proceeding. The Public 
Representative shall direct the activities of Commission personnel 
assigned to assist him and, at an appropriate time, shall provide the 
names of these employees for the record. Neither the Public 
Representative nor the assigned personnel shall participate in or 
advise as to any Commission decision in this proceeding other than in 
their designated capacity.
    It is ordered:
    1. The Commission establishes Docket No. N2012-1 to consider the 
Postal Service Request referred to in the body of this order.

[[Page 77485]]

    2. The Commission will sit en banc in this proceeding.
    3. Notices of intervention are due no later than December 30, 2011.
    4. A prehearing conference is scheduled for January 4, 2012, at 10 
a.m., in the Commission's hearing room.
    5. Pursuant to 39 U.S.C. 505 and 3661(c), the Commission appoints 
Christopher Laver to represent the interests of the general public in 
this proceeding.
    6. The Secretary shall arrange for publication of this notice in 
the Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2011-31910 Filed 12-12-11; 8:45 am]
BILLING CODE 7710-FW-P