[Federal Register Volume 78, Number 79 (Wednesday, April 24, 2013)]
[Notices]
[Pages 24239-24240]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-09597]


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POSTAL REGULATORY COMMISSION

[Docket No. R2013-6; Order No. 1702]


Temporary Mailing Promotion

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recent Postal Service filing 
concerning

[[Page 24240]]

temporary price and classification changes associated with offering a 
Technology Credit Promotion. This notice informs the public of the 
Postal Service's filing and takes other administrative steps.

DATES: Comment Date: May 6, 2013.

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

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
at 202-789-6820.

SUPPLEMENTARY INFORMATION: 

Table of Contents

    I. Overview
    II. Administrative Actions
    III. Ordering Paragraphs

I. Overview

    On April 16, 2013, the Postal Service filed notice, pursuant to 39 
U.S.C. 3622 and 39 CFR part 3010, of plans to implement temporary price 
and classification changes associated with offering a Technology Credit 
Promotion.\1\ The promotion is planned to begin on June 1, 2013, and 
expire on May 31, 2014.
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    \1\ United States Postal Service Notice of Market-Dominant Price 
Adjustment (Technology Credit Promotion), April 16, 2013 (Notice).
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    Technology Credit Promotion description. The Technology Credit 
Promotion provides mailers with a one-time credit towards future 
mailings that employ Full Service Intelligent Mail barcodes (IMb). The 
total value of the promotion will be approximately $66 million. The 
amount of the credit will be based on a mailer's FY 2012 mail volumes. 
The purpose of the promotion is to encourage adoption of Full Service 
IMb by offsetting a portion of a mailer's investment in hardware and 
software necessary to support Full Service IMb. Notice at 1.
    The Technology Credit Promotion applies to mail sent as First-Class 
Mail Presorted Letters/Postcards, First-Class Mail Flats, Standard Mail 
Carrier Route, Standard Mail Flats, In-County Periodicals, Outside 
County Periodicals, and Package Services Bound Printed Matter Flats 
(collectively, Qualifying Mail). Id. at 3.
    To be eligible for the promotion, mailers must have mailed more 
than 125,000 Qualifying Mail pieces per business location (i.e., each 
Customer Registration ID or CRID) in FY 2012. Id. In March 2013, the 
Postal Service informed these customers of their eligibility for the 
promotion. Id. at 2. The amount of the promotional credit is based on 
the volume of mail associated with each CRID as shown below.

------------------------------------------------------------------------
                                                               Eligible
                        CRID volume                             credit
------------------------------------------------------------------------
125,001-500,000............................................       $2,000
500,001-2,000,000..........................................        3,000
More than 2,000,000........................................        5,000
------------------------------------------------------------------------

    The credit is granted to any qualifying CRID for future mailings 
containing 90 percent or more mailpieces meeting Full Service IMb 
requirements. The credit is automatically applied as a postage credit 
to a mailer's postage statement upon submission of an eligible mailing. 
The credit is applied in an amount up to the total amount of the 
mailing statement. Any remaining credit is available for subsequent 
mailings. Unused credits expire on May 31, 2014. Id. at 3-4.
    The Postal Service notes that some CRIDs belong to mail service 
providers that do not have their own permit imprints. To include them 
in the promotion, the Postal Service intends to allow the mail service 
providers to apply for a permit imprint without paying the application 
fee. Id. at 4.
    Price cap compliance. The Postal Service notes that it plans to 
implement the Technology Credit Promotion roughly mid-point between two 
annual market dominant price adjustments. It contends that Commission 
rules 3010.20 et seq. do not appear to address the calculation and use 
of pricing authority in such a situation. Id.
    The Postal Service proposes to treat the Technology Credit 
Promotion as a decrease in rates resulting in price authority, and 
delay the use of that pricing authority until the next market dominant 
price adjustment. Id. at 5, 6. It does not wish to ``bank'' the amount 
of the authority if the banked authority could be used only after it 
uses all previously banked authority. Id. at 5, n.3.
    The Postal Service attached an Excel file to its Notice which 
provides a preliminary calculation of price adjustment authority 
associated with the Technology Credit Promotion as summarized below.

------------------------------------------------------------------------
                                                               Pricing
                       Class of mail                          authority
                                                                 (%)
------------------------------------------------------------------------
First-Class Mail...........................................        0.077
Standard Mail..............................................        0.158
Periodicals................................................        0.244
Package Services...........................................        0.014
------------------------------------------------------------------------

    Workshare discounts and preferred rates. The Postal Service asserts 
the Technology Credit Promotion does not affect workshare discounts. 
Id. at 10. Apart from volume thresholds, it also asserts the promotion 
does not exclude any mailer and will therefore not affect compliance 
with any preferred price requirement. Id. at 11.
    Mail Classification Schedule. Proposed changes to the Mail 
Classification Schedule, which describe the Technology Credit Program, 
appear in Attachment A of the Postal Service's Notice.

II. Administrative Actions

    Initiation of proceedings. The Commission hereby establishes Docket 
No. R2013-6, Notice of Price Adjustment (Technology Credit Promotion), 
to conduct the review of the Postal Service's planned price adjustments 
associated with the Technology Credit Promotion. The Postal Service's 
Notice and any subsequent filings in this docket will be posted to the 
Commission's Web site at http://www.prc.gov.
    Public comment period. The Commission's rules provide a period of 
20 days from the date of the Postal Service's filing for public 
comment. 39 CFR 3010.13(a)(5). Comments by interested persons are due 
no later than May 6, 2013.
    Appointment of Public Representative. 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.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. R2013-6 to consider the 
temporary adjustment of prices associated with the Technology Credit 
Promotion identified in the Postal Service's April 16, 2013 Notice.
    2. Comments by interested persons on the planned price adjustments 
are due no later than May 6, 2013.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Robert N. 
Sidman to represent the interests of the general public in this 
proceeding.
    4. The Commission directs the Secretary of the Commission to 
arrange for publication of this notice in the Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2013-09597 Filed 4-23-13; 8:45 am]
BILLING CODE 7710-FW-P