[Federal Register Volume 79, Number 3 (Monday, January 6, 2014)]
[Notices]
[Pages 672-674]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-31510]


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POSTAL REGULATORY COMMISSION

[Docket No. N2014-1; Order No. 1932]


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: January 21, 2014, 4:30 p.m. 
Eastern Time.
    2. Hearing on the Postal Service's direct case: February 11, 2014, 
at 9:00 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:

Table of Contents

I. Introduction
II. Request
III. Further Procedures

I. Introduction

    On December 27, 2013, the Postal Service filed a request pursuant 
to 39 U.S.C. 3661 for an advisory opinion from the Commission regarding 
potential changes in the manner in which it processes and dispatches 
Standard Mail that qualifies for a Destination Sectional Center 
Facility (DSCF) discounted rate.\1\ This operational change may result 
in a nationwide change in the nature of postal services since it would 
change the delivery day service standards for DSCF Standard Mail 
accepted on Fridays and Saturdays. DSCF Standard Mail entered Sunday 
through Thursday is not expected to change under the proposal. Id. at 
5.
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    \1\ United States Postal Service Request for an Advisory Opinion 
on Changes in the Nature of Postal Services, December 27, 2013 
(Request).
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II. Request

    The Postal Service explains that due to the relationship between 
mail entry patterns for DSCF Standard Mail and the applicable 3-day 
service standard, the Postal Service currently delivers a 
disproportionate amount of DSCF Standard Mail on Mondays. Id. at 1. The 
Postal Service's plan, called the ``Load Leveling Plan,'' is to more 
evenly distribute the volume of DSCF Standard Mail pieces delivered by 
carriers throughout the week. Id. at 1-2. The Load Leveling Plan would 
adjust operations in a manner that will level the load of the DSCF 
Standard Mail delivered throughout the week and remove the 
disproportionate burden associated with Monday Standard Mail delivery. 
Id. at 2.
    In support of its Request, the Postal Service filed the direct 
testimony of two witnesses.\2\ The testimonies describe the details of 
the Load Leveling Plan, including the basis for the plan, the process 
through which the plan was developed, and the future implementation of 
the plan. The testimony of witness Malone (USPS-T-1) describes the 
Postal Service's consultations with mailers regarding the load leveling 
issue and its collaboration with mailers in designing and conducting a 
test of the Load Leveling Plan in the service area of the South Jersey 
administrative district. Malone's testimony also summarizes the results 
of the South Jersey Operations Test and the Postal Service's 
expectations regarding a national roll-out of the Load Leveling Plan. 
The testimony of witness Anderson (USPS-T-2) offers observations about 
the effects of the South Jersey Operations Test and also discusses the 
expected impact that the Load Leveling Plan would have in the South 
Jersey District.
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    \2\ Direct Testimony of Linda M. Malone on Behalf of the United 
States Postal Service (USPS-T-1), December 27, 2013; and Direct 
Testimony of Mark H. Anderson on Behalf of the United States Postal 
Service (USPS-T-2), December 27, 2013.
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    As part of its request, the Postal Service filed a notice of two 
Category 2

[[Page 673]]

library references regarding the South Jersey Operations Test.\3\
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    \3\ Notice of United States Postal Service of Filing Library 
References, December 27, 2013, USPS-LR-N2014-1/1, Standard Operating 
Procedures: South Jersey District Destination SCF Standard Mail Load 
Leveling Operations Test; and USPS-LR-N2014-1/2, Results of the 
South Jersey Destination SCF Standard Mail Load Leveling Operations 
Test, December 27, 2013.
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    Timing. The earliest date that the Postal Service intends to make 
the changes discussed in this Request is March 27, 2014--90 days after 
the date of the filing. Request at 2.
    Present distribution of DSCF Standard Mail and Proposed Changes. 
The Postal Service states that of the Standard Mail products, High 
Density and Saturation Letters, High Density and Saturation Flats/
Parcels, Carrier Route, Letters, Flats, and Parcels are eligible for 
the DSCF rate, provided that the mail meets the standards for such a 
rate. Id. at 3. Currently, DSCF Standard Mail has a 3-day service 
standard. Id. Monday is the expected delivery date for the DSCF 
Standard Mail entered on Thursday and Friday, which happens to be two 
of the three heaviest days for acceptance of such mail. Id. at 4. DSCF 
Standard Mail has a significant impact on processing and delivery 
operations through which it passes. Id.
    Summary of Load Leveling Plan. The Postal Service's Load Leveling 
Plan would change the delivery day for DSCF Standard Mail accepted on 
Fridays and Saturdays. Id. DSCF Standard Mail that is accepted before 
the Critical Entry Time (CET) on Friday is proposed to have a Tuesday 
delivery expectation, rather than Monday. Id. at 5. DSCF Standard Mail 
accepted before the CET on Saturday is proposed to have a Wednesday 
delivery expectation, rather than Tuesday. Id.
    The Postal Service asserts that the South Jersey Operations Test 
results indicate load leveling will ease the burden currently placed on 
the network by the convergence of current mail entry patterns and 
applicable service standards and that the test resulted in additional 
benefits, including earlier completion of carrier routes, and earlier 
return of mail collected on carrier routes. Id. at 6.
    Scope of Leveling Plan. The Postal Service intends to implement the 
Load Leveling Plan throughout its network. Id at 6. As a result, 
Standard Mail pieces that qualify for a DSCF rate and are accepted 
after the CET on Thursday, anytime on Friday, or before the CET on 
Saturday at the proper DSCF, are proposed to have a 4-day service 
standard. Id. at 6-7. DSCF Standard Mail pieces that are accepted 
before the Critical Entry Time on Sunday through Thursday will not be 
affected by the Load Leveling Plan. The Postal Service contends that no 
other Standard Mail will be affected. Id. at 7.
    Conformance with Title 39. The Postal Service contends that for the 
reasons explained in the Request and illustrated in the testimony, the 
Load Leveling Plan will allow the Postal Service to increase 
efficiencies in the collection, processing, and delivery of the mail 
and to continue to provide adequate and efficient service to DSCF 
Standard Mail users. Id. The Postal Service believes that the Load 
Leveling Plan helps to fulfill its duty under 39 U.S.C. 403(a) to 
``plan, develop, promote, and provide adequate and efficient postal 
services at fair and reasonable rates and fees.'' Id. It also contends 
that the Load Leveling Plan falls within the scope of its authority 
``to provide for the collection, handling, transportation, delivery, 
forwarding, returning, and holding of mail.'' Id. at 8.
    The Postal Service concludes that the Load Leveling Plan will help 
to ``enhance the value of postal services to both senders and 
recipients'' and ``reasonably assure Postal Service customers delivery 
reliability, speed and frequency consistent with reasonable rates and 
best business practices,'' as articulated in 39 U.S.C. 3691(b)(1)(A) 
and (C), respectively. Id. Last, the Postal Service has determined that 
it is necessary to take steps to level the load on the network now to 
help reduce current and future costs. Id. at 9.
    Rules of Practice. The Postal Service notes there is an ongoing 
Commission rulemaking proceeding in Docket No. RM2012-4 regarding rules 
for revisions to the Commission's rules for advisory opinions.\4\ The 
Postal Service urges the Commission to establish special rules of 
practice to achieve an effective and efficient schedule for this docket 
to evaluate the procedures currently under consideration in Docket No. 
RM2012-4. Request at 9.
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    \4\ Docket No RM2014-4, Modern Rules of Procedure for the 
Issuance of Advisory Opinions in Nature of Service Proceedings, 
April 10, 2012.
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III. Further Procedures

    Further procedures. 39 U.S.C. 3661(c) 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. 
Based on its preliminary review of the Request, the Commission finds it 
appropriate to expedite the proceeding. To facilitate expeditious 
review of the matter, the Commission expects parties to make judicious 
use of discovery, discovery objections, and motions' practice. Every 
effort should be made to confer to resolve disputes informally.
    All interested persons are hereby notified that notices of 
intervention in this proceeding shall be due on or before January 21, 
2014. See 39 CFR 3001.20 and 3001.20a. Consistent with rule 20, each 
person filing a notice of intervention shall, inter alia, specify the 
nature of his/her interest and whether or not he/she requests a 
hearing. See 39 CFR 3001.20. Discovery may be propounded upon filing a 
notice of intervention. Responses to discovery shall be due within 7 
days.
    The procedural schedule shown below the signature of this Order 
will be followed in this proceeding assuming that no participant 
desires to present rebuttal testimony. Participants who wish to present 
rebuttal testimony must notify the Commission of their intent to file, 
and the nature of their rebuttal, by February 11, 2014. Rebuttal 
testimony, if requested, will be due February 18, 2014. The balance of 
the procedural schedule will be revised accordingly.
    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.'' Pursuant to 39 
U.S.C. 505, Anne J. Siarnacki is designated to serve as the Public 
Representative to represent the interests of the general public in this 
proceeding. Neither the Public Representative nor any additional 
persons assigned to assist the Public Representative 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. N2014-1 to consider the 
Postal Service Request referred to in the body of this Order.
    2. The Commission will sit en banc in this proceeding.
    3. The procedural schedule for this proceeding is set forth below 
the signature of this Order.
    4. Pursuant to 39 U.S.C. 505, the Commission appoints Anne J. 
Siarnacki to represent the interests of the general public in this 
proceeding.
    5. The Secretary shall arrange for publication of this Order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.

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                                               Procedural Schedule
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Notices of intervention....................................  January 21, 2014.
Close of discovery on Postal Service direct case...........  January 30, 2014.
Notice of intent to conduct oral cross-examination.........  February 3, 2014.
Hearing on the Postal Service's direct case (if requested)   February 11, 2014.
 (9:00 AM in the Commission's hearing room).
Notice of intent to file rebuttal testimony................  February 11, 2014.
Rebuttal Testimony (if requested)..........................  February 18, 2014.
Filing of Briefs (if no rebuttal testimony)................  February 20, 2014.
Filing of Reply Briefs (if no rebuttal testimony)..........  February 27, 2014.
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[FR Doc. 2013-31510 Filed 1-3-14; 8:45 am]
BILLING CODE 7710-FW-P