[Federal Register Volume 80, Number 23 (Wednesday, February 4, 2015)]
[Notices]
[Pages 6140-6141]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-02124]


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POSTAL REGULATORY COMMISSION

[Docket Nos. CP2015-33; Order No. 2333]


Change in Postal Rates

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recent Postal Service filing 
concerning the Postal Service's intention to changes rates of general 
applicability for competitive products. This notice informs the public 
of the filing, invites public comment, and takes other administrative 
steps.

DATES: Comments are due: February 9, 2015.

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: David A. Trissell, General Counsel, at 
202-789-6820.

SUPPLEMENTARY INFORMATION: On January 26, 2015, the Postal Service 
filed notice with the Commission concerning changes in rates of general 
applicability for competitive products.\1\ The Notice also includes 
related classification changes. The Postal Service represents that, as 
required by the Commission's rules, 39 CFR 3015.2(b), the Notice 
includes an explanation and justification for the changes, the 
effective date, and a schedule of the changed rates. Id. at 1. The 
changes are scheduled to become effective April 26, 2015. Id.
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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. 14-5, January 26, 2015 (Notice). 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 Notice is Governors' Decision No. 14-05, which 
evaluates the new prices and classification changes in accordance with 
39 U.S.C. 3632, 3633, and 39 CFR 3015.2.\2\ The Governors' Decision 
provides an analysis of the competitive products' price and 
classification changes intended to demonstrate that the changes comply 
with 39 U.S.C. 3633(a) and 39 CFR part 3015. Id. at 1.
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    \2\ Decision of the Governors of the United States Postal 
Service on Changes in Rates and Classes of General Applicability for 
Competitive Products (Governors' Decision No. 14-05), December 5, 
2014 (Governors' Decision No. 14-05).
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    The attachment to the Governors' Decision sets forth the price 
changes and includes draft Mail Classification Schedule (MCS) language 
for competitive products of general applicability. Selected highlights 
of the price and classification changes follow.
    Priority Mail Express. The existing structure of Priority Mail 
Express Retail, Commercial Base, and Commercial Plus price categories 
do not change. Some minor classification changes are made, but no price 
changes are proposed.
    Priority Mail. The existing structure of Priority Mail Retail, 
Commercial Base, and Commercial Plus price categories do not change. 
Some minor classification changes are made, but no price changes are 
proposed.
    Parcel Select. Non-Lightweight Parcel Select prices increase, on 
average, by 8.0 percent. The proposed prices for Lightweight Parcel 
Select increase by

[[Page 6141]]

9.8 percent. For destination entry parcels, the average price increases 
by 7.3 percent. For non-destination entry parcels, the average price 
increase is 8.7 percent.
    Parcel Return Service. Overall, Parcel Return Service prices 
increase by 4.8 percent. Proposed prices for returned parcels retrieved 
from a return Network Distribution Center increase by 5.7 percent, 
prices for returned parcels retrieved from a return Sectional Center 
Facility increase by 5.0 percent, and prices for parcels picked up at a 
return delivery unit increase by 4.7 percent. The elimination of Parcel 
Return Service-Full Network is being proposed due to insufficient 
volumes, and to simplify product offerings.
    First-Class Package Service. Overall, First-Class Package Service 
prices increase by 5.1 percent. The transfer of First-Class Mail Retail 
parcels to the competitive product list is pending before the 
Commission.\3\ If the transfer is approved, First-Class Mail Retail 
prices increase by 22.0 percent. If the transfer is not approved, the 
First-Class Mail Retail changes to the MCS are not proposed to be 
adopted.
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    \3\ Docket No. MC2015-7, Request of the United States Postal 
Service to Transfer First-Class Mail Parcels to the Competitive 
Product List, November 14, 2014.
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    Standard Post. Standard Post prices increase by an average of 11.4 
percent. Prices in Zones 1-4 continue to align with the Retail Priority 
Mail prices for those zones. Thus, customers continuing to ship in 
those price cells will receive Priority Mail service, and will default 
to Standard Post service only if the item contains hazardous material 
or is otherwise not permitted to travel by air transportation.
    Round-Trip Mailer. At the time Governors' Decision No. 14-05 was 
issued, the addition of Round-Trip Mailer to the competitive product 
list was pending before the Commission. If approved, prices for Round-
Trip Mailer would increase by 2.3 percent and classification changes to 
the MCS would be adopted. On December 23, 2014, the Commission denied 
the request to add Round-Trip Mailer to the competitive product 
list.\4\ Given the Commission's denial, this request is moot.
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    \4\ Docket Nos. MC2013-57 and CP2013-75, Order No. 2306, Order 
Denying Request, December 23, 2014.
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    Domestic Extra Services. Prices for several Domestic Extra Services 
are proposed to increase. The retail counter enrollment fee for 
Performance Forward Service (PFS) increases to $18.00. The online 
enrollment fee for PFS increases to $16.50. The weekly reshipment fee 
for PFS increases to $18.00. Prices for Adult Signature service will 
increase to $5.50 for the basic service and $5.75 for the person-
specific service. Address Enhancement Service prices increase up to 4.7 
percent. Competitive Post Office Box prices increase by, on average, 
3.5 percent. The proposed price increase for Package Intercept Service 
is 5.7 percent.
    Global Express Guaranteed and Priority Mail Express International. 
Overall, Global Express Guaranteed (GXG) service prices increase by 7.2 
percent. Priority Mail Express International (PMEI) service prices 
increase by 6.7 percent. The existing structure of GXG Retail, 
Commercial Base, and Commercial Plus price categories do not change.
    Priority Mail International. Overall, Priority Mail International 
(PMI) prices increase by 5.5 percent. The existing structure of PMI 
Flat Rate, Retail, Commercial Base, and Commercial Plus price 
categories do not change, except for the establishment of new zoned 
prices based on origin ZIP Code for PMI destined to Canada. The maximum 
weight for PMI Rate Group 17 (Netherlands) will increase to 66 pounds.
    International Priority Airmail/International Surface Air Lift. The 
published prices for International Priority Airmail and International 
Surface Air Lift are proposed to increase by 4.5 percent.
    Airmail M-Bags. The published prices for Airmail M-Bags increase by 
6.8 percent.
    First-Class Package International Service. Overall, prices for 
First-Class Package International Service (FCPIS) increase by 7.2 
percent. The existing structure of FCPIS Retail, Commercial Base, and 
Commercial Plus price categories do not change.
    International Ancillary Services. Certificates of Mailing prices 
are proposed to increase by 2.5 percent. Registered Mail prices 
increase by 2.2 percent. International Return Receipt prices increase 
by 2.7 percent.
    The insurance tables for PMEI and PMI will be combined to simplify 
pricing. The International Business Return Service Competitive Contract 
product is to be renumbered. Provisions concerning Inbound 
International Return Receipt and Inbound International Insurance are to 
be removed from the MCS.
    Further details of these changes may be found in the attachment to 
Governors' Decision No. 14-05 which is included as part of the Notice 
and contains proposed changes to the MCS in legislative format.
    The Notice also includes three additional attachments:
     A redacted table showing FY 2015 projected volumes, 
revenues, attributable costs, contribution, and cost coverage for each 
product, assuming implementation of the new prices on April 26, 2015.
     A redacted table showing FY 2015 projected volumes, 
revenues, attributable costs, contribution, and cost coverage for each 
product, assuming a hypothetical implementation of the new prices on 
October 1, 2014.
     An application for non-public treatment of the 
attributable costs, contribution, and cost coverage data in the 
unredacted version of the annex to Governors' Decision No. 14-05, as 
well as the supporting materials for the data.
    The table referenced above shows that the share of institutional 
cost generated by competitive products, assuming implementation of new 
prices on April 26, 2015, is expected to be 15.3 percent.
    Notice. The Commission establishes Docket No. CP2015-33 to consider 
the Postal Service's Notice. Interested persons may express views and 
offer comments on whether the planned changes are consistent with 39 
U.S.C. 3632, 3633, 3642, 39 CFR part 3015, and 39 CFR 3020 subparts B 
and E. Comments are due no later than February 9, 2015. For specific 
details of the planned price and classification changes, interested 
persons are encouraged to review the Notice, which is available on the 
Commission's Web site, www.prc.gov.
    Pursuant to 39 U.S.C. 505, Kenneth E. Richardson is appointed to 
serve as Public Representative to represent the interests of the 
general public in this docket.
    It is ordered:
    1. The Commission establishes Docket No. CP2015-33 to provide 
interested persons an opportunity to express views and offer comments 
on whether the planned changes are consistent with 39 U.S.C. 3632, 
3633, 3642, 39 CFR part 3015, and 39 CFR 3020 subparts B and E.
    2. Comments are due no later than February 9, 2015.
    3. The Commission appoints Kenneth E. Richardson to serve as Public 
Representative to represent the interests of the general public in this 
proceeding.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2015-02124 Filed 2-3-15; 8:45 am]
BILLING CODE 7710-FW-P