[Federal Register Volume 80, Number 78 (Thursday, April 23, 2015)]
[Notices]
[Pages 22748-22749]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-09446]


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POSTAL REGULATORY COMMISSION

[Docket No. R2015-4; Order No. 2444]


Market Dominant Price Adjustment

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently filed Postal Service 
notice concerning amended rate adjustments and classification changes 
affecting Standard Mail, Periodicals, and Package Services. The amended 
rate adjustments and other changes are scheduled to take effect May 31, 
2015. This notice informs the public of the filing, invites public 
comment, and takes other administrative steps.

DATES: Comments are due: April 23, 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:

Table of Contents

I. Introduction
II. Background
III. Order No. 2398 and the Postal Service's Response
IV. Notice of Commission Action
V. Ordering Paragraphs

I. Introduction

    In Order No. 2398, the Commission remanded the Postal Service's 
planned rates for Standard Mail, Periodicals, and Package Services for 
non-compliance with certain legal requirements.\1\ On April 16, 2015, 
the Postal Service filed a Response to Order No. 2398 with revised 
Standard Mail and Periodicals prices, updated Mail Classification (MCS) 
pages, updated workshare discount tables, updated exigent surcharges 
affected by the revised prices, and revised price cap calculation 
workpapers for Standard Mail, Periodicals, and Package Services.\2\ The 
revised prices are scheduled to go into effect on May 31, 2015.\3\
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    \1\ Order on Amended Price Adjustments for Standard Mail, 
Periodicals, and Package Services Products, March 18, 2015 (Order 
No. 2398).
    \2\ Response of the United States Postal Service to Order No. 
2398, April 16, 2015, at 2 (Response to Order No. 2398).
    \3\ Id. at 3. The Postal Service initially intended to implement 
the market dominant price adjustments on April 26, 2015. United 
States Postal Service Notice of Market-Dominant Price Adjustment, 
January 15, 2015 (Notice). On March 31, 2015, the Postal Service 
announced that it was delaying the implementation of the proposed 
price adjustments. Docket Nos. R2015-4 and CP2015-33, Notice of the 
United States Postal Service of Delayed Implementation of First-
Class Mail, Special Services, and Competitive Prices, March 31, 
2015. As a result, the Commission amended its orders approving the 
First-Class Mail and Special Services price adjustments to account 
for the delay. Order No. 2426, Order Amending Order Nos. 2365 and 
2388, April 7, 2015. The Postal Service now plans to implement all 
price adjustments on May 31, 2015. Response to Order No. 2398 at 3. 
The Postal Service states that it plans to make an exception for the 
Earned Value Reply Mail promotion, which it plans to begin on May 1, 
2015, as initially planned. Id.
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II. Background

    On January 15, 2015, the Postal Service filed notice of a market 
dominant price adjustment, proposing price adjustments for all five 
classes of market dominant mail and associated mail classification 
changes. Notice at 1. In Order Nos. 2365 and 2388, the Commission 
approved the proposed price adjustments and mail

[[Page 22749]]

classification changes for the First-Class Mail and Special Services 
classes respectively.\4\ In Order No. 2378, the Commission remanded the 
proposed price adjustments for the Standard Mail, Periodicals, and 
Package Services classes for failure to comply with certain legal 
requirements.\5\
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    \4\ Order No. 2365, Order on Price Adjustments for First-Class 
Products and Related Mail Classification Changes, February 24, 2015; 
Order No. 2388, Order on Price Adjustments for Special Services 
Products and Related Mail Classification Changes, March 10, 2015.
    \5\ Order on Price Adjustments for Standard Mail, Periodicals, 
and Package Services Products, March 6, 2015 (Order No. 2378).
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    On March 12, 2015, the Postal Service filed its response to Order 
No. 2378.\6\ The Postal Service stated that it complied with each of 
the Commission's directives and recommendations from Order No. 2378 and 
included revised Standard Mail and Periodicals prices, updated Mail 
Classification (MCS) pages, updated workshare discount tables, updated 
exigent surcharges affected by the revised prices, and revised price 
cap calculation workpapers for Standard Mail, Periodicals, and Package 
Services with its response. Id. at 1-2.
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    \6\ Response of the United States Postal Service to Order No. 
2378, March 12, 2015.
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    On March 18, 2015, the Commission issued Order No. 2398 and found 
that the Postal Service had not fully complied with applicable 
statutory and regulatory requirements and Order No. 2378. Order No. 
2398 at 2. As a result, the Commission remanded the revised price 
adjustments for the Standard Mail, Periodicals, and Package Services 
classes for further revision, correction, and clarification. Id. The 
Commission explained that after the Postal Service files an amended 
notice of rate adjustment addressing the deficiencies described in 
Order No. 2398, the Commission would allow seven days for public 
comment in accordance with 39 CFR 3010.11(g). Id.

III. Order No. 2398 and the Postal Service's Response

    Standard Mail. In Order No. 2398, the Commission found that the 
Postal Service did not equalize all nonprofit and commercial discounts 
as it was ordered to in Order No. 2378. Order No. 2398 at 3-5.\7\ In 
addition, the Commission required the Postal Service to provide the 
calculations used to develop the exigent surcharges for each new 
Standard Mail Flats Sequencing System (FSS) category to assist the 
Commission in verifying the calculated exigent surcharges. Order No. 
2398 at 4-5.
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    \7\ See also Order No. 2378 at 8-9.
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    In response to Order No. 2398, the Postal Service states that it 
has equalized all nonprofit and commercial discounts. Response to Order 
No. 2398 at 4. The Postal Service explains that it also adjusted other 
discount relationships that were out of alignment in its prior filings. 
Id. at 4-5. It also states that it has corrected 12 exigent surcharges 
and provided the calculations used to develop the exigent surcharges 
for each Standard Mail FSS price category. Id. at 6.
    Periodicals. In Order No. 2398, the Commission ordered the Postal 
Service to provide a revised price cap calculation that addressed the 
deficiencies identified by the Commission. Order No. 2398 at 6-7. In 
addition, the Commission found the Postal Service must demonstrate 
compliance with 39 CFR 3010.12(b)(4). Id. at 7.
    In response to Order No. 2398, the Postal Service proposes a 
revised set of Periodicals prices and a revised price cap calculation 
that address the Commission's directives. Response to Order No. 2398 at 
7. The Postal Service explains that it has made some adjustments to the 
Commission's suggested approach, corrected additional errors it has 
identified, and increased the discount provided by the per-piece 
editorial adjustment for Outside County Periodicals. Id. at 8-9. The 
Postal Service states that the revised price adjustments result in a 
total percentage price increase of 1.966 percent for the Periodicals 
class, which uses all of its price adjustment authority for the class. 
Id. at 9.
    Package Services. In Order No. 2398, the Commission found that it 
was unable to make the finding required under 39 U.S.C. 3622 and 39 CFR 
3010.11 due to inaccurate billing determinant adjustments and data 
inconsistencies. Order No. 2398 at 9-11. The Commission identified 
specific information the Postal Service must provide in its response to 
show the deficiencies had been corrected. Id. at 11.
    In response to Order No. 2398, the Postal Service states that it 
has provided the information required by the Commission in Order No. 
2398. Response to Order No. 2398 at 10-23. In addition, the Postal 
Service files revised price cap calculation workpapers, which it 
represents correct the issues previously identified by the Commission. 
Id. at 24.

IV. Notice of Commission Action

    In accordance with 39 U.S.C. 3622 and 39 CFR part 3010, the 
Commission will review the Postal Service's amended price adjustments 
in Docket No. R2015-4. The Commission invites comments from interested 
persons on whether the price adjustments, as amended in the Response to 
Order No. 2378 and Response to Order No. 2398, are consistent with 39 
U.S.C. 3622 and the requirements of 39 CFR part 3010. Comments are due 
no later than April 23, 2015. 39 CFR 3010.11(g). The Postal Service's 
filing can be accessed via the Commission's Web site (http://www.prc.gov).
    Pursuant to 39 U.S.C. 505, James Waclawski will continue to serve 
as an officer of the Commission (Public Representative) representing 
the interests of the general public in this proceeding.\8\
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    \8\ See Order No. 2327, Notice and Order on Rate Adjustments, 
Classification Changes, and Temporary Promotions for Market Dominant 
Products, January 20, 2015, at 5.
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V. Ordering Paragraphs

    It is ordered:
    1. Comments on the revised planned price adjustments and related 
classification changes for Standard Mail, Periodicals, and Package 
Services are due no later than April 23, 2015.
    2. Pursuant to 39 U.S.C. 505, James Waclawski will continue to 
serve as an officer of the Commission (Public Representative) 
representing the interests of the general public in this proceeding.
    3. The Commission directs the Secretary of the Commission to 
arrange for prompt publication of this notice in the Federal Register.

    By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2015-09446 Filed 4-22-15; 8:45 am]
 BILLING CODE 7710-FW-P