[Federal Register Volume 80, Number 123 (Friday, June 26, 2015)]
[Notices]
[Pages 36860-36861]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-15700]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2015-55 and CP2015-83; Order No. 2549]


New Postal Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recent Postal Service filing 
concerning the addition of Global Expedited Package Services-Non-
Published Rates Contract 7 (GEPS-NPR 7) to the competitive product 
list. This notice informs the public of the filing, invites public 
comment, and takes other administrative steps.

DATES: Comments are due: June 29, 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: 

[[Page 36861]]

Table of Contents

I. Introduction
II. Notice of Commission Action
III. Ordering Paragraphs

    In accordance with 39 U.S.C. 3642 and 39 CFR 3020.30 et seq., and 
Order No. 2513,\1\ the Postal Service filed a formal request and 
associated supporting information to add Global Expedited Package 
Services-Non-Published Rates Contract 7 (GEPS-NPR 7) to the competitive 
product list.\2\ The Postal Service states the addition of GEPS-NPR 7 
to the competitive product list is necessary due to its creation of 
both a Management Analysis of the Prices and Methodology for 
Determining Prices for Negotiated Service Agreements under Global 
Expedited Package Services-Non-Published Rates 7 (GEPS-NPR 7 Management 
Analysis), and an accompanying financial model that revises the 
previously filed GEPS-NPR 6 Management Analysis and its financial 
model. Request at 2-3.
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    \1\ Docket Nos. MC2015-23 and CP2015-65, Order Approving Changes 
in Prices and Model Contract and Adding Redesignated Global 
Expedited Package Services-Non-Published Rates 6 to the Competitive 
Product List, May 27, 2015 at 7-8 (Order No. 2513).
    \2\ Request of the United States Postal Service to Add Global 
Expedited Package Services-Non-Published Rates 7 (GEPS-NPR 7) to the 
Competitive Product List and Notice of Filing GEPS-NPR 7 Model 
Contract and Application for Non-Public Treatment of Materials Filed 
Under Seal, June 19, 2015 (Request).
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    To support its Request, the Postal Service filed the following 
attachments:
     Attachment 1, an application for non-public treatment of 
materials filed under seal;
     Attachment 2A, a redacted version of Governors' Decision 
No. 11-6;
     Attachment 2B, a revised version of the Mail 
Classification Schedule section 2510.8 GEPS-NPR;
     Attachment 2C, a redacted version of GEPS-NPR 7 Management 
Analysis;
     Attachment 2D, Maximum and Minimum Prices for Priority 
Express Mail International (PMEI), Priority Mail International (PMI), 
and Global Express Guaranteed (GXG);
     Attachment 2E, the certified statement concerning the 
prices for applicable negotiated service agreements under GEPS-NPR 7, 
required by 39 CFR 3015.5(c)(2);
     Attachment 3, a Statement of Supporting Justification, 
which is filed pursuant to 39 CFR 3020.32; and
     Attachment 4, a redacted version of the GEPS-NPR 7 model 
contract.
    In a Statement of Supporting Justification, Giselle Valera, 
Managing Director and Vice President, Global Business, asserts the 
product is designed to increase efficiency of the Postal Service's 
process, as well as enhance its ability to compete in the marketplace. 
Request, Attachment 3 at 1. She contends GEPS-NPR 7 belongs on the 
competitive product list as it is part of a market over which the 
Postal Service does not exercise market dominance,\3\ is not subsidized 
by market dominant products, covers costs attributable to it, and does 
not cause competitive products as a whole to fail to make the 
appropriate contribution to institutional costs. Request at 1, 3.
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    \3\ The Postal Service claims it does not exercise sufficient 
market power to set the price of PMEI, PMI, and GXG substantially 
above costs, raise prices significantly, decrease quality, or 
decrease output, without risk of losing a significant level of 
business to other firms offering similar products. Id. at 3-4; 39 
U.S.C. 3642(b).
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    The Postal Service included a redacted version of the GEPS-NPR 7 
model contract with the Request. Id. Attachment 4. The Postal Service 
represents the GEPS-NPR 7 model contract is a slight modification of 
the GEPS-NPR 6 model contract approved by the Commission in Order No. 
2513. Request at 4.
    The Postal Service represents it will notify each GEPS-NPR 7 
customer of the contract's effective date no later than 30 days after 
receiving the signed agreement from the customer. Id. Attachment 4 at 
4. Each contract will expire the later of one year from the effective 
date or the last day of the month which falls one calendar year from 
the effective date, unless terminated sooner. Id. The Postal Service 
represents that the contract is consistent with 39 U.S.C. 3633(a). 
Request at 4, 8; id. Attachment 3.
    The Postal Service filed much of the supporting materials, 
including an unredacted model contract, under seal. Request, Attachment 
1. It maintains that the redacted portions of the materials should 
remain confidential as sensitive business information. Request at 4. 
This information includes sensitive commercial information concerning 
the incentive discounts and their formulation, applicable cost 
coverage, non-published rates, as well as some customer-identifying 
information in future signed agreements. Id. The Postal Service asks 
the Commission to protect customer-identifying information from public 
disclosure for ten years after the date of filing with the Commission, 
unless an order is entered to extend the duration of that status. Id. 
at 11.

II. Notice of Commission Action

    The Commission establishes Docket Nos. MC2015-55 and CP2015-83 to 
consider the Request pertaining to the proposed GEPS-NPR 7 product and 
the related model contract, respectively.
    The Commission invites comments on whether the Postal Service's 
filings in the captioned dockets are consistent with the policies of 39 
U.S.C. 3632, 3633, or 3642, 39 CFR part 3015, and 39 CFR part 3020, 
subpart B. Comments are due no later than June 29, 2015. The public 
portions of these filings can be accessed via the Commission's Web site 
(http://www.prc.gov).
    The Commission appoints Lyudmila Y. Bzhilyanskaya to serve as 
Public Representative in these dockets.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2015-55 and CP2015-83 
to consider the matters raised in each docket.
    2. Pursuant to 39 U.S.C. 505, Lyudmila Y. Bzhilyanskaya is 
appointed to serve as an officer of the Commission to represent the 
interests of the general public in these proceedings (Public 
Representative).
    3. Comments are due no later than June 29, 2015.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2015-15700 Filed 6-25-15; 8:45 am]
 BILLING CODE 7710-FW-P