[Federal Register Volume 84, Number 229 (Wednesday, November 27, 2019)]
[Notices]
[Pages 65432-65433]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25705]


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POSTAL REGULATORY COMMISSION

[Docket No. R2020-1; Order No. 5318]


Market Dominant Price Adjustment

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently filed Postal Service 
response to Order No. 5203 to set the price for 5-Digit Automation 
Presort Letters and address the inflation-based rate adjustments 
affecting market dominant domestic and international products and 
services, along with temporary mailing promotions and numerous proposed 
classification changes. The adjustments and other changes are scheduled 
to take effect January 26, 2020. This notice informs the public of the 
filing, invites public comment, and takes other administrative steps.

DATES: Comments are due: November 27, 2019.

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 and Overview
II. Background
III. Response to Order No. 5302
IV. Initial Administrative Actions
V. Ordering Paragraphs

I. Introduction and Overview

    In Order No. 5302, the Commission remanded the Postal Service's 
planned First-Class Mail price adjustments \1\ for non-compliance with 
certain legal requirements. On November 20, 2019, the Postal Service 
filed a Response to Order No. 5302 proposing to set the price for 5-
Digit Automation Presort Letters as $0.389, instead of $0.391 as 
previously proposed.\2\ The Postal Service proposes to maintain all 
other prices and associated classification changes previously proposed 
for First-Class Mail and the intended effective date of January 26, 
2020. Response to Order No. 5302 at 1, 20.
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    \1\ Order Remanding Price Adjustments for First-Class Mail, 
November 13, 2019, at 2, 25-26 (Order No. 5302).
    \2\ United States Postal Service Response to Order No. 5302, 
November 20, 2019, at 11-12 (Response to Order No. 5302).
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II. Background

    On October 9, 2019, the Postal Service filed a notice of inflation-
based price adjustments affecting market dominant domestic and 
international products and services, along with temporary mailing 
promotions and associated proposed classification changes to the Mail 
Classification Schedule (MCS).\3\ On November 13, 2019, the Commission 
determined that the Postal Service's planned First-Class Mail price 
adjustments would exceed the price cap limitations specified by 39 
U.S.C. 3622(d), as calculated in accordance with 39 CFR 3010.21. Order 
No. 5302 at 2. The Commission identified that the Postal Service made 
impermissible adjustments to the billing determinants related to 
Inbound Letter Post, resulting in the Postal Service miscalculating the 
percentage change in rates for First-Class Mail. Id. Accordingly, the 
Commission remanded all planned First-Class Mail price adjustments to 
allow the Postal Service to modify its proposal to comply with 
applicable law. Id. at 2, 25-26.
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    \3\ United States Postal Service Notice of Market-Dominant Price 
Change, October 9, 2019 (Notice).
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    Additionally, the Commission corrected other technical issues with 
the Postal Service's supporting workpapers and described issues raised 
by commenters concerning the Postal Service's compliance with the 
requirements of 39 CFR 3010.12(b)(6), (7) and (12). Id. at 2-3, 20-21, 
23-25. The Commission reserved final disposition of issues, including 
comments, relating to First-Class Mail pending review of the Postal 
Service's revised proposal. Id. at 2, 25-26. The Commission also 
reserved discussion of the planned price adjustments and mail 
classification changes for USPS Marketing Mail, Periodicals, Package 
Services, and Special Services for a separate order. Id. at 1.

III. Response to Order No. 5302

    In its Response to Order No. 5302, the Postal Service proposes to 
set the price for 5-Digit Automation Presort Letters as $0.389, instead 
of $0.391 as previously proposed. Response to Order No. 5302 at 11-12. 
The Postal Service proposes to maintain all other prices and associated 
classification changes previously proposed for First-Class Mail and the 
intended effective date of January 26, 2020. Id. at 1, 20. The Postal 
Service asserts that its discussion of the section 3622 objectives and 
factors provided in its Notice continues to apply. Id. at 13. It also 
discusses how the new price for 5-Digit Automation Presort Letters 
complies with section 3622 objectives and factors. Id. at 13-16. In 
addition, the Postal Service responds to comments relating to other 
First-Class Mail products. Id. at 16-18.
    However, because the Postal Service disagrees with the Commission's 
rejection of the billing determinants adjustment for Inbound Letter 
Post to reflect the expected July 1, 2020 transfer of Inbound Letter 
Post small packet and bulky letter mailpieces, it requests that the 
Commission reconsider. Id. at 1, 9. The Postal Service asserts that the 
fundamental premise upon which the Commission's rejection of the 
Inbound Letter Post adjustment rests, that 39 CFR 3010.23(d)(2) does 
not permit for billing determinant adjustments for classification 
changes that occur after a price change, is illogical and unsound. Id. 
at 3-10. The Postal Service claims that the Commission's treatment of 
the Inbound Letter Post adjustment in Order No. 5302 contradicts its 
treatment of promotions and the plain language of 39 CFR 3010.23(d)(2). 
Id. at 4-6, 8. The Postal Service filed workpapers that reflect the 
inclusion of the Inbound Letter Post adjustment. Id. at 1-2.
    In the alternative, the Postal Service requests that the Commission 
accelerate the transfer of Inbound Letter Post small packet and bulky 
letter mailpieces from the stated expected July 1, 2020 implementation 
date to January 1, 2020. Id. at 2, 10. To reflect a January 1, 2020 
transfer of these mailpieces, the Postal Service filed workpapers that 
remove Inbound Letter Post small packets and bulky letters from the 
First-Class Mail price cap calculation entirely. Id. at 10.

IV. Initial Administrative Actions

    Pursuant to 39 CFR 3010.11(g), the Commission invites comments from 
interested persons on whether the Response to Order No. 5302 is 
consistent with the applicable statutory and regulatory requirements, 
including 39 U.S.C. 3622 and 39 CFR part 3010. Comments are due no 
later than November 27, 2019.\4\
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    \4\ As stated previously, the Commission continues to use the 7-
day comment period as set forth in 39 CFR 3010.11(g). Order No. 5302 
at 3. The Commission acknowledges that the Postal Service seeks 
issuance of a final order by December 12, 2019. See Response to 
Order No. 5302 at 21. However, the Commission notes that in order to 
sufficiently address the issues identified in Carlson v. Postal Reg. 
Comm'n, 938 F.3d 337 (D.C Cir. 2019), the Commission's determination 
may exceed the 14-day deadline set forth in 39 CFR 3010.11(h). Order 
No. 5302 at 3.

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[[Page 65433]]

    The public portions of the Postal Service's filing are available 
for review on the Commission's website (http://www.prc.gov). Comments 
and other material filed in this proceeding will be available for 
review on the Commission's website, unless the information contained 
therein is subject to an application for non-public treatment. The 
Commission's rules on non-public materials (including access to 
documents filed under seal) appear in 39 CFR part 3007.
    Pursuant to 39 U.S.C. 505, Anne C. O'Connor continues to be 
designated as an officer of the Commission (Public Representative) to 
represent the interests of the general public in this proceeding.\5\
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    \5\ See Notice and Order on Price Adjustments and Classification 
Changes for Market Dominant Products, October 10, 2019, at 4, 5 
(Order No. 5273).
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V. Ordering Paragraphs

    It is ordered:
    1. Comments on the planned price adjustments and related 
classification changes for First-Class Mail, as amended, are due no 
later than November 27, 2019.
    2. Pursuant to 39 U.S.C. 505, Anne C. O'Connor will continue to 
serve as an officer of the Commission (Public Representative) to 
represent 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.
Darcie S. Tokioka,
Acting Secretary.
[FR Doc. 2019-25705 Filed 11-26-19; 8:45 am]
BILLING CODE 7710-FW-P