Federal Register, Volume 85 Issue 110 (Monday, June 8, 2020)

[Federal Register Volume 85, Number 110 (Monday, June 8, 2020)]
[Notices]
[Pages 35130-35131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-12316]


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POSTAL REGULATORY COMMISSION

[Docket No. R2020-2; Order No. 5526]


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 regarding a Type 1-C Market Dominant rate adjustment. This 
notice informs the public of the filing, invites public comment, and 
takes other administrative steps.

DATES: Comments are due: June 22, 2020.

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. Overview
III. Initial Commission Action
IV. Ordering Paragraphs

I. Introduction

    In accordance with 39 U.S.C. 3622 and 39 CFR part 3030, the Postal 
Service has filed notice of its intent to offer a new rate incentive, 
which would result

[[Page 35131]]

in a rate decrease.\1\ The Postal Service seeks Commission approval of 
this rate incentive and related classification changes. Notice at 2.
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    \1\ United States Postal Service Notice of Type 1-C Market 
Dominant Price Change, June 1, 2020 (Notice).
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II. Overview

    Under the Commission's rules pertaining to Market Dominant rate 
adjustments, a ``Type 1-C'' rate adjustment is ``an adjustment to a 
rate of general applicability that contains only a decrease.'' 39 CFR 
3030.506(a). Such a rate adjustment ``may generate unused rate 
adjustment authority . . .'' in certain circumstances. 39 CFR 
3030.506(b).
    The Postal Service states that it intends to offer an Every Door 
Direct Mail Retail (``EDDM Retail'') discount beginning August 1, 2020. 
Notice at 2. Specifically, the Postal Service asserts that:

    The extraordinary and unprecedented nature of the COVID-19 
pandemic and the current economic downturn has severely harmed many 
businesses. Small local businesses have been hit particularly hard 
as they adopt austerity measures and pull back on their marketing 
efforts in response to business closures or drastic reductions in 
demand. EDDM Retail volume was down in Quarter 2 as compared to the 
same period last year by 21.3 million pieces (or 13.3 percent) while 
revenue fell by $3.2 million dollars (or 11 percent). A decline is 
projected to continue through postal Quarter 3, FY 2020 or further.
    Concurrent with the gradual reopening of the economy, the Postal 
Service intends to offer an EDDM Retail discount to encourage use of 
the mail as an advertising platform to reach existing and new 
customers. This should in turn assist small local businesses in 
recovering from the impact of the pandemic. Postage for all EDDM 
Retail pieces entered between August 1 and September 30, 2020 will 
be $0.172 per piece, a 10 percent reduction off the current 
permanent rate of $0.191. No registration is required: All EDDM 
Retail pieces entered during the promotional period will receive the 
discount. Id. at 3.

    In support of its Notice, the Postal Service asserts that it has 
provided the information required by 39 CFR 3030.512(a), including a 
schedule of planned rates; the planned effective dates; representation 
that public notice of the planned rates has or will be issued; and the 
identity of a responsible Postal Service official available to respond 
to inquiries from the Commission.\2\
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    \2\ Notice at 2. The Postal Service filed its proposed changes 
to the Mail Classification Schedule as an attachment to its Notice. 
See Notice, Attachment A.
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    The Postal Service provides price cap compliance information as 
required by 39 CFR 3030.512(b)(1)-(4). The Postal Service states that 
it is electing to generate unused rate adjustment authority from the 
EDDM Retail discount pursuant to 39 CFR 3030.506(b) and 39 CFR 
3030.512(b)(10). Notice at 4. It states that the workpapers for USPS 
Marketing Mail from Docket No. R2020-1 have been amended consistent 
with 39 CFR 3030.527 and 39 CFR 3030.523(b)(2). Id. The amended 
workpapers have been filed as a library reference.\3\ The Postal 
Service asserts that the discount will generate a small amount of price 
cap space for the USPS Marketing Mail class (approximately $2 million, 
or 0.012 percent). Notice at 4.
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    \3\ Library Reference USPS-LR-R2020-2/1, June 1, 2020.
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    As required by 39 CFR 3030.512(b)(7), the Postal Service provides a 
discussion of how this planned rate adjustment is designed to help 
achieve the objectives listed in 39 U.S.C. 3622(b), and properly takes 
into account the factors in 39 U.S.C. 3622(c). Id. at 5.
    With regard to 39 CFR 3030.512(b)(5)-(6), the Postal Service 
asserts that the EDDM Retail discount would have no effect on workshare 
discounts approved in Docket No. R2020-1. Id. With regard to 39 CFR 
3030.512(b)(8), the Postal Service asserts that the EDDM Retail 
discount will move the revenue-per-piece ratio calculated in Docket No. 
R2020-1 closer to 60 percent, as required by 39 U.S.C. 3626(a)(6). Id. 
at 5-6. The Postal Service asserts that no other portions of 39 U.S.C. 
3626, 3627, or 3629 are implicated in this matter. Id.

III. Initial Commission Action

    The Commission establishes Docket No. R2020-2 to consider the 
matters raised by the Notice. The Commission invites comments on 
whether the Postal Service's filing is consistent with the requirements 
of 39 U.S.C. 3622 and 3626, as well as 39 CFR part 3030. Comments are 
due June 22, 2020. See 39 CFR 3030.511(a)(5); 3010.108. These filings 
can be accessed via the Commission's website (http://www.prc.gov).
    The Commission appoints Natalie R. Ward to serve as an officer of 
the Commission to represent the interests of the general public in 
these proceedings (Public Representative).

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. R2020-2 to consider the 
matters raised by the Notice.
    2. Comments are due June 22, 2020.
    3. Pursuant to 39 U.S.C. 505, Natalie R. Ward is appointed to serve 
as an officer of the Commission to represent the interests of the 
general public in these proceedings (Public Representative).
    4. The Secretary shall arrange for publication of this Order in the 
Federal Register.

    By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2020-12316 Filed 6-5-20; 8:45 am]
BILLING CODE 7710-FW-P