[Federal Register Volume 85, Number 114 (Friday, June 12, 2020)]
[Notices]
[Page 35959]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-12756]


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POSTAL REGULATORY COMMISSION

[Docket No. CP2020-166; Order No. 5535]


Changes in Rates of General Applicability

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently filed Postal Service 
Notice regarding changes in rates of general applicability and 
associated classification changes for Priority Mail Express and 
Priority Mail to implement a new Loyalty Program. This notice informs 
the public of the filing, invites public comment, and takes other 
administrative steps.

DATES: Comments are due: June 19, 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 and Overview
II. Loyalty Program
III. Initial Administrative Actions
IV. Ordering Paragraphs

I. Introduction and Overview

    On June 5, 2020, the Postal Service filed notice with the 
Commission concerning changes in rates of general applicability and 
associated classification changes for Priority Mail Express and 
Priority Mail to implement a new Loyalty Program.\1\ The Postal Service 
represents that, as required by 39 CFR 3035.102(b), the Notice includes 
an explanation and justification for the changes, the effective date, 
and a schedule showing new prices and related classification 
changes.\2\ The changes are scheduled to take effect on August 1, 2020. 
Notice at 1.
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    \1\ United States Postal Service Notice of Changes in Rates of 
General Applicability for Loyalty Program, June 5, 2020 (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.
    \2\ See Notice at 1. In the Notice, the Postal Service cites to 
39 CFR 3015.2(b). Id. The rules appearing in title 39 of the Code of 
Federal Regulations were re-organized effective April 20, 2020. See 
Docket No. RM2019-13, Order Reorganizing Commission Regulations and 
Amending Rules of Practice, January 16, 2020 (Order No. 5407); 
Docket No. RM2019-13, Notice of Errata, April 23, 2020. Prior to 
this reorganization, rules on rates for competitive products 
appeared in 39 CFR part 3015. This Order cites to the re-organized 
rules.
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    Attached to the Notice is Governors' Decision No. 20-2, which 
states the new prices are in accordance with 39 U.S.C. 3632 and 3633 
and 39 CFR 3035.102(b).\3\ The attachment to the Governors' Decision 
sets forth the price changes and includes draft Mail Classification 
Schedule (MCS) language for Priority Mail Express and Priority Mail 
related to the Loyalty Program. Id.
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    \3\ Notice, Decision of the Governors of the United States 
Postal Service on Changes in Rates of General Applicability for 
Competitive Products (Governors' Decision No. 20-2), at 1 
(Governors' Decision No. 20-2).
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    The Postal Service includes a non-public annex showing FY 2020 
projected volumes, revenues, attributable costs, contribution, and cost 
coverage for Priority Mail Express and Priority Mail. Notice at 1. The 
Postal Service states that a full rollforward forecast is not 
available, but it is filing supporting data for the affected products 
in accordance with Order No. 1062. Id. The Notice includes an 
application for non-public treatment of the attributable costs, 
contribution, and cost coverage data in the unredacted version of the 
annex, as well as the supporting materials for the data. Notice at 1-2. 
The Postal Service filed a redacted, public version of the annex with 
the Notice.\4\
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    \4\ Notice at 2; see Excel file ``loyaltypgm 
annex.redacted.xls''.
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II. Loyalty Program

    The Notice states that the Loyalty Program applies to Postal 
Service business customers using Click-N-Ship for Priority Mail Express 
and Priority Mail shipping at Retail rates. Notice at 2. Beginning on 
August 1, 2020, the Postal Service will automatically enroll these 
customers in the Basic tier of the Loyalty Program. Id. On January 1, 
2021, the Loyalty Program will expand to a three-tiered program based 
on each customer's shipping spending at Retail rates in the previous 
calendar year. Id. The three tiers are:

 Basic (no minimum spending): Earn $40 credit for every $500 
spent
 Silver (at least $10,000 spent): Earn $50 credit for every 
$500 spent
 Gold (at least $20,000 spent): Qualify for Commercial Base 
pricing

Id. To help customers whose volume declined because of the ongoing 
COVID-19 pandemic, all Loyalty Program participants will receive an 
additional one-time $20 credit for shipping during the first two months 
of the program once participants ship at least $500 combined at 
Priority Mail Express and Priority Mail Retail rates. Id. During the 
first year of the Loyalty Program, any new Postal Service Click-N-Ship 
business customers will receive a one-time $40 ``Welcome Bonus'' credit 
upon shipping at least $500 at Priority Mail Express and Priority Mail 
Retail rates. Id.

III. Initial Administrative Actions

    The Commission establishes Docket No. CP2020-166 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, and 3642, 39 CFR part 3035, and 39 CFR 3040 subparts B and 
E. Comments are due no later than June 19, 2020. For specific details 
of the planned price changes, interested persons are encouraged to 
review the Notice, which is available on the Commission's website at 
www.prc.gov.
    Pursuant to 39 U.S.C. 505, Kenneth R. Moeller is appointed to serve 
as Public Representative to represent the interests of the general 
public in this docket.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. CP2020-166 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, and 3642, 39 CFR part 3035, and 39 CFR 3040 subparts B and E.
    2. Comments are due no later than June 19, 2020.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Kenneth R. 
Moeller to serve as an officer of the Commission (Public 
Representative) to represent the interests of the general public in 
this docket.
    4. The Secretary shall arrange for publication of this Order in the 
Federal Register.

    By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2020-12756 Filed 6-11-20; 8:45 am]
BILLING CODE 7710-FW-P