[Federal Register Volume 90, Number 115 (Tuesday, June 17, 2025)]
[Notices]
[Pages 25650-25651]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-11108]
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POSTAL REGULATORY COMMISSION
[Docket Nos. MC2025-1483 and RM2025-11; Order No. 8907]
Streamlined Negotiated Service Agreement Review and New Postal
Product
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
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SUMMARY: The Commission is acknowledging a recent Postal Service filing
concerning material changes to Mail Classification Schedule product
descriptions within First-Class Mail, USPS Marketing Mail, and
Periodicals. This document invites public comment on the advance review
portion of the Postal Service's filing and takes other administrative
steps.
DATES: Comments are due: July 11, 2025.
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 of the Postal Service's Filings
III. Notice and Comment
IV. Ordering Paragraphs
I. Introduction
On June 11, 2025, the Postal Service filed a proposal pursuant to
39 CFR 3040.180 to make material changes to Mail Classification
Schedule (MCS) product descriptions within First-Class Mail, USPS
Marketing Mail, and Periodicals.\1\ The Postal Service states that
these modifications will result in changes to certain workshare
discounts, including changing benchmarks for some existing workshare
discounts, eliminating other existing workshare discounts, and creating
new workshare discounts. MCS Proposal at 2. Accordingly, the Postal
Service also filed a petition pursuant to 39 CFR 3050.11 requesting
that the Commission initiate a rulemaking proceeding to consider
related changes to analytical principles.\2\
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\1\ United States Postal Service Proposal to Modify the Product
Descriptions of First-Class Mail, USPS Marketing Mail, and
Periodicals, June 11, 2025 (MCS Proposal).
\2\ Petition of the United States Postal Service to Initiate a
Proceeding to Change Analytical Principles, June 11, 2025
(Petition). The proposed changes are attached to the Petition
(Proposal).
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II. Overview of the Postal Service's Filings
MCS Proposal. The Postal Service proposes several changes to the
MCS product descriptions for First-Class Mail, USPS Marketing Mail, and
Periodicals. First, the Postal Service proposes new zoned pricing for
presorted USPS Marketing Mail letters, flats, and parcels entered at
origin for all USPS Marketing Mail products except Every Door Direct
Mail (EDDM)--Retail. MCS Proposal at 1. Second, the Postal Service
proposes to ``[a]lign Outside-County Periodicals prices with [USPS]
Marketing Mail prices'' by introducing zoned prices for mailpieces
entered at origin, eliminating bundle and container prices, and
introducing simplified container discounts. Id. Third, the Postal
Service proposes to eliminate ``duplicative'' area distribution center
(ADC) presort rates for First-Class Mail, USPS Marketing Mail, and
Periodicals and to ``clarify rate table labels'' by substituting ``3-
Digit'' for ``ADC,'' ``automated ADC (AADC),'' and ``sectional center
facility (SCF)'' as well as substituting ``Mixed'' for ``Mixed ADC''
and ``Mixed AADC.'' Id. at 1-2. Finally, because the Postal service no
longer intends to process mail in network distribution centers (NDCs),
the Postal Service proposes to eliminate presort discounts for USPS
Marketing Mail Parcels entered at the NDC. Id. at 2. The Postal Service
states that the proposed changes to the pricing structures for First-
Class Mail, USPS Marketing Mail, and Periodicals result in a number of
changes to workshare discounts, including changes to benchmarks for
some workshare discounts, elimination of other workshare discounts, and
creation of new workshare discounts. Id.
Petition and Proposal. The Postal Service presents four proposed
changes in analytical principles that are related to the proposed MCS
changes. Petition at 2. First, the Postal Service proposes a modified
USPS Marketing Mail destination entry cost model to reflect the
proposed zoned pricing structure for USPS Marketing Mail entered at
origin (Proposal One). Id.; Proposal, Part 1 of 4, at 1. Second, to
conform to the proposed Periodicals pricing structure, the Postal
Service proposes a modified mail processing cost model for the
Periodicals Outside County product that would ``remap[] current
categories to piece-rated cost categories weighted by preparation
(Proposal Two).'' Petition at 2; Proposal, Part 2 of 4, at 1. Third,
the Postal Service proposes to revise benchmarks for First-Class Mail,
USPS Marketing Mail, and Periodicals that are currently benchmarked to
ADC presort prices, which the Postal Service would eliminate (Proposal
Three). Petition at 2. The Postal Service proposes to replace these
benchmarks with the ``next less fine level of sortation'' after
elimination of the ADC presort prices. Proposal, Part 3 of 4, at 2,
Table 2. Finally, the Postal Service proposes to revise the benchmark
for USPS Marketing Mail Parcels workshare discounts to reflect
elimination of NDC presort prices (Proposal Four). Petition at 2. The
Postal Service proposes to replace the NDC presort benchmark with the
``next less fine level of sortation'' after elimination of the NDC
presort prices. Proposal, Part 4 of 4, at 1. The Postal Service
explains that the USPS Marketing Mail Parcels cost model required
additional ``small adjustments'' because, unlike cost models for other
USPS Marketing Mail mailpiece shapes, the adjusted unit costs are
calculated for each available combination of presort level and entry
level. Proposal, Part 4 of 4, at 2. The Postal Service contends that,
with elimination of NDCs, ``there are
[[Page 25651]]
situations in which unit costs for differing entry levels would have to
be compared against one [an]other to develop presort cost avoidances.''
Id. at 2-3. The Postal Service states that it remedied this mismatch by
developing new ``aggregate'' unit costs for calculating cost avoidances
across remaining presort categories. Id.
Impact. With respect to Proposal One, the Postal Service presents
the USPS Marketing Mail cost avoidances in Tables 1, 2, and 3, and
asserts that the avoided costs under this proposal are ``much the
same'' as those presented in Docket No. ACR2024. Proposal, Part 1 of 4,
at 6-7. With respect to Proposal Two, the Postal Service presents Excel
file ``RM2025.11.USPS-FY24-11.POC.Ord.8713.Rev3.3.25.xlsx,'' which it
used to estimate weighted average unit costs by preparation method and
which it contends results in cost avoidances that support the proposed
Periodicals pricing structure. Proposal, Part 2 of 4, at 5. With
respect to Proposal Three, the Postal Service states that the impacts
of the proposed change in analytical principles may be found in Excel
files ``RM2025-11 FCM Workshare Tables.xlsx,'' ``RM2025-11 Marketing
Mail.xlsx,'' and ``RM2025-11 Periodicals Workshare Tables.xlsx.''
Proposal, Part 3 of 4, at 4-5. With respect to Proposal Four, the
Postal Service presents Excel file ``RM2025-11 Marketing mail.xlsx.''
Proposal, Part 4 of 4, at 5.
III. Notice and Comment
The Commission establishes Docket No. MC2025-1483 to consider
matters raised by the MCS Proposal and Docket No. RM2025-11 for
consideration of matters raised by the Petition. Because the instant
dockets involve related issues, the Commission consolidates them. See
39 CFR 3010.104. More information on the Petition may be accessed via
the Commission's website at http://www.prc.gov. Interested persons may
submit comments on the MCS Proposal and the Petition no later than July
11, 2025. Pursuant to 39 U.S.C. 505, Katalin Clendenin is designated as
an officer of the Commission (Public Representative) to represent the
interests of the general public in this proceeding. The Public
Representative does not represent any individual person, entity or
particular point of view, and, when Commission attorneys are appointed,
no attorney-client relationship is established.
IV. Ordering Paragraphs
It is ordered:
1. The Commission established Docket No. MC2025-1483 to consider
matters raised by the United States Postal Service Proposal to Modify
the Product Descriptions of First-Class Mail, USPS Marketing Mail, and
Periodicals, filed June 11, 2025.
2. The Commission establishes Docket No. RM2025-11 to consider
matters raised by the Petition of the United States Postal Service to
Initiate a Proceeding to Change Analytical Principles, filed June 11,
2025.
3. The Commission consolidates Docket Nos. MC2025-1483 and RM2025-
11.
4. Comments by interested persons in this proceeding are due no
later than July 11, 2025.
5. Pursuant to 39 U.S.C. 505, the Commission appoints Katalin
Clendenin to serve as an officer of the Commission (Public
Representative) to represent the interests of the general public in
this docket.
6. The Secretary shall arrange for publication of this Order in the
Federal Register.
By the Commission.
Jennie L. Jbara,
Primary Certifying Official.
[FR Doc. 2025-11108 Filed 6-16-25; 8:45 am]
BILLING CODE 7710-FW-P