[Federal Register Volume 90, Number 130 (Thursday, July 10, 2025)]
[Proposed Rules]
[Pages 30606-30607]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-12786]
[[Page 30606]]
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POSTAL REGULATORY COMMISSION
39 CFR Part 3030
[Docket Nos. RM2021-2, RM2022-5, RM2022-6, and RM2024-4; Order No.
8973]
RIN 3211-AA37
System for Regulating Rates and Classes for Market Dominant
Products
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
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SUMMARY: The Postal Service filed a Motion requesting an extension of
the comment deadline in this proceeding. The Commission grants the
Motion and adds a reply comment deadline.
DATES: Comments are due: July 28, 2025. Reply Comments are due: August
7, 2025.
ADDRESSES: Submit comments electronically via the Commission's Filing
Online system at https://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. The Rule Summary can be found on the Commission's Rule
Summary Page at https://www.prc.gov/rule-summary-page.
FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at
202-789-6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Background
III. Commission Analysis
IV. Ordering Paragraphs
I. Introduction
On June 9, 2025, the Commission issued Order No. 8893 to initiate a
phased rulemaking process and propose two rule changes to the Market
Dominant ratemaking system as a first step of the phased process.\1\
The Commission set a deadline of July 14, 2025 for comments on these
two proposed rule changes.\2\ On June 27, 2025, the Postal Service
requested an extension of time until July 28, 2025 for all parties to
submit comments.\3\ For the reasons discussed below, the Commission
grants the Motion. The Commission also provides a deadline for reply
comments of August 7, 2025.
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\1\ Notice of Proposed Rulemaking on the Statutory Review of the
System for Regulating Rates and Classes for Market Dominant Products
(Phase 2A Initiation), June 9, 2025 (Order No. 8893).
\2\ Id. at 42 (setting the comment deadline at 30 days from the
date of publication in the Federal Register of the proposed rules);
System for Regulating Rates and Classes for Market Dominant
Products, 90 FR 25006 (June 13, 2025) (setting July 14, 2025 as the
comment deadline).
\3\ Motion of the United States Postal Service for Extension of
Time for Parties to File Comments in Response to Order No. 8893,
June 27, 2025 (Motion).
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II. Background
The Commission proposed two rule changes in Order No. 8893: (1)
restricting the Postal Service from adjusting Market Dominant rates
more than once per fiscal year from October 1, 2025 through October 1,
2030; and (2) restricting the Postal Service from setting workshare
discounts farther away from their avoided costs. Order No. 8893 at 4,
Attachment. Regarding the proposal to restrict the Postal Service from
adjusting Market Dominant rates more than once per year, the Commission
performed some preliminary analysis of the potential lag effects of
this proposal in response to the Postal Service's claim (made without
any evidence to support) that its recent general pattern of adjusting
Market Dominant rates approximately every 6 months instead of every
year was intended to mitigate the lag effects between inflation rising
and postal prices increasing. Id. at 17. In addition, the Commission
published an initial Elasticity Study of the Postal Service's Market
Dominant products ``[t]o better understand the impacts of rate
adjustments on the Postal Service and rate payers.'' \4\
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\4\ Id. at 18; see Elasticity Study, Phase 1, June 9, 2025.
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On June 12, 2025, the Postal Service requested that the Commission
publish the preliminary lag analysis mentioned in Order No. 8893.\5\
The Postal Service further requested that the Commission publish all
workpapers underlying the preliminary lag analysis and all workpapers
underlying the Elasticity Study.\6\ On June 23, 2025, the Commission
granted the Postal Service's request and published the requested
materials in the instant dockets.\7\
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\5\ Motion of the United States Postal Service for Immediate
Publication of Commission Analysis Informing Order No. 8893, June
12, 2025.
\6\ Addendum to Motion of the United States Postal Service for
Immediate Publication of Commission Analysis Informing Order No.
8893, June 12, 2025.
\7\ Order Granting Motion for Publication, June 23, 2025 (Order
No. 8924). The materials underlying the Elasticity Study are
provided as Library Reference PRC-LR-RM2024-4-2--Supporting
Materials for Elasticity Study Phase 1. The lag effects analysis and
its underlying workpapers are provided as Library Reference PRC-LR-
RM2024-4-3--Preliminary Analysis Workpapers.
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On June 27, 2025, the Postal Service filed the Motion requesting
extension of time until July 28, 2025 for all parties to submit
comments on the two proposed rule changes in Order No. 8893. Motion at
1. The Postal Service states that the Commission did not provide the
preliminary lag analysis and workpapers underlying the preliminary lag
analysis and the Elasticity Study until 14 days after the issuance of
Order No. 8893 and 10 days after publication of the proposed rules in
the Federal Register. Id. at 1-2. The Postal Service argues that the
delayed publication of these materials has ``cut down on the
Commission's initial comment window for all parties involved to form
meaningful comments.'' Id. at 2. The Postal Service argues that
proceeding with the initial comment window would deny all parties a
fair opportunity to comment on the proposed rules and would undermine
the notice-and-comment requirement under 5 U.S.C. 553. Id. The Postal
Service further argues that ``a two-week extension would have a minimal
effect on the procedural schedule, and no party would be adversely
impacted by an extension of the comment period . . .'' Id.
III. Commission Analysis
A motion for extension of time ``shall only be granted upon
consideration of the potential adverse impact, if any, on other
participants and the overall impact on the procedural schedule.'' 39
CFR 3010.162(c). Having reviewed the Motion, the Commission finds that
the Motion has met the criteria in 39 CFR 3010.162(c). The Motion is
unopposed. Because this extension would apply to all interested
persons, no other participant would be adversely impacted by the
extension. Given that the proposed two-week extension is relatively
brief, the Commission finds that such an extension would not adversely
impact the overall procedural schedule of these proceedings.\8\
Accordingly, the Commission grants the Motion pursuant to 39 CFR
3010.162(c).
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\8\ As stated in Order No. 8893, ``[t]he Commission is
interested in receiving comments from stakeholders on the proposed
sunset period and the proposed effective dates of October 1, 2025
through October 1, 2030'' for the proposal to restrict the Postal
Service from adjusting Market Dominant rates more than once per
year. Order No. 8893 at 13. ``Depending on the public comment, the
Commission may decide to consider potential adjustments to the
proposed sunset period and the proposed effective dates of October
1, 2025 through October 1, 2030.'' Id. Interested persons may take
the potential impact of the extended comment deadline of July 28,
2025 into account when commenting on the proposed sunset period and
the proposed effective dates of October 1, 2025 through October 1,
2030.
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Because allowing a brief reply comment period would not adversely
impact the overall procedural schedule or any participant, the
Commission also
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provides a deadline for reply comments of August 7, 2025.
IV. Ordering Paragraphs
It is ordered:
1. The Motion of the United States Postal Service for Extension of
Time for Parties to File Comments in Response to Order No. 8893, filed
on June 27, 2025, is granted.
2. Comments on the proposed rule changes in the Notice of Proposed
Rulemaking on the Statutory Review of the System for Regulating Rates
and Classes for Market Dominant Products (Phase 2A Initiation), issued
on June 9, 2025 (Order No. 8893), are due July 28, 2025.
3. Reply comments are due on August 7, 2025.
4. The Secretary shall arrange for publication of this Order, or
abstract thereof, in the Federal Register.
By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2025-12786 Filed 7-9-25; 8:45 am]
BILLING CODE 7710-FW-P