UNITED STATES OF AMERICA

POSTAL REGULATORY COMMISSION

WASHINGTON, DC 20268-0001

Modification of Mail Classification Schedule Docket No. MC2008-3

Regarding Bound Printed Matter

COMMISSION INFORMATION REQUEST NO. 2

(Issued April 18, 2008)

In comments filed April 9, 2008, commenters raise several issues
regarding the Postal Service's planned classification change that would
require all Bound Printed Matter (BPM) mailings be paid by permit
imprint only.[^1] Among other things, the Postal Service's planned
change may cause some single-piece BPM volume to shift to other and more
expensive postal products, *i.e.*, inter- and intra-BMC Parcel Post or
Media Mail. These potential volume shifts may increase Package Services'
revenue after May 12, 2008 and may affect the cap compliance or require
a recalculation of the banked amount.

The Commission has the following questions regarding the planned changes
to BPM service. The Postal Service is requested to respond to these
questions by no later than April 25, 2008.

1.  To ensure that these single-piece BPM volume shifts do not cause the
    Package Services class to exceed the 2.9 percent price cap
    established in Docket No. R2008-1, please: (a) provide workpapers
    which calculate the shifts in volume resulting from the
    classification change for each product in the Package Services
    class, and (b) explain the basis, including all assumptions used, on
    how the volumes were redistributed within the Package Services
    class.

2.  If volumes are expected to decrease as a result of this change,
    please describe how the policies of 39 U.S.C. §§ 3622(c)(4), (8),
    and (11) were taken into account in determining to make this change.

3.  Is the distribution of volumes in No. 1 above influenced by method
    of postage payment, *e.g.*, stamps or Postage Validation Imprint? If
    so, please elaborate and show the distribution by method of payment.
    If not, please explain.

4.  Based on the shift in volumes reported in No. 1 above, please
    recalculate: (a) the percentage change in rates by product, (b) the
    average percentage change in rates for the Package Services class,
    and (c) the unused rate adjustment authority associated with rates
    to be effective May 12, 2008.[^2]

5.  Please explain the rationale for not including: (a) postage meters,
    and (b) information-based indicia as authorized payment options for
    single-piece BPM.

6.  Please identify: (a) all other indicia (excluding stamps, metered
    mail, Postage Validation Imprints, information-based indicia, and
    permit imprints) that currently may be used to mail single-piece
    BPM; and (b) each indicia identified in response to subpart (a)
    which, under the planned classification change, would no longer be
    an authorized payment option for single-piece BPM.

7.  For each indicia identified in response to 6(b) above, please
    explain the rationale for not including that indicia as an
    authorized payment option for single-piece BPM.

Steven W. Williams

Secretary

[^1]: *See* Public Representative Comments in Response to Notices of
    Classification Change for Market-Dominant Bound Printed Matter
    Postal Products, April 9, 2009; Comments of Pitney Bowes Inc. in
    Response to Notice of Classification Change for Market Dominant
    Products, April 9, 2008; Douglas F. Carlson Comments on Proposed
    Classification Change for Bound Printed Matter, April 9, 2008;
    Initial Comments of David B. Popkin, April 9, 2008; and Comments and
    Motion for a Stay of Proceeding of American Postal Workers Union,
    AFL-CIO, April 9, 2008.

[^2]: *See* Docket R2008-1, PRC-R2008-1-LR-4.