[Federal Register Volume 76, Number 76 (Wednesday, April 20, 2011)]
[Notices]
[Pages 22157-22158]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-9543]


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POSTAL REGULATORY COMMISSION

[Docket No. R2011-5; Order No. 715]


Postal Service Rate Adjustment

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently-filed Postal Service 
notice of rate and classification changes affecting First-Class Mail 
presort and Standard Mail commercial letters and flats. The changes are 
part of an anticipated summer promotion involving mobile barcodes on or 
in mailpieces. This notice informs the public of the filing, addresses 
preliminary procedural matters, and invites public comment.

DATES: Comments are due: May 2, 2011.

ADDRESSES: Submit comments electronically by accessing the ``Filing 
Online'' link in the banner at the top of the Commission's Web site 
(http://www.prc.gov) or by directly accessing the Commission's Filing 
Online system at https://www.prc.gov/prc-pages/filing-online/login.aspx. Commenters who cannot submit their views electronically 
should contact the person identified in FOR FURTHER INFORMATION CONTACT 
section as the source for case-related information for advice on 
alternatives to electronic filing.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
at 202-789-6820 (case-related information) or <a href="/cdn-cgi/l/email-protection#df9bb0bcb4baab9ebbb2b6b1ac9fafadbcf1b8b0a9"><span class="__cf_email__" data-cfemail="b5f1dad6ded0c1f4d1d8dcdbc6f5c5c7d69bd2dac3">[email protected]</span></a> 
(electronic filing assistance).

SUPPLEMENTARY INFORMATION:

I. Introduction
II. Postal Service Filing
III. Commission Action
IV. Ordering Paragraphs

I. Introduction

    On April 12, 2011, the Postal Service filed a notice with the 
Commission announcing its intention to adjust prices for First-Class 
Mail presort and Standard Mail letters and flats pursuant to 39 U.S.C. 
3622 and 39 CFR part 3010.\1\ The adjustment is a 3 percent discount, 
from July 1, 2011 to August 31, 2011, for mailers of First-Class Mail 
presort and Standard Mail commercial letters and flats that include a 
mobile barcode inside or on the mailpieces. Notice at 1.
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    \1\ United States Postal Service Notice of Market-Dominant Price 
Adjustment, April 12, 2011 (Notice).
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II. Postal Service Filing

    Incentive program. The Postal Service proposes a 3 percent discount 
on First-Class Mail presort and Standard Mail commercial letters and 
flats that include, in or on the mailpiece, a two dimensional barcode 
readable by mobile smart phones. Id. at 2. The Postal Service notes 
that nonprofit standard mailpieces are ineligible for the discount. Id.
    The Postal Service requires that the barcode must be two 
dimensional, and notes that one dimensional barcodes, though readable 
by smart phones, are not eligible to receive the discount. Id. The 
Postal Service requires that the barcode must be designed to ``initiate 
interaction with consumers via mobile smart phones to market, promote, 
or educate.'' Id. at 2-3.
    The 3 percent discount may be combined with the full-service 
intelligent mail barcode discount, but may not be combined with any 
other incentive. Id. at 3.
    Requirements of 39 CFR 3010. The Postal Service certifies that it 
will, at least 45 days prior to implementation, inform customers of the 
price adjustment as required by rule 3010.14(a)(3), by way of the 
Notice, a press release, and publication in the Federal Register and 
Postal Bulletin. Id. at 1-2. The Postal Service identifies Greg Dawson, 
Manager of Pricing Strategy, as the official responsible for responding 
to any Commission inquiries. Id. at 2.
    Impact on the price cap. The Postal Service does not calculate the 
cap implication of the discount as described in rule 3010.14(b)(1) 
through (4). Id. at 3. The Postal Service states that excluding the 
price cap calculation is consistent with other limited availability 
discounts offered in the past. Id.
    Objectives and factors, workshare discounts, and preferred rates. 
The Postal Service lists the relevant objectives and factors of 39 
U.S.C. 3622, and claims the program ``[t]o a large extent * * * does 
not substantially alter the degree to which First-Class Mail and 
Standard Mail prices already address'' the objectives and factors. Id. 
at 5-7. In particular, the Postal Service contends the program is an 
example of the increased pricing flexibility under the Postal 
Accountability and Enhancement Act (objective 4), and provides an 
incentive for profitable new mail that will enhance the financial 
position of the Postal Service (objective 5). Id. at 5. Similarly, the 
Postal Service contends that the program encourages increased mail 
volume (factor 7) and will not imperil the ability of First-Class Mail 
or Standard Mail to cover its attributable costs (factor 2). Id. at 
7.The Postal Service states that this program will not impact current 
workshare discounts. Id. at 8. The Postal Service states that it does 
not expect participation in the program to be of a magnitude that would 
``cause a material impact on the differential between commercial and 
nonprofit pieces in Standard Mail.'' Id.
    Mail Classification Schedule (MCS). The Postal Service provides 
proposed MCS language in Appendix A of its Notice. It outlines the 
proposed changes in the MCS for the relevant products. Id. Appendix A.

III. Commission Action

    The Commission establishes Docket No. R2011-5 to consider all 
matters related to the Notice. The Commission's rules provide for a 20-
day comment period starting from the date of the filing of the Notice. 
See 39 CFR

[[Page 22158]]

3010.13(a)(5). Interested persons may express views and offer comments 
on whether the planned changes are consistent with the policies of 39 
U.S.C. 3622 and 39 CFR part 3010. Comments are due no later than May 2, 
2011.
    The Commission appoints Natalie Rea to represent the interests of 
the general public in this proceeding.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. R2011-5 to consider 
matters raised by the Postal Service's April 12, 2011 filing.
    2. Interested persons may submit comments on the planned price 
adjustments. Comments are due May 2, 2011.
    3. Pursuant to 39 U.S.C. 505, Natalie Rea is appointed to serve as 
officer of the Commission (Public Representative) to represent the 
interests of the general public in this proceeding.
    4. The Commission directs the Secretary to arrange for prompt 
publication of this notice in the Federal Register.

    By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2011-9543 Filed 4-19-11; 8:45 am]
BILLING CODE 7710-FW-P


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