[Federal Register Volume 86, Number 25 (Tuesday, February 9, 2021)]
[Notices]
[Pages 8809-8810]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-02568]


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POSTAL REGULATORY COMMISSION

[Docket No. MT2020-2; Order No. 5830]


Market Test of Experimental Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently filed Postal Service 
request for exemption from annual revenue limitation for Market Test of 
Experimental Product-Extended Mail Forwarding. This notice informs the 
public of the filing, invites public comment, and takes other 
administrative steps.

DATES: Comments are due: February 10, 2021.

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

[[Page 8810]]

II. Background
III. Commission Action
IV. Ordering Paragraphs

I. Introduction

    On January 29, 2021, the Postal Service filed a request, pursuant 
to 39 U.S.C. 3641(e)(2), for an exemption from the $10 million annual 
revenue limitation for the Extended Mail Forwarding market test.\1\ The 
Commission authorized the market test to begin on August 1, 2020, and 
to proceed until expiration on August 1, 2022.\2\
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    \1\ See United States Postal Service Request for Exemption from 
Dollar Amount Limitation, January 29, 2021 (Request).
    \2\ Order Authorizing Extended Mail Forwarding Market Test, July 
20, 2020, at 2 (Order No. 5591).
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II. Background

    The Postal Service states that ``Extended Mail Forwarding is a 
customer-focused service that ensures customers receive mailpieces for 
which they are the intended recipient after they change addresses.'' 
Request at 2. The purpose of the service is to allow ``[i]Individuals, 
families, and businesses exercise greater control over their mail 
forwarding expiration dates to better fit their needs, providing more 
time to communicate with their mailing contacts and update their 
information.'' Id. The Postal Service states that it ``initially 
introduced its test of Extended Mail Forwarding in nine postal 
districts: Alabama, Dakotas, Dallas, Northern New Jersey, Northland, 
Ohio Valley, Sacramento, San Diego, and Santa Ana. Given the strong 
results in those districts, on October 1, 2020, the Postal Service 
expanded the geographic scope of the market test nationwide, following 
its notice to the Commission on September 18, 2020.'' \3\
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    \3\ Id. at 1, See United States Postal Service Notice of 
Material Change to Market Test, September 18, 2020.
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    Total revenues anticipated or received by the Postal Service from 
the Extended Mail Forwarding market test must not exceed $10 million, 
as adjusted for inflation, in any year unless the Commission exempts 
the market test from that limit.\4\ If the Commission grants an 
exemption, total revenues anticipated or received by the Postal Service 
from Extended Mail Forwarding may not exceed $50 million in any year, 
adjusted for inflation. 39 U.S.C. 3641(e)(2), (g). The Postal Service 
states that ``it expects the market test to exceed the dollar 
limitation in the present quarter.'' Request at 4.
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    \4\ See 39 U.S.C. 3641(e). The $10 million annual limitation is 
adjusted by the change in the consumer price index for all urban 
consumers (CPI-U). Id. 3641(g). See also, 39 CFR 3045.15. The 
Commission rules provide the formula for adjusting the annual 
limitation, and the Commission publishes the resulting annual 
limitation on its website, www.prc.gov, under the reference section 
in the document titled ``CPI Figures.''
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    The Commission's regulations require the Postal Service to file 
cost and revenue information with its request for exemption. 39 CFR 
3045.16(f). The Postal Service has submitted actual and expected costs 
and revenue for the market test. Request at 3. The Postal Service 
states that at the close of FY 2020, Quarter 4, the Extended Mail 
Forwarding market test, then limited to nine postal districts, received 
$655,352.\5\ The Postal Service states that at the close of FY 2021, 
Quarter 1, the Extended Mail Forwarding market test, then expanded to a 
nationwide scope, received $7,958,925.30, as shown in the quarterly 
data report filed with the Commission. Request at 3. The Postal Service 
states that the Quarterly Report for FY 2021, Quarter 1, indicates 
combined development and attributable costs for the market test through 
December 31, 2020 were $504,897.65. Id.
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    \5\ Request at 3; see Letter to Secretary Erica A. Barker 
Providing Extended Mail Forwarding Data Collection Report for FY 
2020, Quarter 4, November 10, 2020.
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    The Postal Service is required to estimate the anticipated 
additional revenue for each fiscal year remaining on the market test. 
The Postal Service states that if market trends and customer adoption 
metrics reflected in the FY 2021 Quarter 1 data collection report 
continue through FY 2021, the Postal Service anticipates that it will 
collect $31.8 million during FY 2021, well below the applicable 
$60,139,860 annual limit if the exception request is granted. Id. The 
Postal Service expects a similar result for FY 2022, but the test is 
expected to run only through the third quarter of FY 2022, so that 
yearly revenue for FY 2022 is expected to be approximately one-fourth 
less than for FY 2021, unless customer adoption increases. Id.
    The Commission shall approve the request for exemption if it 
determines that: (1) The product is likely to benefit the public and 
meet an expected demand; (2) the product is likely to contribute to the 
financial stability of the Postal Service; and (3) the product is 
unlikely to result in unfair or otherwise inappropriate competition. 39 
U.S.C. 3641(e)(2). In its Request, the Postal Service discusses how the 
Extended Mail Forwarding market test benefits the public and meets an 
expected demand, contributes to the Postal Service's financial 
stability, and is unlikely to result in unfair or inappropriate 
competition. Request at 2.
    The Commission rules require exemption requests to be filed 45 days 
in advance of the date the Postal Service expects to exceed the limit. 
Id. at 4. The Postal Service states that it received higher than 
expected results from Quarter 1 of FY 2021 and has proceeded 
expeditiously after receiving those results. Id.

III. Commission Action

    The Commission invites comments on whether the Request complies 
with applicable statutory and regulatory requirements, including 39 
U.S.C. 3641, 39 CFR part 3045, and Order No. 5591. Comments are due no 
later than February 10, 2021. The public portions of these filings can 
be accessed via the Commission's website (http://www.prc.gov).
    39 U.S.C. 505 requires the Commission to designate an officer of 
the Commission to represent the interests of the general public in all 
public proceedings (Public Representative). The Commission previously 
appointed Richard A. Oliver to serve as the Public Representative in 
this proceeding. He remains appointed to serve as the Public 
Representative.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission invites comments on the United States Postal 
Service Request for Exemption from Dollar Amount Limitation on Market 
Test of Experimental Product-Extended Mail Forwarding, filed January 
29, 2021.
    2. Pursuant to 39 U.S.C. 505, Richard A. Oliver remains appointed 
to serve as the Public Representative in this proceeding.
    3. Comments by interested persons are due no later than February 
10, 2021.
    4. The Secretary shall arrange for publication of this Order in the 
Federal Register.

    By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2021-02568 Filed 2-8-21; 8:45 am]
BILLING CODE 7710-FW-P