Federal Register / Vol. 75, No. 217 / Wednesday, November 10, 2010 / Notices 69143 

2See e.g., Docket No. CP2010–8 Notice of the 

United States Postal Service of Filing Supplemental 

Information Under Seal In Response To 

Commission Order No. 333, November 16, 2009 and 

November 19, 2009; Supplemental Information 

Provided by the United States Postal Service in 

Response to Commission Order No. 333; and Notice 

of Filing Material Under Seal, November 19, 2009. 

3 Docket No. MC2010–36, Transferring 

Commercial Standard Mail Parcels to the 

Competitive Product List, is still under review by 

the Commission. 

International Priority Airmail. 

International Priority Airmail has a 

price increase of 3.3 percent. 

International Surface Air Lift. 

International Surface Air Lift has a price 

increase of 6.4 percent. 

Airmail M–Bags. The published prices 

for Airmail M–Bags increase by 5.8 

percent. 

International Ancillary Services. 

Prices for paper money orders and for 

insurance with EMI and PMI increase. 

The unique price tier for Canada when 

optional insurance is purchased for PMI 

parcels is eliminated. 

Details of these changes may be found 

in the Attachment to Governors’ 

Decision No. 10–4. 

The Filing also includes two 

additional attachments: A redacted table 

that shows FY 2011 projected volumes, 

revenues, attributable costs, 

contribution, and cost coverage for each 

product, and an application for nonpublic treatment of the unredacted 

version of that table. 

Notice. The establishment of rates of 

general applicability for competitive 

products and the associated mail 

classification changes effect a change in 

the draft Mail Classification Schedule. 

Pursuant to subpart E of part 3020 of its 

rules, 39 CFR 3020.90 et seq., the 

Commission provides notice of the 

Postal Service’s Filing. Interested 

persons may express views and offer 

comments on whether the planned 

changes are consistent with the policies 

of 39 U.S.C. 3632, 3633, or 3642 and 39 

CFR part 3015 and 39 CFR 3020, subpart 

B. Comments are due no later than 

November 19, 2010. 

Pursuant to 39 U.S.C. 505, Cassandra 

L. Hicks is appointed as Public 

Representative to represent the interests 

of the general public in the abovecaptioned docket. 

Supplemental information. Pursuant 

to 39 CFR 3015.6, the Postal Service is 

requested to provide a written response 

to the questions below. To assist in the 

completion of the record, answers 

should be provided as soon as possible, 

but by no later than November 10, 2010. 

1. Please refer to the redacted tables 

attached to the Request which present 

‘‘Competitive Product Contribution & 

Cost Coverage Analysis’’ for FY 2011 

‘‘January 2, 2011 Implementation’’ and 

‘‘October 1, 2010 Implementation.’’ 

a. Provide FY 2011 volumes, 

revenues, attributable costs, 

contribution, and cost coverage data 

similar to that provided in Docket No. 

CP2010–8 to support all data in both the 

redacted and unredacted tables.2

b. Provide a narrative explaining the 

method used to forecast data in the 

referenced tables. 

c. Provide attributable costs, revenues, 

and volumes data for each product 

grouped in ‘‘All Other Competitive 

International (including Services)’’ at the 

same level of detail provided for all 

other competitive products in this 

docket. For each of these international 

products, explain how the expected 

revenues and costs comply with 39 

U.S.C. 3633(a). 

2. Please refer to Governors’ Decision 

No. 10–4. The Postal Service provides 

overall price increases for the following 

products: Express Mail 4.6 percent, 

Priority Mail 3.5 percent, Parcel Select 

4.4 percent, Parcel Return Service 3.1 

percent, Premium Forwarding Service 

5.0 percent, Address Enhancement 

Service 5.0 percent, Global Express 

Guaranteed 3.7 percent, Express Mail 

International 3.1 percent, and Priority 

Mail International 3.8 percent, 

International Priority Airmail and 

International Surface Air Lift 4.4 

percent, Airmail M–Bags 5.8 percent. 

Please provide the weights used to 

derive the Before Rates and After Rates 

indices relied upon to calculate the 

overall (average) percentage price 

increase for each product and service 

referenced above similar to the 

supplemental data filed in CP2010–8. 

Id. Please show all calculations in Excel, 

and explain any adjustments made due 

to classification changes. 

3. Please refer to the Draft Mail 

Classification Schedule (MCS) in the 

Attachment to Governors’ Decision 10– 

4 sections 2115.2 and 2115.3. Please 

confirm that ‘‘Lightweight’’ Parcel Select 

size and volume thresholds should not 

be included in the Draft MCS.3 If not 

confirmed, please explain. 

4. The Postal Service’s request 

includes two new Priority Mail price 

categories: Critical Mail and Regional 

Rate Boxes. Please provide a detailed 

description of Critical Mail and 

Regional Rate Boxes. The response 

should include a discussion of how the 

proposed price categories differ from the 

existing Priority Mail price categories. 

It is ordered: 

1. The Commission establishes Docket 

No. CP2011–26 to provide interested 

persons an opportunity to express views 

and offer comments on whether the 

planned changes are consistent with the 

policies of 39 U.S.C. 3632, 3633, or 3642 

and 39 CFR part 3015 and 39 CFR 3020, 

subpart B. 

2. Comments on the Filing are due no 

later than November 19, 2010. 

3. The Commission appoints 

Cassandra L. Hicks as Public 

Representative to represent the interests 

of the general public in this proceeding. 

4. The Postal Service shall provide a 

written response to the supplemental 

information requested in this order no 

later than November 10, 2010. 

5. The Secretary shall arrange for 

publication of this order in the Federal 

Register. 

By the Commission. 

Shoshana M. Grove, 

Secretary. 

[FR Doc. 2010–28309 Filed 11–9–10; 8:45 am] 

BILLING CODE 7710–FW–P 

POSTAL REGULATORY COMMISSION 

[Docket No. R2011–1; Order No. 577] 

Postal Rate and Classification 

Changes 

AGENCY: Postal Regulatory Commission. 

ACTION: Notice. 

SUMMARY: This document addresses a 

recently-filed Postal Service request for 

three postal rate and classification 

changes. One change will affect certain 

senders of First-Class Mail Presort and 

Automation Letters. Another change 

will affect Standard Mail and High 

Density milers. The third change affects 

the Move Update Charge threshold. This 

document provides details about the 

anticipated changes and addresses 

procedural steps associated with this 

filing. 

DATES: Comments are due: November 

22, 2010. 

ADDRESSES: Submit comments 

electronically via the Commission’s 

Filing Online system at http:// 

www.prc.gov. Commenters who cannot 

submit their views electronically should 

contact the person identified in the FOR

FURTHER INFORMATION CONTACT section 

by telephone for advice on alternatives 

to electronic filing. 

FOR FURTHER INFORMATION CONTACT: 

Stephen L. Sharfman, General Counsel, 

202–789–6820 and 

stephen.sharfman@prc.gov. 

SUPPLEMENTARY INFORMATION: 

I. Introduction 

II. Postal Service Filing 

III. Commission Action 

IV. Ordering Paragraphs 


emcdonald on DSK2BSOYB1PROD with NOTICES
69144 Federal Register / Vol. 75, No. 217 / Wednesday, November 10, 2010 / Notices 

1United States Postal Service Notice of Market 

Dominant Price Adjustment, November 2, 2010 

(Notice). 

2 Docket No. R2010–4, Exigent Request of the 

United States Postal Service, July 6, 2010. 

3 Docket No. R2010–4, Order Denying Request for 

Exigent Rate Adjustments, September 30, 2010, at 

30. 

4 Docket No. R2010–1, United States Postal 

Service Notice of Market Dominant Price 

Adjustment and Classification Changes, October 15, 

2009, at 3–4. 

I. Introduction 

On November 2, 2010, the Postal 

Service filed with the Commission a 

notice of three price adjustments and 

related classification changes for market 

dominant products.1 The adjustments 

affecting First-Class Mail and Standard 

Mail are scheduled to become effective 

January 2, 2011. 

These three adjustments and changes 

were previously filed and included with 

the Postal Service’s recent request to 

adjust market dominant rates due to 

extraordinary or exceptional 

circumstances.2 In rejecting that exigent 

rate request, the Commission noted that 

its decision made it unnecessary to 

address the merits of the classification 

change requests, but stated that the 

Postal Service may refile one or more of 

the requests as separate proposals and 

may designate relevant testimony or 

supporting documents filed in that case 

as part of supporting materials.3

II. Postal Service Filing 

Reply Rides Free. This pricing 

initiative is available for mailers of 

First-Class Mail Automation Letters. 

Automation Letters weighing more than 

one ounce but not more than one and 

two-tenths (1.2) ounces when the letters 

include a reply card or reply envelope 

will qualify for postage payment at the 

one-ounce rate. A typical reply envelope 

weighs 0.2 ounces. For participating 

mailers, Automation Letters would 

qualify until May 1, 2010, and thereafter 

only with the full-service Intelligent 

Mail barcode (IMb). All presort and 

automation letter volumes will quality 

for an annual incentive. Mailers must 

agree to meet a volume threshold of 

First-Class Mail Presort and Automation 

Letters, and enclose either a reply card 

or envelope as a courtesy reply or 

business reply which may be a reusable 

envelope. For compliance purposes, 

samples must be presented with each 

mailing. Notice at 1–2. 

Only customers who mailed FirstClass Mail Presort and Automation 

Letters in FY 2009 and FY 2010 qualify 

for this initiative. The volume 

commitment is the trend of those 

volumes between FY 2009 and FY 2010 

plus 2.5 percent. Id. at 4. 

In support, the Postal Service states 

that the initiative is designed to slow 

mailers’ diversion of mail to online bill 

and statement delivery, and payment 

acceptance. Mailers include 

promotional inserts only if a mailpiece 

remains subject to the one-ounce rate. 

Allowing up to 1.2 ounces for qualifying 

envelopes will offer mailers an 

incentive to retain reply envelopes in 

mailings in order to generate revenues 

and offset mailing costs. Reply Rides 

Free would increase the value of the 

mail for marketing purposes and 

encourage mailers to use mailings for 

direct marketing purposes. It would also 

encourage customers to reply with 

single-piece First-Class Mail and slow 

electronic diversion of responses. Id. at 

3–4. 

Saturation and High Density 

incentive. The Standard Mail and High 

Density incentive provides a rebate on 

incremental mailpieces above a 

predetermined volume baseline, which 

each participant is equal to the aggregate 

total Standard Mail Saturation and High 

Density volume in calendar year 2010 

plus 5.0 percent. Volumes above the 

baseline will be eligible for a rebate of 

22 percent of participant’s average 

revenue per piece for commercial 

Saturation Mail and 13 percent for 

commercial High Density mail. For 

nonprofit High Density and Saturation 

volumes, the rebate is 8 percent. Id. at 

4. This discount is less than the 

discount for commercial mailers, but the 

ratio between nonprofit and commercial 

mailers will meet the statutory 

requirement of 60 percent. 39 U.S.C. 

3626(a)(6). Id. at 13. 

To participate, mailers who apply 

must meet several requirements: 

1. To identify current and frequent 

mailers of this product, mailers must be 

current Saturation and High Density 

customers with at least six mailings in 

FY 2010; 

2. Mailers must be holders of a permit 

imprint advance deposit account or 

owners of qualifying volume entered 

through a similar account by a mail 

service provider at a facility having 

PostalOne! capability; 

3. Only the volume of mail owners 

will be eligible. Mail service providers 

and customers supplying inserts or the 

components of Saturation or High 

Density mailings of another mailer are 

not eligible; and 

4. Mailers must electronically submit 

postage statements and mail 

documentation to the PostalOne! system 

during the specified period. Mailers 

using defined market area(s) must use 

Mail.dat or Mail.XML. Other applicants 

may submit postal statements via Postal 

Wizard. Id. at 5. 

During participation in this incentive, 

customers may not participate in any 

other Standard Mail incentive or ‘‘sale’’ 

including Saturation or High Density 

products to prevent receiving two 

incentives for the same mail volume. Id. 

Customers have the option of 

participating under one of two market 

models: 

1. Total Market (or National) volume. 

Customers must demonstrate increased 

total Saturation and High Density mail 

volume letters and flats over the base 

year for their total market. 

2. Specific Geographic Markets. 

Subject to Postal Service approval, 

customers designate specific geographic 

target markets of specific Postal Service 

Sectional Center Facilities (SCFs) for 

increased volume over the base year. Up 

to 20 SCFs may be selected or up to five 

target markets (consisting of multiple 

contiguous SCFs). Customers must have 

made the qualifying six mailing during 

FY 2010 for each market in which they 

participate. Id. at 6. 

Increases in Move Update Assessment 

Charge threshold. For First-Class Mail 

subject to Move Update Standards and 

all Standard Mail, the threshold below 

which the Move Update Assessment 

Charge is assessed is increased from 70 

to75 percent. That is, the tolerance will 

be reduced from 30 percent to 25 

percent. The Postal Service states that 

the change is consistent with plans 

announced in a previous docket,4 is 

needed to encourage the use of Move 

Update processes, and will affect few 

mailings. Notice at 6–7. 

Impact on price cap. To comply with 

39 CFR 3010.14(b)(1), the Postal Service 

discusses and provides tables listing the 

amount of unused price adjustment 

authority available for First-Class Mail 

and Standard Mail, the percentage 

change in prices for each of those 

classes of mail, and the amount of any 

new unused price adjustment authority 

for those two classes generated by this 

price change. Id. at 7–9. 

Workpapers intended to demonstrate 

how the prices comply with the price 

cap are designated in the Notice as 

follows: USPS–R2011–1–1/1—FirstClass Worksheets; USPS–R2011–1–1/ 

2—Standard Mail Worksheets; and 

USPS–R2011–1–1/3—Impact of Move 

Update Assessment Charge. Id. at 8. The 

Postal Service states the workpapers 

demonstrate that the calculated negative 

price changes serve to increase the 

banked amount for First-Class and 

Standard Mail and thus comply with the 

available overall price adjustment 

authority. Id. at 9. 

Objectives and factors. The Postal 

Service lists and discusses the 


emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 217 / Wednesday, November 10, 2010 / Notices 69145 

1Notice of the United States Postal Service of 

Filing Changes in Rates Not of General 

Applicability and Application for Non-Public 

Treatment of Materials Filed Under Seal, November 

3, 2010 (Notice). 

2See Docket Nos. MC2010–11 and CP2010–11, 

Request of the United States Postal Service to Add 

Inbound Air Parcel Post at Universal Postal Union 

(UPU) Rates to the Competitive Products List, 

Notice of Establishment of Prices and 

Classifications Not of General Applicability for 

Inbound Air Parcel Post at UPU Rates Established 

in Governors’ Decision No. 09–15, and Application 

for Non-Public Treatment of Materials Filed Under 

Seal, November 17, 2009 (Request). 

objectives and factors of 39 U.S.C. 3622 

and their relationship to the proposed 

changes. The Postal Service asserts that 

changes do not substantially alter the 

degree First-Class Mail rates address the 

objectives and factors. Id. at 11. Reply 

Rides Free is an example of increased 

flexibility allowed the Postal Service 

(Objective 4), and it is an initiative to 

enhance the Postal Service’s financial 

position (Objective 5). The incentive to 

mailers to continue using First-Class 

Mail (Factor 3) encourages increased 

mail volume (Factor 7), but does not 

imperil the coverage of attributable costs 

(Factor 2). Move Update improves 

overall efficiency of mail processing 

(Objective 1, Factors 5 and 12). Id. at 

11–12. 

Similarly, for Standard Mail, the 

changes do not alter the degree that 

prices and system design already 

address the objectives and factors of 

section 3622. Move Update improves 

overall efficiency (Objective 1, Factors 5 

and 12). The Saturation and High 

Density initiative is also an example of 

increased flexibility allowed the Postal 

Service (Objective 4) and provides an 

incentive to mailers to enhance the 

financial position of the Postal Service 

(Objective 5). It also encourages 

increased mail volume (Factor 7), 

incents the use of Standard Mail (Factor 

3), and will not inhibit coverage of 

attributable costs (Factor 2). Id. at 12. 

Workshare discounts. The Postal 

Service states that none of the price 

changes impacts workshare discounts 

for First-Class Mail or for Standard Mail. 

Id. at 13. 

Conformance with 39 CFR part 3010. 

The Postal Service provides notice 

pursuant to section 3622 and 39 CFR 

part 3010 that the Governors have 

authorized the Postal Service to adjust 

the classification language and prices 

for these market dominant products. 

The Postal Service represents that, in 

conformance with the notice 

requirements of 39 CFR 3010.14(a)(3), it 

will publish notice of these changes at 

least 45 days prior to the planned 

implementation date. The Notice will be 

published at USPS.com, the Postal 

Explorer Web site, the DMM Advisory, 

the P&C Weekly, and a press release. 

Public notice will also be provided in 

future issues of PCC Insider, MailPro, 

the Postal Bulletin, and the Federal 

Register. Id. at 1. Pursuant to 39 CFR 

3010.14(a)(4), the Postal Service 

identifies Greg Dawson, Manager, 

Pricing Strategy, as the official available 

to provide prompt responses to requests 

for clarification from the Commission. 

Id. at 2. 

Pursuant to 39 CFR 3010.14(b)(9), the 

changes in the product descriptions 

within the Mail Classification Schedule 

are included in Appendix A attached to 

the Notice. 

III. Commission Action 

The Commission establishes Docket 

No. R2011–1 to consider all matters 

related to the Notice as required by 39 

U.S.C. 3622. 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 the Commission’s applicable 

regulations. Comments are due no later 

than November 22, 2010. 

The Commission appoints James 

Waclawski to represent the interests of 

the general public in this proceeding. 

See 39 U.S.C. 505. 

IV. Ordering Paragraphs 

It is ordered: 

1. The Commission establishes Docket 

No. R2011–1 to consider the matters 

raised by the Postal Service’s November 

2, 2010 Notice. 

2. Interested persons may submit 

comments on the planned adjustments 

to classification language and price 

changes. Comments are due November 

22, 2010. 

3. Pursuant to 39 U.S.C. 505, the 

Commission appoints James Waclawski 

to represent the interests of the general 

public (Public Representative) in this 

proceeding. 

4. The Commission directs the 

Secretary of the Commission to arrange 

for prompt publication of this Notice in 

the Federal Register. 

By the Commission. 

Shoshana M. Grove, 

Secretary. 

[FR Doc. 2010–28362 Filed 11–9–10; 8:45 am] 

BILLING CODE 7710–FW–P 

POSTAL REGULATORY COMMISSION 

[Docket No. CP2011–27; Order No. 578] 

Postal Rate Changes 

AGENCY: Postal Regulatory Commission. 

ACTION: Notice. 

SUMMARY: The Commission is noticing a 

recently-filed Postal Service request to 

change rates for Inbound Air Parcel Post 

at Universal Postal Union (UPU) rates. 

This notice addresses procedural steps 

associated with this filing. 

DATES: Comments are due: November 

18, 2010. 

ADDRESSES: Submit comments 

electronically via the Commission’s 

Filing Online system at http:// 

www.prc.gov. Commenters who cannot 

submit their views electronically should 

contact the person identified in FOR

FURTHER INFORMATION CONTACT by 

telephone for advice on alternatives to 

electronic filing. 

FOR FURTHER INFORMATION CONTACT: 

Stephen L. Sharfman, General Counsel, 

at 202–789–6820 or 

stephen.sharfman@prc.gov. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Introduction 

II. Background 

III. Notice of Filing 

IV. Ordering Paragraphs 

I. Introduction 

On November 3, 2010, the Postal 

Service filed a notice announcing 

changes in rates not of general 

applicability for Inbound Air Parcel Post 

at Universal Postal Union (UPU) rates 

effective January 1, 2011.1 The Notice 

incorporates by reference the 

explanation of Inbound Air Parcel Post 

at UPU Rates and the mechanism for 

setting rates contained in its request and 

supporting documentation filed in 

Docket Nos. MC2010–11 and CP2010– 

11.2 Id. at 2. 

In support of its Notice, the Postal 

Service filed four attachments as 

follows: 

1. Attachment 1—an application for 

non-public treatment of materials to 

maintain redacted rates and supporting 

documents under seal; 

2. Attachment 2—a redacted copy of 

Governors’ Decision No. 09–15 which 

establishes prices and classifications for 

Inbound Air Parcel Post at UPU Rates, 

proposed Mail Classification Schedule 

language which includes a description 

of Inbound Air Parcel Post at UPU 

Rates, certification of prices in 

conformity with 39 U.S.C. 3633, an 

analysis of the procedures for setting 

rates, and certification of the Governors’ 

vote; 

3. Attachment 3—a redacted version 

of the new rates; and 

4. Attachment 4—a certified statement 

required by 39 CFR 3015.5(c)(2) for 

Inbound Air Parcel Post at UPU rates. 


emcdonald on DSK2BSOYB1PROD with NOTICES