§ 3041.205 Advance review of non-published rates products and standardized distinct products. ( a ) The Commission reviews proposed financial models, minimum rates, and Mail Classification Schedule changes in streamlined-option rulemakings to permit streamlined review of non-published rates products and standardized distinct products.
( b ) Streamlined-option rulemakings follow the procedures set forth in part 3010, subpart E of this chapter and the additional procedures set forth in this section.
( c ) In addition to providing the information required by § 3010.201(b)(1) of this chapter, a petition for a streamlined-option rulemaking must: ( 1 ) Provide a proposed financial model containing: ( i ) Minimum rates for all rate cells;
( ii ) Projected volume for all rate cells;
( iii ) Projected revenue at minimum rates;
( iv ) Projected costs attributable;
( v ) Projected coverage of costs attributable within the meaning of 39 U.S.C. 3633(a), expressed as a percentage; and
( vi ) All input data, sources, and calculations used;
( 2 ) Provide a narrative explanation of how the proposed financial model complies with paragraph (d)(1) of this section;
( 3 ) Explain why the projected cost, revenue, and volume data in the proposed financial model are reasonable and reliable;
( 4 ) Identify the existing competitive product(s) on which proposed products will be based and the Commission order(s) in which such existing competitive product(s) were determined to be competitive;
( 5 ) Identify each way in which proposed products could differ from the existing competitive product(s) identified in paragraph (c)(4) of this section;
( 6 ) Explain why the potential differences identified in paragraph (c)(5) of this section do not cause any proposed products to satisfy the definition of a market dominant product within the meaning of 39 U.S.C. 3642(b)(1); and
( 7 ) Identify the Mail Classification Schedule section in which proposed products will be listed and provide any proposed changes therein in legislative format.
( d ) The financial model must: ( 1 ) Demonstrate that each negotiated service agreement that will use the minimum rates is not inconsistent with the standards of 39 U.S.C. 3633; and
( 2 ) Rely on reasonable and reliable projected cost, revenue, and volume data.
( e ) The Mail Classification Schedule entry, including any proposed changes, must: ( 1 ) Identify all material differences between proposed products and the exiting competitive product(s) on which proposed products are based;
( 2 ) Specify all options and features of proposed products included in the financial model; and
( 3 ) For proposed products based on an existing product with rates not of general applicability, including a negotiated service agreement, describe all material aspects of the proposed products, including the information identified in § 3040.104(b)(3)(ii)(A) of this chapter.
( f ) The Commission will issue an order authorizing the proposed financial model, minimum rates, and any Mail Classification Schedule changes for use in requests to add standardized distinct products and non-published rates products to the competitive product list if, after review, the Commission finds that: ( 1 ) The financial model and minimum rates are not inconsistent with the standards of 39 U.S.C. 3633;
( 2 ) The products using such proposed financial model, minimum rates, and Mail Classification Schedule changes will be competitive products; and
( 3 ) The proposed Mail Classification Schedule changes comply with the requirements of this section and are not inconsistent with the proposed financial model.
( g ) As a condition of any authorization issued pursuant to paragraph (f) of this section, the Postal Service shall be required to update the financial model whenever more accurate or complete cost, revenue, or volume data are available and no less frequently than every 12 months from the date on which such authorization is granted. Upon review of any updated financial model, the Commission may require changes to any applicable minimum rates to ensure that the minimum rates are not inconsistent with the standards of 39 U.S.C. 3633.