Federal Register / Vol. 88, No. 160 / Monday, August 21, 2023 / Notices 56887 

1USPS Notice of Filing of Contract and 

Supporting Data and Request to Add Publisher’s 

Clearing House Negotiated Service Agreement to 

the Market-Dominant Product List, with Portions 

Filed Under Seal, August 11, 2023 (Request). 

plant, when adjusted for siting and 

design variations, would provide useful 

qualitative risk insights for other U.S. 

operating plants. 

III. Availability of Documents 

The documents identified in the 

following table are available to 

interested persons through ADAMS, as 

indicated. 

Document description ADAMS accession 

No. 

SRM–SECY–11–0089, ‘‘Options for Proceeding with Future Level 3 Probabilistic Risk Assessment (PRA) Activities’’ ............ ML112640419 

Level 3 PRA Project, Volume 4: Overview of Reactor, At-Power, Level 1, 2, and 3 PRAs for Internal Fires, Seismic Events, 

and High Winds; Draft Report for Comment ............................................................................................................................. ML23194A015 

Level 3 PRA Project, Volume 4a: Reactor, At-Power, Level 1 PRA for Internal Fires ................................................................ ML23194A016 

Level 3 PRA Project, Volume 4b: Reactor, At-Power, Level 1 PRA for Seismic Events ............................................................. ML23194A017 

Level 3 PRA Project, Volume 4c: Reactor, At-Power, Level 1 PRA High Winds and Other Hazards ......................................... ML23194A012 

Level 3 PRA Project, Volume 4d: Reactor, At-Power, Level 2 PRA for Internal Fires, Seismic Events, and High Winds ......... ML23194A013 

Level 3 PRA Project, Volume 4e: Reactor, At-Power, Level 3 PRA for Internal Fires, Seismic Events, and High Winds ......... ML23194A014 

Dated: August 9, 2023. 

For the Nuclear Regulatory Commission. 

Jonathan E. Evans, 

Chief, Probability Risk Assessment Branch, 

Division of Risk Analysis, Office of Nuclear 

Regulatory Research. 

[FR Doc. 2023–17401 Filed 8–18–23; 8:45 am] 

BILLING CODE 7590–01–P 

POSTAL REGULATORY COMMISSION 

[Docket Nos. MC2023–222 and R2023–4; 

Order No. 6619] 

New Postal Products 

AGENCY: Postal Regulatory Commission. 

ACTION: Notice. 

SUMMARY: The Commission is 

recognizing a recent Postal Service filing 

requesting the addition of a negotiated 

service agreement with Publisher’s 

Clearing House to the Market Dominant 

product list. This notice informs the 

public of the filing, invites public 

comment, and takes other 

administrative steps. 

DATES: Comments are due: September 

11, 2023. 

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 

II. Overview of the Postal Service’s Filing 

III. Initial Administrative Actions 

IV. Ordering Paragraphs 

I. Introduction 

On August 11, 2023, the Postal 

Service filed a request to add a 

negotiated service agreement (NSA) 

with Publisher’s Clearing House (PCH) 

to the Market Dominant product list.1 If 

favorably reviewed by the Commission, 

the intended effective date will be in 

November or December 2023. Request at 

1. The Request, which was filed 

pursuant to 39 U.S.C. 3622 and 3642 as 

well as 39 CFR 3040 subparts B and G, 

triggers a notice-and-comment 

proceeding. 

II. Overview of the Postal Service’s 

Filing 

Contents of filing. The Postal Service’s 

filing consists of its Request, six 

attachments, and one set of financial 

workpapers: 

• Attachment A—a copy of 

Governors’ Resolution No. 23–5, 

establishing price and classification 

changes for Market Dominant products 

to implement a negotiated service 

agreement with PCH, which the Postal 

Service asserts conforms with 39 CFR 

3040.131(b); 

• Attachment B—a copy of the instant 

contract, which the Postal Service 

asserts conforms with 39 CFR 

3040.221(b); 

• Attachment C—proposed changes 

to the Mail Classification Schedule 

(MCS), which the Postal Service asserts 

conforms with 39 CFR 3040.131(f); 

• Attachment D—a proposed data 

collection plan, which the Postal 

Service asserts conforms with 39 CFR 

3040.222; 

• Attachment E—a statement of 

supporting justification, which the 

Postal Service asserts conforms with 39 

CFR 3040.132 and 39 CFR 3040.221(f)– 

(j); 

• Attachment F—an application for 

non-public treatment of ‘‘certain data 

which reflect commercially sensitive 

aspects of Publisher’s Clearing House’s 

business model, response rates, and 

strategy[,]’’ (id. Attachment F at 1), 

appearing in the Request and financial 

analysis, which the Postal Service 

asserts conforms with 39 CFR part 3011; 

and 

• Supporting Financial Analysis—an 

Excel file containing a financial 

analysis, which the Postal Service 

asserts conforms with 39 CFR 

3040.221(f) and demonstrates that the 

PCH NSA will improve the net financial 

position of the Postal Service. 

Request at 2–3, 9. 

Background. The Postal Service 

explains that in recent years the mailing 

industry has seen steady year-over-year 

decline in mail volumes. Id. at 3. To 

compensate for industry shifts away 

from direct mail, the Postal Service 

states that it ‘‘has been looking to 

strengthen its existing strategic 

partnerships and build new ones when 

opportunities arise.’’ Id. PCH ‘‘is a 

prominent direct mail marketing 

company that sends a variety of letter 

mail to consumers related to 

sweepstakes entries, marketing 

materials, invoicing, and related 

correspondence.’’ Id. The Postal Service 

explains that ‘‘PCH typically interacts 

with the Postal Service in a five-stage 

mailing and shipping lifecycle, which 

begins with promotional mailings and 

ends with bill payments.’’ Id. at 3–4. 

The Postal Service represents that 

PCH has found that certain dormant 

prospects (i.e., individuals not mailed to 

in at least 3 months) ‘‘are no longer 

profitable for PCH to send promotional 

mail to, because the lifetime value of 

these prospects falls below the cost of 

mailing . . . .’’ Id. at 4. The Postal 

Service asserts that an up-front discount 

on an initial USPS Marketing Mail 

promotional mailing would allow PCH 

to inject reactivation volume into the 


ddrumheller on DSK120RN23PROD with NOTICES1
56888 Federal Register / Vol. 88, No. 160 / Monday, August 21, 2023 / Notices 

2Public Law 109–435, 120 Stat. 3198 (2006). 

3See Docket Nos. MC2012–14 and R2012–8, 

Order Approving Addition of Valassis Direct Mail, 

Inc. Negotiated Service Agreement to the Market 

Dominant Product List, August 23, 2012, at 27 

(Order No. 1448); see also Newspaper Ass’n of 

America v. Postal Regul. Comm’n, 734 F.3d 1208 

(D.C. Cir. 2013) (denying petition for review of 

Order No. 1448). 

cycle that it would not have mailed 

under normal business practices. Id. 

The Postal Service avers that the 

resulting proportional increases in final 

mail volume is anticipated to be two 

times greater than if the dormant 

prospect mailing list were never 

reactivated. Id. Accordingly, the Postal 

Service states that it engaged in 

discussions with PCH ‘‘to determine 

whether an NSA could help PCH make 

these dormant prospecting mailings 

economically feasible,’’ while at the 

same time providing the Postal Service 

‘‘with a needed boost in volume, 

revenue, and contribution from 

additional follow-on mailings.’’ Id. 

The Postal Service’s position. The 

Postal Service asserts that the PCH NSA 

conforms to the policies embodied in 

the Postal Accountability and 

Enhancement Act (PAEA),2 the statutory 

standards supporting the desirability of 

special classifications (39 U.S.C. 

3622(c)(10)), and associated regulations. 

Id. at 3. The Postal Service provides a 

statement of supporting justification 

from Mr. Steven E. Mills, Director of 

Product Management, Mailing Services, 

which reviews the objectives and factors 

appearing in 39 U.S.C. 3622(b) and (c) 

and asserts, inter alia, that the PCH NSA 

will provide an incentive for profitable 

new mail; will enhance the financial 

position of the Postal Service; will 

encourage increased mail volume; and 

will not imperil the ability of USPS 

Marketing Mail (or the PCH NSA) to 

cover its attributable costs. See id. at 2; 

id. Attachment E at 1–3. The Postal 

Service states that the PCH NSA would 

also align with a core mission of the 

Delivering for America plan, as it would 

allow the Postal Service ‘‘to build and 

set new rational pricing strategies with 

long-standing partners.’’ 

Request at 4. 

PCH NSA. The Postal Service states 

that the PCH NSA is designed to give 

PCH a discounted initial mailing of 1 

million pieces of USPS Marketing Mail 

letters, mailed at cost. Id. at 5. This 

initial mailing would be limited to 1 

million dormant prospecting customer 

addresses, which PCH has not mailed to 

within the past 3 months. Id. In 

exchange for these discounts, the Postal 

Service represents that PCH has 

committed to certain performance 

targets for follow-on mailings (both from 

PCH to the addresses of the millionpiece mailing and to PCH from the 

addresses of the million-piece mailing) 

that are expected to result from the 

initial mailing, also known as the 

‘‘multiplier effect.’’ Id. PCH expects that 

2 million pieces will result from the 

initial mailing, mailed at published 

rates, within 9 months of the date of the 

initial mailing. Id. If the parties deem 

the initial mailing and performance 

satisfactory, an additional second 

prospecting mailing could be authorized 

at least 6 months after the initial 

mailing. Id. The Postal Service 

represents that ‘‘[t]he same performance 

period and targets would apply to the 

second mailing.’’ Id. 

The parties intend for the PCH NSA 

to take effect in November or December 

2023, assuming favorable review by the 

Commission. Id. The Postal Service 

states that the initial mailing date would 

then be established at least 30 calendar 

days after the effective date of the 

contract, expected to be in January 2024 

or shortly thereafter. Id. at 5–6. The 

contract term would be for 1 year from 

the date of the initial mailing. Id. at 6. 

If the parties were to agree to a second 

mailing, then the NSA term would 

conclude 1 year from the date of the 

second mailing. Id. 

The contract contains a termination 

for convenience provision, which 

allows either party to terminate the NSA 

without penalty upon 30 days’ written 

notice to the other party, provided that 

no termination by the Postal Service 

would be effective during the 15-week 

period prior to either the initial mailing 

or the potential subsequent mailing. Id. 

Additionally, either party may 

immediately terminate the NSA for 

breach of any material term of the 

contact, if the breaching party fails to 

cure such breach within 5 business days 

after receiving written notice from the 

non-breaching party describing the 

breach. Id. 

Similarly situated mailers. The Postal 

Service states that if the NSA were to 

prove successful at improving the 

financial position of the Postal Service 

as expected, then the Postal Service 

‘‘stands ready to consider NSAs on 

comparable terms to similarly situated 

mailers, provided that [they] can 

provide a similar ‘multiplier effect’ and 

are willing to commit to performance 

targets that mitigate the financial risk to 

the Postal Service.’’ Id. 

Financial analysis. The Postal Service 

states that to both incent PCH to meet 

certain performance targets and protect 

the financial interests of the Postal 

Service, the financial terms of the PCH 

NSA consist of three primary 

components: 

• The Postal Service would provide 

PCH with an initial 1-million-piece 

mailing priced at the Postal Service’s 

attributable cost, which the Postal 

Service asserts would result in 

approximately $128,000 in revenue. To 

maintain this discount, PCH would 

need to achieve at least 50 percent of its 

forecasted total multiplier volume. 

• If PCH were to not achieve at least 

50 percent of the forecasted multiplier 

volume, PCH would lose the discount 

on the initial mailing, which would be 

paid back to the Postal Service. The 

Postal Service asserts that this would 

result in approximately $299,000 in 

total postage and $171,000 in 

contribution from the initial mailing, 

plus however much multiplier 

percentage PCH were able to achieve. 

• If PCH were to achieve 90 percent 

of more of the multiplier volume, the 

Postal Service would provide an 

additional discount to PCH of the price 

paid for the initial mailing in the form 

of a postage credit of approximately 

$128,000. 

Id. at 6–7. The Postal Service maintains 

that under any scenario, it would see an 

improvement in its financial position. 

Id. at 8. 

Possibility of harm to the 

marketplace. Pursuant to 39 U.S.C. 

3622(c)(10)(B), a Market Dominant NSA 

may not ‘‘cause unreasonable harm to 

the marketplace.’’ The Postal Service 

maintains that the PCH NSA will not 

cause any such harm. Id. at 10. The 

Postal Service states that the NSA will 

cover its attributable costs in all cases, 

and to the extent the Postal Service 

might have overestimated the multiplier 

effect, risk mitigation provisions have 

been agreed to, in which PCH must pay 

back the amount of the discounted 

mailing if specified performance metrics 

are not achieved. Id. The Postal Service 

notes that the Commission has 

previously found ‘‘unreasonable harm to 

the marketplace’’ to consist of 

anticompetitive pricing, i.e., pricing 

below cost,3 and the Postal Service 

states that since the terms of the 

contract would price the postage of the 

initial mailing and the potential 

subsequent mailing at cost, the 

proposed rates would be neither 

anticompetitive nor unreasonably 

harmful to the marketplace. 

Request at 10–11. 

Notice. The Postal Service represents 

that it will inform customers of the new 

proposed classification changes and 

associated price effects through 

publication in the Federal Register. Id. 

at 2. 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 160 / Monday, August 21, 2023 / Notices 56889 

1United States Postal Service Notice of Market 

Dominant Price Change Creating Two Incentives, 

August 11, 2023 (Notice). 

2Notice, Excel files ‘‘Marketing Mail Incentive_

Projections.xls,’’ ‘‘First Class Mail Incentive_

Projections.xls,’’ and ‘‘CY24 Consolidated 

Incentives_Projections.xlsx.’’ 

III. Initial Administrative Actions 

The Commission establishes Docket 

No. MC2023–222 and Docket No. 

R2023–4 for consideration of the 

Request pertaining to the proposed new 

product and the related contract, 

respectively. 

Interested persons may submit 

comments on whether the Postal 

Service’s filings in the captioned 

dockets are consistent with the policies 

of 39 U.S.C. 3622 and 3642, as well as 

39 CFR part 3040. Comments are due 

September 11, 2023. The public 

portions of the Postal Service’s filing are 

available for review on the 

Commission’s website (https://

www.prc.gov). Comments and other 

material filed in this proceeding will be 

available for review on the 

Commission’s website unless the 

information contained therein is subject 

to an application for non-public 

treatment. The Commission’s rules on 

non-public materials (including access 

to documents filed under seal) appear in 

39 CFR part 3011. 

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

Commission appoints Stephanie A. 

Quick to represent the interests of the 

general public (Public Representative) 

in these dockets. 

IV. Ordering Paragraphs 

It is ordered: 

1. The Commission establishes Docket 

No. MC2023–222 and Docket No. 

R2023–4 for consideration of the matters 

raised in each docket. 

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

Stephanie A. Quick is appointed to 

serve as an officer of the Commission 

(Public Representative) to represent the 

interests of the general public in these 

proceedings. 

3. Comments are due September 11, 

2023. 

4. The Commission directs the 

Secretary of the Commission to arrange 

for publication of this order in the 

Federal Register. 

By the Commission. 

Mallory Richards, 

Attorney-Adviser. 

[FR Doc. 2023–17904 Filed 8–18–23; 8:45 am] 

BILLING CODE 7710–FW–P 

POSTAL REGULATORY COMMISSION 

[Docket No. R2023–3; Order No. 6618] 

Market Dominant Price Adjustment 

AGENCY: Postal Regulatory Commission. 

ACTION: Notice. 

SUMMARY: The Commission is 

recognizing a recently filed Postal 

Service notice of a Market Dominant 

price change proposing two incentives, 

along with proposed classification 

changes. This notice informs the public 

of the filing, invites public comment, 

and takes other administrative steps. 

DATES: Comments are due: September 

11, 2023. 

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 

II. Overview of the Postal Service’s Filing 

III. Initial Administrative Actions 

IV. Ordering Paragraphs 

I. Introduction 

On August 11, 2023, the Postal 

Service filed a notice of a Market 

Dominant price change proposing two 

incentives, along with classification 

changes to the Mail Classification 

Schedule (MCS).1 The intended 

effective date for the two new incentives 

is January 1, 2024. Notice at 1. The 

Notice, which was filed pursuant to 39 

CFR part 3030, triggers a notice-andcomment proceeding. 39 CFR 3030.124. 

II. Overview of the Postal Service’s 

Filing 

The Postal Service’s filing consists of 

the Notice, which the Postal Service 

represents addresses applicable 

requirements of 39 CFR 3030.122 and 39 

CFR 3030.123; one PDF attachment 

(Attachment A) to the Notice; and three 

Excel workbooks entitled ‘‘Marketing 

Mail Incentive_Projections.xls,’’ ‘‘First 

Class Mail Incentive_Projections.xls,’’ 

and ‘‘CY24 Consolidated Incentives_

Projections.xlsx.’’ 

Attachment A includes the changes to 

the MCS necessary to implement the 

incentives. Notice, Attachment A. The 

three Excel workbooks contain the 

Postal Service’s financial models to 

support the proposed incentives.2

The Postal Service states that 

‘‘incentives build stronger relationships 

between the Postal Service and the 

mailing industry and encourage mailers 

to continue to use the mail to engage 

with their customers, expand their 

customer base, and increase customer 

loyalty.’’ Notice at 2–3. The Postal 

Service also asserts that ‘‘incentives 

have the potential to improve the Postal 

Service’s overall financial position.’’ Id. 

at 3. Based on this, as well as declining 

volume trends, the Postal Service 

proposes an incentive for First-Class 

Mail (First-Class Mail Growth Incentive) 

and an incentive for USPS Marketing 

Mail (Marketing Mail Growth Incentive). 

Id. 

The Postal Service states that the two 

incentives are ‘‘substantially identical.’’ 

Id. A mailer would be eligible for the 

First-Class Mail Growth Incentive when 

its combined volume of qualifying 

pieces in the incentive period, Calendar 

Year (CY) 2024, exceeds the incentive 

threshold. Id. The qualifying pieces are 

First-Class Mail Presort Letters; FirstClass Mail Presort Cards; or First-Class 

Mail Presort Flats. Id. Similarly, a 

mailer would be eligible for the 

Marketing Mail Growth Incentive when 

its combined volume of qualifying 

pieces in CY 2024 exceeds the incentive 

threshold. Id. The qualifying pieces are 

USPS Marketing Mail Letters and High 

Density/Saturation Letters; USPS 

Marketing Mail Flats and High Density/ 

Saturation Flats & Parcels; USPS 

Marketing Mail Carrier Route; or USPS 

Marketing Mail Parcels. Id. 

Under both incentives, ‘‘for every 

qualifying piece mailed in calendar year 

2024 after the first million pieces, 

mailers receive a credit equal to 30 

percent of the average per-piece price 

paid for mailing all qualifying pieces, 

unless the volume of qualifying pieces 

the mailer sent in the preceding fiscal 

year exceeded 1,000,000 pieces. In that 

case, credits accrue only after the mailer 

surpasses its fiscal year 2023 volume of 

qualifying pieces.’’ Id. The Postal 

Service states that its use of CY 2024 for 

the incentive period and Fiscal Year 

2023 for the comparison period ‘‘is 

intentional’’ and ‘‘allows the Postal 

Service time to complete the 

administrative setup of the incentives 

before the incentive period begins.’’ Id. 

at 4. The Postal Service states that 

calculating the credits earned is 

‘‘somewhat complex’’ because ‘‘[t]here 

is more than one qualifying product for 

each incentive, and within any given 

product, pieces of different weights, 

sortation levels, and dropship locations 

have different prices.’’ Id. The Postal 

Service states that for each incentive, 

the credits earned are equal to ‘‘the total 

actual price paid for all qualifying 

pieces (not including any special 


ddrumheller on DSK120RN23PROD with NOTICES1