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 


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56890 Federal Register / Vol. 88, No. 160 / Monday, August 21, 2023 / Notices 

services that might be added to and paid 

for with these pieces), divided by the 

total volume of qualifying pieces,’’ 

which is then multiplied by the total 

volume of pieces eligible for credits and 

30 percent. Id. at 4–5. 

The Postal Service estimates the FirstClass Mail Growth Incentive ‘‘will spur 

$259 to $432 million in growth revenue, 

pay $78 to $130 million in credits, and 

result in $91 to $152 million in net 

contribution . . . .’’ Id. at 7. The Postal 

Service estimates that the Marketing 

Mail Growth Incentive will spur 

between $544 and $907 million in 

growth revenue, pay $163 to $272 

million in credits, and result in a net 

contribution of $17 to $28 million. Id. 

at 6–7. 

The Postal Service contends that the 

two incentives are rates of general 

applicability. Id. at 9. Under 39 CFR 

3030.122(i), the Postal Service must 

state whether it elects to generate 

unused rate adjustment authority. 39 

CFR 3030.122(i). The Postal Service 

states that it does elect to have the two 

incentives generate unused rate 

adjustment authority, but that 

‘‘sufficient billing determinants do not 

yet exist for the incentives to be 

included in any percentage calculation 

for a change in rates.’’ Id. at 8. The 

Postal Service states that the soonest it 

would have sufficient billing 

determinants to include the incentives 

in a percentage calculation for a change 

in rates and generate rate adjustment 

authority would be an omnibus rate case 

in 2025. Id. at 9. 

The Postal Service contends that 39 

CFR 3030.221, which requires the Postal 

Service to raise rates for noncompensatory products in 

compensatory classes by at least 2 

percentage points above the average for 

that class, does not apply in this 

proceeding because the Postal Service 

only seeks to lower prices. Id. at 12. The 

Postal Service also contends that 

applying 39 CFR 3030.221 to rate cases 

in which the Postal Service seeks to 

lower rates conflicts with 39 CFR 

3030.122(i), which it asserts ‘‘expressly 

contemplates and permits the Postal 

Service to bring rate cases in which it 

only lowers prices . . . .’’ Id. at 13. 

III. Initial Administrative Actions 

Pursuant to 39 CFR 3030.124(a), the 

Commission establishes Docket No. 

R2023–3 to consider the planned Market 

Dominant price change creating two 

incentives as well as the related 

classification changes identified in the 

Notice. The Commission invites 

comments from interested persons on 

whether the Postal Service’s planned 

price adjustments are consistent with 

applicable statutory and regulatory 

requirements. 39 CFR 3030.125. The 

applicable statutory and regulatory 

requirements the Commission considers 

in its review are the requirements of 39 

CFR part 3030, Commission directives 

and orders, and 39 U.S.C. 3626, 3627, 

and 3629. 39 CFR 3030.126(b). 

Comments are due no later than 

September 11, 2023. 39 CFR 3030.124(f). 

The Postal Service’s filing is available 

for review on the Commission’s website 

(http://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 John Avila to 

represent the interests of the general 

public (Public Representative) in this 

proceeding. 

IV. Ordering Paragraphs 

It is ordered: 

1. The Commission establishes Docket 

No. R2023–3 to consider the planned 

Market Dominant price change creating 

two incentives, as well as the related 

classification changes, identified in the 

Postal Service’s August 11, 2023 Notice. 

2. Comments on the planned price 

adjustments and related classification 

changes are due no later than September 

11, 2023. 

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

Avila is appointed to serve as an officer 

of the Commission 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. 

Mallory Richards, 

Attorney-Adviser. 

[FR Doc. 2023–17874 Filed 8–18–23; 8:45 am] 

BILLING CODE 7710–FW–P 

POSTAL SERVICE 

International Product Change—Priority 

Mail Express International, Priority Mail 

International & First-Class Package 

International Service Agreement 

AGENCY: Postal ServiceTM. 

ACTION: Notice. 

SUMMARY: The Postal Service gives 

notice of filing a request with the Postal 

Regulatory Commission to add a Priority 

Mail Express International, Priority Mail 

International & First-Class Package 

International Service contract to the list 

of Negotiated Service Agreements in the 

Competitive Product List in the Mail 

Classification Schedule. 

DATES: Date of notice: August 21, 2023. 

FOR FURTHER INFORMATION CONTACT: 

Christopher C. Meyerson, (202) 268– 

7820. 

SUPPLEMENTARY INFORMATION: The 

United States Postal Service® hereby 

gives notice that, pursuant to 39 U.S.C. 

3642 and 3632(b)(3), on August 11, 

2023, it filed with the Postal Regulatory 

Commission a USPS Request to Add 

Priority Mail Express International, 

Priority Mail International & First-Class 

Package International Service Contract 

25 to Competitive Product List. 

Documents are available at 

www.prc.gov, Docket Nos. MC2023–221 

and CP2023–225. 

Sarah Sullivan, 

Attorney, Ethics and Legal Compliance. 

[FR Doc. 2023–17863 Filed 8–18–23; 8:45 am] 

BILLING CODE 7710–12–P 

POSTAL SERVICE 

First-Class Mail and USPS Marketing 

Mail Growth Incentive 

AGENCY: Postal ServiceTM. 

ACTION: Notice. 

SUMMARY: The Postal Service is 

providing notice that it has filed with 

the Postal Regulatory Commission a 

market dominant price change creating 

two new incentives. 

DATES: August 21, 2023. 

FOR FURTHER INFORMATION CONTACT: 

Steven Mills, Director Product 

Management (Mailing Svcs.) at (202) 

268–7433. 

SUPPLEMENTARY INFORMATION: On August 

11, 2023, the United States Postal 

Service® filed with the Postal 

Regulatory Commission a notice of 

market dominant price change creating 

two new incentives. 

As indicated in the filing, the Postal 

Service will offer two new incentives 

designed to promote the growth of FirstClass Mail® (the ‘‘First-Class Mail 

Growth Incentive’’) and USPS 

Marketing Mail® (the ‘‘Marketing Mail 

Growth Incentive’’). The effective dates 

of both incentives is January 1, 2024, 

and the incentive period runs through 

December 31, 2024. Qualifying Market 

Dominant products eligible for the 

incentive are: First-Class Mail Presort 

Letters, First-Class Mail Presort Cards, 

First-Class Mail Presort Flats, USPS 


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