[Federal Register Volume 80, Number 16 (Monday, January 26, 2015)]
[Notices]
[Pages 3995-3996]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-01238]


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POSTAL REGULATORY COMMISSION

[Docket No. R2015-4; Order No. 2327]


Market Dominant Price Adjustment

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently-filed Postal Service 
notice announcing inflation-based rate adjustments affecting market 
dominant domestic and international products and services, along with 
four temporary mailing promotions and numerous proposed classification 
changes. The adjustments and other changes are scheduled to take effect 
April 26, 2015. This notice informs the public of the filing, invites 
public comment, and takes other administrative steps.

DATES: Comments are due: February 4, 2015.

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
III. Initial Administrative Actions
IV. Ordering Paragraphs

I. Introduction

    On January 15, 2015, the Postal Service filed a notice of 
inflation-based rate adjustments affecting market dominant domestic and 
international products and services, along with four temporary mailing 
promotions and numerous proposed classification changes.\1\ The 
intended effective date is April 26, 2015. Notice at 1.
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    \1\ United States Postal Service Notice of Market-Dominant Price 
Adjustment, January 15, 2015 (Notice). The Notice includes a set of 
attachments filed as a separate public pdf.
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    The Notice, which was filed pursuant to 39 U.S.C. 3622 and 39 CFR 
part 3010, triggers an expedited notice-and-comment proceeding.\2\ The 
Notice is also more complex than the typical annual adjustment filing 
due to the impact of surcharges associated with the exigent rate case 
(Docket No. R2013-11) and the issue of rate design, especially new and 
merged rate cells.\3\ The Postal Service addresses the impact on rate 
design in its Notice. Notice at 16-17. The Postal Service also presents 
two sets of rates: With and without the exigent surcharges. See id., 
Attachment A, Part I and Part II.
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    \2\ This is a Type 1-A proceeding. See 39 CFR part 3010, 
subparts A-C for additional information, including the controlling 
consumer price index, and Notice at 3.
    \3\ See Docket No. R2013-11, Order No. 1926, Order Granting 
Exigent Price Increase, December 24, 2013.
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II. Overview

 A. Filing Details

    Contents in general. The Postal Service's filing consists of a 
detailed Notice which addresses the data and information required under 
39 CFR 3010.13; five attachments \4\ to the Notice; and six sets of 
workpapers filed as library references.
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    \4\ Notice, Attachments A-E. Attachment A also assumes First-
Class Mail Parcels, which are the subject of a pending transfer 
request in Docket No. MC2015-7, are a market dominant product. See 
Notice at 20, n.12.
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    Attachments. Attachment A, Part I presents the proposed Mail 
Classification Schedule (MCS) changes (in legislative format) with 
prices that reflect base (Docket No. R2013-10) prices plus the new 
proposed increases without the exigent surcharges. Attachment A, Part 
II presents the MCS changes with prices (base plus the new proposed 
increases) that include the exigent (Docket No. R2013-11) 
surcharges.\5\ The other attachments address workshare discounts and 
related information; the price cap calculation; the 2015 mailing 
promotions and incentives calendar; and adjusted exigent surcharges for 
new rate cells. See id. Attachments B-E, respectively.
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    \5\ The Postal Service adopts the November 24, 2014 MCS as the 
base version for showing proposed changes. See id. at 53, n.27.
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    Library references. The library references present supporting 
financial documentation for the five classes of mail and for First-
Class Mail International. See Notice at 4-5. The First-Class Mail 
International Library Reference was filed under seal.\6\
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    \6\ See Notice of the United States Postal Service of Filing of 
USPS-LR-R2015-4/NP1, January 15, 2015.
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B. Planned Price Adjustments

    The Postal Service's planned percentage changes by class are, on 
average:

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                                                               Price
                  Market dominant class                     adjustment
                                                           authority (%)
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First-Class Mail........................................           1.949
Standard Mail...........................................           1.886
Periodicals.............................................           1.965

[[Page 3996]]

 
Package Services........................................           1.964
Special Services........................................           0.234
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Notice at 5.

    Nature of adjustments. Most of the planned adjustments entail 
increases to market dominant rates and fees; however, in a few 
instances, the Postal Service proposes either no adjustment or a 
decrease. In addition, price adjustments for products within classes 
vary from the average, sometimes substantially. See, e.g., id. at 17, 
21 (Table 5 showing range for First-Class Mail products) and (Table 7 
showing range for Standard Mail products).
    Proposed classification changes. The Postal Service proposes 
numerous classification changes in its Notice. Id. at 53-55. It 
identifies the impact on the MCS in Attachment A, Part I and Part II.
    Calendar year promotions. The Postal Service seeks approval for the 
following four promotions for the periods indicated:
    <bullet> Earned Value Reply Mail Promotion (May-July 2015);
    <bullet> Advanced and Emerging Technology Promotion (May-October 
2015);
    <bullet> Color Transpromo Promotion (June-November 2015); and
    <bullet> Mail Drives Mobile Engagement Promotion (July-December 
2015).
    Id. at 7-8.
    Note to all interested persons. The Notice and related filings, 
including library references, provide important additional details 
concerning the planned adjustments, mailing promotions, and 
classification changes. The Commission strongly encourages interested 
persons to carefully review the Notice and all related filings, 
including new MCS language relating to changes corresponding to the 
exigent surcharges, and to monitor the Commission's Web site for 
additional information, including potential revisions to the Notice.

III. Initial Administrative Actions

    Public notice. The Commission hereby provides public notice of the 
Postal Service's filing and pursuant to rule 3010.14 establishes Docket 
No. R2015-4 to consider the planned price adjustments in rates and fees 
for market dominant postal products and services, as well as the 
related classification changes, identified in the Postal Service's 
January 15, 2015 Notice. The Commission invites comments from 
interested persons on whether the Notice is consistent with 39 U.S.C. 
3622 and the requirements of 39 CFR part 3010. Comments are due no 
later than February 4, 2015.
    Availability of documents. The Commission has posted the public 
portions of the Postal Service's filing on its Web site at http://www.prc.gov. The Commission will post revisions to the filing (if any) 
or other documents the Postal Service submits in this docket on its Web 
site, along with related Commission documents, comments, or other 
submissions, unless such filings are the subject of an application for 
non-public treatment. The Commission's policy on access to documents 
filed under seal appears in 39 CFR part 3007.
    Public Representative. 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.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. R2015-4 to consider 
planned price adjustments in rates and fees for market dominant postal 
products and services and related classification changes identified in 
the Postal Service's January 15, 2015 Notice.
    2. Comments on the planned price adjustments and related 
classification changes are due no later than February 4, 2015.
    3. Pursuant to 39 U.S.C. 505, James Waclawski is appointed to serve 
as an officer of the Commission (Public Representative) to represent 
the interests of the general public in this proceeding.
    5. 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. 2015-01238 Filed 1-23-15; 8:45 am]
BILLING CODE 7710-FW-P