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[Federal Register Volume 89, Number 231 (Monday, December 2, 2024)]
[Notices]
[Pages 95250-95252]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-28100]

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POSTAL REGULATORY COMMISSION

[Docket No. CP2025-1; Order No. 8131]

Competitive Postal Products

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is recognizing a recently filed Postal Service 
document with the Commission concerning changes in rates of general 
applicability for Competitive products. This notice informs the public 
of the filing, invites public comment, and takes other administrative 
steps.

DATES: Comments are due: December 13, 2024.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at https://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.

[[Page 95251]]

FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at 
202-789-6820.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
II. Summary of Changes
III. Initial Administrative Actions
IV. Ordering Paragraphs

I. Introduction

    On November 15, 2024, the Postal Service filed notice with the 
Commission concerning changes in rates and classifications of general 
applicability for Competitive products.\1\ The Postal Service 
represents that, as required by 39 CFR 3035.102(b) and 39 CFR 
3035.104(b), the Notice includes an explanation and justification for 
the changes, the effective date, and a schedule of the changed rates. 
Notice at 1. The changes are scheduled to take effect on January 19, 
2025. Id.
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    \1\ USPS Notice of Changes in Rates and Classifications of 
General Applicability for Competitive Products, November 15, 2024 
(Notice). Pursuant to 39 U.S.C. 3632(b)(2), the Postal Service is 
obligated to publish the Governors' Decision and record of 
proceedings in the Federal Register at least 30 days before the 
effective date of the new rates.
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    Attached to the Notice is Governors' Decision No. 24-7, which 
states the new prices are in accordance with 39 U.S.C. 3632 and 3633 
and 39 CFR 3035.102-.104.\2\ The Governors' Decision provides an 
analysis of the Competitive products' price and classification changes 
intended to demonstrate that the changes comply with 39 U.S.C. 3633 and 
39 CFR part 3035. Governors' Decision No. 24-7 at 1. The Attachment to 
the Governors' Decision No. 24-7 sets forth the classification and 
price changes and includes draft Mail Classification Schedule (MCS) 
language for Competitive products of general applicability.
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    \2\ Notice, Decision of the Governors of the United States 
Postal Service on Changes in Rates and Classifications of General 
Applicability for Competitive Products (Governors' Decision No. 24-
7), at 1 (Governors' Decision No. 24-7).
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    In addition, the Notice includes a non-public annex showing FY 2025 
projected volumes, revenues, attributable costs, contribution, and cost 
coverage for each product. See Notice at 1. The Postal Service also 
filed supporting forecast data and price adjustment calculations for 
each affected product as required by Order No. 1062. Id.
    The Notice also includes an application for non-public treatment of 
the unredacted version of the annex to the Governors' Decision, as well 
as the supporting materials for the data. Id. at 1-2.

II. Summary of Changes

    The Notice proposes price changes to Priority Mail Express, 
Priority Mail, Parcel Select, and USPS Ground Advantage, and several 
International Products. Id. at 2. Additionally, the proposed changes 
include price adjustments to Domestic Extra Services, including Premium 
Forwarding Service, Competitive Post Office Boxes, and Adult Signature 
Service among others. Id. The Postal Service proposes one 
classification change consisting of a new Live Animal and Perishable 
Handling Fee under the Priority Mail Express, Priority Mail, and USPS 
Ground Advantage products. Id. at 2-3. The Postal Service states that 
the Live Animal and Perishable Handling Fee is a change in rates of 
general applicability for Competitive products within the meaning of 39 
CFR 3035.102. Id. at 3. No other price or classification changes are 
proposed in this docket. Id.; See Governors' Decision No. 24-7 at 2-5. 
The changes are summarized below and condensed to Table I-1.

A. Price changes

1. Domestic
    Priority Mail Express changes. The proposed changes to the MCS in 
the Governors' Decision No. 24-7 show the Postal Service's planned 
price changes for Priority Mail Express. On average, Priority Mail 
Express prices are proposed to increase 3.2 percent. See id. at 2. For 
January 2025, the Postal Service will maintain the consolidation of 
Commercial Base and Commercial Plus price categories into one 
Commercial price category and the differentiated ``Local, 1, 2'' Zone 
prices and dimensional weighting for all zones. Id. The retail prices 
for Priority Mail Express will increase an average of 3.2 percent. Id. 
On average, commercial prices will increase by 3.2 percent and reflect 
an average of 12.4 percent discount off of retail prices. Id. For 
January 2025, the Postal Service proposes a Live Animal and Perishable 
Handling Fee of $7.50. Id.
    Priority Mail changes. The proposed changes to the MCS in the 
Governors' Decision No. 24-7 show the Postal Service's planned price 
changes for Priority Mail. On average, Priority Mail prices are 
proposed to increase 3.2 percent. See id. For January 2025, the Postal 
Service will maintain the consolidation of Commercial Base and 
Commercial Plus price categories into one Commercial price category and 
the differentiated ``Local, 1, 2'' Zone prices and dimensional 
weighting for all zones. Id. On average, the retail prices will 
increase by 3.2 percent. Id. The commercial prices will increase by an 
average of 3.2 percent and reflect an average of 20.8 percent discount 
off retail prices. Id. For January 2025, the Postal Service proposes a 
Live Animal and Perishable Handling Fee of $15.00. Id. at 2-3.
    Parcel Select. The proposed changes to the MCS in the Governors' 
Decision No. 24-7 show the Postal Service's planned price changes for 
Parcel Select. On average, Parcel Select prices are proposed to 
increase 9.2 percent. See id. at 3. The average price increase for 
parcels entered in destination delivery units is 10.3 percent and the 
average price increase for parcels entered at destination hubs is not 
changing. Id. The average price increase for parcels entered at 
destination sectional center facilities and destination network 
distribution centers and is 7.1 percent and 9.7 percent, respectively. 
Id. For USPS Connect Local, introduced in 2022, the average increase is 
5.4 percent. Id. The Postal Service proposes to maintain dimensional 
weighting which was introduced for all zones in 2019. Id. The fee for 
Forward and Return to Sender will be increased to $3.60 and the fee for 
Address Correction Service with Shipper Paid Forwarding/Returns will be 
increased to $3.00. Id.
    USPS Ground Advantage. The proposed changes to the MCS in the 
Governors' Decision No. 24-7 show the Postal Service's planned price 
changes for USPS Ground Advantage overall will increase an average of 
3.9 percent. Id. The retail prices will increase an average of 4.9 
percent and commercial will increase an average of 3.2 percent. Id. The 
Alaska Limited Overland Routes price category will increase an average 
of 9.0 percent. Id. For January 2025, the Postal Service proposes a 
Live Animal and Perishable Handling Fee of $7.50. Id.
    Domestic Extra Services. The proposed changes to the MCS in the 
Governors' Decision No. 24-7 show the Postal Service's planned price 
changes for Premium Forwarding Service will increase an average of 6.1 
percent. Id. Prices for Adult Signature service will decrease to $8.40 
for basic service and $8.65 for person-specific service. Id. On 
average, prices for Address Enhancement Service are proposed to 
increase 8.9 percent. Id. Competitive Post Office Box prices will 
increase an average of 5.7 percent. Id. at 3-4. Package Intercept 
Services prices will increase to $18.35. Id. at 4. Premium Data 
Retention and Retrieval Service (USPS Tracking Plus) will increase 86.3 
percent. Id. The fee for overweight/oversized items will increase from 
$100 to $200. Id. The Postal Service also

[[Page 95252]]

proposes to increase the ``upper bounds'' of the price ranges for 
Greeting Cards and Stationery and Officially Licensed Retail Products 
to accommodate current and future offerings. Id.
2. International
    Expedited Services. The proposed changes to the MCS in the 
Governors' Decision No. 24-7 show the Postal Service's planned price 
changes for Priority Mail Express International will increase an 
average of 4.9 percent with Commercial Plus equivalent to Commercial 
Base. Id.
    Priority Mail International. The proposed changes to the MCS in the 
Governors' Decision No. 24-7 show the Postal Service's planned price 
changes for Priority Mail International will increase an average of 4.9 
percent with Commercial Plus prices equivalent to Commercial Base. Id.
    International Priority Airmail and International Surface Air Lift. 
The proposed changes to the MCS in the Governors' Decision No. 24-7 
show the Postal Service's planned published price changes for 
International Priority Airmail and International Surface Air Lift will 
have an average increase of 4.9 percent and 28.9 percent, respectively. 
Id.
    Airmail M-Bags. The published price changes for Airmail M-Bags will 
remain the same on average ``although a few prices will change 
slightly.'' Id.
    First-Class Package International Service. The proposed changes to 
the MCS in the Governors' Decision No. 24-7 show the Postal Service's 
planned price changes for First-Class Package International Service 
will increase an average of 4.9 percent with Commercial Plus prices 
equivalent to Commercial Base. Id.
    International Ancillary Service and Special Services. The proposed 
changes to the MCS in the Governors' Decision No. 24-7 show the Postal 
Service's planned price changes for several international ancillary 
services. Id. at 5. The price for International Certificate of Mailing 
will increase by 5.0 percent, while the price for International 
Registered Mail will increase by an average of 4.8 percent. Id. Lastly, 
the price for International Insurance will decrease by 10.0 percent and 
the price for Customs and Clearance Delivery Fee will increase by an 
average of 3.5 percent. Id.

B. Classification Changes

    Live Animal and Perishable Handling Fee. For January 2025, the 
Postal Service proposes a Live Animal and Perishable Handling Fee for 
Priority Mail Express, Priority Mail, and USPS Ground Advantage to 
cover the additional costs associated with handling and transporting 
these items. Notice at 2-3.
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    \3\ The Postal Service describes the Overweight Item Charge as 
``the fee for deterring overweight/oversized items found in the 
system.'' Governors' Decision 24-7 at 4.
    \4\ The Postal Service states that for Airmail M-Bags ``a few 
prices will change slightly.'' Id.

                    Table I--1 Proposed Price Changes
------------------------------------------------------------------------
                                                                Average
                                                                 price
                        Product name                           increase
                                                               (percent)
------------------------------------------------------------------------
                      Domestic Competitive Products
------------------------------------------------------------------------
Priority Mail Express.......................................         3.2
    Retail..................................................         3.2
    Commercial..............................................         3.2
Priority Mail...............................................         3.2
    Retail..................................................         3.2
    Commercial..............................................         3.2
Parcel Select...............................................         9.2
    Destination Delivery Unit...............................        10.3
    Destination Hub.........................................         0.0
    Destination Sectional Center Facility...................         7.1
    Destination Network Distribution Center.................         9.7
    Connect Local...........................................         5.4
USPS Ground Advantage.......................................         3.9
    Retail..................................................         4.9
    Commercial..............................................         3.2
------------------------------------------------------------------------
                         Domestic Extra Services
------------------------------------------------------------------------
Premium Forwarding Service..................................         6.1
Adult Signature Service.....................................
    Basic...................................................       -10.2
    Person-Specific.........................................       -10.4
Competitive Post Office Box.................................         5.7
Package Intercept Service...................................         4.9
Address Enhancement Service.................................         8.9
Premium Data Retention and Retrieval........................        86.3
------------------------------------------------------------------------
                             Other Domestic
------------------------------------------------------------------------
Overweight Item Charge......................................     \3\ 100
------------------------------------------------------------------------
                   International Competitive Products
------------------------------------------------------------------------
Priority Mail Express International.........................         4.9
Priority Mail International.................................         4.9
International Priority Airmail..............................         4.9
International Surface Air Lift..............................        28.9
Airmail M-Bags..............................................     \4\ 0.0
First-Class Package International Service...................         4.9
------------------------------------------------------------------------
          International Ancillary Services and Special Services
------------------------------------------------------------------------
International Certificate of Mailing........................         5.0
International Insurance.....................................       -10.0
International Registered Mail...............................         4.8
Customs and Clearance Delivery Fee..........................         3.5
------------------------------------------------------------------------
Source: See Governors' Decision No. 24-7 at 2-5. Percentage increases
  for Adult Signature Service and Package Intercept Service are
  calculated based on the proportional difference between current rates
  as shown in the MCS and the proposed rates specified in Governors'
  Decision No. 24-7.

III. Initial Administrative Actions

    The Commission establishes Docket No. CP2025-1 to consider the 
Postal Service's Notice. Interested persons may express views and offer 
comments on whether the planned changes are consistent with 39 U.S.C. 
3632, 3633, and 3642, 39 CFR part 3035, and 39 CFR 3040 subparts B and 
E. Comments are due no later than December 13, 2024. For specific 
details of the planned price changes, interested persons are encouraged 
to review the Notice, which is available on the Commission's website at 
www.prc.gov.
    Pursuant to 39 U.S.C. 505, Samuel J. Robinson is appointed to serve 
as Public Representative to represent the interests of the general 
public in this docket.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. CP2025-1 to provide 
interested persons an opportunity to express views and offer comments 
on whether the planned changes are consistent with 39 U.S.C. 3632, 
3633, and 3642, 39 CFR part 3035, and 39 CFR part 3040 subparts B and 
E.
    2. Comments are due no later than December 13, 2024.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Samuel J. 
Robinson to serve as an officer of the Commission (Public 
Representative) to represent the interests of the general public in 
this docket.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2024-28100 Filed 11-29-24; 8:45 am]
BILLING CODE 7710-FW-P
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