Federal Register / Vol. 73, No. 22 / Friday, February 1, 2008 / Notices 6219 

1 Governors’ Decision on Docket No. MC2004–2 

(October 29, 2004). 

2 Governors’ Decision on Docket No. R2006–1, at 

13–14 (March 19, 2007). 

to be added to the distribution, please 

contact the Office of the Secretary, 

Washington, DC 20555 (301–415–1969). 

In addition, distribution of this meeting 

notice over the Internet system is 

available. If you are interested in 

receiving this Commission meeting 

schedule electronically, please send an 

electronic message to dkw@nrc.gov. 

Dated: January 29, 2008. 

R. Michelle Schroll, 

Office of the Secretary. 

[FR Doc. 08–475 Filed 1–30–08; 10:15 am] 

BILLING CODE 7590–01–P 

PENSION BENEFIT GUARANTY 

CORPORATION 

Submission of Information Collection 

for OMB Review; Comment Request; 

Liability for Termination of SingleEmployer Plans 

AGENCY: Pension Benefit Guaranty 

Corporation. 

ACTION: Notice of request for extension 

of OMB approval. 

SUMMARY: The Pension Benefit Guaranty 

Corporation (‘‘PBGC’’) is requesting that 

the Office of Management and Budget 

(‘‘OMB’’) extend approval, under the 

Paperwork Reduction Act, of a 

collection of information in its 

regulation on Liability for Termination 

of Single-Employer Plans, 29 CFR Part 

4062 (OMB control number 1212–0017; 

expires February 29, 2008). This notice 

informs the public of the PBGC’s request 

and solicits public comment on the 

collection of information. 

DATES: Comments should be submitted 

by March 3, 2008. 

ADDRESSES: Comments should be sent to 

the Office of Information and Regulatory 

Affairs, Office of Management and 

Budget, Attention: Desk Officer for 

Pension Benefit Guaranty Corporation, 

via electronic mail at 

OIRA_DOCKET@omb.eop.gov or by fax 

to (202) 395–6974. Copies of the 

collection of information may also be 

obtained without charge by writing to 

the Disclosure Division of the Office of 

the General Counsel of PBGC at the 

above address or by visiting the 

Disclosure Division or calling 202–326–

4040 during normal business hours. 

(TTY and TDD users may call the 

Federal relay service toll-free at 1–800–

877–8339 and ask to be connected to 

202–326–4040.) PBGC’s regulation on 

Liability for Termination of Singleemployer Plans may be accessed on 

PBGC’s Web site at http://pbgc.gov/ 

practitioners/law-regulations-informalguidance/content/page14767.html. 

FOR FURTHER INFORMATION CONTACT: 

Thomas H. Gabriel, Attorney, 

Legislative and Regulatory Department, 

Pension Benefit Guaranty Corporation, 

1200 K Street, NW., Washington, DC 

20005–4026, 202–326–4024. (For TTY/ 

TDD users, call the Federal relay service 

toll-free at 1–800–877–8339 and ask to 

be connected to 202–326–4024.) 

SUPPLEMENTARY INFORMATION: Section 

4062 of the Employee Retirement 

Income Security Act of 1974 provides 

that the contributing sponsor of a singleemployer pension plan and members of 

the sponsor’s controlled group (‘‘the 

employer’’) incur liability (‘‘employer 

liability’’) if the plan terminates with 

assets insufficient to pay benefit 

liabilities under the plan. The PBGC’s 

statutory lien for employer liability and 

the payment terms for employer liability 

are affected by whether and to what 

extent employer liability exceeds 30 

percent of the employer’s net worth. 

Section 4062.6 of the PBGC’s 

employer liability regulation (29 CFR 

4062.6) requires a contributing sponsor 

or member of the contributing sponsor’s 

controlled group who believes employer 

liability upon plan termination exceeds 

30 percent of the employer’s net worth 

to so notify the PBGC and to submit net 

worth information. This information is 

necessary to enable the PBGC to 

determine whether and to what extent 

employer liability exceeds 30 percent of 

the employer’s net worth. 

The collection of information under 

the regulation has been approved by 

OMB under control number 1212–0017 

(expires February 29, 2008). The PBGC 

is requesting that OMB extend its 

approval for three years. An agency may 

not conduct or sponsor, and a person is 

not required to respond to, a collection 

of information unless it displays a 

currently valid OMB control number. 

The PBGC estimates that an average of 

five contributing sponsors or controlled 

group members per year will respond to 

this collection of information. The 

PBGC further estimates that the average 

annual burden of this collection of 

information will be 12 hours and $3,636 

per respondent, with an average total 

annual burden of 60 hours and $18,120. 

Issued in Washington, DC, this 29th day of 

January, 2008. 

John H. Hanley, 

Director, Legislative and Regulatory 

Department, Pension Benefit Guaranty 

Corporation. 

[FR Doc. E8–1874 Filed 1–31–08; 8:45 am] 

BILLING CODE 7709–01–P 

POSTAL SERVICE 

Change in Rates of General 

Applicability for a Competitive Product 

AGENCY: Postal Service. 

ACTION: Notice of a change in rates of 

general applicability for a competitive 

product. 

SUMMARY: This notice sets forth changes 

in rates of general applicability for a 

competitive product, specifically the 

establishment of prices for a Priority 

Mail large-sized flat-rate box. 

DATES: Effective Date: March 3, 2008. 

FOR FURTHER INFORMATION CONTACT: 

Daniel J. Foucheaux, Jr., 202–268–2989. 

SUPPLEMENTARY INFORMATION: On 

January 17, 2008, pursuant to their 

authority under 39 U.S.C. 3632, the 

Governors of the Postal Service 

established prices for a new large-size 

Priority Mail flat-rate box. The 

Governors’ Decision and the record of 

proceedings in connection with such 

decision are reprinted below in 

accordance with section 3632(b)(2). 

Implementing regulations are published 

elsewhere in this issue. 

Neva R. Watson, 

Attorney, Legislative. 

Decision of the Governors of the United 

States Postal Service on the Priority Mail 

Large Flat-Rate Box (Governors’ Decision 

No. 08–1) 

January 17, 2008. 

Statement of Explanation and Justification 

Pursuant to our authority under section 

3632 of title 39, as amended by the Postal 

Accountability and Enhancement Act of 

2006, we establish the following prices for a 

new, larger (approximately 1/2 cubic foot) 

Priority Mail flat-rate box: $12.95 for 

domestic mail destined to most ZIP Codes, 

$10.95 for domestic mailed destined to APO/ 

FPO ZIP Codes, $29.95 for international mail 

destined to Mexico and Canada, and $49.95 

for international mail destined to all other 

countries. We have reviewed the attached 

analysis provided by management and have 

evaluated this change in accordance with 39 

U.S.C. §§ 3632–3633 and 39 C.F.R. § 3015.2, 

which address changes in rates of general 

applicability for competitive services. 

As background, we first approved the 

domestic flat-rate box as an experiment more 

than three years ago.1 Subsequently, we 

concluded that the experiment was a success, 

and we approved a permanent classification 

for the flat-rate box as part of the recent 

omnibus rate case.2 The existing box has a 

volume of 0.34 cubic feet, with a price of 

mstockstill on PROD1PC66 with NOTICES

6220 Federal Register / Vol. 73, No. 22 / Friday, February 1, 2008 / Notices 

3 Governors’ Decision on Reconsideration, Docket 

No. R2006–1, at 1–2 (May 2, 2007). 

$8.95.3 The Postal Service extended the flatrate box to international mail in May 2007, 

at prices of $23.00 for mail destined to 

Canada and Mexico, and $37.00 for mail 

destined to all other countries. 

The Priority Mail flat-rate box has proven 

to provide value to customers in the form of 

convenience and ease of use and has made 

a positive contribution to postal finances. 

This success suggests a place for an 

additional Priority Mail flat-rate box. Such an 

offering would enhance customer choice, 

convenience and ease of use. The larger box 

will have a cubic capacity of approximately 

1/2 cubic foot, or about 50 percent more than 

the current flat-rate box. 

As indicated in the attached analysis, the 

addition of this new option will benefit the 

Priority Mail flat-rate box rate category. 

Moreover, the lower rate for APO/FPOdestined ZIP Codes is justified by the 

analysis, and provides an opportunity for the 

Postal Service to assist American troops 

stationed abroad and their families. 

Establishment of the larger flat-rate box is 

a minor change that does not raise an issue 

of subsidization of competitive products by 

market dominant products. (39 U.S.C. 

§ 3633(a)(1)). The change will have no 

negative effects on the ability of Priority Mail 

or Priority Mail International to cover 

attributable costs (39 U.S.C. § 3633(a)(2)), or 

for competitive products as a whole to 

comply with 39 U.S.C. § 3633(a)(3), which, as 

implemented by 39 C.F.R. § 3015.7(c), 

requires competitive products to contribute a 

minimum of 5.5 percent to the Postal 

Service’s total institutional costs. 

Order 

The prices specified above for the new flatrate Priority Mail box shall be effective 

March 3, 2008. We direct the Secretary to 

have this decision published in the Federal 

Register in accordance with 39 U.S.C. 

§ 3632(b)(2). We also direct management to 

file with the Postal Regulatory Commission 

appropriate notice of this change. 

By The Governors: 

James C. Miller III, 

Chairman. 

Analysis of the Priority Mail Large Flat-Rate 

Box 

DOMESTIC 

The Priority Mail large flat-rate box is 0.52 

cubic feet (exterior), with dimensions of 

121⁄4’’ x 121⁄4’’ x 6’’ exterior and 12’’ x 12’’ 

x 51⁄2’’ interior. 

Pricing 

• $10.95 for Priority Mail shipments to 

APO/FPO addresses. 

• $12.95 for Priority Mail shipments to all 

other addresses. 

ESTIMATED PROFITABILITY

[FY 2007 Basis] 

Non-APO/FPO 

addresses 

APO/FPO 

addresses 

Price ......................................................................................................................................................................... $12.95 $10.95 

Est. Unit Cost ........................................................................................................................................................... $8.03 $8.46 

Est. Unit Contribution ............................................................................................................................................... $4.92 $2.49 

Implicit Cost Coverage ............................................................................................................................................ 161% 129% 

Note: Calculations include the incremental cost of packaging (over and above the approximately 10 cents per piece ‘‘baked in’’ to every Priority Mail rate cell). 

Support for the Domestic Prices 

Given the most recent price change, 

estimated domestic Priority Mail cost 

coverage is currently in the range of 135 to 

140 percent. The $12.95 price reflects a 

premium comparable to that established for 

the original flat-rate box in 2004, which 

proved sufficient to protect against the risk 

of contribution leakage. A preferential $10.95 

price is offered for shipments to APO/FPO 

addresses. These shipments account for only 

seven percent of total current flat-rate box 

volume. The price is sufficient to provide 

adequate contribution because of the unique 

demand characteristics of care-package 

shipments. 

Compliance With Relevant Law 

By sheer weight of volume, the primary use 

of the larger flat-rate box will be for general 

domestic Priority Mail shipments. Based on 

experience with the existing flat-rate box, the 

premium built into the $12.95 price is likely 

to produce an increase in contribution. Some 

contribution leakage is likely to result from 

lower-volume APO/FPO applications, but the 

amount should be minimal. As shown above, 

the Priority Mail large flat-rate box will easily 

cover its costs. Therefore, the domestic 

Priority Mail large flat-rate box is not 

expected to raise an issue of subsidization of 

competitive products by market dominant 

products (39 U.S.C. § 3633(a)(1)); or 

undermine the ability of Priority Mail to 

cover its attributable costs (39 U.S.C. 

§ 3633(a)(2)); or undermine the ability of 

competitive products as a whole to comply 

with 39 U.S.C. § 3633(a)(3), which, as 

implemented by 39 CFR § 3015.7(c), requires 

competitive products to contribute a 

minimum of 5.5 percent to the Postal 

Service’s total institutional costs. 

INTERNATIONAL 

The same flat-rate box will be used for 

Priority Mail International (PMI). 

Pricing 

• $29.95 for Priority Mail International 

shipments to Canada and Mexico. 

• $49.95 for Priority Mail International 

shipments to the rest of the world. 

ESTIMATED PROFITABILITY

[FY 2007 Basis] 

Canada and 

Mexico 

All other 

countries 

Price ......................................................................................................................................................................... $29.95 $49.95 

Est. Unit Cost ........................................................................................................................................................... $21.46 $39.83 

Est. Unit Contribution ............................................................................................................................................... $8.49 $10.12 

Implicit Cost Coverage ............................................................................................................................................ 140% 125% 

Support for the International Prices 

The estimated overall Priority Mail 

International cost coverage is 128 percent. 

The Canada and Mexico price of $29.95 and 

the Rest-of-the-World price of $49.95 yield a 

weighted-average implicit cost coverage the 

same as PMI as a whole, 128 percent. The 

risk of contribution leakage is contained by 

the imposition of a 20-pound weight limit. 

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Federal Register / Vol. 73, No. 22 / Friday, February 1, 2008 / Notices 6221 

Compliance With Relevant Law 

The Priority Mail large flat-rate box will 

represent a small percentage of total Priority 

Mail International (PMI) volume. It, 

therefore, can have only a limited effect on 

total contribution, but it is designed to 

increase contribution by having a price set 

approximately at the average for similarweight PMI pieces. It may also increase 

contribution by increasing total PMI usage. 

Any potential for contribution loss is 

partially offset by the imposition of a 20- 

pound limit. As shown above, the large flatrate box will easily cover its costs. Therefore, 

the Priority Mail International large flat-rate 

box will not raise an issue of subsidization 

of competitive products by market dominant 

products (39 U.S.C. § 3633(a)(1)); or 

undermine the ability of Priority Mail 

International to cover its attributable costs 

(39 U.S.C. § 3633(a)(2)); or undermine the 

ability of competitive products as a whole to 

comply with 39 U.S.C. § 3633(a)(3), which, as 

implemented by 39 CFR § 3015.7(c), requires 

competitive products to contribute a 

minimum of 5.5 percent to the Postal 

Service’s total institutional costs. 

Certification of Governors’ Vote in the 

Governors’ Decision No. 08–1 

I hereby certify that the following 

Governors voted by paper ballot on adopting 

Governors’ Decision No. 08–1: 

Mickey D. Barnett 

James H. Bilbray 

Carolyn Lewis Gallagher 

Louis J. Giuliano 

Alan C. Kessler 

Thurgood Marshall, Jr. 

James C. Miller III 

Katherine C. Tobin 

Ellen C. Williams 

The vote was 9–0 in favor. 

Wendy A. Hocking, 

Secretary of the Board of Governors. 

[FR Doc. E8–1778 Filed 1–31–08; 8:45 am] 

BILLING CODE 7710–12–P 

POSTAL SERVICE 

Change in Rates of General 

Applicability for a Competitive Product 

AGENCY: Postal Service. 

ACTION: Notice of a change in rates of 

general applicability for a competitive 

product. 

SUMMARY: This notice sets forth changes 

in rates of general applicability for a 

competitive product, specifically the 

establishment of a premium for 

guaranteed delivery of Express Mail 

pieces on a Sunday or holiday. 

EFFECTIVE DATE: March 3, 2008. 

FOR FURTHER INFORMATION CONTACT: 

Daniel J. Foucheaux, Jr., 202–268–2989. 

SUPPLEMENTARY INFORMATION: On 

January 17, 2008, pursuant to their 

authority under 39 U.S.C. 3632, the 

Governors of the Postal Service 

established a premium for guaranteed 

Sunday or holiday delivery of Express 

Mail pieces. The Governors’ Decision 

and the record of proceedings in 

connection with such decision are 

reprinted below in accordance with 

§ 3632(b)(2). Implementing regulations 

are published elsewhere in this issue. 

Neva R. Watson, 

Attorney, Legislative. 

Decision of the Governors of the United 

States Postal Service on a Premium For 

Express Mail Pieces Guaranteed for Delivery 

on a Sunday or Holiday (Governors’

Decision No. 08–2) 

January 17, 2008 

Statement of Explanation and Justification 

Pursuant to our authority under section 

3632 of title 39, as amended by the Postal 

Accountability and Enhancement Act of 

2006, we establish a premium of $12.50 

above the current price for delivery of nonmanifest Express Mail pieces that are 

guaranteed for delivery on a Sunday or 

holiday. We have reviewed the attached 

analysis provided by management and have 

evaluated this change in accordance with 39 

U.S.C. 3632–3633 and 39 CFR 3015.2, which 

address changes in rates of general 

applicability for competitive services. 

As indicated in the attached analysis, 

Express Mail pieces guaranteed for delivery 

on a Sunday or holiday pay the same price 

as pieces guaranteed for Monday through 

Saturday delivery, even though the Postal 

Service incurs additional costs of $5.50 for 

such pieces. The Postal Service is the only 

carrier in the highly competitive express 

delivery market that offers delivery on 

Sundays, as well as many holidays. The 

Postal Service’s competitors charge at least 

$12.50 for items that are guaranteed for 

delivery on Saturday, a day on which they 

do not ordinarily provide delivery. The 

analysis of demand and contribution in the 

attachment indicates that it is likely a $12.50 

premium on non-manifest Express Mail 

pieces presented for Sunday or holiday 

delivery will result in a net gain in 

contribution for both Express Mail service 

and for competitive products as a whole. 

Based on this analysis, we find that this 

proposal complies with 39 U.S.C. 3633(a): 

The fee does not raise an issue of 

subsidization of competitive products by 

market dominant products (39 U.S.C. 

3633(a)(1)); approving it would have no 

negative effects on the ability of Express Mail 

to cover its attributable costs (39 U.S.C. 

3633(a)(2)); and it would not negatively effect 

the ability of competitive products as a whole 

to comply with 39 U.S.C. 3633(a)(3), which, 

as implemented by 39 CFR 3015.7 (c), 

requires competitive products to contribute a 

minimum of 5.5 percent to the Postal 

Service’s total institutional costs. Indeed, the 

analysis indicates that this change should 

result in increased contribution for the 

Express Mail product, and for competitive 

products as a whole. 

Order 

Effective March 3, 2008, a premium of 

$12.50 shall be added to the price of each 

non-manifest Express Mail piece that is 

guaranteed for delivery on a Sunday or 

holiday. We direct the Secretary to have this 

decision published in the Federal Register in 

accordance with 39 U.S.C. 3632(b)(2). We 

also direct management to file with the Postal 

Regulatory Commission appropriate notice of 

this change. 

By the Governors: 

Analysis of the Express Mail Sunday/ 

Holiday Premium 

The U.S. Postal Service currently accepts 

approximately 433,000 Express Mail pieces 

per year for Sunday or holiday delivery. A 

Sunday delivery costs the Postal Service 

$5.50 more than a Monday–Saturday 

delivery. A premium for Express Mail pieces 

committed for delivery on Sunday or a 

holiday is sustainable in the marketplace, 

and would allow the Postal Service to 

capture additional value provided by a 

unique, premium service. A $12.50 premium 

will be accepted by customers, generate 

additional contribution for the Postal Service, 

and provide protection from risk. 

Price and Service Advantages in the 

Marketplace 

The Postal Service is the only carrier to 

offer Sunday delivery, as well as delivery on 

many holidays. Other carriers impose a 

surcharge for Saturday delivery. UPS and 

FedEx currently charge an additional $12.50 

for Saturday delivery; DHL charges $15.00. 

The Express Mail Sunday/Holiday premium 

would be equal to or less than what 

competitors charge for Saturday delivery. 

The $12.50 charge also represents less of a 

premium over Monday–Saturday average 

prices than the surcharge other carriers 

charge for Saturday delivery. A charge of 

$12.50 represents a 72 percent premium over 

the current average Express Mail price, while 

the same amount adds 81 percent to the 

average price of an overnight FedEx or UPS 

parcel. 

Rationale for the Premium Amount 

$12.50 is a price point at which we can 

capture substantial contribution without 

diverting customers away from postal 

services. Because the premium represents the 

value of delivering on a non-business day 

and is equal to or lower than what 

competitors charge for a similar service, 

customers will likely accept a charge at this 

level. 

There may be different demand for Sunday 

delivery than for other days of the week. 

Although overall Express Mail volume has 

decreased approximately 12 percent since the 

May 2007 rate change, volume for Sunday 

has actually risen more than 10 percent. 

Given the small volume delivered on 

Sunday, firm conclusions about elasticity 

cannot be drawn, yet the increase does 

suggest that Sunday Express Mail pieces are 

less price sensitive than the rest of Express 

Mail. 


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