[Federal Register Volume 80, Number 3 (Tuesday, January 6, 2015)]
[Notices]
[Pages 539-540]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-30968]



[[Page 539]]

=======================================================================
-----------------------------------------------------------------------

POSTAL REGULATORY COMMISSION

[Docket Nos. MC2015-23 and CP2015-29; Order No. 2314]


New Postal Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Commission is noticing a recent Postal Service filing 
concerning the addition of Global Expedited Package Services-Non-
Published Rates Contract 5 to the competitive product list. This notice 
informs the public of the filing, invites public comment, and takes 
other administrative steps.

DATES: Comments are due: January 7, 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. Notice of Commission Action
    III. Ordering Paragraphs

I. Introduction

    In accordance with 39 U.S.C. 3642 and 39 CFR 3020.30 et seq., and 
Order Nos. 630,\1\ 1625,\2\ and 1959,\3\ the Postal Service filed a 
formal request and associated supporting information to add Global 
Expedited Package Services-Non-Published Rates Contract 5 (GEPS-NPR 5) 
to the competitive product list.\4\ The Postal Service states the 
addition of GEPS-NPR 5 to the competitive products list is necessary 
due to its creation of both a Management Analysis of the Prices and 
Methodology for Determining Prices for Negotiated Service Agreements 
under Global Expedited Package Services-Non-Published Rates 5 (GEPS-NPR 
5 Management Analysis), and an accompanying financial model that 
revises the previously filed GEPS-NPR 4 Version 2 Management Analysis 
and its financial model. Request at 3.
---------------------------------------------------------------------------

    \1\ Docket No. CP2011-45, Order Adding Global Expedited Package 
Services-Non-Published Rates 2 to the Competitive Product List, 
December 30, 2010 (Order No. 630).
    \2\ Docket Nos. MC2013-27 and CP2013-35, Order Adding Global 
Expedited Package Services-Non-Published Rates 4 (GEPS-NPR 4) to the 
Competitive Product List, January 16, 2013 (Order No. 1625).
    \3\ Docket Nos. MC2013-27 and CP2014-22, Order Approving Change 
in Prices for Global Package Services-Non-Published Rates 4 (GEPS-
NPR 4), January 10, 2014 (Order No. 1959).
    \4\ Request of the United States Postal Service to Add Global 
Expedited Package Services--Non-Published Rates 5 (GEPS--NPR 5) to 
the Competitive Product List and Notice of Filing GEPS--NPR 5 Model 
Contract and Application for Non-Public Treatment of Materials Filed 
Under Seal, December 24, 2014 (Request).
---------------------------------------------------------------------------

    To support its Request, the Postal Service filed the following 
attachments:
    <bullet> Attachment 1, an application for non-public treatment of 
materials filed under seal;
    <bullet> Attachment 2A, a redacted version of Governors' Decision 
No. 11-6;
    <bullet> Attachment 2B, a revised version of the Mail 
Classification Schedule section 2510.8 GEPS-NPR;
    <bullet> Attachment 2C, a redacted version of GEPS-NPR 5 Management 
Analysis;
    <bullet> Attachment 2D, a list of Maximum and Minimum Prices for 
Priority Mail Express International (PMEI), and Priority Mail 
International (PMI), and Global Express Guaranteed (GXG);
    <bullet> Attachment 2E, a certified statement concerning the prices 
for applicable negotiated service agreements under GEPS-NPR 5, as 
required by 39 CFR 3015.5(c)(2);
    <bullet> Attachment 3, a Statement of Supporting Justification, 
similar to the Statement of Supporting Justifications used to support 
the classification of GEPS-NPR 3 and GEPS-NPR 4, and which is filed 
pursuant to 39 CFR 3020.32; and
    <bullet> Attachment 4, a redacted version of the GEPS-NPR 5 model 
contract.
    In a Statement of Supporting Justification, Giselle Valera, 
Managing Director and Vice President, Global Business, asserts the 
product is designed to increase efficiency of the Postal Service's 
process, as well as enhance its ability to compete in the marketplace. 
Request, Attachment 3 at 1. She contends GEPS-NPR 5 belongs on the 
competitive product list as it is part of a market over which the 
Postal Service does not exercise market dominance,\5\ is not subsidized 
by market dominant products, covers costs attributable to it, and does 
not cause competitive products as a whole to fail to make the 
appropriate contribution to institutional costs. Id. at 1, 3.
---------------------------------------------------------------------------

    \5\ The Postal Service claims it does not exercise sufficient 
market power to set the price of PMEI, PMI, and GXG substantially 
above costs, raise prices significantly, decrease quality, or 
decrease output, without risk of losing a significant level of 
business to other firms offering similar products. Id. at 4; 39 
U.S.C. 3642(b).
---------------------------------------------------------------------------

    The Postal Service included a redacted version of the GEPS-NPR 5 
model contract with the Request. Id. Attachment 4. The Postal Service 
represents the GEPS-NPR 5 model contract is a slight modification of 
the GEPS-NPR 4 Version 2 model contract approved by the Commission in 
Order No. 1959.\6\
---------------------------------------------------------------------------

    \6\ See Order No. 1959.
---------------------------------------------------------------------------

    The Postal Service represents it will notify each GEPS-NPR 5 
customer of the contract's effective date no later than 30 days after 
receiving the signed agreement from the customer. Id. Attachment 4 at 
4. Each contract will expire the later of one year from the effective 
date or the last day of the month which falls one calendar year from 
the effective date, unless terminated sooner. Id. The Postal Service 
represents that the contract is consistent with 39 U.S.C. 3633(a). 
Request at 11; id. Attachment 4.
    The Postal Service filed much of the supporting materials, 
including the related model contract, under seal. Request, Attachment 
1. It maintains that the redacted portions of the materials should 
remain confidential as sensitive business information. Id. at 4. This 
information includes sensitive commercial information concerning the 
incentive discounts and their formulation, applicable cost-coverage, 
non-published rates, as well as some customer-identifying information. 
Id. The Postal Service asks the Commission to protect customer-
identifying information from public disclosure for ten years after the 
date of filing with the Commission, unless an order is entered to 
extend the duration of that status. Id. at 9.

II. Notice of Commission Action

    The Commission establishes Docket Nos. MC2015-23 and CP2015-29 to 
consider the Request pertaining to the proposed Global Expedited 
Package Services--Non-Published Rates 5 product and the related model 
contract, respectively.
    The Commission invites comments on whether the Postal Service's 
filings in the captioned dockets are consistent with the policies of 39 
U.S.C. 3632, 3633, or 3642, 39 CFR part 3015, and 39 CFR part 3020, 
subpart B. Comments are due no later than January 7, 2015. The public 
portions of these filings can be accessed via the Commission's Web site 
(http://www.prc.gov).
    The Commission appoints James F. Callow to serve as Public 
Representative in these dockets.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2015-23 and CP2015-29 
to

[[Page 540]]

consider the matters raised in each docket.
    2. Pursuant to 39 U.S.C. 505, James F. Callow is appointed to serve 
as an officer of the Commission to represent the interests of the 
general public in these proceedings (Public Representative).
    3. Comments are due no later than January 7, 2015.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2014-30968 Filed 1-5-15; 8:45 am]
BILLING CODE 7710-FW-P