[Federal Register Volume 74, Number 132 (Monday, July 13, 2009)]
[Notices]
[Pages 33483-33484]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-16637]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2009-34 and CP2009-45; Order No. 242]


New Competitive Postal Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently-filed Postal Service 
request to add Express Mail Contract 4 to the Competitive Product List. 
The Postal Service has also filed a related contract. This notice 
addresses procedural steps associated with these filings.

DATES: Comments are due July 15, 2009.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at http://www.prc.gov.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
202-789-6820 and <a href="/cdn-cgi/l/email-protection#f2818697829a979cdc819a9380949f939cb2828091dc959d84"><span class="__cf_email__" data-cfemail="56252233263e333878253e3724303b37381626243578313920">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:

I. Introduction

    On July 6, 2009, the Postal Service filed a formal request pursuant 
to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add Express Mail 
Contract 4 to the Competitive Product List.\1\ The Postal Service 
asserts that the Express Mail Contract 4 product is a competitive 
product ``not of general applicability'' within the meaning of 39 
U.S.C. 3632(b)(3). Id. at 1. The Request has been assigned Docket No. 
MC2009-34.
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    \1\ Request of the United States Postal Service to Add Express 
Mail Contract 4 to Competitive Product List and Notice of 
Establishment of Rates and Class Not of General Applicability, July 
6, 2009 (Request).
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    The Postal Service contemporaneously filed a contract related to 
the proposed new product pursuant to 39 U.S.C. 3632(b)(3) and 39 CFR 
3015.5. Id. at 2. The contract is assigned Docket No. CP2009-45.
    Request. The Request incorporates (1) A redacted version of the 
Governors' Decision authorizing the new product; (2) a redacted version 
of the contract; (3) requested changes in the Mail Classification 
Schedule product list; (4)

[[Page 33484]]

a Statement of Supporting Justification as required by 39 CFR 3020.32; 
and (5) certification of compliance with 39 U.S.C. 3633(a).\2\ 
Substantively, the Request asks the Commission to add the Express Mail 
Contract 4 product to the Competitive Product List. Id. at 1-2.
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    \2\ Attachment A to the Request consists of the redacted 
Decision of the Governors of the United States Postal Service on 
Establishment of Rate and Class Not of General Applicability for 
Express Mail Service (Governors' Decision No. 09-8). The Governors' 
Decision includes an attachment which provides an analysis of the 
proposed Express Mail Contract 4 and certification of the Governors' 
vote. Attachment B is the redacted version of the contract. 
Attachment C shows the requested changes to the Mail Classification 
Schedule product list. Attachment D provides a statement of 
supporting justification for this Request. Attachment E provides the 
certification of compliance with 39 U.S.C. 3633(a).
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    In the Statement of Supporting Justification, Mary Prince Anderson, 
Manager, Sales and Communications, Expedited Shipping, asserts that the 
service to be provided under the contract will cover its attributable 
costs, make a positive contribution to institutional costs, and 
increase contribution toward the requisite 5.5 percent of the Postal 
Service's total institutional costs. Id., Attachment D. Thus, Ms. 
Anderson contends there will be no issue of subsidization of 
competitive products by market dominant products as a result of this 
contract. Id.
    Related contract. A redacted version of the specific Express Mail 
Contract 4 is included with the Request. The contract is for 3 years 
and is to be effective the day following the date on which the 
Commission provides all necessary regulatory approvals. The Postal 
Service represents that the contract is consistent with 39 U.S.C. 
3633(a) and 39 CFR 3015.7(c). See id., Attachment to Governors' 
Decision and Attachment E. It notes that performance under this 
contract could vary from estimates, but concludes that the risks are 
manageable, and overall the contract is expected to generate 
significant contribution. Id., Attachment to Governors' Decision.
    The Postal Service filed much of the supporting materials, 
including the Governors' Decision and the specific Express Mail 
Contract 4, under seal. In its Request, the Postal Service maintains 
that the contract and related financial information, including the 
customer's name and the accompanying analyses that provide prices, 
terms, conditions, and financial projections should remain under seal. 
Id. at 2-3.

II. Notice of Filings

    The Commission establishes Docket Nos. MC2009-34 and CP2009-45 for 
consideration of the Request pertaining to the proposed Express Mail 
Contract 4 product and the related contract, respectively. In keeping 
with practice, these dockets are addressed on a consolidated basis for 
purposes of this order; however, future filings should be made in the 
specific docket in which issues being addressed pertain.
    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. 3632, 3633, or 3642 and 39 CFR part 3015 and 39 
CFR part 3020 subpart B. Comments are due no later than July 15, 2009. 
The public portions of these filings can be accessed via the 
Commission's Web site (http://www.prc.gov).
    The Commission appoints Cassandra Hicks to serve as Public 
Representative in these dockets.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2009-34 and CP2009-45 
for consideration of the matters raised in each respective docket.
    2. Pursuant to 39 U.S.C. 505, Cassandra Hicks is appointed to serve 
as officer of the Commission (Public Representative) to represent the 
interests of the general public in these proceedings.
    3. Comments by interested persons in these proceedings are due no 
later than July 15, 2009.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    Dated: July 7, 2009.

    By the Commission.
Judith M. Grady,
Acting Secretary.
[FR Doc. E9-16637 Filed 7-10-09; 8:45 am]
BILLING CODE 7710-FW-P


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