classification changes proposed by the Postal Service, the Commission will address the proposed Special Services price adjustments and classification changes in a separate order. Barring any unforeseen issues, the Commission expects to issue the separate order well in advance of the expected January 22, 2017 implementation date. In section II of this Order, the Commission discusses the revisions to the consumer price index for all urban consumers (CPI-U) that were announced after the Postal Service filed its Notice and describes how it addresses those revisions. Also in section II of this Order, the Commission discusses the Postal Service’s proposed revisions to the Flats Sequencing System (FSS) price structure that apply to the Standard Mail, Periodicals, and Package Services classes. In sections III, IV, V, and VI of this Order, the Commission discusses the proposed price adjustments, workshare discounts, and classification changes for the First-Class Mail, Standard Mail, Periodicals, and Package Services classes, respectively. The Commission concludes that the proposed price adjustments for First-Class Mail, Standard Mail, Periodicals, and Package Services do not violate the price cap in 39 U.S.C. § 3622(d) and are consistent with, or justified by an exception to, the workshare discount limitations in 39 U.S.C. § 3622(e). The Commission also concludes that the proposed classification changes for these classes are consistent with applicable law and regulations. Background. On October 12, 2016, the Postal Service filed its Notice with the Commission pursuant to 39 U.S.C. § 3622 and 39 C.F.R. part 3010. In its Notice, the Postal Service announced its intention to adjust the prices for market dominant products on January 22, 2017, at 12:01 a.m. by amounts that are within the available price adjustment authority for each class of mail. Notice at 1, 6. The Notice includes attachments, which present detailed price and mail classification changes, workshare discount calculations, and price index change calculations, respectively. Id. Attachments A-C. For First-Class Mail, Standard Mail,
1110 Presorted Letters/Postcards ***** 1110.3 Price Categories The following price categories are available for the product specified in this section: Automation Letters ***** 3-Digit ***** Automation Postcards ***** 3-Digit ***** 1110.5 Prices Automation Letters Maximum Weight (ounces) 5-Digit ($) 3-Digit ($) AADC ($) Mixed AADC ($) 1 0.373 0.399 0.403 0.423 2 0.373 0.399 0.403 0.423 3 0.373 0.649 0.403 0.423 3.5 0.373 0.774 0.403 0.423 Nonautomation Presorted Machinable Letters Maximum Weight (ounces) Presorted ($) 1 0.453 2 0.453 3 0.453 3.35 0.453
1115 Flats ***** 1115.5 Prices Automation Flats Maximum Weight (ounces) 5-Digit ($) 3-Digit ($) ADC ($) Mixed ADC ($) 1 0.446 0.630 0.670 0.750 2 0.656 0.840 0.880 0.960 3 0.866 1.050 1.090 1.170 4 1.076 1.260 1.300 1.380 5 1.286 1.470 1.510 1.590 6 1.496 1.680 1.720 1.800 7 1.706 1.890 1.930 2.010 8 1.916 2.100 2.140 2.220 9 2.126 2.310 2.350 2.430 10 2.336 2.520 2.560 2.640 11 2.546 2.730 2.770 2.850 12 2.756 2.940 2.980 3.060 13 2.966 3.150 3.190 3.270 Presorted Flats ***** Single-Piece Flats1 Maximum Weight (ounces) Single-Piece ($) 1 0.98 2 1.19 3 1.40 4 1.61
1220 Letters ***** 1220.4 Price Categories The following price categories are available for the product specified in this section: Automation ***** DSCF, DNDC, and Origin entry levels Commercial and Nonprofit eligible ***** 1220.6 Prices Automation Letters (3.5 ounces or less) Commercial Nonprofit Entry Point 5-Digit ($) 3-Digit ($) AADC ($) Mixed AADC ($) 5-Digit ($) ($) AADC ($) Mixed AADC ($) Origin 0.251 0.274 0.271 0.288 0.134 0.159 0.154 0.171 DNDC 0.225 0.239 0.245 0.262 0.108 0.124 0.128 0.145 DSCF 0.217 0.230 0.237 n/a 0.100 0.115 0.120 n/a Machinable Letters (3.35 ounces or less) Commercial Nonprofit Entry Point AADC ($) Mixed AADC ($) AADC ($) AADC ($) Origin 0.284 0.301 0.167 0.184 DNDC 0.258 0.275 0.141 0.158 DSCF 0.250 n/a 0.133 n/a Nonmachinable Letters (3.34.0 ounces or less) Commercial Nonprofit
1230 Parcels ***** 1230.6 Prices Marketing Parcels (3.3 ounces or less) Commercial Nonprofit Entry Point 5-Digit ($) SCF ($) NDC ($) Mixed NDC ($) 5-Digit ($) SCF ($) NDC ($) Mixed NDC ($) Origin n/a n/a 1.198 1.532 n/a n/a 1.115 1.449 DNDC 0.741 0.834 1.148 n/a 0.658 0.751 1.065 n/a DSCF 0.691 0.784 n/a n/a 0.608 0.701 n/a n/a DDU 0.646 n/a n/a n/a 0.563 n/a n/a n/a Marketing Parcels (greater than 3.3 ounces) ***** a. Per Piece Commercial Nonprofit 5-Digit ($) SCF ($) NDC ($) Mixed NDC ($) 5-Digit ($) SCF ($) NDC ($) Mixed NDC ($) Per Piece 0.554 0.647 0.961 1.295 0.489 0.582 0.896 1.230 b. Per Pound Commercial Nonprofit Entry Point 5-Digit ($) SCF ($) NDC ($) Mixed NDC ($) ($) SCF ($) NDC ($) Mixed NDC ($) Origin n/a n/a 1.150 1.150 n/a n/a 1.063 1.063
***** a. Per Point 5-Digit ($) SCF ($) NDC ($) Mixed NDC ($) Per Piece 0.620 0.769 1.150 1.413 b. Per Pound Point ($) SCF ($) NDC ($) Mixed NDC ($) Origin n/a n/a 1.059 1.059 DNDC 0.814 0.814 0.814 n/a DSCF 0.551 0.551 n/a n/a DDU 0.354 n/a n/a n/a ***** Non-barcoded Parcels Surcharge For non-barcoded parcels, add $0.06142 per piece. The surcharge does not apply to pieces sorted to 5-Digit ZIP Codes.
A editorial adjustment is provided by subtracting $0.001089 for each 1 percent of editorial (nonadvertising) content from the applicable piece price. f. Firm Bundle Price Firm bundles are charged a single-piece price of $0.195202. Bundle Prices (per bundle) Bundle Level Container Level Carrier Route ($) 5-Digit ($) FSS Scheme ($) FSS Facility ($) 3-Digit/SCF ($) ADC ($) Mixed ADC ($) Firm 0.103 0.103 0.214 0.268 0.362 Carrier Route 0.152 0.152 0.551 0.694 0.928 5-Digit 0.323 0.376 0.493 0.749 FSS Scheme 0.000 0.314 0.314 0.463 0.705 3-Digit/SFC 0.326 0.456 0.703 ADC 0.327 0.580 Mixed ADC 0.212 Container Prices (per pallet, tray, or sack) a. Pallet Container Entry Point Carrier ($) 5-Digit ($) FSS Scheme ($) FSS Facility ($) 3-Digit/SCF ($) ADC ($) Mixed ADC ($) DDU 3.046 DSCF 19.023 39.806 13.327 23.822 23.822 DFSS 6.664 23.822 DADC 36.324 57.107 30.628 41.123 41.123 24.545 DNDC 40.572 61.355 34.876 45.372 45.372 42.789
Presorted ***** a. Flats Sequencing System (FSS) Destination Entry1 DSCF ($) DFSS ($) DNDC 1 & 2 ($) DNDC Zone 3 ($) DNDC Zone 4 ($) DNDC Zone 5 ($) Per Piece 0.656 0.648 1.123 1.123 1.123 1.123 Per Pound 0.035 0.035 0.062 0.069 0.124 0.186 Other Than Destination Entry Zones Local 1 & 2 ($) Zone 3 ($) Zone 4 ($) Zone 5 ($) Zone 6 ($) Zone 7 ($) Zones 8 & 9 ($) Per Piece 1.239 1.239 1.239 1.239 1.239 1.239 1.239 Per Pound 0.135 0.143 0.194 0.247 0.316 0.357 0.480 b. Non-FSS Destination Entry21 DDU ($) DSCF ($) DNDC Zones 1 & 2 ($) DNDC Zone 3 ($) DNDC Zone 4 ($) DNDC Zone 5 ($) Per Piece 0.504 0.664 1.141 1.141 1.141 1.141 Per Pound 0.020 0.036 0.064 0.084 0.136 0.220 Other Than Destination Entry
APPENDIX A LIST OF CHAIRMAN’S AND COMMISSION INFORMATION REQUESTS, RESPONSES OF THE UNITED STATES POSTAL SERVICE, AND RELATED FILINGS Chairman’s Information Requests Chairman’s Information Request No. 1, October 13, 2016 (CHIR No. 1) Chairman’s Information Request No. 2, October 18, 2016 (CHIR No. 2) Chairman’s Information Request No. 3, October 19, 2016 (CHIR No. 3) Chairman’s Information Request No. 4, October 21, 2016 (CHIR No. 4) Chairman’s Information Request No. 5, October 27, 2016 (CHIR No. 5) Chairman’s Information Request No. 6, October 27, 2016 (CHIR No. 6) Chairman’s Information Request No. 7, October 31, 2016 (CHIR No. 7) Chairman’s Information Request No. 8, November 1, 2016 (CHIR No. 8) Chairman’s Information Request No. 9, November 3, 2016 (CHIR No. 9) Responses to Chairman’s Information Requests Response of United States Postal Service to Chairman’s Information Request No. 1, Question 1, October 14, 2016 (October 14 Response to CHIR No. 1) Response of United States Postal Service to Chairman’s Information Request No. 1, Question 2, October 17, 2016 (October 17 Response to CHIR No. 1) Response of United States Postal Service to Questions 3(B)-(C) and 5 of Chairman’s Information Request No. 2, October 19, 2016 (October 19 Response to CHIR No. 2) Response of United States Postal Service to Questions 1, 2(a), 3(a), 4, 6, and 7 of Chairman’s Information Request No. 2, October 21, 2016 (October 21 Response to CHIR No. 2)
APPENDIX B LIST OF COMMENTERS AND COMMENTS Commenter Citation Citation Short Form American Catalog Mailers Association (ACMA) Comments of the American Catalog Mailers Association (ACMA), November 1, 2016 ACMA Comments American Consumer Institute Center for Citizen Research (ACI) Comments of the American Consumer Institute Center for Citizen Research, October 28, 2016 ACI Comments Alex Belleque Letter from Alex Belleque in Opposition to October 27, 2016 Belleque Comments Greeting Card Association (GCA) Comments of the Greeting Card Association, November 1, 2016 GCA Comments National Association of Presort Mailers, National Postal Policy Council, Major Mailers Association, and Association for Mail Electronic Enhancement (collectively, “Joint Commenters”) Comments of the National Association of Presort Mailers, National Postal Policy Council, Major Mailers Association, and Association for Mail Electronic Enhancement, November 1, 2016 Joint Comments Pitney Bowes Inc. (Pitney Bowes) Comments of Pitney Inc., November 1, 2016 Pitney Comments Association for Postal Commerce (PostCom) Comments of the Association for Postal Commerce, November 1, 2016 PostCom Comments Public Representative Public Representative Comments, November 1, 2016 PR Comments Small Business & Entrepreneurship Council (SBE Council) Comments of Small Business & Entrepreneurship Council, November 1, 2016 SBE Council Comments Stamps.com Comments of Stamps.com, November 1, 2016 Stamps.com Comments Taxpayers Protection Alliance (TPA) Comments of Taxpayers Protection Alliance (TPA), November 1, 2016 TPA Comments