Negotiated Service Agreement, 42602-42604 [05-14594]

Download as PDF 42602 Federal Register / Vol. 70, No. 141 / Monday, July 25, 2005 / Notices Technical Contacts: Daniel Frumkin, NRR, (301) 415– 2280, e-mail: dxf1@nrc.gov. Angie Lavretta, NRR, (301) 415–3285, e-mail: axl3@nrc.gov. Lead Project Manager: Chandu Patel, NRR, (301) 415–3025, e-mail: cpp@nrc.gov. Note: NRC generic communications may be found on the NRC public Web site, https:// www.nrc.gov, under Electronic Reading Room/Document Collections. DATES: End of Draft Generic Letter Documents may be examined, and/or copied for a fee, at the NRC’s Public Document Room at One White Flint North, 11555 Rockville Pike (first floor), Rockville, Maryland. Publicly available records will be accessible electronically from the Agencywide Documents Access and Management System (ADAMS) Public Electronic Reading Room on the Internet at the NRC Web site, https://www.nrc.gov/NRC/ADAMS/ index.html. If you do not have access to ADAMS or if you have problems in accessing the documents in ADAMS, contact the NRC Public Document Room (PDR) reference staff at 1–800–397–4209 or (301) 415–4737 or by e-mail to pdr@nrc.gov. Dated at Rockville, Maryland, this 18th day of July, 2005. For the Nuclear Regulatory Commission. Patrick L. Hiland, Chief, Reactor Operations Branch, Division of Inspection Program Management, Office of Nuclear Reactor Regulation. [FR Doc. E5–3941 Filed 7–22–05; 8:45 am] BILLING CODE 7590–01–P OFFICE OF PERSONNEL MANAGEMENT Federal Employees Health Benefits Program: Medically Underserved Areas for 2006 Office of Personnel Management. ACTION: Notice of Medically Underserved Areas for 2006. AGENCY: 14:21 Jul 22, 2005 Jkt 205001 Effective Date: January 1, 2006. FOR FUTHER INFORMATION CONTACT: Ingrid Burford, (202) 606–0004. FEHB law (5 U.S.C. 8902(m)(2)) mandates special consideration for enrollees of certain FEHB plans who receive covered health services in States with critical shortages of primary care physicians. The FEHB law also requires that a State be designated as a Medically Underserved Area if 25 percent or more of the population lives in an area designated by the Department of Health and Human Services (HHS) as a primary medical care manpower shortage area. Such States are designated as Medically Underserved Areas for purposes of the FEHB Program, and the law requires non-HMO FEHB plans to reimburse beneficiaries, subject to their contract terms, for covered services obtained from any licensed provider in these States. FEHB regulations (5 CFR 890.701) require OPM to make an annual determination of the States that qualify as Medically Underserved Areas for the next calendar year by comparing the latest HHS State-by-State population counts on primary medical care manpower shortage areas with U.S. Census figures on State resident populations. SUPPLEMENTARY INFORMATION: Office of Personnel Management. Linda M. Springer, Director. [FR Doc. 05–14551 Filed 7–22–05; 8:45 am] BILLING CODE 6325–39–P The Office of Personnel Management (OPM) has completed its annual determination of the States that qualify as Medically Underserved Areas under the Federal Employees Health Benefits (FEHB) Program for calendar year 2006. This is necessary to comply with a provision of the FEHB law that mandates special consideration for enrollees of certain FEHB plans who receive covered health services in States with critical shortages of primary care physicians. Accordingly, for calendar SUMMARY: VerDate jul<14>2003 year 2006, OPM’s calculations show that the following states are Medically Underserved Areas under the FEHB Program: Alabama, Alaska, Arizona, Idaho, Kentucky, Louisiana, Mississippi, Missouri, Montana, New Mexico, North Dakota, South Carolina, South Dakota, West Virginia, and Wyoming. For the 2006 contract year Arizona and West Virginia are being added to the list and Texas is being removed. POSTAL RATE COMMISSION [Docket No. MC2005–3; Order No. 1441] Negotiated Service Agreement Postal Rate Commission. Notice and order on new baseline negotiated service agreement case. AGENCY: ACTION: SUMMARY: This document establishes a docket for consideration of the Postal Service’s request for approval of a baseline negotiated service agreement PO 00000 Frm 00072 Fmt 4703 Sfmt 4703 with Bookspan. It identifies key elements of the proposed agreement, which involves Standard Mail letter rates; its relationship to the Capital One Services, Inc. negotiated service agreement; and addresses preliminary procedural matters. DATES: Key dates are: 1. August 8, 2005: Deadline for filing notices of intervention. 2. August 8–10, 2005: Authorized alternative dates for settlement conference. 3. August 11, 2005: Prehearing conference (10 a.m.). ADDRESSES: Submit comments electronically via the Commission’s Filing Online system at https:// www.prc.gov. FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, general counsel, at 202–789–6818. SUPPLEMENTARY INFORMATION: Procedural History Capital One Services, Inc. Negotiated Service Agreement, 67 FR 61355 (September 30, 2002). Negotiated Service Agreement Final Rule, 69 FR 7574 (February 18, 2004). On July 14, 2005, the United States Postal Service filed a request seeking a recommended decision from the Postal Rate Commission approving a Negotiated Service Agreement (NSA) with Bookspan.1 The NSA is proffered as a new baseline agreement. This is the first new baseline agreement filed since the Capital One Negotiated Service Agreement, MC2002–2, and the first baseline agreement filed under the Commission’s new rules for baseline NSAs. Rule 195 [39 CFR 3001.195]. The Request, which includes six attachments, was filed pursuant to Chapter 36 of the Postal Reorganization Act, 39 U.S.C. 3601 et seq.2 The Postal Service has identified Bookspan, along with itself, as parties to the NSA. This identification serves as notice of intervention by Bookspan. It also indicates that Bookspan shall be considered a co-proponent, 1 Request of the United States Postal Service for a Recommended Decision on Classifications and Rates to Implement a Baseline Negotiated Service Agreement with Bookspan, July 15, 2005 (Request). 2 Attachments A and B to the Request contain proposed changes to the Domestic Mail Classification Schedule and the associated rate schedules; Attachment C is a certification required by Commission rule 193(i) specifying that the cost statements and supporting data submitted by the Postal Service, which purport to reflect the books of the Postal Service, accurately set forth the results shown by such books; Attachment D is an index of testimony and exhibits; Attachment E is a compliance statement addressing satisfaction of various filing requirements; and Attachment F is a copy of the Negotiated Service Agreement. E:\FR\FM\25JYN1.SGM 25JYN1 Federal Register / Vol. 70, No. 141 / Monday, July 25, 2005 / Notices procedurally and substantively, of the Postal Service’s Request during the Commission’s review of the NSA. Rule 191(b) [39 CFR 3001.191(b)]. An appropriate Notice of Appearance and Filing of Testimony as Co-Proponent by Bookspan, July 14, 2005, also was filed. In support of the direct case, the Postal Service has filed Direct Testimony of Michael K. Plunkett on Behalf of the United States Postal Service, July 14, 2005 (USPS–T–1), and Direct Testimony of Michelle K. Yorgey on Behalf of the United States Postal Service, July 14, 2005 (USPS–T–2). Bookspan has separately filed Direct Testimony of Robert J. Posch, Jr. on Behalf of Bookspan, July 14, 2005 (Bookspan-T–1), and Direct Testimony of Matthias Epp on Behalf of Bookspan, July 14, 2005 (Bookspan-T–2). The Postal Service has reviewed the Bookspan testimony and, in accordance with rule 192(b) [39 CFR 3001.192(b)], states that such testimony may be relied upon in presentation of the Postal Service’s direct case.3 The Postal Service has submitted a contemporaneous filing which requests the establishment of settlement procedures.4 The Postal Service believes that this agreement should not be particularly contentious given that the agreement is straightforward and the substance of the agreement concerns the availability of declining blocks, which were an integral part of all previously approved NSAs. However, if the parties do have issues that they want to explore, settlement discussions might provide a convenient forum to resolve those issues or facilitate a limitation of the issues that need to be litigated. The Postal Service’s Request, the accompanying testimonies of witnesses Plunkett (USPS–T–1), Yorgey (USPS–T– 2), Posch (Bookspan-T–1), and Epp (Bookspan-T–2), and other related material are available for inspection at the Commission’s docket section during regular business hours. They also can be accessed electronically, via the Internet, on the Commission’s Web site (https:// www.prc.gov). I. The Bookspan NSA The Postal Service proposes to enter into a new baseline three-year NSA with Bookspan. Unlike the Capital One baseline NSA, the Bookspan NSA is based solely upon a declining block rate volume discount available to qualifying Standard Mail letter pieces. The declining block rate volume discount feature provides Bookspan 3 Request at 6; USPS–T–2 at 1. of the United States Postal Service for Establishment of Settlement Procedures, July 14, 2005. 4 Request VerDate jul<14>2003 14:21 Jul 22, 2005 Jkt 205001 with a per-piece discount for Standard Mail letter volumes that exceed specified volume thresholds. Discounts are payable only after certain specified minimum volume commitments have been reached. During the first year of the agreement, discounts may be earned for annual volumes above 87 million pieces once a volume commitment of 94 million has been reached. During the second year of the agreement, discounts may be earned for annual volumes above 85 million pieces once a volume commitment of 95 million has been reached. During the third year of the agreement, discounts may be earned for annual volumes above 94 million pieces once a volume commitment of 105 million has been reached. Discounts, under a declining block rage structure, range from 2 to 3 cents in the first two years of the agreement, and from 1 to 3 cents in the third year of the agreement. The minimum commitment levels for the second and third years of the agreement are subject to adjustment based on the actual volumes mailed in the previous years. If at the end of the first or second years, the actual volume is 12% or more above the prior year’s commitment, the following year’s commitment will be revised to be the average of the prior year’s actual volume and the following year’s original commitment. If at the end of the first or second years, the actual volume is 5% or more below the prior year’s commitment, the following year’s commitment will be revised to be the average of the prior year’s actual volume and the prior year’s original commitment. In any event, the volume commitments will never be less than 90 million pieces. This agreement provides for several other risk mitigation features to protect the Service’s financial interests. If Bookspan sends more than 150 million qualifying pieces in any one year, the agreement automatically terminates. Either party may also unconditionally cancel the agreement with 30 days’ written notice. Additionally, the agreement contains a mechanism to adjust the volume blocks to the extent that Bookspan merges or acquires an entity with an annual Standard Mail letter volume exceeding 5 million pieces, or merges or acquires multiple entities with a combined annual Standard Mail letter volume exceeding 10 million pieces. The Postal Service estimates it will benefit by $7.4 million over the life of the NSA. This is based on estimates of $3.3 million in increased contribution due to additional volume for new Standard letter mail, $5.1 million in increased contribution due to a net PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 42603 contribution gain from converting Standard Mail solicitation flats to letters, and lost revenue from total incremental discounts of $0.96 million. II. Commission Response Applicability of the Rules for Baseline NSAs. For administrative purposes, the Commission has docketed the instant filing as a request for a new baseline NSA pursuant to rule 195 (39 CFR 3001.195). Settlement. The Commission authorizes settlement negotiations in this proceeding. It appoints Postal Service counsel as settlement coordinator. In this capacity, counsel for the Service shall file periodic reports on the status of settlement discussions. The Postal Service requests that a settlement conference be held immediately following the deadline for intervention. The Commission authorizes the settlement coordinator to hold a settlement conference on either August 8, 9, or 10, 2005, and at such times deemed necessary by the settlement coordinator. Authorization of settlement discussions does not constitute a finding on the proposal’s procedural status or on the need for a hearing. Representation of the general public. In conformance with section 3624(a) of title 39, the Commission designates Shelley S. Dreifuss, director of the Commission’s Office of the Consumer Advocate, to represent the interests of the general public in this proceeding. Pursuant to this designation, Ms. Dreifuss will direct the activities of Commission personnel assigned to assist her and, upon request, will supply their names for the record. Neither Ms. Dreifuss nor any of the assigned personnel will participate in or provide advice on any Commission decision in this proceeding. Intervention. Those wishing to be heard in this matter are directed to file a notice of intervention on or before August 5, 2005. The notice of intervention shall be filed using the Internet (Filing Online) at the Commission’s Web site (https:// www.prc.gov), unless a waiver is obtained for hardcopy filing. Rules 9(a) and 10(a) (39 CFR 3001.9(a) and 10(a)). Notices should indicate whether participation will be on a full or limited basis. See rules 20 and 20a (39 CFR 3001.20 and 20a). No decision has been made at this point on whether a hearing will be held in this case. Prehearing conference. A prehearing conference will be held August 11, 2005, at 10 a.m. in the Commission’s hearing room. Participants shall be prepared to identify any issue(s) that would indicate the need to schedule a E:\FR\FM\25JYN1.SGM 25JYN1 42604 Federal Register / Vol. 70, No. 141 / Monday, July 25, 2005 / Notices III below, which Items have been prepared by the MSRB. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. hearing, along with other matters referred to in this ruling. Ordering Paragraphs It Is Ordered: 1. The Commission establishes Docket No. MC2005–3 to consider the Postal Service Request referred to in the body of this order. 2. The Commission will sit en banc in this proceeding. 3. Postal Service counsel is appointed to serve as settlement coordinator in this proceeding. The Commission will make its hearing room available for a settlement conference on either August 8, 9, or 10, 2005, or at such times deemed necessary by the settlement coordinator. 4. Shelley S. Dreifuss, director of the Commission’s Office of the Consumer Advocate, is designated to represent the interests of the general public. 5. The deadline for filing notices of intervention is August 5, 2005. 6. A prehearing conference will be held August 11, 2005, at 10 a.m. in the Commission’s hearing room. 7. The Secretary shall arrange for publication of this notice and order in the Federal Register. Issued: July 19, 2005. Dated: July 19, 2005. By the Commission. Steven W. Williams, Secretary. [FR Doc. 05–14594 Filed 7–22–05; 8:45 am] BILLING CODE 7710–FW–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–52058; File No. SR–MSRB– 2005–13] Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Notice of Filing of Proposed Rule Change Relating to Official Statement Delivery Requirements Under Rule G–32, Rule G–36, and Rule G–11 July 19, 2005. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on June 23, 2005, the Municipal Securities Rulemaking Board (‘‘MSRB’’ or ‘‘Board’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change as described in Items I, II, and 1 15 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. VerDate jul<14>2003 17:46 Jul 22, 2005 Jkt 205001 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The MSRB has filed with the SEC a proposed rule change consisting of amendments to Rule G–32 (on delivery of official statements to new issue customers), Rule G–36 (on delivery of official statements and advance refunding documents to the Board) and Rule G–11 (on new issue municipal securities during the underwriting period). The proposed rule change is intended to improve the efficiency of official statement dissemination in the municipal securities marketplace and the timeliness of official statement deliveries to customers. The text of the proposed rule change is available on the MSRB’s Web site (https://www.msrb.org), at the MSRB’s principal office, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the MSRB included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The MSRB has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The proposed rule change is designed to improve the efficiency and timeliness of dissemination of official statements to underwriters and other brokers, dealers, and municipal securities dealers (‘‘dealers’’), which in turn should also improve the efficiency and timeliness of dealer-to-customer dissemination of official statements. The proposed amendments are described more fully below. Dissemination of Electronic Official Statements by Managing and Sole Underwriters The proposed amendments establish new clause (i)(C) of Rule G–32(c), which requires the managing or sole PO 00000 Frm 00074 Fmt 4703 Sfmt 4703 underwriter for new issues of municipal securities to provide a printable electronic version of the official statement (if an electronic version has been prepared and the issuer does not object to its distribution) to any dealer that requests an electronic version and provides an e-mail address or other delivery instructions acceptable to the managing or sole underwriter. This obligation is in addition to the managing or sole underwriter’s obligation to send paper copies of the official statement in the required quantities (i.e., one printed copy plus not less than one additional printed copy per $100,000 par value purchased by the dealer for sale to customers). However, if the requesting dealer consents, the managing or sole underwriter is permitted to provide such dealer solely with the electronic official statement in lieu of paper copies otherwise required under the rule.3 The proposed rule change does not specify a particular file format for the electronic version of the official statement, other than that the electronic version be printable. Portable document format (PDF) files (and, in the future, any other file formats that it may hereafter accept for purposes of official statement submissions to the MSRB’s web-based Electronic OS/ARD Submission System (the ‘‘e-OS System’’) established under Rule G–36) are acceptable formats for purposes of the proposed rule change, so long as such files are printable. In addition, other file formats that are printable using commercially available software then in common usage in the municipal securities industry, or with software that is bundled with such files, also would be acceptable so long as the dealer that makes the delivery promptly delivers a substitute paper version of the official statement if the recipient of the electronic file so requests and a paper version has not previously been sent to such recipient. The electronic version of the official statement must include every item of information included in the paper version. For example, if a dealer were to consent to receiving solely an electronic version of the official statement pursuant to clause (c)(i)(C) of Rule G–32 but portions of the official statement are not available in electronic form, a managing or sole underwriter could not discharge its obligation to deliver paper versions of the official statement under clause (c)(i)(A) by sending the portions 3 The managing or sole underwriter also need not provide the dealer with information on how to obtain additional copies of the official statement, as would otherwise be required under clause (i)(B) of Rule G–32(c), since such dealer will have agreed to rely exclusively on the printable electronic version. E:\FR\FM\25JYN1.SGM 25JYN1

Agencies

[Federal Register Volume 70, Number 141 (Monday, July 25, 2005)]
[Notices]
[Pages 42602-42604]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-14594]


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

POSTAL RATE COMMISSION

[Docket No. MC2005-3; Order No. 1441]


Negotiated Service Agreement

AGENCY: Postal Rate Commission.

ACTION: Notice and order on new baseline negotiated service agreement 
case.

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

SUMMARY: This document establishes a docket for consideration of the 
Postal Service's request for approval of a baseline negotiated service 
agreement with Bookspan. It identifies key elements of the proposed 
agreement, which involves Standard Mail letter rates; its relationship 
to the Capital One Services, Inc. negotiated service agreement; and 
addresses preliminary procedural matters.

DATES: Key dates are:
    1. August 8, 2005: Deadline for filing notices of intervention.
    2. August 8-10, 2005: Authorized alternative dates for settlement 
conference.
    3. August 11, 2005: Prehearing conference (10 a.m.).

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

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, general counsel, 
at 202-789-6818.

SUPPLEMENTARY INFORMATION:

Procedural History

    Capital One Services, Inc. Negotiated Service Agreement, 67 FR 
61355 (September 30, 2002).
    Negotiated Service Agreement Final Rule, 69 FR 7574 (February 18, 
2004).
    On July 14, 2005, the United States Postal Service filed a request 
seeking a recommended decision from the Postal Rate Commission 
approving a Negotiated Service Agreement (NSA) with Bookspan.\1\ The 
NSA is proffered as a new baseline agreement. This is the first new 
baseline agreement filed since the Capital One Negotiated Service 
Agreement, MC2002-2, and the first baseline agreement filed under the 
Commission's new rules for baseline NSAs. Rule 195 [39 CFR 3001.195]. 
The Request, which includes six attachments, was filed pursuant to 
Chapter 36 of the Postal Reorganization Act, 39 U.S.C. 3601 et seq.\2\ 
The Postal Service has identified Bookspan, along with itself, as 
parties to the NSA. This identification serves as notice of 
intervention by Bookspan. It also indicates that Bookspan shall be 
considered a co-proponent,

[[Page 42603]]

procedurally and substantively, of the Postal Service's Request during 
the Commission's review of the NSA. Rule 191(b) [39 CFR 3001.191(b)]. 
An appropriate Notice of Appearance and Filing of Testimony as Co-
Proponent by Bookspan, July 14, 2005, also was filed.
---------------------------------------------------------------------------

    \1\ Request of the United States Postal Service for a 
Recommended Decision on Classifications and Rates to Implement a 
Baseline Negotiated Service Agreement with Bookspan, July 15, 2005 
(Request).
    \2\ Attachments A and B to the Request contain proposed changes 
to the Domestic Mail Classification Schedule and the associated rate 
schedules; Attachment C is a certification required by Commission 
rule 193(i) specifying that the cost statements and supporting data 
submitted by the Postal Service, which purport to reflect the books 
of the Postal Service, accurately set forth the results shown by 
such books; Attachment D is an index of testimony and exhibits; 
Attachment E is a compliance statement addressing satisfaction of 
various filing requirements; and Attachment F is a copy of the 
Negotiated Service Agreement.
---------------------------------------------------------------------------

    In support of the direct case, the Postal Service has filed Direct 
Testimony of Michael K. Plunkett on Behalf of the United States Postal 
Service, July 14, 2005 (USPS-T-1), and Direct Testimony of Michelle K. 
Yorgey on Behalf of the United States Postal Service, July 14, 2005 
(USPS-T-2). Bookspan has separately filed Direct Testimony of Robert J. 
Posch, Jr. on Behalf of Bookspan, July 14, 2005 (Bookspan-T-1), and 
Direct Testimony of Matthias Epp on Behalf of Bookspan, July 14, 2005 
(Bookspan-T-2). The Postal Service has reviewed the Bookspan testimony 
and, in accordance with rule 192(b) [39 CFR 3001.192(b)], states that 
such testimony may be relied upon in presentation of the Postal 
Service's direct case.\3\
---------------------------------------------------------------------------

    \3\ Request at 6; USPS-T-2 at 1.
---------------------------------------------------------------------------

    The Postal Service has submitted a contemporaneous filing which 
requests the establishment of settlement procedures.\4\ The Postal 
Service believes that this agreement should not be particularly 
contentious given that the agreement is straightforward and the 
substance of the agreement concerns the availability of declining 
blocks, which were an integral part of all previously approved NSAs. 
However, if the parties do have issues that they want to explore, 
settlement discussions might provide a convenient forum to resolve 
those issues or facilitate a limitation of the issues that need to be 
litigated.
---------------------------------------------------------------------------

    \4\ Request of the United States Postal Service for 
Establishment of Settlement Procedures, July 14, 2005.
---------------------------------------------------------------------------

    The Postal Service's Request, the accompanying testimonies of 
witnesses Plunkett (USPS-T-1), Yorgey (USPS-T-2), Posch (Bookspan-T-1), 
and Epp (Bookspan-T-2), and other related material are available for 
inspection at the Commission's docket section during regular business 
hours. They also can be accessed electronically, via the Internet, on 
the Commission's Web site (https://www.prc.gov).

I. The Bookspan NSA

    The Postal Service proposes to enter into a new baseline three-year 
NSA with Bookspan. Unlike the Capital One baseline NSA, the Bookspan 
NSA is based solely upon a declining block rate volume discount 
available to qualifying Standard Mail letter pieces.
    The declining block rate volume discount feature provides Bookspan 
with a per-piece discount for Standard Mail letter volumes that exceed 
specified volume thresholds. Discounts are payable only after certain 
specified minimum volume commitments have been reached. During the 
first year of the agreement, discounts may be earned for annual volumes 
above 87 million pieces once a volume commitment of 94 million has been 
reached. During the second year of the agreement, discounts may be 
earned for annual volumes above 85 million pieces once a volume 
commitment of 95 million has been reached. During the third year of the 
agreement, discounts may be earned for annual volumes above 94 million 
pieces once a volume commitment of 105 million has been reached. 
Discounts, under a declining block rage structure, range from 2 to 3 
cents in the first two years of the agreement, and from 1 to 3 cents in 
the third year of the agreement.
    The minimum commitment levels for the second and third years of the 
agreement are subject to adjustment based on the actual volumes mailed 
in the previous years. If at the end of the first or second years, the 
actual volume is 12% or more above the prior year's commitment, the 
following year's commitment will be revised to be the average of the 
prior year's actual volume and the following year's original 
commitment. If at the end of the first or second years, the actual 
volume is 5% or more below the prior year's commitment, the following 
year's commitment will be revised to be the average of the prior year's 
actual volume and the prior year's original commitment. In any event, 
the volume commitments will never be less than 90 million pieces.
    This agreement provides for several other risk mitigation features 
to protect the Service's financial interests. If Bookspan sends more 
than 150 million qualifying pieces in any one year, the agreement 
automatically terminates. Either party may also unconditionally cancel 
the agreement with 30 days' written notice. Additionally, the agreement 
contains a mechanism to adjust the volume blocks to the extent that 
Bookspan merges or acquires an entity with an annual Standard Mail 
letter volume exceeding 5 million pieces, or merges or acquires 
multiple entities with a combined annual Standard Mail letter volume 
exceeding 10 million pieces.
    The Postal Service estimates it will benefit by $7.4 million over 
the life of the NSA. This is based on estimates of $3.3 million in 
increased contribution due to additional volume for new Standard letter 
mail, $5.1 million in increased contribution due to a net contribution 
gain from converting Standard Mail solicitation flats to letters, and 
lost revenue from total incremental discounts of $0.96 million.

II. Commission Response

    Applicability of the Rules for Baseline NSAs. For administrative 
purposes, the Commission has docketed the instant filing as a request 
for a new baseline NSA pursuant to rule 195 (39 CFR 3001.195).
    Settlement. The Commission authorizes settlement negotiations in 
this proceeding. It appoints Postal Service counsel as settlement 
coordinator. In this capacity, counsel for the Service shall file 
periodic reports on the status of settlement discussions. The Postal 
Service requests that a settlement conference be held immediately 
following the deadline for intervention. The Commission authorizes the 
settlement coordinator to hold a settlement conference on either August 
8, 9, or 10, 2005, and at such times deemed necessary by the settlement 
coordinator. Authorization of settlement discussions does not 
constitute a finding on the proposal's procedural status or on the need 
for a hearing.
    Representation of the general public. In conformance with section 
3624(a) of title 39, the Commission designates Shelley S. Dreifuss, 
director of the Commission's Office of the Consumer Advocate, to 
represent the interests of the general public in this proceeding. 
Pursuant to this designation, Ms. Dreifuss will direct the activities 
of Commission personnel assigned to assist her and, upon request, will 
supply their names for the record. Neither Ms. Dreifuss nor any of the 
assigned personnel will participate in or provide advice on any 
Commission decision in this proceeding.
    Intervention. Those wishing to be heard in this matter are directed 
to file a notice of intervention on or before August 5, 2005. The 
notice of intervention shall be filed using the Internet (Filing 
Online) at the Commission's Web site (https://www.prc.gov), unless a 
waiver is obtained for hardcopy filing. Rules 9(a) and 10(a) (39 CFR 
3001.9(a) and 10(a)). Notices should indicate whether participation 
will be on a full or limited basis. See rules 20 and 20a (39 CFR 
3001.20 and 20a). No decision has been made at this point on whether a 
hearing will be held in this case.
    Prehearing conference. A prehearing conference will be held August 
11, 2005, at 10 a.m. in the Commission's hearing room. Participants 
shall be prepared to identify any issue(s) that would indicate the need 
to schedule a

[[Page 42604]]

hearing, along with other matters referred to in this ruling.

Ordering Paragraphs

It Is Ordered:

    1. The Commission establishes Docket No. MC2005-3 to consider the 
Postal Service Request referred to in the body of this order.
    2. The Commission will sit en banc in this proceeding.
    3. Postal Service counsel is appointed to serve as settlement 
coordinator in this proceeding. The Commission will make its hearing 
room available for a settlement conference on either August 8, 9, or 
10, 2005, or at such times deemed necessary by the settlement 
coordinator.
    4. Shelley S. Dreifuss, director of the Commission's Office of the 
Consumer Advocate, is designated to represent the interests of the 
general public.
    5. The deadline for filing notices of intervention is August 5, 
2005.
    6. A prehearing conference will be held August 11, 2005, at 10 a.m. 
in the Commission's hearing room.
    7. The Secretary shall arrange for publication of this notice and 
order in the Federal Register.

    Issued: July 19, 2005.

    Dated: July 19, 2005.

    By the Commission.
Steven W. Williams,
Secretary.
[FR Doc. 05-14594 Filed 7-22-05; 8:45 am]
BILLING CODE 7710-FW-P
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