Extension of Negotiated Service Agreement, 44052-44054 [06-6653]
Download as PDF
44052
Federal Register / Vol. 71, No. 149 / Thursday, August 3, 2006 / Notices
that the proposed action is the preferred
alternative.
Agencies and Persons Consulted
NRC provided a draft of this
Environmental Assessment to PADEP
for review on June 9, 2006. On June 14,
2006, PADEP responded by email that
PADEP staff involved with both
radiation protection and with watershed
management reviewed the EA. PADEP
agreed with the conclusions of the EA,
and otherwise had no comments.
The NRC staff has determined that the
proposed action is of a procedural
nature, and will not affect listed species
or critical habitat. Therefore, no further
consultation is required under Section 7
of the Endangered Species Act. The
NRC staff has also determined that the
proposed action is not the type of
activity that has the potential to cause
effects on historic properties. Therefore,
no further consultation is required
under Section 106 of the National
Historic Preservation Act.
III. Finding of No Significant Impact
The NRC staff has prepared this EA in
support of the proposed action. On the
basis of this EA, the NRC finds that
there are no significant environmental
impacts from the proposed action, and
that preparation of an environmental
impact statement is not warranted.
Accordingly, the NRC has determined
that a Finding of No Significant Impact
is appropriate.
hsrobinson on PROD1PC69 with NOTICES
IV. Further Information
Documents related to this action,
including the application for license
amendment and supporting
documentation, are available
electronically at the NRC’s Electronic
Reading Room at https://www.nrc.gov/
reading-rm/adams.html. From this site,
you can access the NRC’s Agencywide
Document Access and Management
System (ADAMS), which provides text
and image files of NRC’s public
documents. The documents related to
this action are listed below, along with
their ADAMS accession numbers.
1. Amendment request with Erosion
and Sediment Pollution Control Plan
Revision 2, dated May 24, 2006
(ML061570151);
2. Title 25, Pennsylvania Code,
Chapter 105, ‘‘Dam Safety and
Waterway Management;’’
3. Title 40, Code of Federal
Regulations, Part 230, Section 404(b)(1),
‘‘Guidelines for Specification of
Disposal Sites for Dredged or Fill
Material;’’
4. Title 10, Code of Federal
Regulations, Part 20, Subpart E,
VerDate Aug<31>2005
15:20 Aug 02, 2006
Jkt 208001
‘‘Radiological Criteria for License
Termination;’’
5. Title 10, Code of Federal
Regulations, Part 40, ‘‘Domestic
Licensing of Source Material;’’
6. Title 10, Code of Federal
Regulations, Part 51, ‘‘Environmental
Protection Regulations for Domestic
Licensing and Related Regulatory
Functions;’’
If you do not have access to ADAMS,
or if there are problems in accessing the
documents located in ADAMS, contact
the NRC Public Document Room (PDR)
Reference staff at 1–800–397–4209, 301–
415–4737, or by e-mail to pdr@nrc.gov.
These documents may also be viewed
electronically on the public computers
located at the NRC’s PDR, O 1 F21, One
White Flint North, 11555 Rockville
Pike, Rockville, MD 20852. The PDR
reproduction contractor will copy
documents for a fee.
Dated at King of Prussia, Pennsylvania, this
25th day of July.
For the Nuclear Regulatory Commission.
Marie Miller,
Chief, Decommissioning Branch, Division of
Nuclear Materials Safety, Region I.
[FR Doc. E6–12515 Filed 8–2–06; 8:45 am]
BILLING CODE 7590–01–P
POSTAL RATE COMMISSION
[Docket No. MC2006–6; Order No. 1472]
Extension of Negotiated Service
Agreement
Postal Rate Commission.
ACTION: Notice and order.
AGENCY:
SUMMARY: This document informs the
public that the Postal Service is seeking
approval of a one-year extension of the
negotiated service agreement with
Capital One Services, Inc. The
document describes the agreement,
identifies certain preliminary decisions,
and addresses procedural steps,
including key deadlines.
DATES: 1. August 14, 2006: Deadline for
intervention, statements identifying
issues requiring a hearing, and
objections to rule 197 treatment.
2. August 15, 2006: Prehearing
conference.
Submit comments
electronically via the Commission’s
Filing Online system at https://
www.prc.gov.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
Stephen L. Sharfman, general counsel,
at 202–789–6820.
PO 00000
Frm 00040
Fmt 4703
Sfmt 4703
Procedural History
Capital One Services, Inc. Negotiated
Service Agreement, 67 FR 61355
(September 30, 2002).
On July 26, 2006, the United States
Postal Service filed a request seeking a
recommended decision from the Postal
Rate Commission approving a one-year
extension of the negotiated service
agreement with Capital One Services,
Inc.1 The Capital One negotiated service
agreement was first recommended by
the Commission on May 15, 2003,2 and
ordered into effect for a period of three
years ending September 1, 2006, by the
United States Postal Service Board of
Governors.3 The Request, which
includes seven attachments, was filed
pursuant to chapter 36 of the Postal
Reorganization Act, 39 U.S.C. 3601 et
seq.4 The Postal Service asks that this
case proceed under the Commission’s
rules for requests to renew previously
recommended negotiated service
agreements with existing participants.
Rule 197 [39 CFR 3001.197].
The Postal Service has identified
Capital One Services, Inc. (Capital One),
along with itself, as parties to the
negotiated service agreement. This
identification serves as notice of
intervention by Capital One. It also
indicates that Capital One shall be
considered a co-proponent,
procedurally and substantively, of the
Postal Service’s Request during the
Commission’s review of the negotiated
service agreement. Rule 191(b) [39 CFR
3001.191(b)].
In support of the direct case, the
Postal Service has filed Direct
Testimony of Jessica Lowrance on
1 Request of the United States Postal Service for
a Recommended Decision to Extend the Duration of
the Previously Recommended Negotiated Service
Agreement with Capital One, July 26, 2006
(Request).
2 PRC Op. MC2002–2, May 15, 2003.
3 Decision of the Governors of the United States
Postal Service on the Opinion and Recommended
Decision of the Postal Rate Commission
Recommending Experimental Rate and Service
Changes to Implement Negotiated Service
Agreement with Capital One, Docket No. MC2002–
2, June 2, 2003.
4 Attachment A to the Request contains proposed
changes to the Domestic Mail Classification
Schedule; Attachment B contains the current rate
schedules, which have not been modified from
Docket No. MC2002–2; 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;
Attachment F is a copy of the amendment to the
Negotiated Service Agreement and the Negotiated
Service Agreement itself; and Attachment G
contains the decision of the Governors for the
original Negotiated Service Agreement.
E:\FR\FM\03AUN1.SGM
03AUN1
Federal Register / Vol. 71, No. 149 / Thursday, August 3, 2006 / Notices
Behalf of the United States Postal
Service, July 26, 2006 (USPS–T–1). The
Request further relies on record
evidence entered in Docket No.
MC2002–2. The Postal Service’s
Compliance Statement, Request
Attachment E, identifies the Docket No.
MC2002–2 material on which it
proposes to rely.
Rule 197(b) [39 CFR 3001.197(b)]
requires the Postal Service to provide
written notice of its Request, either by
hand delivery or by First-Class Mail, to
all participants in the Commission
docket established to consider the
original agreement, Docket No.
MC2002–2. This requirement permits an
abbreviated intervention period by
providing additional time for the most
likely participants to decide whether or
not to intervene. A copy of the Postal
Service’s notice was filed with the
Commission on July 26, 2006.5
The Postal Service submitted a
contemporaneous filing requesting the
expedited issuance of a recommended
decision.6 The Motion further requests
that participants in this docket
accompany their notices of intervention
with detailed pleadings responding to
an order to show cause why the term
extension should not be recommended
as proposed.
The Postal Service’s Request, the
accompanying testimony of witness
Lowrance (USPS–T–1), the original
Docket No. MC2002–2 material, 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).
hsrobinson on PROD1PC69 with NOTICES
I. Background: The Capital One
Negotiated Service Agreement,
Recommended in Docket No. MC2002–
2
The Capital One negotiated service
agreement includes two significant mail
service features that form the bases of
the agreement—an address correction
service feature, and a declining block
rate volume discount feature.
The address correction service feature
provides Capital One, at certain levels of
volume, electronic address corrections
without fee for First-Class Mail
solicitations that are undeliverable as
addressed (UAA). In return for receipt of
5 Notice of the United States Postal Service of
Filing Request for a Recommended Decision to
Extend the Duration of the Previously
Recommended Negotiated Service Agreement with
Capital One, July 26, 2006.
6 Motion of the United States Postal Service for
Expedited Issuance of a Recommended Decision,
July 26, 2006 (Motion).
VerDate Aug<31>2005
15:20 Aug 02, 2006
Jkt 208001
electronic address correction, Capital
One will no longer receive physical
return of its UAA First-Class solicitation
mail that cannot be forwarded. Capital
One will also be required to maintain
and improve the address quality for its
First-Class Mail. PRC Op. MC2002–2,
para. 2004.
Use of the address correction service
feature is a prerequisite to use of the
second feature of the negotiated service
agreement, a declining block rate
volume discount. This feature provides
Capital One with a per-piece discount
for bulk First-Class Mail volume above
an annual threshold volume. The perpiece discount varies from 3 to 6 cents
under a ‘‘declining-block’’ rate
structure.
The Commission’s analysis of the
Capital One negotiated service
agreement focused on assuring that the
agreement would not make mailers
other than Capital One worse off. Id.,
para. 8006. To meet this condition, the
Commission’s recommendation of the
Capital One negotiated service
agreement included the addition of a
provision establishing a cumulative
three-year stop-loss limit on rate
discounts of $40.637 million. Id., paras.
5116, 8011. The Commission found that
the estimates of before-rates volumes for
Capital One were so unreliable that
without a stop-loss provision there
would be no reasonable assurance that
the Postal Service would not lose money
on the Capital One negotiated service
agreement. Id., para. 8013.
II. The Request to Extend the Duration
of the Capital One Negotiated Service
Agreement
The Postal Service proposes to extend
the duration of the ongoing negotiated
service agreement with Capital One by
one year while the parties develop a
new negotiated service agreement to be
filed in the upcoming year. The Postal
Service asserts that the Capital One
negotiated service agreement has proven
successful, benefiting both the Postal
Service and the mailing community as
a whole. The Postal Service and Capital
One propose no other modifications to
the currently in effect negotiated service
agreement and indicate their intent to
terminate the ongoing agreement once a
subsequent agreement is reached.
Request Attachment F at 2.
The Postal Service states that it is
probable that no discounts will be
earned in the third year of the
agreement, but continuation of the
agreement will serve two policy
objectives. First, Capital One will be
provided with an incentive to increase
solicitations during the extension
period. Second, Capital One will
PO 00000
Frm 00041
Fmt 4703
Sfmt 4703
44053
maintain its contractual obligation to
employ worksharing practices related to
Address Correction Service (ACS) as
well as its agreement to participate in
mail quality programs.
The Postal Service asserts that the
value from extending the current
agreement will primarily occur from the
use of electronic ACS notices to replace
manual notices. The estimated savings
from marketing pieces converted to
electronic ACs notices in the extension
period is $5.1 million. USPS–T–1 at 6.
III. Commission Response
Applicability of the rules for requests
to renew previously recommended
negotiated service agreements. For
administrative purposes, the
Commission has docketed the instant
filing as a request predicated on the
extension of a previously recommended
negotiated service agreement which is
currently in effect. A final
determination regarding the appropriate
characterization of the request and
application of the expedited rules, rule
197 [39 CFR 3001.197], will not be made
until after the prehearing conference.
Representation of the general public.
In conformance with section 3624(c) 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.
Driefuss 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 14, 2006. 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 15,
2006, at 2 p.m. in the Commission’s
hearing room. Participants shall be
prepared to address whether or not it is
appropriate to proceed under rule 197
[39 CFR 3001.197], and to identify any
issue(s) that would indicate the need to
E:\FR\FM\03AUN1.SGM
03AUN1
44054
Federal Register / Vol. 71, No. 149 / Thursday, August 3, 2006 / Notices
schedule extended discovery or a
hearing. Rule 197(c) [39 CFR
3001.197(c)].
Participants intending to object to
proceeding under rule 197 [39 CFR
3001.197] shall file supporting written
argument, if any, by August 14, 2006.
Participants also shall file statements
identifying issues that would indicate
the need to schedule a hearing by
August 14, 2006. The Commission
intends to make a decision on these
issues shortly after the prehearing
conference.
Motion for expedition. The Postal
Service’s motion for expedition and to
show cause is denied. Rule 197(d) [39
CFR 3001.197(d)] already provides for
expedited treatment of requests to
renew negotiated service agreements.
Likewise, rule 197(c) [38 CFR
3001.197(c)] already requires
participants to plead whether or not any
material issues of fact exist that require
discovery or evidentiary hearings at the
time of the prehearing conference.
Ordering Paragraphs
It is ordered:
hsrobinson on PROD1PC69 with NOTICES
1. The Commission establishes Docket
No. MC20056–6 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. Shelley S. Dreifuss, director of the
Commission’s Office of the Consumer
Advocate, is designated to represent the
interests of the general public.
4. The deadline for filing notices of
intervention is August 14, 2006.
5. A prehearing conference will be
held August 15, 2006 at 2 p.m. in the
Commission’s hearing room.
6. Participants shall file statements
identifying issues that would indicate
the need to schedule a hearing, or
objections to proceeding under rule 197
[39 CFR 3001.197] by August 14, 2006.
7. The Motion of the United States
Postal Service for Expedited Issuance of
a Recommended Decision, filed July 26,
2006, is denied.
8. The Secretary shall arrange for
publication of this notice and order in
the Federal Register.
Issued: July 27, 2006.
By the Commission.
Steven W. Williams,
Secretary.
[FR Doc. 06–6653 Filed 8–2–06; 8:45 am]
BILLING CODE 7710–FW–M
VerDate Aug<31>2005
15:20 Aug 02, 2006
Jkt 208001
RAILROAD RETIREMENT BOARD
Proposed Collection; Comment
Request
SUMMARY: In accordance with the
requirement of Section 3506(c)(2)(A) of
the Paperwork Reduction Act of 1995
which provides opportunity for public
comment on new or revised data
collections, the Railroad Retirement
Board (RRB) will publish periodic
summaries of proposed data collections.
Comments are invited on: (a) Whether
the proposed information collection is
necessary for the proper performance of
the functions of the agency, including
whether the information has practical
utility; (b) the accuracy of the RRB’s
estimate of the burden of the collection
of the information; (c) ways to enhance
the quality, utility, and clarity of the
information to be collected; and (d)
ways to minimize the burden related to
the collection of information on
respondents, including the use of
automated collection techniques or
other forms of information technology.
Title and purpose of information
collection: Job Information Report, OMB
3220–0193. In July of 1997, the Railroad
Retirement Board (RRB) adopted
standards for the adjudication of
occupational disabilities under the
Railroad Retirement Act (RRA). As part
of these standards, the RRB requests job
information to determine an applicant’s
eligibility for an occupational disability.
The job information received from the
railroad employer and railroad
employee is compared, reconciled (if
needed), and then used in the
occupational disability determination
process. The process of obtaining
information from railroad employers
used to determine an applicant’s
eligibility for an occupational disability
is outlined in 20 CFR 220.13.
To determine an occupational
disability, the RRB determines if an
employee is precluded from performing
the full range of duties of his or her
regular railroad occupation. This is
accomplished by comparing the
restrictions on impairment(s) causes
against an employee’s ability to perform
his/her normal duties. To collect
information needed to determine the
effect of a disability on an applicant’s
ability to work, the RRB needs the
applicant’s work history. The RRB
currently utilizes Form G–251,
Vocational Report (OMB 3220–0141), to
obtain this information from the
employee applicant.
Note: Form G–251 is provided to all
applicants for employee disability annuities
and to those applicants for a widow(er)’s
PO 00000
Frm 00042
Fmt 4703
Sfmt 4703
disability annuity who indicate that they
have been employed at some time.
In accordance with the standards, the
RRB also requests pertinent job
information from employers. The
employer is given thirty days from the
date of the notice to respond. The
responses are not required, but are
voluntary. If the job information is
received timely, it is compared to the
job information provided by the
employee. Any material differences are
resolved by an RRB disability examiner.
Once resolved, the information is
compared to the restrictions caused by
the medical impairment. If the
restrictions prohibit the performance of
the regular railroad occupation, the
claimant is found occupationally
disabled.
The RRB uses two forms to secure job
information data from the railroad
employer. RRB Form G–251a, Employer
Job Information (job description), is
released to an employer when an
application for an occupational
disability is filed by an employee whose
regular railroad occupation is one of the
more common types of railroad jobs
(locomotive engineer, conductor,
switchman, etc.) It is accompanied by a
*generic job description* for that
particular railroad job. The generic job
descriptions describe how these select
occupations are generally performed in
the railroad industry. However, not all
occupations are performed the same
way from railroad to railroad. Thus, the
employer is given an opportunity to
comment on whether the job description
matches the employee’s actual duties. If
the employer concludes that the generic
job description accurately describes the
work performed by the applicant, no
further action will be necessary. If the
employer determines that the tasks are
different, it may provide the RRB with
a description of the actual job tasks. The
employer has thirty days from the date
the form is released to reply.
Form G–251b, Employer Job
Information (general), is released to an
employer when an application for an
RRB occupational disability is filed by
an employee whose regular railroad
occupation does not have a generic job
description. It notifies the employer that
the employee has filed for a disability
annuity and that, if the employer
wishes, it may provide the RRB with job
duty information. The type of
information the RRB is seeking is
outlined on the form. The employer has
thirty days from the date the form is
released to reply.
The RRB proposes no changes to
Forms G–251a and G–251b.
E:\FR\FM\03AUN1.SGM
03AUN1
Agencies
[Federal Register Volume 71, Number 149 (Thursday, August 3, 2006)]
[Notices]
[Pages 44052-44054]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-6653]
=======================================================================
-----------------------------------------------------------------------
POSTAL RATE COMMISSION
[Docket No. MC2006-6; Order No. 1472]
Extension of Negotiated Service Agreement
AGENCY: Postal Rate Commission.
ACTION: Notice and order.
-----------------------------------------------------------------------
SUMMARY: This document informs the public that the Postal Service is
seeking approval of a one-year extension of the negotiated service
agreement with Capital One Services, Inc. The document describes the
agreement, identifies certain preliminary decisions, and addresses
procedural steps, including key deadlines.
DATES: 1. August 14, 2006: Deadline for intervention, statements
identifying issues requiring a hearing, and objections to rule 197
treatment.
2. August 15, 2006: Prehearing conference.
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 202-789-6820.
Procedural History
Capital One Services, Inc. Negotiated Service Agreement, 67 FR
61355 (September 30, 2002).
On July 26, 2006, the United States Postal Service filed a request
seeking a recommended decision from the Postal Rate Commission
approving a one-year extension of the negotiated service agreement with
Capital One Services, Inc.\1\ The Capital One negotiated service
agreement was first recommended by the Commission on May 15, 2003,\2\
and ordered into effect for a period of three years ending September 1,
2006, by the United States Postal Service Board of Governors.\3\ The
Request, which includes seven attachments, was filed pursuant to
chapter 36 of the Postal Reorganization Act, 39 U.S.C. 3601 et seq.\4\
The Postal Service asks that this case proceed under the Commission's
rules for requests to renew previously recommended negotiated service
agreements with existing participants. Rule 197 [39 CFR 3001.197].
---------------------------------------------------------------------------
\1\ Request of the United States Postal Service for a
Recommended Decision to Extend the Duration of the Previously
Recommended Negotiated Service Agreement with Capital One, July 26,
2006 (Request).
\2\ PRC Op. MC2002-2, May 15, 2003.
\3\ Decision of the Governors of the United States Postal
Service on the Opinion and Recommended Decision of the Postal Rate
Commission Recommending Experimental Rate and Service Changes to
Implement Negotiated Service Agreement with Capital One, Docket No.
MC2002-2, June 2, 2003.
\4\ Attachment A to the Request contains proposed changes to the
Domestic Mail Classification Schedule; Attachment B contains the
current rate schedules, which have not been modified from Docket No.
MC2002-2; 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; Attachment F is a copy of the amendment
to the Negotiated Service Agreement and the Negotiated Service
Agreement itself; and Attachment G contains the decision of the
Governors for the original Negotiated Service Agreement.
---------------------------------------------------------------------------
The Postal Service has identified Capital One Services, Inc.
(Capital One), along with itself, as parties to the negotiated service
agreement. This identification serves as notice of intervention by
Capital One. It also indicates that Capital One shall be considered a
co-proponent, procedurally and substantively, of the Postal Service's
Request during the Commission's review of the negotiated service
agreement. Rule 191(b) [39 CFR 3001.191(b)].
In support of the direct case, the Postal Service has filed Direct
Testimony of Jessica Lowrance on
[[Page 44053]]
Behalf of the United States Postal Service, July 26, 2006 (USPS-T-1).
The Request further relies on record evidence entered in Docket No.
MC2002-2. The Postal Service's Compliance Statement, Request Attachment
E, identifies the Docket No. MC2002-2 material on which it proposes to
rely.
Rule 197(b) [39 CFR 3001.197(b)] requires the Postal Service to
provide written notice of its Request, either by hand delivery or by
First-Class Mail, to all participants in the Commission docket
established to consider the original agreement, Docket No. MC2002-2.
This requirement permits an abbreviated intervention period by
providing additional time for the most likely participants to decide
whether or not to intervene. A copy of the Postal Service's notice was
filed with the Commission on July 26, 2006.\5\
---------------------------------------------------------------------------
\5\ Notice of the United States Postal Service of Filing Request
for a Recommended Decision to Extend the Duration of the Previously
Recommended Negotiated Service Agreement with Capital One, July 26,
2006.
---------------------------------------------------------------------------
The Postal Service submitted a contemporaneous filing requesting
the expedited issuance of a recommended decision.\6\ The Motion further
requests that participants in this docket accompany their notices of
intervention with detailed pleadings responding to an order to show
cause why the term extension should not be recommended as proposed.
---------------------------------------------------------------------------
\6\ Motion of the United States Postal Service for Expedited
Issuance of a Recommended Decision, July 26, 2006 (Motion).
---------------------------------------------------------------------------
The Postal Service's Request, the accompanying testimony of witness
Lowrance (USPS-T-1), the original Docket No. MC2002-2 material, 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. Background: The Capital One Negotiated Service Agreement,
Recommended in Docket No. MC2002-2
The Capital One negotiated service agreement includes two
significant mail service features that form the bases of the
agreement--an address correction service feature, and a declining block
rate volume discount feature.
The address correction service feature provides Capital One, at
certain levels of volume, electronic address corrections without fee
for First-Class Mail solicitations that are undeliverable as addressed
(UAA). In return for receipt of electronic address correction, Capital
One will no longer receive physical return of its UAA First-Class
solicitation mail that cannot be forwarded. Capital One will also be
required to maintain and improve the address quality for its First-
Class Mail. PRC Op. MC2002-2, para. 2004.
Use of the address correction service feature is a prerequisite to
use of the second feature of the negotiated service agreement, a
declining block rate volume discount. This feature provides Capital One
with a per-piece discount for bulk First-Class Mail volume above an
annual threshold volume. The per-piece discount varies from 3 to 6
cents under a ``declining-block'' rate structure.
The Commission's analysis of the Capital One negotiated service
agreement focused on assuring that the agreement would not make mailers
other than Capital One worse off. Id., para. 8006. To meet this
condition, the Commission's recommendation of the Capital One
negotiated service agreement included the addition of a provision
establishing a cumulative three-year stop-loss limit on rate discounts
of $40.637 million. Id., paras. 5116, 8011. The Commission found that
the estimates of before-rates volumes for Capital One were so
unreliable that without a stop-loss provision there would be no
reasonable assurance that the Postal Service would not lose money on
the Capital One negotiated service agreement. Id., para. 8013.
II. The Request to Extend the Duration of the Capital One Negotiated
Service Agreement
The Postal Service proposes to extend the duration of the ongoing
negotiated service agreement with Capital One by one year while the
parties develop a new negotiated service agreement to be filed in the
upcoming year. The Postal Service asserts that the Capital One
negotiated service agreement has proven successful, benefiting both the
Postal Service and the mailing community as a whole. The Postal Service
and Capital One propose no other modifications to the currently in
effect negotiated service agreement and indicate their intent to
terminate the ongoing agreement once a subsequent agreement is reached.
Request Attachment F at 2.
The Postal Service states that it is probable that no discounts
will be earned in the third year of the agreement, but continuation of
the agreement will serve two policy objectives. First, Capital One will
be provided with an incentive to increase solicitations during the
extension period. Second, Capital One will maintain its contractual
obligation to employ worksharing practices related to Address
Correction Service (ACS) as well as its agreement to participate in
mail quality programs.
The Postal Service asserts that the value from extending the
current agreement will primarily occur from the use of electronic ACS
notices to replace manual notices. The estimated savings from marketing
pieces converted to electronic ACs notices in the extension period is
$5.1 million. USPS-T-1 at 6.
III. Commission Response
Applicability of the rules for requests to renew previously
recommended negotiated service agreements. For administrative purposes,
the Commission has docketed the instant filing as a request predicated
on the extension of a previously recommended negotiated service
agreement which is currently in effect. A final determination regarding
the appropriate characterization of the request and application of the
expedited rules, rule 197 [39 CFR 3001.197], will not be made until
after the prehearing conference.
Representation of the general public. In conformance with section
3624(c) 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. Driefuss 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 14, 2006. 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
15, 2006, at 2 p.m. in the Commission's hearing room. Participants
shall be prepared to address whether or not it is appropriate to
proceed under rule 197 [39 CFR 3001.197], and to identify any issue(s)
that would indicate the need to
[[Page 44054]]
schedule extended discovery or a hearing. Rule 197(c) [39 CFR
3001.197(c)].
Participants intending to object to proceeding under rule 197 [39
CFR 3001.197] shall file supporting written argument, if any, by August
14, 2006. Participants also shall file statements identifying issues
that would indicate the need to schedule a hearing by August 14, 2006.
The Commission intends to make a decision on these issues shortly after
the prehearing conference.
Motion for expedition. The Postal Service's motion for expedition
and to show cause is denied. Rule 197(d) [39 CFR 3001.197(d)] already
provides for expedited treatment of requests to renew negotiated
service agreements. Likewise, rule 197(c) [38 CFR 3001.197(c)] already
requires participants to plead whether or not any material issues of
fact exist that require discovery or evidentiary hearings at the time
of the prehearing conference.
Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket No. MC20056-6 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. Shelley S. Dreifuss, director of the Commission's Office of the
Consumer Advocate, is designated to represent the interests of the
general public.
4. The deadline for filing notices of intervention is August 14,
2006.
5. A prehearing conference will be held August 15, 2006 at 2 p.m.
in the Commission's hearing room.
6. Participants shall file statements identifying issues that would
indicate the need to schedule a hearing, or objections to proceeding
under rule 197 [39 CFR 3001.197] by August 14, 2006.
7. The Motion of the United States Postal Service for Expedited
Issuance of a Recommended Decision, filed July 26, 2006, is denied.
8. The Secretary shall arrange for publication of this notice and
order in the Federal Register.
Issued: July 27, 2006.
By the Commission.
Steven W. Williams,
Secretary.
[FR Doc. 06-6653 Filed 8-2-06; 8:45 am]
BILLING CODE 7710-FW-M