Global Expedited Package Services Negotiated Service Agreements, 32365-32366 [E8-12767]

Download as PDF Federal Register / Vol. 73, No. 110 / Friday, June 6, 2008 / Notices PWALKER on PROD1PC71 with NOTICES As noted above, the Postal Service filed both dockets pursuant to rule 3015.5. Recognizing that the Postal Service’s filings in this consolidated proceeding (along with the concomitantly filed notices in Docket Nos. CP2008–4 and CP2008–5) represent the Postal Service’s first filings involving competitive rates not of general applicability under section 3632(b)(3) of title 39, the Commission will proceed as if the Inbound EMS agreement also had been filed pursuant to 39 CFR part 3020, subpart B and will review the consolidated dockets pursuant to rule 3020.34.5 The Postal Service’s filing in Docket No. CP2008–6 is styled as applicable to Inbound EMS. So, too, is the negotiated agreement filed in Docket No. CP2008– 7. To that extent, both are consistent with language it proposed for inclusion in the draft MCS in its November 20 Filing. In Order No. 43, the Commission listed inbound and outbound international expedited services as separate products. The Commission has made no determination, however, whether the outbound portion of the agreement in Docket No. CP2008–7 is subject to its review. Agreements with foreign posts present unique issues that have not yet been fully briefed. In its November 20 Filing, the Postal Service contended that the outbound portion of agreements with foreign posts ‘‘does not properly belong in the MCS’’ because the outbound portion reflects a payment by the Postal Service for processing and delivery by foreign posts and not what the Postal Service charges for its services. November 20 Filing at 10. The Postal Service’s filings also raise issues concerning the treatment of confidential information, a broad topic that may require different solutions tailored to the specifics of each case. For instance, agreements with foreign posts may require different treatment than agreements with private entities (corporations, businesses, etc.). Agreements concerning competitive products may require different treatment than agreements concerning market dominant products. A common issue, however, is how individual agreements (contracts) are to be identified in the Mail Classification 5 Filings to change or add rates not of general applicability are properly made under rule 3015.5. Postal Service filings to modify the product lists are properly made under part 3020, subpart B. Filings involving negotiated service agreements implicate both sets of rules until such time that a group of negotiated service agreements are shown to be classified properly as one product. The Commission anticipates that with experience and the adoption of the MCS the review process will proceed relatively quickly. VerDate Aug<31>2005 16:09 Jun 05, 2008 Jkt 214001 Schedule. For agreements with foreign posts involving competitive products, the Commission proposes, at a minimum, identifying each international mail agreement by the name(s) of the foreign post(s), the mail product(s) involved, and the agreement’s expiration date. The Commission assumes that the Postal Service has or will have agreements with many if not most foreign posts. Thus, with the potential for many agreements, some compelling justification for keeping the identity of the foreign posts confidential is warranted. To elaborate briefly in this proceeding, the Postal Service contends that the identities of the foreign posts with which it executes bilateral/ multilateral agreements should not be disclosed, arguing generally that foreign posts’ ability to negotiate with other posts could be compromised by public disclosure. Pricing Notice at 1. Absent more, this rationale would not appear to justify concealing the identity of foreign posts in proceedings before the Commission. The Postal Service should amplify on the rationale for its position, including addressing the putative harm associated with public disclosure. The Commission has observed that typical international mail agreements are of approximately one year duration (with possible provisions for renewal). Absent justification, there would appear to be no compelling need to keep expiration dates confidential. Thus, in its comments, the Postal Service should also address the issue of including the expiration date of each agreement in the MCS, as well as identifying the product. Comments addressing these points are due no later than June 10, 2008. Interested persons may comment on issues in this consolidated proceeding, including whether the Postal Service filings are consistent with the policies of sections 3632, 3633, or 3642. Comments are due no later than June 16, 2008. Pursuant to 39 U.S.C. 505, Paul L. Harrington is appointed to serve as officer of the Commission (Public Representative) to represent the interests of the general public in the above-captioned docket. It is ordered: 1. The proceedings in Docket Nos. CP2008–6 and CP2008–7 are consolidated. All future filings in the consolidated docket are to be made under Docket No. CP2008–7. 2. As set forth in the body of this order, the Postal Service comments on confidentiality are due no latter than June 10, 2008. 3. Comments on issues in this consolidated proceeding from interested PO 00000 Frm 00083 Fmt 4703 Sfmt 4703 32365 persons are due no later than June 16, 2008. 4. The Commission appoints Paul L. Harrington as Public Representative to represent the interests of the general public in this proceeding. 5. The Secretary shall arrange for publication of this notice and order in the Federal Register. By the Commission. Steven W. Williams, Secretary. [FR Doc. E8–12764 Filed 6–5–08; 8:45 am] BILLING CODE 7710–FW–P POSTAL REGULATORY COMMISSION [Docket No. CP2008–5; Order No. 78] Global Expedited Package Services Negotiated Service Agreements Postal Regulatory Commission. Notice. AGENCY: ACTION: SUMMARY: A new law gives the Postal Service considerable pricing flexibility for competitive products. Pursuant to this authority, the Postal Service has filed two notices with the Commission concerning prices for Global Expedited Package Services (GEPS) contracts, which is in the competitive category. The Commission has established a consolidated docket for consideration of these pricing decisions. This will allow interested persons an opportunity to comment. DATES: Comments due June 16, 2008. ADDRESSES: Submit documents 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 stephen.sharfman@prc.gov. SUPPLEMENTARY INFORMATION: On May 20, 2008, the Postal Service filed two notices, which have been assigned to Docket Nos. CP2008–4 and CP2008–5, announcing prices and classification changes for competitive products not of general applicability. The notice in Docket No. CP2008–4 informs the Commission that ‘‘the Governors have established prices and classifications for competitive products not of general applicability for Global Expedited Package Services (GEPS) contracts.’’ 1 The Postal Service attached a revision of the draft Mail Classification Schedule (MCS) (section 2610.2) concerning GEPS 1 Notice of United States Postal Service of Governors’ Decision Establishing Prices and Classifications for Global Expedited Package Services Contracts, May 20, 2008 (Notice). E:\FR\FM\06JNN1.SGM 06JNN1 32366 Federal Register / Vol. 73, No. 110 / Friday, June 6, 2008 / Notices contracts to the Notice.2 Docket No. CP2008–4 has been filed pursuant to 39 U.S.C. 3632(b)(3) and 39 CFR 3015.5 and 3020.90. In support of this docket, the Postal Service has also filed materials under seal, including the Governors’ decision. The Postal Service claims that ‘‘[c]ontract prices are highly confidential in the business world * * * [and that its] ability * * * to negotiate individual contracts would be severely compromised if prices for these types of agreements were publicly disclosed.’’ Id. at 1–2. The notice in Docket No. CP2008–5, announces an individual negotiated service agreement, namely, a specific GEPS contract the Postal Service has entered into with an individual mailer.3 Docket No. CP2008–5 has been filed pursuant to 39 CFR 3015.5. In support of this docket, the Postal Service has also filed materials, including the contract and supporting materials, under seal. Here the Postal Service asserts that ‘‘[t]he names of customers who enter into respective contracts and the related contract prices are highly confidential business information.’’ Id. at 1. The Postal Service’s filings in these dockets are related. Docket No. CP2008– 4 establishes, in essence, a shell classification, while Docket No. CP2008–5 is a specific agreement negotiated pursuant to the conditions of the shell classification. Given this interrelationship, the Commission will consolidate these proceedings for purposes of review.4 In Order No. 43, the Commission issued regulations establishing a modern system of rate regulation, including a list of competitive products. PRC Order No. 43, October 29, 2007, paras. 3061, 4013. Among other things, the Commission determined that each negotiated service agreement would initially be classified as a separate product. The Commission also acknowledged, however, the possibility of grouping functionally equivalent agreements as a single product if they exhibit similar cost and market characteristics. Id. paras. 2177 and 3001. Thus, the specific GEPS agreement filed in Docket No. CP2008–5 will be classified as a new product. As noted above, the Postal Service filed both dockets pursuant to rule PWALKER on PROD1PC71 with NOTICES 2 The draft MCS remains under review. The Commission anticipates providing interested persons an opportunity to comment on the draft MCS in the near future. 3 Notice of United States Postal Service of Filing a Global Expedited Package Service Contract (Pricing Notice). 4 All future filings in the consolidated docket shall be made under Docket No. CP2008–5. VerDate Aug<31>2005 16:09 Jun 05, 2008 Jkt 214001 3015.5.5 Recognizing that the Postal Service’s filings in this consolidated proceeding (along with the concomitantly filed notices in Docket Nos. CP2008–6 and CP2008–7) represent the Postal Service’s first filings involving competitive rates not of general applicability under section 3632(b)(3) of title 39, the Commission will proceed as if the GEPS negotiated service agreement also had been filed pursuant to 39 CFR part 3020, subpart B. As a consequence, the Commission will review the consolidated dockets pursuant to rule 3020.34.6 Because the Commission in its own discretion consolidated Docket Nos. CP2008–4 and CP2008–5 and will review them under rule 3020.34, the Postal Service may, if it wishes to do so, supplement the materials already filed with the Commission.7 In addition, the Commission directs the Postal Service to identify and list any contracts currently in existence (and their respective expiration dates) that would no longer qualify as GEPS contracts under the proposed revised Mail Classification Schedule language for section 2610.2 attached to the Notice in Docket No. CP2008–4. The revised language modifies the GEPS eligibility criteria by, among other things, requiring the mailer on an annual basis to mail at least 5,000 pieces (instead of 600 pieces), or pay postage of at least $100,000 (instead of $12,000). The Commission also directs the Postal Service to provide a detailed justification for why it believes that GEPS contracts’ expiration dates (without disclosing the identity of the customer) should not be made publicly available. Answers to the Commission’s questions and any supplemental materials that the Postal Service plans to provide are due no later than June 10, 2008. Interested persons may express views and offer comments on whether the planned changes are consistent with the policies of 39 U.S.C. 3632, 3633 or 3642. 5 Docket No. CP2008–4 was also filed pursuant to 39 CFR 3020.90. 6 Filings to change or add rates not of general applicability are properly made under rule 3015.5. Postal Service filings to modify the product lists are properly made under part 3020, subpart B. Filings involving negotiated service agreements implicate both sets of rules until such time that a group of negotiated service agreements are shown to be classified properly as one product. The Commission anticipates that with experience and the adoption of the MCS, the review process will proceed relatively quickly. 7 The Commission characterizes the Governors’ decision and associated materials filed in Docket No. CP2008–4 as material that supports the specific negotiated service agreement filed in Docket No. CP2008–5. PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 Comments are due no later than June 16, 2008. Pursuant to 39 U.S.C. 505, Paul L. Harrington is appointed to serve as officer of the Commission (Public Representative) to represent the interests of the general public in the above-captioned docket. It is ordered: 1. The proceedings under Docket Nos. CP2008–4 and CP2008–5 are consolidated. All future filings in the consolidated docket are to be made under Docket No. CP2008–5. 2. As set forth in the body of this order, the Postal Service is provided with an opportunity to supplement the materials already filed with the Commission. Any supplemental materials that the Postal Service wishes to provide are due no later than June 10, 2008. 3. Comments on issues in this consolidated proceeding are due no later than June 16, 2008. 4. The Commission appoints Paul L. Harrington as Public Representative to represent the interests of the general public in this proceeding. 5. The Secretary shall arrange for publication of this notice and order in the Federal Register. By the Commission. Steven W. Williams, Secretary. [FR Doc. E8–12767 Filed 6–5–08; 8:45 am] BILLING CODE 7710–FW–P POSTAL REGULATORY COMMISSION [Docket No. MC2008–4; Order No. 80] Premium Forwarding Service Postal Regulatory Commission. Notice. AGENCY: ACTION: SUMMARY: This document announces a formal docket to consider transferring the classification of Premium Forwarding Service from the market dominant products list to the competitive products list. It solicits comments to assist in this task. DATES: Comments due June 16, 2008. ADDRESSES: Submit documents 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 stephen.sharfman@prc.gov. On May 30, 2008, the Postal Service filed a request to modify the Mail Classification Schedule transferring Premium SUPPLEMENTARY INFORMATION: E:\FR\FM\06JNN1.SGM 06JNN1

Agencies

[Federal Register Volume 73, Number 110 (Friday, June 6, 2008)]
[Notices]
[Pages 32365-32366]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-12767]


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POSTAL REGULATORY COMMISSION

 [Docket No. CP2008-5; Order No. 78]


Global Expedited Package Services Negotiated Service Agreements

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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

SUMMARY: A new law gives the Postal Service considerable pricing 
flexibility for competitive products. Pursuant to this authority, the 
Postal Service has filed two notices with the Commission concerning 
prices for Global Expedited Package Services (GEPS) contracts, which is 
in the competitive category. The Commission has established a 
consolidated docket for consideration of these pricing decisions. This 
will allow interested persons an opportunity to comment.

DATES: Comments due June 16, 2008.

ADDRESSES: Submit documents 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 stephen.sharfman@prc.gov.

SUPPLEMENTARY INFORMATION: On May 20, 2008, the Postal Service filed 
two notices, which have been assigned to Docket Nos. CP2008-4 and 
CP2008-5, announcing prices and classification changes for competitive 
products not of general applicability. The notice in Docket No. CP2008-
4 informs the Commission that ``the Governors have established prices 
and classifications for competitive products not of general 
applicability for Global Expedited Package Services (GEPS) contracts.'' 
\1\ The Postal Service attached a revision of the draft Mail 
Classification Schedule (MCS) (section 2610.2) concerning GEPS

[[Page 32366]]

contracts to the Notice.\2\ Docket No. CP2008-4 has been filed pursuant 
to 39 U.S.C. 3632(b)(3) and 39 CFR 3015.5 and 3020.90. In support of 
this docket, the Postal Service has also filed materials under seal, 
including the Governors' decision. The Postal Service claims that 
``[c]ontract prices are highly confidential in the business world * * * 
[and that its] ability * * * to negotiate individual contracts would be 
severely compromised if prices for these types of agreements were 
publicly disclosed.'' Id. at 1-2.
---------------------------------------------------------------------------

    \1\ Notice of United States Postal Service of Governors' 
Decision Establishing Prices and Classifications for Global 
Expedited Package Services Contracts, May 20, 2008 (Notice).
    \2\ The draft MCS remains under review. The Commission 
anticipates providing interested persons an opportunity to comment 
on the draft MCS in the near future.
---------------------------------------------------------------------------

    The notice in Docket No. CP2008-5, announces an individual 
negotiated service agreement, namely, a specific GEPS contract the 
Postal Service has entered into with an individual mailer.\3\ Docket 
No. CP2008-5 has been filed pursuant to 39 CFR 3015.5. In support of 
this docket, the Postal Service has also filed materials, including the 
contract and supporting materials, under seal. Here the Postal Service 
asserts that ``[t]he names of customers who enter into respective 
contracts and the related contract prices are highly confidential 
business information.'' Id. at 1.
---------------------------------------------------------------------------

    \3\ Notice of United States Postal Service of Filing a Global 
Expedited Package Service Contract (Pricing Notice).
---------------------------------------------------------------------------

    The Postal Service's filings in these dockets are related. Docket 
No. CP2008-4 establishes, in essence, a shell classification, while 
Docket No. CP2008-5 is a specific agreement negotiated pursuant to the 
conditions of the shell classification. Given this interrelationship, 
the Commission will consolidate these proceedings for purposes of 
review.\4\
---------------------------------------------------------------------------

    \4\ All future filings in the consolidated docket shall be made 
under Docket No. CP2008-5.
---------------------------------------------------------------------------

    In Order No. 43, the Commission issued regulations establishing a 
modern system of rate regulation, including a list of competitive 
products. PRC Order No. 43, October 29, 2007, paras. 3061, 4013. Among 
other things, the Commission determined that each negotiated service 
agreement would initially be classified as a separate product. The 
Commission also acknowledged, however, the possibility of grouping 
functionally equivalent agreements as a single product if they exhibit 
similar cost and market characteristics. Id. paras. 2177 and 3001. 
Thus, the specific GEPS agreement filed in Docket No. CP2008-5 will be 
classified as a new product.
    As noted above, the Postal Service filed both dockets pursuant to 
rule 3015.5.\5\ Recognizing that the Postal Service's filings in this 
consolidated proceeding (along with the concomitantly filed notices in 
Docket Nos. CP2008-6 and CP2008-7) represent the Postal Service's first 
filings involving competitive rates not of general applicability under 
section 3632(b)(3) of title 39, the Commission will proceed as if the 
GEPS negotiated service agreement also had been filed pursuant to 39 
CFR part 3020, subpart B. As a consequence, the Commission will review 
the consolidated dockets pursuant to rule 3020.34.\6\ Because the 
Commission in its own discretion consolidated Docket Nos. CP2008-4 and 
CP2008-5 and will review them under rule 3020.34, the Postal Service 
may, if it wishes to do so, supplement the materials already filed with 
the Commission.\7\
---------------------------------------------------------------------------

    \5\ Docket No. CP2008-4 was also filed pursuant to 39 CFR 
3020.90.
    \6\ Filings to change or add rates not of general applicability 
are properly made under rule 3015.5. Postal Service filings to 
modify the product lists are properly made under part 3020, subpart 
B. Filings involving negotiated service agreements implicate both 
sets of rules until such time that a group of negotiated service 
agreements are shown to be classified properly as one product. The 
Commission anticipates that with experience and the adoption of the 
MCS, the review process will proceed relatively quickly.
    \7\ The Commission characterizes the Governors' decision and 
associated materials filed in Docket No. CP2008-4 as material that 
supports the specific negotiated service agreement filed in Docket 
No. CP2008-5.
---------------------------------------------------------------------------

    In addition, the Commission directs the Postal Service to identify 
and list any contracts currently in existence (and their respective 
expiration dates) that would no longer qualify as GEPS contracts under 
the proposed revised Mail Classification Schedule language for section 
2610.2 attached to the Notice in Docket No. CP2008-4. The revised 
language modifies the GEPS eligibility criteria by, among other things, 
requiring the mailer on an annual basis to mail at least 5,000 pieces 
(instead of 600 pieces), or pay postage of at least $100,000 (instead 
of $12,000). The Commission also directs the Postal Service to provide 
a detailed justification for why it believes that GEPS contracts' 
expiration dates (without disclosing the identity of the customer) 
should not be made publicly available. Answers to the Commission's 
questions and any supplemental materials that the Postal Service plans 
to provide are due no later than June 10, 2008.
    Interested persons may express views and offer comments on whether 
the planned changes are consistent with the policies of 39 U.S.C. 3632, 
3633 or 3642. Comments are due no later than June 16, 2008.
    Pursuant to 39 U.S.C. 505, Paul L. Harrington is appointed to serve 
as officer of the Commission (Public Representative) to represent the 
interests of the general public in the above-captioned docket.
    It is ordered:
    1. The proceedings under Docket Nos. CP2008-4 and CP2008-5 are 
consolidated. All future filings in the consolidated docket are to be 
made under Docket No. CP2008-5.
    2. As set forth in the body of this order, the Postal Service is 
provided with an opportunity to supplement the materials already filed 
with the Commission. Any supplemental materials that the Postal Service 
wishes to provide are due no later than June 10, 2008.
    3. Comments on issues in this consolidated proceeding are due no 
later than June 16, 2008.
    4. The Commission appoints Paul L. Harrington as Public 
Representative to represent the interests of the general public in this 
proceeding.
    5. The Secretary shall arrange for publication of this notice and 
order in the Federal Register.

    By the Commission.
Steven W. Williams,
Secretary.
[FR Doc. E8-12767 Filed 6-5-08; 8:45 am]
BILLING CODE 7710-FW-P