Postal Service Price Changes, 8124-8129 [E9-3781]
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Federal Register / Vol. 74, No. 34 / Monday, February 23, 2009 / Notices
NUCLEAR REGULATORY
COMMISSION
[DOCKET NO. 50–238; NRC–2009–0019]
Nuclear Ship Savannah; Notice of
Public Meeting on the Post Shutdown
Decommissioning Activities Report
jlentini on PROD1PC65 with NOTICES
AGENCY: U.S. Nuclear Regulatory
Commission (NRC).
ACTION: Notice of meeting on the Post
Shutdown Decommissioning Activities
Report (PSDAR) for the Nuclear Ship
Savannah (NS Savannah), Facility
Operating License No. NS–1.
Contact: John T. Buckley, Division of
Waste Management and Environmental
Protection, Office of Federal and State
Materials and Environmental
Management Programs, U.S. Nuclear
Regulatory Commission, Washington,
DC 20555–0001, Telephone: 301–415–
6607 or Toll Free: 800–368–5642, x–
6607, or e-mail john.buckley@nrc.gov.
SUMMARY: The NRC is providing notice
that the NRC staff will conduct a
meeting to discuss and accept
comments on the PSDAR for the NS
Savannah on March 11, 2009, from 7
p.m. to 9 p.m. The meeting will be held
on-board the NS Savannah located at
Pier 13, Canton Marine Terminal, 4601
Newgate Ave., Baltimore, MD 21224.
On December 11, 2008, the U.S.
Department of Transportation—
Maritime Administration (MARAD)
submitted its PSDAR for the NS
Savannah. The PSDAR provides an
overview of MARAD’s proposed
decommissioning activities, schedule,
and costs for the NS Savannah.
The NS Savannah was brought to
power in 1961 and removed from
service in 1970. Final reactor shutdown
occurred in November 1970 and
defueling was completed in fall 1971. In
1975 the NS Savannah was
‘‘mothballed.’’ NRC issued a
‘‘possession—only’’ license for the NS
Savannah in 1976. The NS Savannah
was in a mothballed status from 1976 to
2006. In 2006, MARAD made the
decision to place the ship in extended
SAFSTOR until the budget could
support decommissioning and license
termination. MARAD submitted the
PSDAR as part of its SAFSTOR
compliance program.
FURTHER INFORMATION: The PSDAR is
available for public viewing at the
NRC’s Public Document Room (PDR) or
electronically through the NRC’s
Agencywide Documents Access and
Management System (ADAMS) with
Accession No. ML083500100.
Documents may also be examined, and/
or copied for a fee, at the PDR, located
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at One White Flint North, 11555
Rockville Pike (first floor), Rockville,
Maryland. Publicly available records
will be accessible electronically from
the ADAMS Public Library component
on the NRC Web site, https://
www.nrc.gov (the Public Electronic
Reading Room).
Persons who do not have access to
ADAMS or who encounter problems in
accessing the documents located in
ADAMS should contact the NRC PDR
Reference staff by telephone at 1 (800)
397–4209, or (301) 415–4737, or by email at pdr.resource@nrc.gov.
Dated at Rockville, Maryland, this 17th day
of February 2009.
For the U.S. Nuclear Regulatory
Commission
Timothy O’Hara,
Chief, Reactor Decommissioning Branch,
Decommissioning and Uranium Recovery
Licensing Directorate, Division of Waste
Management and Environmental Protection,
Office of Federal and State Materials and
Environmental Management Programs.
[FR Doc. E9–3749 Filed 2–20–09; 8:45 am]
BILLING CODE 7590–01–P
NUCLEAR REGULATORY
COMMISSION
[NRC–2008–0472]
Notice of Availability of the Final
Interim Staff Guidance COL/ESP–ISG–
004 on the Definition of Construction
and on Limited Work Authorizations;
Correction
AGENCY: Nuclear Regulatory
Commission.
ACTION: Notice of availability;
correction.
SUMMARY: This document corrects a
notice appearing in the Federal Register
on February 17, 2009 (74 FR 7488), that
announced the availability of Final
Interim Staff Guidance (ISG) COL/ESP–
ISG–004. This action is necessary to
correct the Agencywide Documents
Access Management System (ADAMS)
accession number for the ISG.
FOR FURTHER INFORMATION CONTACT: Ms.
Nanette V. Gilles, Division of New
Reactor Licensing, Office of the New
Reactors, U.S. Nuclear Regulatory
Commission, Washington, DC, 20555–
0001; telephone 301–415–1180 or e-mail
at Nanette.Gilles@nrc.gov.
SUPPLEMENTARY INFORMATION: On page
7488, in the first column, third line, the
ISG’s COL/ESP–ISG–004 ADAMS
accession number is corrected to read
from ‘‘ML090060897’’ to
‘‘ML08290729.’’
Dated at Rockville, Maryland, this 17th day
of February 2009.
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For the Nuclear Regulatory Commission.
David B. Matthews,
Director, Division of New Reactor Licensing,
Office of New Reactors.
[FR Doc. E9–3757 Filed 2–20–09; 8:45 am]
BILLING CODE 7590–01–P
POSTAL REGULATORY COMMISSION
[Docket No. R2009–2; Order No. 180]
Postal Service Price Changes
Postal Regulatory Commission.
Notice.
AGENCY:
ACTION:
SUMMARY: The Commission is
conducting a review of the Postal
Service’s planned rate adjustments for
essentially all products in the market
dominant category, which includes the
First-Class stamp, and limited
classification changes. The adjustments
are generally based on a method that
relies on a price cap tied to annual
changes in the consumer price index
and, in some instances, also draws on
unused or ‘‘banked’’ pricing authority.
This document invites public comment
and discusses other matters related to
the Commission’s review and the Postal
Service’s anticipated implementation of
new rates.
DATES: March 2, 2009: Deadline for
public comments.
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,
202–789–6820 and
stephen.sharfman@prc.gov.
Regulatory
History, 73 FR 9363 (February 20, 2008).
SUPPLEMENTARY INFORMATION:
I. Overview
A. Background
On February 10, 2009, the United
States Postal Service (Postal Service)
filed with the Postal Regulatory
Commission (Commission) a document
captioned United States Postal Service
Notice of Market-Dominant Price
Adjustment (Adjustment Notice). This
document was filed pursuant to 39
U.S.C. 3622 and 39 CFR part 3010. It
announces the Postal Service’s intention
to adjust rates for all market dominant
products in amounts that are, on
average, within a 3.8 percent statutory
price cap plus the unused pricing
authority remaining from Docket No.
R2008–1 for each class. The planned
price adjustment for most market
dominant products will take effect on
May 11, 2009. The exceptions are new
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prices related to a full-service option of
Intelligent Mail which will take effect
on November 29, 2009, and
Personalized Stamped Envelopes
options which will have their effective
dates established by separate notice.
The Commission notes that the average
change, in some instances, includes
significant percentage changes within a
class. The Commission further notes
that several worksharing discounts vary
significantly from passing through 100
percent of avoided costs.
The Adjustment Notice also addresses
several mail classification changes the
most sweeping of which provides a
price differential for mailers who use
the full-service option of Intelligent
Mail and comply with mail preparation
requirements. The Postal Service plans
a November 29, 2009 price reduction of
0.3 cents for full-service option
Intelligent Mail within First-Class Mail,
and 0.1 cents for full-service option
Intelligent Mail within Standard Mail,
Package Services, and Periodicals Mail.1
Address Change Service (ACS) will be
included with the full-service option of
Intelligent Mail for Periodicals,
providing the additional benefit of not
having to incur the separate cost of ACS
which is required for all Periodicals.
Mailers can avail themselves of this
price differential if they meet specific
criteria, including a requirement that
each piece have a unique Intelligent
Mail barcode, be part of a mailing with
unique container labels, and use
electronic documentation.
Additional class-specific
classification changes also are planned.
A minor classification change is made
in First-Class Mail to separate the
current ‘‘Canada and Mexico’’
Outbound Single-Piece First-Class Mail
International Postcard category into two
distinct price categories.
Standard Mail will be subject to an
additional 7 cents per-piece charge for
mailings not compliant with the Move
Update requirements. The Postal
Service is planning an optional feature
called ‘‘Saturation Mail Volume
Program’’ to encourage new Saturation
mail volumes. It is revising pricing
categories for Standard Mail Not FlatMachinable (NFMs)/Parcels and slightly
modifying Domestic Mail Manual
eligibility rules for those categories.
The Postal Service plans to change the
Single-Piece Parcel Post price structure
by merging the Intra-BMC [bulk mail
center] and Inter-BMC prices into a
single Parcel Post price category and
1 Although the Adjustment Notice does not
discuss a price differential for Package Services,
Appendix A at 49 and 51 indicates the availability
of the price differential for certain Bound Printed
Matter Flats.
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deleting the non-machinable surcharge.
Also descriptions for Zones 1–8 are
added to the Mail Classification
Schedule.
Within special services, the Postal
Service plans to modify Confirm by
adding a new Bronze subscription level,
and make changes to the Gold and
Platinum levels to differentiate between
mail owners and mail agents. The
Stamped Envelopes product is
supplemented with premium options
available for personalized stamped
envelopes. Finally, changes are made to
Address Correction Service to
incorporate the full-service option of
Intelligent Mail.
B. Context
The filing of the Adjustment Notice
marks the second instance in which the
Postal Service is exercising its authority,
under the Postal Accountability and
Enhancement Act of 2006 (PAEA) and
related Commission rules, to make an
annual adjustment in rates for products
in the market dominant category under
a new streamlined, index-based
approach. The market dominant product
category is one of two business lines
established in the PAEA. It includes,
generally, First-Class Mail letters and
sealed parcels; First-Class Mail cards;
Periodicals; Standard Mail; Single-Piece
Parcel Post; Media Mail; Bound Printed
Matter; Library Mail; Special Services;
and Single-Piece International Mail. 39
U.S.C. 3621. The second business line is
the competitive products category,
which includes Priority Mail; Expedited
Mail; Bulk Parcel Post; and Bulk
International Mail. Specific market
dominant product and the competitive
product lists are published at 39 CFR
Appendix A to Subpart A of Part 3020—
Mail Classification Schedule. Rate and
fee adjustments for each business
category are governed by different
procedures.
C. Statutory Price Cap
The statutory price cap limits the
increase in rates for market dominant
products to the change in the CPI–U for
the past 12 months, calculated under
Commission rules implementing the
PAEA.2 For the 12 months ending
December 2008, the price cap is 3.8
percent.
II. Impact on Mailers
Summary. The planned adjustments,
summarized in terms of average
percentage change at the class level, are
First-Class Mail, 3.771 percent;
2 The reference to CPI–U is to the Department of
Labor’s Consumer Price Index for All Urban
Consumers.
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Standard Mail, 3.781 percent;
Periodicals, 3.966 percent; Package
Services, 3.800 percent; and Special
Services, 3.837 percent. The unused
pricing authority remaining from Docket
No. R2008–1 by class are First-Class
Mail, 0.014 percent; Standard Mail,
0.062 percent; Periodicals, 0.176
percent; Package Services, 0.025
percent; and Special Services, 0.052
percent. When combined with the
current 3.8 percent statutory price cap,
the total price adjustment authority by
class are First-Class Mail, 3.814 percent;
Standard Mail, 3.862 percent;
Periodicals, 3.976 percent; Package
Services, 3.825 percent; and Special
Services, 3.852 percent. As calculated
by the Postal Service, each percentage
adjustment is below the allowable total
price adjustment authority. Adjustment
Notice at 3–5.
The First-Class stamp. The planned
change in the First-Class postage stamp,
which is widely used by the general
public for eligible mail weighing 1
ounce or less, is an increase of 2 cents.
This raises the rate from its current level
of 42 cents to 44 cents. The additional
ounce price and the non-machinable
surcharge will be held at current levels.
Id. at 12.
The Forever Stamp. As a result of
Docket No. R2006–1, the Postal Service
introduced a First-Class Mail ‘‘Forever
Stamp.’’ The price of this stamp at the
time of its introduction was 41 cents,
which equated to the Docket No.
R2006–1 price for the first ounce of
single-piece First-Class Mail. The price
of this stamp increased to 42 cent as a
result of the Docket No. R2008–1 price
adjustment. This stamp will continue to
be sold for 42 cents through May 10,
2009, and will cover postage for mailing
single-piece First-Class Mail even after
the anticipated price increase to 44
cents on May 11, 2009. On and after
May 11, under the planned adjustments,
a new purchase of a Forever Stamp will
be at the 44-cent rate. These stamps, like
the original issue, will continue to cover
the mailing of 1-ounce single-piece
First-Class Mail, regardless of future
increases in the underlying rate.
III. Unused Rate Adjustment Authority
The Postal Service states that the
unused price adjustment authority
remaining following this price change is
accordance with the following schedule.
TABLE III–1
Class
First-Class Mail ...............................
Standard Mail .................................
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Percent
change
0.043
0.081
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Federal Register / Vol. 74, No. 34 / Monday, February 23, 2009 / Notices
rate adjustments. It notes that this
review is conducted under the legal
Percent authority of 39 U.S.C. 3622.
Class
change
The Commission’s intention is to
conduct this review by bringing its
Periodicals ......................................
0.010 judgment to bear on the basis of the
Package Services ...........................
0.025
Special Services .............................
0.015 material presented in the Adjustment
Notice, the objectives, factors and
requirements of the PAEA, including
Id. at 6.
referenced postal policies, Commission
IV. Consistency of Adjustment Notice
rules, and public comments.
With Commission Rules
Third, the Commission issues this
notice addressing the Adjustment
Relationship of streamlined
procedures to intended implementation Notice and related matters, in
conformance with 39 CFR 3010.13. It
date. Commission rules implementing
also directs the Secretary of the
the PAEA require the Postal Service to
Commission to arrange for prompt
file notice of its intention to adjust
publication of this notice and order in
market dominant rates at least 45 days
the Federal Register. It appoints
prior to the intended implementation
Kenneth E. Richardson, Pamela A.
date. The Commission notes, in this
Thompson, and William C. Miller to
instance, that the Postal Service is
represent the interests of the general
providing more than the minimum
public in conformance with 39 CFR
amount of notice, given that the
3010.13(a)(4).
anticipated effective date is May 11,
Public comment period; focus of
2009.
comments. The Commission provides a
V. Commission Action
20-day comment period starting from
the date of the filing of the Adjustment
In Docket No. RM2007–1, the
Notice in conformance with 39 CFR
Commission developed a set of
3010.13(a)(5). The comment period
procedures to carry out its review of an
extends through close of business on
adjustment notice in accordance with
March 2, 2009. Rule 3010.13(b) provides
the PAEA and pertinent provisions of
that public comments should focus
the Administrative Procedure Act.
primarily on whether planned rate
Pursuant to these procedures, the filing
adjustments comply with the following
of an adjustment notice triggers a
mandatory requirements of 39 U.S.C.
requirement that the Commission
chapter 36, subchapter 1, including:
establish a formal docket to review the
consistency of the planned adjustments
(1) Whether the planned rate adjustments
with regulations that subsume legal
measured using the formula established in
provisions, policy issues, and technical
section 3010.23(b) are at or below the annual
limitation established in section 3010.11; and
matters. Requirements related to public
(2) Whether the planned rate adjustments
notice, official publication, public
measured using the formula established in
representation, a public comment
section 3010.23(b) are at or below the
period, and other matters also attach to
limitations established in section 3010.28.
the review.
Method for filing comments. The
The Commission takes several steps at
formal intervention process set out in
this time in conformance with these
the Commission’s rules does not apply
requirements. First, it has posted the
in this type of docket. Instead,
Postal Service’s Adjustment Notice on
interested persons are to submit
its Web site, https://www.prc.gov. It also
comments electronically via the
has made the Adjustment Notice
Commission’s Filing Online system. The
available for copying and inspection
during regular business hours (8 a.m. to Commission will provide assistance to
anyone not familiar with this method of
4:30 p.m.) at the Commission, 901 New
York Avenue, NW., Suite 200,
filing. Those seeking assistance should
Washington, DC 20268–0001. Any
contact the Docket Section at 202–789–
subsequent Postal Service filings in this 6846.
Additional procedural steps;
docket, along with any written
timetable. Rule 3010.13(c) provides that
comments and filings by others, also
the Commission, within 14 days of the
will be posted on the Commission’s
conclusion of the public comment
Web site and made available for public
period, will determine, at a minimum,
inspection and copying at the
whether the planned rate adjustments
Commission during regular business
are consistent with the annual
hours.
Second, the Commission establishes
limitation set forth in section 3010.11;
the requisite formal docket, captioned
the limitations set forth in section
Docket No. R2009–2, Notice of Price
3010.28; and 39 U.S.C. 3626, 3627 and
Adjustment, to conduct its mandatory
3629, and issue an order announcing its
review of the Postal Service’s planned
findings. In this instance, the deadline
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for the Commission’s determination is
March 16, 2009. If the planned rate
adjustments are found consistent with
applicable law by the Commission, they
may take effect pursuant to appropriate
action by the Postal Service. In the event
the Commission determines that
planned rate adjustments are not
consistent with applicable
considerations, additional procedures
apply. See 39 CFR 3010.13(c) through
3010.13(i).
VI. Summary of Postal Service
Adjustment Notice
Background. Commission rule
3010.14 requires the Postal Service to
include certain explanatory and
supporting information in each
adjustment notice, but leaves
organization of the notice and
presentation of the requisite material to
the discretion of the Postal Service. The
purpose of the information the Postal
Service provides is to facilitate
expeditious review of the consistency of
the adjustment notice with pertinent
considerations.
Organization of adjustment notice.
The Adjustment Notice in this docket
consists of an introductory section;
three sections designated as parts; three
appendices; and five attachments.
Introductory section. The Postal
Service identifies the planned effective
date as May 11, 2009 for most price
adjustments. It states that the new prices
related to a full-service option of
Intelligent Mail will take effect on
November 29, 2009, and the
Personalized Stamped Envelopes
options will have their effective dates
established by separate notice. It also
represents, in conformance with the
notice requirements of 39 CFR
3010.14(a)(3), that it will issue public
notice of the planned rate changes at
least 45 days before the effective date
via several means in addition to its
Adjustment Notice. Specifically, it
states that this includes issuing notice of
the price changes, on the same day of its
filing with the Commission, on the
Postal Service’s Web site (https://
www.usps.com), the Postal Explorer
Web site (https://www.pe.usps.com), the
DMM [Domestic Mail Manual]
Advisory, and the P&C [Producers and
Consumers] Weekly; and a press release
announcing the changes. The Postal
Service also states that it plans to
provide public notice of the price
changes in future issues of the PCC
[Postal Customer Council] Insider,
MailPro (March/April issue), the Postal
Bulletin, and Federal Register. Id. at 1–
2.
The Postal Service identifies Joseph
D. Moeller, Manager of Pricing, as the
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Postal Service official who will be
available to provide prompt responses
to requests for clarification from the
Commission. In the remainder of the
Adjustment Notice, it provides
supporting technical information and
justifications, including workpapers
where applicable. 39 CFR 3010.13(a)(1),
3010.13(a)(3), 3010.13(a)(4), and
3010.14(b). Id. at 2.
Part I. The Postal Service represents
that the material presented in part I,
captioned Price Cap Compliance,
complies with 39 CFR 3010.14(b)(1)
through (4) by identifying the amount of
the applicable price cap; the amount of
any unused rate (price) adjustment
authority available for each class of
mail; the percentage change in prices for
each class of mail; and the amount of
any unused rate adjustment authority
generated by this price change. Id.
Part II. The Postal Service represents
that the material presented in part II,
captioned Description of the Prices,
responds to 39 CFR 3010.14(b)(7) and
(8). These rules require the Postal
Service to discuss how the planned
prices ‘‘help achieve’’ the objectives of
section 3622(b) and ‘‘properly take into
account’’ the factors of section 3622(c);
and how the planned prices are
consistent with sections 3626, 3627 and
3629. In addition, the Postal Service
discusses the workshare discounts
included within the planned price
adjustments as required by 39 CFR
3010.14(b)(5) through (6). Id. at 6–7.
Part III. The Postal Service represents
that part III, captioned MCS [Mail
Classification Schedule] Product
Description Changes, responds to the
requirement in 39 CFR 3010.14(b)(9)
that the instant notice include all the
changes to the product descriptions
within the MCS that are necessitated by
the planned rate adjustments. These
changes are presented based on draft
MCS language that is being developed
by the Commission in cooperation with
the Postal Service. The draft MCS will
be the subject of a future rulemaking,
which will include the opportunity for
public comment. Id. at 45.
Appendices. The Adjustment Notice
is accompanied by three appendices.
Appendix A provides the schedules of
new prices and classification changes in
Mail Classification Schedule format;
Appendix B provides workshare
discounts, cost differentials, and
passthroughs; and Appendix C provides
the price cap calculation.
Attachments. The attachments consist
of workbooks the Postal Service
prepared to demonstrate that the prices
identified in the appendices comply
with the price cap. The five attachments
are identified as USPS–R2009–2/1: Cap
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Compliance for First-Class Mail Price
Changes; USPS–R2009–2/2: Standard
Mail Cap Compliance; USPS–R2009–2/
3: Periodicals Cap Compliance; USPS–
R2009–2/4: Package Services Cap
Compliance; and USPS–R2009–2/5:
Special Services Cap Compliance.
VII. Class-Specific Summary of Price
Adjustments and Classification Changes
A. First-Class Mail
The Postal Service identifies six FirstClass Mail products: Single-Piece
Letters/Postcards; Presorted Letters/
Postcards; Flats, Parcels; Outbound
Single-Piece First-Class Mail
International; and Inbound Single-Piece
First-Class Mail International. The
planned price changes for these
products, in percentage terms, range
from 2.567 percent to 4.616 percent.
Product-specific changes appear in the
following table.
TABLE VII–1
Percent
change
Product
Single-Piece Letters & Cards .........
Presort Letters & Cards ..................
Flats ................................................
Parcels ............................................
International * ..................................
Overall ............................................
4.616
3.080
3.882
2.567
4.136
3.771
* This includes Inbound and Outbound Single-Piece First-Class Mail International.
Id. at 11–12.
The Postal Service states that a major
driver of the overall increase for FirstClass Mail is the price of a stamp for 1ounce, single-piece letters. It plans to
increase this price by 2 cents (4.8
percent). This increase also reflects the
integer (cent) rounding constraint
traditionally applied to this price. The
Postal Service asserts that the additional
ounce price and the non-machinable
surcharge are held at current levels, thus
tempering the increase caused by the 2cent increase on the first-ounce price for
letters. Id. at 12.
Presort Letters and Cards. The Postal
Service plans less-than-average
increases in automation prices to help
maintain letter volume. In addition, the
Postal Service will make optional some
requirements for presortation of
automation First-Class Mail Id. at 13.
Classification changes. To facilitate
the adoption of the full-service option of
Intelligent Mail the Postal Service has
added a price differential to the MCS for
customers who use this option with
First-Class Mail presorted letters and
flats. The price when using this option
is reduced by 0.3 cents from what
otherwise would have been paid. The
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specific mail preparation requirements
for this classification have not been
fully specified. Id. at 14.
B. Standard Mail
The Postal Service identifies six
Standard Mail products: Letters; Flats;
Parcels and Not-Flat Machinables
(NFMs); High Density and Saturation
Letters; High Density and Saturation
Flats and Parcels; and Carrier Route
Letters, Flats, and Parcels. The planned
price changes for these products range
from 1.248 percent to 16.425 percent.
Product-specific changes appear in the
following table.
TABLE VII–2
Product
Letters ...........................................
Flats ..............................................
Parcels and NFMs ........................
High Density/Saturation Letters ....
High Density/Saturation Flats and
Parcels ......................................
Carrier Route Letters, Flats and
Parcels ......................................
Overall ..........................................
Percent
change
3.829
2.306
16.425
1.248
2.233
4.310
3.781
Id.
The Postal Service states that the
price change for the Flats product is
lower than the price cap (2.306 percent)
to moderate the increase for catalog
mailers, whose volume fell considerably
in FY 2008. Although FY 2008 data
shows a cost coverage below 100
percent, the Postal Service asserts it is
mitigating the price increase to maintain
the viability of the catalog industry. It
also is either reducing or limiting the
increase of the pound rate category for
the Flats product. Id. at 15.
The Postal Service notes that it is
working to improve contribution for the
Parcels and NFMs product. It plans a
16.425 percent average increase.
However, incentives to more efficient
transportation and entry practices
dropship deeper into the system are
enhanced to encourage. Id. at 16.
Classification changes. The Postal
Service has planned new price
incentives targeted at encouraging new
Saturation mail volumes. The incentives
will reduce the price for new Saturation
letters mailed during defined periods by
3.7 cents (2.2 cents for nonprofit
Saturation letters). Id.
The Postal Service is revising the
pricing categories for Standard Mail
Parcels/NFMs. There no longer will be
a separate price for machinable parcels,
irregular parcels, and NFMs presorted to
5-digit and entered at origin. For such
pieces, the lowest price available will be
the BMC price. Separate prices also will
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be eliminated for origin entered SCF
[sectional center facility] irregular
parcels and NFMs, DSCF [destination
section center facility] entered BMC
irregular parcels and NFMs, and DSCF
and DBMC [destination bulk mail
center] entered Mixed BMC irregular
parcels and NFMs. Id. at 17.
To facilitate the adoption of the fullservice option of Intelligent Mail, the
Postal Service has added a price
differential to the MCS for customers
who use this option with Standard Mail.
The price when using this option is
reduced by 0.1 cents from what
otherwise would have been paid. The
specific mail preparation requirements
for this classification have not been
fully specified. Id. at 17–18.
The Postal Service changed mail
preparation standards in November
2008 to require Standard Mail
customers to use an approved Move
Update method. Customers not
complying with the Move Update
standard will be subject to a charge of
7 cents per piece. Id. at 18.
C. Periodicals
The Postal Service identifies two
Periodicals products: Within County
Periodicals and Outside County
Periodicals. The planned price changes
are relatively close and both are below
the cap. Product-specific changes
appear in the following table.
TABLE VII–3
Percent
change
Product
jlentini on PROD1PC65 with NOTICES
Outside County ...............................
Within County .................................
Overall ............................................
3.973
3.802
3.966
Id. at 19.
The Postal Service asserts that the
Periodicals class has been challenging
in terms of cost coverage. The Postal
Service states that Periodicals is the
only class of mail failing to cover
attributable costs in FY 2008. It also is
cognizant of the value of the class to the
public. It contends the adjusted prices
are designed to balance the impact on
publications, while taking advantage of
the new price structure that will
improve the efficiency of the product.
Id.
Classification changes. To facilitate
the adoption of the full-service option of
Intelligent Mail, the Postal Service has
added a price differential for customers
who use this option with Periodicals.
The per-piece charge when using this
option is reduced by 0.1 cents from
what otherwise would have been paid.
The specific mail preparation
VerDate Nov<24>2008
16:31 Feb 20, 2009
Jkt 217001
requirements for this classification have
not been fully specified. Id. at 20.
Currently, Periodicals are required to
use ACS and pay a fee of 25 cents per
address change. By adopting the fullservice option of Intelligent Mail, a
publication also qualifies for no-fee
ACS, which, in itself, is a substantial
incentive to use the full-service option.
Id.
E. Special Services
The Postal Service identifies 11
Special Services products: Ancillary
Services; International Ancillary
Services; Address List Services; Caller
Service; Change-of-Address Credit Card
Authentication; Confirm; International
Reply Coupon Service; International
Business Reply Mail Service; Money
Orders; Post Office Box Service; and
Premium Forwarding Service. The
D. Package Services
planned overall increase is 3.837
The Postal Service identifies five
percent. Id. at 22–23.
Package Services products: Single-Piece
The Postal Service states that fee
Parcel Post; Bound Printed Matter Flats;
increases for many Special Services are
Bound Printed Matter Parcels; Media
Mail/Library Mail; and Inbound Surface generally designed to be close to the
percentage increase in CPI–U, while
Parcel Post (at Universal Postal Union
(UPU) rates). The planned price changes maintaining consistency with historical
rounding constraints. Id. at 23. It says
range from 2.0 percent reduction to an
that Special Services affected by this
increase of 7.468 percent. Productspecific changes appear in the following approach include Business Reply Mail,
and several Ancillary Services,
table.
including Certified Mail; Address List
Services; Account Maintenance;
TABLE VII–4
Application and Mailing Permit fees;
Parcel Airlift Service; Post Office Boxes;
Percent
Product
Return Receipt (green card); and
change
Shipper Paid Forwarding. Id. The Postal
Single-Piece Parcel Post ..............
4.450 Service states the greater increases for
BPM Flats .....................................
¥2.000 Electronic Return Receipt and Return
BPM Parcels .................................
2.504
Receipt After Mailing reflect their high
Media Mail and Library Mail .........
7.468
Inbound Surface Parcel Post .......
* 5.027 value of service. Id., n.17.
Address Correction Service (ACS).
Overall ..........................................
3.800
The Postal Service states that a
* The Postal Service notes that prices for Inbound (International) Surface Parcel Post (at significant portion of ACS will be
UPU rates) are determined by the Universal incorporated into the full-service option
Postal Union and are not under its (the Postal of Intelligent Mail. It notes that manual
Service’s) control. Id. at 20, n.16.
fees are not increased while Automated
and Electronic fees have increases
Id.
exceeding the cap. Id.
The Postal Service states that its
Certificate of Mailing. The Postal
overall goal in Package Services is to
improve the profitability of the product. Service asserts that for Certificate of
Mailing, it designed fees for individual
It notes that in FY 2008, Media Mail,
pieces to increase by a percentage as
Library Mail, and Single-Piece Parcel
close to the cap percentage as possible,
Post failed to cover costs, although the
consistent with the historical nickel
class as a whole had a positive cost
coverage. Because Bound Printed Matter rounding constraint for this special
service. However, it increases fees for
flats already have a healthy cost
Certificates of Mailing for bulk pieces
coverage, the Postal Service plans on
slightly above the cap to reflect the low
reducing the average price for Bound
Printed Matter flats in order to offset the price compared to a high value of
service. Id.
needed higher price increases for the
Confirm. The Postal Service plans a
lower performing products. Id. at 21.
classification change for Confirm by
Classification changes. The Postal
Service plans to change the Single-Piece adding a new ‘‘Bronze’’ price tier, and
new segments within the two existing
Parcel Post price structure by merging
tiers which differentiate between mail
the Intra-BMC and Inter-BMC prices to
create a single price at each weight level owners and mail agents. Id. at 24.
in each zone. The separate price for the
Insurance. The Postal Service states
Local zone is being merged with the
that the planned above-average price
Zones 1 and 2 prices. Id. at 21–22.
increases for the $50.01 to $100 fee and
The current price structure for Single- the $100.01 to $200 fee are intended to
Piece Parcel Post includes a surcharge
smooth the price relationships among
for non-machinable parcels. The Postal
the various increments. It says the
Service is eliminating this surcharge
increase in the incremental fee reflects
and incorporating its effect into the base the increased value of service provided
price. Id. at 22.
as the item’s value increases. Id.
PO 00000
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Sfmt 4703
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Federal Register / Vol. 74, No. 34 / Monday, February 23, 2009 / Notices
jlentini on PROD1PC65 with NOTICES
Registered Mail. The Postal Service
plans to increase fees for Registered
Mail by an average of 8.7 percent to
reflect the high value of service offered,
and to improve the very low cost
coverage. Id.
Stamped Envelopes. The Postal
Service plans to increase the fees for
single-piece stamped envelopes by one
cent. It says it keeps the fees for plain
envelopes in packs of 500 as close to the
cap as possible within the rounding
constraints. Fees for personalized
envelopes, however, increase by more
than the cap to reflect the convenience
this service provides. The Postal Service
states that it is enhancing the value of
service by introducing new envelope
options, some of which will be available
on a date later than May 11, 2009. Id.
at 24–25.
Stamped Cards. The Postal Service
does not plan to increase the fee for
single Stamped Cards. Id. at 25.
Bulk Parcel Return Service. The Postal
Service states that the increase in the
per-piece fee is similar to the general
increase for Standard Mail parcels. Id.
Restricted Delivery, Collect on
Delivery Notice of Nondelivery and
Alteration of Charges, and Money Order
inquiries. The Postal Service says the fee
increases for these services reflect their
high value of service. Id.
International Special Services. The
Postal Service says its general approach
to international special services has
been to set fees for those services that
are similar to the fees for the equivalent
domestic service, and that it has
followed this approach for International
Certificates of Mailing; International
Registered Mail; International Return
Receipts; and International Restricted
Delivery. Id.
VIII. Compliance With Preferred Mail
Requirements
The Postal Service explains its
compliance with section 3626, which
sets forth pricing requirements for
certain preferred categories of mail. Id.
at 25–27. It contends that the price
adjustment continues to recognize the
preferential status of Within County
Periodicals. 39 U.S.C. 3626(a)(3). The
Postal Service states that the rate
adjustments maintain the rate
preference for Nonprofit and Classroom
pieces at a 5 percent discount on all
components of postage except for
advertising pounds and ride-along
postage. 3626(a)(4)(A)–(B). The Postal
Service continues to provide Science of
Agriculture Periodicals with advertising
pound rates for DDU [destination
delivery unit], DSCF, DADC [destination
area destination center] and Zones 1 &
2 that are 75 percent of the advertising
VerDate Nov<24>2008
16:31 Feb 20, 2009
Jkt 217001
pound rates applicable to regular
Periodicals. 39 U.S.C. 3626(a)(5).
Nonprofit Standard Mail prices are set
to achieve a revenue per-piece ratio of
60.2 percent of the commercial average
revenue per piece. 39 U.S.C. 3626(a)(6).
The Postal Service states that it has set
the prices for Library Mail to be, as
nearly as practical, equal to 95 percent
of the prices for Media Mail. 39 U.S.C.
3626(a)(7). Finally, the Postal Service
states that it implemented a new
‘‘limited circulation’’ discount in 2008,
which gives Outside County pieces of
Periodicals having fewer than 5,000
Outside County pieces and at least one
Within County piece a discount
equivalent to the Nonprofit and
Classroom Periodicals discount.
IX. Compliance With Workshare
Discount Rules
The Postal Service explains that
section 3622(e) requires the Postal
Service to justify any worksharing
discounts that exceed 100 percent of
avoided costs by reference to the
exceptions specified in that provision.
Id. at 27. In addition, 39 CFR
3010.14(b)(6) requires the Postal Service
to explain any discount set substantially
below 100 percent of avoided costs. Id.
at 29. The workshare discounts, cost
differentials, and passthroughs are
shown in Appendix B. The
accompanying explanations are
provided on a class-by-class basis in the
Adjustment Notice at pages 29–45.
X. Mail Classification Schedule Product
Description Changes
The Postal Service addresses 39 CFR
3010.14(b)(9) in part III of its
Adjustment Notice. Id. at 45–47. This
rule requires that the Adjustment Notice
include all the changes to the product
descriptions within the MCS that are
necessitated by the planned price
adjustments. These changes are
presented based on draft MCS language
that is being developed by the
Commission in cooperation with the
Postal Service. The draft MCS will be
the subject of a future rulemaking,
which will include the opportunity for
public comment. The Postal Service
provides the proposed MCS revisions in
Appendix A.
Part III of the Adjustment Notice also
summarizes the classification changes
identified above in this notice and
previously in the Adjustment Notice. It
also identifies a further Outbound
Single-Piece First-Class Mail
International classification change
which splits the current Canada and
Mexico Postcard category into two
distinct price categories. Id. at 46.
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8129
XI. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket
No. R2009–2 to consider the planned
price adjustments in rates and fees for
market dominant postal products and
services identified in the Postal
Service’s February 10, 2009 Adjustment
Notice.
2. Interested persons may submit
comments on the planned price
adjustments. Comments are due March
2, 2009.
3. Pursuant to 39 U.S.C. 505, the
Commission appoints Kenneth E.
Richardson, Pamela A. Thompson, and
William C. Miller to represent the
interests of the general public in this
proceeding.
4. The Commission directs the
Secretary of the Commission to arrange
for prompt publication of this notice in
the Federal Register.
Dated February 12, 2009.
By the Commission.
Steven W. Williams,
Secretary.
[FR Doc. E9–3781 Filed 2–20–09; 8:45 am]
BILLING CODE 7710–FW–P
RAILROAD RETIREMENT BOARD
Agency Forms Submitted for OMB
Review, Request for Comments
SUMMARY: In accordance with the
Paperwork Reduction Act of 1995 (44
U.S.C. Chapter 35), the Railroad
Retirement Board (RRB) is forwarding
an Information Collection Request (ICR)
to the Office of Information and
Regulatory Affairs (OIRA), Office of
Management and Budget (OMB) to
request a revision to the following
collection of information: 3220–0198,
Request for Internet Services. Our ICR
describes the information we seek to
collect from the public. Review and
approval by OIRA ensures that we
impose appropriate paperwork burdens.
The RRB uses a Personal
Identification Number (PIN)/Password
system that allows RRB customers to
conduct business with the agency
electronically. As part of the system, the
RRB collects information needed to
establish a unique PIN/Password that
allows customer access to RRB Internetbased services. The information
collected is matched against records of
the railroad employee that are
maintained by the RRB. If the
information is verified, the request is
approved and the RRB mails a Password
Request Code (PRC) to the requestor. If
the information provided cannot be
verified, the requestor is advised to
E:\FR\FM\23FEN1.SGM
23FEN1
]]>Agencies
[Federal Register Volume 74, Number 34 (Monday, February 23, 2009)]
[Notices]
[Pages 8124-8129]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-3781]
=======================================================================
-----------------------------------------------------------------------
POSTAL REGULATORY COMMISSION
[Docket No. R2009-2; Order No. 180]
Postal Service Price Changes
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Commission is conducting a review of the Postal Service's
planned rate adjustments for essentially all products in the market
dominant category, which includes the First-Class stamp, and limited
classification changes. The adjustments are generally based on a method
that relies on a price cap tied to annual changes in the consumer price
index and, in some instances, also draws on unused or ``banked''
pricing authority. This document invites public comment and discusses
other matters related to the Commission's review and the Postal
Service's anticipated implementation of new rates.
DATES: March 2, 2009: Deadline for public comments.
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,
202-789-6820 and stephen.sharfman@prc.gov.
SUPPLEMENTARY INFORMATION: Regulatory History, 73 FR 9363 (February 20,
2008).
I. Overview
A. Background
On February 10, 2009, the United States Postal Service (Postal
Service) filed with the Postal Regulatory Commission (Commission) a
document captioned United States Postal Service Notice of Market-
Dominant Price Adjustment (Adjustment Notice). This document was filed
pursuant to 39 U.S.C. 3622 and 39 CFR part 3010. It announces the
Postal Service's intention to adjust rates for all market dominant
products in amounts that are, on average, within a 3.8 percent
statutory price cap plus the unused pricing authority remaining from
Docket No. R2008-1 for each class. The planned price adjustment for
most market dominant products will take effect on May 11, 2009. The
exceptions are new
[[Page 8125]]
prices related to a full-service option of Intelligent Mail which will
take effect on November 29, 2009, and Personalized Stamped Envelopes
options which will have their effective dates established by separate
notice. The Commission notes that the average change, in some
instances, includes significant percentage changes within a class. The
Commission further notes that several worksharing discounts vary
significantly from passing through 100 percent of avoided costs.
The Adjustment Notice also addresses several mail classification
changes the most sweeping of which provides a price differential for
mailers who use the full-service option of Intelligent Mail and comply
with mail preparation requirements. The Postal Service plans a November
29, 2009 price reduction of 0.3 cents for full-service option
Intelligent Mail within First-Class Mail, and 0.1 cents for full-
service option Intelligent Mail within Standard Mail, Package Services,
and Periodicals Mail.\1\ Address Change Service (ACS) will be included
with the full-service option of Intelligent Mail for Periodicals,
providing the additional benefit of not having to incur the separate
cost of ACS which is required for all Periodicals. Mailers can avail
themselves of this price differential if they meet specific criteria,
including a requirement that each piece have a unique Intelligent Mail
barcode, be part of a mailing with unique container labels, and use
electronic documentation.
---------------------------------------------------------------------------
\1\ Although the Adjustment Notice does not discuss a price
differential for Package Services, Appendix A at 49 and 51 indicates
the availability of the price differential for certain Bound Printed
Matter Flats.
---------------------------------------------------------------------------
Additional class-specific classification changes also are planned.
A minor classification change is made in First-Class Mail to separate
the current ``Canada and Mexico'' Outbound Single-Piece First-Class
Mail International Postcard category into two distinct price
categories.
Standard Mail will be subject to an additional 7 cents per-piece
charge for mailings not compliant with the Move Update requirements.
The Postal Service is planning an optional feature called ``Saturation
Mail Volume Program'' to encourage new Saturation mail volumes. It is
revising pricing categories for Standard Mail Not Flat-Machinable
(NFMs)/Parcels and slightly modifying Domestic Mail Manual eligibility
rules for those categories.
The Postal Service plans to change the Single-Piece Parcel Post
price structure by merging the Intra-BMC [bulk mail center] and Inter-
BMC prices into a single Parcel Post price category and deleting the
non-machinable surcharge. Also descriptions for Zones 1-8 are added to
the Mail Classification Schedule.
Within special services, the Postal Service plans to modify Confirm
by adding a new Bronze subscription level, and make changes to the Gold
and Platinum levels to differentiate between mail owners and mail
agents. The Stamped Envelopes product is supplemented with premium
options available for personalized stamped envelopes. Finally, changes
are made to Address Correction Service to incorporate the full-service
option of Intelligent Mail.
B. Context
The filing of the Adjustment Notice marks the second instance in
which the Postal Service is exercising its authority, under the Postal
Accountability and Enhancement Act of 2006 (PAEA) and related
Commission rules, to make an annual adjustment in rates for products in
the market dominant category under a new streamlined, index-based
approach. The market dominant product category is one of two business
lines established in the PAEA. It includes, generally, First-Class Mail
letters and sealed parcels; First-Class Mail cards; Periodicals;
Standard Mail; Single-Piece Parcel Post; Media Mail; Bound Printed
Matter; Library Mail; Special Services; and Single-Piece International
Mail. 39 U.S.C. 3621. The second business line is the competitive
products category, which includes Priority Mail; Expedited Mail; Bulk
Parcel Post; and Bulk International Mail. Specific market dominant
product and the competitive product lists are published at 39 CFR
Appendix A to Subpart A of Part 3020--Mail Classification Schedule.
Rate and fee adjustments for each business category are governed by
different procedures.
C. Statutory Price Cap
The statutory price cap limits the increase in rates for market
dominant products to the change in the CPI-U for the past 12 months,
calculated under Commission rules implementing the PAEA.\2\ For the 12
months ending December 2008, the price cap is 3.8 percent.
---------------------------------------------------------------------------
\2\ The reference to CPI-U is to the Department of Labor's
Consumer Price Index for All Urban Consumers.
---------------------------------------------------------------------------
II. Impact on Mailers
Summary. The planned adjustments, summarized in terms of average
percentage change at the class level, are First-Class Mail, 3.771
percent; Standard Mail, 3.781 percent; Periodicals, 3.966 percent;
Package Services, 3.800 percent; and Special Services, 3.837 percent.
The unused pricing authority remaining from Docket No. R2008-1 by class
are First-Class Mail, 0.014 percent; Standard Mail, 0.062 percent;
Periodicals, 0.176 percent; Package Services, 0.025 percent; and
Special Services, 0.052 percent. When combined with the current 3.8
percent statutory price cap, the total price adjustment authority by
class are First-Class Mail, 3.814 percent; Standard Mail, 3.862
percent; Periodicals, 3.976 percent; Package Services, 3.825 percent;
and Special Services, 3.852 percent. As calculated by the Postal
Service, each percentage adjustment is below the allowable total price
adjustment authority. Adjustment Notice at 3-5.
The First-Class stamp. The planned change in the First-Class
postage stamp, which is widely used by the general public for eligible
mail weighing 1 ounce or less, is an increase of 2 cents. This raises
the rate from its current level of 42 cents to 44 cents. The additional
ounce price and the non-machinable surcharge will be held at current
levels. Id. at 12.
The Forever Stamp. As a result of Docket No. R2006-1, the Postal
Service introduced a First-Class Mail ``Forever Stamp.'' The price of
this stamp at the time of its introduction was 41 cents, which equated
to the Docket No. R2006-1 price for the first ounce of single-piece
First-Class Mail. The price of this stamp increased to 42 cent as a
result of the Docket No. R2008-1 price adjustment. This stamp will
continue to be sold for 42 cents through May 10, 2009, and will cover
postage for mailing single-piece First-Class Mail even after the
anticipated price increase to 44 cents on May 11, 2009. On and after
May 11, under the planned adjustments, a new purchase of a Forever
Stamp will be at the 44-cent rate. These stamps, like the original
issue, will continue to cover the mailing of 1-ounce single-piece
First-Class Mail, regardless of future increases in the underlying
rate.
III. Unused Rate Adjustment Authority
The Postal Service states that the unused price adjustment
authority remaining following this price change is accordance with the
following schedule.
Table III-1
------------------------------------------------------------------------
Percent
Class change
------------------------------------------------------------------------
First-Class Mail.............................................. 0.043
Standard Mail................................................. 0.081
[[Page 8126]]
Periodicals................................................... 0.010
Package Services.............................................. 0.025
Special Services.............................................. 0.015
------------------------------------------------------------------------
Id. at 6.
IV. Consistency of Adjustment Notice With Commission Rules
Relationship of streamlined procedures to intended implementation
date. Commission rules implementing the PAEA require the Postal Service
to file notice of its intention to adjust market dominant rates at
least 45 days prior to the intended implementation date. The Commission
notes, in this instance, that the Postal Service is providing more than
the minimum amount of notice, given that the anticipated effective date
is May 11, 2009.
V. Commission Action
In Docket No. RM2007-1, the Commission developed a set of
procedures to carry out its review of an adjustment notice in
accordance with the PAEA and pertinent provisions of the Administrative
Procedure Act. Pursuant to these procedures, the filing of an
adjustment notice triggers a requirement that the Commission establish
a formal docket to review the consistency of the planned adjustments
with regulations that subsume legal provisions, policy issues, and
technical matters. Requirements related to public notice, official
publication, public representation, a public comment period, and other
matters also attach to the review.
The Commission takes several steps at this time in conformance with
these requirements. First, it has posted the Postal Service's
Adjustment Notice on its Web site, https://www.prc.gov. It also has made
the Adjustment Notice available for copying and inspection during
regular business hours (8 a.m. to 4:30 p.m.) at the Commission, 901 New
York Avenue, NW., Suite 200, Washington, DC 20268-0001. Any subsequent
Postal Service filings in this docket, along with any written comments
and filings by others, also will be posted on the Commission's Web site
and made available for public inspection and copying at the Commission
during regular business hours.
Second, the Commission establishes the requisite formal docket,
captioned Docket No. R2009-2, Notice of Price Adjustment, to conduct
its mandatory review of the Postal Service's planned rate adjustments.
It notes that this review is conducted under the legal authority of 39
U.S.C. 3622.
The Commission's intention is to conduct this review by bringing
its judgment to bear on the basis of the material presented in the
Adjustment Notice, the objectives, factors and requirements of the
PAEA, including referenced postal policies, Commission rules, and
public comments.
Third, the Commission issues this notice addressing the Adjustment
Notice and related matters, in conformance with 39 CFR 3010.13. It also
directs the Secretary of the Commission to arrange for prompt
publication of this notice and order in the Federal Register. It
appoints Kenneth E. Richardson, Pamela A. Thompson, and William C.
Miller to represent the interests of the general public in conformance
with 39 CFR 3010.13(a)(4).
Public comment period; focus of comments. The Commission provides a
20-day comment period starting from the date of the filing of the
Adjustment Notice in conformance with 39 CFR 3010.13(a)(5). The comment
period extends through close of business on March 2, 2009. Rule
3010.13(b) provides that public comments should focus primarily on
whether planned rate adjustments comply with the following mandatory
requirements of 39 U.S.C. chapter 36, subchapter 1, including:
(1) Whether the planned rate adjustments measured using the
formula established in section 3010.23(b) are at or below the annual
limitation established in section 3010.11; and
(2) Whether the planned rate adjustments measured using the
formula established in section 3010.23(b) are at or below the
limitations established in section 3010.28.
Method for filing comments. The formal intervention process set out
in the Commission's rules does not apply in this type of docket.
Instead, interested persons are to submit comments electronically via
the Commission's Filing Online system. The Commission will provide
assistance to anyone not familiar with this method of filing. Those
seeking assistance should contact the Docket Section at 202-789-6846.
Additional procedural steps; timetable. Rule 3010.13(c) provides
that the Commission, within 14 days of the conclusion of the public
comment period, will determine, at a minimum, whether the planned rate
adjustments are consistent with the annual limitation set forth in
section 3010.11; the limitations set forth in section 3010.28; and 39
U.S.C. 3626, 3627 and 3629, and issue an order announcing its findings.
In this instance, the deadline for the Commission's determination is
March 16, 2009. If the planned rate adjustments are found consistent
with applicable law by the Commission, they may take effect pursuant to
appropriate action by the Postal Service. In the event the Commission
determines that planned rate adjustments are not consistent with
applicable considerations, additional procedures apply. See 39 CFR
3010.13(c) through 3010.13(i).
VI. Summary of Postal Service Adjustment Notice
Background. Commission rule 3010.14 requires the Postal Service to
include certain explanatory and supporting information in each
adjustment notice, but leaves organization of the notice and
presentation of the requisite material to the discretion of the Postal
Service. The purpose of the information the Postal Service provides is
to facilitate expeditious review of the consistency of the adjustment
notice with pertinent considerations.
Organization of adjustment notice. The Adjustment Notice in this
docket consists of an introductory section; three sections designated
as parts; three appendices; and five attachments.
Introductory section. The Postal Service identifies the planned
effective date as May 11, 2009 for most price adjustments. It states
that the new prices related to a full-service option of Intelligent
Mail will take effect on November 29, 2009, and the Personalized
Stamped Envelopes options will have their effective dates established
by separate notice. It also represents, in conformance with the notice
requirements of 39 CFR 3010.14(a)(3), that it will issue public notice
of the planned rate changes at least 45 days before the effective date
via several means in addition to its Adjustment Notice. Specifically,
it states that this includes issuing notice of the price changes, on
the same day of its filing with the Commission, on the Postal Service's
Web site (https://www.usps.com), the Postal Explorer Web site (https://
www.pe.usps.com), the DMM [Domestic Mail Manual] Advisory, and the P&C
[Producers and Consumers] Weekly; and a press release announcing the
changes. The Postal Service also states that it plans to provide public
notice of the price changes in future issues of the PCC [Postal
Customer Council] Insider, MailPro (March/April issue), the Postal
Bulletin, and Federal Register. Id. at 1-2.
The Postal Service identifies Joseph D. Moeller, Manager of
Pricing, as the
[[Page 8127]]
Postal Service official who will be available to provide prompt
responses to requests for clarification from the Commission. In the
remainder of the Adjustment Notice, it provides supporting technical
information and justifications, including workpapers where applicable.
39 CFR 3010.13(a)(1), 3010.13(a)(3), 3010.13(a)(4), and 3010.14(b). Id.
at 2.
Part I. The Postal Service represents that the material presented
in part I, captioned Price Cap Compliance, complies with 39 CFR
3010.14(b)(1) through (4) by identifying the amount of the applicable
price cap; the amount of any unused rate (price) adjustment authority
available for each class of mail; the percentage change in prices for
each class of mail; and the amount of any unused rate adjustment
authority generated by this price change. Id.
Part II. The Postal Service represents that the material presented
in part II, captioned Description of the Prices, responds to 39 CFR
3010.14(b)(7) and (8). These rules require the Postal Service to
discuss how the planned prices ``help achieve'' the objectives of
section 3622(b) and ``properly take into account'' the factors of
section 3622(c); and how the planned prices are consistent with
sections 3626, 3627 and 3629. In addition, the Postal Service discusses
the workshare discounts included within the planned price adjustments
as required by 39 CFR 3010.14(b)(5) through (6). Id. at 6-7.
Part III. The Postal Service represents that part III, captioned
MCS [Mail Classification Schedule] Product Description Changes,
responds to the requirement in 39 CFR 3010.14(b)(9) that the instant
notice include all the changes to the product descriptions within the
MCS that are necessitated by the planned rate adjustments. These
changes are presented based on draft MCS language that is being
developed by the Commission in cooperation with the Postal Service. The
draft MCS will be the subject of a future rulemaking, which will
include the opportunity for public comment. Id. at 45.
Appendices. The Adjustment Notice is accompanied by three
appendices. Appendix A provides the schedules of new prices and
classification changes in Mail Classification Schedule format; Appendix
B provides workshare discounts, cost differentials, and passthroughs;
and Appendix C provides the price cap calculation.
Attachments. The attachments consist of workbooks the Postal
Service prepared to demonstrate that the prices identified in the
appendices comply with the price cap. The five attachments are
identified as USPS-R2009-2/1: Cap Compliance for First-Class Mail Price
Changes; USPS-R2009-2/2: Standard Mail Cap Compliance; USPS-R2009-2/3:
Periodicals Cap Compliance; USPS-R2009-2/4: Package Services Cap
Compliance; and USPS-R2009-2/5: Special Services Cap Compliance.
VII. Class-Specific Summary of Price Adjustments and Classification
Changes
A. First-Class Mail
The Postal Service identifies six First-Class Mail products:
Single-Piece Letters/Postcards; Presorted Letters/Postcards; Flats,
Parcels; Outbound Single-Piece First-Class Mail International; and
Inbound Single-Piece First-Class Mail International. The planned price
changes for these products, in percentage terms, range from 2.567
percent to 4.616 percent. Product-specific changes appear in the
following table.
Table VII-1
------------------------------------------------------------------------
Percent
Product change
------------------------------------------------------------------------
Single-Piece Letters & Cards.................................. 4.616
Presort Letters & Cards....................................... 3.080
Flats......................................................... 3.882
Parcels....................................................... 2.567
International *............................................... 4.136
Overall....................................................... 3.771
------------------------------------------------------------------------
* This includes Inbound and Outbound Single-Piece First-Class Mail
International.
Id. at 11-12.
The Postal Service states that a major driver of the overall
increase for First-Class Mail is the price of a stamp for 1-ounce,
single-piece letters. It plans to increase this price by 2 cents (4.8
percent). This increase also reflects the integer (cent) rounding
constraint traditionally applied to this price. The Postal Service
asserts that the additional ounce price and the non-machinable
surcharge are held at current levels, thus tempering the increase
caused by the 2-cent increase on the first-ounce price for letters. Id.
at 12.
Presort Letters and Cards. The Postal Service plans less-than-
average increases in automation prices to help maintain letter volume.
In addition, the Postal Service will make optional some requirements
for presortation of automation First-Class Mail Id. at 13.
Classification changes. To facilitate the adoption of the full-
service option of Intelligent Mail the Postal Service has added a price
differential to the MCS for customers who use this option with First-
Class Mail presorted letters and flats. The price when using this
option is reduced by 0.3 cents from what otherwise would have been
paid. The specific mail preparation requirements for this
classification have not been fully specified. Id. at 14.
B. Standard Mail
The Postal Service identifies six Standard Mail products: Letters;
Flats; Parcels and Not-Flat Machinables (NFMs); High Density and
Saturation Letters; High Density and Saturation Flats and Parcels; and
Carrier Route Letters, Flats, and Parcels. The planned price changes
for these products range from 1.248 percent to 16.425 percent. Product-
specific changes appear in the following table.
Table VII-2
------------------------------------------------------------------------
Percent
Product change
------------------------------------------------------------------------
Letters...................................................... 3.829
Flats........................................................ 2.306
Parcels and NFMs............................................. 16.425
High Density/Saturation Letters.............................. 1.248
High Density/Saturation Flats and Parcels.................... 2.233
Carrier Route Letters, Flats and Parcels..................... 4.310
Overall...................................................... 3.781
------------------------------------------------------------------------
Id.
The Postal Service states that the price change for the Flats
product is lower than the price cap (2.306 percent) to moderate the
increase for catalog mailers, whose volume fell considerably in FY
2008. Although FY 2008 data shows a cost coverage below 100 percent,
the Postal Service asserts it is mitigating the price increase to
maintain the viability of the catalog industry. It also is either
reducing or limiting the increase of the pound rate category for the
Flats product. Id. at 15.
The Postal Service notes that it is working to improve contribution
for the Parcels and NFMs product. It plans a 16.425 percent average
increase. However, incentives to more efficient transportation and
entry practices dropship deeper into the system are enhanced to
encourage. Id. at 16.
Classification changes. The Postal Service has planned new price
incentives targeted at encouraging new Saturation mail volumes. The
incentives will reduce the price for new Saturation letters mailed
during defined periods by 3.7 cents (2.2 cents for nonprofit Saturation
letters). Id.
The Postal Service is revising the pricing categories for Standard
Mail Parcels/NFMs. There no longer will be a separate price for
machinable parcels, irregular parcels, and NFMs presorted to 5-digit
and entered at origin. For such pieces, the lowest price available will
be the BMC price. Separate prices also will
[[Page 8128]]
be eliminated for origin entered SCF [sectional center facility]
irregular parcels and NFMs, DSCF [destination section center facility]
entered BMC irregular parcels and NFMs, and DSCF and DBMC [destination
bulk mail center] entered Mixed BMC irregular parcels and NFMs. Id. at
17.
To facilitate the adoption of the full-service option of
Intelligent Mail, the Postal Service has added a price differential to
the MCS for customers who use this option with Standard Mail. The price
when using this option is reduced by 0.1 cents from what otherwise
would have been paid. The specific mail preparation requirements for
this classification have not been fully specified. Id. at 17-18.
The Postal Service changed mail preparation standards in November
2008 to require Standard Mail customers to use an approved Move Update
method. Customers not complying with the Move Update standard will be
subject to a charge of 7 cents per piece. Id. at 18.
C. Periodicals
The Postal Service identifies two Periodicals products: Within
County Periodicals and Outside County Periodicals. The planned price
changes are relatively close and both are below the cap. Product-
specific changes appear in the following table.
Table VII-3
------------------------------------------------------------------------
Percent
Product change
------------------------------------------------------------------------
Outside County................................................ 3.973
Within County................................................. 3.802
Overall....................................................... 3.966
------------------------------------------------------------------------
Id. at 19.
The Postal Service asserts that the Periodicals class has been
challenging in terms of cost coverage. The Postal Service states that
Periodicals is the only class of mail failing to cover attributable
costs in FY 2008. It also is cognizant of the value of the class to the
public. It contends the adjusted prices are designed to balance the
impact on publications, while taking advantage of the new price
structure that will improve the efficiency of the product. Id.
Classification changes. To facilitate the adoption of the full-
service option of Intelligent Mail, the Postal Service has added a
price differential for customers who use this option with Periodicals.
The per-piece charge when using this option is reduced by 0.1 cents
from what otherwise would have been paid. The specific mail preparation
requirements for this classification have not been fully specified. Id.
at 20.
Currently, Periodicals are required to use ACS and pay a fee of 25
cents per address change. By adopting the full-service option of
Intelligent Mail, a publication also qualifies for no-fee ACS, which,
in itself, is a substantial incentive to use the full-service option.
Id.
D. Package Services
The Postal Service identifies five Package Services products:
Single-Piece Parcel Post; Bound Printed Matter Flats; Bound Printed
Matter Parcels; Media Mail/Library Mail; and Inbound Surface Parcel
Post (at Universal Postal Union (UPU) rates). The planned price changes
range from 2.0 percent reduction to an increase of 7.468 percent.
Product-specific changes appear in the following table.
Table VII-4
------------------------------------------------------------------------
Percent
Product change
------------------------------------------------------------------------
Single-Piece Parcel Post..................................... 4.450
BPM Flats.................................................... -2.000
BPM Parcels.................................................. 2.504
Media Mail and Library Mail.................................. 7.468
Inbound Surface Parcel Post.................................. * 5.027
Overall...................................................... 3.800
------------------------------------------------------------------------
* The Postal Service notes that prices for Inbound (International)
Surface Parcel Post (at UPU rates) are determined by the Universal
Postal Union and are not under its (the Postal Service's) control. Id.
at 20, n.16.
Id.
The Postal Service states that its overall goal in Package Services
is to improve the profitability of the product. It notes that in FY
2008, Media Mail, Library Mail, and Single-Piece Parcel Post failed to
cover costs, although the class as a whole had a positive cost
coverage. Because Bound Printed Matter flats already have a healthy
cost coverage, the Postal Service plans on reducing the average price
for Bound Printed Matter flats in order to offset the needed higher
price increases for the lower performing products. Id. at 21.
Classification changes. The Postal Service plans to change the
Single-Piece Parcel Post price structure by merging the Intra-BMC and
Inter-BMC prices to create a single price at each weight level in each
zone. The separate price for the Local zone is being merged with the
Zones 1 and 2 prices. Id. at 21-22.
The current price structure for Single-Piece Parcel Post includes a
surcharge for non-machinable parcels. The Postal Service is eliminating
this surcharge and incorporating its effect into the base price. Id. at
22.
E. Special Services
The Postal Service identifies 11 Special Services products:
Ancillary Services; International Ancillary Services; Address List
Services; Caller Service; Change-of-Address Credit Card Authentication;
Confirm; International Reply Coupon Service; International Business
Reply Mail Service; Money Orders; Post Office Box Service; and Premium
Forwarding Service. The planned overall increase is 3.837 percent. Id.
at 22-23.
The Postal Service states that fee increases for many Special
Services are generally designed to be close to the percentage increase
in CPI-U, while maintaining consistency with historical rounding
constraints. Id. at 23. It says that Special Services affected by this
approach include Business Reply Mail, and several Ancillary Services,
including Certified Mail; Address List Services; Account Maintenance;
Application and Mailing Permit fees; Parcel Airlift Service; Post
Office Boxes; Return Receipt (green card); and Shipper Paid Forwarding.
Id. The Postal Service states the greater increases for Electronic
Return Receipt and Return Receipt After Mailing reflect their high
value of service. Id., n.17.
Address Correction Service (ACS). The Postal Service states that a
significant portion of ACS will be incorporated into the full-service
option of Intelligent Mail. It notes that manual fees are not increased
while Automated and Electronic fees have increases exceeding the cap.
Id.
Certificate of Mailing. The Postal Service asserts that for
Certificate of Mailing, it designed fees for individual pieces to
increase by a percentage as close to the cap percentage as possible,
consistent with the historical nickel rounding constraint for this
special service. However, it increases fees for Certificates of Mailing
for bulk pieces slightly above the cap to reflect the low price
compared to a high value of service. Id.
Confirm. The Postal Service plans a classification change for
Confirm by adding a new ``Bronze'' price tier, and new segments within
the two existing tiers which differentiate between mail owners and mail
agents. Id. at 24.
Insurance. The Postal Service states that the planned above-average
price increases for the $50.01 to $100 fee and the $100.01 to $200 fee
are intended to smooth the price relationships among the various
increments. It says the increase in the incremental fee reflects the
increased value of service provided as the item's value increases. Id.
[[Page 8129]]
Registered Mail. The Postal Service plans to increase fees for
Registered Mail by an average of 8.7 percent to reflect the high value
of service offered, and to improve the very low cost coverage. Id.
Stamped Envelopes. The Postal Service plans to increase the fees
for single-piece stamped envelopes by one cent. It says it keeps the
fees for plain envelopes in packs of 500 as close to the cap as
possible within the rounding constraints. Fees for personalized
envelopes, however, increase by more than the cap to reflect the
convenience this service provides. The Postal Service states that it is
enhancing the value of service by introducing new envelope options,
some of which will be available on a date later than May 11, 2009. Id.
at 24-25.
Stamped Cards. The Postal Service does not plan to increase the fee
for single Stamped Cards. Id. at 25.
Bulk Parcel Return Service. The Postal Service states that the
increase in the per-piece fee is similar to the general increase for
Standard Mail parcels. Id.
Restricted Delivery, Collect on Delivery Notice of Nondelivery and
Alteration of Charges, and Money Order inquiries. The Postal Service
says the fee increases for these services reflect their high value of
service. Id.
International Special Services. The Postal Service says its general
approach to international special services has been to set fees for
those services that are similar to the fees for the equivalent domestic
service, and that it has followed this approach for International
Certificates of Mailing; International Registered Mail; International
Return Receipts; and International Restricted Delivery. Id.
VIII. Compliance With Preferred Mail Requirements
The Postal Service explains its compliance with section 3626, which
sets forth pricing requirements for certain preferred categories of
mail. Id. at 25-27. It contends that the price adjustment continues to
recognize the preferential status of Within County Periodicals. 39
U.S.C. 3626(a)(3). The Postal Service states that the rate adjustments
maintain the rate preference for Nonprofit and Classroom pieces at a 5
percent discount on all components of postage except for advertising
pounds and ride-along postage. 3626(a)(4)(A)-(B). The Postal Service
continues to provide Science of Agriculture Periodicals with
advertising pound rates for DDU [destination delivery unit], DSCF, DADC
[destination area destination center] and Zones 1 & 2 that are 75
percent of the advertising pound rates applicable to regular
Periodicals. 39 U.S.C. 3626(a)(5). Nonprofit Standard Mail prices are
set to achieve a revenue per-piece ratio of 60.2 percent of the
commercial average revenue per piece. 39 U.S.C. 3626(a)(6). The Postal
Service states that it has set the prices for Library Mail to be, as
nearly as practical, equal to 95 percent of the prices for Media Mail.
39 U.S.C. 3626(a)(7). Finally, the Postal Service states that it
implemented a new ``limited circulation'' discount in 2008, which gives
Outside County pieces of Periodicals having fewer than 5,000 Outside
County pieces and at least one Within County piece a discount
equivalent to the Nonprofit and Classroom Periodicals discount.
IX. Compliance With Workshare Discount Rules
The Postal Service explains that section 3622(e) requires the
Postal Service to justify any worksharing discounts that exceed 100
percent of avoided costs by reference to the exceptions specified in
that provision. Id. at 27. In addition, 39 CFR 3010.14(b)(6) requires
the Postal Service to explain any discount set substantially below 100
percent of avoided costs. Id. at 29. The workshare discounts, cost
differentials, and passthroughs are shown in Appendix B. The
accompanying explanations are provided on a class-by-class basis in the
Adjustment Notice at pages 29-45.
X. Mail Classification Schedule Product Description Changes
The Postal Service addresses 39 CFR 3010.14(b)(9) in part III of
its Adjustment Notice. Id. at 45-47. This rule requires that the
Adjustment Notice include all the changes to the product descriptions
within the MCS that are necessitated by the planned price adjustments.
These changes are presented based on draft MCS language that is being
developed by the Commission in cooperation with the Postal Service. The
draft MCS will be the subject of a future rulemaking, which will
include the opportunity for public comment. The Postal Service provides
the proposed MCS revisions in Appendix A.
Part III of the Adjustment Notice also summarizes the
classification changes identified above in this notice and previously
in the Adjustment Notice. It also identifies a further Outbound Single-
Piece First-Class Mail International classification change which splits
the current Canada and Mexico Postcard category into two distinct price
categories. Id. at 46.
XI. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket No. R2009-2 to consider the
planned price adjustments in rates and fees for market dominant postal
products and services identified in the Postal Service's February 10,
2009 Adjustment Notice.
2. Interested persons may submit comments on the planned price
adjustments. Comments are due March 2, 2009.
3. Pursuant to 39 U.S.C. 505, the Commission appoints Kenneth E.
Richardson, Pamela A. Thompson, and William C. Miller to represent the
interests of the general public in this proceeding.
4. The Commission directs the Secretary of the Commission to
arrange for prompt publication of this notice in the Federal Register.
Dated February 12, 2009.
By the Commission.
Steven W. Williams,
Secretary.
[FR Doc. E9-3781 Filed 2-20-09; 8:45 am]
BILLING CODE 7710-FW-P
