Nationwide Change in Frequency of Postal Delivery, 17789-17791 [2010-7872]

Download as PDF Federal Register / Vol. 75, No. 66 / Wednesday, April 7, 2010 / Notices of information by SSA to OPM in order to administer data exchanges involving military service performed by an individual after December 31, 1956. The CSRS requirement is codified at section 8332(j) of title 5 of the United States Code; the FERS requirement is codified at section 8422(e)(4) of title 5 of the United States Code. The responsibilities of SSA and OPM with respect to information obtained pursuant to this agreement are also in accordance with the following: the Privacy Act (5 U.S.C. 552a), as amended; section 307 of the Omnibus Budget Reconciliation Act of 1982 (Pub. L. 97–253), codified at section 8332 of title 5 of the United States Code; section 1306(a) of title 42 of the United States Code; and section 6103(1)(11) of title 26 of the United States Code. WReier-Aviles on DSKGBLS3C1PROD with NOTICES D. Categories of Records and Individuals Covered by the Match SSA will disclose data from its MBR file (60–0090, Master Beneficiary Record, SSA/OEEAS) and MEF file (60– 0059, Earnings Recording and SelfEmployment Income System, SSA/ OEEAS) and manually-extracted military wage information from SSA’s ‘‘1086’’ microfilm file when required (71 FR 1796, January 11, 2006). OPM will provide SSA with an electronic finder file from the OPM system of records published as OPM/Central–1, Civil Service Retirement and Insurance Records. The system of records involved have routine uses permitting the disclosures needed to conduct this match. E. Privacy Safeguards and Security The Privacy Act (5 U.S.C. 552a(o)(1)(G)) requires that each matching agreement specify procedures for ensuring the administrative, technical and physical security of the records matched and the results of such programs. All Federal agencies are subject to: the Federal Information Security Management Act of 2002 (FISMA) (44 U.S.C. 3541 et seq.); related OMB circulars and memorandum (e.g. OMB Circular A–130 and OMB M–06– 16); National Institute of Science and Technology (NIST) directives; and the Federal Acquisition Regulations (FAR). These laws, circulars, memoranda, directives and regulations include requirements for safeguarding Federal information systems and personally identifiable information used in Federal agency business processes, as well as related reporting requirements. OPM and SSA recognize that all laws, circulars, memoranda, directives and regulations relating to the subject of this agreement and published subsequent to VerDate Nov<24>2008 15:18 Apr 06, 2010 Jkt 220001 the effective date of this agreement must also be implemented if mandated. FISMA requirement apply to all Federal contractors and organizations or sources that process or use Federal information, or that operate, use, or have access to Federal information systems on behalf of an agency. OPM will be responsible for oversight and compliance of their contractors and agents. Both OPM and SSA reserve the right to conduct onsite inspection to monitor compliance with FISMA regulations. F. Inclusive Dates of the Match The matching program shall become effective upon the signing of the agreement by both parties to the agreement and approval of the agreement by the Data Integrity Boards of the respective agencies, but no sooner than 40 days after notice of the matching program is sent to Congress and the Office of Management and Budget or 30 days after publication of this notice in the Federal Register, whichever is later. The matching program will continue for 18 months from the effective date and may be extended for an additional 12 months thereafter, if certain conditions are met. U.S. Office of Personnel Management. John Berry, Director. [FR Doc. 2010–7922 Filed 4–6–10; 8:45 am] BILLING CODE 6325–38–P POSTAL REGULATORY COMMISSION [Docket No. N2010-1; Order No. 436] Nationwide Change in Frequency of Postal Delivery Postal Regulatory Commission. Notice. AGENCY: ACTION: SUMMARY: The Postal Service has requested an advisory opinion from the Commission on a proposed nationwide change in its longstanding 6-day street delivery operating plan. Under the plan, Saturday street delivery day would be eliminated, except for Express Mail deliveries. Some corresponding changes would be made in related aspects of service and processing. This notice addresses related preliminary procedural steps and announces the Commission’s intention to hold some hearings outside of the Washington, DC area. DATES: Interventions are due: April 26, 2010; prehearing conference: April 27, 2010. ADDRESSES: Submit notices of intervention and other documents PO 00000 Frm 00109 Fmt 4703 Sfmt 4703 17789 eletronically via the Commission’s Filing Online system. Commenters who cannot submit documents electronically should contact the person identified in the FOR FURTHER INFORMATION CONTACT section for advice on alternatives to electronic filing. FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 202-789-6820 or stephen.sharfman@prc.gov. SUPPLEMENTARY INFORMATION: On March 30, 2010, the United States Postal Service (Postal Service) filed a request with the Postal Regulatory Commission (Commission) for the Commission to issue an advisory opinion under 39 U.S.C. 3661(c) for the elimination of Saturday delivery.1 Section 3661(c) requires that such service changes conform to the policies reflected in title 39 of the United States Code. The Postal Service proposes to eliminate Saturday delivery nationally, except for delivery of Express Mail and delivery to those post office boxes currently providing Saturday delivery. The change will not take place before October 1, 2010. Request at 1, 10. The Postal Service also proposes to eliminate Saturday initial processing of all mail but Express Mail and qualifying destination entry bulk mail. Id. at 1. The Postal Service bases the Request on its deteriorating financial condition, precipitated by drastic volume decline. Id. at 3-4. If the Postal Service is authorized to make its proposed changes, it claims that its financial condition would be improved by a net of $3.1 billion annually. Id. at 4. The Postal Service summarizes all of its statutory service and financial obligations, and the need for operational flexibility to reduce delivery days to respond to the changing needs of the postal customer. Id. at 9-11. The Postal Service’s Request is accompanied by 11 pieces of testimony and 12 library references.2 The Postal Service states that the service changes in the Request, and the basis thereof, are examined in detail in the Direct Testimony of Samuel Pulcrano on Behalf of the United States Postal Service, March 30, 2010 (USPS-T-1). That testimony indicates that collecting mail from blue street collection boxes will also be eliminated on Saturday, except to collect overflow on an as needed basis. USPS-T-1 at 4, 14. The Postal Service states it has taken stakeholder views into account in 1 Request of the United States Postal Service for an Advisory Opinion on Changes in the Nature of Postal Services, March 30, 2010 (Request). 2 Two of the library references are provided under seal. E:\FR\FM\07APN1.SGM 07APN1 WReier-Aviles on DSKGBLS3C1PROD with NOTICES 17790 Federal Register / Vol. 75, No. 66 / Wednesday, April 7, 2010 / Notices planning the Saturday elimination. Id. at 5-6. The Postal Service also claims that it may, on an as needed basis, resume the delivery of packages/parcels during the pre-Christmas rush on Saturdays in December. Id. at 13. The Postal Service emphasizes that the proposed changes do not affect retail operations, some bulk mail processing, and service standards (except for adding a non-delivery day). Id. at 15-16. The Postal Service sets forth the financial context of the Request in the Direct Testimony of Joseph Corbett on Behalf of the United States Postal Service, March 30, 2010 (USPS-T-2). The Postal Service outlines its financial obligations in the face of declining volume and concludes that the current service model is unsustainable. USPS-T2 at 2-4. The Postal Service also describes the significant cost cutting measures it has implemented in the last few years. Id. at 7-9. The Postal Service concludes that the negative trends in volume and revenue, coupled with a volume dependant network, result in a Postal Service network that is unsustainable. Id. at 17-18. The Postal Service outlines operational issues associated with the elimination of Saturday delivery in the Direct Testimony of Dean J. Granholm on Behalf of the United States Postal Service, March 30, 2010 (USPS-T-3). The Postal Service asserts it can reduce expenditures for carriers and clerks and increase efficiency on other delivery days. USPS-T-3 at 4-5. The Postal Service indicates that perhaps the biggest change for retail customers is that mail accepted on Saturday will not be processed until Monday. Id. at 7-8. The Postal Service states that although it will probably have to change rural routes to adjust to the workload, it intends to adhere to all of its negotiated labor agreement requirements. Id. at 910. It also indicates that field managers may have to develop plans to effectively deal with Monday holiday overflow. Id. at 18. The Postal Service describes the changes to mail processing in the Direct Testimony of Frank Neri on Behalf of the United States Postal Service, March 30, 2010 (USPS-T-4). The Postal Service describes, generally, how outgoing and destinating mail is processed at a facility. USPS-T-4 at 2-3. It identifies the elimination of all Saturday outgoing mail processing activities, with the exception of Express Mail operations, as the most significant mail processing change. Id. at 8. The Postal Service states that mail in transit between processing facilities will still continue to be processed. Id. at 10. The Postal Service also forecasts mail processing VerDate Nov<24>2008 15:18 Apr 06, 2010 Jkt 220001 operations that may be reduced to cut costs, and operations that may increase costs on other days as a result of heavier volume. Id. at 17-18. The Postal Service examines the effect of a reduction in delivery days on the transportation of mail in the Direct Testimony of Luke T. Grossmann on Behalf of the United States Postal Service, March 30, 2010 (USPS-T-5). The Postal Service states that it will realign transportation networks to support a 5-day delivery mail processing and operating environment. USPS-T-5 at 5. The Postal Service estimates cost reduction through a decreased need for surface transportation in a 5-day environment. Id. at 6-12. The Postal Service presents the methodology that it used to calculate cost savings realized from moving to a 5-day delivery model in the Direct Testimony of Michael D. Bradley on Behalf of the United States Postal Service, March 30, 2010 (USPS-T-6). The Postal Service provides an overview of previous estimates employed by the Commission and the Postal Service to calculate savings from a 5-day delivery environment. USPS-T-6 at 2-3. The Postal Service also states that it discards the volume variability analysis, which generally has formed a basis for cost estimates, because the change to 5-day delivery is an operational change, not a volume change. Id. at 3. The Postal Service examines and quantifies the direct and indirect costs identified in previous witness testimonies, and cost savings resulting from moving to a 5-day environment. Id. at 7-53. The Postal Service estimates the annualized cost savings, expressed in 2009 dollars, in the Direct Testimony of Jeff Colvin on Behalf of the United States Postal Service, March 30, 2010 (USPS-T-7). This testimony builds on the methods described in USPS-T-6 by applying them to the Postal Service’s costs. USPS-T-7 at 2-3. It develops the calculated net annual savings (after reduction of contribution from loss of volume) and reports the figure as $3.103 billion. Id. at Attachment 3. The Postal Service states that the estimate may be affected by future increases in hourly labor costs, input unit costs, delivery points, and reduced mail volumes. Id. at 17. The Postal Service provides an overview of the market research activities it conducted to gauge consumer and business impact from a reduction in delivery in the Direct Testimony of Rebecca Elmore-Yalch on Behalf of United States Postal Service, March 30, 2010 (USPS-T-8). The Postal Service describes the qualitative PO 00000 Frm 00110 Fmt 4703 Sfmt 4703 methods it used to garner consumer and business opinion in the form of focus groups and interviews. USPS-T-8 at 411. The Postal Service also describes the quantitative research it employed utilizing surveys. Id. at 12-29. The Postal Service attempts to quantify the affect on use of postal products of moving from a 6-day to a 5-day environment. Id. at 30. The Postal Service provides an assessment of the reactions of customers and commercial organizations to the proposed 5-day change and estimated volume and revenue impact in the Direct Testimony of Gregory M. Whiteman on Behalf of United States Postal Service, March 30, 2010 (USPST-9). The Postal Service states that most consumers and small commercial organizations thought that elimination of Saturday delivery would have little impact on their consumer or commercial requirements. USPS-T-9 at 1. The Postal Service also indicates that most respondents thought they would adapt and the adaptation would not be difficult. Id. Quantitatively, the Postal Service estimates the reduction of volume of 0.7 percent, producing a loss of $428 million in revenue. Id. at 2. The Postal Service describes the changes to ‘‘start-the-clock’’ and ‘‘stopthe-clock’’ events used for service performance measurements that would change as a result of 5-day delivery in the Direct Testimony of Thomas G. Day on Behalf of the United States Postal Service, March 30, 2010 (USPS-T-10). The Postal Serve explains that elimination of outbound mail processing on Saturday affects when the ‘‘clock starts to run’’ for service performance standards. USPS-T-10 at 3. Likewise, the elimination of Saturday delivery delays the ‘‘stop-the-clock’’ event for those mail pieces currently being delivered on Saturday. Id. The testimony presents various ‘‘start-theclock’’ examples for different products the Postal Service offers, and suggests that each may require realignment as a result of moving to a 5-day environment. Id. at 6-9. The Postal Service describes how it will inform and prepare customers for the implementation of 5-day delivery and related service changes in the Direct Testimony of Stephen M. Kearney on Behalf of the United States Postal Service, March 30, 2010 (USPS-T-11). The Postal Service recognizes that the ability of customers to adjust will depend on the Postal Service’s actions taken to clearly and effectively inform them. USPS-T-11 at 1. The Postal Service states that it will use multiple channels to reach stakeholders and garner feedback, including Customer E:\FR\FM\07APN1.SGM 07APN1 WReier-Aviles on DSKGBLS3C1PROD with NOTICES Federal Register / Vol. 75, No. 66 / Wednesday, April 7, 2010 / Notices Advisory Councils, the National Postal Forum, print and broadcast news media, a dedicated micro-Web site, and customer outreach. Id. at 2-7. The Request, according to the Postal Service, contains changes that will affect every stakeholder, internal and external, of the Postal Service. See id. at 1, 7. The Request and all supporting public materials are on file in the Commission’s docket room for inspection during regular business hours, and are available on the Commission’s Web site at http:// www.prc.gov. Further procedures. Section 3661(c) of title 39 requires that the Commission afford an opportunity for formal, on-therecord hearing of the Postal Service’s Request under the terms specified in sections 556 and 557 of title 5 of the United States Code before issuing its advisory opinion. All interested persons are hereby notified that notices of intervention in this proceeding shall be due on or before April 26, 2010. See 39 CFR 3001.20 and 3001.20a. It is the Commission’s intent to hold hearings for the receipt of evidence in this proceeding. At this time, the Commission cannot anticipate the duration, or even the exact form, proceedings on this matter will take. Participants who wish to offer their views on these issues may do so in their interventions. Due to the nature of this Initiative, the Commission also will hold public hearings outside of Washington, D.C. Dates and locations of these public hearings will be announced subsequently. The Commission urges participants to carefully consider, prior to the prehearing conference, the justification for any proposed discovery period. The Commission will hold a prehearing conference in this docket on April 27, 2010 at which these questions will be discussed. Public Representative. Section 3661(c) of title 39 requires the participation of an ‘‘officer of the Commission who shall be required to represent the interests of the general public’’ in these proceedings. Patricia A. Gallagher, Kenneth Moeller, and Larry Fenster are designated to serve as Public Representatives to represent the interests of the general public in this proceeding. The foregoing Public Representatives shall direct the activities of Commission personnel assigned to assist them and, at an appropriate time, shall provide the names of these employees for the record. Neither the Public Representatives nor the assigned personnel shall participate in or advise as to any Commission decision in this VerDate Nov<24>2008 15:18 Apr 06, 2010 Jkt 220001 proceeding, other than in their designated capacity. It is ordered: 1. The Commission establishes Docket No. N2010-1 to consider the Postal Service Request referred to in the body of this order. 2. The Commission will sit en banc in this proceeding. 3. Notices of intervention are due no later than April 26, 2010. 4. A prehearing conference is scheduled for April 27, 2010, at 10:00 a.m., in the Commission’s hearing room. 5. Pursuant to 39 U.S.C. 505 and 3661(c), the Commission appoints Patricia A. Gallagher, Kenneth Moeller, and Larry Fenster to represent the interests of the general public in this proceeding. 6. The Secretary shall arrange for publication of this notice in the Federal Register. By the Commission. Shoshana M. Grove, Secretary. [FR Doc. 2010–7872 Filed 4–6–10; 8:45 am] BILLING CODE 7710–FW–S 17791 03/24/2010, Private Non-Profit organizations that provide essential services of governmental nature may file disaster loan applications at the address listed above or other locally announced locations. The following areas have been determined to be adversely affected by the disaster: Primary Disaster Area District of Columbia. The Interest Rates are: Percent For Physical Damage: Non-Profit Organizations with Credit Available Elsewhere Non-Profit Organizations without Credit Available Elsewhere .......................... For Economic Injury: Non-Profit Organizations without Credit Available Elsewhere .......................... 3.625 3.000 3.000 The number assigned to this disaster for physical damage is 12089B and for economic injury is 12090B. (Catalog of Federal Domestic Assistance Numbers 59002 and 59008) SMALL BUSINESS ADMINISTRATION [Disaster Declaration # 12089 and # 12090] James E. Rivera, Associate Administrator for Disaster Assistance. District of Columbia Disaster # DC– 00002 [FR Doc. 2010–7795 Filed 4–6–10; 8:45 am] U.S. Small Business Administration. ACTION: Notice. SMALL BUSINESS ADMINISTRATION BILLING CODE 8025–01–P AGENCY: [Disaster Declaration # 12087 and # 12088] This is a Notice of the Presidential declaration of a major disaster for Public Assistance only for the State of District of Columbia (FEMA–1890–DR), dated 03/24/2010. Incident: Severe winter storm and snowstorms. Incident Period: 02/05/2010 through 02/11/2010. Effective Date: 03/24/2010. Physical Loan Application Deadline Date: 05/24/2010. Economic Injury (EIDL) Loan Application Deadline Date: 12/27/2010. ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street, SW., Suite 6050, Washington, DC 20416. SUPPLEMENTARY INFORMATION: Notice is hereby given that as a result of the President’s major disaster declaration on SUMMARY: PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 New Jersey Disaster # NJ–00015 AGENCY: U.S. Small Business Administration. ACTION: Notice. SUMMARY: This is a Notice of the Presidential declaration of a major disaster for Public Assistance only for the State of New Jersey (FEMA–1889– DR), dated 03/23/2010. Incident: Severe winter storm and snowstorm. Incident Period: 02/05/2010 through 02/06/2010. DATES: Effective Date: 03/23/2010. Physical Loan Application Deadline Date: 05/24/2010. Economic Injury (EIDL) Loan Application Deadline Date: 12/23/2010 ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration, Processing And Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, E:\FR\FM\07APN1.SGM 07APN1

Agencies

[Federal Register Volume 75, Number 66 (Wednesday, April 7, 2010)]
[Notices]
[Pages 17789-17791]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-7872]


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

POSTAL REGULATORY COMMISSION

[Docket No. N2010-1; Order No. 436]


Nationwide Change in Frequency of Postal Delivery

AGENCY:  Postal Regulatory Commission.

ACTION: Notice.

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

SUMMARY: The Postal Service has requested an advisory opinion from the 
Commission on a proposed nationwide change in its longstanding 6-day 
street delivery operating plan. Under the plan, Saturday street 
delivery day would be eliminated, except for Express Mail deliveries. 
Some corresponding changes would be made in related aspects of service 
and processing. This notice addresses related preliminary procedural 
steps and announces the Commission's intention to hold some hearings 
outside of the Washington, DC area.

DATES: Interventions are due: April 26, 2010; prehearing conference: 
April 27, 2010.

ADDRESSES: Submit notices of intervention and other documents 
eletronically via the Commission's Filing Online system. Commenters who 
cannot submit documents electronically should contact the person 
identified in the FOR FURTHER INFORMATION CONTACT section for advice on 
alternatives to electronic filing.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
202-789-6820 or stephen.sharfman@prc.gov.

SUPPLEMENTARY INFORMATION: On March 30, 2010, the United States Postal 
Service (Postal Service) filed a request with the Postal Regulatory 
Commission (Commission) for the Commission to issue an advisory opinion 
under 39 U.S.C. 3661(c) for the elimination of Saturday delivery.\1\ 
Section 3661(c) requires that such service changes conform to the 
policies reflected in title 39 of the United States Code.
---------------------------------------------------------------------------

    \1\ Request of the United States Postal Service for an Advisory 
Opinion on Changes in the Nature of Postal Services, March 30, 2010 
(Request).
---------------------------------------------------------------------------

    The Postal Service proposes to eliminate Saturday delivery 
nationally, except for delivery of Express Mail and delivery to those 
post office boxes currently providing Saturday delivery. The change 
will not take place before October 1, 2010. Request at 1, 10. The 
Postal Service also proposes to eliminate Saturday initial processing 
of all mail but Express Mail and qualifying destination entry bulk 
mail. Id. at 1.
    The Postal Service bases the Request on its deteriorating financial 
condition, precipitated by drastic volume decline. Id. at 3-4. If the 
Postal Service is authorized to make its proposed changes, it claims 
that its financial condition would be improved by a net of $3.1 billion 
annually. Id. at 4. The Postal Service summarizes all of its statutory 
service and financial obligations, and the need for operational 
flexibility to reduce delivery days to respond to the changing needs of 
the postal customer. Id. at 9-11.
    The Postal Service's Request is accompanied by 11 pieces of 
testimony and 12 library references.\2\ The Postal Service states that 
the service changes in the Request, and the basis thereof, are examined 
in detail in the Direct Testimony of Samuel Pulcrano on Behalf of the 
United States Postal Service, March 30, 2010 (USPS-T-1). That testimony 
indicates that collecting mail from blue street collection boxes will 
also be eliminated on Saturday, except to collect overflow on an as 
needed basis. USPS-T-1 at 4, 14. The Postal Service states it has taken 
stakeholder views into account in

[[Page 17790]]

planning the Saturday elimination. Id. at 5-6. The Postal Service also 
claims that it may, on an as needed basis, resume the delivery of 
packages/parcels during the pre-Christmas rush on Saturdays in 
December. Id. at 13. The Postal Service emphasizes that the proposed 
changes do not affect retail operations, some bulk mail processing, and 
service standards (except for adding a non-delivery day). Id. at 15-16.
---------------------------------------------------------------------------

    \2\ Two of the library references are provided under seal.
---------------------------------------------------------------------------

    The Postal Service sets forth the financial context of the Request 
in the Direct Testimony of Joseph Corbett on Behalf of the United 
States Postal Service, March 30, 2010 (USPS-T-2). The Postal Service 
outlines its financial obligations in the face of declining volume and 
concludes that the current service model is unsustainable. USPS-T-2 at 
2-4. The Postal Service also describes the significant cost cutting 
measures it has implemented in the last few years. Id. at 7-9. The 
Postal Service concludes that the negative trends in volume and 
revenue, coupled with a volume dependant network, result in a Postal 
Service network that is unsustainable. Id. at 17-18.
    The Postal Service outlines operational issues associated with the 
elimination of Saturday delivery in the Direct Testimony of Dean J. 
Granholm on Behalf of the United States Postal Service, March 30, 2010 
(USPS-T-3). The Postal Service asserts it can reduce expenditures for 
carriers and clerks and increase efficiency on other delivery days. 
USPS-T-3 at 4-5. The Postal Service indicates that perhaps the biggest 
change for retail customers is that mail accepted on Saturday will not 
be processed until Monday. Id. at 7-8. The Postal Service states that 
although it will probably have to change rural routes to adjust to the 
workload, it intends to adhere to all of its negotiated labor agreement 
requirements. Id. at 9-10. It also indicates that field managers may 
have to develop plans to effectively deal with Monday holiday overflow. 
Id. at 18.
    The Postal Service describes the changes to mail processing in the 
Direct Testimony of Frank Neri on Behalf of the United States Postal 
Service, March 30, 2010 (USPS-T-4). The Postal Service describes, 
generally, how outgoing and destinating mail is processed at a 
facility. USPS-T-4 at 2-3. It identifies the elimination of all 
Saturday outgoing mail processing activities, with the exception of 
Express Mail operations, as the most significant mail processing 
change. Id. at 8. The Postal Service states that mail in transit 
between processing facilities will still continue to be processed. Id. 
at 10. The Postal Service also forecasts mail processing operations 
that may be reduced to cut costs, and operations that may increase 
costs on other days as a result of heavier volume. Id. at 17-18.
    The Postal Service examines the effect of a reduction in delivery 
days on the transportation of mail in the Direct Testimony of Luke T. 
Grossmann on Behalf of the United States Postal Service, March 30, 2010 
(USPS-T-5). The Postal Service states that it will realign 
transportation networks to support a 5-day delivery mail processing and 
operating environment. USPS-T-5 at 5. The Postal Service estimates cost 
reduction through a decreased need for surface transportation in a 5-
day environment. Id. at 6-12.
    The Postal Service presents the methodology that it used to 
calculate cost savings realized from moving to a 5-day delivery model 
in the Direct Testimony of Michael D. Bradley on Behalf of the United 
States Postal Service, March 30, 2010 (USPS-T-6). The Postal Service 
provides an overview of previous estimates employed by the Commission 
and the Postal Service to calculate savings from a 5-day delivery 
environment. USPS-T-6 at 2-3. The Postal Service also states that it 
discards the volume variability analysis, which generally has formed a 
basis for cost estimates, because the change to 5-day delivery is an 
operational change, not a volume change. Id. at 3. The Postal Service 
examines and quantifies the direct and indirect costs identified in 
previous witness testimonies, and cost savings resulting from moving to 
a 5-day environment. Id. at 7-53.
    The Postal Service estimates the annualized cost savings, expressed 
in 2009 dollars, in the Direct Testimony of Jeff Colvin on Behalf of 
the United States Postal Service, March 30, 2010 (USPS-T-7). This 
testimony builds on the methods described in USPS-T-6 by applying them 
to the Postal Service's costs. USPS-T-7 at 2-3. It develops the 
calculated net annual savings (after reduction of contribution from 
loss of volume) and reports the figure as $3.103 billion. Id. at 
Attachment 3. The Postal Service states that the estimate may be 
affected by future increases in hourly labor costs, input unit costs, 
delivery points, and reduced mail volumes. Id. at 17.
    The Postal Service provides an overview of the market research 
activities it conducted to gauge consumer and business impact from a 
reduction in delivery in the Direct Testimony of Rebecca Elmore-Yalch 
on Behalf of United States Postal Service, March 30, 2010 (USPS-T-8). 
The Postal Service describes the qualitative methods it used to garner 
consumer and business opinion in the form of focus groups and 
interviews. USPS-T-8 at 4-11. The Postal Service also describes the 
quantitative research it employed utilizing surveys. Id. at 12-29. The 
Postal Service attempts to quantify the affect on use of postal 
products of moving from a 6-day to a 5-day environment. Id. at 30.
    The Postal Service provides an assessment of the reactions of 
customers and commercial organizations to the proposed 5-day change and 
estimated volume and revenue impact in the Direct Testimony of Gregory 
M. Whiteman on Behalf of United States Postal Service, March 30, 2010 
(USPS-T-9). The Postal Service states that most consumers and small 
commercial organizations thought that elimination of Saturday delivery 
would have little impact on their consumer or commercial requirements. 
USPS-T-9 at 1. The Postal Service also indicates that most respondents 
thought they would adapt and the adaptation would not be difficult. Id. 
Quantitatively, the Postal Service estimates the reduction of volume of 
0.7 percent, producing a loss of $428 million in revenue. Id. at 2.
    The Postal Service describes the changes to ``start-the-clock'' and 
``stop-the-clock'' events used for service performance measurements 
that would change as a result of 5-day delivery in the Direct Testimony 
of Thomas G. Day on Behalf of the United States Postal Service, March 
30, 2010 (USPS-T-10). The Postal Serve explains that elimination of 
outbound mail processing on Saturday affects when the ``clock starts to 
run'' for service performance standards. USPS-T-10 at 3. Likewise, the 
elimination of Saturday delivery delays the ``stop-the-clock'' event 
for those mail pieces currently being delivered on Saturday. Id. The 
testimony presents various ``start-the-clock'' examples for different 
products the Postal Service offers, and suggests that each may require 
realignment as a result of moving to a 5-day environment. Id. at 6-9.
    The Postal Service describes how it will inform and prepare 
customers for the implementation of 5-day delivery and related service 
changes in the Direct Testimony of Stephen M. Kearney on Behalf of the 
United States Postal Service, March 30, 2010 (USPS-T-11). The Postal 
Service recognizes that the ability of customers to adjust will depend 
on the Postal Service's actions taken to clearly and effectively inform 
them. USPS-T-11 at 1. The Postal Service states that it will use 
multiple channels to reach stakeholders and garner feedback, including 
Customer

[[Page 17791]]

Advisory Councils, the National Postal Forum, print and broadcast news 
media, a dedicated micro-Web site, and customer outreach. Id. at 2-7.
    The Request, according to the Postal Service, contains changes that 
will affect every stakeholder, internal and external, of the Postal 
Service. See id. at 1, 7.
    The Request and all supporting public materials are on file in the 
Commission's docket room for inspection during regular business hours, 
and are available on the Commission's Web site at http://www.prc.gov.
    Further procedures. Section 3661(c) of title 39 requires that the 
Commission afford an opportunity for formal, on-the-record hearing of 
the Postal Service's Request under the terms specified in sections 556 
and 557 of title 5 of the United States Code before issuing its 
advisory opinion. All interested persons are hereby notified that 
notices of intervention in this proceeding shall be due on or before 
April 26, 2010. See 39 CFR 3001.20 and 3001.20a. It is the Commission's 
intent to hold hearings for the receipt of evidence in this proceeding.
    At this time, the Commission cannot anticipate the duration, or 
even the exact form, proceedings on this matter will take. Participants 
who wish to offer their views on these issues may do so in their 
interventions. Due to the nature of this Initiative, the Commission 
also will hold public hearings outside of Washington, D.C. Dates and 
locations of these public hearings will be announced subsequently. The 
Commission urges participants to carefully consider, prior to the 
prehearing conference, the justification for any proposed discovery 
period.
    The Commission will hold a prehearing conference in this docket on 
April 27, 2010 at which these questions will be discussed.
    Public Representative. Section 3661(c) of title 39 requires the 
participation of an ``officer of the Commission who shall be required 
to represent the interests of the general public'' in these 
proceedings. Patricia A. Gallagher, Kenneth Moeller, and Larry Fenster 
are designated to serve as Public Representatives to represent the 
interests of the general public in this proceeding. The foregoing 
Public Representatives shall direct the activities of Commission 
personnel assigned to assist them and, at an appropriate time, shall 
provide the names of these employees for the record. Neither the Public 
Representatives nor the assigned personnel shall participate in or 
advise as to any Commission decision in this proceeding, other than in 
their designated capacity.
    It is ordered:
    1. The Commission establishes Docket No. N2010-1 to consider the 
Postal Service Request referred to in the body of this order.
    2. The Commission will sit en banc in this proceeding.
    3. Notices of intervention are due no later than April 26, 2010.
    4. A prehearing conference is scheduled for April 27, 2010, at 
10:00 a.m., in the Commission's hearing room.
    5. Pursuant to 39 U.S.C. 505 and 3661(c), the Commission appoints 
Patricia A. Gallagher, Kenneth Moeller, and Larry Fenster to represent 
the interests of the general public in this proceeding.
    6. The Secretary shall arrange for publication of this notice in 
the Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2010-7872 Filed 4-6-10; 8:45 am]
BILLING CODE 7710-FW-S