New Postal Product, 45174 [2010-18804]

Agencies

• POSTAL REGULATORY COMMISSION

[Federal Register Volume 75, Number 147 (Monday, August 2, 2010)]
[Notices]
[Page 45174]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-18804]


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

POSTAL REGULATORY COMMISSION

[Docket Nos. MC2010-29 and CP2010-72; Order No. 494]


New Postal Product

AGENCY:  Postal Regulatory Commission.

ACTION:  Notice.

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

SUMMARY:  The Commission is noticing a recently-filed Postal Service 
request to add Global Expedited Package Services--Non-published Rates 
to the competitive product list. The Postal Service has also filed a 
related contract. This notice addresses procedural steps associated 
with the filing.

DATES:  Comments are due: August 11, 2010. Reply Comments are due: 
August 18, 2010.

ADDRESSES:  Submit comments electronically via the Commission's Filing 
Online system at https://www.prc.gov. Commenters who cannot submit their 
views electronically should contact the person identified in the FOR 
FURTHER INFORMATION CONTACT section by telephone for advice on 
alternatives to electronic filing.

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

SUPPLEMENTARY INFORMATION: On July 16, 2010, the Postal Service 
requested that the Commission add Global Expedited Package Services--
Non-published Rates to the competitive product list within the Mail 
Classification Schedule (MCS).\1\ This product grouping would create a 
niche classification in addition to existing Global Expedited Package 
Services (GEPS) categories. Id. at 8-10. GEPS offer discounts to small- 
and medium-size mailers of Express Mail International (EMI) and 
Priority Mail International (PMI). The existing GEPS product is similar 
to the new GEPS--Non-published Rates. Each offer rates for EMI and PMI 
based on revenue tiers, entry points, country groups, and weight cells. 
Id. at 4-6. According to the Postal Service, nearly all current GEPS 
agreements would fit within GEPS--Non-published Rates. Nonconforming 
agreements would remain within the existing GEPS product. Id. at 4.
---------------------------------------------------------------------------

    \1\ Notice and Request of the United States Postal Service 
Concerning Global Expedited Package Services--Non-Published Rates 
and Application for Non-Public Treatment of Materials Filed Under 
Seal, July 16, 2010 (Request).
---------------------------------------------------------------------------

    The primary difference between GEPS and GEPS--Non-published Rates 
is that the Governors have approved an eight-tiered rate design model 
that includes every possible rate between a minimum and maximum rate 
within cells defined by country group and weight.\2\ The maximum rate 
in each cell would be based on the published Click-N-Ship discounts of 
8 and 5 percent for EMI and PMI, respectively. The minimum rate in each 
cell would be based on the entry of qualifying mail at an International 
Service Center in tier 8. Id., Attachment C, at 1-2. The Postal Service 
would offer customized agreements to customers with rates between the 
minimum and maximum. Customers would need to make a minimum revenue 
commitment of $50,000 per year. Id., Attachment A, section 2610.7.1.
---------------------------------------------------------------------------

    \2\ See Request, Governors Decision No. 10-2, Attachment B.
---------------------------------------------------------------------------

    The purpose of GEPS--Non-published Rates is to streamline the 
``process for approving GEPS agreements, while maintaining their 
profitability and competitive positioning in the market.'' Id., 
Attachment C, at 1. The Postal Service states:
    The number of [GEPS] agreements continues to grow, and the 
number of renewing customers is substantial. Because the agreements 
typically have a term of one year, the transaction costs for 
developing the pricing and filing each agreement as a separate 
product are substantial as well. The resources of the Commission are 
also affected by these agreements, as the Commission and a Public 
Representative must review each agreement and its rates prior to 
determining the functional equivalence of the agreement under review 
in comparison to the baseline GEPS agreement.
Request at 8.
    The Postal Service further indicates that if the proposal is 
approved as a niche classification, ``the filing of each mailer's 
agreement to be added to the competitive product list would no longer 
be necessary.'' Id. at 7, n.10. It anticipates, however, ``providing 
copies of the agreements to the Commission under cover of a notice 
pleading.'' Id.
    Included with the Request are several attachments. Attachment 1 is 
an application for non-public treatment of portions of the Request. 
Attachment 2 contains the Governors' Decision and attachments thereto, 
including MCS language describing GEPS--Non-published Rates, rate 
schedules, a management analysis, and certification that prices satisfy 
applicable pricing criteria. Attachment 3 is a Statement of 
Justification by the Executive Director, Global Business Management. 
Attachment 4 is a representative agreement between the Postal Service 
and a customer of GEPS--Non-published Rates.
    Comments. Interested persons may submit comments on or before 
August 11, 2010. Reply comments may be submitted no later than August 
18, 2010.
    Public Representative. Pursuant to 39 U.S.C. 505, the Commission 
hereby appoints Steven M. Hoffer to serve as officer of the Commission 
(Public Representative) to represent the interests of the general 
public in this proceeding. Neither Mr. Hoffer nor any staff assigned to 
assist him shall participate in or provide any advice on any Commission 
decision in this proceeding other than in their designated capacity.
    It is ordered:
    1. The Commission establishes Docket Nos. MC2010-29 and CP2010-72 
to consider matters raised in the Postal Service's July 16, 2010 
Request.
    2. Comments are due August 11, 2010. Reply comments are due August 
18, 2010.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Steven M. 
Hoffer to represent the interests of the general public in this 
proceeding.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove
Secretary.
[FR Doc. 2010-18804 Filed 7-30-10; 8:45 am]
BILLING CODE 7710-FW-S