Postal Rate and Classification Changes, 64362-64366 [2012-25761]
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Federal Register / Vol. 77, No. 203 / Friday, October 19, 2012 / Notices
Search.’’ For problems with ADAMS,
please contact the NRC’s Public
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I. Accessing Information and
Submitting Comments
tkelley on DSK3SPTVN1PROD with NOTICES
to do so, but the NRC is able to ensure
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received on or before this date.
Although a time limit is given,
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connection with items for inclusion in
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improvements in all published guides
are encouraged at any time.
ADDRESSES: You may access information
and comment submissions related to
this document, which the NRC
possesses and are publicly available, by
searching on https://www.regulations.gov
under Docket ID NRC–2010–0362. You
may submit comments by any of the
following methods:
• Federal Rulemaking Web site: Go to
https://www.regulations.gov and search
for Docket ID NRC–2010–0362. Address
questions about NRC dockets to Carol
Gallagher; telephone: 301–492–3668;
email: Carol.Gallagher@nrc.gov.
• Mail comments to: Cindy Bladey,
Chief, Rules, Announcements, and
Directives Branch (RADB), Office of
Administration, Mail Stop: TWB–05–
B01M, U.S. Nuclear Regulatory
Commission, Washington, DC 20555–
0001.
• Fax comments to: RADB at 301–
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For additional direction on accessing
information and submitting comments,
see ‘‘Accessing Information and
Submitting Comments’’ in the
SUPPLEMENTARY INFORMATION section of
this document.
FOR FURTHER INFORMATION CONTACT: Jo
Ann Simpson, Office of Nuclear Reactor
Regulation, U.S. Nuclear Regulatory
Commission, Washington, DC 20555–
0001; telephone: 301–415–8388; email:
JoAnn.Simpson@nrc.gov.
SUPPLEMENTARY INFORMATION:
II. Background
On September 21, 2012 (77 FR 58591),
the NRC published a notice of issuance
and availability of Draft NUREG–1307,
Revision 15. The draft NUREG proposed
a reduction in the estimate of the
potential savings from using waste
vendors to process radioactive waste
generated during power reactor
decommissioning. The change resulted
in an increase in the minimum
permissible amount of decommissioning
financial assurance required by the
licensee. By letter dated September 26,
2012, (ADAMS Accession No.
ML12271A275), the Nuclear Energy
Institute requested an extension of the
stated comment period for the purpose
of providing sufficient time for the
industry to thoroughly understand and
assess the proposed changes, interact
with the agency staff to obtain necessary
A. Accessing Information
Please refer to Docket ID NRC–2010–
0362 when contacting the NRC about
the availability of information regarding
this document. You may access
information related to this document,
which the NRC possesses and are
publicly available, by any of the
following methods:
• Federal Rulemaking Web site: Go to
https://www.regulations.gov and search
for Docket ID NRC–2010–0362.
• NRC’s Agencywide Documents
Access and Management System
(ADAMS): You may access publicly
available documents online in the NRC
Library at https://www.nrc.gov/readingrm/adams.html. To begin the search,
select ‘‘ADAMS Public Documents’’ and
then select ‘‘Begin Web-based ADAMS
VerDate Mar<15>2010
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B. Submitting Comments
Please include Docket ID NRC–2010–
0362 in the subject line of your
comment submission, in order to ensure
that the NRC is able to make your
comment submission available to the
public in this docket.
The NRC cautions you not to include
identifying or contact information that
you do not want to be publicly
disclosed in your comment submission.
The NRC will post all comment
submissions at https://www.regulations.
gov as well as enter the comment
submissions into ADAMS. The NRC
does not routinely edit comment
submissions to remove identifying or
contact information.
If you are requesting or aggregating
comments from other persons for
submission to the NRC, then you should
inform those persons not to include
identifying or contact information that
they do not want to be publicly
disclosed in their comment submission.
Your request should state that the NRC
does not routinely edit comment
submissions to remove such information
before making the comment
submissions available to the public or
entering the comment submissions into
ADAMS.
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clarifications at one or more focused
public meetings, and provide-fully
supported written comments to inform
development of the final NUREG–1307,
Revision 15. It is the desire of the NRC
to receive comments of a high quality
from all stakeholders. Several factors
have been considered in granting an
extension. The comment period
extension is reasonable and does not
affect NRC deadlines. The additional
time will allow adequate time for the
NRC to review comments, organize a
public workshop on NUREG–1307,
Revision 15, and finalize NUREG–1307,
Revision 15, for use by licensees before
the required submission of power
reactor Decommissioning Funding
Status reports by the March 31, 2013,
due date. The NRC continues to
evaluate factors affecting waste burial
costs. Guidance developed by the NRC
staff would benefit from industry
information reflecting real world burial
cost data and other such information
that could assist in evaluating changes
to the waste burial factor. Such
information would include: (1) Actual
disposal costs, under proprietary cover,
if necessary; (2) Disposal costs specific
to disposal operations for Rancho Saco
and Zion Solutions, under proprietary
cover, if necessary, (3) Identification of
misinterpreted or misapplied data, if
any, found in Table A–4 of NUREG–
1307, Revision 15; and (4) Licensees’
site-specific cost estimates and time
assumptions. The NRC also seeks
comments from other stakeholders on
the costs and benefits of reducing the
estimate of potential savings in
decommissioning costs available from
using a waste vendor to process power
reactor decommissioning wastes.
Therefore the comment submittal period
is extended from the original date of
October 22, 2012 to November 15, 2012.
Dated at Rockville, Maryland, this 10th day
of October, 2012.
For the Nuclear Regulatory Commission.
Jo Ann Simpson,
Acting Chief, Financial Analysis and
International Projects Branch. Division of
Inspection and Regional Support, Office of
Nuclear Reactor Regulation.
[FR Doc. 2012–25848 Filed 10–18–12; 8:45 am]
BILLING CODE 7590–01–P
POSTAL REGULATORY COMMISSION
[Docket No. R2013–1; Order No. 1501]
Postal Rate and Classification
Changes
Postal Regulatory Commission.
Notice.
AGENCY:
ACTION:
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The Commission is noticing a
recently-filed Postal Service notice of
annual price adjustments for all market
dominant classes of mail. The
adjustments include a one-cent increase
in the price of First-Class Stamp (from
45 cents to 46 cents). The Postal Service
is also planning to make mail
classification changes. This notice
addresses procedural steps associated
with this filing and invites public
comment.
DATES: Comments are due: October 31,
2012.
ADDRESSES: Submit comments
electronically via the Commission’s
Filing Online system at
http:www.prc.gov. Commenters who
cannot submit their views electronically
should contact the person identified in
the FOR FURTHER INFORMATION CONTACT
portion of the preamble for advice on
alternatives to electronic filing.
FOR FURTHER INFORMATION CONTACT:
Stephen L. Sharfman, General Counsel,
at 202–789–6824.
SUMMARY:
Table of Contents
I. Overview
II. Promotions
III. Summary of Price Changes by Class of
Mail
IV. Preferred Mail and Worksharing
Discounts
V. MCS Changes
VI. Administrative Actions
VII. Ordering Paragraphs
TABLE 1—AVAILABLE UNUSED PRICE
ADJUSTMENT AUTHORITY
Market dominant class
TABLE 2—PRICE ADJUSTMENT
AUTHORITY BY CLASS
Market dominant class
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2.570
2.570
2.570
2.570
4.964
Id. at 4.
The following table presents the
Postal Service’s planned percentage
price changes by class.
TABLE 3—2013 PRICE CHANGE
PERCENTAGE BY CLASS
Market dominant class
A. Index-based Price Changes for
Market Dominant Classes of Mail
On October 11, 2012, the Postal
Service filed notice, pursuant to 39
U.S.C. 3622 and 39 CFR part 3010, of
plans to adjust prices for market
dominant products by amounts which,
on average, are, with one exception, at
or below the statutory price cap of 2.570
percent for each class of mail.1 The
planned adjustments affect both
domestic and international market
dominant products and are scheduled to
take effect January 27, 2013.
The Postal Service states that it has
inflation-based price adjustment
authority of 2.570 percent based on the
Consumer Price Index for All Urban
Consumers, U.S. All Items (the
‘‘CUUR0000SA0’’) series (CPI–U). Id.
The Postal Service also states that it has
unused rate authority (as indicated in
the following table) and will use some
of this authority for Special Services. Id.
1 United States Postal Service Notice of MarketDominant Price Adjustment at 3, October 11, 2012
(Adjustment Notice). The overall increase for
Special Services is 2.850 percent.
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Price
adjustment
authority (%)
First-Class Mail ...................
Standard Mail .....................
Periodicals ..........................
Package Services ...............
Special Services .................
Price change
(%)
First-Class Mail ...................
Standard Mail .....................
Periodicals ..........................
Package Services ...............
Special Services .................
2.570
2.570
2.560
2.569
2.850
Id. at 6.
In some instances, price adjustments
for products within classes vary from
the average, sometimes substantially.
Interested persons are encouraged to
review the Adjustment Notice and
workpapers for specific details.
Unused authority after the 2013 price
change. The following table identifies
the unused price adjustment authority
the Postal Service calculates as available
following the 2013 price change.
TABLE 4—UNUSED PRICING AUTHORITY AVAILABLE FOLLOWING DOCKET
NO. R2013–1 PRICE CHANGES
Percentage
points
Class
First-Class Mail:
R2012–3 ..........................
R2013–1 ..........................
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TABLE 4—UNUSED PRICING AUTHORITY AVAILABLE FOLLOWING DOCKET
NO. R2013–1 PRICE CHANGES—
Continued
Class
Percentage
points
¥0.530
0.000
Total .............................
¥0.530
Standard Mail:
R2012–3 ..........................
R2013–1 ..........................
¥0.380
0.000
Total .............................
¥0.380
Periodicals:
R2012–3 ..........................
R2013–1 ..........................
¥0.562
0.010
Total .............................
¥0.552
Package Services:
R2012–3 ..........................
R2013–1 ..........................
¥0.533
0.001
Total .............................
¥0.532
Special Services:
R2012–3 ..........................
R2013–1 ..........................
2.394
¥0.280
Total .............................
Id.
The Postal Service asserts that it is
authorized to raise prices for each class
by the percentages in the following
table.
I. Overview
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¥0.530
¥0.380
¥0.562
¥0.533
2.394
First-Class Mail ...................
Standard Mail .....................
Periodicals ..........................
Package Services ...............
Special Services .................
SUPPLEMENTARY INFORMATION:
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Unused
authority (%)
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2.114
Id. at 6–7.
Classification changes. The
Adjustment Notice identifies numerous
substantive classification changes in a
bulleted list. Id. at 54–55. Attachment A
presents these changes as well as
formatting and wording changes. Id. at
53–54.
B. Format and Content of Adjustment
Notice
The Adjustment Notice includes a
brief introductory section, four parts,
and four attachments.
The introductory section of the
Adjustment Notice includes a
certification, in accordance with rule
3010.14(a)(3), that the Postal Service
will provide widespread notice of the
planned adjustments prior to the
planned implementation date. Id. at 1.
It identifies Greg Hall as the Postal
Service official who will respond to
queries from the Commission. Id. at 2.
Part I discusses compliance with the
price cap. Id. at 2–7. Part II describes
several temporary promotions. It also
discusses how a portion of the related
revenue loss will be integrated into the
price cap calculations for First-Class
Mail and Standard Mail. Id. at 7–9. Part
III discusses prices in more detail,
including workshare discounts. It also
addresses the consistency of prices with
the objectives and factors of 39 U.S.C.
3622 and the preferential pricing
requirements of 39 U.S.C. 3626. Id. at 9–
53. Part IV describes related Mail
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Classification Schedule (MCS)
changes.2 Id. at 53–55.
Attachments. Attachment A presents
MCS changes in legislative format and
new price schedules. Attachment B
presents workshare discounts and
related information. Attachment C
presents the Postal Service’s price cap
calculation. The price cap calculation
includes, in conformance with rule
3010.22(b), an adjustment to the moving
average because less than 12 months
have passed since the most recent price
change (filed on January 13, 2011).
Attachment D presents the 2013 Mailing
Services Promotions Calendar
Overview. Id. at 5.
Workpapers. The Postal Service filed
nine sets of workpapers:
First Class Mail Cap Compliance:
USPS–LR–R2013–1/1
First Class Mail International Cap
Compliance: USPS–LR–R2013–1/NP1
Standard Mail Cap Compliance: USPS–
LR–R2013–1/2
Periodicals Cap Compliance: USPS–LR–
R2013–1/3
Package Services Cap Compliance:
USPS–LR–R2013–1/4
Special Services Cap Compliance:
USPS–LR–R2013–1/5
Derivation of Volumes for Earned Value
Reply Mail Promotion: USPS–LR–
R2013–1/6
Standard Mail Contribution Model:
USPS–R2013–1/7
FY 2011 Delivery Costs by Shape:
USPS–R2013–1/8
Id. at 4–5.
Each set of workpapers includes a
preface with an explanation of its
contents. Id. at 5. In addition, the
preface for the first five workpapers
provides an overview, a discussion of
adjustments to the billing determinants
for the four quarters ending FY 2012,
quarter 3, and an explanation of revenue
calculations. Id. The First-Class Mail
and Standard Mail workpapers also
incorporate data on promotion volumes,
based on the volumes from the 2011
Mobile Barcode Promotion and USPS–
LR–R2012–1/6.
II. Promotions
As part of this filing, the Postal
Service seeks approval of six
promotions during calendar year 2013.3
The following table identifies the
promotion and timeframe.
TABLE 5—CALENDAR YEAR 2013 PROMOTION TIMEFRAME
Promotion
Timeframe
Mobile Coupon/Click-to-Call ........................................................................................................................................
Earned Value Reply Mail Promotion ...........................................................................................................................
Emerging Technology ..................................................................................................................................................
Picture Permit ..............................................................................................................................................................
Product Samples ..........................................................................................................................................................
Mobile Buy-it-Now ........................................................................................................................................................
March–April 2013.
April–June 2013.
August–September 2013.
August–September 2013.
August–September 2013.
November–December 2013.
Id. at 7–8.
The Postal Service states that it will
seek to recover some of the revenue
forgone from these promotions by
factoring the lost revenue into the price
cap calculation. Id. at 9. The Postal
Service asserts that a conservative
estimate of the value of four of the
promotions (Mobile Coupon, Click-toCall, Emerging Technologies, Mobile
Buy-it-Now, and Earned Value Reply
Mail), based on historical data on
qualifying volume, is approximately
$33.4 million.4 Id.
III. Summary of Price Changes by Class
of Mail
A. First-Class Mail
The following table identifies the
Postal Service’s planned percentage
price changes for its First-Class Mail
products.
TABLE 6—FIRST-CLASS MAIL PRICE
CHANGES
Percent
change
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First-class mail product
Single-Piece Letters and Cards ...
Presort Letters and Cards ............
2.283
2.555
2 Part IV is identified as an additional Part III in
the Adjustment Notice.
3 In the past, the Postal Service has not included
promotional filings in its annual market dominant
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TABLE 6—FIRST-CLASS MAIL PRICE
CHANGES—Continued
First-class mail product
Flats ..............................................
Parcels ..........................................
International ..................................
Overall ..........................................
Percent
change
2.675
4.971
7.923
2.570
Id. at 14.
The first ounce First-Class Mail price.
The price of a stamp for the first ounce
of single-piece letter mail (including the
Forever stamp), increases by one cent
under the Postal Service’s plan, from 45
cents to 46 cents. Id.
Single-piece letters and cards. The
overall increase of 2.283 percent for
single-piece letters and cards includes a
one cent increase in the price for singlepiece cards (to 33 cents). Id. at 14–15.
The price for single-piece residual
letters (mainly permit imprint letters),
which the Postal Service is introducing
for calendar year 2013, will be 48 cents
for up to 2 ounces. Id. at 15.
Presort letters and cards. The Postal
Service states that the overall increase
for this product is slightly below the
price adjustment filing. The Postal Service states
that it does so this year in response to customers’
concern about insufficient time to fully participate
in the promotions. Id. at 7.
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overall average for First-Class Mail. The
Postal Service continues to price
Automated Area Distribution Center
(AADC) and 3-Digit letters at the same
level and extends this structure to
Presort Automation Postcards. Id. at 16.
The Postal Service continues to offer the
free second ounce for all Presort FirstClass Mail letters. Id. at 16.
Flats. The overall increase for Flats is
2.675 percent, slightly above the CPI–U
cap of 2.57 percent. Id. Price changes
within this product vary. Id.
Parcels. Single-Piece (Retail) Parcels
(which are the only parcel-shaped FirstClass Mail pieces that remain as market
dominant) receive a 4.971 percent
increase, higher than the overall
increase for First-Class Mail. Id. The
Postal Service states that this aboveaverage increase is expected to improve
cost coverage for this product, which it
considers low by First-Class Mail
standards. Id. at 17–18.
Promotions—revenue forgone
implications. The Adjustment Notice
includes a summary of the methodology
the Postal Service plans to use to
recover some of the revenue forgone
resulting from its 2013 First-Class Mail
promotions. Id. at 18–19. The
4 See USPS–LR–R2013–1/1 and USPS–LR–
R2013–1/2 for the basis of this calculation.
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discussion includes identification of the
four promotional categories that will be
included in recovery of revenue forgone
and related data and information. Id. at
18–19.
International. Prices for Outbound
Single-Piece First-Class Mail
International (FCMI) increase by 14.3
percent, significantly above the FirstClass Mail average of 2.570 percent. Id.
at 19. The Postal Service asserts that the
increase is necessary to increase
contribution and improve cost coverage
for FCMI letters at the one-ounce weight
step and to accommodate introduction
of the International Forever stamp. Id.
The International Forever stamp will be
sold at the price of a single-piece FCMI
first ounce machinable letter and have
a postage value equivalent to the price
of a single-piece FCMI first ounce
machinable letter in effect at time of
use. Id.
B. Standard Mail
The following table presents the
Postal Service’s planned percentage
price changes for Standard Mail
products.
cap) increase. Id. at 20. The Adjustment
Notice includes a discussion of the
Postal Service’s rationale for this
approach, including reference to the
Commission’s finding of noncompliance
for Standard Mail Flats in the 2010
Annual Compliance Report. Id. at 20–
25. The Adjustment Notice also
addresses other Standard Mail pricing.
Id. at 25. This includes a new Simple
Samples Initiative and a new High
Density Plus price tier. Id. at 26.
Detached Address Labels prices increase
from 3.0 cents to 3.1 cents. Id. The
Postal Service is not proposing any
price changes for Every Door Direct Mail
(which will remain at 16 cents) or for
optional picture permit indicia (which
will remain at 2 cents). Id. at 27.
However, the Postal Service is
extending the availability of picture
permits to flats. Id.
The Postal Service states that the
methodology for recovering promotionrelated revenue forgone in Standard
Mail follows the approach for FirstClass Mail. Id. at 26–27.
C. Periodicals
The following table presents the
Postal Service’s planned percentage
price changes for the Periodicals class.
TABLE 7—STANDARD MAIL PRICE
CHANGES
Percent
change
Standard mail product
Letters ...........................................
Flats ..............................................
Parcels ..........................................
High Density/Saturation Letters ....
High Density/Saturation Flats and
Parcels ......................................
Carrier Route ................................
Overall ..........................................
2.722
2.570
3.081
2.207
2.275
3.133
2.570
Id. at 19.
Letters receive an above-average
increase; Flats receive an average (at
TABLE 8—PERIODICALS PRICE
CHANGES
Periodicals product
Percent
change
Outside County .............................
Within County ...............................
Overall ..........................................
2.546
2.911
2.560
Id. at 27.
The Postal Service states that the
Periodicals price change reflects
recognition of this product’s value,
despite cost coverage shortfall. Id. at 27–
28. It states that it cannot use its pricing
authority to fully cover costs, as both
Periodicals are failing to cover costs by
substantially more than the cap. Id. at
28.
D. Package Services
The following table presents the
Postal Service’s planned percentage
price changes for the Package Services
class.
TABLE 9—PACKAGE SERVICES PRICE
CHANGES
Percent
change
Package services product
Alaska Bypass Service .............
Bound Printed Matter Flats ......
Bound Printed Matter Parcels ..
Media Mail and Library Mail .....
Inbound Surface Parcel Post* ..
Overall ......................................
3.000
0.002
3.424
3.472
0.000
2.569
* Prices for Inbound Surface Parcel Post (at
UPU rates) are determined by the Universal
Postal Union and are not under the Postal
Service’s control. These prices are adjusted
by the Postal Operations Council.
Id.
E. Special Services
The overall increase for Special
Services is 2.850 percent. Id. at 29. The
Postal Service states that for most of the
products, fee increases were designed to
be close to 4.5 percent, while
maintaining consistency with historical
rounding constraints (to simplify
transactions for customers). Id. at 30.
The following table, based on price
changes identified in the body of the
Adjustment Notice, indicates the
differing effects of the Postal Service’s
Special Services pricing decisions.
TABLE 10—SPECIAL SERVICES PRICE CHANGES
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Special services product
Percent
change
Collect on Delivery ................................................................................................................................................................
Express Mail Insurance .........................................................................................................................................................
Return Receipt .......................................................................................................................................................................
Special Handling Prices ........................................................................................................................................................
Stamp Fulfillment Services ....................................................................................................................................................
Delivery Confirmation Service ...............................................................................................................................................
Confirm ..................................................................................................................................................................................
Periodicals Additional Entry Fee Application ........................................................................................................................
Periodicals Original Entry Fee Application ............................................................................................................................
Caller Service ........................................................................................................................................................................
Post Office Boxes ..................................................................................................................................................................
9.2
7.9
7.5
16.8
0.0
¥27.1*
Prices remain at zero.
Eliminated.
Increases.
5.9
5 percent overall; no increase for Size 1
boxes; increases for
larger boxes.
6.2
33.3
Stamped Envelopes ..............................................................................................................................................................
Stamped Cards ......................................................................................................................................................................
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TABLE 10—SPECIAL SERVICES PRICE CHANGES—Continued
Special services product
Percent
change
International Certificates of Mailing .......................................................................................................................................
Set equal to equivalent
domestic service.
* Based in part on setting the fee for retail Delivery Confirmation service (for Package Services and Priority) and the fee for electronic Delivery
Confirmation service (for Parcel Post) at zero.
Id. at 30–32.
IV. Preferred Mail and Worksharing
Discounts
Preferred mail. The Adjustment
Notice includes the Postal Service’s
explanation that it implemented section
3626 pricing requirements in the same
manner as in the Docket No. R2012–3
price change, and notes the Commission
concluded the Postal Service’s
interpretation of section 3626 is
appropriate. Id. at 32. The Postal Service
identifies each of the preferred products
or components (Within County
Periodicals, Nonprofit and Classroom
Periodicals, Science of Agriculture
Periodicals advertising pounds,
Nonprofit Standard Mail, and Library
Mail) and describes how the planned
adjustments comport with applicable
statutory factors. Id. at 32–33.
Consistency with 39 U.S.C. 3627 and
3629. The Adjustment Notice observes
that neither of these sections is
implicated by the price change, as the
Postal Service does not seek to alter free
rates (section 3627) or change the
eligibility requirements for nonprofit
rates. Id. at 34.
Workshare discounts. The Adjustment
Notice includes the Postal Service’s
justification and explanation, in
accordance with rules 3010.14(b)(5) and
(6), for workshare discounts that exceed
100 percent of avoided costs or that are
substantially below 100 percent for each
affected class or individual product. Id.
at 34–53.
V. MCS Changes
The Adjustment Notice, in
conformance with rule 3010.14(b)(9),
identifies numerous changes to the
MCS. Certain substantive changes are
identified by the Postal Service. Id. at
54–55. Attachment A to the Adjustment
Notice presents price and classification
changes. Id. at 53.
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VI. Administrative Actions
The Commission hereby establishes a
formal docket, captioned Docket No.
R2013–1, Notice of Market-Dominant
Price Adjustment, to conduct the review
of the Postal Service’s planned price
adjustments mandated in 39 U.S.C.
3622. The Commission has posted the
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16:06 Oct 18, 2012
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Adjustment Notice on the Commission’s
Web site (https://www.prc.gov), and has
made the Adjustment Notice available
for copying and inspection during the
agency’s regular business hours of 8:00
a.m. to 4:30 p.m. weekdays, except
Federal holidays.
Public comment period. The
Commission‘s rules provide a period of
20 days from the date of the Postal
Service’s filing for public comment. 39
CFR 3010.13(a)(5). Comments by
interested persons are due no later than
October 31, 2012. Interested persons are
encouraged to review the Postal
Service’s Adjustment Notice and
workpapers in their entirety.
Commission rule 3010.13(b) further
provides that public comments are to
focus primarily on whether the planned
price adjustments comply with the
following mandatory requirements
under the Postal Accountability and
Enhancement Act (PAEA):
(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.
Participation and designated filing
method. Interested persons are not
required to file a notice of intervention
prior to submitting comments. Instead,
they are to submit comments
electronically via the Commission’s
Filing Online system, unless a waiver is
obtained. Instructions for obtaining an
account to file documents online may be
found on the Commission’s Web site
(https://www.prc.gov), or by contacting
the Commission’s Docket Section staff at
202–789–6846.
Persons without access to the Internet
or otherwise unable to file documents
electronically may request a waiver of
the electronic filing requirement by
filing a motion for waiver with the
Commission. The motion may be filed
along with any comments the person
may wish to submit in this docket.
Persons requesting a waiver may file
hardcopy documents with the
Commission either by mailing or by
PO 00000
Frm 00058
Fmt 4703
Sfmt 4703
hand delivery to the Office of the
Secretary, Postal Regulatory
Commission, 901 New York Avenue
NW., Suite 200, Washington, DC 20268–
0001 during regular business hours by
the date specified for such filing. Any
person needing assistance in requesting
a waiver may contact the Docket Section
at 202–789–6846. Hardcopy documents
will be scanned and posted on the
Commission’s Web site.
Appointment of Public
Representative. In conformance with 39
U.S.C. 505, the Commission appoints
Kenneth E. Richardson to represent the
interests of the general public in this
proceeding.
VII. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket
No. R2013–1 to consider planned price
adjustments in rates, fees and
classifications for market dominant
postal products and services identified
in the Postal Service’s October 11, 2012
Adjustment Notice.
2. Comments by interested persons on
the planned price adjustments are due
no later than October 31, 2012.
3. Pursuant to 39 U.S.C. 505, the
Commission appoints Kenneth E.
Richardson 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.
By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2012–25761 Filed 10–18–12; 8:45 am]
BILLING CODE 7710–FW–P
POSTAL SERVICE
Market Test of Experimental Product—
Metro Post
Postal ServiceTM.
ACTION: Notice.
AGENCY:
The Postal Service gives
notice of a market test of an
experimental product in accordance
with statutory requirements.
DATES: Effective date: October 19, 2012.
SUMMARY:
E:\FR\FM\19OCN1.SGM
19OCN1
]]>Agencies
[Federal Register Volume 77, Number 203 (Friday, October 19, 2012)]
[Notices]
[Pages 64362-64366]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-25761]
=======================================================================
-----------------------------------------------------------------------
POSTAL REGULATORY COMMISSION
[Docket No. R2013-1; Order No. 1501]
Postal Rate and Classification Changes
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
-----------------------------------------------------------------------
[[Page 64363]]
SUMMARY: The Commission is noticing a recently-filed Postal Service
notice of annual price adjustments for all market dominant classes of
mail. The adjustments include a one-cent increase in the price of
First-Class Stamp (from 45 cents to 46 cents). The Postal Service is
also planning to make mail classification changes. This notice
addresses procedural steps associated with this filing and invites
public comment.
DATES: Comments are due: October 31, 2012.
ADDRESSES: Submit comments electronically via the Commission's Filing
Online system at http:www.prc.gov. Commenters who cannot submit their
views electronically should contact the person identified in the FOR
FURTHER INFORMATION CONTACT portion of the preamble for advice on
alternatives to electronic filing.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel,
at 202-789-6824.
Table of Contents
I. Overview
II. Promotions
III. Summary of Price Changes by Class of Mail
IV. Preferred Mail and Worksharing Discounts
V. MCS Changes
VI. Administrative Actions
VII. Ordering Paragraphs
SUPPLEMENTARY INFORMATION:
I. Overview
A. Index-based Price Changes for Market Dominant Classes of Mail
On October 11, 2012, the Postal Service filed notice, pursuant to
39 U.S.C. 3622 and 39 CFR part 3010, of plans to adjust prices for
market dominant products by amounts which, on average, are, with one
exception, at or below the statutory price cap of 2.570 percent for
each class of mail.\1\ The planned adjustments affect both domestic and
international market dominant products and are scheduled to take effect
January 27, 2013.
---------------------------------------------------------------------------
\1\ United States Postal Service Notice of Market-Dominant Price
Adjustment at 3, October 11, 2012 (Adjustment Notice). The overall
increase for Special Services is 2.850 percent.
---------------------------------------------------------------------------
The Postal Service states that it has inflation-based price
adjustment authority of 2.570 percent based on the Consumer Price Index
for All Urban Consumers, U.S. All Items (the ``CUUR0000SA0'') series
(CPI-U). Id. The Postal Service also states that it has unused rate
authority (as indicated in the following table) and will use some of
this authority for Special Services. Id.
Table 1--Available Unused Price Adjustment Authority
------------------------------------------------------------------------
Unused
Market dominant class authority (%)
------------------------------------------------------------------------
First-Class Mail....................................... -0.530
Standard Mail.......................................... -0.380
Periodicals............................................ -0.562
Package Services....................................... -0.533
Special Services....................................... 2.394
------------------------------------------------------------------------
Id.
The Postal Service asserts that it is authorized to raise prices
for each class by the percentages in the following table.
Table 2--Price Adjustment Authority by Class
------------------------------------------------------------------------
Price
Market dominant class adjustment
authority (%)
------------------------------------------------------------------------
First-Class Mail....................................... 2.570
Standard Mail.......................................... 2.570
Periodicals............................................ 2.570
Package Services....................................... 2.570
Special Services....................................... 4.964
------------------------------------------------------------------------
Id. at 4.
The following table presents the Postal Service's planned
percentage price changes by class.
Table 3--2013 Price Change Percentage by Class
------------------------------------------------------------------------
Price change
Market dominant class (%)
------------------------------------------------------------------------
First-Class Mail....................................... 2.570
Standard Mail.......................................... 2.570
Periodicals............................................ 2.560
Package Services....................................... 2.569
Special Services....................................... 2.850
------------------------------------------------------------------------
Id. at 6.
In some instances, price adjustments for products within classes
vary from the average, sometimes substantially. Interested persons are
encouraged to review the Adjustment Notice and workpapers for specific
details.
Unused authority after the 2013 price change. The following table
identifies the unused price adjustment authority the Postal Service
calculates as available following the 2013 price change.
Table 4--Unused Pricing Authority Available Following Docket No. R2013-1
Price Changes
------------------------------------------------------------------------
Percentage
Class points
------------------------------------------------------------------------
First-Class Mail:
R2012-3.............................................. -0.530
R2013-1.............................................. 0.000
��������������������������������������������������������
Total.............................................. -0.530
��������������������������������������������������������
Standard Mail:
R2012-3.............................................. -0.380
R2013-1.............................................. 0.000
��������������������������������������������������������
Total.............................................. -0.380
��������������������������������������������������������
Periodicals:
R2012-3.............................................. -0.562
R2013-1.............................................. 0.010
��������������������������������������������������������
Total.............................................. -0.552
��������������������������������������������������������
Package Services:
R2012-3.............................................. -0.533
R2013-1.............................................. 0.001
��������������������������������������������������������
Total.............................................. -0.532
��������������������������������������������������������
Special Services:
R2012-3.............................................. 2.394
R2013-1.............................................. -0.280
��������������������������������������������������������
Total.............................................. 2.114
------------------------------------------------------------------------
Id. at 6-7.
Classification changes. The Adjustment Notice identifies numerous
substantive classification changes in a bulleted list. Id. at 54-55.
Attachment A presents these changes as well as formatting and wording
changes. Id. at 53-54.
B. Format and Content of Adjustment Notice
The Adjustment Notice includes a brief introductory section, four
parts, and four attachments.
The introductory section of the Adjustment Notice includes a
certification, in accordance with rule 3010.14(a)(3), that the Postal
Service will provide widespread notice of the planned adjustments prior
to the planned implementation date. Id. at 1. It identifies Greg Hall
as the Postal Service official who will respond to queries from the
Commission. Id. at 2.
Part I discusses compliance with the price cap. Id. at 2-7. Part II
describes several temporary promotions. It also discusses how a portion
of the related revenue loss will be integrated into the price cap
calculations for First-Class Mail and Standard Mail. Id. at 7-9. Part
III discusses prices in more detail, including workshare discounts. It
also addresses the consistency of prices with the objectives and
factors of 39 U.S.C. 3622 and the preferential pricing requirements of
39 U.S.C. 3626. Id. at 9-53. Part IV describes related Mail
[[Page 64364]]
Classification Schedule (MCS) changes.\2\ Id. at 53-55.
---------------------------------------------------------------------------
\2\ Part IV is identified as an additional Part III in the
Adjustment Notice.
---------------------------------------------------------------------------
Attachments. Attachment A presents MCS changes in legislative
format and new price schedules. Attachment B presents workshare
discounts and related information. Attachment C presents the Postal
Service's price cap calculation. The price cap calculation includes, in
conformance with rule 3010.22(b), an adjustment to the moving average
because less than 12 months have passed since the most recent price
change (filed on January 13, 2011). Attachment D presents the 2013
Mailing Services Promotions Calendar Overview. Id. at 5.
Workpapers. The Postal Service filed nine sets of workpapers:
First Class Mail Cap Compliance: USPS-LR-R2013-1/1
First Class Mail International Cap Compliance: USPS-LR-R2013-1/NP1
Standard Mail Cap Compliance: USPS-LR-R2013-1/2
Periodicals Cap Compliance: USPS-LR-R2013-1/3
Package Services Cap Compliance: USPS-LR-R2013-1/4
Special Services Cap Compliance: USPS-LR-R2013-1/5
Derivation of Volumes for Earned Value Reply Mail Promotion: USPS-LR-
R2013-1/6
Standard Mail Contribution Model: USPS-R2013-1/7
FY 2011 Delivery Costs by Shape: USPS-R2013-1/8
Id. at 4-5.
Each set of workpapers includes a preface with an explanation of
its contents. Id. at 5. In addition, the preface for the first five
workpapers provides an overview, a discussion of adjustments to the
billing determinants for the four quarters ending FY 2012, quarter 3,
and an explanation of revenue calculations. Id. The First-Class Mail
and Standard Mail workpapers also incorporate data on promotion
volumes, based on the volumes from the 2011 Mobile Barcode Promotion
and USPS-LR-R2012-1/6.
II. Promotions
As part of this filing, the Postal Service seeks approval of six
promotions during calendar year 2013.\3\ The following table identifies
the promotion and timeframe.
---------------------------------------------------------------------------
\3\ In the past, the Postal Service has not included promotional
filings in its annual market dominant price adjustment filing. The
Postal Service states that it does so this year in response to
customers' concern about insufficient time to fully participate in
the promotions. Id. at 7.
Table 5--Calendar Year 2013 Promotion Timeframe
------------------------------------------------------------------------
Promotion Timeframe
------------------------------------------------------------------------
Mobile Coupon/Click-to-Call..... March-April 2013.
Earned Value Reply Mail April-June 2013.
Promotion.
Emerging Technology............. August-September 2013.
Picture Permit.................. August-September 2013.
Product Samples................. August-September 2013.
Mobile Buy-it-Now............... November-December 2013.
------------------------------------------------------------------------
Id. at 7-8.
The Postal Service states that it will seek to recover some of the
revenue forgone from these promotions by factoring the lost revenue
into the price cap calculation. Id. at 9. The Postal Service asserts
that a conservative estimate of the value of four of the promotions
(Mobile Coupon, Click-to-Call, Emerging Technologies, Mobile Buy-it-
Now, and Earned Value Reply Mail), based on historical data on
qualifying volume, is approximately $33.4 million.\4\ Id.
---------------------------------------------------------------------------
\4\ See USPS-LR-R2013-1/1 and USPS-LR-R2013-1/2 for the basis of
this calculation.
---------------------------------------------------------------------------
III. Summary of Price Changes by Class of Mail
A. First-Class Mail
The following table identifies the Postal Service's planned
percentage price changes for its First-Class Mail products.
Table 6--First-Class Mail Price Changes
------------------------------------------------------------------------
Percent
First-class mail product change
------------------------------------------------------------------------
Single-Piece Letters and Cards............................... 2.283
Presort Letters and Cards.................................... 2.555
Flats........................................................ 2.675
Parcels...................................................... 4.971
International................................................ 7.923
Overall...................................................... 2.570
------------------------------------------------------------------------
Id. at 14.
The first ounce First-Class Mail price. The price of a stamp for
the first ounce of single-piece letter mail (including the Forever
stamp), increases by one cent under the Postal Service's plan, from 45
cents to 46 cents. Id.
Single-piece letters and cards. The overall increase of 2.283
percent for single-piece letters and cards includes a one cent increase
in the price for single-piece cards (to 33 cents). Id. at 14-15. The
price for single-piece residual letters (mainly permit imprint
letters), which the Postal Service is introducing for calendar year
2013, will be 48 cents for up to 2 ounces. Id. at 15.
Presort letters and cards. The Postal Service states that the
overall increase for this product is slightly below the overall average
for First-Class Mail. The Postal Service continues to price Automated
Area Distribution Center (AADC) and 3-Digit letters at the same level
and extends this structure to Presort Automation Postcards. Id. at 16.
The Postal Service continues to offer the free second ounce for all
Presort First-Class Mail letters. Id. at 16.
Flats. The overall increase for Flats is 2.675 percent, slightly
above the CPI-U cap of 2.57 percent. Id. Price changes within this
product vary. Id.
Parcels. Single-Piece (Retail) Parcels (which are the only parcel-
shaped First-Class Mail pieces that remain as market dominant) receive
a 4.971 percent increase, higher than the overall increase for First-
Class Mail. Id. The Postal Service states that this above-average
increase is expected to improve cost coverage for this product, which
it considers low by First-Class Mail standards. Id. at 17-18.
Promotions--revenue forgone implications. The Adjustment Notice
includes a summary of the methodology the Postal Service plans to use
to recover some of the revenue forgone resulting from its 2013 First-
Class Mail promotions. Id. at 18-19. The
[[Page 64365]]
discussion includes identification of the four promotional categories
that will be included in recovery of revenue forgone and related data
and information. Id. at 18-19.
International. Prices for Outbound Single-Piece First-Class Mail
International (FCMI) increase by 14.3 percent, significantly above the
First-Class Mail average of 2.570 percent. Id. at 19. The Postal
Service asserts that the increase is necessary to increase contribution
and improve cost coverage for FCMI letters at the one-ounce weight step
and to accommodate introduction of the International Forever stamp. Id.
The International Forever stamp will be sold at the price of a single-
piece FCMI first ounce machinable letter and have a postage value
equivalent to the price of a single-piece FCMI first ounce machinable
letter in effect at time of use. Id.
B. Standard Mail
The following table presents the Postal Service's planned
percentage price changes for Standard Mail products.
Table 7--Standard Mail Price Changes
------------------------------------------------------------------------
Percent
Standard mail product change
------------------------------------------------------------------------
Letters...................................................... 2.722
Flats........................................................ 2.570
Parcels...................................................... 3.081
High Density/Saturation Letters.............................. 2.207
High Density/Saturation Flats and Parcels.................... 2.275
Carrier Route................................................ 3.133
Overall...................................................... 2.570
------------------------------------------------------------------------
Id. at 19.
Letters receive an above-average increase; Flats receive an average
(at cap) increase. Id. at 20. The Adjustment Notice includes a
discussion of the Postal Service's rationale for this approach,
including reference to the Commission's finding of noncompliance for
Standard Mail Flats in the 2010 Annual Compliance Report. Id. at 20-25.
The Adjustment Notice also addresses other Standard Mail pricing. Id.
at 25. This includes a new Simple Samples Initiative and a new High
Density Plus price tier. Id. at 26. Detached Address Labels prices
increase from 3.0 cents to 3.1 cents. Id. The Postal Service is not
proposing any price changes for Every Door Direct Mail (which will
remain at 16 cents) or for optional picture permit indicia (which will
remain at 2 cents). Id. at 27. However, the Postal Service is extending
the availability of picture permits to flats. Id.
The Postal Service states that the methodology for recovering
promotion-related revenue forgone in Standard Mail follows the approach
for First-Class Mail. Id. at 26-27.
C. Periodicals
The following table presents the Postal Service's planned
percentage price changes for the Periodicals class.
Table 8--Periodicals Price Changes
------------------------------------------------------------------------
Percent
Periodicals product change
------------------------------------------------------------------------
Outside County............................................... 2.546
Within County................................................ 2.911
Overall...................................................... 2.560
------------------------------------------------------------------------
Id. at 27.
The Postal Service states that the Periodicals price change
reflects recognition of this product's value, despite cost coverage
shortfall. Id. at 27-28. It states that it cannot use its pricing
authority to fully cover costs, as both Periodicals are failing to
cover costs by substantially more than the cap. Id. at 28.
D. Package Services
The following table presents the Postal Service's planned
percentage price changes for the Package Services class.
Table 9--Package Services Price Changes
------------------------------------------------------------------------
Percent
Package services product change
------------------------------------------------------------------------
Alaska Bypass Service...................................... 3.000
Bound Printed Matter Flats................................. 0.002
Bound Printed Matter Parcels............................... 3.424
Media Mail and Library Mail................................ 3.472
Inbound Surface Parcel Post*............................... 0.000
Overall.................................................... 2.569
------------------------------------------------------------------------
* Prices for Inbound Surface Parcel Post (at UPU rates) are determined
by the Universal Postal Union and are not under the Postal Service's
control. These prices are adjusted by the Postal Operations Council.
Id.
E. Special Services
The overall increase for Special Services is 2.850 percent. Id. at
29. The Postal Service states that for most of the products, fee
increases were designed to be close to 4.5 percent, while maintaining
consistency with historical rounding constraints (to simplify
transactions for customers). Id. at 30. The following table, based on
price changes identified in the body of the Adjustment Notice,
indicates the differing effects of the Postal Service's Special
Services pricing decisions.
Table 10--Special Services Price Changes
------------------------------------------------------------------------
Special services product Percent change
------------------------------------------------------------------------
Collect on Delivery................. 9.2
Express Mail Insurance.............. 7.9
Return Receipt...................... 7.5
Special Handling Prices............. 16.8
Stamp Fulfillment Services.......... 0.0
Delivery Confirmation Service....... -27.1*
Confirm............................. Prices remain at zero.
Periodicals Additional Entry Fee Eliminated.
Application.
Periodicals Original Entry Fee Increases.
Application.
Caller Service...................... 5.9
Post Office Boxes................... 5 percent overall; no increase for
Size 1 boxes; increases for
larger boxes.
Stamped Envelopes................... 6.2
Stamped Cards....................... 33.3
[[Page 64366]]
International Certificates of Set equal to equivalent domestic
Mailing. service.
------------------------------------------------------------------------
* Based in part on setting the fee for retail Delivery Confirmation
service (for Package Services and Priority) and the fee for electronic
Delivery Confirmation service (for Parcel Post) at zero.
Id. at 30-32.
IV. Preferred Mail and Worksharing Discounts
Preferred mail. The Adjustment Notice includes the Postal Service's
explanation that it implemented section 3626 pricing requirements in
the same manner as in the Docket No. R2012-3 price change, and notes
the Commission concluded the Postal Service's interpretation of section
3626 is appropriate. Id. at 32. The Postal Service identifies each of
the preferred products or components (Within County Periodicals,
Nonprofit and Classroom Periodicals, Science of Agriculture Periodicals
advertising pounds, Nonprofit Standard Mail, and Library Mail) and
describes how the planned adjustments comport with applicable statutory
factors. Id. at 32-33.
Consistency with 39 U.S.C. 3627 and 3629. The Adjustment Notice
observes that neither of these sections is implicated by the price
change, as the Postal Service does not seek to alter free rates
(section 3627) or change the eligibility requirements for nonprofit
rates. Id. at 34.
Workshare discounts. The Adjustment Notice includes the Postal
Service's justification and explanation, in accordance with rules
3010.14(b)(5) and (6), for workshare discounts that exceed 100 percent
of avoided costs or that are substantially below 100 percent for each
affected class or individual product. Id. at 34-53.
V. MCS Changes
The Adjustment Notice, in conformance with rule 3010.14(b)(9),
identifies numerous changes to the MCS. Certain substantive changes are
identified by the Postal Service. Id. at 54-55. Attachment A to the
Adjustment Notice presents price and classification changes. Id. at 53.
VI. Administrative Actions
The Commission hereby establishes a formal docket, captioned Docket
No. R2013-1, Notice of Market-Dominant Price Adjustment, to conduct the
review of the Postal Service's planned price adjustments mandated in 39
U.S.C. 3622. The Commission has posted the Adjustment Notice on the
Commission's Web site (https://www.prc.gov), and has made the Adjustment
Notice available for copying and inspection during the agency's regular
business hours of 8:00 a.m. to 4:30 p.m. weekdays, except Federal
holidays.
Public comment period. The Commission`s rules provide a period of
20 days from the date of the Postal Service's filing for public
comment. 39 CFR 3010.13(a)(5). Comments by interested persons are due
no later than October 31, 2012. Interested persons are encouraged to
review the Postal Service's Adjustment Notice and workpapers in their
entirety.
Commission rule 3010.13(b) further provides that public comments
are to focus primarily on whether the planned price adjustments comply
with the following mandatory requirements under the Postal
Accountability and Enhancement Act (PAEA):
(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.
Participation and designated filing method. Interested persons are
not required to file a notice of intervention prior to submitting
comments. Instead, they are to submit comments electronically via the
Commission's Filing Online system, unless a waiver is obtained.
Instructions for obtaining an account to file documents online may be
found on the Commission's Web site (https://www.prc.gov), or by
contacting the Commission's Docket Section staff at 202-789-6846.
Persons without access to the Internet or otherwise unable to file
documents electronically may request a waiver of the electronic filing
requirement by filing a motion for waiver with the Commission. The
motion may be filed along with any comments the person may wish to
submit in this docket. Persons requesting a waiver may file hardcopy
documents with the Commission either by mailing or by hand delivery to
the Office of the Secretary, Postal Regulatory Commission, 901 New York
Avenue NW., Suite 200, Washington, DC 20268-0001 during regular
business hours by the date specified for such filing. Any person
needing assistance in requesting a waiver may contact the Docket
Section at 202-789-6846. Hardcopy documents will be scanned and posted
on the Commission's Web site.
Appointment of Public Representative. In conformance with 39 U.S.C.
505, the Commission appoints Kenneth E. Richardson to represent the
interests of the general public in this proceeding.
VII. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket No. R2013-1 to consider
planned price adjustments in rates, fees and classifications for market
dominant postal products and services identified in the Postal
Service's October 11, 2012 Adjustment Notice.
2. Comments by interested persons on the planned price adjustments
are due no later than October 31, 2012.
3. Pursuant to 39 U.S.C. 505, the Commission appoints Kenneth E.
Richardson 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.
By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2012-25761 Filed 10-18-12; 8:45 am]
BILLING CODE 7710-FW-P
