Standard Mail Pricing, 71643-71644 [2012-29067]
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Federal Register / Vol. 77, No. 232 / Monday, December 3, 2012 / Notices
characteristics. Id. at 3. It notes that the
pricing formula and classification
established in the Governors’ Decision
No. 08–7 ensure that each GEPS
contract meets the criteria of 39 U.S.C.
3633 and related regulations. Id. The
Postal Service further asserts that the
functional terms of the two contracts are
the same and the benefits are
comparable. Id.
The Postal Service states that prices
may differ, depending on when an
agreement is signed, due to updated
costing information. Id. at 4. It also
identifies other differences in
contractual terms, but asserts that the
differences do not affect either the
fundamental service being offered or the
fundamental structure of the
contract.3 Id. at 4–6.
Term. The term of the agreement is
one calendar year (from the effective
date), unless terminated sooner
pursuant to contractual provisions. Id.
Attachment 1 at 7. The effective date is
tied to receipt of regulatory approval,
but no later than 30 days after such
approval. Id.
III. Commission Action
The Commission establishes Docket
No. CP2013–21 for consideration of
matters raised in the Notice. Interested
persons may submit comments on
whether the Postal Service’s contract is
consistent with the requirements of 39
CFR 3015.5 and the policies of 39 U.S.C.
3632 and 3633. Comments are due no
later than December 6, 2012. The public
portions of the Postal Service’s filing
can be accessed via the Commission’s
Web site at https://www.prc.gov.
Information on how to obtain access to
nonpublic material appears at 39 CFR
3007.40.
The Commission appoints James F.
Callow to represent the interest of the
general public (Public Representative)
in this case.
By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2012–29066 Filed 11–30–12; 8:45 am]
BILLING CODE 7710–FW–P
POSTAL REGULATORY COMMISSION
[Docket No. R2013–1; Order No.1556]
Standard Mail Pricing
Postal Regulatory Commission.
Notice.
AGENCY:
ACTION:
The Commission is noticing a
recent Postal Service filing concerning
Standard Mail pricing and related
matters. This notice informs the public
of the filing, invites public comment,
and takes other administrative steps.
DATES: Comments are due: December 4,
2012.
ADDRESSES: Submit comments
electronically via the Commission’s
Filing Online system at https://
www.prc.gov. Those who cannot submit
comments electronically should contact
the person identified in the FOR FURTHER
INFORMATION CONTACT section by
telephone for advice on filing
alternatives.
FOR FURTHER INFORMATION CONTACT:
Stephen L. Sharfman, General Counsel,
at 202–789–6820.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Table of Contents
I. Background
II. Summary of Proposed Changes to
Standard Mail Rates
III. Nonprofit Discounts
IV. Mail Classification Schedule Changes
(MCS)
V. Administrative Actions
It is ordered:
1. The Commission establishes Docket
No. CP2013–21 for consideration of
matters raised in the Postal Service’s
Notice.
2. Pursuant to 39 U.S.C. 505, the
Commission designates James F. Callow
to serve as an officer of the Commission
(Public Representative) to represent the
interests of the general public in this
proceeding.
3. Comments are due no later than
December 6, 2012.
I. Background
In Order No. 1541, the Commission
determined provisionally that, pursuant
to 39 CFR 3010.13(j), the planned
adjustments do not violate the price cap
in 39 U.S.C. 3622(d); are consistent
with, or justified by an exception to, the
workshare discount limitations in 39
U.S.C. 3622(e); and establish prices that
satisfy 39 U.S.C. 3626.1 In addition,
however, the Commission found that
the planned Standard Mail Flats rates
failed to satisfy the applicable directives
set forth in the FY 2010 Annual
Compliance Determination (ACD),
3 The list includes, among other things, deletion
of an article that appears in the baseline contract,
the addition of articles, and related renumbering of
articles. See id. at 4–6.
1 Order No. 1541, Order on Price Adjustments for
Market Dominant Products and Related Mail
Classification Changes, November 16, 2012 (Order
No. 1541).
IV. Ordering Paragraphs
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4. The Secretary shall arrange for
publication of this order in the Federal
Register.
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14:30 Nov 30, 2012
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71643
which were further clarified and
reaffirmed in Order No. 1427 and Order
No. 1472.2 Order No. 1541 at 2.
Accordingly, the Commission remanded
all Standard Mail rates to allow the
Postal Service to modify its planned
rates to comply with the FY 2010 ACD
and applicable statutory standards. In
addition, the Commission requested the
Postal Service to respond to certain
other rate matters, each of which is
discussed below.
Pursuant to Order No. 1541, on
November 26, 2012, the Postal Service
filed revised prices for Standard Mail
Flats.3 It also addressed the
miscellaneous rate matters discussed in
Order No. 1541.
II. Summary of Proposed Changes to
Standard Mail Rates
The revised prices for Standard Mail
Flats reflect an above-average increase
of 2.617 percent. No other Standard
Mail prices were changed. Response at
3.
The following table presents the
Postal Service’s planned percentage
price changes for Standard Mail
products.
STANDARD MAIL PRICE CHANGES
Standard mail product
Letters .......................................
Flats ..........................................
Parcels ......................................
High Density/Saturation Letters
High Density/Saturation Flats
and Parcels ...........................
Carrier Route ............................
Overall ......................................
Percent
change
(%)
2.610
2.617
3.081
2.059
2.092
2.907
2.569
To achieve the above-average price
increase for the Standard Mail Flats
product, the Postal Service made two
principal changes to its initially filed
planned Standard Mail Flats price
adjustments. First, it reduced the
prebarcoding discount between
automation and non-automation Flats
from 7.5 to 5.5 cents. Second, the Postal
Service used the correct avoided cost of
4.6 cents for automation 3-Digit Flats.
Id. at 3–4. As a result of these changes,
some rate cells would receive a price
decrease, so a number of minor
mechanical adjustments were also made
to mitigate the deviation from the
desired overall price increase. Id. at 4.
2 Docket No. ACR2010, Order on Remand, August
9, 2012 (Order No. 1427); Docket No. ACR2010–R,
Notice and Order Confirming Termination of Stay,
September 21, 2012 (Order No. 1472).
3 United States Postal Service Response to Order
No. 1541, November 26, 2012 (Response).
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71644
Federal Register / Vol. 77, No. 232 / Monday, December 3, 2012 / Notices
emcdonald on DSK67QTVN1PROD with NOTICES
The Postal Service acknowledges that
the Commission’s FY 2010 ACD Order
requested that the Postal Service
provide ‘‘ ‘an explanation of how the
proposed prices will move the Flats cost
coverage toward 100 percent’ ’’ (footnote
omitted). Id. It states that given the short
amount of time allowed to prepare
revised rate adjustments and to obtain
Governors’ approval, it has not been
able to assess the full impact on the
revised price increase on Standard Mail
Flats’ projected cost coverage. Id. It also
states that although it is complying with
the Commission’s directive by
proposing an above-average price
increase for Standard Mail Flats, it
believes that the Commission has
overstepped its authority by ordering
such an increase. Id. at 5.
III. Nonprofit Discounts
In Order No. 1541, the Commission
requested that the Postal Service explain
why different discount levels for
Commercial and Nonprofit Standard
Mail are consistent with the Postal
Accountability and Enhancement Act
(PAEA) and not contrary to National
Easter Seal Society v. USPS, 656 F.2d
754 (DC Cir 1981). Order No. 1541 at 51.
The Postal Service maintains that
National Easter Seal Society did not
hold that phasing in nonprofit discounts
would necessarily be discriminatory,
but rather simply required that the
Postal Service have a reasonable ground
for the phased in schedule. Response at
6.
The Postal Service states that ‘‘[t]he
varying presort discounts among
Commercial and Nonprofit Standard
Mail arise from the complex task of
designing rates that comply with 39
U.S.C. 3626(a)(6),’’ which requires that
the average revenue per piece from
nonprofit products equal, as nearly as
practicable, 60 percent of the average
revenue per piece from the
corresponding Commercial products. Id.
The complexity of this task may
‘‘preclude[] the Postal Service from
making Nonprofit presort discounts
identical to Commercial presort
discounts without setting the Nonprofit
base rate higher than would be most
efficient or preferable from a policy
perspective.’’ Id. at 7.
The Postal Service points out that, in
both previous rate cases and the current
docket, some nonprofit discounts have
varied from the corresponding
Commercial presort discounts. Id. The
Postal Service also filed updated pages
reflecting worksharing discounts and
benchmarks for Flats, High Density and
Saturation Letters, and High Density
and Saturation Flats/Parcels in
Attachment B to its Response. It has
VerDate Mar<15>2010
14:30 Nov 30, 2012
Jkt 229001
shown nonprofit discounts on a separate
line when they differ from Commercial
discounts, along with the other
discounts in the relevant category. Id.
Attachment B. The Postal Service states
that the passthroughs for nonprofit
discounts are all at 100 percent or
below, and can be justified the same
way as the corresponding Commercial
discounts.4 Id. at 8.
IV. Mail Classification Schedule
Changes (MCS)
In conformance with 39 CFR
3010.14(b)(9), the Postal Service
identifies changes to the Standard Mail
Flats MCS. Attachment A to the
Response presents price and
classification changes.
V. Administrative Actions
Public comment period. The
Commission‘s rules provide a period of
10 days from the date of the Postal
Service’s filing for public comment. 39
CFR 3010.13(f). The Postal Service plans
to implement the planned prices on
January 27, 2013. To permit the
Commission to fully consider this
matter and to enable the Postal Service
to provide the requisite 45 day notice
before implementing the planned prices,
the Commission finds it appropriate to
shorten the comment period. Comments
by interested persons are due no later
than December 4, 2012.
Interested persons are encouraged to
review the Postal Service’s Response
and workpapers in their entirety.
Pursuant to Commission rule
3010.13(f), comments should address
subjects identified in rule 3010.13(b)
and may address the substance of the
Postal Service’s Response.
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 at prcdockets@prc.gov or via telephone 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
4 The Postal Service also refers to Order No. 1541
n.65 in Attachment C of its Response, regarding the
High Density Plus rate category.
PO 00000
Frm 00072
Fmt 4703
Sfmt 4703
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 Commission’s
docket section at prc-dockets@prc.gov or
via telephone at 202–789–6846.
Hardcopy documents will be scanned
and posted on the Commission’s Web
site.
Public Representative. Kenneth E.
Richardson will continue to serve as
Public Representative in this
proceeding.5
It is ordered:
1. Comments by interested persons on
the planned price adjustments are due
no later than December 4, 2012.
2. 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. 2012–29067 Filed 11–30–12; 8:45 am]
BILLING CODE 7710–FW–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68293; File No. SR–Phlx–
2012–132]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
EEM Options Position Limits
November 27, 2012.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on November
13, 2012, NASDAQ OMX PHLX LLC
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I and
II below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
5 See Order No. 1501, Notice and Order on
Planned Rate Adjustments and Classification
Changes for Market Dominant Postal Products,
October 15, 2012, at 16.
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
E:\FR\FM\03DEN1.SGM
03DEN1
]]>Agencies
[Federal Register Volume 77, Number 232 (Monday, December 3, 2012)]
[Notices]
[Pages 71643-71644]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-29067]
-----------------------------------------------------------------------
POSTAL REGULATORY COMMISSION
[Docket No. R2013-1; Order No.1556]
Standard Mail Pricing
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Commission is noticing a recent Postal Service filing
concerning Standard Mail pricing and related matters. This notice
informs the public of the filing, invites public comment, and takes
other administrative steps.
DATES: Comments are due: December 4, 2012.
ADDRESSES: Submit comments electronically via the Commission's Filing
Online system at https://www.prc.gov. Those who cannot submit comments
electronically should contact the person identified in the FOR FURTHER
INFORMATION CONTACT section by telephone for advice on filing
alternatives.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel,
at 202-789-6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. Summary of Proposed Changes to Standard Mail Rates
III. Nonprofit Discounts
IV. Mail Classification Schedule Changes (MCS)
V. Administrative Actions
I. Background
In Order No. 1541, the Commission determined provisionally that,
pursuant to 39 CFR 3010.13(j), the planned adjustments do not violate
the price cap in 39 U.S.C. 3622(d); are consistent with, or justified
by an exception to, the workshare discount limitations in 39 U.S.C.
3622(e); and establish prices that satisfy 39 U.S.C. 3626.\1\ In
addition, however, the Commission found that the planned Standard Mail
Flats rates failed to satisfy the applicable directives set forth in
the FY 2010 Annual Compliance Determination (ACD), which were further
clarified and reaffirmed in Order No. 1427 and Order No. 1472.\2\ Order
No. 1541 at 2. Accordingly, the Commission remanded all Standard Mail
rates to allow the Postal Service to modify its planned rates to comply
with the FY 2010 ACD and applicable statutory standards. In addition,
the Commission requested the Postal Service to respond to certain other
rate matters, each of which is discussed below.
---------------------------------------------------------------------------
\1\ Order No. 1541, Order on Price Adjustments for Market
Dominant Products and Related Mail Classification Changes, November
16, 2012 (Order No. 1541).
\2\ Docket No. ACR2010, Order on Remand, August 9, 2012 (Order
No. 1427); Docket No. ACR2010-R, Notice and Order Confirming
Termination of Stay, September 21, 2012 (Order No. 1472).
---------------------------------------------------------------------------
Pursuant to Order No. 1541, on November 26, 2012, the Postal
Service filed revised prices for Standard Mail Flats.\3\ It also
addressed the miscellaneous rate matters discussed in Order No. 1541.
---------------------------------------------------------------------------
\3\ United States Postal Service Response to Order No. 1541,
November 26, 2012 (Response).
---------------------------------------------------------------------------
II. Summary of Proposed Changes to Standard Mail Rates
The revised prices for Standard Mail Flats reflect an above-average
increase of 2.617 percent. No other Standard Mail prices were changed.
Response at 3.
The following table presents the Postal Service's planned
percentage price changes for Standard Mail products.
Standard Mail Price Changes
------------------------------------------------------------------------
Percent
Standard mail product change (%)
------------------------------------------------------------------------
Letters.................................................... 2.610
Flats...................................................... 2.617
Parcels.................................................... 3.081
High Density/Saturation Letters............................ 2.059
High Density/Saturation Flats and Parcels.................. 2.092
Carrier Route.............................................. 2.907
Overall.................................................... 2.569
------------------------------------------------------------------------
To achieve the above-average price increase for the Standard Mail
Flats product, the Postal Service made two principal changes to its
initially filed planned Standard Mail Flats price adjustments. First,
it reduced the prebarcoding discount between automation and non-
automation Flats from 7.5 to 5.5 cents. Second, the Postal Service used
the correct avoided cost of 4.6 cents for automation 3-Digit Flats. Id.
at 3-4. As a result of these changes, some rate cells would receive a
price decrease, so a number of minor mechanical adjustments were also
made to mitigate the deviation from the desired overall price increase.
Id. at 4.
[[Page 71644]]
The Postal Service acknowledges that the Commission's FY 2010 ACD
Order requested that the Postal Service provide `` `an explanation of
how the proposed prices will move the Flats cost coverage toward 100
percent' '' (footnote omitted). Id. It states that given the short
amount of time allowed to prepare revised rate adjustments and to
obtain Governors' approval, it has not been able to assess the full
impact on the revised price increase on Standard Mail Flats' projected
cost coverage. Id. It also states that although it is complying with
the Commission's directive by proposing an above-average price increase
for Standard Mail Flats, it believes that the Commission has
overstepped its authority by ordering such an increase. Id. at 5.
III. Nonprofit Discounts
In Order No. 1541, the Commission requested that the Postal Service
explain why different discount levels for Commercial and Nonprofit
Standard Mail are consistent with the Postal Accountability and
Enhancement Act (PAEA) and not contrary to National Easter Seal Society
v. USPS, 656 F.2d 754 (DC Cir 1981). Order No. 1541 at 51. The Postal
Service maintains that National Easter Seal Society did not hold that
phasing in nonprofit discounts would necessarily be discriminatory, but
rather simply required that the Postal Service have a reasonable ground
for the phased in schedule. Response at 6.
The Postal Service states that ``[t]he varying presort discounts
among Commercial and Nonprofit Standard Mail arise from the complex
task of designing rates that comply with 39 U.S.C. 3626(a)(6),'' which
requires that the average revenue per piece from nonprofit products
equal, as nearly as practicable, 60 percent of the average revenue per
piece from the corresponding Commercial products. Id. The complexity of
this task may ``preclude[] the Postal Service from making Nonprofit
presort discounts identical to Commercial presort discounts without
setting the Nonprofit base rate higher than would be most efficient or
preferable from a policy perspective.'' Id. at 7.
The Postal Service points out that, in both previous rate cases and
the current docket, some nonprofit discounts have varied from the
corresponding Commercial presort discounts. Id. The Postal Service also
filed updated pages reflecting worksharing discounts and benchmarks for
Flats, High Density and Saturation Letters, and High Density and
Saturation Flats/Parcels in Attachment B to its Response. It has shown
nonprofit discounts on a separate line when they differ from Commercial
discounts, along with the other discounts in the relevant category. Id.
Attachment B. The Postal Service states that the passthroughs for
nonprofit discounts are all at 100 percent or below, and can be
justified the same way as the corresponding Commercial discounts.\4\
Id. at 8.
---------------------------------------------------------------------------
\4\ The Postal Service also refers to Order No. 1541 n.65 in
Attachment C of its Response, regarding the High Density Plus rate
category.
---------------------------------------------------------------------------
IV. Mail Classification Schedule Changes (MCS)
In conformance with 39 CFR 3010.14(b)(9), the Postal Service
identifies changes to the Standard Mail Flats MCS. Attachment A to the
Response presents price and classification changes.
V. Administrative Actions
Public comment period. The Commission`s rules provide a period of
10 days from the date of the Postal Service's filing for public
comment. 39 CFR 3010.13(f). The Postal Service plans to implement the
planned prices on January 27, 2013. To permit the Commission to fully
consider this matter and to enable the Postal Service to provide the
requisite 45 day notice before implementing the planned prices, the
Commission finds it appropriate to shorten the comment period. Comments
by interested persons are due no later than December 4, 2012.
Interested persons are encouraged to review the Postal Service's
Response and workpapers in their entirety.
Pursuant to Commission rule 3010.13(f), comments should address
subjects identified in rule 3010.13(b) and may address the substance of
the Postal Service's Response.
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 at prc-dockets@prc.gov or
via telephone 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 Commission's
docket section at prc-dockets@prc.gov or via telephone at 202-789-6846.
Hardcopy documents will be scanned and posted on the Commission's Web
site.
Public Representative. Kenneth E. Richardson will continue to serve
as Public Representative in this proceeding.\5\
---------------------------------------------------------------------------
\5\ See Order No. 1501, Notice and Order on Planned Rate
Adjustments and Classification Changes for Market Dominant Postal
Products, October 15, 2012, at 16.
---------------------------------------------------------------------------
It is ordered:
1. Comments by interested persons on the planned price adjustments
are due no later than December 4, 2012.
2. 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. 2012-29067 Filed 11-30-12; 8:45 am]
BILLING CODE 7710-FW-P
