Rate Adjustment Remand, 34937-34939 [2015-14965]
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Federal Register / Vol. 80, No. 117 / Thursday, June 18, 2015 / Notices
60-Day notice and request for
comments.
ACTION:
Federal Investigative Services
(FIS), U.S. Office of Personnel
Management (OPM) is notifying the
general public and other Federal
agencies that OPM is seeking Office of
Management and Budget (OMB)
approval of a revised information
collection control number 3206–0106,
Interview Survey Form, INV 10. OPM is
soliciting comments for this collection
as required by the Paperwork Reduction
Act of 1995, (Pub. L. 104–13, 44 U.S.C.
chapter 35), as amended by the ClingerCohen Act (Pub. L. 104–106). The Office
of Management and Budget is
particularly interested in comments
that:
1. Evaluate whether the proposed
collection of information is necessary
for the proper performance of the
functions of the agency, including
whether the information will have
practical utility;
2. Evaluate the accuracy of the
agency’s estimate of the burden of the
proposed collection of information,
including the validity of the
methodology and assumptions used;
3. Enhance the quality, utility, and
clarity of the information to be
collected; and
4. Minimize the burden of the
collection of information on those who
are to respond, including through the
use of appropriate automated,
electronic, mechanical, or other
technological collection techniques or
other forms of information technology,
e.g., permitting electronic submissions
of responses.
DATES: Comments are encouraged and
will be accepted until August 17, 2015.
This process is conducted in accordance
with 5 CFR 1320.8(d).
ADDRESSES: Interested persons are
invited to submit written comments on
the proposed information collection to
the Federal Investigative Services, U.S.
Office of Personnel Management, 1900 E
Street NW., Washington, DC 20415,
Attention: Donna McLeod or by
electronic mail at FISFormsComments@
opm.gov.
FOR FURTHER INFORMATION CONTACT: A
copy of this information collection, with
applicable supporting documentation,
may be obtained by contacting Federal
Investigative Services, U.S. Office of
Personnel Management, 1900 E Street
NW., Washington, DC 20415, Attention:
Donna McLeod or by electronic mail at
FISFormsComments@opm.gov.
SUPPLEMENTARY INFORMATION: The
Interview Survey Form, INV 10 is
mailed by OPM, to a random sampling
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SUMMARY:
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of record and personal sources
contacted during background
investigations when investigators have
performed fieldwork. The INV 10 is
used as a quality control instrument
designed to ensure the accuracy and
integrity of the investigative product.
The form queries the recipient about the
investigative procedure exhibited by the
investigator, the investigator’s
professionalism, and the information
discussed and reported. In addition to
the preformatted response options, OPM
invites the recipients to respond with
any other relevant comments or
suggestions.
OPM proposes the following changes.
To prevent confusion as to the meaning
of the current question ‘‘Were you
interviewed in private?’’ OPM proposes
to ask, ‘‘Were you interviewed alone (no
third party present)?’’ and ‘‘Were you
interviewed in a private setting or
private, enclosed space?’’ To provide
the respondent the opportunity to
explain the circumstances of interviews
conducted by phone, OPM is replacing
the current series of checkboxes (‘‘My
Request,’’ ‘‘Investigator’s Request,’’ ‘‘No
Reason Given’’) with two questions,
‘‘Were you offered to be interviewed in
person?’’ and ‘‘Please explain why the
interview was conducted by telephone.’’
OPM proposes to amend Question 7 to
be more concise by combining the series
of two questions into one, so that
Question 7 will now read ‘‘Please
provide any additional comments or
concerns you have about the
investigator and/or the interview, and
indicate if you require additional
contact from an OPM representative.’’
OPM is also making non-substantive
changes to page one of the form for
conciseness.
Analysis
Agency: Federal Investigative
Services, U.S. Office of Personnel
Management.
Title: Interview Survey Form, INV 10.
OMB Number: 3206–0106.
Affected Public: A random sampling
of record and personal sources
contacted during background
investigations when investigators have
performed fieldwork.
Number of Respondents: 61,973.
Estimated Time per Respondent: 6
minutes.
Total Burden Hours: 6,197.
U.S. Office of Personnel Management.
Katherine Archuleta,
Director.
[FR Doc. 2015–14972 Filed 6–17–15; 8:45 am]
BILLING CODE 6325–53–P
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34937
POSTAL REGULATORY COMMISSION
[Docket No. R2013–11R; Order No. 2540]
Rate Adjustment Remand
Postal Regulatory Commission.
Notice.
AGENCY:
ACTION:
The Commission is noticing a
proceeding to address the
methodological approach for accounting
for volume losses in calculating the
exigent surcharge, as well as other
relevant issues. This notice informs the
public of the filing, invites public
comment, and takes other
administrative steps.
DATES: Comments are due: June 26,
2015; reply comments are due: July 6,
2015.
SUMMARY:
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.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
David A. Trissell, General Counsel, at
202–789–6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Background
III. Commission Action on Remand
IV. Ordering Paragraphs
I. Introduction
On June 5, 2015, the United States
Court of Appeals for the District of
Columbia Circuit issued its opinion in
Alliance of Nonprofit Mailers v. Postal
Regulatory Commission, 2015 WL
3513394 (D.C. Cir. June 5, 2015). In that
opinion, the court granted in part a
Postal Service petition for review of the
Commission’s December 24, 2013 order
that had approved in part a Postal
Service request for an exigent rate
adjustment under 39 U.S.C.
3622(d)(1)(E).1 2015 WL 3513394 at 10.
Although the court largely affirmed
Order No. 1926, it vacated the count
once portion of the Commission’s order
and remanded the case for proceedings
consistent with its opinion. Id.
On June 8, 2015, the Postal Service
filed a motion requesting the
Commission expeditiously implement
remand proceedings and take a number
1 Docket No. R2013–11, Order Granting Exigent
Price Increase, December 24, 2013 (Order No. 1926).
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34938
Federal Register / Vol. 80, No. 117 / Thursday, June 18, 2015 / Notices
of additional steps pending completion
of the remand proceedings.2
On June 11, 2015, the Commission
received two responses to the Postal
Service Motion. The first response was
filed by the American Postal Workers
Union, AFL–CIO (APWU) in support of
the Postal Service Motion.3 The second
response was filed by a group of mailers
(Mailers) in opposition to the Postal
Service Motion.4
For the reasons set forth below, the
Commission suspends the requirement
that the Postal Service file a 45-day
notice of intent to remove the exigent
rate surcharge pending issuance of a
further order.5 This action is
appropriate in light of the May 19, 2015,
letter from counsel for the Postal Service
advising the court that the Postal
Service is expected to recoup the
entirety of the surcharge by early
August.6 If this estimate is correct, the
Postal Service stated that it would need
to notify its customers of a prospective
rescission as early as mid-June. Id. The
Commission also establishes expedited
comment procedures to afford all
interested persons an opportunity to
address the question of how to count the
volume of lost mail in calculating the
exigent surcharge, as well as any other
relevant issues.
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II. Background
Underlying proceeding before the
Commission. On September 26, 2013,
the Postal Service renewed its request
for an exigent rate adjustment pursuant
to 39 U.S.C. 3622(d)(1)(E).7 In Order No.
2 Docket No. R2013–11, Motion of the United
States Postal Service to Suspend Exigent Surcharge
Removal Provisions of Order No. 1926 and to
Establish Remand Proceedings, June 8, 2015 (Postal
Service Motion).
3 Comments of American Postal Workers Union,
AFL–CIO in Support of Postal Service Motion to
Suspend Exigent Surcharge Removal Procedures,
June 11, 2015 (APWU Comments).
4 Response of Association for Postal Commerce,
MPA—The Association of Magazine Media,
Alliance of Nonprofit Mailers, Direct Marketing
Association, Inc., American Catalog Mailers
Association, Envelope Manufacturers Association,
Epicomm, Idealliance, Major Mailers Association,
National Newspaper Association, and Saturation
Mailers Coalition to the Motion of the United States
Postal Service to Suspend Exigent Surcharge
Removal Provisions of Order No. 1926 and to
Establish Remand Proceedings, June 11, 2015
(Mailers Response).
5 The 45-day notice requirement was originally
imposed by the Commission order granting an
exigent price increase. Order No. 1926 at 185. That
requirement was subsequently confirmed in an
order addressing the Postal Service’s surcharge
removal plan. Docket No. R2013–11, Order on
Exigent Surcharge Removal, January 12, 2015, at 15
(Ordering Paragraph 1) (Order No. 2319).
6 Letter to Mark Langer, Clerk of Court, from Paul
D. Clement, Counsel for Petitioner United States
Postal Service, dated May 19, 2015, at 1.
7 Docket No. R2013–11, Renewed Exigent Request
of the United States Postal Service in Response to
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1926, the Commission found that the
Postal Service had justified the recovery
of $2.776 billion in additional
contribution by showing a causal link
between the extraordinary or
exceptional circumstances of the Great
Recession and mail volume losses.
Order No. 1926 at 193 (Ordering
Paragraph 1). The Commission therefore
permitted an exigent rate surcharge to
go into effect on January 26, 2014. Id.
(Ordering Paragraph 2). The
Commission also required the Postal
Service to report periodically on the
surcharge revenue it was collecting, to
file a report with the Commission by
May 1, 2014, that included a proposed
plan for removing the exigent rate
surcharge, and to file a notice of the
surcharge’s removal not less than 45
days prior to the effective date of such
removal. Id. at 185.
The court’s opinion. On appeal, the
court affirmed the Commission’s use of
the new normal test to measure the
causal effect of the exigent
circumstance. 2015 WL 3513394 at 6.
However, it found the Commission’s
count once rule to be inconsistent with
the Commission’s adoption of the new
normal test. Id. at 8. Under the count
once rule, lost mail volume was counted
only in the first year in which it was
lost, regardless of whether the new
normal test showed the exigent
circumstance was ongoing. The Court
vacated and remanded the count once
portion of Order No. 1926 for further
proceedings. Id. at 10.
The Postal Service’s motion. In its
motion, the Postal Service seeks
expedited implementation of the
remand proceedings. Postal Service
Motion at 1. It also presents an analysis
which, it asserts, demonstrates that the
floor for a revised estimate of the total
contribution loss is no less than $3.957
billion. Id. at 2. To arrive at its $3.957
billion floor, the Postal Service offers a
methodological approach for counting
volume losses due to the Great
Recession in a cumulative manner. The
Postal Service uses volume losses, by
year, from Table VI–5 in Order No. 1926
at 101. The Postal Service then
calculates the cumulative volume loss
in each year by combining the volume
first lost in that year, plus annual
volume lost in the previous year(s).
Postal Service Motion at 5. It then
translates the calculated cumulative
volume loss into an increase in lost
contribution from $2.766 billion to
$3.957 billion. Id. at 6 (emphasis
Order No. 1059, September 26, 2013. The history
underlying the Postal Service’s renewed request is
summarized by the court in its decision. See 2015
WL 3513394 at 2–3.
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omitted). The Postal Service then
applies the methodology of Table VII–2
in Order No. 1926 to calculate a revised
Surcharge Revenue Limitation from the
increase in lost contribution resulting
from the cumulative volume loss. Id.
The Postal Service estimates that the
Surcharge Revenue Limitation increases
from $3.238 billion to $4.633 billion as
a result of the cumulative counting of
volume losses. Id. at 7.
The Postal Service asserts that the
additional amount to which it claims to
be entitled provides a cushion for
maintaining the surcharge while further
proceedings are conducted. Id. at 2. The
Postal Service, therefore, requests the
suspension of the $2.766 billion
surcharge removal target. Id. at 3. In the
Postal Service’s view, the additional
surcharge revenue made possible by
suspension of the surcharge removal
target will be sufficient to allow
consideration of the full range of issues
that need to be addressed in the remand
proceeding. Id. at 7. In the meantime,
the Postal Service states that it would
continue to track exigent surcharge
revenue and file quarterly reports with
the Commission as required under
Order No. 1926. Id.
Without suspension of the surcharge
removal target, the Postal Service asserts
that the possibility of alternating rate
decreases and increases would
needlessly burden the public, the Postal
Service, and the mailing industry as the
Commission conducts the remand
proceedings. Id. at 3. Finally, the Postal
Service requests the Commission to
establish a schedule and procedures for
consideration of the range of remand
issues. Id. at 8.
Responses to the Postal Service’s
motion. In its comments, APWU
supports the relief requested by the
Postal Service and argues that the
court’s order to vacate the count once
rule necessitates the Commission
suspending the mechanism for removal
of the exigent rate surcharge. APWU
Comments at 1–2.
The Mailers argue that the Postal
Service has misstated the scope of the
court’s remand. Mailers Response at 1.
In particular, they assert that the Postal
Service seeks to relitigate the new
normal limitation and argue that the
scope of the Commission’s remand
proceedings should be limited to the
count once analysis. See id. at 3–8. The
Mailers also question the Commission’s
authority to grant the relief requested by
the Postal Service prior to issuance of
the court’s mandate. Id. at 8–9. Finally,
the Mailers claim that uncertainty over
whether the Commission can complete
its action on remand before the Postal
Service reaches the surcharge cap
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requires the Commission to take steps to
prevent an over collection of the
surcharge. Id. at 1, 9–10.
III. Commission Action on Remand
The Commission agrees with the
Postal Service that a prompt response to
the court’s opinion is necessary. If the
Postal Service were to file the 45-day
notice of intent to remove the surcharge
by mid-June, this notice could trigger a
burdensome series of rate decreases and
increases as described in the Postal
Service’s Motion. The Commission
agrees that it is desirable to avoid such
a circumstance.
While the Commission agrees that
prompt action is necessary, it does not
believe that it is necessary for the $2.766
billion surcharge target to be suspended,
as requested by the Postal Service, in
order to accommodate the remand
proceedings and avoid disruptive and
burdensome rate changes. At this
juncture, the Commission finds a more
measured approach is appropriate and
suspends the 45-day notice filing
requirement. Such a suspension
forestalls a series of rate fluctuations
and provides the Commission the
opportunity to conclude expedited
remand proceedings before the $2.766
billion surcharge target is reached.
The Commission is not persuaded by
APWU’s assertions that the Commission
must suspend the procedures for
removal of the exigent rate surcharge in
light of the court’s directive. The court
has not yet issued its mandate. In the
absence of further action by the court,
the mandate will not, under the court’s
generally applicable rules, be issued
until July 27, 2015. See Fed. R. App. P.
35(c), 40(a)(1) and 41(b). Pending
issuance of the mandate, the
Commission is not prevented from
considering the impact of the court’s
opinion on collection of the exigent
surcharge. As discussed above, the
Commission is establishing procedures
that will permit it to act once the court’s
mandate is issued. In the meantime, the
Postal Service continues to be
authorized to collect the exigent
surcharge.
The Mailers express different
concerns. They strongly oppose the
Postal Service’s interpretation of the
court’s opinion as a misstatement of the
proper scope of the case on remand.
Mailers Response at 1, 3–8. They also
argue that a temporary extension of the
exigent surcharge pending remand can
only be given if the Postal Service agrees
to conditions that would make mailers
whole if the additional surcharge
revenue is ultimately found
unwarranted. The Mailers’ arguments
on these issues and any others they
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wish to present in the proceedings
established by this Order will be
considered by the Commission when it
acts on remand.
The Mailers also question whether the
Commission has jurisdiction to act in
this docket until the court’s mandate
issues. Mailers Response at 8–9. The
action taken by the Commission in this
Order is not precluded by the fact that
the mandate has not yet issued. Even
though the court’s mandate has not been
issued, its decision calls into question
the volume of lost mail that should be
used to calculate the exigent rate
surcharge. The Commission’s
suspension of this 45-day notice
requirement maintains the status quo in
order to enable prompt action on
remand without making any premature
determination as to whether and when
rate changes will be required. The 45day notice requirement can be
reinstated at the conclusion of the
remand proceedings. The 45-day notice
requirement was initially adopted by
Order No. 1926, but it was also
reexamined and independently
confirmed as part of the Postal Service’s
surcharge removal plan approved by
Order No. 2319. Order No. 1926 at 185;
Order No. 2319 at 15 (Ordering
Paragraph 1). Order No. 2319 was not
the subject of the court’s review
proceeding.
In order to afford the Postal Service
and other interested persons an
opportunity to comment on the Postal
Service’s methodological approach for
accounting for volume losses due to the
Great Recession in a cumulative manner
and any other relevant issues they wish
to address, the Commission is inviting
initial and reply comments. Initial
comments are due no later than June 26,
2015. Reply comments are due no later
than July 6, 2015.
The Commission establishes Docket
No. R2013–11R to consider issues on
remand. Since Docket Nos. R2013–11
and R2013–11R are part of the same
proceeding, the Commission shall
consider all documents filed to date in
Docket No. R2013–11 as part of the
record in Docket No. R2013–11R. All
comments and other documents related
to issues on remand must be filed under
Docket No. R2013–11R.
IV. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket
No. R2013–11R to consider issues on
remand.
2. James Waclawski will continue to
serve as officer of the Commission
(Public Representative) to represent the
interests of the general public in this
proceeding.
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34939
3. Initial comments are due no later
than June 26, 2015.
4. Reply comments addressing matters
raised in initial comments are due no
later than July 6, 2015.
5. All comments and other documents
related to remand issues must be filed
under Docket No. R2013–11R.
6. The Secretary shall arrange for
publication of this order in the Federal
Register.
By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2015–14965 Filed 6–17–15; 8:45 am]
BILLING CODE 7710–FW–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
31667; 812–14419]
New York Alaska ETF Management
LLC, et al.; Notice of Application
June 12, 2015.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice of an application for an
order under section 6(c) of the
Investment Company Act of 1940
(‘‘Act’’) for an exemption from sections
2(a)(32), 5(a)(1), 22(d) and 22(e) of the
Act and rule 22c–1 under the Act, under
sections 6(c) and 17(b) of the Act for an
exemption from sections 17(a)(1) and
(a)(2) of the Act, and under section
12(d)(1)(J) of the Act for an exemption
from sections 12(d)(1)(A) and (B) of the
Act.
AGENCY:
Plus Trust (‘‘Trust’’), New
York Alaska ETF Management LLC
(‘‘New York Alaska Management’’), and
Foreside Fund Services, LLC.
SUMMARY: Summary of Application:
Applicants request an order that
permits: (a) Actively-managed series of
certain open-end management
investment companies to issue shares
(‘‘Shares’’) redeemable in large
aggregations only (‘‘Creation Units’’); (b)
secondary market transactions in Shares
to occur at negotiated market prices; (c)
certain series to pay redemption
proceeds, under certain circumstances,
more than seven days from the tender of
Shares for redemption; (d) certain
affiliated persons of the series to deposit
securities into, and receive securities
from, the series in connection with the
purchase and redemption of Creation
Units; and (e) certain registered
management investment companies and
unit investment trusts outside of the
same group of investment companies as
the series to acquire Shares.
APPLICANTS:
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Agencies
[Federal Register Volume 80, Number 117 (Thursday, June 18, 2015)]
[Notices]
[Pages 34937-34939]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-14965]
=======================================================================
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POSTAL REGULATORY COMMISSION
[Docket No. R2013-11R; Order No. 2540]
Rate Adjustment Remand
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Commission is noticing a proceeding to address the
methodological approach for accounting for volume losses in calculating
the exigent surcharge, as well as other relevant issues. This notice
informs the public of the filing, invites public comment, and takes
other administrative steps.
DATES: Comments are due: June 26, 2015; reply comments are due: July 6,
2015.
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: David A. Trissell, General Counsel, at
202-789-6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Background
III. Commission Action on Remand
IV. Ordering Paragraphs
I. Introduction
On June 5, 2015, the United States Court of Appeals for the
District of Columbia Circuit issued its opinion in Alliance of
Nonprofit Mailers v. Postal Regulatory Commission, 2015 WL 3513394
(D.C. Cir. June 5, 2015). In that opinion, the court granted in part a
Postal Service petition for review of the Commission's December 24,
2013 order that had approved in part a Postal Service request for an
exigent rate adjustment under 39 U.S.C. 3622(d)(1)(E).\1\ 2015 WL
3513394 at 10. Although the court largely affirmed Order No. 1926, it
vacated the count once portion of the Commission's order and remanded
the case for proceedings consistent with its opinion. Id.
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\1\ Docket No. R2013-11, Order Granting Exigent Price Increase,
December 24, 2013 (Order No. 1926).
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On June 8, 2015, the Postal Service filed a motion requesting the
Commission expeditiously implement remand proceedings and take a number
[[Page 34938]]
of additional steps pending completion of the remand proceedings.\2\
---------------------------------------------------------------------------
\2\ Docket No. R2013-11, Motion of the United States Postal
Service to Suspend Exigent Surcharge Removal Provisions of Order No.
1926 and to Establish Remand Proceedings, June 8, 2015 (Postal
Service Motion).
---------------------------------------------------------------------------
On June 11, 2015, the Commission received two responses to the
Postal Service Motion. The first response was filed by the American
Postal Workers Union, AFL-CIO (APWU) in support of the Postal Service
Motion.\3\ The second response was filed by a group of mailers
(Mailers) in opposition to the Postal Service Motion.\4\
---------------------------------------------------------------------------
\3\ Comments of American Postal Workers Union, AFL-CIO in
Support of Postal Service Motion to Suspend Exigent Surcharge
Removal Procedures, June 11, 2015 (APWU Comments).
\4\ Response of Association for Postal Commerce, MPA--The
Association of Magazine Media, Alliance of Nonprofit Mailers, Direct
Marketing Association, Inc., American Catalog Mailers Association,
Envelope Manufacturers Association, Epicomm, Idealliance, Major
Mailers Association, National Newspaper Association, and Saturation
Mailers Coalition to the Motion of the United States Postal Service
to Suspend Exigent Surcharge Removal Provisions of Order No. 1926
and to Establish Remand Proceedings, June 11, 2015 (Mailers
Response).
---------------------------------------------------------------------------
For the reasons set forth below, the Commission suspends the
requirement that the Postal Service file a 45-day notice of intent to
remove the exigent rate surcharge pending issuance of a further
order.\5\ This action is appropriate in light of the May 19, 2015,
letter from counsel for the Postal Service advising the court that the
Postal Service is expected to recoup the entirety of the surcharge by
early August.\6\ If this estimate is correct, the Postal Service stated
that it would need to notify its customers of a prospective rescission
as early as mid-June. Id. The Commission also establishes expedited
comment procedures to afford all interested persons an opportunity to
address the question of how to count the volume of lost mail in
calculating the exigent surcharge, as well as any other relevant
issues.
---------------------------------------------------------------------------
\5\ The 45-day notice requirement was originally imposed by the
Commission order granting an exigent price increase. Order No. 1926
at 185. That requirement was subsequently confirmed in an order
addressing the Postal Service's surcharge removal plan. Docket No.
R2013-11, Order on Exigent Surcharge Removal, January 12, 2015, at
15 (Ordering Paragraph 1) (Order No. 2319).
\6\ Letter to Mark Langer, Clerk of Court, from Paul D. Clement,
Counsel for Petitioner United States Postal Service, dated May 19,
2015, at 1.
---------------------------------------------------------------------------
II. Background
Underlying proceeding before the Commission. On September 26, 2013,
the Postal Service renewed its request for an exigent rate adjustment
pursuant to 39 U.S.C. 3622(d)(1)(E).\7\ In Order No. 1926, the
Commission found that the Postal Service had justified the recovery of
$2.776 billion in additional contribution by showing a causal link
between the extraordinary or exceptional circumstances of the Great
Recession and mail volume losses. Order No. 1926 at 193 (Ordering
Paragraph 1). The Commission therefore permitted an exigent rate
surcharge to go into effect on January 26, 2014. Id. (Ordering
Paragraph 2). The Commission also required the Postal Service to report
periodically on the surcharge revenue it was collecting, to file a
report with the Commission by May 1, 2014, that included a proposed
plan for removing the exigent rate surcharge, and to file a notice of
the surcharge's removal not less than 45 days prior to the effective
date of such removal. Id. at 185.
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\7\ Docket No. R2013-11, Renewed Exigent Request of the United
States Postal Service in Response to Order No. 1059, September 26,
2013. The history underlying the Postal Service's renewed request is
summarized by the court in its decision. See 2015 WL 3513394 at 2-3.
---------------------------------------------------------------------------
The court's opinion. On appeal, the court affirmed the Commission's
use of the new normal test to measure the causal effect of the exigent
circumstance. 2015 WL 3513394 at 6. However, it found the Commission's
count once rule to be inconsistent with the Commission's adoption of
the new normal test. Id. at 8. Under the count once rule, lost mail
volume was counted only in the first year in which it was lost,
regardless of whether the new normal test showed the exigent
circumstance was ongoing. The Court vacated and remanded the count once
portion of Order No. 1926 for further proceedings. Id. at 10.
The Postal Service's motion. In its motion, the Postal Service
seeks expedited implementation of the remand proceedings. Postal
Service Motion at 1. It also presents an analysis which, it asserts,
demonstrates that the floor for a revised estimate of the total
contribution loss is no less than $3.957 billion. Id. at 2. To arrive
at its $3.957 billion floor, the Postal Service offers a methodological
approach for counting volume losses due to the Great Recession in a
cumulative manner. The Postal Service uses volume losses, by year, from
Table VI-5 in Order No. 1926 at 101. The Postal Service then calculates
the cumulative volume loss in each year by combining the volume first
lost in that year, plus annual volume lost in the previous year(s).
Postal Service Motion at 5. It then translates the calculated
cumulative volume loss into an increase in lost contribution from
$2.766 billion to $3.957 billion. Id. at 6 (emphasis omitted). The
Postal Service then applies the methodology of Table VII-2 in Order No.
1926 to calculate a revised Surcharge Revenue Limitation from the
increase in lost contribution resulting from the cumulative volume
loss. Id. The Postal Service estimates that the Surcharge Revenue
Limitation increases from $3.238 billion to $4.633 billion as a result
of the cumulative counting of volume losses. Id. at 7.
The Postal Service asserts that the additional amount to which it
claims to be entitled provides a cushion for maintaining the surcharge
while further proceedings are conducted. Id. at 2. The Postal Service,
therefore, requests the suspension of the $2.766 billion surcharge
removal target. Id. at 3. In the Postal Service's view, the additional
surcharge revenue made possible by suspension of the surcharge removal
target will be sufficient to allow consideration of the full range of
issues that need to be addressed in the remand proceeding. Id. at 7. In
the meantime, the Postal Service states that it would continue to track
exigent surcharge revenue and file quarterly reports with the
Commission as required under Order No. 1926. Id.
Without suspension of the surcharge removal target, the Postal
Service asserts that the possibility of alternating rate decreases and
increases would needlessly burden the public, the Postal Service, and
the mailing industry as the Commission conducts the remand proceedings.
Id. at 3. Finally, the Postal Service requests the Commission to
establish a schedule and procedures for consideration of the range of
remand issues. Id. at 8.
Responses to the Postal Service's motion. In its comments, APWU
supports the relief requested by the Postal Service and argues that the
court's order to vacate the count once rule necessitates the Commission
suspending the mechanism for removal of the exigent rate surcharge.
APWU Comments at 1-2.
The Mailers argue that the Postal Service has misstated the scope
of the court's remand. Mailers Response at 1. In particular, they
assert that the Postal Service seeks to relitigate the new normal
limitation and argue that the scope of the Commission's remand
proceedings should be limited to the count once analysis. See id. at 3-
8. The Mailers also question the Commission's authority to grant the
relief requested by the Postal Service prior to issuance of the court's
mandate. Id. at 8-9. Finally, the Mailers claim that uncertainty over
whether the Commission can complete its action on remand before the
Postal Service reaches the surcharge cap
[[Page 34939]]
requires the Commission to take steps to prevent an over collection of
the surcharge. Id. at 1, 9-10.
III. Commission Action on Remand
The Commission agrees with the Postal Service that a prompt
response to the court's opinion is necessary. If the Postal Service
were to file the 45-day notice of intent to remove the surcharge by
mid-June, this notice could trigger a burdensome series of rate
decreases and increases as described in the Postal Service's Motion.
The Commission agrees that it is desirable to avoid such a
circumstance.
While the Commission agrees that prompt action is necessary, it
does not believe that it is necessary for the $2.766 billion surcharge
target to be suspended, as requested by the Postal Service, in order to
accommodate the remand proceedings and avoid disruptive and burdensome
rate changes. At this juncture, the Commission finds a more measured
approach is appropriate and suspends the 45-day notice filing
requirement. Such a suspension forestalls a series of rate fluctuations
and provides the Commission the opportunity to conclude expedited
remand proceedings before the $2.766 billion surcharge target is
reached.
The Commission is not persuaded by APWU's assertions that the
Commission must suspend the procedures for removal of the exigent rate
surcharge in light of the court's directive. The court has not yet
issued its mandate. In the absence of further action by the court, the
mandate will not, under the court's generally applicable rules, be
issued until July 27, 2015. See Fed. R. App. P. 35(c), 40(a)(1) and
41(b). Pending issuance of the mandate, the Commission is not prevented
from considering the impact of the court's opinion on collection of the
exigent surcharge. As discussed above, the Commission is establishing
procedures that will permit it to act once the court's mandate is
issued. In the meantime, the Postal Service continues to be authorized
to collect the exigent surcharge.
The Mailers express different concerns. They strongly oppose the
Postal Service's interpretation of the court's opinion as a
misstatement of the proper scope of the case on remand. Mailers
Response at 1, 3-8. They also argue that a temporary extension of the
exigent surcharge pending remand can only be given if the Postal
Service agrees to conditions that would make mailers whole if the
additional surcharge revenue is ultimately found unwarranted. The
Mailers' arguments on these issues and any others they wish to present
in the proceedings established by this Order will be considered by the
Commission when it acts on remand.
The Mailers also question whether the Commission has jurisdiction
to act in this docket until the court's mandate issues. Mailers
Response at 8-9. The action taken by the Commission in this Order is
not precluded by the fact that the mandate has not yet issued. Even
though the court's mandate has not been issued, its decision calls into
question the volume of lost mail that should be used to calculate the
exigent rate surcharge. The Commission's suspension of this 45-day
notice requirement maintains the status quo in order to enable prompt
action on remand without making any premature determination as to
whether and when rate changes will be required. The 45-day notice
requirement can be reinstated at the conclusion of the remand
proceedings. The 45-day notice requirement was initially adopted by
Order No. 1926, but it was also reexamined and independently confirmed
as part of the Postal Service's surcharge removal plan approved by
Order No. 2319. Order No. 1926 at 185; Order No. 2319 at 15 (Ordering
Paragraph 1). Order No. 2319 was not the subject of the court's review
proceeding.
In order to afford the Postal Service and other interested persons
an opportunity to comment on the Postal Service's methodological
approach for accounting for volume losses due to the Great Recession in
a cumulative manner and any other relevant issues they wish to address,
the Commission is inviting initial and reply comments. Initial comments
are due no later than June 26, 2015. Reply comments are due no later
than July 6, 2015.
The Commission establishes Docket No. R2013-11R to consider issues
on remand. Since Docket Nos. R2013-11 and R2013-11R are part of the
same proceeding, the Commission shall consider all documents filed to
date in Docket No. R2013-11 as part of the record in Docket No. R2013-
11R. All comments and other documents related to issues on remand must
be filed under Docket No. R2013-11R.
IV. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket No. R2013-11R to consider
issues on remand.
2. James Waclawski will continue to serve as officer of the
Commission (Public Representative) to represent the interests of the
general public in this proceeding.
3. Initial comments are due no later than June 26, 2015.
4. Reply comments addressing matters raised in initial comments are
due no later than July 6, 2015.
5. All comments and other documents related to remand issues must
be filed under Docket No. R2013-11R.
6. The Secretary shall arrange for publication of this order in the
Federal Register.
By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2015-14965 Filed 6-17-15; 8:45 am]
BILLING CODE 7710-FW-P