Competitive Price Changes, 82434-82436 [2023-25988]

Agencies

• POSTAL REGULATORY COMMISSION

[Federal Register Volume 88, Number 225 (Friday, November 24, 2023)]
[Notices]
[Pages 82434-82436]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-25988]


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POSTAL REGULATORY COMMISSION

[Docket No. CP2024-52; Order No. 6806]


Competitive Price Changes

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is recognizing a recently filed Postal Service 
document with the Commission concerning changes in rates and 
classifications of general applicability for competitive products. This 
notice informs the public of the filing, invites public comment, and 
takes other administrative steps.

DATES: Comments are due: December 1, 2023.

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 and Overview
II. Summary of Changes
III. Initial Administrative Actions
IV. Ordering Paragraphs

I. Introduction and Overview

    On November 15, 2023, the Postal Service filed notice with the 
Commission concerning changes in rates and classifications of general 
applicability for Competitive products.\1\ The Postal Service 
represents that, as required by 39 CFR 3035.102(b) and 39 CFR 
3035.104(b), the Notice includes an explanation and justification for 
the changes, the effective date, and a schedule of the changed rates. 
Notice at 1. The changes are scheduled to take effect on January 21, 
2024. Id.
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    \1\ USPS Notice of Changes in Rates and Classifications of 
General Applicability for Competitive Products, November 15, 2023 
(Notice). Pursuant to 39 U.S.C. 3632(b)(2), the Postal Service is 
obligated to publish the Governors' Decision and record of 
proceedings in the Federal Register at least 30 days before the 
effective date of the new rates.
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    Attached to the Notice is Governors' Decision No. 23-5, which 
states the new prices are in accordance with 39 U.S.C. 3632 and 3633 
and 39 CFR 3035.102-.104.\2\ The Governors' Decision provides an 
analysis of the Competitive products' price and classification changes 
intended to demonstrate that the changes comply with 39 U.S.C. 3633 and 
39 CFR part 3035. Governors' Decision No. 23-5 at 1. The Attachment to 
the Governors' Decision No. 23-5 sets forth the classification and 
price changes and includes draft Mail Classification Schedule (MCS) 
language for Competitive products of general applicability.
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    \2\ Notice, Decision of the Governors of the United States 
Postal Service on Changes in Rates and Classifications of General 
Applicability for Competitive Products (Governors' Decision No. 23-
5), at 1 (Governors' Decision No. 23-5).
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    In addition, the Notice includes a non-public annex showing FY 2024 
projected volumes, revenues, attributable costs, contribution, and cost 
coverage for each product. See Notice at 1. The Postal Service also 
filed supporting forecast data and price adjustment calculations for 
each affected product as required by Order No. 1062. Id.
    The Notice also includes an application for non-public treatment of 
the unredacted version of the annex to the Governors' Decision, as well 
as the supporting materials for the data.\3\ Id. at 1-2.
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    \3\ See United States Postal Service Notice of Errata to 
Application for Nonpublic Treatment Accompanying USPS Notice of 
Changes in Rates and Classifications of General Applicability for 
Competitive Products, November 17, 2023.

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[[Page 82435]]

II. Summary of Changes

    The Notice proposes price changes to Priority Mail Express, 
Priority Mail, Parcel Select, and USPS Ground Advantage, and most 
International Products. Id. at 2. Additionally, the proposed changes 
include price adjustments to Domestic Extra Services, including Premium 
Forwarding Service, Competitive Post Office Boxes, and Adult Signature 
Service among others, and a 20 percent price increase in certain 
Nonstandard Fees (NSFs). Id. There are two classification changes 
proposed, renaming the Electronic Verification System (eVS) 
Unmanifested Fee to simply ``Unmanifested Fee'' and the elimination of 
Parcel Select Lightweight Price Category. Id. at 2-5. No other price or 
classification changes are proposed in this docket. See Governors' 
Decision No. 23-5 at 2-3. The changes are summarized below and 
condensed to Table I-1.

A. Price Changes

1. Domestic
    Priority Mail Express changes. The proposed changes to the MCS in 
the Governors' Decision No. 23-5 show the Postal Service's planned 
price changes for Priority Mail Express. On average, Priority Mail 
Express prices are proposed to increase 5.9 percent. See id. at 2. For 
January 2024, the Postal Service will maintain the consolidation of 
Commercial Base and Commercial Plus price categories into one 
Commercial price category and the differentiated ``Local, 1, 2'' Zone 
prices and dimensional weighting for all zones. Id. The retail prices 
for Priority Mail Express will increase an average of 5.9 percent. Id. 
On average, commercial prices will increase by 5.9 percent and reflect 
an average of 13.7 percent discount off of retail prices. Id.
    Priority Mail changes. The proposed changes to the MCS in the 
Governors' Decision No. 23-5 show the Postal Service's planned price 
changes for Priority Mail. On average, Priority Mail prices are 
proposed to increase 5.7 percent. See id. at 2. For January 2024, the 
Postal Service will maintain the consolidation of Commercial Base and 
Commercial Plus price categories into one Commercial price category and 
the differentiated ``Local, 1, 2'' Zone prices and dimensional 
weighting for all zones. Id. On average, the retail prices will 
increase by 5.6 percent. The commercial prices will increase by an 
average of 5.8 percent and reflect an average of 20.5 percent discount 
off retail prices. Id. at 3.
    Parcel Select. The proposed changes to the MCS in the Governors' 
Decision No. 23-5 show the Postal Service's planned price changes for 
Parcel Select. On average, Parcel Select prices are proposed to 
increase 5.9 percent. See id. at 3. Proposed for January 2024, Parcel 
Select Lightweight will be eliminated as a separate price category and 
instead ounce-based prices will be added under the destination 
categories at 4-, 8- and 12-ounce increments. Id. Parcel Select will be 
expressed in a single price table to reflect the elimination of Parcel 
Select Lightweight along with previous structural changes in 2023. Id.
    The average price increase for parcels entered in destination 
delivery units, destination hubs, destination network distribution 
centers, and destination sectional center facilities is 5.9 percent. 
Id. The prices for USPS Connect, introduced in 2022, will remain 
unchanged. Id. The Postal Service proposes to maintain dimensional 
weighting which was introduced for all zones in 2019.
    USPS Ground Advantage. The proposed changes to the MCS in the 
Governors' Decision No. 23-5 show the Postal Service's planned price 
changes for USPS Ground Advantage overall will increase an average of 
5.4 percent. Id. The retail prices will increase an average of 5.2 
percent and commercial will increase an average of 5.4 percent. Id. The 
Alaska Limited Overland Routes price category will increase an average 
of 9.2 percent. Id. at 3-4.
    Domestic Extra Services. The proposed changes to the MCS in the 
Governors' Decision No. 23-5 show the Postal Service's planned price 
changes for Premium Forwarding Service will increase an average of 3.0 
percent. Id. at 4. On average, prices for Address Enhancement Service 
are proposed to increase 3.0 percent. Id. The Competitive Post Office 
Box prices will increase an average of 6.5 percent. Id.
2. International
    Expedited Services. The proposed changes to the MCS in the 
Governors' Decision No. 23-5 show the Postal Service's planned price 
changes for Global Express Guaranteed and Priority Mail Express 
International will increase an average of 5.4 percent with Commercial 
Plus equivalent to Commercial Base. Id.
    Priority Mail International. The proposed changes to the MCS in the 
Governors' Decision No. 23-5 show the Postal Service's planned price 
changes for Priority Mail International will increase an average of 5.4 
percent with Commercial Plus prices equivalent to Commercial Base. Id.
    International Priority Airmail and International Surface Air Lift. 
The proposed changes to the MCS in the Governors' Decision No. 23-5 
show the Postal Service's planned published price changes for 
International Priority Airmail and International Surface Air Lift will 
have an average increase of 5.5 percent and 3.5 percent, respectively. 
Id. at 5.
    Airmail M-Bags. The published price changes for Airmail M-Bags will 
increase by 5.4 percent. Id.
    First-Class Package International Service. The proposed changes to 
the MCS in the Governors' Decision No. 23-5 show the Postal Service's 
planned price changes for First-Class Package International Service 
will increase an average of 6.4 percent with Commercial Plus prices 
equivalent to Commercial Base. Id.
    International Ancillary Service and Special Services. The proposed 
changes to the MCS in the Governors' Decision No. 23-5 show the Postal 
Service's planned price changes for several international ancillary 
services. Id. The prices for International Certificate of Mailing and 
International Registered Mail will increase by an average of 2.5 
percent. Id. The prices for International Return Receipt will increase 
by an average of 2.7 percent. Id. Lastly, the prices for International 
Insurance and Customs and Clearance Delivery Fee will increase by an 
average of 3.0 percent. Id.

B. Classification Changes

    Renaming eVS Unmanifested Fee. The ``eVS Unmanifested Fee'' will be 
renamed as ``Unmanifested Fee'' to accommodate the ongoing migration of 
customers from eVS to the USPS Ship platform. Notice at 2. The Postal 
Service plans to retire the eVS platform and therefore plans to rename 
the ``eVS Unmanifested Fee'' to simply ``Unmanifested Fee.'' Id.
    Elimination of Parcel Select Lightweight. As discussed above, 
Parcel Select Lightweight will be eliminated as a separate price 
category and ounce-based prices will be added under the destination 
entered categories at 4-, 8-, and 12-ounce increments. Id. at 4.
    NSFs. The Nonstandard Fees applicable to Priority Mail Express, 
Priority Mail, Parcel Select, and USPS Ground Advantage will see a 20 
percent increase in 2024. Id. at 2-4.

[[Page 82436]]



                    Table I-1--Proposed Price Changes
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                                                           Average price
                      Product name                           increase
                                                             (percent)
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                      Domestic Competitive Products
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Priority Mail Express...................................             5.9
    Retail..............................................             5.9
    Commercial..........................................             5.9
Priority Mail...........................................             5.7
    Retail..............................................             5.6
    Commercial..........................................             5.8
Parcel Select...........................................             5.9
    Destination Delivery Unit...........................             5.9
    Destination hub.....................................             5.9
    Destination Sectional Center Facility...............             5.9
    Destination Network Distribution Center.............             5.9
USPS Ground Advantage...................................             5.4
    Retail..............................................             5.2
    Commercial..........................................             5.4
------------------------------------------------------------------------
                         Domestic Extra Services
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Premium Forwarding Service..............................             3.0
Adult Signature Service:
    Basic...............................................             3.3
    Person-Specific.....................................             3.2
Competitive Post Office Box.............................             6.5
Package Intercept Service...............................             3.0
Address Enhancement Service.............................             3.0
------------------------------------------------------------------------
                   International Competitive Products
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Global Express Guaranteed...............................             5.4
Priority Mail Express International.....................             5.4
Priority Mail International.............................             5.4
International Priority Airmail..........................             5.5
International Surface Air Lift..........................             3.5
Airmail M-Bags..........................................             5.4
First-Class Package International Service...............             6.4
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          International Ancillary Services and Special Services
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International Ancillary Services........................             2.7
International Certificate of Mailing....................             2.5
International Insurance.................................             3.0
International Registered Mail...........................             2.5
International Return Receipt............................             2.7
Customs and Clearance Delivery Fee......................             3.0
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Source: See Governors' Decision No. 23-5 at 2-5.

III. Initial Administrative Actions

    The Commission establishes Docket No. CP2024-52 to consider the 
Postal Service's Notice. Interested persons may express views and offer 
comments on whether the planned changes are consistent with 39 U.S.C. 
3632, 3633, and 3642, 39 CFR part 3035, and 39 CFR 3040 subparts B and 
E. Comments are due no later than December 1, 2023. For specific 
details of the planned price changes, interested persons are encouraged 
to review the Notice, which is available on the Commission's website at 
www.prc.gov.
    Pursuant to 39 U.S.C. 505, Christopher C. Mohr is appointed to 
serve as Public Representative to represent the interests of the 
general public in this docket.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. CP2024-52 to provide 
interested persons an opportunity to express views and offer comments 
on whether the planned changes are consistent with 39 U.S.C. 3632, 
3633, and 3642, 39 CFR part 3035, and 39 CFR 3040 subparts B and E.
    2. Comments are due no later than December 1, 2023.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Christopher 
C. Mohr to serve as an officer of the Commission (Public 
Representative) to represent the interests of the general public in 
this docket.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2023-25988 Filed 11-22-23; 8:45 am]
BILLING CODE 7710-FW-P