[Federal Register Volume 74, Number 84 (Monday, May 4, 2009)]
[Notices]
[Pages 20510-20511]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-10095]
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POSTAL REGULATORY COMMISSION
[Docket Nos. MC2009-24 and CP2009-28 Order No. 207]
New Competitive Postal Product
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
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SUMMARY: The Commission is noticing a recently-filed Postal Service
request to add the Royal Mail Inbound Air Parcel Post Agreement to the
Competitive Product List. The Postal Service has also filed a related
contract. This notice addresses procedural steps associated with these
filings.
DATES: Comments are due May 5, 2009.
ADDRESSES: Submit comments electronically via the Commission's Filing
Online system at http://www.prc.gov.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel,
202-789-6820 and [email protected].
SUPPLEMENTARY INFORMATION:
I. Introduction
On April 21, 2009, the Postal Service filed a formal request
pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add the Royal
Mail Inbound Air Parcel Post Agreement to the Competitive Product
List.\1\ The Postal Service asserts that the Governors have established
a price and classification ``not of general applicability'' within the
meaning of 39 U.S.C. 3632(b)(3). Id. at 1. The Request has been
assigned Docket No. MC2009-24.
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\1\ Request of the United States Postal Service to Add Royal
Mail Inbound Air Parcel Post Agreement to the Competitive Products
List and Notice of Filing (Under Seal) Contract and Enabling
Governors' Decision, April 21, 2009 (Request).
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The Postal Service contemporaneously filed an agreement related to
the proposed new product pursuant to 39 U.S.C. 3632(b)(3) and 39 CFR
3015.5. The agreement has been assigned Docket No. CP2009-28.
Request. The Request incorporates (1) A statement of supporting
justification
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as required by 39 CFR 3020.32; (2) Governors' Decision No. 09-5
authorizing the new product which includes a certification of the vote,
requested changes in the Mail Classification Schedule (MCS) product
list, an analysis of the agreement and a certification of compliance
with 39 U.S.C. 3633(a); (3) a redacted version of the agreement; and
(4) an additional certification of compliance with 39 U.S.C.
3633(a).\2\ Substantively, the Request seeks to add the Royal Mail
Inbound Air Parcel Post Agreement to the Competitive Product List. Id.
at 1-2.
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\2\ Attachment 1 to the Request consists of the Statement of
Supporting Justification. Attachment 2 is the Decision of the
Governors of the United States Postal Service on Establishment of
Prices and Classifications for Royal Mail Group Inbound Air Parcel
Post Agreement (Governors' Decision No. 09-5). The Governors'
Decision includes Attachment A, requested changes in the MCS product
list; Attachment B, a redacted version of Management Analysis of
Royal Mail Group Inbound Air Parcel Post Agreement; and Attachment
C, a redacted version of Certification of Prices for the Royal Mail
Group Inbound Air Parcel Post Agreement. Attachment 3 is a redacted
version of the contract. Attachment 4 is an additional redacted
certification of compliance with 39 U.S.C. 3633 (a) for the
agreement. The Postal Service states that the additional
certification ``was effected to account for changes in the estimated
amount of inward land rate payments in 2010 due to revisions to the
payment structure under the [Universal Postal Union's] Parcel Post
Regulations that will become effective on January 1, 2010.'' Id. at
2, n.3.
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In the statement of supporting justification, Giselle Valera,
Executive Director, Global Finance and Business Analysis, asserts that
the service to be provided under the agreement will cover its
attributable costs, make a positive contribution to institutional
costs, and increase contribution toward the requisite 5.5 percent of
the Postal Service's total institutional costs. Id., Attachment 1.
Thus, Ms. Valera contends there will be no issue of subsidization of
competitive products by market dominant products as a result of this
agreement. Id.
Related contract. A redacted version of the bilateral Royal Mail
Inbound Air Parcel Post agreement is included with the Request. The
Postal Service represents that the agreement is consistent with 39
U.S.C. 3633(a) and 39 CFR 3015.7(c). See id., Attachment 2 and
Attachment 3. The agreement implements negotiated rates for Inbound Air
Parcel Post from the United Kingdom. It becomes effective after the
Postal Service notifies Royal Mail that it has received all required
reviews and the Commission has provided all necessary regulatory
approvals. The Postal Service states that the agreement is to remain in
effect until terminated by the parties.
Currently, the Postal Service and Royal Mail apply the inward land
rates for Air Parcel Post established by the Universal Postal Union's
Postal Operations Council.\3\ In the Postal Service's original proposed
MCS language for Inbound Air Parcel Post, bilateral agreements were
included as a price category within the Inbound Air Parcel Post
product.\4\ The Postal Service states it is proposing that the Royal
Mail agreement be classified as a separate product as a practical
matter and in conformity with the intent of the Commission's ruling in
Order No. 43 \5\ which contemplates that each agreement or group of
functionally equivalent agreements may be considered as one product.
Id. at 4.
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\3\ See Universal Postal Union International Bureau Circular No.
241, ``Parcel Post-Inward Land Rates Applicable from 1 January
2009,'' September 29, 2008.
\4\ See United States Postal Service Submission of Additional
Mail Classification Schedule Information in Response to Order No.
43, November 20, 2007.
\5\ See PRC Order No. 43, Order Establishing Ratemaking
Regulations for Market Dominant and Competitive Products, Docket No.
MC 2007-1, October 29, 2007, at paras. 2177, 2198.
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The Postal Service filed much of the supporting materials,
including the analysis of the agreement, Governors' Decision, and the
specific Royal Mail Inbound Air Parcel Post agreement in redacted
versions and under seal. In its Request, the Postal Service maintains
that the agreement and related financial information, including the
customer's name and the accompanying analyses that provide prices,
terms, conditions, and financial projections should remain under seal.
Id. at 2-3.
II. Notice of Filings
The Commission establishes Docket Nos. MC2009-24 and CP2009-28 for
consideration of the Request pertaining to the proposed Royal Mail
Inbound Air Parcel Post product and the related bilateral contractual
agreement as a competitive product, respectively. In keeping with
practice, these dockets are addressed on a consolidated basis for
purposes of this order; however, future filings should be made in the
specific docket in which issues being addressed pertain.
Interested persons may submit comments on whether the Postal
Service's filings in the captioned dockets are consistent with the
policies of 39 U.S.C. 3632, 3633, or 3642 and 39 CFR part 3015 and 39
CFR 3020 subpart B. Comments are due no later than May 5, 2009. The
public portions of these filings can be accessed via the Commission's
Web site (http://www.prc.gov).
The Commission appoints Paul L. Harrington to serve as Public
Representative in these dockets.
It is Ordered:
1. The Commission establishes Docket Nos. MC2009-24 and CP2009-28
for consideration of the matters raised in each docket.
2. Pursuant to 39 U.S.C. 505, Paul L. Harrington is appointed to
serve as officer of the Commission (Public Representative) to represent
the interests of the general public in these proceedings.
3. Comments by interested persons in these proceedings are due no
later than May 5, 2009.
4. The Secretary shall arrange for publication of this order in the
Federal Register.
By the Commission.
Judith M. Grady,
Acting Secretary.
[FR Doc. E9-10095 Filed 5-1-09; 8:45 am]
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