80 FR 65256 - Change in Postal Rates

POSTAL REGULATORY COMMISSION

Federal Register Volume 80, Issue 206 (October 26, 2015)

The Commission is noticing a recent Postal Service filing concerning the Postal Service's intention to change rates of general applicability for competitive products. This notice informs the public of the filing, invites public comment, and takes other administrative steps.

[Federal Register Volume 80, Number 206 (Monday, October 26, 2015)]
[Notices]
[Pages 65256-65258]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-27096]


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POSTAL REGULATORY COMMISSION

[Docket Nos. CP2016-9; Order No. 2767]


Change in Postal Rates

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recent Postal Service filing 
concerning the Postal Service's intention to change rates of general 
applicability for competitive products. This notice

[[Page 65257]]

informs the public of the filing, invites public comment, and takes 
other administrative steps.

DATES: Comments are due: October 29, 2015.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at http://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: On October 16, 2015, the Postal Service 
filed notice with the Commission concerning changes in rates of general 
applicability for competitive products.\1\ The Notice also includes 
related classification changes. The Postal Service represents that, as 
required by the Commission's rules, 39 CFR 3015.2(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 become effective January 17, 2016. Id.
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    \1\ Notice of the United States Postal Service of Changes in 
Rates of General Applicability for Competitive Products Established 
in Governors' Decision No. 15-1, October 16, 2015 (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 
or classes.
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    Attached to the Notice is Governors' Decision No. 15-1, which 
evaluates the new prices and classification changes in accordance with 
39 U.S.C. 3632, 3633, and 39 CFR 3015.2.\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 3015. Governors' Decision No. 15-1 
at 1.
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    \2\ Decision of the Governors of the United States Postal 
Service on Changes in Rates and Classes of General Applicability for 
Competitive Products (Governors' Decision No. 15-1), September 17, 
2015 (Governors' Decision No. 15-1).
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    The attachment to Governors' Decision No. 15-1 sets forth the price 
changes and includes draft Mail Classification Schedule (MCS) language 
for competitive products of general applicability. Selected highlights 
of the price and classification changes follow.
    Priority Mail Express. Priority Mail Express prices increase, on 
average, by 15.6 percent. The existing structure of Priority Mail 
Express Retail, Commercial Base, and Commercial Plus price categories 
does not change. The proposed prices for Priority Mail Express Retail, 
Commercial Base, and Commercial Plus increase by 14.4 percent, 17.7 
percent, and 48.2 percent respectively. Due to insufficient demand, the 
Postal Service proposes eliminating the Priority Mail Express Flat Rate 
Box price category. Governors' Decision No. 15-1 at 2.
    Priority Mail. Priority Mail prices increase, on average, by 9.8 
percent. The existing structure of Priority Mail Retail, Commercial 
Base, and Commercial Plus price categories does not change. The 
proposed prices for Priority Mail Retail, Commercial Base, and 
Commercial Plus increase by 8.6 percent, 9.4 percent, and 13.3 percent 
respectively. Due to low customer usage, the Postal Service also 
proposes eliminating Regional Rate Box C and Critical Mail. Id. at 2-3.
    Parcel Select. Non-Lightweight Parcel Select prices increase, on 
average, by 3.1 percent. The average price for destination entered 
parcels and non-destination entered parcels increase by 4.9 percent and 
1.9 percent respectively. The proposed prices for Lightweight Parcel 
Select increase by 23.5 percent. The proposed prices for Parcel Select 
Nonpresort, which the Postal Service rebrands as Parcel Select Ground, 
increase by 1.9 percent. To simplify product offerings, the Postal 
Service proposes to eliminate the Parcel Select Origin Network 
Distribution Center Presort and Network Distribution Center Presort 
price categories. Id. at 3.
    Parcel Return Service. Parcel Return Service prices increase, on 
average, by 5.0 percent. The price for parcels picked up at a Return 
Sectional Center Facility will increase by 5.0 percent as will the 
price for parcels picked up at a Return Delivery Unit. Due to low 
customer demand, the Postal Service proposes eliminating the Return 
Network Distribution Center pricing category. Id.
    First-Class Package Service. First-Class Package Service prices 
increase, on average, by 12.8 percent. The Postal Service proposes to 
eliminate the 3-digit, 5-digit, and Area Distribution Center presort 
levels to simplify the product. Additionally, to streamline the 
product, the Postal Service proposes consolidating the 14, 15, and 
15.999 ounce offerings under the Commercial Plus price category and 
eliminating the Commercial Plus price category. Id. at 3-4.
    Standard Post (Retail Ground). The proposed prices for Standard 
Post, which the Postal Service rebrands as Retail Ground, increase by 
10.0 percent. Id. at 4.
    Domestic Extra Services. Prices for several Domestic Extra Services 
are proposed to increase. The retail counter enrollment fee for Premium 
Forwarding Service (PFS) increases to $18.65. The online enrollment fee 
for PFS increases to $17.10. The weekly reshipment fee for PFS 
increases to $18.65. Prices for Adult Signature service will increase 
to $5.70 for the basic service and $5.95 for the person-specific 
service. Address Enhancement Service prices increase up to 7.1 percent. 
Competitive Post Office Box prices increase by, on average, 3.5 
percent. The proposed price increase for Package Intercept Service is 
3.3 percent. Id.
    Global Express Guaranteed and Priority Mail Express International. 
Overall, Global Express Guaranteed service prices increase by 7.1 
percent. Priority Mail Express International (PMEI) service prices 
increase by 11.6 percent. Commercial Plus prices will be equivalent to 
Commercial Base prices and deeper discounting may be available to 
customers through negotiated service agreements. Prices for PMEI Flat 
Rate Envelopes will be further separated into additional country 
groups. Due to low customer usage, the Postal Service proposes 
eliminating the PMEI Flat Rate Box product. Id. at 4-5.
    Priority Mail International. Overall, Priority Mail International 
(PMI) prices increase by 10.2 percent. Commercial Plus prices will be 
equivalent to Commercial Base prices and deeper discounting may be 
available to customers through negotiated service agreements. Prices 
for PMI Flat Rate Envelopes and Boxes will be further separated into 
additional country groups. ``Insurance will be offered up to $200 for 
merchandise and $100 for documents in lieu of weight-based indemnity 
available under current international exchanges.'' For PMI pieces 
destined for Canada, a fee will be established for the International 
Service Center zone chart in order to determine applicable Origin Zone. 
In accordance with the elimination of Regional Rate Box C from domestic 
Priority Mail, PMI Regional Rate Box C will no longer be available for 
PMI Regional Rate Boxes Contracts or PMI Regional Rate Boxes--Non-
published Rates Contracts. Id. at 5.
    International Priority Airmail and International Surface Air Lift. 
The published prices for International Priority Airmail (IPA) and 
International Surface Air Lift (ISAL) are proposed to increase by 4.2 
percent and 6.3 respectively. IPA and ISAL M-Bags are proposed to 
increase by 3.5 percent and 5.3 percent respectively. Id.
    Airmail M-Bags. The published prices for Airmail M-Bags increase by 
9.2 percent. Id.

[[Page 65258]]

    First-Class Package International Service. Overall, prices for 
First-Class Package International Service (FCPIS) increase by 21.6 
percent. Commercial Plus prices will be equivalent to Commercial Base 
prices and deeper discounting may be available to customers through 
negotiated service agreements. Id.
    International Ancillary Services and Special Services. Overall, 
International Postal Money Orders prices increase by 5.6 percent. The 
International Money Order Inquiry Fee increases by 3.5 percent. The 
International Money Transfer Service prices increase up to 3.7 percent. 
Id. at 6.
    Further details of these changes may be found in the attachment to 
Governors' Decision No. 15-1, which is included as part of the Notice 
and contains proposed changes to the MCS in legislative format.
    The Notice also includes three additional attachments:
     A redacted table showing FY 2016 projected volumes, 
revenues, attributable costs, contribution, and cost coverage for each 
product, assuming implementation of the new prices on January 17, 2016.
     A redacted table showing FY 2016 projected volumes, 
revenues, attributable costs, contribution, and cost coverage for each 
product, assuming a hypothetical implementation of the new prices on 
October 1, 2015.
     An application for non-public treatment of the 
attributable costs, contribution, and cost coverage data in the 
unredacted version of the annex to Governors' Decision No. 15-1, as 
well as the supporting materials for the data.
    The table referenced above shows that the share of institutional 
cost generated by competitive products, assuming implementation of new 
prices on January 17, 2016, is expected to be 15.8 percent.
    Notice. The Commission establishes Docket No. CP2016-9 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, 3642, 39 CFR part 3015, and 39 CFR 3020 subparts B 
and E. Comments are due no later than October 29, 2015. For specific 
details of the planned price and classification changes, interested 
persons are encouraged to review the Notice, which is available on the 
Commission's Web site, www.prc.gov.
    Pursuant to 39 U.S.C. 505, Tracy N. Ferguson is appointed to serve 
as Public Representative to represent the interests of the general 
public in this docket.
    It is ordered:
    1. The Commission establishes Docket No. CP2016-9 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, 3642, 39 CFR part 3015, and 39 CFR 3020 subparts B and E.
    2. Comments are due no later than October 29, 2015.
    3. The Commission appoints Tracy N. Ferguson to serve as Public 
Representative to represent the interests of the general public in this 
proceeding.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2015-27096 Filed 10-23-15; 8:45 am]
 BILLING CODE 7710-FW-P