81 FR 32817 - Market Dominant Price Adjustment

POSTAL REGULATORY COMMISSION

Federal Register Volume 81, Issue 100 (May 24, 2016)

The Commission is noticing a recently-filed Postal Service notice announcing rate adjustments affecting some market dominant domestic and international products and services, along with six temporary mailing promotions and proposed classification changes. This notice informs the public of the filing, invites public comment, and takes other administrative steps.

[Federal Register Volume 81, Number 100 (Tuesday, May 24, 2016)]
[Notices]
[Pages 32817-32818]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-12107]


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POSTAL REGULATORY COMMISSION

[Docket No R2016-5; Order No. 3297]


Market Dominant Price Adjustment

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently-filed Postal Service 
notice announcing rate adjustments affecting some market dominant 
domestic and international products and services, along with six 
temporary mailing promotions and proposed classification changes. This 
notice informs the public of the filing, invites public comment, and 
takes other administrative steps.

DATES: Comments are due: June 6, 2016.

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:

Table of Contents

I. Introduction
II. Overview
III. Initial Commission Action
IV. Ordering Paragraphs

I. Introduction

    In accordance with 39 U.S.C. 3622 and 39 CFR part 3010, the Postal 
Service filed notice of its intent to adjust the prices of certain 
Market Dominant products.\1\ The Postal Service seeks Commission 
approval of six temporary promotions applicable to First-Class Mail and 
Standard Mail during Calendar Year (CY) 2017. Notice at 1. The Postal 
Service also requests Commission approval to increase the price of 
First-Class Mail Parcels (FCMP), effective August 28, 2016. Id. The 
Postal Service also seeks to incorporate the Universal Postal Union's 
(UPU) January 2016 price increases for Inbound Letter Post in the price 
cap calculation.\2\
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    \1\ United States Postal Service Notice of Market-Dominant Price 
Adjustment, May 16, 2016 (Notice).
    \2\ Id. at 3. Prices for Inbound Letter Post, also called 
terminal dues, are the reimbursements foreign postal operators pay 
the Postal Service for delivery of international mail. Terminal dues 
are not set by the Postal Service; rather, they are set by the UPU.
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II. Overview

    The Postal Service asserts that it provides the information 
required by 39 CFR 3010.12. Id. at 1. The Postal Service represents 
that it will inform the public of the proposed price adjustments 
consistent with 39 CFR 3010.12(a)(3). Id. at 2. Specifically, the 
Postal Service states that it will publish notice in the Postal 
Bulletin and the PCC Insider and issue a press release and postings on 
USPS.com and the Postal Explorer Web site. Id. The Postal Service 
asserts that its planned price adjustments comply with 39 U.S.C. 3622 
and 3626. Id. at 1-5, 10-14.

A. Planned First-Class Mail and Standard Mail Promotions

    The Postal Service seeks approval for the following six promotions 
for the periods indicated:
     Earned Value Reply Mail Promotion (January-June 2017),
     Tactile, Sensory and Interactive Mailpiece Engagement 
Promotion (February-July 2017),
     Emerging and Advanced Technology Promotion (March-August 
2017),
     Direct Mail Starter Promotion (May-July 2017),
     Personalized Color Transpromo Promotion (July-December 
2017), and
     Mobile Shopping Promotion (August-December 2017).

Id. at 7-9. The Postal Service asserts that five of these six 
promotions are continuations of CY 2016 promotions approved by the 
Commission in Docket No. R2016-2.\3\ The Postal Service represents that 
it will update the five continuing promotions for CY 2017 to vary the 
duration of certain promotions, expand eligibility to include 
additional mailpieces and categories of qualifying technology, and vary 
the credit amounts. Id. at 6-9. The Postal Service proposes to offer 
one new promotion, the Direct Mail Starter Promotion, aimed to 
encourage small business mailers to design direct mail marketing 
campaigns that incorporate a qualifying technology (such as a QR code) 
that lead the consumer to a mobile-optimized Web site. Id. at 6, 8.
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    \3\ Id. at 6 (citing Docket No. R2016-2, Order No. 2861, Order 
on Price Adjustments for Market Dominant Products and Related Mail 
Classification Changes, December 10, 2015).
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B. Inbound Letter Post and FCMP Price Increases

    The Postal Service represents that its planned price increases 
would align FCMP ``Retail'' prices with the corresponding prices for 
First-Class Package Service (FCPS), a competitive product. Id. at 10. 
Specifically, the Postal Service indicates that it proposes increases 
to the one-, two-, and three-ounce rate cells in the FCMP ``Retail'' as 
well as the ``Keys and Identification Devices'' price categories. Id. 
at 10, n.7. The Postal Service notes that in January 2016, the UPU 
increased the prices for Inbound Letter Post. Id. at 3. The Postal 
Service represents that ``[i]n First-Class Mail, th[e] additional 
[price cap] authority [resulting from the planned CY 2017 promotions] 
is offset by the impact of the price increases in FCMP and the 
incorporation of the January 2016 price increases for Inbound Letter 
Post in the price cap calculation.'' Id. (footnote omitted).

C. Contents of Notice

    To support its Notice, the Postal Service filed its proposed 
changes to the Mail Classification Schedule, CY 2017 Promotions 
Calendar, and calculation of price cap authority. The Postal Service 
concurrently filed three library references, workpapers supporting its 
price cap calculation, along with an application for non-public 
treatment for one library reference.\4\
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    \4\ Library Reference USPS-LR-R2016-5/1, May 16, 2016 (First-
Class Mail Workpapers); Library Reference USPS-LR-R2016-5/2, May 16, 
2016 (Standard Mail Workpapers); Library Reference USPS-LR-R2016-5/
NP1, May 16, 2016 (First-Class Mail International Workpapers 
(Nonpublic)). The non-public material consists of two Excel files 
pertaining to First-Class Mail International. See Notice of the 
United States Postal Service of Filing of USPS-LR-R2016-5/NP1, May 
16, 2016, Attachment 1 at 1. See 39 CFR part 3007 for information on 
access to non-public material.
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III. Initial Commission Action

    The Commission establishes Docket No. R2016-5 to consider the 
matters raised by the Notice. The Commission invites comments on 
whether the Postal Service's filing is consistent with the requirements 
of 39 U.S.C. 3622 and 3626 and 39 CFR part 3010. Comments are due June 
6, 2016. See 39 CFR 3010.11(a)(5); 3001.15. The public portions of 
these filings can be accessed via the Commission's Web site (http://www.prc.gov).

[[Page 32818]]

    The Commission appoints Kenneth E. Richardson to serve as an 
officer of the Commission to represent the interests of the general 
public in these proceedings (Public Representative).

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. R2016-5 to consider the 
matters raised by the Notice.
    2. Comments are due June 6, 2016.
    3. Pursuant to 39 U.S.C. 505, Kenneth E. Richardson is appointed to 
serve as an officer of the Commission to represent the interests of the 
general public in these proceedings (Public Representative).
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Stacy L. Ruble,
Secretary.
[FR Doc. 2016-12107 Filed 5-23-16; 8:45 am]
BILLING CODE 7710-FW-P