82 FR 17467 - Market Test of Experimental Product-Customized Delivery

POSTAL REGULATORY COMMISSION

Federal Register Volume 82, Issue 68 (April 11, 2017)

The Commission is noticing a recently-filed Postal Service request for an exemption from the $10 million annual revenue limitation for the Customized Delivery market test. This notice informs the public of the filing, invites public comment, and takes other administrative steps.

[Federal Register Volume 82, Number 68 (Tuesday, April 11, 2017)]
[Notices]
[Pages 17467-17468]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-07176]


=======================================================================
-----------------------------------------------------------------------

POSTAL REGULATORY COMMISSION

[Docket No. MT2014-1; Order No. 3849]


Market Test of Experimental Product-Customized Delivery

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Commission is noticing a recently-filed Postal Service 
request for an exemption from the $10 million annual revenue limitation 
for the Customized Delivery market test. This notice informs the public 
of the filing, invites public comment, and takes other administrative 
steps.

DATES: Comments are due: April 26, 2017.

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 April 4, 2017, the Postal Service filed a 
request, pursuant to 39 U.S.C. 3641(e)(2), for an exemption from the 
$10 million annual revenue limitation for the Customized Delivery 
market test.\1\ The Commission authorized the market test to proceed in 
Order No. 2224 and authorized the extension of the market test in Order 
No. 3543 until October 31, 2017.\2\
---------------------------------------------------------------------------

    \1\ Request of the United States Postal Service for Exemption 
from Revenue Limitation on Market Test of Experimental Product--
Customized Delivery, with Portions Filed Under Seal, April 4, 2017 
(Request).
    \2\ See Order Authorizing Customized Delivery Market Test, 
October 23, 2014 (Order No. 2224); see also Order Authorizing 
Extension of Customized Delivery Market Test and Updating Data 
Collection Plan, September 28, 2016 (Order No. 3543).
---------------------------------------------------------------------------

    The Postal Service states that ``Customized Delivery is an 
experimental package delivery service that offers delivery of groceries 
and other prepackaged goods within a customized delivery window.'' 
Request at 4. The Postal Service states that the purpose of the market 
test is to test and develop a long-term, scalable solution to 
facilitate expansion to additional markets. Id.
    Total revenues anticipated or received by the Postal Service from 
the Customized Delivery market test must not exceed $10 million in any 
year unless the Commission exempts the market test from that limit.\3\ 
If the Commission grants an exemption, total revenues anticipated or 
received by the Postal Service from Customized Delivery may not exceed 
$50 million in any year, adjusted for inflation. Id. 39 U.S.C. 
3641(e)(2), (g). In its initial notice for the Customized Delivery 
market test, the Postal Service requested an exemption from the $10 
million revenue limitation based on then-current projections of 
expected revenue.\4\ The Commission denied the request for exemption as 
premature, but noted that the Postal Service may resubmit its request 
``once it collects sufficient data to calculate the total revenue 
received and estimate the additional revenue anticipated for each 
fiscal year of the market test.'' Order No. 2224 at 18.
---------------------------------------------------------------------------

    \3\ See 39 U.S.C. 3641(e). The $10 million annual limitation is 
adjusted by the change in the consumer price index for all urban 
consumers (CPI-U). Id. 39 U.S.C. 3641(g).
    \4\ Notice of the United States Postal Service of Market Test of 
Experimental Product--Customized Delivery, September 23, 2014, at 7.
---------------------------------------------------------------------------

    The Postal Service asserts that it now has the data available to 
make the calculations requested by the Commission. Request at 3. The 
Postal Service states that if current demand for Customized Delivery 
continues, it anticipates reaching the inflation adjusted $10 million 
revenue limitation for FY 2017 in early June 2017.\5\
---------------------------------------------------------------------------

    \5\ Id. The Postal Service calculates an inflation adjusted 
revenue limitation of $11,170,163. Id. at 2.
---------------------------------------------------------------------------

    The Commission shall approve the request for exemption if it 
determines that: (1) The product is likely to benefit the public and 
meet an expected demand; (2) the product is likely to contribute to the 
financial stability of the Postal Service; and (3) the product is 
unlikely to result in unfair or otherwise inappropriate competition. 39 
U.S.C. 3641(e)(2). In its Request, the Postal Service discusses how the 
Customized Delivery market test benefits the public and meets an 
expected demand, contributes to the Postal Service's financial 
stability, and is unlikely to result in unfair or inappropriate 
competition. Request at 5-7. The Commission's regulations require the 
Postal Service to file cost and revenue information with its request 
for exemption. 39 CFR 3035.16(f). The Postal Service asserts that the 
financial documentation and workpapers submitted under seal show actual 
and expected revenue and costs for the market test. Request at 1, 4.
    The Commission invites comments on whether the Request complies 
with applicable statutory and regulatory requirements, including 39 
U.S.C. 3641, 39 CFR part 3035, Order No. 2224, and Order No. 3543. 
Comments are due no later than April 26, 2017. The public portions of 
these filings can be accessed via the Commission's Web site (http://www.prc.gov).
    39 U.S.C. 505 requires the Commission to designate an officer of 
the Commission to represent the interests of the general public in all 
public proceedings (Public Representative). The Commission previously 
appointed Lauren A. D'Agostino to serve as the Public Representative in 
this proceeding. She

[[Page 17468]]

remains appointed to serve as the Public Representative.
    It is ordered:
    1. The Commission invites comments on the Request of the United 
States Postal Service for Exemption from Revenue Limitation on Market 
Test of Experimental Product--Customized Delivery, with Portions Filed 
Under Seal, filed April 4, 2017.
    2. Pursuant to 39 U.S.C. 505, Lauren A. D'Agostino remains 
appointed to serve as the Public Representative in this proceeding.
    3. Comments by interested persons are due no later than April 26, 
2017.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2017-07176 Filed 4-10-17; 8:45 am]
 BILLING CODE 7710-FW-P