82 FR 48285 - Market Dominant Price Adjustment

POSTAL REGULATORY COMMISSION

Federal Register Volume 82, Issue 199 (October 17, 2017)

The Commission is noticing a recently-filed Postal Service notice of inflation-based rate adjustments affecting market dominant domestic and international products and services, along with numerous proposed classification changes. The adjustments and other changes are scheduled to take effect January 21, 2018. This notice informs the public of the filing, invites public comment, and takes other administrative steps.

[Federal Register Volume 82, Number 199 (Tuesday, October 17, 2017)]
[Notices]
[Pages 48285-48286]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-22370]


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POSTAL REGULATORY COMMISSION

[Docket No. R2018-1; Order No. 4153]


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 of inflation-based rate adjustments affecting market dominant 
domestic and international products and services, along with numerous 
proposed classification changes. The adjustments and other changes are 
scheduled to take effect January 21, 2018. This notice informs the 
public of the filing, invites public comment, and takes other 
administrative steps.

DATES: Comments are due: October 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: 

Table of Contents

I. Introduction and Overview
II. Initial Administrative Actions
III. Ordering Paragraphs

I. Introduction and Overview

    On October 6, 2017, the Postal Service filed a notice of inflation-
based rate adjustments affecting market dominant domestic and 
international products and services, along with related product 
description changes to the Mail Classification Schedule (MCS).\1\ The 
intended effective date is January 21, 2018. Notice at 2.
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    \1\ Notice of Market Dominant Price Adjustment, October 6, 2017, 
at 3 (Notice).
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    Contents of filing. The Postal Service's filing consists of the 
Notice, which the Postal Service represents addresses the data and 
information required under 39 CFR 3010.12; four attachments 
(Attachments A-D) to the Notice; and eight sets of workpapers filed as 
library references.
    Attachment A presents the proposed price and related product 
description changes to the MCS. Id. Attachment A. Attachments B and C 
address workshare discounts and related information and the price cap 
calculation. Notice, Attachments B and C, respectively. Attachment D is 
a copy of Governors' Resolution No. 16-18. Notice, Attachment D.
    Several library references present supporting financial 
documentation for the five classes of mail and for First-Class Mail 
International. Notice at 6 n.9. The First-Class Mail International 
library reference was filed under seal.\2\ Library Reference USPS-LR-
R2018-1/6 documents modifications to the cost avoidance models for USPS 
Marketing Mail and Periodicals.\3\ The Postal Service states that these 
modifications reflect the elimination of Flats Sequencing System (FSS)-
specific pricing in Docket No. R2017-1 and the proposed Domestic Mail 
Manual (DMM) changes related to 5-Digit pallets. Id. Library Reference 
USPS-LR-R2018-1/7 provides census data and volumes related to the Move 
Update assessment charge.\4\
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    \2\ See Notice of the United States Postal Service of Filing 
USPS-LR-R2018-1/NP1, October 6, 2017.
    \3\ Library Reference USPS-LR-R2018-1/6, October 6, 2017, 
Preface at 1.
    \4\ Library Reference USPS-LR-R2018-1/7, October 6, 2017, 
Preface at 1.
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    Planned price adjustments. The Postal Service's planned percentage 
changes by class are, on average, as follows:

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                                                           Planned price
                  Market dominant class                   adjustment (%)
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First-Class Mail........................................           1.905
USPS Marketing Mail.....................................           1.908
Periodicals.............................................           1.924
Package Services........................................           1.960
Special Services........................................           1.986
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[[Page 48286]]

Notice at 6.
    Price adjustments for products within classes vary from the 
average. See, e.g., id. at 8 (Table 5 showing range for First-Class 
Mail products). Most of the planned adjustments entail increases to 
market dominant rates and fees; however, in a few instances, the Postal 
Service proposes no adjustment. See id. at 8, 27.
    Close out of Calendar Year (CY) 2017 promotions. The Postal Service 
states that the new prices reflect the close out of the CY 2017 
promotions for First-Class Mail and USPS Marketing Mail. Id. at 29.
    Amendment to pallet preparation. The Postal Service proposes to 
amend the DMM to increase the preparation of USPS Marketing Mail and 
Periodicals Carrier Route bundles on 5-Digit Carrier Route pallets in 
non-FSS zones. Id. at 30. The Postal Service states that the billing 
determinants for USPS Marketing Mail and Periodicals have been adjusted 
to reflect this change. Id.
    Proposed product description changes. Stating that there are no 
substantive classification changes associated with its request, the 
Postal Service displays the new prices and related product description 
changes to the market dominant section of the MCS in Attachment A. Id. 
at 33.

II. Initial Administrative Actions

    The Commission hereby provides public notice of the Postal 
Service's filing and pursuant to 39 CFR 3010.11 establishes Docket No. 
R2018-1 to consider the planned price adjustments in rates and fees for 
market dominant postal products and services, as well as the related 
classification changes, identified in the Postal Service's October 6, 
2017 Notice. The Commission invites comments from interested persons on 
whether the Notice is consistent with 39 U.S.C. 3622 and the 
requirements of 39 CFR part 3010. Comments are due no later than 
October 26, 2017.
    The Commission has posted the public portions of the Postal 
Service's filing on its Web site at http://www.prc.gov. The Commission 
will post revisions to the filing (if any) or other documents the 
Postal Service submits in this docket on its Web site, along with 
related Commission documents, comments, or other submissions, unless 
such filings are the subject of an application for non-public 
treatment. The Commission's policy on access to documents filed under 
seal appears in 39 CFR part 3007.
    Pursuant to 39 U.S.C. 505, the Commission appoints Lee McFarland to 
represent the interests of the general public (Public Representative) 
in this proceeding.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. R2018-1 to consider 
planned price adjustments in rates and fees for market dominant postal 
products and services and related changes identified in the Postal 
Service's October 6, 2017 Notice.
    2. Comments on the planned price adjustments and related 
classification changes are due no later than October 26, 2017.
    3. Pursuant to 39 U.S.C. 505, Lee McFarland is appointed to serve 
as an officer of the Commission (Public Representative) to represent 
the interests of the general public in this proceeding.
    4. The Commission directs the Secretary of the Commission to 
arrange for prompt publication of this notice in the Federal Register.

    By the Commission.
Stacy L. Ruble,
Secretary.
[FR Doc. 2017-22370 Filed 10-16-17; 8:45 am]
 BILLING CODE 7710-FW-P