[Federal Register Volume 77, Number 202 (Thursday, October 18, 2012)]
[Notices]
[Pages 64148-64150]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-25655]
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POSTAL REGULATORY COMMISSION
[Docket No. CP2013-3; Order No. 1500]
Postal Rate and Classification Changes
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
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SUMMARY: This document provides the public with notice that the Postal
Service has filed notice of its intention of planned rate and
classification changes for competitive postal products. The changes
have an anticipated effective date of January 27, 2013. The Postal
Service's filing triggers a review process, which includes an
opportunity for the public to comment. This document addresses the
comment process and other matters that pertain to the planned changes.
DATES: Comments are due: October 26, 2012.
ADDRESSES: Submit comments electronically via the Commission's Filing
Online system at http:www.prc.gov. Commenters who cannot submit their
views electronically should contact the person identified in the FOR
FURTHER INFORMATION CONTACT portion of the preamble for advice on
alternatives to electronic filing.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel,
at 202-789-6824.
SUPPLEMENTARY INFORMATION: October 11, 2012, 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. The changes are
[[Page 64149]]
scheduled to become effective January 27, 2013.
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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. 12-2, October 11, 2012 (Notice). The
Notice is available on the Commission's Web site, www.prc.gov.
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. 12-2, which
evaluates the new prices and classification changes in accordance with
39 U.S.C. 3632-33 and 39 CFR 3015.2. 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(a) and 39 CFR part 3015.
The attachment to the Governors' Decision sets forth the price
changes and includes draft Mail Classification Schedule language for
competitive products of general applicability. Selected highlights of
the price and classification changes follow.
Express Mail. Overall, Express Mail prices increase by 5.8 percent.
Retail prices increase, on average, by 6.5 percent. The existing
structure of the pricing categories for zoned Retail, Commercial Base,
and Commercial Plus price categories does not change. Prices in the
Commercial Base category, which offers lower prices to customers who
use online or other authorized postage payment methods, increase by 2.0
percent. Prices in the Commercial Plus category, which offers even
lower prices to large-volume customers, receive a 1.0 percent increase.
Prices for Retail Flat Rate Envelopes and Legal Flat Rate Envelopes
increase by 5.3 percent. The recently-introduced Padded Flat Rate
Envelope increases to $19.95.
Priority Mail. Price increases for Priority Mail vary by rate cell
and price tier. Priority Mail prices increase by 6.3 percent overall,
with average retail prices increasing 9.0 percent. The Postal Service
notes that approximately 3.0 percent of this 9.0 percent increase is
due to the addition of free tracking. Priority Mail Flat Rate Box
prices change to the following: Small ($5.80), Medium ($12.35), Large
($16.85), and Large APO/FPO/DPO ($14.85).
The existing structure of Retail, Commercial Base, and Commercial
Plus price categories does not change. Commercial Base category prices
increase by 3.7 percent. The Commercial Plus category prices receive a
3.8 percent increase. The Commercial Plus price category continues to
offer Critical Mail letters and flats, a half-pound price, an
assortment of Flat Rate packaging, and Commercial Plus Cubic pricing.
As a new offering, customers sending Critical Mail letters and
flats have the option of receiving a signature upon delivery. The new
letter option is priced at $4.60 while the flat option is priced at
$5.35.
Parcel Select. Parcel Select Service prices increase, on average,
by 9.0 percent. For destination entry parcels, the average price
increases 8.0 percent for dropshipping at a destination delivery unit,
4.9 percent for parcels entered at a destination sectional center
facility, and 4.8 percent for parcels entered at a destination Network
Distribution Center (NDC).
For nondestination-entered parcels, the average price increase is
5.7 percent for origin NDC presort, 4.3 percent for NDC presort, and
4.2 percent for nonpresort. Lightweight Parcel Select (formerly
Standard Mail commercial parcels) prices increase by 9.8 percent. The
Regional Ground category is eliminated.
Parcel Return. Parcel Return Service prices increase, on average,
by 4.8 percent. The price for returned parcels retrieved at a NDC
increases by 1.0 percent, and the price for parcels picked up at a
return delivery unit increases by 8.5 percent. Additionally, the Postal
Service introduces a full network return solution for high-volume
mailers of at least 50,000 pieces annually.
First-Class Package Service. First-Class Package Service prices
increase, overall, by 3.0 percent, with no structural changes. First-
Class Package Service was transferred to the competitive product list
on April 6, 2011.
Parcel Post/Standard Post. On July 20, 2012, the Commission
conditionally approved a Postal Service request to transfer Parcel Post
from the market dominant product list to the competitive product list.
As part of the Commission's conditional approval, the Postal Service
must increase the prices for Parcel Post to achieve at least 100
percent cost coverage. To satisfy this condition, the Postal Service
proposes to increase the prices for Parcel Post by 21 percent to
achieve 100 percent cost coverage in this docket. It also seeks to
rename the transferred Parcel Post product as Standard Post.
Domestic Extra Services. Premium Forwarding Service prices increase
by 10.5 percent. The weekly reshipment fee increases to $17.00. On
average, Address Enhancement Service prices increase between 3.7 and
17.7 percent. Competitive Post Office Box prices increase by 2.6
percent. The Pick-up On Demand fee increases to $20.00. As a new
offering, customers ordering flat rate packaging supplies online can
pay a fee to get these supplies delivered faster. This new service is
priced at $2.50 and a price range will be established by the Postal
Service.
Global Express Guaranteed and Express Mail International. Global
Express Guaranteed (GXG) service prices increase, on average, by 9.6
percent. Express Mail International (EMI) service prices increase, on
average, by 13.2 percent.
For both GXG and EMI, most of the existing price structure remains
the same. However, the maximum weight of the EMI Flat Rate Envelope
will decrease from 20 pounds to 4 pounds. Additionally, the Postal
Service may offer a promotional discount or rebate on certain GXG and
EMI items.
Priority Mail International. Overall, Priority Mail International
(PMI) prices increase by 15.1 percent. The existing price structure of
PMI Flat Rate, Retail, Commercial Base, and Commercial Plus price
categories is maintained. Classification changes include the
availability of Electronic USPS Delivery Confirmation International,
which is optionally provided on certain Priority Mail International
Flat Rate Envelope and Small Flat Rate Box offerings to select
destinations at no change. Electronic USPS Delivery Confirmation
International offers scan events for customers using certain software
or online tools. Additionally, the Postal Service may offer a
promotional discount or rebate on certain PMI items.
International Priority Airmail. International Priority Airmail has
a price increase of 1.9 percent.
International Surface Air Lift. International Surface Air Lift has
a price increase of 4.4 percent.
Airmail M-Bags. The published prices for Airmail M-Bags increase by
7.3 percent.
First-Class Package International Service. On September 10, 2012,
the Commission approved a Postal Service request to transfer First-
Class Mail International Packages and Rolls from the market dominant
product list to the competitive product list. The Postal Service
identifies the newly-transferred product as First-Class Package
International Service (FCPIS). Due to anticipated cost increases and
market conditions, FCPIS will receive a 58.6 percent increase. As part
of FCPIS, the Postal Service will offer (1) Electronic USPS Delivery
Confirmation International for certain FCPIS mailpieces meeting certain
physical characteristics sent to select destinations; and (2)
Commercial Base and Commercial Plus discounts. Additionally, the Postal
Service may offer a promotional discount or rebate on certain Outbound
Single-Piece FCPIS items.
International Ancillary Services. Several international ancillary
services and paper money orders receive price increases. Certificates
of Mailing prices
[[Page 64150]]
increase by 4.3 percent. Registered Mail prices increase by 10.2
percent. International Return Receipt also receives price increases,
and International Postal Money Order prices increase by 1.1 percent.
The amount of merchandise insurance coverage available for no fee
increases from $100 to $200. Because the Postal Service is eliminating
the $0.85 fee for the $100.01-$200 merchandise insurance coverage tier,
the overall price increase for international ancillary services is zero
percent.
Details of these changes may be found in the attachment to
Governors' Decision No. 12-2 which is included as part of the Notice.
The Notice also includes three additional attachments:
A redacted table showing FY 2013 projected volumes,
revenues, attributable costs, contribution, and cost coverage for each
product, assuming implementation of the new prices on January 27, 2013.
A redacted table showing FY 2013 projected volumes,
revenues, attributable costs, contribution, and cost coverage for each
product, assuming a hypothetical implementation of the new prices on
October 1, 2012.
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. 12-2, 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 27, 2013, is expected to be 10.4 percent.
Notice. The Commission establishes Docket No. CP2013-3 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 26, 2012.
Pursuant to 39 U.S.C. 505, Emmett Rand Costich 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. CP2013-3 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 on the Notice are due no later than October 26, 2012.
3. The Commission appoints Emmett Rand Costich 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.
Shoshana M. Grove,
Secretary.
[FR Doc. 2012-25655 Filed 10-17-12; 8:45 am]
BILLING CODE 7710-FW-P