[Federal Register Volume 78, Number 98 (Tuesday, May 21, 2013)]
[Notices]
[Pages 29785-29786]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-12006]
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POSTAL REGULATORY COMMISSION
[Docket No. R2013-7; Order No. 1714]
Priority Mail Pricing
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
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SUMMARY: The Commission is noticing a recently-filed Postal Service
notice announcing a proposal to include, for no additional charge,
insurance up to $100 on most Priority Mail pieces. This notice
addresses procedural steps associated with this filing.
ADDRESSES: Submit comments electronically by accessing the ``Filing
Online'' link in the banner at the top of the Commission's Web site
(http://www.prc.gov) or by directly accessing the Commission's Filing
Online system at https://www.prc.gov/prc-pages/filing-online/login.aspx. Commenters who cannot submit their views electronically
should contact the person identified in the FOR FURTHER INFORMATION
CONTACT section as the source for case-related information for advice
on alternatives to electronic filing.
DATES: Comments are due: May 30, 2013.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel,
at 202-789-6820 (case-related information) or [email protected]
(electronic filing assistance).
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Overview
II. Administrative Actions
III. Ordering Paragraphs
I. Overview
On May 10, 2013, the Postal Service filed notice, pursuant to 39
U.S.C. 3622 and 39 CFR 3010, announcing a plan to automatically
include, at no additional charge, $50 or $100 of insurance coverage
with most Priority Mail pieces.\1\ The price change is scheduled to
take effect July 28, 2013.
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\1\ United States Postal Service Notice of Market-Dominant Price
Adjustment, May 10, 2013 (Notice).
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Price adjustment description. Currently, the Postal Service charges
Priority Mail users a fee of $1.95 for insurance coverage up to $50 and
$2.45 for insurance coverage between $50.01 and $100. Notice at 2. The
Postal Service's principal domestic competitors, FedEx and UPS, include
insurance coverage up to $100 at no extra charge. Id. The Postal
Service asserts that this provides a competitive advantage with
shippers, particularly large volume shippers. Id. By offering insurance
coverage up to $100, for no additional charge, on most Priority Mail
pieces, the Postal Service hopes to improve the competitiveness of
Priority Mail and potentially grow its overall market share. Id.
The Postal Service plans to offer automatic insurance coverage up
to $100 for no extra charge on all domestic Priority Mail pieces that
bear an Intelligent Mail package barcode (IMpb) and for which the
mailer pays Commercial Plus prices or uses a ``Qualifying Payment
Method.'' \2\ The Postal Service plans to offer automatic insurance
coverage up to $50 in value on all other domestic Priority Mail pieces
that bear an IMpb or other USPS retail tracking barcode.\3\ Id. at 2-3.
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\2\ Qualifying Payment Methods are limited to ePostage,
Electronic Verification System (eVS), Hardcopy Manifest, or an
approved Manifest Mailing System. Id. at 3 n.2.
\3\ Automatic insurance coverage will not be offered with
Priority Mail pieces sent using Merchandise Return Service, Priority
Mail Open and Distribute, or Premium Forwarding Service. Id. at 3
n.3.
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Price cap compliance. For the Special Services class of mail, the
Postal Service states that it has inflation-based price adjustment
authority of 1.053 percent \4\ and unused price adjustment authority of
2.114 percent,\5\ neither of which the Postal Service intends to
utilize in this docket. Id. at 3-4. The Postal Service indicates that
by eliminating the fees for the first $100 (or $50) of insurance
coverage for most Priority Mail pieces, the prices for Special Services
class will decrease by 0.452 percent. Id. at 5. The Postal Service
indicates that after the price change, the unused pricing authority
available for the Special Services class will be 3.619. Id.
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\4\ This is based on the Consumer Price Index-All Urban
Consumers, U.S. All Items (the ``CUUR0000SA0'' series). Id. at 3.
\5\ See Docket No. R2013-1, Order No. 1541 (November 16, 2012),
at 72.
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Workshare discounts and preferred rates. The Postal Service asserts
the price change does not affect workshare discounts. Id. at 7. Apart
from basing the amount of automatic insurance on the mailer's use of
certain postage payment methods, the Postal Service asserts that the
price change does not exclude any mailers and will therefore not affect
compliance with any preferred rate requirements. Id.
Mail Classification Schedule (MCS). Proposed changes to the MCS,
which describe the price change, appear in Attachment A of the Postal
Service's Notice.
II. Administrative Actions
Initiation of proceedings. The Commission hereby establishes Docket
No. R2013-7, to review the Postal Service's planned price adjustment.
The Postal Service's Notice and any subsequent filings in this docket
will be posted to the Commission's Web site at http://www.prc.gov.
Public comment period. The Commission's rules provide a period of
20 days from the date of the Postal Service's filing for public
comment. 39 CFR 3010.13(a)(5). Comments by interested persons are due
no later than May 30, 2013.
Appointment of Public Representative. In conformance with 39 U.S.C.
505, the Commission appoints
[[Page 29786]]
Kenneth E. Richardson to represent the interests of the general public
in this proceeding.
III. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket No. R2013-7 to consider the
price adjustment to insurance identified in the Postal Service's May
10, 2013 Notice.
2. Comments by interested persons on the planned price adjustments
are due no later than May 30, 2013.
3. Pursuant to 39 U.S.C. 505, the Commission appoints Kenneth E.
Richardson to represent the interests of the general public in this
proceeding.
4. The Commission directs the Secretary of the Commission to
arrange for publication of this notice in the Federal Register.
By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2013-12006 Filed 5-20-13; 8:45 am]
BILLING CODE 7710-FW-P