Daily Rules, Proposed Rules, and Notices of the Federal Government
October 11, 2012, the Postal Service filed notice with the Commission concerning changes in rates of general applicability for competitive products.
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.
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.
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.
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.
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.
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.
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
By the Commission.