Daily Rules, Proposed Rules, and Notices of the Federal Government
In Order No. 1541, the Commission determined provisionally that, pursuant to 39 CFR 3010.13(j), the planned adjustments do not violate the price cap in 39 U.S.C. 3622(d); are consistent with, or justified by an exception to, the workshare discount limitations in 39 U.S.C. 3622(e); and establish prices that satisfy 39 U.S.C. 3626.
Pursuant to Order No. 1541, on November 26, 2012, the Postal Service filed revised prices for Standard Mail Flats.
The revised prices for Standard Mail Flats reflect an above-average increase of 2.617 percent. No other Standard Mail prices were changed. Response at 3.
The following table presents the Postal Service's planned percentage price changes for Standard Mail products.
To achieve the above-average price increase for the Standard Mail Flats product, the Postal Service made two principal changes to its initially filed planned Standard Mail Flats price adjustments. First, it reduced the prebarcoding discount between automation and non-automation Flats from 7.5 to 5.5 cents. Second, the Postal Service used the correct avoided cost of 4.6 cents for automation 3-Digit Flats.
The Postal Service acknowledges that the Commission's FY 2010 ACD Order requested that the Postal Service provide “ `an explanation of how the proposed prices will move the Flats cost coverage toward 100 percent' ” (footnote omitted).
In Order No. 1541, the Commission requested that the Postal Service explain why different discount levels for Commercial and Nonprofit Standard Mail are consistent with the Postal Accountability and Enhancement Act (PAEA) and not contrary to
The Postal Service states that “[t]he varying presort discounts among Commercial and Nonprofit Standard Mail arise from the complex task of designing rates that comply with 39 U.S.C. 3626(a)(6),” which requires that the average revenue per piece from nonprofit products equal, as nearly as practicable, 60 percent of the average revenue per piece from the corresponding Commercial products.
The Postal Service points out that, in both previous rate cases and the current docket, some nonprofit discounts have varied from the corresponding Commercial presort discounts.
In conformance with 39 CFR 3010.14(b)(9), the Postal Service identifies changes to the Standard Mail Flats MCS. Attachment A to the Response presents price and classification changes.
Interested persons are encouraged to review the Postal Service's Response and workpapers in their entirety.
Pursuant to Commission rule 3010.13(f), comments should address subjects identified in rule 3010.13(b) and may address the substance of the Postal Service's Response.
Persons without access to the Internet or otherwise unable to file documents electronically may request a waiver of the electronic filing requirement by filing a motion for waiver with the Commission. The motion may be filed along with any comments the person may wish to submit in this docket. Persons requesting a waiver may file hardcopy documents with the Commission either by mailing or by hand delivery to the Office of the Secretary, Postal Regulatory Commission, 901 New York Avenue NW., Suite 200, Washington, DC 20268-0001 during regular business hours by the date specified for such filing. Any person needing assistance in requesting a waiver may contact the Commission's docket section at
1. Comments by interested persons on the planned price adjustments are due no later than December 4, 2012.
2. The Commission directs the Secretary of the Commission to arrange for prompt publication of this notice in the
By the Commission.