[Federal Register Volume 71, Number 135 (Friday, July 14, 2006)]
[Notices]
[Pages 40172-40174]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-11141]
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POSTAL RATE COMMISSION
[Docket No. MC2006-5; Order No. 1470]
Periodicals Nominal Rate Minor Classification Change
AGENCY: Postal Rate Commission.
ACTION: Notice and order.
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SUMMARY: This order announces a mail classification docket to consider
a proposal to amend the definition of ``nominal rate'' subscription for
publications in the Periodicals class. Estabishing this docket will
allow interested persons to participate in the Commission's
consideration of the proposed change, which liberalizes the current
definition. It will also allow them to comment on the appropriateness
of treating the case on an expedited basis. The order identifies
preliminary procedural steps, including appointment of the Postal
Service as settlement coordinator.
DATES: 1. Deadline for filing library reference containing
documentation of definition change adopted by national audit bureaus:
July 25, 2006; 2. Deadline for filing notices of intervention and
participants' statements concerning compliance with filing requirements
and conditional motion for waiver: August 1, 2006; 3. Deadline for
filing status report on settlement negotiations: August 4, 2006.
ADDRESSES: File all documents referred to in this order electronically
via the Commission's Filing Online system at http://www.prc.gov.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, 202-789-6820.
SUPPLEMENTARY INFORMATION:
I. Introduction
Notice is hereby given that on July 6, 2006, the Postal Service
filed a request with the Postal Rate Commission for a recommended
decision on a proposal to amend the definition of a ``nominal rate''
subscription for publications in the Periodicals class.\1\ The Service
filed its Request pursuant to section 3623 of the Postal Reorganization
Act, 39 U.S.C. 101 et seq. It has denominated its proposal as a minor
mail classification change and has requested expedited
[[Page 40173]]
consideration under Commission rules governing such requests.\2\
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\1\ Request of the United States Postal Service for a
Recommended Decision on Change of Definition of Nominal Rate for
Periodicals Subscriptions, July 6, 2006 (Request). The Request
includes three attachments. Attachment A to the Request sets out the
proposed change to the text of the Domestic Mail Classification
Schedule. Attachment B is an index of testimony. Attachment C
contains the Service's Compliance Statement addressing the filing
requirements of rules 64 and 69a, or noting a request for waiver of
certain filing requirements.
\2\ 39 CFR 3001.69a.
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The Request was accompanied by witness Yeh's supporting testimony
\3\ and several contemporaneous filings. The latter are identified as
Notice of Filing of Request of the United States Postal Service for a
Recommended Decision on Change of Definition of Nominal Rate for
Periodicals Subscriptions (Notice); Statement of the United States
Postal Service Concerning Compliance with Filing Requirements and
Conditional Motion for Waiver (Combined Pleading); and United States
Postal Service Request for Establishment of Settlement Procedures
(Settlement Request).\4\
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\3\ Direct Testimony of Nina Yeh on Behalf of United States
Postal Service, July 6, 2006 (USPS-T-1).
\4\ All filed July 6, 2006.
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II. Proposal
The Service, through witness Yeh, proposes revising the definition
of a nominal rate subscription to allow a reduction of up to 70 percent
of the basic annual subscription rate for a copy of a Periodicals
publication to qualify as part of paid circulation. The current
reduction is 50 percent. The proposal affects only the definition of a
nominal rate subscription; it does not alter a requirement (in DMCS
412.31) that more than 50 percent of the copies of a publication be
circulated to persons who have paid more than a nominal rate. USPS-T-1
at 1-2.
Witness Yeh identifies the applicable DMCS provisions (DMCS
412.33b) and describes the rationale for the change. The latter
includes, among other points, Yeh's assertion that the change would
allow publishers to take advantage of the elimination of a similar
nominal rate definition in the bylaws and rules of national audit
bureaus and to offset loss of subscriptions from recent sweepstakes
legislation. Yeh also reviews classification criteria and issues,
addresses the consistency of the proposal with the Commission's
criteria for an expedited minor classification change, and asserts that
the Service foresees no measurable financial impact from adoption of
the proposal. Id. at 5.
III. Grounds for Characterizing the Requested Change as Minor
The Request asserts that the proposed change conforms with the
criteria for consideration of expedited minor mail classification
changes, noting that it does not involve a change in any existing rate
or fee; does not impose any additional eligibility restrictions; and
will not significantly change the estimated cost contribution of the
affected subclasses. Request at 2. See also USPS-T-1 at 4-5.
IV. Authorization of Settlement Proceedings
The Postal Service asks that the Commission establish settlement
procedures in this case. In support of this request, the Service
asserts that it does not believe the proposed change will be
controversial, as it is intended to meet the interests of the Postal
Service and its Periodicals customers. It notes that the proposal would
relax an eligibility requirement, and is not expected to harm any
mailers. Request at 1-2; Settlement Request at 1.
Given the limited nature of the proposal, the Commission authorizes
settlement proceedings in this case and appoints Postal Service counsel
to serve as settlement coordinator. This authorization is without
prejudice to the right of a participant to request a hearing under rule
69b(h) and the Commission's right to determine that a hearing shall be
held. The Commission directs the Postal Service to file a written
status report on settlement negotiations by 12 noon, August 4, 2006.
V. Compliance With (and Conditional Request for Waiver of) Filing
Requirements
In the Combined Pleading, the Postal Service notes that its
Compliance Statement (Request, Attachment C) identifies information
contained in witness Yeh's testimony and supporting documentation
intended to satisfy the filing requirements of pertinent provisions of
Commission rules 64 and 69a. Combined Pleading at 1. In particular, it
notes that it has supplemented materials developed specifically for
this filing by incorporating documentation it submitted in connection
with Docket No. R2006-1, the recently-filed omnibus rate proceeding. It
asserts that it believes that most of the specific requirements
pertaining to classes of mail and special services are met by
incorporating the materials from that case. Id. The Service further
contends that in assessing compliance, substantial weight should be
given to the extremely limited nature of the proposed classification
change and the tiny magnitude of its impact on costs, volumes and
revenues in total and for particular mail categories and services. Id.
at 2. It notes that in the event that total cost-revenue relationships
might be affected by the changed definition, any changes to those
relationships are likely to be so minor as not to warrant amendment of
the rate case testimony beyond the additional information provided in
this docket. Id.
In the event the Commission concludes that the materials from other
dockets or filed in the instant docket fail to satisfy the filing
requirements of rules 64(b)(1)-(4); 64(c)(1)-(3); 64(d); 64(h) and
69a(a), the Service requests that those requirements be waived in full
or in part. It also requests that the Commission confirm that the
PostaI Service has complied with the filing requirements. Id. at 2-3.
VI. Intervention; Commission Determination on Application of Expedited
Procedures
Rule 69b affords interested parties 26 days after the filing of the
Service's Request to intervene and respond to the Postal Service's
proposal to have this request considered under rule 69's expedited
procedures. The Service's Notice accurately notes that this equates to
a deadline of August 1, 2006 for filing notices of intervention. A
companion provision (in rule 69b(f)) provides that within 28 days after
publication of this notice, the Commission shall decide whether the
Request will be considered under rule 69 through 69c, and issue a
notice incorporating that ruling. That requirement equates to an August
7, 2006 issuance date for the Commission's determination and ruling.
VII. Public Participation
In conformance with section 3624(a) of title 39, the Commission
designates Shelley S. Dreifuss, director of the Commission's Office of
the Consumer Advocate (OCA), to represent the interests of the general
public in this proceeding. Pursuant to this designation, Ms. Dreifuss
will direct the activities of Commission personnel assigned to assist
her and, upon request, supply their names for the record. Neither Ms.
Dreifuss nor any of the assigned personnel will participate in or
provide advice on any Commission decision in this proceeding.
VIII. Request for Supplementation of the Record
Given the Service's interest in expedition and the likelihood that
settlement negotiations may limit or preclude discovery, the Commission
requests that the Service supplement the record by filing a library
reference containing documentation related to the definition change
referred to at USPS-T-1 at 2-3. This library reference should be filed
no later than July 25, 2006.
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Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket No. MC2006-5, Periodicals
Nominal Rate Minor Classification Change, to consider the Postal
Service Request referred to in the body of this notice and order.
2. The Commission will sit en banc in this proceeding.
3. Notices of intervention shall be filed no later than August 1,
2006.
4. Shelley S. Dreifuss, director of the Commission's Office of the
Consumer Advocate, is designated to represent the interests of the
general public.
5. Participants' statements addressing the Statement of the United
States Postal Service Concerning Compliance with Filing Requirements
and Conditional Motion for Waiver, July 6, 2006, are due August 1,
2006.
6. The Commission authorizes settlement proceedings in this
proceeding, subject to a subsequent determination that a participant
has lodged a meritorious request for a hearing. Postal Service counsel
is appointed to serve as settlement coordinator in this proceeding. The
Commission will make its hearing room available for settlement
conferences at such times deemed necessary by the settlement
coordinator.
7. The Postal Service is directed to file a written status report
on settlement negotiations by 12 noon, August 4, 2006.
8. The Service is requested to file, in the form of a library
reference, documentation relating to the related definition change
adopted by national audit bureaus referred to in witness Yeh's
testimony by July 25, 2006.
9. The Secretary shall arrange for publication of the Notice and
Order in the Federal Register.
By the Commission.
Garry J. Sikora,
Acting Secretary.
[FR Doc. E6-11141 Filed 7-13-06; 8:45 am]
BILLING CODE 7710-FW-P