Mail Classification Schedule

CourtPostal Regulatory Commission
Published date03 March 2022
Record Number2022-03711
Federal Register, Volume 87 Issue 42 (Thursday, March 3, 2022)
[Federal Register Volume 87, Number 42 (Thursday, March 3, 2022)]
                [Notices]
                [Pages 12210-12211]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2022-03711]
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                POSTAL REGULATORY COMMISSION
                [Docket No. MC2022-40; Order No. 6107]
                Mail Classification Schedule
                AGENCY: Postal Regulatory Commission.
                ACTION: Notice.
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                SUMMARY: The Commission is recognizing a recent Postal Service filing
                requesting the addition of Extended Mail Forwarding as a permanent
                offering on the market dominant product list. This notice informs the
                public of the filing, invites public comment, and takes other
                administrative steps.
                DATES: Comments are due: March 7, 2022. Reply comments are due: March
                14, 2022.
                ADDRESSES: Submit comments electronically via the Commission's Filing
                Online system at https://www.prc.gov. Those who cannot submit comments
                electronically should contact the person identified in the FOR FURTHER
                INFORMATION CONTACT section by telephone for advice on filing
                alternatives.
                FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at
                202-789-6820.
                SUPPLEMENTARY INFORMATION: On February 14, 2022, the Postal Service
                filed a request pursuant to 39 U.S.C. 3642 and 39 CFR 3045.18 to modify
                the Mail Classification Schedule (MCS) by adding Extended Mail
                Forwarding as a permanent offering to the market dominant product list
                and establishing classification language and prices for Extended Mail
                Forwarding.\1\
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                 \1\ United States Postal Service Request to Convert Extended
                Mail Forwarding to a Permanent Offering, February 14, 2022
                (Request).
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                 The Postal Service explains that the Commission authorized the
                market test in Order No. 5591 on July 20, 2020.\2\ The test was
                initially introduced in nine postal districts, but on October 1, 2020,
                the test was expanded nationwide.\3\ The Postal Service states that the
                test proved successful and proposes to add Extended Mail Forwarding to
                its Market Dominant Products: Special Services: Address Management
                Services, under section 1515.1 of its MCS. Request at 1-2. The Postal
                Service states that Extended Mail Forwarding provides customers who
                submit a permanent change-of-address request the option of extending
                mail forwarding beyond the
                [[Page 12211]]
                12 months forwarding period. Id. at 2. It claims that the test
                demonstrated simple operational implementation providing customers who
                move greater control over their mail forwarding expiration dates. The
                Postal Service also indicates the addition provides a new revenue
                stream and has reduced Undeliverable as Addressed handling costs. Id.
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                 \2\ Request at 1; Docket No. MT2020-2, Order Authorizing
                Extended Mail Forwarding Market Test, July 20, 2020 (Order No.
                5591).
                 \3\ Request at 1; Docket No. MT2020-2, United States Postal
                Service Notice of Material Change to Market Test, September 18,
                2020.
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                 According to the Postal Service, Extended Mail Forwarding meets the
                requirements of 39 CFR 3045.18(b) by offering the same services as the
                experimental product with the same distinct costs and market
                characteristics, and is based on the data collected during the market
                test. Id. at 2-3.
                 The Postal Service also claims the proposed product complies with
                39 CFR 3045.18(c) because the product and price category is the same as
                the product at the heart of the market test. Id. at 3. The price points
                will be $19.95 for a 6-month extension, $29.95 for a 12-month
                extension, and $39.95 for an 18-month extension. Id. at 3.
                 The Postal Service states that, as a new offering, Extended Mail
                Forwarding does not have price cap implications since it lacks volume
                history and billing determinants that could be used to calculate a
                price cap effect and that it is not a rate change subject to 39 U.S.C.
                3622(d).\4\ It also points out Extended Mail Forwarding is a new
                optional feature and does not divert volumes from an existing product
                by which volumes could be inferred. Request at 3-4. In addition,
                pursuant to the requirement in 39 CFR 3045.18(c)(3), the Postal Service
                claims that the market will remain stable into the permanent phase. Id.
                at 4. The Postal Service states that the market test generated
                cumulative total revenue of almost $42.2 million. Id. The Postal
                Service also claims the product-specific costs associated with the
                development of the Extended Mail Forwarding market test were
                $505,983.29, including program management and IT-related costs, and
                have been relatively stable from quarter to quarter. Id. at 4-5.
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                 \4\ Request at 3 citing 39 CFR 3045.15; Docket No. MC2012-31,
                Order Approving Addition of Postal Service to the Mail
                Classification Schedule Product Lists, September 7, 2012 (Order No.
                1460).
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                 Included as Attachment A to the Request is proposed MCS language.
                Included as Attachment B are data collection reports filed during the
                market test as required by 39 CFR 3045.18(c)(4). Included as Attachment
                C is the Governors' resolution authorizing the Request. The Postal
                Service explains that it would like to implement the product on July
                10, 2022, to align Extended Mail Forwarding with other IT programming
                changes, and thus requests the Commission issue a final order no later
                than May 16, 2022. Id. at 5.
                 Pursuant to rule 3040.133, the Commission provides interested
                persons an opportunity to express views and offer comments on the
                proposed addition to the MCS. Comments are due no later than March 7,
                2022. Reply comments may be filed no later than March 14, 2022. The
                Postal Service's Request in Docket No. MC2022-40 can be accessed on the
                Commission's website (http://www.prc.gov).\5\
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                 \5\ Additional information provided as part of the Postal
                Service's market test of the product at issue in Docket No. MT2020-2
                may also be accessed on the Commission's website.
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                 Pursuant to 39 U.S.C. 505, Richard A. Oliver is appointed to serve
                as an officer of the Commission (Public Representative) to represent
                the interests of the general public in the above-captioned docket.
                 It is ordered:
                 1. The Commission establishes Docket No. MC2022-40 for
                consideration of the matters raised by the United States Postal Service
                Request to Convert Extended Mail Forwarding to a Permanent Offering,
                filed February 14, 2022.
                 2. Comments are due no later than March 7, 2022.
                 3. Reply comments are due no later than March 14, 2022.
                 4. Pursuant to 39 U.S.C. 505, Richard A. Oliver is appointed to
                serve as an officer of the Commission (Public Representative) to
                represent the interests of the general public in this proceeding.
                 5. The Secretary shall arrange for publication of this order in the
                Federal Register.
                 By the Commission.
                Erica A. Barker,
                Secretary.
                [FR Doc. 2022-03711 Filed 3-2-22; 8:45 am]
                BILLING CODE 7710-FW-P
                

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