[Federal Register Volume 60, Number 208 (Friday, October 27, 1995)]
[Proposed Rules]
[Pages 54981-54989]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26554]
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POSTAL RATE COMMISSION
[Docket No. RM95-4, Order No. 1084]
39 CFR Part 3001
Rules of Practice and Procedure
AGENCY: Postal Rate Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Commission is proposing amendments to its rules of
practice and procedure that would facilitate expedited consideration of
requests of the United States Postal Service to: Conduct market tests
of new postal services in order to develop information necessary to
support a permanent mail classification change; adopt, on a provisional
basis, mail classification and associated rate changes that supplement,
but do not alter, existing rates and mail classifications; and adopt
permanent but narrowly focused mail classification changes that
supplement, but do not alter, existing rates and mail classifications.
In addition to these amendments, the Commission is proposing a rule
that would allow the Postal Service to use a multi-year test period for
the purpose of demonstrating the financial viability of potential new
services that are the subject of a concurrent Postal Service request.
DATES: Comments must be submitted on or before December 26, 1995.
ADDRESSES: Comments and correspondence should be sent to Margaret P.
Crenshaw, Secretary of the Commission, 1333 H Street NW, Suite 300,
Washington, DC 20268-0001 (telephone: 202/789-6840).
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, Legal Advisor,
Postal Rate Commission, 1333 H Street NW, Suite 300, Washington, DC
20268-0001 (telephone: 202/789-6820).
SUPPLEMENTARY INFORMATION: On April 24, 1995, the Commission issued an
Advance Notice of Proposed Rulemaking in response to a petition
submitted by the United States Postal Service. The Postal Service's
petition, filed April 13, 1995, asked the Commission to initiate a
rulemaking with a view to adopting new procedural rules applicable to
seven ratemaking and mail classification topics, for the purpose of
facilitating expedited consideration and review of Postal Service
requests in those areas. For the most part, the rules proposed in the
Postal Service's petition pursue specific recommendations of the Joint
Task Force on Postal Ratemaking.1 The Commission summarized the
Postal Service's seven proposed rules and solicited the views of
interested parties on the draft rules and six other topics in the
Advance Notice. 60 FR 22017-19 (May 4, 1995).
\1\See Postal Ratemaking in a Time of Change: A Report by the
Joint Task Force on Postal Ratemaking (June 1, 1992).
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The Commission received 21 sets of comments in response to the
Advance Notice.2 In addition to their views on the merits of the
Postal Service's proposed rules, several parties submitted that it
would be inappropriate to go forward with the requested rulemaking in
light of the current focus on mail classification reform and the
parties significant commitment of resources in Docket No. MC95-1. In
contrast, the Postal Service commented that it sees no utility in
deferring consideration of any of its proposed rules, and that
simultaneous consideration of all of them is warranted.
\2\The Association of American Publishers, American Bankers
Association, American Business Press, Air Courier Conference of
America, Advo, Inc., Advertising Mail Marketing Association, Direct
Marketing Association, Inc., Dow Jones & Company, Inc., Federal
Express Corporation, Florida Gift Fruit Shippers Association,
McGraw-Hill Companies, Inc., Major Mailers Association, Mail Order
Association of America, Magazine Publishers of America, National
Newspaper Association, Newspaper Association of America, the
Commission's Office of the Consumer Advocate, Quality Letter
Service, Inc., Time Warner Inc., United Parcel Service, and the
United States Postal Service submitted comments in response to the
Advance Notice.
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The Commission concurs in the Postal Service's initiative ``to
reopen the dialogue over administrative reform to a new chapter, and to
focus on procedural changes designed to provide more expedition and
flexibility.'' Petition of United States Postal Service to Initiate
Rulemaking, April 13, 1995, at 5. However, the Commission is also
mindful of the current workload imposed on all those involved in Docket
No. MC95-1 and mail classification reform generally, and is disinclined
to occasion additional efforts now without a realistic prospect of
procedural enhancements in the near term. An additional consideration,
which the Postal Service acknowledges in its petition, is the existence
of potential legal impediments to implementing at least some of the
concepts recommended by the Joint Task Force.
In view of these competing considerations, the Commission has
determined to promulgate draft rules which would implement a majority,
but not all, of the Postal Service's seven procedural initiatives.
Specifically, the Commission has drafted proposed rules for application
in the areas of market tests, provisional new services, minor changes
in permanent mail classifications, and multi-year financial test
periods for new services. At this point, these initiatives appear to
hold the greatest promise for procedural improvement in the near term.
The Commission will endeavor to pursue the remaining initiatives, which
appear to present somewhat greater challenges under the Postal
Reorganization Act as currently interpreted, in subsequent proceedings.
Market tests of potential new services. While one commenter, United
Parcel Service, disputes the necessity of adopting a market test rule,
the Joint Task Force Report correctly observes that there is no ``well-
worn path'' in Commission procedure for obtaining information that
could shed light on the prospects of potential service innovations
through limited testing in the marketplace. Sections 67 through 67d of
the current rules of practice (39 CFR 3001.67 through .67d) establish
procedures for considering mail classification requests that the Postal
Service denominates as ``experimental'' in character. However, this
pre-existing mechanism may not be the most efficient and effective way
to facilitate market testing, as the Postal Service has commented. The
Commission agrees with the Postal Service and the Governors that it
would be useful to explore new procedures explicitly designed for
limited market tests that would enable the Service to gain ``real
world'' experience with innovative services, and that would at the same
time generate information needed to support recommendation of such
services as permanent mail classifications. Employing these procedures
within the larger context of an ongoing proceeding to consider a Postal
Service request for a permanent classification change would also assist
in establishing the objectives of market tests and defining their
reasonable limits.
The Postal Service's proposed market test rules would apply to
requests which seek ``changes in rates or mail classification preceded
by testing in the market in order to develop information necessary to
support a permanent change.'' Proposed 39 CFR 3001.121. Insofar as the
Postal Service has proposed rules that would apply to requests for
expedited market tests of changes in existing rates only,
[[Page 54982]]
unaccompanied by a proposed service innovation, the Service's proposal
exceeds the scope of the Joint Task Force's recommendations. Those
recommendations were directed toward ``potential service
innovations[,]'' and contemplated implementation through ``rules for
the consideration of mail classification proposals to allow market data
to be obtained from limited tests * * *'' Joint Task Force Report at
47, 48. (Emphasis added.) In the Commission's view, market testing of
pure rate changes for existing services could raise difficult issues of
consistency with the fairness and equity factor in 39 U.S.C. 3622(b)(1)
and the prohibition of undue discrimination or preferences among mail
users in 39 U.S.C. 403(c). Accordingly, to foreclose these potential
issues and thereby simplify the market testing initiative, the
Commission's draft rules are limited to market tests of proposed
changes in mail classification, together with the rates proposed for
the proposed new mail classification.
One commenter, the Newspaper Association of America, has suggested
that the Commission must reject the Service's proposed market test
rules because they are unlawful in several respects: They limit the
Commission's review to a ``yes or no'' determination, thereby limiting
analysis and potentially precluding consideration of some applicable
statutory factors; they incorporate too short a deadline for Commission
action; and they set no outside parameters for the duration of a market
test. Other commenters--the American Bankers Association, Air Courier
Conference of America, Federal Express Corporation, and United Parcel
Service--presented similar criticisms of the Service's proposed rules
regarding the limited scope of the Commission's review, attenuated data
requirements, and the indefinite scope and duration of market tests
permissible under the rules.
At the outset, the Commission believes that it is possible to craft
rules for the expedited consideration and recommendation of market
tests that are consistent with both the substantive and procedural
requirements of the Postal Reorganization Act. Substantively, the Act
requires that the Commission's recommendations be in accordance with
the policies of Title 39 and the factors specified in sections 3622 and
3623. Under ordinary circumstances, if a Postal Service request appears
to be incompatible with established postal policy or applicable
statutory factors, the Commission endeavors to cure those deficiencies
by recommending modifications in the Service's proposal, if that is
feasible and appropriate. This would certainly be the case with respect
to a permanent mail classification change requested by the Postal
Service. However, in the case of a market test, the Postal Service's
evident intention would be to implement a plan both expeditiously and
in the form in which it was designed by management. A recommendation to
modify the proposed plan in any significant respect--even if the
Commission considered modification to be compelled by applicable
factors--could jeopardize the timeliness of the test and seriously
impair its usefulness. This being the case, a relatively inflexible
``yes or no'' determination by the Commission might be viewed as the
necessary price of expedition, but it seems to be a reasonable one
under the terms of the Reorganization Act. The risk of proposing a
market test that the Commission would find itself unable to recommend
under the policies and factors of the Act would be borne entirely by
the Postal Service.3
\3\Of course, in any such case the Commission would express its
specific concerns in its Opinion and Recommended Decision, and would
provide guidance on how the identified deficiencies could be
remedied.
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For these reasons, the Commission believes that it would be
feasible to implement an expedited, ``yes or no'' review of proposed
market tests, provided the objectives and criteria applicable to such
tests are clearly specified. Accordingly, the first section of the new
Subpart I proposed for addition to the Commission's rules begins by
stating that the procedures apply in cases in which the Postal Service
has requested a recommended decision pursuant to section 3623
``preceded by testing in the market in order to develop information
necessary to support a permanent change.'' Proposed Sec. 3001.161. The
section also declares a Commission policy in favor of recommending
``market tests that are reasonably calculated to produce information
needed to support a permanent change in mail classification, and that
are reasonably limited in scope, scale, duration and potential adverse
impact.'' In order to clarify the issue of maximum duration, upon which
some parties commented, the proposed rule would declare a limit of one
year, except in extraordinary circumstances and for good cause shown.
With regard to procedural requirements, the Commission believes
that it is possible to fashion expedited procedures that would
accommodate the due process rights of participants and enable it to
review all issues presented, but agrees with various comments that
claimed the Postal Service's proposed market test rule would provide
for unduly attenuated proceedings. First, the artificial limitation of
issues to be considered by the Commission under the Service's proposed
rule cannot be justified, as the comments of American Bankers
Association and Newspaper Association of America observe. It is
altogether likely that a proposed market test, conducted within the
larger context of a Postal Service request for a permanent change in
mail classification, will involve the determination of relatively few
issues. However, in order to be able to recommend to the Governors that
a proposed market test be conducted, the Commission is obliged by the
Reorganization Act to assure itself that all applicable statutory
factors have been duly considered. Consequently, the Commission's
proposed rules do not contain any issue-limiting provision, but instead
adopt a procedural mechanism for narrowing the issues that might
require a hearing. See proposed Sec. 3001.163(e).
The Commission also believes that the 60-day schedule dictated by
the Postal Service's rules may be insufficient to provide interested
parties an adequate opportunity to exercise their due process rights
under section 3624. For this reason, the Commission's proposed market
test rules incorporate a 90-day decisional schedule. The proposed rules
also are designed to maximize the opportunity of potential participants
to examine and respond to the Postal Service's request through
inclusion of expedited public notice provisions similar to those in the
Commission's rules applicable to Express Mail Market Response requests.
These provisions allow interested persons to register for expedited
receipt of Postal Service requests to conduct market tests, and direct
the Service to serve copies of such requests on the registrants either
by hand delivery or Express Mail service. They also direct the Postal
Service to serve copies of its request on all participants in the most
recent omnibus rate proceeding. See proposed Sec. 3001.163 (b) through
(d).
The Commission's proposed rules would require the Postal Service to
describe the features of its requested market test in some detail,
identifying the services to be provided, the rates to be charged, the
number and extent of the areas to be served, the test's duration, and
the anticipated number of customers who will participate. Proposed
Sec. 3001.162 would also require the Service to describe the means by
which it plans to provide equal access to all potential users in the
test market service areas, and its plan for gathering
[[Page 54983]]
and reporting the data needed to support a permanent mail
classification change.
However, the rules would also afford the Postal Service
considerable flexibility in conducting market tests, and in acting upon
their results. If the Service anticipates that periodic reporting of
test data would be harmful to the purposes of the test--for example, by
revealing information that might lead mailers or competitors to take
actions that would influence the test results--its plan could provide
for presenting the test data as part of the information to be filed
subsequently in support of a permanent mail classification change.
Additionally, if the experience gained from the market test leads the
Postal Service to change its plans regarding the new service, proposed
Sec. 3001.166(b) would allow the Service to move for revision or
withdrawal of its request for a permanent mail classification change. A
motion to withdraw its request would relieve the Postal Service of any
obligation to produce the test data that would otherwise be submitted.
Finally, while market tests to be recommended by the Commission
ordinarily would be limited to one year in duration, proposed
Sec. 3001.161 states that this limitation would not necessarily bar the
Postal Service from conducting more than one market test in support of
a potential classification change, under appropriate circumstances.
Requests for provisional service changes of limited duration. The
Joint Task Force Report recommended that the Commission adopt rules
providing fast-track, ``yes or no'' review of proposed service
innovations that would supplement existing rates and classifications
without altering any of them. The purpose of the rules would be to
enable the Postal Service to introduce a new service offering quickly,
while allowing postal customers to ``either try the new service or
stick with the existing service menu, or both.'' Report at 52. The
Report also recommended that the Service's request for the new service
denominate it as provisional, and specify an ending date in its filing.
The Postal Service has proposed provisional service change rules
that nominally would apply to ``requests that the Commission recommend
changes in rates or mail classification which supplement, but do not
alter, existing classification and rates. * * *'' USPS proposed
Sec. 3001.131. (Emphasis added.) While it is unclear how a rate change
unaccompanied by a change in mail classification could supplement, yet
not alter, existing classification and rates, the Service's proposed
rule could be read to extend to provisional changes in rates alone.
Such changes would be beyond the scope of the Joint Task Force's
recommendations, and the Commission's proposed Sec. 3001.171 includes
alternative language.
Several commenters--including American Bankers Association, Federal
Express Corporation, and United Parcel Service--questioned the
potential application of the Postal Service's proposed rules, or
whether rules for provisional services would accomplish any purposes
different from those addressed by the market test rules. At this point,
the Commission believes that separate provisional service rules could
be employed to accomplish objectives similar to those for market tests,
but in somewhat different ways. For example, in appropriate instances
provisional services might be introduced simultaneously throughout the
postal system, rather than in just a few market testing areas. In any
event, these issues merit further consideration, and the Commission
invites both the Postal Service and other interested parties to submit
further comments.
In light of the similarities in purpose and overall structure
between the Service's proposed market test rules and the rules for
provisional services, the Commission's proposed Subpart J parallels the
provisions in proposed Subpart I. Proposed Sec. 3001.171 would define
applicability of the rules, and declare as Commission policy the
recommendation of provisional services that enhance the range of postal
services available to the public, without producing a material adverse
effect overall on postal revenues or costs, and without causing
unnecessary or unreasonable harm to competitors of the Postal Service.
The latter criteria follow both the Joint Task Force Report's
recommendations and the language of the Postal Service's proposed
rules. The proposed section would also limit recommended provisional
services to two years' duration ordinarily, but provide for extension
to an additional year if the Postal Service has filed a request to
establish the provisional service as a permanent mail classification.
Proposed Sec. 3001.172 establishes the filing requirements
applicable to requests for provisional services. Each formal request
would be required to include descriptive and proposed Domestic Mail
Classification Schedule language and rate schedules, documentation to
support the rates proposed for the provisional service, a termination
date on which the proposed service would be discontinued, and an
estimate of the effect of implementing the proposal on overall Postal
Service costs and revenues. The section would also establish compliance
with subpart C of the current rules applicable to mail classification
requests as a general standard applicable to the contents of formal
requests, but would allow the Postal Service to seek waiver of
particular requirements by explaining why responsive information is
unavailable.
The Postal Service's proposed rules would allow requests for
provisional services to include proposed rates ``which may encompass a
range of rates.'' USPS proposed Sec. 3001.132(a). As noted above, the
Commission is not proposing rules at this time that would establish the
concept of rate bands in Commission proceedings, and the Postal
Service's proposed language is not included in the Commission's rules
for provisional services. However, in light of the ``yes or no''
feature of the Service's proposal in this area, which has been
retained, the Commission is reluctant to adopt rules that would compel
rejection of a requested provisional service solely because of
deficiencies in a single proposed rate. Interested parties are invited
to comment on how this potential problem should be addressed, and to
suggest specific language for inclusion in the rules.
Proposed Sec. 3001.173 would establish expedited procedures for
public notice of the Postal Service's request and for conducting the
proceeding. The section closely tracks the procedures specified for
market test requests in proposed Sec. 3001.163 in order to give
interested parties the earliest feasible notice of the requested
provisional service and to establish whether a hearing will be
necessary.
As with the Commission's proposed market test rules, proposed
Subpart J does not include the issue-limiting provisions contained in
the Postal Service's proposed rules, but substitutes a procedural
mechanism for narrowing the issues that might require a hearing. This
accommodates the concerns of commenters Air Courier Conference of
America and Newspaper Association of America that the Service's
proposed rules would fail to provide the thorough review provided by
current procedures. The rule for decision in proposed Sec. 3001.164
provides for issuance of a ``yes or no'' Commission decision in
accordance with all applicable policies of the Postal Reorganization
Act, and declares the objective of completing consideration of proposed
provisional services within 90 days, consistent with the procedural due
process rights of interested persons.
[[Page 54984]]
Proposed Sec. 3001.175 would direct the Postal Service to collect
and report data pertaining to provisional services that have been
recommended by the Commission and implemented by the Board of
Governors. The Service's data collection and reporting requirements
would generally correspond to the periodic reporting requirements
specified in Sec. 3001.102 of the current rules. However, if the
Service does not revise its regular data reporting systems to include
the provisional service while it is in effect, the section would direct
the Service to perform and file the results of special studies on a
corresponding schedule to provide equivalent information to the extent
reasonably practicable.
Finally, proposed Sec. 3001.176 would provide for formal Postal
Service requests that provisional services currently in effect be
terminated, or established as permanent mail classifications either as
originally recommended or in modified form. Following the provisional
service's termination date, the section would allow the Postal Service
to submit a request for its re-establishment under any subpart of the
Commission's rules which would otherwise apply.
Expedited consideration of requests for minor mail classification
changes. Noting that requests for permanent mail classification changes
have been held to a uniform set of requirements regardless of whether
the proposed change is complex or relatively simple, the Joint Task
Force recommended that the Commission establish a streamlined version
of its rules to consider ``appropriately limited proposals'' within the
framework of a 90- to 150-day procedural schedule. Report at 55.
The Postal Service proposes rules that would provide expedited
review of requested classification changes that are ``minor,'' which
would be defined as changes that do not involve changes in current
rates or fees, and which: (a) Involve only changes in current mailing
requirement or eligibility standards; (b) pertain to existing or
proposed mail types or services estimated to provide less than 10
percent of total Postal Service revenues; or (c) are otherwise found by
the Commission to be appropriately limited. USPS proposed Sec. 3001.69.
As commenters Federal Express Corporation and United Parcel Service
have noted, the 10 percent standard is problematical because of its
potential scope: A threshold as high as Sec. 5.5 billion could be
expected to encompass quite a few classification changes of more than
``minor'' consequence. For this reason, the Commission's proposed
Sec. 3001.69 adopts a different standard that includes classification
changes which ``would only affect categories of service with low
aggregate costs and revenues.''
The Commission's proposed Sec. 3001.69a would impose somewhat more
stringent requirements on the contents of formal requests for minor
classifications than the Postal Service's proposed provision. The
section would require: Descriptive and proposed Domestic Mail
Classification Schedule language, as well as any pertinent rate
schedules; a thorough explanation of the grounds on which the Service
submits that the requested change is minor in character; and an
estimate, in the greatest level of detail practicable, of the overall
impact of the requested change on postal costs and revenues, mail
users, and competitors of the Postal Service. As with the proposed
rules for provisional service requests, the section would establish
compliance with subpart C as the general standard applicable to the
contents of formal requests, but would allow the Postal Service to seek
waiver of particular requirements by explaining why responsive
information is unavailable, or should not be required in light of the
minor character of the requested classification change. These
provisions are intended to assure the availability of all information
genuinely necessary for evaluation of the proposed classification
change.
Proposed Sec. 3001.69b specifies expedited procedures for noticing
the Postal Service's request, allowing interventions and responses to
the Service's request for consideration under the expedited rules, and
the Commission's determination whether the request is appropriate for
consideration as a minor classification change. If the Commission
determines that the request is not appropriate for consideration as a
minor change, the expedited rules will not apply, and the request will
be considered under other appropriate provisions. If the Commission
determines that the expedited rules should apply, respondents who
requested a hearing will be directed to identify the material issues of
fact that require a hearing, and identify the facts presented in the
Postal Service's filing that it disputes. The section states that
hearings will be held if the Commission determines that there are
genuine issues of material fact to be resolved, and that a hearing is
needed to resolve them. Unlike the Postal Service's proposed provision,
this section would not exclude any category of factual issue from
consideration.
The Postal Service's proposed rules would require the Commission to
issue a recommended decision within 60 days after filing of the request
if no party challenges it, and within 90 days if an on-the-record
inquiry is conducted. The Commission is concerned that these deadlines
would not allow adequate opportunities for interested persons to
participate meaningfully in every phase of the proceeding, particularly
in ascertaining if a hearing may be necessary. Consequently, proposed
Sec. 3001.69c provides for issuance of a recommended decision within 90
days after filing if no hearing is held, and 120 days if a hearing is
held. The intervals between procedural milestones specified in proposed
Sec. 3001.69b are designed to accommodate these time limits.
Multi-year test periods for proposed new services. The Joint Task
Force Report concluded that the single-year test period prescribed in
the Commission's rules tends to restrict opportunities for new service
innovation by the Postal Service. Such services can entail substantial
initial expenditures for equipment, marketing, or other introductory
investments that will not be recovered in their early, low-volume
startup periods. In order to allow new services an opportunity to
mature and achieve financial breakeven, the Report recommended that the
Commission adopt rules providing for a multi-year test period of at
least four or five years for proceedings involving new service
offerings. Report at 50-52.
The Commission concurs with this rationale for multi-year test
periods, but believes that their use must be supported by convincing
substantial evidence in each case. Commenters Air Courier Conference of
America and Federal Express Corporation expressed concerns that a
multi-year test period could become a vehicle for allowing rates for
new services to be set below attributable costs, and argued that it
would be impermissible for the Commission to delegate a decision on
breakeven to the Postal Service. These are legitimate concerns, but in
the Commission's view they can be addressed by crafting a rule that
will provide for full disclosure of available information and
exploration on the record. Also, as a general matter, it would appear
that to merit recommendation a multi-year test period should be
commensurate with the horizon of the Postal Service's financial
planning and be fully supported by financial analysis.
In light of these considerations, the Commission's proposed Subpart
K would adopt a policy of allowing the use of multi-year test periods
of up to 5 fiscal years in support of requests to
[[Page 54985]]
establish new postal services ``where the Postal Service has presented
convincing substantial evidence in support of the test period
proposed.'' Proposed Sec. 3001.181. The new subpart would require that
each such request be supported by the testimony of a witness on behalf
of the Postal Service, who would be responsible for providing a
complete description of the proposed multi-year test period, a detailed
explanation of the Service's bases for requesting the period, and a
complete description of the Service's plan for achieving an appropriate
contribution to institutional costs from the new service. The rules
would also require the provision of complete documentary support for,
and detail underlying, the requested test period, including cost,
revenue and volume estimates, Return on Investment projections, and any
other pertinent analyses prepared by the Postal Service.
The remaining Postal Service initiatives. As noted in the
introduction to the discussion of the proposed rules, the Commission
has determined to defer consideration of the Postal Service's remaining
three initiatives: rules for limited scope rate cases, rate bands for
competitive services, and Negotiated Service Agreements. Each of these
areas merits further study and deliberation before proposing
implementation in procedural rules.
With regard to limited scope rate cases, the Commission agrees in
principle that it should be possible to consider Postal Service
requests for relatively minor rate adjustments on an expedited basis.
However, at this juncture it is not evident that a prescriptive rule of
the sort proposed by the Postal Service is either necessary or would be
beneficial. As commenters American Bankers Association, Newspaper
Association of America, and United Parcel Service noted, such rules
present problems in defining what is a ``relatively minor adjustment''
in current rates, and the preclusion of certain potential issues from
consideration may trench upon interested parties' rights to an adequate
opportunity for a hearing. Additionally, it is unclear how the possible
effects of the proposed rate change upon other classes and subclass of
mail could be accommodated. In light of the Commission's generally
favorable experience in expediting consideration of the Postal
Service's omnibus rate request in Docket No. R94-1, the Commission
believes it would be preferable at this point to devise measures for
expediting consideration of rate requests on a case-by-case basis.
The Commission also believes it would be advisable to defer
consideration of rules incorporating special procedures to establish
rate bands for competitive services. The commenters generally agreed
that defining what constitutes a ``competitive service'' is
problematical, especially when the influence of the Private Express
Statutes is taken into consideration. Additionally, as commenters Air
Courier Conference of America, Florida Gift Fruit Shippers Association,
Newspaper Association of America, and United Parcel Service noted, the
proposed procedures raise significant statutory and public policy
issues concerning the respective roles of the Postal Service and the
Commission in the ratemaking process. When the Commission last
addressed the rate band concept, in Docket No. RM91-1, it declined to
adopt rules incorporating the concept in the absence of the four-year
strategic ratemaking cycle it had proposed in furtherance of the Joint
Task Force's recommended new model for the ratemaking process.4
The Commission stated:
\4\See Postal Ratemaking in a Time of Change, supra, at 10-38.
(W)ithout the regular scrutiny of the institutional cost
contributions made by competitive categories of service which the
regular cycle of omnibus and midcycle rate cases provides, the
implementation of band rates would revive concerns expressed by
other commenters regarding the risk of predation, exploitation of
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monopoly customers, and evasion of statutory requirements.
58 FR 16393 (March 26, 1993). (Footnote omitted.) The same concerns
remain pertinent today.
Finally, the concept of Negotiated Service Agreements presents its
own singular set of difficulties. In responding to earlier initiatives,
the Commission has expressed doubt about the utility of ``contract
rate'' procedures under the Postal Reorganization Act as it has been
construed by the courts.5 In this docket, commenters have cited
the decision in UPS Worldwide Forwarding, Inc. v. United States Postal
Service,6 in which an international mail service that featured
prices negotiated between the Postal Service and large-volume-capable
customers was found to violate several requirements of the Postal
Reorganization Act. Since those comments were filed, the District
Court's decision has been reversed. However, in doing so the Court of
Appeals was careful to distinguish the Reorganization Act's provisions
governing international rate setting, which it characterized as a
``model of simplicity,'' from the open and more technically rigorous
process required for adopting domestic rates.7 It is by no means
apparent that the reviewing court's approbation would extend to
domestic Negotiated Service Agreements.8 An additional
administrative consideration, which the petition of the Postal Service
reflects, is the necessity of conducting a classification proceeding to
recommend the adoption of Negotiated Service Agreements as a discrete
type of mail classification before procedural rules can be published
for notice and comment. In view of these potential impediments and
uncertainties, the Commission will defer the consideration of
Negotiated Service Agreements to subsequent proceedings.
\5\See Docket No. RM89-5, Notice Inviting Further Comments, 54
FR 47223 (November 13, 1989).
\6\853 F. Supp. 800 (D. Del. 1994), rev'd, No. 94-7423 (3d Cir.,
September 15, 1995).
\7\No. 94-7423, supra, slip op. 20.
\8\``In challenging the Postal Service, its competitors
characterize it as a `public service' and `essentially a public
utility.' In the domestic area, we believe those descriptions are
apt. In some ways, the skepticism surrounding the ICM service exists
because the program seems antithetical to traditional notions of the
Postal Service. We expect to pay the same price for a postage stamp
as everyone else, not to have to bargain for the best rate. In this
sense, the Postal Service is properly compared to a public utility
that charges the same rate to all customers.'' Slip op. at 31.
Issued by the Commission on October 13, 1995.
Margaret P. Crenshaw,
Secretary.
List of Subjects in 39 CFR Part 3001
Administrative practice and procedure, Postal Service.
Accordingly, 39 CFR part 3001 is amended as follows:
1. The authority citation for 39 CFR part 3001 continues to read as
follows:
Authority: 39 U.S.C. 404(b), 3603, 3622-3624, 3661, 3662.
2. Sections 3001.69 through 3001.69c are added to Subpart C to read
as follows:
Sec. 3001.69 Expedited minor classification cases--applicability.
This section and Secs. 3001.69a through 3001.69c apply in cases
where the Postal Service requests a recommended decision pursuant to
section 3623 and seeks expedited review on the ground that the
requested change in mail classification is minor in character. The
requirements and procedures specified in these sections apply
exclusively to the Commission's consideration of requested mail
classification changes which the Postal Service denominates as, and the
Commission finds to be,
[[Page 54986]]
minor in character. A requested classification change may be considered
to be minor in character if it would not involve a change in any
existing rate or fee and:
(a) Involves only changes in eligibility standards or requirements
applicable to mail classes or services; or
(b) Would only affect categories of service with low aggregate
costs and revenues.
Sec. 3001.69a Expedited minor classification cases--filing of formal
request and prepared direct evidence.
(a) Whenever the Postal Service determines to request that the
Commission submit a decision recommending a mail classification change,
and to seek expedited review on the ground that the requested change is
minor in character, it shall file a request for a change in mail
classification pursuant to section 3623 that comports with the
requirements of subpart C, part 3001, of the rules of practice and of
this section. Each such formal request shall include the following
particular information:
(1) A description of the proposed classification change or changes,
including proposed changes in the text of the Domestic Mail
Classification Schedule and any pertinent rate schedules;
(2) A thorough explanation of the grounds on which the Postal
Service submits that the requested change in mail classification is
minor in character; and
(3) An estimate, prepared in the greatest level of detail
practicable, of the overall impact of the requested change in mail
classification on postal costs and revenues, mail users, and
competitors of the Postal Service.
(b) If the Postal Service believes that data required to be filed
under Sec. 3001.64 are unavailable, it shall explain their
unavailability, as required by Sec. 3001.64(a)(2) (i), (ii), and (iv).
If the Postal Service believes that any of the data or other
information required to be filed under Sec. 3001.64 should not be
required in light of the minor character of the requested change in
mail classification, it shall move for a waiver of that requirement,
stating with particularity the reasons why the character of the request
and its circumstances justify a waiver of the requirement. A
satisfactory explanation of the unavailability of information required
under Sec. 3001.64, or of why it should not be required to support a
particular request, will be grounds for excluding from the proceeding a
contention that the absence of the information should form a basis for
rejection of the request, unless the party desiring to make such
contention:
(1) Demonstrates that, having regard to all the facts and
circumstances of the case, it was clearly unreasonable for the Postal
Service to propose the change in question without having first secured
the information and submitted it in accordance with Sec. 3001.64; or
(2) Demonstrates other compelling and exceptional circumstances
requiring that the absence of the information in question be treated as
bearing on the merits of the proposal.
Sec. 3001.69b Expedited minor classification cases--expedition of
procedural schedule.
(a) The purpose of this section is to provide a schedule for
expediting proceedings in which the Postal Service requests that the
Commission recommend a change in mail classification and expedite
consideration of that request on the ground that the change is minor in
character.
(b) Within 5 days after receipt of a Postal Service request
invoking the operation of Secs. 3001.69 through 3001.69c, the
Commission shall issue a notice of proceeding and provide for
intervention by interested parties pursuant to Sec. 3001.20. The notice
of proceeding shall state that the Postal Service has denominated the
mail classification change it requests a minor change, and has
requested expedited consideration pursuant to Secs. 3001.69 through
3001.69c. The notice shall further state the grounds on which the
Postal Service submits that the requested change in mail classification
is minor in character, and shall afford all interested parties 21 days
after publication within which to intervene, submit responses to the
Postal Service's request for consideration of its proposed mail
classification change under the terms of Secs. 3001.69 through
3001.69c, and request a hearing.
(c) Within 28 days after publication of the notice of proceeding
pursuant to paragraph (b) of this section, the Commission shall decide
whether to consider the request of the Postal Service as a minor
classification change request under Secs. 3001.69 through 3001.69c, and
shall issue an order in the proceeding incorporating that ruling. The
Commission shall order a request to be considered under Secs. 3001.69
through 3001.69c if it finds that:
(1) The requested classification change is minor in character, and
(2) The effects of the requested change are likely to be
appropriately limited in scope and overall impact.
(i) If the Commission determines that the request of the Postal
Service is not appropriate for consideration as a minor classification
change request, no further procedures under Secs. 3001.69 through
3001.69c shall be ordered, and the request will be considered in
accordance with other appropriate provisions of subpart C of this part.
(ii) If the Commission determines that the Postal Service request
is appropriate for consideration under Secs. 3001.69 through 3001.69c,
those respondents who request a hearing shall be directed to state with
specificity within 14 days after publication of the notice the issues
of material fact that require a hearing for resolution. Respondents
shall also identify the fact or facts set forth in the Postal Service's
filing that the party disputes, and when possible, what the party
believes to be the true fact or facts and the evidence it intends to
provide in support of its position.
(d) The Commission will hold hearings on a Postal Service request
which is considered under Secs. 3001.69 through 3001.69c when it
determines that there are genuine issues of material fact to be
resolved, and that a hearing is needed to resolve those issues.
Hearings on the Postal Service request will commence within 21 days
after issuance of the Commission order pursuant to paragraph (c) of
this section. Testimony responsive to the Postal Service request will
be due 14 days after the conclusion of hearings on the Postal Service
request.
Sec. 3001.69c Expedited minor classification cases--time limits.
The Commission will treat cases to which Secs. 3001.69 through
3001.69c apply as subject to the maximum expedition consistent with
procedural fairness. The schedule for adoption of a recommended
decision will therefore be established, in each such case, to allow for
issuance of such decision not more than 90 days after the filing of the
request of the Postal Service if no hearing is held, and not more than
120 days after the filing of the request if a hearing is scheduled.
3. Subpart I is added to read as follows:
Subpart I--Rules for Expedited Review to Allow Market Tests of Proposed
Mail Classification Changes
Sec.
3001.161 Applicability.
3001.162 Filing of market test proposal and supporting direct
evicence.
3001.163 Procedures--expedition of public notice and procedural
schedule.
3001.164 Rule for decision.
3001.165 Data collection and reporting requirements.
3001.166 Suspension, continuation or termination of proceeding.
[[Page 54987]]
Subpart I--Rules for Expedited Review to Allow Market Tests of
Proposed Mail Classification Changes
Sec. 3001.161 Applicability.
The rules in this subpart apply in cases in which the Postal
Service requests a recommended decision pursuant to section 3623
preceded by testing in the market in order to develop information
necessary to support a permanent change. The requirements and
procedures specified in this subpart apply exclusively to the
Commission's determination to recommend in favor of or against a market
test proposed by the Postal Service, and do not supersede any other
rules applicable to the Postal Service's request for recommendation of
a permanent change in mail classification. In administering this
subpart, it shall be the policy of the Commission to recommend market
tests that are reasonably calculated to produce information needed to
support a permanent change in mail classification, and that are
reasonably limited in scope, scale, duration, and potential adverse
impact. Except in extraordinary circumstances and for good cause shown,
the Commission shall not recommend market tests of more than one year
in duration; however, this limitation is not intended to bar the Postal
Service from conducting more than one market test in support of a
potential permanent change in mail classification in appropriate
circumstances.
Sec. 3001.162 Filing of market test proposal and supporting direct
evidence.
Whenever the Postal Service determines to request that the
Commission submit a recommended decision on a change in mail
classification preceded by testing in the market, the Postal Service
shall file with the Commission, in addition to its request for a
permanent change in mail classification pursuant to section 3623, a
request for a recommended decision in favor of its proposed market test
of the requested change in mail classification. Each formal request
filed under this subpart shall include such information and data and
such statements of reasons and bases as are necessary and appropriate
fully to inform the Commission and the parties of the nature, scope,
significance and impact of the proposed market test, and to show that
it is in the public interest and in accordance with the policies of the
Act and the applicable criteria of the Act. Each formal request shall
also include the following particular information:
(a) A description of the services to be provided in the market
test, and the relationship between the services to be provided and the
permanent change or changes in the mail classification schedule
requested by the Postal Service;
(b) A statement of each rate or fee to be charged for each service
to be provided during the market test, together with all information
relied upon to establish consistency of those rates and fees with the
factors specified in section 3622(b);
(c) A description of the number and extent of the service areas in
which the market test will be conducted, including the number and type
of postal facilities which will be used;
(d) A statement of the planned duration of the market test;
(e) Proposed Domestic Mail Classification Schedule provisions which
incorporate the information required in paragraphs (a) through (d) of
this section;
(f) An estimate of the number of customers who will participate in
the market test, together with a description of the means by which the
Postal Service plans to provide equal access to all potential users in
the test market service areas; and
(g) A plan for testing the proposed change or changes in the
market, including a plan for gathering the data needed to support a
permanent change in mail classification and for reporting the test data
to the Commission. If periodic reporting of the test data would be
harmful to the purposes of the test, such as by revealing information
that might encourage competitors or mailers to take actions that would
affect the test results, the plan may provide for presentation of the
test data as part of the subsequent filing of data supporting a
permanent mail classification change.
Sec. 3001.163 Procedures--expedition of public notice and procedural
schedule.
(a) The purpose of this section is to provide a schedule for
expediting proceedings in which the Postal Service proposes to conduct
a market test of a requested change in mail classification it has
submitted to the Commission pursuant to section 3623.
(b) Persons who are interested in participating in proceedings to
consider Postal Service requests to conduct a market test may register
at any time with the Secretary of the Postal Rate Commission, who shall
maintain a publicly available list of the names and business addresses
of all such registrants. Persons whose names appear on this list will
automatically become parties to each proceeding in which the Postal
Service requests to conduct a market test pursuant to this subpart.
Other interested persons may intervene pursuant to Sec. 3001.20 within
28 days after the filing of a formal request made under the provisions
of this subpart. Parties may withdraw from the register or a particular
case by filing a notice with the Commission.
(c) When the Postal Service files a request under the provisions of
this subpart, it shall on that same day effect service by hand delivery
of the complete filing to each person registered pursuant to paragraph
(b) of this section who maintains an address for service within the
Washington metropolitan area and service the complete filing by Express
Mail service on all other registrants. Each registrant is responsible
for insuring that his or her address remains current.
(d) When the Postal Service files a request under the provisions of
this subpart, it shall on that same day send by Express Mail to all
participants in the most recent omnibus rate case a notice which
briefly describes its proposal. This notice shall indicate on its first
page that it is a notice of a Market Test Request to be considered
under this subpart, and identify the last day for filing a notice of
intervention with the Commission.
(e) Within 5 days after receipt of a Postal Service request under
the provisions of this subpart, the Commission shall issue a notice of
proceeding and provide for intervention by interested parties pursuant
to Sec. 3001.20. In the event that a party wishes to dispute a genuine
issue of material fact to be resolved in the consideration of the
Postal Service's request, that party shall file with the Commission a
request for a hearing within the time allowed in the notice of
proceeding. The request for a hearing shall state with specificity the
fact or facts set forth in the Postal Service's filing that the party
disputes, and when possible, what the party believes to be the true
fact or facts and the evidence it intends to provide in support of its
position. The Commission will hold hearings on a Postal Service request
made pursuant to this subpart when it determines that there is a
genuine issue of material fact to be resolved, and that a hearing is
needed to resolve that issue.
Sec. 3001.164 Rule for decision.
The Commission will issue a decision in accordance with the
policies of the Postal Reorganization Act recommending either in favor
of or against the Postal Service's proposed market test. The purpose of
this subpart is to allow for consideration of proposed market tests
within 90 days, consistent
[[Page 54988]]
with the procedural due process rights of interested persons.
Sec. 3001.165 Data collection and reporting requirements.
In any case in which the Commission has issued a recommended
decision in favor of a market test requested by the Postal Service, and
the Board of Governors has put the market test recommended by the
Commission into effect, the Postal Service shall gather test data and
report them to the Commission in accordance with the plan submitted
pursuant to Sec. 3001.162(f). If the Postal Service's plan for
reporting test data does not provide for periodic reporting during the
conduct of the test, the Postal Service shall submit all test data to
the Commission no later than 60 days following the conclusion of the
test.
Sec. 3001.166 Suspension, continuation or termination of proceeding.
(a) In any case in which the Commission has issued a recommended
decision in favor of a market test requested by the Postal Service, and
the Board of Governors has put the market test recommended by the
Commission into effect, the Postal Service may move for suspension of
the proceeding in which its request for a permanent change in mail
classification is to be considered. The Commission shall grant the
Postal Service's motion for suspension if, in the Commission's opinion,
it would be reasonable under the circumstances to defer consideration
of the request until the information to be produced in connection with
the market test becomes available.
(b) At any time during the pendency of a market test recommended by
the Commission pursuant to this subpart, or following the completion of
such a market test, the Postal Service may move to revise or withdraw
its request for a permanent change in mail classification. If the
Postal Service moves to revise its request, it shall file with the
Commission all data necessary to support its amended request. If the
Postal Service moves to withdraw its request, it need not produce the
test data that would otherwise be submitted pursuant to Sec. 3001.165.
4. Subpart J is added to read as follows:
Subpart J--Rules for Expedited Review of Requests for Provisional
Service Changes of Limited Duration
Sec.
3001.171 Applicability.
3001.172 Filing of formal request and prepared direct evidence.
3001.173 Procedures--expedition of public notice and procedural
schedule.
3001.174 Rule for decision.
3001.175 Data collection and reporting requirements.
3001.176 Continuation or termination of provisional service.
Subpart J--Rules for Expedited Review of Requests for Provisional
Service Changes of Limited Duration
Sec. 3001.171 Applicability.
The rules in this subpart apply in cases in which the Postal
Service requests that the Commission recommend the establishment of a
provisional service which will supplement, but will not alter, existing
mail classifications and rates for a limited and fixed duration. The
requirements and procedures specified in this subpart apply exclusively
to the Commission's determination to recommend in favor of or against a
provisional service proposed by the Postal Service, and do not
supersede the rules applicable to requests for permanent changes in
rates, fees, mail classifications, and in the nature of postal
services. In administering this subpart, it shall be the policy of the
Commission to recommend the introduction of provisional services that
enhance the range of postal services available to the public, without
producing a material adverse effect overall on postal revenues or
costs, and without causing unnecessary or unreasonable harm to
competitors of the Postal Service. Except in extraordinary
circumstances and for good cause shown, the Commission shall not
recommend provisional services of more than two years in duration;
however, the Commission may grant a request to extend a provisional
service for an additional year if a Postal Service request to establish
the provisional service as a permanent mail classification is pending
before the Commission.
Sec. 3001.172 Filing of formal request and prepared direct evidence.
(a) Whenever the Postal Service determines to request that the
Commission submit a decision recommending the establishment of a
provisional service of limited and fixed duration, it shall file a
request for a change in mail classification pursuant to section 3623
that comports with the requirements of subpart C of the rules of
practice and of this subpart. Each formal request shall include the
following particular information:
(1) A description of the proposed classification, including
proposed Domestic Mail Classification Schedule language and rate
schedules;
(2) An explanation and complete documentation of the development of
the rates proposed for the provisional service;
(3) A termination date on which the proposed provisional service
will be discontinued;
(4) An estimate of the effect of implementing the proposed
provisional service on overall Postal Service costs and revenues during
the period in which it is in effect; and
(5) A plan for meeting the data collection and reporting
requirements specified in Sec. 3001.175.
(b) If the Postal Service believes that data required to be filed
under Sec. 3001.64 are unavailable, it shall explain their
unavailability, as required by Sec. 3001.64(a)(2)(i), (ii), and (iv).
In particular, if the provisional character of the request bears on the
unavailability of the data in question, the Postal Service shall
explain in detail the nexus between these circumstances. A satisfactory
explanation of the unavailability of data will be grounds for excluding
from the proceeding a contention that the absence of the data should
form a basis for rejection of the request, unless the party desiring to
make such contention:
(1) Demonstrates that, having regard to all the facts and
circumstances of the case, it was clearly unreasonable for the Postal
Service to propose the change in question without having first secured
the data which are unavailable, or
(2) Demonstrates other compelling circumstances requiring that the
absence of the data in question be treated as bearing on the merits of
the proposal.
Sec. 3001.173 Procedures--expedition of public notice and procedural
schedule.
(a) The purpose of this section is to provide a schedule for
expediting proceedings in which the Postal Service requests that the
Commission recommend the establishment of a provisional service which
will supplement, but will not alter, existing mail classifications and
rates for a limited and fixed duration.
(b) Persons who are interested in participating in proceedings to
consider Postal Service requests to establish a provisional service may
register at any time with the Secretary of the Postal Rate Commission,
who shall maintain a publicly available list of the names and business
addresses of all such registrants. Persons whose names appear on this
list will automatically become parties to each proceeding in which the
Postal Service requests establishment of a provisional service pursuant
to this subpart. Other
[[Page 54989]]
interested persons may intervene pursuant to Sec. 3001.20 within 28
days after the filing of a formal request made under the provisions of
this subpart. Parties may withdraw from the register or a particular
case by filing a notice with the Commission.
(c) When the Postal Service files a request under the provisions of
this subpart, it shall on that same day effect service by hand delivery
of the complete filing to each person registered pursuant to paragraph
(b) of this section who maintains an address for service within the
Washington metropolitan area and serve the complete filing by Express
Mail service on all other registrants. Each registrant is responsible
for insuring that his or her address remains current.
(d) When the Postal Service files a request under the provisions of
this subpart, it shall on that same day send by Express Mail service to
all participants in the most recent omnibus rate case a notice which
briefly describes its proposal. Such notice shall indicate on its first
page that it is a notice of a Request for Establishment of a
Provisional Service to be considered under this subpart, and identify
the last day for filing a notice of intervention with the Commission.
(e) Within 5 days after receipt of a Postal Service request under
the provisions of this subpart, the Commission shall issue a notice of
proceeding and provide for intervention by interested parties pursuant
to Sec. 3001.20. In the event that a party wishes to dispute a genuine
issue of material fact to be resolved in the consideration of the
Postal Service's request, that party shall file with the Commission a
request for a hearing within the time allowed in the notice of
proceeding. The request for a hearing shall state with specificity the
fact or facts set forth in the Postal Service's filing that the party
disputes, and when possible, what the party believes to be the true
fact or facts and the evidence it intends to provide in support of its
position. The Commission will hold hearings on a Postal Service request
made pursuant to this subpart when it determines that there is a
genuine issue of material fact to be resolved, and that a hearing is
needed to resolve that issue.
Sec. 3001.174 Rule for decision.
The Commission will issue a decision in accordance with the
policies of the Postal Reorganization Act recommending either in favor
of or against the Postal Service's proposed provisional service of
limited duration. The purpose of this subpart is to allow for
consideration of proposed provisional services within 90 days,
consistent with the procedural due process rights of interested
persons.
Sec. 3001.175 Data collection and reporting requirements.
In any case in which the Commission has issued a recommended
decision in favor of a provisional service of limited duration
requested by the Postal Service, and the Board of Governors has put the
provisional service recommended by the Commission into effect, the
Postal Service shall collect and report data pertaining to the
provisional service during the period in which it is in effect in
accordance with the periodic reporting requirements specified in
Sec. 3001.102 . If the Postal Service's regular data reporting systems
are not revised to include the provisional service during the period of
its effectiveness, the Postal Service shall perform, and provide to the
Commission on a schedule corresponding to Sec. 3001.102 reports,
special studies to provide equivalent information to the extent
reasonably practicable.
Sec. 3001.176 Continuation or termination of provisional service.
At any time during the period in which a provisional service
recommended by the Commission and implemented by the Board of Governors
is in effect, the Postal Service may submit a formal request that the
provisional service be terminated, or that it be established, either as
originally recommended by the Commission or in modified form, as a
permanent mail classification. Following the conclusion of the period
in which the provisional service was effective, the Postal Service may
submit a request to establish the service as a mail classification
under any applicable subpart of the Commission's rules.
5. Subpart K is added to read as follows:
Subpart K--Rules for Use of Multi-Year Test Periods
Sec.
3001.181 Use of multi-year test period for proposed new services.
3001.182 Filing of formal request and prepared direct evidence.
Subpart K--Rules for Use of Multi-Year Test Periods
Sec. 3001.181 Use of multi-year test period for proposed new services.
The rules in this subpart apply to Postal Service requests pursuant
to section 3623 for the establishment of a new postal service, with
attendant rates, which in the estimation of the Postal Service cannot
generate sufficient volumes and revenues to recover all costs
associated with the new service in the first full fiscal year of its
operation. In administering these rules, it shall be the Commission's
policy to adopt tests periods of up to 5 fiscal years for the purpose
of determining breakeven for newly introduced postal services where the
Postal Service has presented convincing substantial evidence in support
of the test period proposed.
Sec. 3001.182 Filing of formal request and prepared direct evidence.
In filing a request for establishment of a new postal service
pursuant to section 3623, the Postal Service may request that its
proposal be considered for a test period of longer duration than the
test period prescribed in Sec. 3001.54(f)(2). Each such request shall
be supported by the following information:
(a) The testimony of a witness on behalf of the Postal Service, who
shall provide:
(1) A complete definition of the multi-year test period requested
for the proposed new service;
(2) A detailed explanation of the Postal Service's preference of a
multi-year test period, including the bases of the Service's
determination that the test period prescribed in Sec. 3001.54(f)(2)
would be inappropriate; and
(3) A complete description of the Postal Service's plan for
achieving an appropriate contribution to institutional costs from the
new service by the end of the requested test period.
(b) Complete documentary support for, and detail underlying, the
test period requested by the Postal Service, including:
(1) Estimated costs, revenues, and volumes of the proposed new
service for the entire requested test period;
(2) Return on Investment projections and all other financial
analyses prepared in connection with determining the cost and revenue
impact of the proposed new service; and
(3) Any other analyses prepared by the Postal Service that bear on
the overall effects of introducing the proposed new service during the
requested test period.
[FR Doc. 95-26554 Filed 10-26-95; 8:45 am]
BILLING CODE 7710-FW-P
