Escolar Documentos
Profissional Documentos
Cultura Documentos
Issued in Renton, Washington, on May 17, institutional costs,2 rather than the PAEA be defined in certain ways. See, e.g.,
2007. Reply Comments of the United States Postal
Service, May 7, 2007, at 3–10, and Appendix C;
Ali Bahrami, 1 PRC Order No. 2, Advance Notice of Proposed
Initial Comments of Pitney Bowes Inc. in Response
Manager, Transport Airplane Directorate, Rulemaking on Regulations Establishing a System to Advance Notice of Proposed Rulemaking on
Aircraft Certification Service. of Ratemaking, Docket No. RM2007–1, January 30, Regulations Establishing a System of Ratemaking,
2007. April 6, 2007, at 3–4, 17–20, 35–36; and Comments
[FR Doc. E7–10105 Filed 5–24–07; 8:45 am] 2 See, e.g., Initial Comments of the United States of the Parcel Shippers Association, April 6, 2007,
BILLING CODE 4910–13–P Postal Service, April 6, 2007, at 4–5; Comments of at 24–26.
VerDate Aug<31>2005 15:35 May 24, 2007 Jkt 211001 PO 00000 Frm 00007 Fmt 4702 Sfmt 4702 E:\FR\FM\25MYP1.SGM 25MYP1
Federal Register / Vol. 72, No. 101 / Friday, May 25, 2007 / Proposed Rules 29285
ensure compliance with the price cap reached by dividing the most recently averaged with the previous 11 monthly
defined in sections 3622(d)(1)(A) and available monthly CPI by the monthly CPI values. This 12-month average
(2)(A). In part C of the appendix, the CPI for the same month of the previous could then be compared to the average
Postal Service describes its proposed year and then subtracting one from the for the previous 12 months in the same
method of calculating the CPI cap quotient. way that the single-month figures are in
limitation. The cap would be equal to This point-to-point approach may be the Postal Service’s proposal. Figures 1
the difference between the most recently contrasted with an alternative that and 2 show the cap as it would be
available monthly CPI and the monthly would compare aggregated monthly CPI calculated under both methods for each
CPI for the same month of the previous figures instead of those of a single month in 2005 and 2006, respectively.
year, divided by the monthly CPI for the month. For example, the most recently
previous year. The same result is available monthly CPI could be
cprice-sewell on PROD1PC71 with PROPOSALS
EP25MY07.001</GPH> EP25MY07.002</GPH>
As the graphs show, the results of the and may offer additional alternatives. 3622(b) and the factors in section
point-to-point method exhibit a greater Please discuss how each method 3622(c).
variation based on the month that is conforms to the language in section 2. Appendix C of the Postal Service
selected. The parties are requested to 3622(d), as well as how each method reply comments provides a series of
comment on the merits of each method comports with the objectives in section examples to illustrate its proposal for
VerDate Aug<31>2005 15:35 May 24, 2007 Jkt 211001 PO 00000 Frm 00008 Fmt 4702 Sfmt 4702 E:\FR\FM\25MYP1.SGM 25MYP1
29286 Federal Register / Vol. 72, No. 101 / Friday, May 25, 2007 / Proposed Rules
calculations that would ensure discounts remain consistent with this regulations applicable to rates for
compliance with the price cap defined standard? competitive products to:
in sections 3622(d)(1)(A) and (2)(A). ‘‘(1) prohibit the subsidization of
III. Regulations Concerning competitive products by market-
Part B of the appendix describes the
Competitive Products dominant products;
Postal Service’s proposed method of
calculating the annual change in rates to 4. Subchapter II of title 39, 39 U.S.C. (2) ensure that each competitive
which the CPI cap shall be applied. 3631–3634, sets forth the provisions product covers its costs attributable; and
The discussion begins by proposing applicable to competitive products, (3) ensure that all competitive
principles (‘‘Standards 1 and 2’’) that which initially are to consist of priority products collectively cover what the
the measure of the change in rates mail, expedited mail, bulk parcel post, Commission determines to be an
should satisfy. It concludes that any bulk international mail, and mailgrams. appropriate share of the institutional
fixed volume weighting system will § 3631(a).4 A procedure must be costs of the Postal Service.’’
satisfy those principles. After explaining established to allow for amending this Regarding section 3633—
list of competitive products. a. What data should be filed
the practical impediment to the use of
Regarding section 3631— periodically with the Commission to
the ideal weights, it describes the
a. What current mail matter is enable it to assess the Postal Service’s
weaknesses of two potential methods of
‘‘priority mail’’? compliance with subsection:
measuring the base rates. b. What current mail matter is i. (a)(1),
The Postal Service proposes to use the ‘‘expedited mail’’? ii. (a)(2), and
most recent 12 months of available data c. What current mail matter is ‘‘bulk iii. (a)(3)?
to establish the volume weights and to parcel post’’? b. How frequently, e.g., quarterly,
recalculate average revenue per piece by d. What current mail matter is ‘‘bulk annually, should such data be filed with
applying those weights to the current international mail’’? the Commission?
rates. The result would be considered e. What, if any, current mail matter is c. Are existing data systems adequate
the average base rate. The average new ‘‘mailgrams’’? to enable the Commission to assess the
rate would then be calculated by f. To what does ‘‘mail classification Postal Service’s compliance with
applying the same weights to the new schedule,’’ as used in section 3631(c), section 3633(a)? If not, what
set of rates. The percentage difference refer? modifications would be necessary?
between the average base (current) rate 5. Section 3632 authorizes the d. What is the appropriate standard
and the average new rate would be Governors to establish rates and classes for determining whether competitive
compared to the percentage change in of mail for competitive products in products are being subsidized by market
CPI. accordance with subchapter II of dominant products?
Parties are requested to comment on chapter 36 and regulations promulgated e. What standard should be applied to
the method of calculating the annual by the Commission under section 3633. determine the appropriate share of
change in rates under section 3622(d). The rates and classes shall be institutional costs to be recovered
Please discuss the strengths and established in writing, accompanied by collectively from competitive products?
weaknesses of the methods described by a statement of explanation and f. Over what period of time should the
the Postal Service in Appendix C of its justification and the effective date of standard identified in (e) be deemed
reply comments (and alternative each rate or class. § 3632(b)(1). valid?
Regarding section 3632— g. Should the standard identified in
methods, if desired) and how each
a. What information is needed to (e) raise a rebuttable presumption of
method comports with the objectives in
support new rates of general validity?
section 3622(b) and the factors in h. If return on investment (or assets)
section 3622(c). Please include a applicability?
b. What information is needed to is used, what capital structure (assumed
discussion of how to treat an altered rate or otherwise) should be used for the
design, for example, one for which support new rates not of general
applicability? Postal Service?
billing determinants do not exist, such 7. Section 3634 provides for an
as the new rates to be applied to c. Is the information needed to
support a rate decrease different from annual, assumed Federal income tax on
Periodicals. the competitive products income. The
that needed to support a rate increase?
3. Section 3622(e) directs the amount of the assumed tax is to be
Please elaborate.
Commission to ‘‘ensure that workshare transferred from the Competitive
d. What information is needed to
discounts do not exceed the cost that Products Fund to the Postal Service
support new classes of general
the Postal Service avoids as a result of Fund.5
applicability?
the workshare activity,’’ except in e. What information is needed to Regarding section 3634—
certain specified situations. In the support new classes not of general a. Is the assumed Federal income tax
context of a Notice of Rate Adjustment applicability? amount appropriately classified as an
for a class of mail— f. What criteria should be used to attributable cost?
a. What information and/or data are determine whether a rate or class is of b. On what basis should the assumed
needed to allow the Commission to general applicability or is not of general Federal income tax amount be
evaluate whether new workshare applicability in the Nation as a whole? reasonably assigned among competitive
discounts are consistent with this g. How should ‘‘any substantial region products?
standard? of the Nation’’ be defined?
5 Pursuant to section 2011(h) the Secretary of the
b. What information and/or data are 6. Pursuant to section 3633(a), the
cprice-sewell on PROD1PC71 with PROPOSALS
VerDate Aug<31>2005 15:35 May 24, 2007 Jkt 211001 PO 00000 Frm 00009 Fmt 4702 Sfmt 4702 E:\FR\FM\25MYP1.SGM 25MYP1
Federal Register / Vol. 72, No. 101 / Friday, May 25, 2007 / Proposed Rules 29287
VerDate Aug<31>2005 15:35 May 24, 2007 Jkt 211001 PO 00000 Frm 00010 Fmt 4702 Sfmt 4702 E:\FR\FM\25MYP1.SGM 25MYP1