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Order No. 5321 United States Of Postal Regulatory Commission Submitted 11/22/2019 3:21:10 PM Filing ID: 111122 Accepted 11/22/2019 ORDER NO. 5321 UNITED STATES OF AMERICA POSTAL REGULATORY COMMISSION WASHINGTON, DC 20268-0001 Before Commissioners: Robert G. Taub, Chairman; Michael Kubayanda, Vice Chairman; Mark Acton; Ann C. Fisher; and Ashley E. Poling Notice of Market-Dominant Docket No. R2020-1 Price Adjustment ORDER ON PRICE ADJUSTMENTS FOR USPS MARKETING MAIL, PERIODICALS, PACKAGE SERVICES, AND SPECIAL SERVICES PRODUCTS AND RELATED MAIL CLASSIFICATION CHANGES Washington, DC 20268-0001 November 22, 2019 TABLE OF CONTENTS Page I. INTRODUCTION AND OVERVIEW ..................................................................... 1 II. PROCEDURAL HISTORY .................................................................................... 3 Notice and Initial Commission Action ......................................................... 3 Additional Information Regarding the Notice .............................................. 5 Comments ................................................................................................. 7 III. USPS MARKETING MAIL .................................................................................... 8 Introduction ................................................................................................ 8 Price Adjustment Authority ......................................................................... 9 1. Introduction ..................................................................................... 9 2. The Postal Service’s Position .......................................................... 9 3. Comments ..................................................................................... 10 4. Commission Analysis .................................................................... 10 Workshare Discounts Exceeding Avoided Costs ..................................... 10 1. Introduction ................................................................................... 10 2. The Postal Service’s Position ........................................................ 11 3. Comments ..................................................................................... 13 4. Commission Analysis .................................................................... 14 CY 2020 Promotions ................................................................................ 15 1. Introduction ................................................................................... 15 2. Tactile, Sensory and Interactive Mailpiece Engagement Promotion (Feb. 1 – Jul. 31, 2020) ................................................................. 15 3. Emerging and Advanced Technology Promotion (Mar. 1 – Aug. 31, 2020) ............................................................................................. 16 4. Earned Value Reply Mail Promotion (Apr. 1 – Jun. 30, 2020) ....... 16 5. Mobile Shopping Promotion (Aug. 1 – Dec. 31, 2020) .................. 18 6. Informed Delivery Promotion (Sep. 1 – Nov. 30, 2020) ................. 18 7. Comments ..................................................................................... 18 8. Commission Analysis .................................................................... 19 Statutory Preferential Rates ..................................................................... 24 Nonprofit Discounts ................................................................................. 24 Compliance with FY 2010 ACD Directives ............................................... 25 1. Introduction ................................................................................... 25 2. The Postal Service’s Position ........................................................ 25 3. Comments ..................................................................................... 26 4. Commission Analysis .................................................................... 26 Breakpoint Prices ..................................................................................... 26 1. Introduction ................................................................................... 26 2. The Postal Service’s Position ........................................................ 27 3. Comments ..................................................................................... 27 4. Commission Analysis .................................................................... 27 IV. PERIODICALS ................................................................................................... 28 Introduction .............................................................................................. 28 Price Adjustment Authority ....................................................................... 29 1. Introduction ................................................................................... 29 2. The Postal Service’s Position ........................................................ 29 3. Comments ..................................................................................... 30 4. Commission Analysis .................................................................... 30 Workshare Discounts Exceeding Avoided Costs ..................................... 30 1. Introduction ................................................................................... 30 2. The Postal Service’s Position ........................................................ 30 3. Comments ..................................................................................... 31 4. Commission Analysis .................................................................... 31 Statutory Preferential Rates ..................................................................... 31 1. Introduction ................................................................................... 31 2. The Postal Service’s Position ........................................................ 31 3. Comments ..................................................................................... 32 4. Commission Analysis .................................................................... 32 V. PACKAGE SERVICES ....................................................................................... 33 Introduction .............................................................................................. 33 Price Adjustment Authority ....................................................................... 33 1. Introduction ................................................................................... 33 - ii - 2. The Postal Service’s Position ........................................................ 34 3. Comments ..................................................................................... 34 4. Commission Analysis .................................................................... 34 Workshare Discounts Exceeding Avoided Costs ..................................... 35 1. Introduction ................................................................................... 35 2. The Postal Service’s Position ........................................................ 35 3. Comments ..................................................................................... 35 4. Commission Analysis .................................................................... 35 Classification Changes ............................................................................ 36 1. Introduction ................................................................................... 36 2. The Postal Service’s Position ........................................................ 36 3. Comments ..................................................................................... 36 4. Commission Analysis .................................................................... 36 Statutory Preferential Rates ..................................................................... 37 VI. SPECIAL SERVICES ......................................................................................... 37 Introduction .............................................................................................. 37 Price Adjustment Authority ....................................................................... 38 1. Introduction ................................................................................... 38 2. The Postal Service’s Position ........................................................ 39 3. Comments ..................................................................................... 40 4. Commission Analysis .................................................................... 40 Classification Changes ............................................................................ 41 1. Introduction ................................................................................... 41 2. The Postal Service’s Position ........................................................ 41 3. Comments ..................................................................................... 42 4. Commission Analysis .................................................................... 42 VII. THE OBJECTIVES AND FACTORS .................................................................. 45 Introduction .............................................................................................. 45 The Postal Service’s Position .................................................................. 49 1. USPS Marketing Mail .................................................................... 49 2. Periodicals ...................................................................................
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