39 C.F.R. Subpart K—Rules for Use of Multi-Year Test Periods
Title 39 - Postal Service
Source: 66 FR 54444, Oct. 29, 2001, unless otherwise noted.
(a) The rules in §§3001.181 and 3001.182 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 substantial evidence in support of the test period proposed. (b) This section and §3001.182 are effective November 28, 2001 through November 28, 2006. 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 §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 §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.
Title 39: Postal Service
PART 3001—RULES OF PRACTICE AND PROCEDURE
Subpart K—Rules for Use of Multi-Year Test Periods
§ 3001.181 Use of multi-year test period for proposed new services.
§ 3001.182 Filing of formal request and prepared direct evidence.
