OFFICIAL TRANSCRIPT OF PROCEEDINGS
BEFORE THE
POSTAL RATE COMMISSION
In the Matter of: )
)
POSTAL RATE AND FEE CHANGES ) Docket No. R2005-1
Volume: 1
Date: May 5, 2005
Place: Washington, D.C.
Pages: 1 through 40
HERITAGE REPORTING CORPORATION
Official Reporters
1220 L Street, N.W., Suite 600
Washington, D.C. 20005
(202) 628-4888
39
POSTAL RATE COMMISSION
In the Matter of: )
)
POSTAL RATE AND FEE CHANGES ) Docket No. R2005-1
Room 300
Postal Rate Commission
1333 H Street, N.W.
Washington, D.C.
Thursday, May 5, 2005
The above-entitled matter came on for hearing
pursuant to notice, at 10:02 a.m.
BEFORE:
HON. GEORGE A. OMAS, CHAIRMAN
HON. TONY A. HAMMOND, VICE CHAIRMAN
HON. RUTH Y. GOLDWAY, COMMISSIONER
HON. DANA B. COVINGTON, COMMISSIONER
HON. DAWN A. TISDALE, COMMISSIONER
APPEARANCES:
On behalf of the United States Postal Service:
DAN FOUCHEAUX, Esquire
ERIC KOETTING, Esquire
DAVID H. RUBIN, Esquire
SCOTT REITER, Esquire
MICHAEL TIDWELL, Esquire
NAN McKENZIE, Esquire
BRIAN REIMER, Esquire
KEN HOLLIES, Esquire
SHEELA PORTONOVO, Esquire
KEITH WEIDNER, Esquire
United States Postal Service
Law Department - International and Ratemaking Law
475 L'Enfant Plaza, S.W.
Washington, D.C. 20260-1137
(202) 268-2989 Fax: (202) 268-5402
On behalf of the Office of the Consumer Advocate:
SHELLEY DREIFUSS, Esquire
EMMETT RAND COSTICH, II, Esquire
KENNETH E. RICHARDSON, Esquire
Postal Rate Commission
Office of the Consumer Advocate
1333 H Street, N.W., Suite 300
Washington, D.C. 20268-0001
(202) 789-6833 Fax: (202) 789-6819
On behalf of Advo, Inc. and Saturation Mail Coalition:
THOMAS W. McLAUGHLIN, Esquire
JOHN M. BURZIO, Esquire
Burzio & McLaughlin
1054 - 31st Street, N.W., Suite 540
Washington, D.C.
(202) 965-4555 Fax: (202) 965-4432
On behalf of the American Bankers Association:
IRVING D. WARDEN, Esquire
Associate General Counsel
American Bankers Association
1120 Connecticut Avenue, N.W.
Washington, D.C. 20036
(202) 663-5027 Fax: (202) 828-4548
APPEARANCES (continued):
On behalf of the American Postal Workers Union, AFL-CIO:
DARRELL ANDERSON
American Postal Workers Union, AFL-CIO
1300 L Street, N.W.
Washington, D.C. 20005-4128
(202) 842-4273 Fax: (202) 371-0992
On behalf of the Association for Postal Commerce:
IAN D. VOLNER, Esquire
RITA BRICKMAN, Esquire
MATTHEW FIELD, Esquire
Venable, LLP
575 Seventh Street, N.W.
Washington, D.C. 20004-1601
(202) 344-4814 Fax: (202) 344-8300
On behalf of the Association of Alternative Postal Systems:
BONNIE BLAIR, Esquire
Thompson Coburn, LLP
1909 K Street, N.W., Suite 600
Washington, D.C. 20006
(202) 585-6921 Fax: (202) 508-1027
On behalf of American Business Media:
DAVID STRAUS, Esquire
Thompson Coburn, LLP
1909 K Street, N.W., Suite 600
Washington, D.C. 20006
(202) 585-6921 Fax: (202) 508-1027
On behalf of the Association of American Publishers:
JOHN PRZYPYSZNY, Esquire
STEPHANIE ALBERT, Esquire
Drinker Biddle & Reath, LLP
1500 K Street, N.W.
Washington, D.C. 20005
(202) 842-8858 Fax: (202) 842-8465
APPEARANCES (continued):
On behalf of DMA Nonprofit Federation:
SENNY BOONE
DMA Nonprofit Federation
1111 - 19th Street, N.W., Suite 1180
Washington, D.C. 20036
On behalf of Direct Marketing Association, Inc.:
DANA T. (TOD) ACKERLY, II
Covington & Burling
1201 Pennsylvania Avenue, N.W.
Washington, D.C. 20004
(202) 662-5296 Fax: (202) 778-5296
On behalf of Discover Financial Services, Inc.:
ROBERT J. BRINKMANN, Esquire
Olive, Edwards & Brinkmann, LLC
1101 - 17th Street, N.W., Suite 602
Washington, D.C. 20036
(202) 331-3037 Fax: (202) 467-8204
On behalf of Dow Jones & Company, Inc.:
MICHAEL F. McBRIDE, Esquire
LeBoeuf, Lamb, Greene & MacRae, LLP
1875 Connecticut Avenue, N.W., Suite 1200
Washington, D.C. 20009-5728
(202) 986-8015
On behalf of the Greeting Card Association:
ALAN R. SWENDIMAN, Esquire
Jackson & Campbell, PC
1120 - 20th Street, N.W., Suite 300 South
Washington, D.C. 20036-3437
(202) 457-1646 Fax: (202) 457-1617/1678
DAVID F. STOVER, Esquire
2970 South Columbus Street, No. 1B
Arlington, Virginia 22206-1450
(703) 998-2568
APPEARANCES (continued):
On behalf of the Magazine Publishers of America, Inc.:
JAMES PIERCE MYERS, Esquire
Attorney-at-Law
1211 Connecticut Avenue, N.W., Suite 610
Washington, D.C. 20036
(202) 331-8315 Fax: (202) 331-8318
On behalf of the Mail Order Association of America:
DAVID C. TODD, Esquire
Patton Boggs, et al.
2550 M Street, N.W.
Washington, D.C. 20037
(202) 457-6410 Fax: (202) 457-6315
On behalf of the Mailing and Fulfillment Services Association:
IAN D. VOLNER, Esquire
RITA BRICKMAN, Esquire
MATTHEW FIELD, Esquire
Venable, LLP
575 Seventh Street, N.W.
Washington, D.C. 20004-1601
(202) 344-4814 Fax: (202) 344-8300
On behalf of the Major Mailers Association:
MICHAEL HALL
35396 Millville Road
Middleburg, Virginia 30017
(540) 687-3151
On behalf of the National Association of Presort Mailers:
HENRY A. HART, Esquire
Reed Smith, LLP
Suite 1100 - East Tower
1301 K Street, N.W.
Washington, D.C. 20005
(202) 414-9225 Fax: (202) 414-9299
APPEARANCES (continued):
On behalf of the National Newspaper Association:
TONDA RUSH, Esquire
King & Ballon
P.O. Box 50301
Arlington, Virginia 22205
(703) 812-8989 Fax: (703) 812-4555
On behalf of the National Postal Mail Handlers Union:
BRUCE SLART
On behalf of the Newspaper Association of America:
WILLIAM B. BAKER, Esquire
Wiley, Rein & Fielding, LLP
1176 K Street, N.W.
Washington, D.C. 20006
(202) 719-7255
On behalf of the Parcel Shippers Association:
TIMOTHY J. MAY, Esquire
Patton Boggs, LLP
2550 M Street, N.W.
Washington, D.C. 20037
(202) 457-6050 Fax: (202) 457-6315
On behalf of Pitney Bowes, Inc.:
JOHN LONGSTRETH, Esquire
MICHAEL F. SCANLON, Esquire
Preston, Gates, Ellis & Rouvelas Meeds, LLP
1735 New York Avenue, N.W.
Washington, D.C. 20006
(202) 661-6271 Fax: (202) 331-1024
On behalf of R.R. Donnelly & Sons Company:
IAN D. VOLNER, Esquire
RITA BRICKMAN, Esquire
MATTHEW FIELD, Esquire
Venable, LLP
575 Seventh Street, N.W.
Washington, D.C. 20004-1601
(202) 344-4814 Fax: (202) 344-8300
APPEARANCES (continued):
On behalf of Time Warner Inc.:
JOHN M. BURZIO, Esquire
TIMOTHY L. KEEGAN, Esquire
Burzio & McLaughlin
1054 - 31st Street, N.W., Suite 540
Washington, D.C. 20007
(202) 965-4555 Fax: (202) 965-4432
On behalf of United Parcel Service:
JOHN E. MCKEEVER, Esquire
LAURA A. BIANCKE, Esquire
DLA Piper, Rudnick, Gray, Cary, US, LLP
1650 Market Street
One Liberty Place, Suite 4900
Philadelphia, Pennsylvania 19103
(215) 656-3300 Fax: (215) 656-3301
On behalf of Val-Pak Dealers Association, Inc. and
Val-Pak Direct Marketing Systems, Inc.:
JOHN S. MILES, Esquire
WILLIAM J. OLSON, P.C.
JEREMIAH MORGAN, Esquire
William J. Olson, P.C.
8180 Greensboro Drive, Suite 1070
McLean, Virginia 22102
(703) 356-5070 Fax: (703) 356-5085
Heritage Reporting Corporation
(202) 628-4888
39
P R O C E E D I N G S
(10:02 a.m.)
CHAIRMAN OMAS: Good morning. It looks as though we have a full house, but before I begin my formal statement today, I would like to tell you, it's a long statement, so please bear with me. This is a prehearing conference, and we're going to try and set the ground work for proceeding with this case. So, you know, I don't have the best voice, so just bear with me. Okay? Thank you.
Good morning. This is the first prehearing conference in the Docket R-2005-1 considering the request of the United States Postal Service for rate and fee changes.
I am George Omas, chairman of the Postal Rate Commission. With me are Vice Chairman Tony Hammond, Commissioners Dana Covington, Ruth Goldway, and Don Tisdale.
I see many familiar faces this morning. In fact, we have a full house in the hearing room today, but I will take a minute to mention a few standing Commission practices.
Hearings for the receipt of evidence begin promptly at 9:30 a.m. We normally go about an hour and a half between breaks. Each day, we expect to complete the appearance of all scheduled witnesses. Therefore, if necessary, hearings may extend into the evening. Our hearings are available via real-time Web streaming from our Web site, www.prc.gov, so counsel can follow hearing progress.
We also maintain a telephone message that indicates what witnesses are scheduled to appear. That message is updated periodically on days when hearings are in session and as an alternative way to assist counsel to estimate when testimony of particular interests is likely to be received.
The reporter in this case is Heritage Reporting Company. There are forms for noting appearances available on the table as you enter the hearing room. If you wish to purchase transcripts, you should see the reporter after today's conference or call (202) 628-4888. Copies of transcripts are also available for review at the Commission's docket section. Transcripts will appear on the Commission's Web site several days after a hearing takes place.
At this point, I would like to ask counsel to identify themselves for the record. Advo, Inc.
MR. McLAUGHLIN: Mr. Chairman, Tom McLaughlin on behalf of Advo. Appearing with me would also be John Burzio. I would also like to note that the Saturation Mail Coalition will be filing a late-filed petition, and I will be representing them as well. Thank you.
CHAIRMAN OMAS: Thank you. Alliance of Nonprofit Mailers.
(No response.)
CHAIRMAN OMAS: American Bankers Association.
MR. WARDEN: Mr. Chairman, Irv Warden appearing for the American Bankers Association.
CHAIRMAN OMAS: Thank you. American Postal Workers Union.
MR. ANDERSON: Darrell Anderson appearing for American Postal Workers Union.
CHAIRMAN OMAS: Thank you. Association for Postal Commerce.
MR. VOLNER: Ian Volner. Good morning, Mr. Chairman. Ian Volner, with Rita Brickman and Matthew Field, appearing for the Association for Postal Commerce.
CHAIRMAN OMAS: Thank you.
MR. VOLNER: Do you want to do the others now, or would you rather do them in order?
CHAIRMAN OMAS: Well, I think we should do them in order for purposes of that.
MR. VOLNER: Okay.
CHAIRMAN OMAS: Thank you, Ian.
Association of Alternative Postal Systems.
MR. STRAUS: Your Honor, I would like to enter the appearance of Bonnie Blair, with Thompson Coburn, LLP. She couldn't make it today, and I'm with the same firm, and she asked me to enter her appearance for AAPS.
CHAIRMAN OMAS: Thank you.
MR. STRAUS: Mr. Chairman, I see that you skipped over American Business Media in your alphabetical list.
CHAIRMAN OMAS: You're next. Oh, I did. I'm sorry, Mr. Straus. American Business Media.
MR. STRAUS: Once again, David Straus for American Business Media.
CHAIRMAN OMAS: If I make that mistake, please correct me. I'm sorry.
Association of American Publishers.
MR. PRZYPYSZNY: Good morning, Mr. Chairman. John Przypyszny appearing on behalf of the Association of American Publishers.
CHAIRMAN OMAS: Bantam Corporation.
(No response.)
CHAIRMAN OMAS: Douglas F. Carlson.
(No response.)
CHAIRMAN OMAS: Digistamp, Inc.
(No response.)
CHAIRMAN OMAS: DMA Nonprofit Federation.
MS. BOONE: Good morning, Mr. Chairman. Senny Boone appearing on behalf of the DMA Nonprofit Federation.
CHAIRMAN OMAS: Direct Marketing Association, Inc.
MR. ACKERLY: Good morning, Mr. Chairman. Tod Ackerly appearing on behalf of DMA.
CHAIRMAN OMAS: Discover Financial Services, Inc.
MR. BRINKMANN: Mr. Chairman, members of the Commission, Robert Brinkmann on behalf of Discover Financial Services, Inc.
CHAIRMAN OMAS: Thank you.
Dow Jones & Company, Inc.
MR. McBRIDE: Good morning, Mr. Chairman and members of the Commission. Michael F. McBride for Dow Jones & Company, Inc.
CHAIRMAN OMAS: Thank you, Mr. McBride.
Greeting Card Association.
MR. SWENDIMAN: Good morning, Mr. Chairman. Alan Swendiman, along with David Stover, appearing on behalf of the Greeting Card Association.
CHAIRMAN OMAS: Thank you.
The Hearst Corporation.
(No response.)
CHAIRMAN OMAS: Institute for Research on the Economics of Taxation.
(No response.)
CHAIRMAN OMAS: Magazine Publishers of America, Inc.
MR. MYERS: Good morning, Mr. Chairman and members of the Commission. Pierce Myers on behalf of the Magazine Publishers of America, Inc.
CHAIRMAN OMAS: Thank you.
Mail Order Association of America.
MR. TODD: Good morning. David Todd appearing for Mail Order Association of America.
CHAIRMAN OMAS: Thank you, Mr. Todd.
Mailing and Fulfillment Services Association.
MR. VOLNER: Good morning again, Mr. Chairman. Ian Volner, with Rita Brickman and Matt Field, appearing on behalf of the Mailing Order Fulfillment Association.
CHAIRMAN OMAS: Thank you, Mr. Volner.
Major Mailers Association.
MR. HALL: Good morning, Mr. Chairman. Michael Hall on behalf of Major Mailers Association.
CHAIRMAN OMAS: Thank you.
The McGraw Hill Companies, Inc.
(No response.)
CHAIRMAN OMAS: The National Association of Letter Carriers.
(No response.)
CHAIRMAN OMAS: The National Association of Postmasters of the United States.
(No response.)
CHAIRMAN OMAS: The National Association of Presort Mailers.
MR. HART: Good morning, Mr. Chairman and Commissioners. Henry Hart appearing on behalf of the National Association of Presort Mailers.
CHAIRMAN OMAS: Thank you.
National Newspaper Association.
MS. RUSH: Mr. Chairman, members of the Commission, good morning. Tonda Rush for National Newspaper Association.
CHAIRMAN OMAS: Thank you.
National Postal Mail Handlers Union.
MR. SLART: Good morning, Mr. Chairman. Bruce Slart on behalf of the National Postal Mail Handlers Union.
CHAIRMAN OMAS: Thank you.
National Postal Policy Council.
(No response.)
CHAIRMAN OMAS: Newspaper Association of America.
MR. BAKER: Good morning, Mr. Chairman and members of the Commission. Bill Baker appearing on behalf of the Newspaper Association of America.
CHAIRMAN OMAS: Office of the Consumer Advocate.
MS. DREIFUSS: Good morning. I'm Shelley Dreifuss. With me today are Rand Costich and Ken Richardson appearing on behalf of OCA.
CHAIRMAN OMAS: Thank you.
Parcel Shippers Association.
MR. MAY: Good morning. Tim May appearing on behalf of the Parcel Shippers Association.
CHAIRMAN OMAS: Pitney Bowes, Inc.
MR. LONGSTRETH: Good morning, Mr. Chairman and members of the Commission. John Longstreth, along with Michael Scanlon, appearing for Pitney Bowes.
CHAIRMAN OMAS: Thank you.
David B. Popkin.
(No response.)
CHAIRMAN OMAS: R.R. Donnelly & Sons Company.
MR. VOLNER: Good morning for the third and last time, I think, Mr. Chairman. Ian Volner, Rita Brickman, and Matt Field appearing on behalf of R.R. Donnelly & Sons.
CHAIRMAN OMAS: Thank you, Mr. Volner, and thank you for doing that.
Time Warner, Inc.
MR. KEEGAN: Good morning, Mr. Chairman and members of the Commission. Timothy Keegan, appearing with John M. Burzio, on behalf of Time Warner.