9. PosteCS Complaint Case: Docket No. C99-1
In October 1998, United Parcel Service (UPS) filed a complaint with the Postal Rate Commission, pursuant to 39 U.S.C. 3662, concerning the Postal Service’s provision of PosteCS, a wholly electronic, Internet-based document service designed to support secure electronic communications. The fundamental basis for the complaint was the allegation that the Postal Service is offering PosteCS to the public without having first submitted to the Commission a request for a recommended decision on classification provisions and rates associated with this service. The complaint further alleged that provision of PosteCS at no charge on an introductory basis is contrary to the pricing standard of the Postal Reorganization Act. Finally, the complaint alleged that the service constituted a “nationwide change in service” for which an advisory opinion must be requested under that Act, pursuant to 39 U.S.C. 3661.

The Postal Service moved to dismiss the complaint. In its motion to dismiss, the Postal Service maintained that the Commission does not have subject matter jurisdiction to entertain the question of whether PosteCS is a “postal” service. Even if the Commission had jurisdiction to consider the complaint, the Postal Service asserted that PosteCS is plainly not a “postal” service for purposes of the Commission’s jurisdiction, according to the definitions of that term put forth by the courts, the Commission, and the Governors of the Postal Service. On May 3, 1999, the Commission issued an order denying the Postal Service’s motion to dismiss and ordering further proceedings on the question of whether PosteCS is a “postal” service for purposes of the Commission’s rate and classification jurisdiction. Throughout 2000 and 2001, the Commission addressed disputes related to discovery. On November 9, 2001, the Presiding Officer issued a ruling granting a motion by UPS to suspend proceedings in the complaint case, pending the conclusion of the omnibus rate case, Docket No. R2001-1.