United Parcel Service of America - Page 97




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          credible evidence that the various Federal and State regulatory             
          agencies would have denied a rate increase had it retained the              
          EVC income.  Petitioner's primary consideration in setting rates            
          was fairness and competition, according to its former executives.           
          Indeed, the testimony of petitioner's former executives indicates           
          that they could have sought greater rate increases under ZORF               
          than what was requested and that they were not concerned about              
          maximizing rates.  In November 1984, petitioner sought and                  
          obtained from the ICC and various State regulatory bodies a 5.45-           
          percent rate increase effective January 1, 1985.  Petitioner's              
          rate increase of 5.45 percent was 4.55 percent less than the                
          maximum increase allowed by ZORF.                                           





               40(...continued)                                                       
               that such rate is unreasonable on the basis that it is                 
               too high or too low if--,                                              
                    (A) the carrier notifies the Commission that it                   
               wishes to have the rate considered pursuant to this                    
               subsection; and                                                        
                    (B) the aggregate of increases and decreases in                   
               any such rate is not more than 10 percent above the                    
               rate in effect one year prior to the effective date of                 
               the proposed rate, nor more than 10 percent below the                  
               lesser of the rate in effect on July 1, 1980 (or, in                   
               the case of any rate which a carrier first establishes                 
               after July 1, 1980, for a service not provided by such                 
               carrier on such date, such rate on the date such rate                  
               first becomes effective), or the rate in effect one                    
               year prior to the effective date of the proposed rate.                 




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