Proposed Rule2021-21757
Periodic Reporting
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 6, 2021
Issuing agencies
Postal Regulatory Commission
Abstract
The Commission is acknowledging a recent filing requesting the Commission initiate a rulemaking proceeding to consider changes to analytical principles relating to periodic reports (Proposal Six). This document informs the public of the filing, invites public comment, and takes other administrative steps.
Full Text
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<title>Federal Register, Volume 86 Issue 191 (Wednesday, October 6, 2021)</title>
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[Federal Register Volume 86, Number 191 (Wednesday, October 6, 2021)]
[Proposed Rules]
[Pages 55548-55549]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-21757]
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POSTAL REGULATORY COMMISSION
39 CFR Part 3050
[Docket No. RM2021-9; Order No. 5992]
Periodic Reporting
AGENCY: Postal Regulatory Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Commission is acknowledging a recent filing requesting
[[Page 55549]]
the Commission initiate a rulemaking proceeding to consider changes to
analytical principles relating to periodic reports (Proposal Six). This
document informs the public of the filing, invites public comment, and
takes other administrative steps.
DATES: Comments are due: October 28, 2021.
ADDRESSES: Submit comments electronically via the Commission's Filing
Online system at <a href="http://www.prc.gov">http://www.prc.gov</a>. Those who cannot submit comments
electronically should contact the person identified in the FOR FURTHER
INFORMATION CONTACT section by telephone for advice on filing
alternatives.
FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at
202-789-6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Proposal Six
III. Notice and Comment
IV. Ordering Paragraphs
I. Introduction
On September 28, 2021, the Postal Service filed a petition pursuant
to 39 CFR 3050.11 requesting that the Commission initiate a rulemaking
proceeding to consider changes to analytical principles relating to
periodic reports.\1\ The Petition identifies the proposed analytical
changes filed in this docket as Proposal Six.
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\1\ Petition of the United States Postal Service for the
Initiation of a Proceeding to Consider Proposed Changes in
Analytical Principles (Proposal Six), September 28, 2021 (Petition).
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II. Proposal Six
Background. The Postal Service estimates the mail processing costs
avoided due to mailer workshare activities for First-Class Mail presort
letters and cards using the First-Class Mail letters mail processing
cost model. Petition, Proposal Six at 1. The Postal Service determines
the avoided costs for each workshare discount through modeling of the
typical mail processing flow of First-Class Mail presort letters and
cards by rate category. Id.
Historically, the Postal Service has offered a single price for
First-Class Mail nonautomation presort categories. Id. However, in
Docket No. R2021-2, the Postal Service restructured its pricing for the
First-Class Mail presort categories, creating separate prices for
Nonmachinable 5-Digit letters, Nonmachinable 3-Digit Letters,
Nonmachinable mixed area distribution center (MADC) Letters,
Nonautomation Machinable automated area distribution center (AADC)
Letters, and Nonautomation Machinable mixed automation area
distribution center (MAADC) Letters.\2\
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\2\ Docket No. R2021-2, United States Postal Service Notice of
Market-Dominant Price Change, May 28, 2021, at 8-9.
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The Commission accepted the proposed changes to the Mail
Classification Schedule associated with this new rate structure but
determined that the Metered Letters benchmark was not appropriate for
determining the costs avoided by the new Nonautomation Machinable
Letters Mixed AADC and Nonmachinable Letters Mixed area distribution
center (ADC) workshare discounts.\3\ For this reason, the Commission
directed the Postal Service develop a methodology to disaggregate the
Metered Letters benchmark into the machinable and nonmachinable
components within 90 days of Order No. 5937. Id.
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\3\ Docket No. R2021-2, Order on Price Adjustments for First-
Class Mail, USPS Marketing Mail, Periodicals, Package Services, and
Special Services Products and Related Mail Classification Changes,
July 19, 2021, at 82 (Order No. 5937).
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Proposal. With Proposal Six, the Postal Service seeks to revise the
First-Class Mail letters mail processing cost model to disaggregate
metered mail into machinable and nonmachinable categories. Petition,
Proposal Six at 2. Citing data limitations, the Postal Service proposes
to disaggregate the costs between these pricing categories through
modeling. Id. at 3. The Postal Service notes that ``[t]he same
methodology that is used to disaggregate [In-Office Cost System]-
derived mail processing unit costs for First-Class presorted letter
costs by rate category is used to disaggregate metered mail letter
costs by machinability in this proposal.'' Id. The Postal Service's
adjusted model is included with the Petition. See Excel file USPS-FY20-
10 FCM Letters Prop 6.xlsx.
Impact. The impacts of Proposal Six are outlined in Table 1 and
Table 2 of the proposal. Petition, Proposal Six at 4-5. The Postal
Service estimates that the worksharing related unit costs will be
13.123 cents for Machinable Metered Letters and 44.824 cents for
Nonmachinable Metered Letters. Id. at 4. Avoided costs will decrease
$0.001 for Automation Mixed AADC Letters and $0.002 for Nonautomation
Machinable Mixed AADC Letters. Id. at 5. The Postal Service estimates
$0.101 in avoided costs for Nonautomation Nonmachinable Mixed ADC
Letters. Id.
III. Notice and Comment
The Commission establishes Docket No. RM2021-9 for consideration of
matters raised by the Petition. More information on the Petition may be
accessed via the Commission's website at <a href="http://www.prc.gov">http://www.prc.gov</a>. Interested
persons may submit comments on the Petition and Proposal Six no later
than October 28, 2021. Pursuant to 39 U.S.C. 505, Katalin K. Clendenin
is designated as an officer of the Commission (Public Representative)
to represent the interests of the general public in this proceeding.
IV. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket No. RM2021-9 for consideration
of the matters raised by the Petition of the United States Postal
Service for the Initiation of a Proceeding to Consider Proposed Changes
in Analytical Principles (Proposal Six), filed September 28, 2021.
2. Comments by interested persons in this proceeding are due no
later than October 28, 2021.
3. Pursuant to 39 U.S.C. 505, the Commission appoints Katalin K.
Clendenin to serve as an officer of the Commission (Public
Representative) to represent the interests of the general public in
this docket.
4. The Secretary shall arrange for publication of this order in the
Federal Register.
By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2021-21757 Filed 10-5-21; 8:45 am]
BILLING CODE 7710-FW-P
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