Proposed Rule2022-00654
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
January 14, 2022
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 One). 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 87 Issue 10 (Friday, January 14, 2022)</title>
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[Federal Register Volume 87, Number 10 (Friday, January 14, 2022)]
[Proposed Rules]
[Pages 2384-2385]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-00654]
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POSTAL REGULATORY COMMISSION
39 CFR Part 3050
[Docket No. RM2022-3; Order No. 6090]
Periodic Reporting
AGENCY: Postal Regulatory Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: 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 One). This
document informs the public of the filing, invites public comment, and
takes other administrative steps.
DATES:
Comments are due: March 14, 2022.
Reply comments are due: March 28, 2022.
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 One
III. Notice and Comment
IV. Ordering Paragraphs
I. Introduction
On January 5, 2022, 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 One.
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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 One), January 5, 2022 (Petition).
The Petition was accompanied by a study supporting its proposal. See
Michael D. Bradley (Bradley), On the Estimation of a Top-Down Model
for City Carrier Street Time *, January 5, 2022. The Postal Service
also filed a notice of filing of public and non-public materials
relating to Proposal One. Notice of Filing of USPS-RM2022-3-1 and
USPS-RM2022-3-NP1 and Application for Nonpublic Treatment, January
5, 2022.
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II. Proposal One
Background. In Docket No. RM2015-7,\2\ the Postal Service proposed,
and the Commission accepted, an approach to estimating variabilities
for city carrier street time that relied upon three separate
econometric equations, one for letters and flats, one for in-receptacle
parcels, and one for deviation parcels and accounts. Petition, Proposal
One at 1. The Commission directed the Postal Service to undertake an
effort to investigate what data would be needed to estimate a unified,
or ``top-down,'' model. Id. Subsequent to Docket No. RM2015-7, the
Commission opened a public inquiry case, Docket No. PI2017-1,\3\ to
follow the Postal Service's progress in updating its data capabilities
and modeling efforts for city carrier street time and specified the
type and structure of the data set that would be appropriate to
estimate a top-down model. Id. at 2. In response to the Commission's
directives, the Postal Service compiled the appropriate data,
investigated alternative methods of estimating a top-down model, and
specified a model that includes an estimation of new variabilities for
city carrier, letter route, and street time. Id. at 2-3.
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\2\ See Docket No. RM2015-7, Order Approving Analytical
Principles Used in Periodic Reporting (Proposal Thirteen), October
29, 2015, at 66 (Order No. 2792).
\3\ See Docket No. PI2017-1, Interim Order, November 2, 2018, at
16 (Order No. 4869).
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Proposal. Proposal One would update the methodology for calculating
attributable city carrier, letter route, street time costs by employing
an overall top-down model that replies upon expanded operational
carrier data. Id. at 1, 3. The Postal Service proposes that the new
top-down study would improve the previous analysis of letter route
street time by making use of ongoing operation data systems;
incorporating seasonality effects and controls for day-of-week effects;
including new characteristic variables that help control for non-volume
variations in hours across ZIP Codes; relying upon a new econometric
technique, called a correlated random effects model, that controls for
unobserved differences across ZIP Codes while explicitly recognizing
those differences are correlated with volume; taking a holistic
approach to analyzing city street time; and producing marginal delivery
and collection times that comport with current carrier street time
operational practice. Id. at 3-4.
The overall levels of variabilities produced by the top-down model
is lower than the current model because a
[[Page 2385]]
reduction in the variabilities for the volume types associated with
market dominant letter and flat mail is only partially offset by an
increase in the parcel variabilities. The overall changes in the
variabilities result in lower costs for letters and flats and higher
costs for parcels. Id. at 6.
Impact. The following table presents the impact of Proposal One on
city carrier street unit costs, including indirect costs.
Table 1--City Carrier Costs Including Indirect Costs
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Current unit Change in city % Change in
Product city carrier New unit city carrier unit city carrier
costs carrier costs costs unit costs
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Total First-Class Mail......................... $0.063 $0.041 -$0.022 -34.98
Total USPS Marketing Mail...................... 0.063 0.043 -0.020 -32.28
Total Periodicals.............................. 0.145 0.113 -0.033 -22.58
Bound Printed Matter Flats..................... 0.216 0.173 -0.043 -19.90
Bound Printed Matter Parcels................... 0.365 0.452 0.088 24.02
Media/Library Mail............................. 0.421 0.506 0.085 20.07
Total Package Services......................... 0.324 0.365 0.041 12.74
Total Domestic Market Dominant Mail............ 0.067 0.046 -0.021 -31.63
Total Competitive Mail and Services............ 0.453 0.528 0.075 16.52
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Source: Excel file ``FY21 Proposal One Cost Impact.xlsx,'' tab ``Unit Costs.''
Under the new top-down model, the unit costs for market dominant
products fall while the unit costs for competitive products rise,
reflecting the changes in variabilities. Id. at 7.
III. Notice and Comment
The Commission establishes Docket No. RM2022-3 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 One no later
than March 14, 2022. Reply comments on the Petition and Proposal One
are due no later than March 28, 2022. Pursuant to 39 U.S.C. 505, Philip
T. Abraham is designated as 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. RM2022-3 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 One), filed January 5, 2022.
2. Comments by interested persons in this proceeding are due no
later than March 14, 2022. Reply comments on the Petition and Proposal
One are due no later than March 28, 2022.
3. Pursuant to 39 U.S.C. 505, the Commission appoints Philip T.
Abraham to serve as 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. 2022-00654 Filed 1-13-22; 8:45 am]
BILLING CODE 7710-FW-P
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