Proposed Rule2022-17417
Application for Waiver of Workshare Discount
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
August 15, 2022
Issuing agencies
Postal Regulatory Commission
Abstract
The Commission is acknowledging a Postal Service application for waiver pursuant to Commission regulations as it relates to a workshare discount. This document informs the public of the filing, invites public comment, and takes other administrative steps.
Full Text
<html>
<head>
<title>Federal Register, Volume 87 Issue 156 (Monday, August 15, 2022)</title>
</head>
<body><pre>
[Federal Register Volume 87, Number 156 (Monday, August 15, 2022)]
[Proposed Rules]
[Pages 50027-50028]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-17417]
=======================================================================
-----------------------------------------------------------------------
POSTAL REGULATORY COMMISSION
39 CFR Part 3030
[Docket No. RM2022-12; Order No. 6244]
Application for Waiver of Workshare Discount
AGENCY: Postal Regulatory Commission.
ACTION: Application for waiver; comment request.
-----------------------------------------------------------------------
SUMMARY: The Commission is acknowledging a Postal Service application
for waiver pursuant to Commission regulations as it relates to a
workshare discount. This document informs the public of the filing,
invites public comment, and takes other administrative steps.
DATES: Comments are due: August 16, 2022.
ADDRESSES: Submit comments electronically via the Commission's Filing
Online system at <a href="https://www.prc.gov">https://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. Background
III. Application for Waiver
IV. Notice and Comment
V. Ordering Paragraphs
I. Introduction
On August 8, 2022, the Postal Service filed an application for
waiver pursuant to 39 CFR 3030.286 requesting that the Commission waive
the applicability of 39 CFR 3030.283 for the workshare discount
associated with USPS Marketing Mail Carrier Route Flats dropshipped at
the Destination Delivery Unit (DDU) in the next rate adjustment
filing.\1\
---------------------------------------------------------------------------
\1\ United States Postal Service Application for a Waiver Under
39 CFR 3030.286, August 8, 2022 (Application). The Postal Service's
Application is accompanied by a Statement in Support of Waiver
Application (Supporting Statement).
---------------------------------------------------------------------------
II. Background
Pursuant to 39 CFR 3030.283, a workshare discount proposed by the
Postal Service in any rate adjustment filing that exceeds the cost
avoided must either be associated with a new postal service, a change
to an existing postal service, or a new workshare initiative; be at
least a 20 percent decrease from the existing workshare discount; or
provided in connection with a subclass of mail, consisting exclusively
of mail matter of educational, cultural, scientific, or informational
value (39 U.S.C. 3622(e)(2)(C)) and is in compliance with 39 CFR
3030.285(c).\2\
---------------------------------------------------------------------------
\2\ See 39 CFR 3030.283. The relationship between workshare
discounts and avoided costs is usually expressed as a percentage
called a passthrough, which is calculated by dividing the discount
by the avoided cost. Workshare discounts with passthroughs above 100
percent are considered excessive workshare discounts.
---------------------------------------------------------------------------
If the proposed workshare discount does not comply with the
limitations of 39 CFR 3030.283, the Postal Service must file an
application for waiver pursuant to 39 CFR 3030.286. See 39 CFR
3030.283(d); 39 CFR 3030.286. The Postal Service's waiver application
must be supported by a preponderance of the evidence and demonstrate
that a waiver from the limitations imposed by 39 CFR 3030.283 should be
granted. See 39 CFR 3030.286(b). The Postal Service must include the
grounds for a waiver, including all relevant supporting analysis; the
length of time the waiver will be necessary; for each subsequent rate
adjustment filing planned to occur during the length of time for which
a waiver is sought, a representation of the proposed minimum amount of
the change to the workshare discount; and any other relevant
information. See also 39 CFR 3030.286(c)(1) through (3) and (8).
Grounds for waiver for an excessive workshare discount and the required
accompanying information are set forth in 39 CFR 3030.286(c)(4) through
(7).\3\
---------------------------------------------------------------------------
\3\ Grounds for waiver for an excessive cost workshare discount
relate to rate shock; the impediment of efficient postal operations;
a loss of volume in the affected category of mail and a reduction in
the aggregate contribution to the Postal Service's institutional
costs from the mail that is subject to the discount; and non-
compensatory products. See 39 CFR 3030.286(c)(4) through (7).
---------------------------------------------------------------------------
III. Application for Waiver
The Postal Service requests a waiver of 39 CFR 3030.283 for the
workshare discount associated with USPS Marketing Mail Carrier Route
Flats dropshipped at the DDU in the next rate adjustment proceeding to
be filed no sooner than October 7, 2022. Application at 1. The Postal
Service states that the methodology used in calculating passthroughs
for USPS Marketing Mail flat-shaped pieces results in volatile
passthrough percentages, making compliance with 39 CFR 3030.283
difficult. Application, Supporting Statement at 3. It further states
that, to overcome this volatility and comply with 39 CFR 3030.283,
would require irrational pricing. Id. at 6-7. The Postal Service
illustrates this issue in a worksheet that accompanies the Supporting
Statement. Id. at 7; see also Excel file ``RM2022-12 Waiver.xlsx.''
The Postal Service maintains that its waiver request should be
granted for three reasons. First, the Postal Service intends to ``seek
approval of prices that will minimize non-compliance and its
consequences'' and would be limited to the passthrough for USPS
Marketing Mail Carrier Route Flats pieces dropshipped at the DDU.
Application, Supporting Statement at 8. Furthermore, it states that,
because the volume of these pieces is relatively low, ``the cost of [ ]
non-compliance is only approximately, $200,000. . .and that amount will
inure to the benefit of the mailers in any event.'' Id. Second, the
Postal Service maintains that compliance with 39 CFR 3030.283 would
require irrational pricing due to ``happenstance,'' and not ``the
result of any failure of effort, planning, or implementation by the
Postal Service.'' Id. at 8-9. Finally, the Postal Service believes
additional waivers of this nature for USPS Marketing Mail Flats will
not be necessary beyond the next rate adjustment proceeding. Id. at 9.
This is because the Postal Service is ``investigating structural
changes in [the] pricing of flat- and parcel-shaped pieces leading to a
simplified methodology in the calculation of passthroughs.'' Id.
[[Page 50028]]
For these reasons, the Postal Service seeks to set the workshare
discount associated with USPS Marketing Mail Carrier Route Flats pieces
dropshipped at the DDU above the avoided costs such that the workshare
discount's passthrough is 105.0 percent. Id. at 8.
IV. Notice and Comment
The Commission establishes Docket No. RM2022-12 for consideration
of matters raised by the Application. More information on the
Application may be accessed via the Commission's website at <a href="https://www.prc.gov">https://www.prc.gov</a>. Interested persons may submit comments on the Application
no later than August 16, 2022. 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.
V. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket No. RM2022-12 for
consideration of the matters raised by the United States Postal Service
Application for a Waiver Under 39 CFR 3030.286, filed August 8, 2022.
2. Comments by interested persons in this proceeding are due no
later than August 16, 2022.
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.
Jennie L. Jbara,
Alternate Certifying Officer.
[FR Doc. 2022-17417 Filed 8-12-22; 8:45 am]
BILLING CODE 7710-FW-P
</pre></body>
</html>Indexed from Federal Register on August 15, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.