Notice2023-00189
FY 2022 Annual Compliance Report
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 10, 2023
Issuing agencies
Postal Regulatory Commission
Abstract
The Postal Service has filed an Annual Compliance Report on the costs, revenues, rates, and quality of service associated with its products in fiscal year 2022. Within 90 days, the Commission must evaluate that information and issue its determination as to whether rates were compliant and whether service standards in effect were met. To assist in this, the Commission seeks public comments on the Postal Service's Annual Compliance Report.
Full Text
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<title>Federal Register, Volume 88 Issue 6 (Tuesday, January 10, 2023)</title>
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[Federal Register Volume 88, Number 6 (Tuesday, January 10, 2023)]
[Notices]
[Pages 1436-1438]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-00189]
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POSTAL REGULATORY COMMISSION
[Docket No. ACR2022; Order No. 6396]
FY 2022 Annual Compliance Report
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
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SUMMARY: The Postal Service has filed an Annual Compliance Report on
the costs, revenues, rates, and quality of service associated with its
products in fiscal year 2022. Within 90 days, the Commission must
evaluate that information and issue its determination as to whether
rates were compliant and whether service standards in effect were met.
To assist in this, the Commission seeks public comments on the Postal
Service's Annual Compliance Report.
DATES: Comments are due: January 31, 2023. Reply Comments are due:
February 14, 2023.
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. Overview of the Postal Service's FY 2022 ACR
III. Procedural Steps
IV. Ordering Paragraphs
[[Page 1437]]
I. Introduction
On December 29, 2022, the United States Postal Service (Postal
Service) filed with the Commission its Annual Compliance Report (ACR)
for fiscal year (FY) 2022, pursuant to 39 U.S.C. 3652.\1\ Section 3652
requires submission of data and information on the costs, revenues,
rates, and quality of service associated with postal products within 90
days of the closing of each fiscal year. In conformance with other
statutory provisions and Commission rules, the ACR includes the Postal
Service's FY 2022 Comprehensive Statement on Postal Operations, its FY
2022 annual report to the Secretary of the Treasury on the Competitive
Products Fund, and certain related Competitive Products Fund material.
See respectively, 39 U.S.C. 3652(g), 39 U.S.C. 2011(i), and 39 CFR
3060.20-23; FY 2022 ACR at 4-5. In line with past practice, some of the
material in the FY 2022 ACR appears in non-public annexes.
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\1\ United States Postal Service FY 2022 Annual Compliance
Report, December 29, 2022, at 1 (FY 2022 ACR). Public portions of
the Postal Service's filing are available on the Commission's
website at <a href="http://www.prc.gov">http://www.prc.gov</a>.
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The filing begins a review process that results in an Annual
Compliance Determination (ACD) issued by the Commission to determine
whether Postal Service products offered during FY 2022 were in
compliance with applicable title 39 requirements.
II. Overview of the Postal Service's FY 2022 ACR
Contents of the filing. The Postal Service's FY 2022 ACR consists
of a 104-page narrative; extensive additional material appended as
separate folders and identified in Attachment One; and an application
for non-public treatment of certain materials, along with supporting
rationale, filed as Attachment Two. The filing also includes the
Comprehensive Statement,\2\ Report to the Secretary of the Treasury,
and information on the Competitive Products Fund filed in response to
Commission rules. This material has been filed electronically with the
Commission.
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\2\ In years prior to 2013, the Commission reviewed the Postal
Service's reports prepared pursuant to 39 U.S.C. 2803 and 39 U.S.C.
2804 (filed as the Comprehensive Statement by the Postal Service) in
its ACD. However, as it has for the past several years, the
Commission intends to issue a separate notice soliciting comments on
the Comprehensive Statement and provide its related analysis in a
separate report from the ACD.
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Scope of the filing. The material appended to the narrative
consists of: (1) domestic product costing material filed on an annual
basis summarized in the Cost and Revenue Analysis (CRA); (2) comparable
international costing material summarized in the International Cost and
Revenue Analysis (ICRA); (3) worksharing-related cost studies; and (4)
billing determinant information for both domestic and international
mail. FY 2022 ACR at 4. Inclusion of these four data sets is consistent
with the Postal Service's past ACR practices. As with past ACRs, the
Postal Service has split certain materials into public and non-public
versions. Id.
``Roadmap'' document. A roadmap to the FY 2022 ACR can be found in
Library Reference USPS-FY22-9. Id. at 5. This document provides brief
descriptions of the materials submitted, as well as the flow of inputs
and outputs among them; a discussion of differences in methodology
relative to Commission methodologies in last year's ACD; and a list of
special studies and a discussion of obsolescence, as required by
Commission rule 39 CFR 3050.12. Id.
Methodology. The Postal Service states that it has adhered to the
methodologies historically used by the Commission subject to changes
identified and discussed in Library Reference USPS-FY22-9 and in
prefaces accompanying the appended folders. Id. at 5-6.
Market Dominant product-by-product costs, revenues, and volumes.
Comprehensive cost, revenue, and volume data for all Market Dominant
products of general applicability are shown directly in the FY 2022 CRA
or ICRA. Id. at 9.
The FY 2022 ACR includes a discussion by class of each Market
Dominant product, including costs, revenues, and volumes, workshare
discounts, and passthroughs responsive to 39 U.S.C. 3652(b), and FY
2022 promotions. Id. at 9-47.
In response to the Commission's FY 2010 ACD directives,\3\ the
Postal Service states that it is providing information regarding its
progress in increasing USPS Marketing Mail Flats (Flats) prices,
implementing operational changes aimed at lowering flats costs,
effectuating costing methodology improvements, and phasing out the
subsidy in Flats. FY 2022 ACR at 32. In Docket No. RM2018-1, the
Commission codified and expanded the first directive as rule
3050.50(f), which applies to all flat-shaped mail.\4\ Accordingly, the
Postal Service states that the information required by rule 3050.50(f)
is provided in Library Reference USPS-FY2022-45, noting that the
section titled ``Costing Methodology Changes and Subsidy of the Flats
Product'' responds to the second and third directives. FY 2022 ACR at
35-38. In addition, the Postal Service presented its schedule of above-
average price increases for Flats. Id. at 33-34.
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\3\ Docket No. ACR2010, Annual Compliance Determination, March
29, 2011, at 106-107 (FY 2010 ACD).
\4\ Id. at 35; see Docket No. RM2018-1, Order Adopting Final
Rules on Reporting Requirements Related to Flats, May 8, 2019 (Order
No. 5086).
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Service performance. The Postal Service notes that the Commission
issued rules on periodic reporting of service performance measurement
and customer satisfaction in FY 2010. Id. at 48. Responsive information
appears in Library Reference USPS-FY22-29. Id.
Customer satisfaction. The FY 2022 ACR discusses the Postal
Service's approach for measuring customer experience and satisfaction;
discusses survey modifications; describes the methodology; presents a
table with survey results; compares the results from FY 2021 to FY
2022; and provides information regarding consumer access to postal
services. Id. at 56-89.
Competitive products. The FY 2022 ACR provides costs, revenues, and
volumes for Competitive products of general applicability in the FY
2022 CRA or ICRA. For Competitive products not of general
applicability, data are provided in non-public Library References USPS-
FY22-NP2 and USPS-FY22-NP27. Id. at 90. The FY 2022 ACR also addresses
the Competitive product pricing standards of 39 U.S.C. 3633. Id. at 90-
100.
Market tests; nonpostal services. The Postal Service discusses four
market dominant market tests conducted during FY 2022 as well as
nonpostal services. Id. at 101-102.
III. Procedural Steps
Statutory requirements. Section 3653 of title 39 requires the
Commission to provide interested persons with an opportunity to comment
on the ACR and to appoint an officer of the Commission (Public
Representative) to represent the interests of the general public. The
Commission hereby solicits public comment on the Postal Service's FY
2022 ACR and on whether any rates or fees in effect during FY 2022 (for
products individually or collectively) were not in compliance with
applicable provisions of chapter 36 of title 39 or Commission
regulations promulgated thereunder. Commenters addressing Market
Dominant products are referred in particular to the applicable
requirements (39 U.S.C. 3622(d) and (e) and 39 U.S.C. 3626); objectives
(39 U.S.C. 3622(b)); and factors (39 U.S.C. 3622(c)). Commenters
addressing
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Competitive products are referred to 39 U.S.C. 3633.
The Commission also invites public comment on the cost coverage
matters the Postal Service addresses in its filing; service performance
results; levels of customer satisfaction achieved; and such other
matters that may be relevant to the Commission's review.
Access to filing. The Commission has posted the publicly available
portions of the FY 2022 ACR on its website at <a href="http://www.prc.gov">http://www.prc.gov</a>.
Comment deadlines. Comments by interested persons are due on or
before January 31, 2023. Reply comments are due on or before February
14, 2023. The Commission, upon completion of its review of the FY 2022
ACR, comments, and other data and information submitted in this
proceeding, will issue its ACD.
Public Representative. Kenneth R. Moeller is designated to serve as
the Public Representative to represent the interests of the general
public in this proceeding. Neither the Public Representative nor any
additional persons assigned to assist him shall participate in or
advise as to any Commission decision in this proceeding other than in
his or her designated capacity.
IV. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket No. ACR2022 to consider
matters raised by the United States Postal Service's FY 2022 Annual
Compliance Report.
2. Pursuant to 39 U.S.C. 505, the Commission appoints Kenneth R.
Moeller as an officer of the Commission (Public Representative) in this
proceeding to represent the interests of the general public.
3. Comments on the United States Postal Service's FY 2022 Annual
Compliance Report to the Commission are due on or before January 31,
2023.
4. Reply comments are due on or before February 14, 2023.
5. The Secretary shall arrange for publication of this Order in the
Federal Register.
By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2023-00189 Filed 1-9-23; 8:45 am]
BILLING CODE 7710-FW-P
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