Proposed Rule2023-03533
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
February 21, 2023
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 88 Issue 34 (Tuesday, February 21, 2023)</title>
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[Federal Register Volume 88, Number 34 (Tuesday, February 21, 2023)]
[Proposed Rules]
[Pages 10493-10494]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-03533]
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POSTAL REGULATORY COMMISSION
39 CFR part 3050
[Docket No. RM2023-4; Order No. 6441]
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 10, 2023.
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. Proposal One
III. Notice and Comment
IV. Ordering Paragraphs
I. Introduction
On February 10, 2023, 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), February 10, 2023 (Petition).
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II. Proposal One
Background. In FY 2017, the Postal Service proposed to improve the
methodology used to calculate workshare discount passthrough
percentages for certain USPS Marketing Mail pieces.\2\ The Commission
approved Proposal Seven, which is the current methodology for
calculating dropship workshare discounts for those USPS Marketing Mail
pieces:
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\2\ Docket No. RM2017-11, Petition of the United States Postal
Service for the Initiation of a Proceeding to Consider Proposed
Changes in Analytical Principles (Proposal Seven), July 28, 2017.
\3\ Docket No. RM2017-11, Order on Analytical Principles Used in
Periodic Reporting (Proposal Seven), November 20, 2017, at 4, 8
(Order No. 4227). Subsequently, the Commission approved a slight
modification to the calculation and reporting of passthroughs for
USPS Marketing Mail. Docket No. RM2021-6, Order on Analytical
Principles Used in Periodic Reporting (Proposal Three), November 4,
2021 (Order No. 6032).
[GRAPHIC] [TIFF OMITTED] TP21FE23.000
[[Page 10494]]
The Postal \3\ Service explains that calculating dropship
passthrough percentages for some flat-shaped USPS Marketing Mail pieces
is different than for most other products because these USPS Marketing
Mail pieces have two available rates: (1) a per-piece rate for pieces
up to a 4-ounce breakpoint weight and (2) a combined rate, per piece
and per pound, for pieces heavier than the 4-ounce breakpoint weight.
Petition at 2-3. According to the Postal Service, in most cases, it
``can simply take the unit discount from the published benchmark price
given on the relevant pricing table . . . and divide by the avoided
cost.'' Id. at 3. In the case of these flat-shaped USPS Marketing Mail
pieces, however, the Postal Service asserts that this approach is
insufficient because the benchmark price depends on the weight of the
piece. Id. at 3-4.
Proposal. The Postal Service explains that in its next notice of
rate adjustment for Market Dominant products, it intends to revise its
pricing for flat-shaped USPS Marketing Mail pieces with piece and pound
price components by using pricing structure ``based primarily upon
pieces'' rather than one based upon pounds. Id. at 7. The Postal
Service states that, under this revision, every piece, regardless of
weight, will pay a fixed per-piece price that will vary based on entry.
Id. The Postal Service also explains that pieces heavier than the
breakpoint will pay a per-pound price for pounds above the breakpoint.
Id. at 7-8. Moreover, all dropship discounts will be ``piece-price
based[,]'' and pound prices will not vary by dropship entry point. Id.
at 8. The Postal Service asserts that ``[b]y replacing this price
structure with the new structure based upon pieces rather than pounds,
workshare discount passthrough percentages cannot vary with the
different weights of the pieces mailed because passthrough percentages
will be calculated independently of the volumes and weights of pieces
mailed.'' Id. at 10. Therefore, according to the Postal Service, ``the
new pricing paradigm removes the underlying cause of the problem where
it was difficult, and sometimes impossible, for the Postal Service to
make passthrough percentages for some flat-shaped [USPS] Marketing Mail
pieces comply'' with 39 CFR 3030.283 and 3030.284. Id.
Impact. The Postal Service asserts that its proposal ``will allow
the Postal Service to retire the current methodology for calculating
workshare discount passthrough percentages at issue here and use the
same methodology as it uses for most other products, dividing the per-
piece discount by the per-piece cost avoidance . . . .'' Id. at 8.
III. Notice and Comment
The Commission establishes Docket No. RM2023-4 for consideration of
matters raised by the Petition. More information on the Petition 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 Petition and Proposal One
no later than March 10, 2023. Pursuant to 39 U.S.C. 505, Christopher C.
Mohr 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. RM2023-4 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 February 10, 2023.
2. Comments by interested persons in this proceeding are due no
later than March 10, 2023.
3. Pursuant to 39 U.S.C. 505, the Commission appoints Christopher
C. Mohr 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. 2023-03533 Filed 2-17-23; 8:45 am]
BILLING CODE 7710-FW-P
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