Proposed Rule2023-20630
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
September 26, 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 Five). 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 185 (Tuesday, September 26, 2023)</title>
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[Federal Register Volume 88, Number 185 (Tuesday, September 26, 2023)]
[Proposed Rules]
[Pages 65927-65928]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-20630]
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POSTAL REGULATORY COMMISSION
39 CFR Part 3050
[Docket No. RM2023-11; Order No. 6692]
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 Five).
This document informs the public of the filing, invites public comment,
and takes other administrative steps.
DATES: Comments are due: October 20, 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. Proposal Six
III. Notice and Comment
IV. Ordering Paragraphs
I. Introduction
On September 15, 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 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 15, 2023 (Petition).
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II. Proposal Six
Background. Proposal Six relates to modifications to the mail
processing and destination entry cost models for letter-shaped USPS
Marketing Mail pieces to account for recent price structure changes.
Petition, Proposal Six at 1. The cost models were last presented in
Docket No. ACR2022, Library References USPS-FY22-10 and USPS-FY22-13,
respectively. Id. If approved, the Postal Service intends to
incorporate the requested modifications in the preparation of its the
Fiscal Year (FY) 2023 Annual Compliance Review (ACR) and apply new cost
avoidances figures in its ``July 2024 Market Dominant price change.''
Id.
As part of Docket No. R2023-2, the Commission approved two new
workshare discounts for USPS Marketing Mail letter-shaped pieces
prepared on sectional center facility (SCF) pallets: (1) USPS Marketing
Mail Automation and Non-automation letters; and (2) USPS Marketing Mail
Carrier Route, High Density, High Density Plus and Saturation letters.
Id. at 1-2.
Proposal. Proposal Six presents four modifications to support the
new discounts: (1) the addition of tray sorting cost data to Library
Reference USPS-FY22-10, (2) the incorporation of a standalone tray
sorting cost avoidance estimate into Library Reference USPS-FY22-10,
(3) the reclassification of tray sorting cost pools in Library
Reference USPS-FY22-10, and (4) the removal of tray sorting costs from
Library Reference USPS-FY22-13. Id. at 2. The first three modifications
are made to the mail processing cost model and the fourth modification
is made to the destination entry cost model. Id. The Postal Service
provided a modified mail processing cost model in the Excel file
``USPS-
[[Page 65928]]
FY22-10.MM.PROP.Six'' attached to the Petition. Id.
Rationale and impact. As it relates to the modification to tray
sorting data, the Postal Service explains that the data cannot be
estimated in the current version of the cost model; therefore,
additional cost input data have been incorporated into the mail
processing cost model to estimate these costs. Id. at 2-3.
As it relates to the modification to standalone cost avoidance
estimates,\2\ the Postal Service notes that cost model input data,
including the new data described above, are used to estimate avoided
tray sorting costs and that estimate is included in the mail processing
cost model because SCF palletization is a form of presorting. Id. at 3.
The Postal Service explains that ``[t]his methodology is used because
detailed letter tray sorting data are not readily available in postal
data collection systems,'' preventing tray sorting costs from being
incorporated into the mail flow models and cost worksheets for all the
letter price categories. Id. at 3-4. The Postal Service also presents
an alternative to the methodology described above, by providing an
estimation of the per-piece costs incurred in one outgoing tray sorting
operation. Id. at 4.
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\2\ The Postal Service explains that the term ``standalone''
means the cost avoidance estimate is not used to develop Cost and
Revenue Analysis (CRA) adjustment factors and does not affect the
magnitude of the CRA proportional adjustment factor and that factor
is not applied to the cost avoidance estimate. Id. at 3.
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As it relates to the modification for tray sorting cost pools, the
Postal Service seeks to reclassify the ``MODS 1TRAYSRT'' cost pool and
the ``NDC TRAYSORT'' cost pool as ``worksharing-related fixed.'' Id. at
4-5. Although the Commission previously classified these cost pools as
``proportional,'' the Postal Service explains that the cost pools
should be ``worksharing-related fixed because SCF palletization results
in some tray sorting costs being avoided'' and the modification would
prevent tray sorting costs from effecting both the containerization and
presort costs estimates.\3\
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\3\ Id.; see Docket No. R2006-1, Opinion and Recommended
Decision Volume 1, March 14, 2007, at ]] 5159-5161.
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Finally, as it relates to the modification to destination entry
cost model tray costs, the Postal Service explains that, because a
standalone tray sorting cost avoidance estimate will now be included in
the letters mail processing cost model, letter tray sorting costs
should be removed from the USPS Marketing Mail destination entry cost
model. Petition, Proposal Six at 6. The Postal Service notes that it
would prevent tray sorting costs from affecting both the presort and
destination entry cost avoidance estimates. Id.
The impacts of these modifications are presented in Tables 1
through 3 of Proposal Six as well as Excel file
``IMPACT.PROP.SIX.xlsx.'' See id. at 6-9.
III. Notice and Comment
The Commission establishes Docket No. RM2023-11 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 20, 2023. 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. RM2023-11 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 15, 2023.
2. Comments by interested persons in this proceeding are due no
later than October 20, 2023.
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. 2023-20630 Filed 9-25-23; 8:45 am]
BILLING CODE 7710-FW-P
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