Proposed Rule2024-16787
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
August 9, 2024
Issuing agencies
Postal Regulatory Commission
Abstract
The Commission is acknowledging a recent Postal Service filing requesting the Commission initiate a rulemaking proceeding to consider changes to analytical principles relating to periodic reports (Proposal Four). 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 89 Issue 154 (Friday, August 9, 2024)</title>
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[Federal Register Volume 89, Number 154 (Friday, August 9, 2024)]
[Proposed Rules]
[Pages 65301-65302]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-16787]
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POSTAL REGULATORY COMMISSION
39 CFR Part 3050
[Docket No. RM2024-10; Order No. 7309]
Periodic Reporting
AGENCY: Postal Regulatory Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Commission is acknowledging a recent Postal Service filing
requesting the Commission initiate a rulemaking proceeding to consider
changes to analytical principles relating to periodic reports (Proposal
Four). This document informs the public of the filing, invites public
comment, and takes other administrative steps.
DATES: Comments are due: August 27, 2024.
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. For Media Inquiries: Gail Adams, <a href="/cdn-cgi/l/email-protection#cd8aaca4a1e38ca9aca0be8dbdbfaee3aaa2bb"><span class="__cf_email__" data-cfemail="bcfbddd5d092fdd8ddd1cffccccedf92dbd3ca">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Proposal Four
III. Notice and Comment
IV. Ordering Paragraphs
I. Introduction
On July 24, 2024, 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 Four.
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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 Four), July 24, 2024 (Petition).
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II. Proposal Four
The Postal Service explains that Proposal Four has two components,
both aimed at improving estimates for First-Class Mail. Petition at 1.
The Postal Service explains that the first component would improve unit
mail processing cost estimates ``by expanding the use of Mail.dat
information'' while the second would improve workshare cost-avoidance
estimates by replacing the Non-automation Presort Cards Benchmark with
a new Non-automation Mixed automated area distribution center (AADC)
barcode (BC)-Benchmark. Petition, Proposal Four at 1.
A. Component One
Background. In terms of the first component, the Postal Service
states that it develops yearly mail processing unit cost estimates for
First-Class Mail using cost models and calibrations filed in the Annual
Compliance Review (ACR). Id. at 2. These estimates are based on a field
study conducted in January of 2005. Id. at 2-3. In contrast, the Postal
Service has used Mail.dat files and stratified inflation methods for
the cost estimates for other classes of mail. Id. at 3. The Postal
Service states that ``Mail.dat files were initially developed to
prepare a mailing virtually from a known address list and from user-
specified preparation parameters--piece length, height, thickness and
weight, bundle, and container minimums and maximums, etc.--that would
mimic the actual physical preparation.'' Id. The Postal Service
explains that, initially, Mail.dat files could not accurately reflect
First-Class Mail mailings; however, recently the mailing industry and
the Postal Service have developed a methodology to create accurate
Mail.dat files for First-Class Mail. Id. at 3-4.
Proposal. The Postal Service seeks to use Mail.dat files to
estimate the preparation characteristics of the universe of First-Class
Mail Presorted Letters/Postcards, thus improving the processing unit
cost estimates for those mailpieces. Id. at 4. The Postal Service
explains that, because Mail.dat files alone do not constitute a
``census'' encompassing all First-Class Mail Presorted Letters/
Postcards pieces, it also proposes to use a stratified inflation
methodology utilizing PostalOne! Mailing Statement data to infer the
characteristics of the entire population. Id. at 5-12.
Impact. The Postal Service explains that it ``measured and
evaluated the impacts of Component One by applying its procedures to
data from the ACR 2023 reporting period, inputting the resulting data
into downstream models (folders USPS-FY23-10 and USPS-FY23-11), and
examining the consequent changes in reported unit costs.'' Id. at 12.
The Postal Service states that the results are in accord with what
would be expected when transitioning from a model predicated on data
from 2005 to ``a procedure that is capable of incorporating much more
recent mail entry patterns.'' Id. at 14-16.
B. Component Two
Background. In terms of the second component, the Postal Service
states that it ``seeks to improve the precision of the barcoding cost
avoidance for First-Class Mail Automation Mixed AADC (MAADC) Presort
Cards by replacing the Nonautomation Presort Cards benchmark with a
proposed Nonautomation MAADC BC-Benchmark.'' Id. at 17. Specifically,
it explains that the most accurate measure of barcode cost avoidance is
the difference between a barcoded presorted rate category and a
similarly situated rate category that does not contain a barcode. Id.
However, the current benchmark for Automation MAADC Cards is Presorted
Cards, which the
[[Page 65302]]
Postal Service states is not analogous and therefore ``does not provide
the true value of the MAADC barcode.'' Id. at 18.
Proposal. In order to provide a benchmark that more accurately
measures the cost avoidance for Automation MAADC Cards, the Postal
Service seeks to create a new benchmark--the Non-automation MAADC BC-
Benchmark. Id. In order to do so, the Postal Service ``would make
changes to the First-Class Mail Letters cost avoidance model last filed
in Docket No. ACR2023 as folder USPS-FY23-10, while simultaneously
employing the Mail Characteristics Study (MCS) changes from Component
One,'' discussed above. Id.
Impact. According to the Postal Service, the changes suggested in
Proposal Four would result in a barcode cost avoidance of 0.617 cents
(compared to the negative cost avoidance of -0.110 cents resulting from
use of the current benchmark), which would ``enable the Postal Service
to set appropriate discounts for commercial mailers for pre-barcoding
First-Class Mail cards.'' Id. at 20. Further, the Postal Service
explains that its changes would reduce the avoided cost from $0.018 to
$0.006 for Automation Mixed AADC Cards and increase its passthrough
from 88.9 percent to 266.7 percent. Id.
III. Notice and Comment
The Commission establishes Docket No. RM2024-10 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
Four no later than August 27, 2024. Pursuant to 39 U.S.C. 505, Gregory
S. Stanton 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. RM2024-10 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 Four), filed July
24, 2024.
2. Comments by interested persons in this proceeding are due no
later than August 27, 2024.
3. Pursuant to 39 U.S.C. 505, the Commission appoints Gregory S.
Stanton 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 the publication of this Order in
the Federal Register.
By the Commission.
Jennie L. Jbara,
Primary Certifying Official.
[FR Doc. 2024-16787 Filed 8-8-24; 8:45 am]
BILLING CODE 7710-FW-P
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