[Federal Register Volume 74, Number 172 (Tuesday, September 8, 2009)]
[Proposed Rules]
[Page 46044]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-21476]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3060

[Docket No. RM2009-9; Order No. 287]


Competitive Postal Products

AGENCY: Postal Regulatory Commission.

ACTION: Proposed rule.

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SUMMARY: This document announces a proposed rulemaking in response to a 
recent Postal Service filing of a proposed methodology for the 
allocation of assets and liabilities in theoretical competitive 
enterprise.

DATES: Submit comments on or before October 23, 2009. Submit reply 
comments on or before November 23, 2009.

ADDRESSES: Submit comments electronically via the Commission's 
electronic Filing Online system at http://www.prc.gov.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
at 202-789-6820 or [email protected].

SUPPLEMENTARY INFORMATION: Regulatory History, 73 FR 79256 (December 
24, 2008).
    In PRC Order No. 151, which established financial accounting 
practices and tax rules for competitive products, the Commission 
directed the Postal Service to develop the assets and liabilities of 
the theoretical competitive products enterprise by identifying all 
asset and liability accounts within its Chart of Accounts used solely 
for the provision of (a) competitive products or (b) market dominant 
products, and for those not identified with either, to submit for 
Commission approval a proposed methodology detailing how each asset and 
liability account identified in the Chart of Accounts shall be 
allocated to the theoretical competitive products enterprise.\1\ See 39 
CFR 3060.12 and 3060.13; see also Order No. 151 at 17-18.
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    \1\ See Docket No. RM2008-5, PRC Order No. 151, Order 
Establishing Tax Rules and Accounting Practices for Competitive 
Products, December 18, 2009 (Order No. 151).
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    In satisfaction of that requirement, on July 23, 2009, the Postal 
Service filed a proposed methodology for the allocation of assets and 
liabilities to the theoretical competitive enterprise.\2\ The Postal 
Service avers that, with ``few exceptions,'' the proposed methodology 
tracks that used by the Commission in PRC-LR-1 in Docket No. RM2008-5. 
Id. at 1-2. The differences concern the following entries:
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    \2\ Notice of United States Postal Service Regarding Proposed 
Methodology for the Allocation of Assets and Liabilities to 
Competitive Products, July 23, 2009 (Notice).
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    1. Asset: Supplies, Advances, and Prepayments--the Postal Service 
allocation is based on total revenues; the Commission did not propose 
an allocation;
    2. Liability: Payables and Accrued Expenses--the Postal Service 
allocation is based on total revenues; the Commission did not propose 
an allocation;
    3. Liability: Customer Deposit Accounts--the Postal Service 
allocation is based on total revenues; the Commission allocation is 
limited to a specific account, Expedited Mail Advance Deposit;
    4. Liability: Outstanding Postal Money Orders--the Postal Service 
allocation is based on actual Outstanding International Money Orders; 
the Commission did not propose an allocation; and
    5. Liability: Deferred Gains on Sales of Property--the Postal 
Service did not propose an allocation; the Commission allocation is 
based on Building Depreciation Expenses.
    The Notice, which is available on the Commission's Web site, http://www.prc.gov, includes a spreadsheet showing the Commission's and the 
Postal Service's proposed allocation procedures. The Notice also 
provides rationales for the Postal Service's proposals.
    Interested persons are invited to comment on the Postal Service's 
proposed methodology and may propose alternative methodologies. 
Comments are due no later than 45 days after publication of this order 
in the Federal Register. Reply comments are due no later than 75 days 
after publication of this order in the Federal Register.
    The Commission designates Patricia A. Gallagher to represent the 
interests of the general public in this proceeding.
    It is ordered:
    1. The Commission establishes Docket No. RM2009-9 to consider the 
matters related to the allocation of assets and liabilities to the 
theoretical competitive products enterprise.
    2. Interested persons may submit initial comments within 45 days of 
publication of this order in the Federal Register.
    3. Interested persons may submit reply comments within 75 days of 
publication of this Order in the Federal Register.
    4. Pursuant to 39 U.S.C. 505, Patricia A. Gallagher is designated 
to serve as the Public Representative representing the interests of the 
general public in this proceeding.
    5. The Secretary shall arrange for publication of this Notice in 
the Federal Register.

    Authority:  39 U.S.C. 503, 2011, 3633, 3634.

    Issued: August 24, 2009.

    By the Commission.
Judith M. Grady,
Acting Secretary.
[FR Doc. E9-21476 Filed 9-4-09; 8:45 am]
BILLING CODE 7710-FW-P