[Federal Register Volume 75, Number 6 (Monday, January 11, 2010)]
[Proposed Rules]
[Pages 1301-1302]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-179]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2010-7; Order No. 372]


Periodic Reporting

AGENCY:  Postal Regulatory Commission.

ACTION:  Proposed rule; notice of availability of rulemaking petition.

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SUMMARY: The Postal Service has proposed adjustments to the methodology 
of a key element in the Parcel Select cost model. If adopted, the 
adjustments could affect the cost differences between certain Parcel 
Select price categories. The Commission is establishing a docket to 
consider this proposal and invites public comment.

DATES:  Comments are due: January 8, 2010.

ADDRESSES:  Submit comments electronically via the Commission's Filing 
Online system at http://www.prc.gov. Commenters who cannot file their 
views electronically should contact the person identified in ``FOR 
FURTHER INFORMATION CONTACT'' by telephone for advice on alternatives 
to electronic filing.

FOR FURTHER INFORMATION CONTACT:  Stephen L. Sharfman, General Counsel, 
at 202-789-6824 or [email protected].

[[Page 1302]]


SUPPLEMENTARY INFORMATION:
I. Background
II. Commission Analysis
III. Ordering Paragraphs

I. Background

    On December 22, 2009, the Postal Service filed a petition to 
initiate an informal rulemaking proceeding to consider changes in the 
analytical methods approved for use in periodic reporting.\1\ Proposal 
Thirty would modify the billing determinants that are inputs to the 
cost models used to calculate the cost differences between the 
following price categories of Parcel Select: Inter-BMC, Intra-BMC, 
DBMC, DSCF, and DDU.
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    \1\ Petition of the United States Postal Service Requesting 
Initiation of a Proceeding to Consider a Proposed Change in Analytic 
Principles (Proposal Thirty), December 22, 2009 (Petition).
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    The Postal Service explains that during FY 2009, the Inter-BMC and 
Intra-BMC price categories of Parcel Select were merged into a 
``Nonpresort'' category. It notes that the Commission approved a 
conforming change to the mail processing and transportation cost models 
for Parcel Select/PRS whereby billing determinant data that reflects 
the mail processing and transportation costs of the new Nonpresort 
price category are recorded and used.\2\ As a result, the Postal 
Service explains, the billing determinant data used in these cost 
models consist of volume data for the Inter-BMC and Intra-BMC price 
categories for Quarters 1 through 3, and volume data for the new 
Nonpresort category in Quarter 4. Petition at 1.
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    \2\ See Docket No. RM2009-10, Order on Analytical Principles 
Used in Periodic Reporting (Proposals Three through Nineteen), 
November 13, 2009, at 36-38.
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    The Postal Service therefore proposes to recast Quarter 4 billing 
determinants for the Nonpresort price category to be consistent with 
the disaggregated classification structure and cost models that 
prevailed during the first three quarters of FY 2009. It would do this 
by assigning the Quarter 4 Nonpresort volumes for zones 6 through 8 to 
the Inter-BMC volume distribution table in the billing determinants. 
The Quarter 4 Nonpresort volumes for zones 1 through 5 would be 
assigned to the Inter- and Intra-BMC categories in the same proportion 
that these categories exhibited in Quarters 1 through 3. See Proposal 
Thirty supporting material attached to the Petition.
    The Postal Service explains that imputing the disaggregated volume 
distribution of Quarters 1 through 3 to Quarter 4 will approximately 
annualize the results of the classification structure that prevailed 
during most of FY 2009. It notes that the overall effect of Parcel 
Select results will be small because the Inter- and Intra-BMC 
categories account for a very small proportion of total FY 2009 Parcel 
Select volume. Id.

II. Commission Analysis

    Proposal Thirty is a technical change to input data used in the 
Parcel Select cost models. It is designed to accommodate the transition 
of Parcel Select to a less disaggregated price structure. It is a one-
time adjustment that will have no impact on cost estimation for Parcel 
Select going forward. The volume affected is small and unlikely to 
materially influence the financial results for Parcel Select for 
purposes of the FY 2009 Annual Compliance Report.
    The Commission sets January 8, 2010 as the due date for public 
comments. Since Proposal Thirty does not appear to raise substantive 
issues, Proposal Thirty will be adopted as a final rule for purposes of 
reporting FY 2009 results if no adverse public comments are received by 
that date.

III. Ordering Paragraphs

    It is ordered:
    1. The Petition of the United States Postal Service Requesting 
Initiation of a Proceeding to Consider a Proposed Change in Analytic 
Principles (Proposal Thirty), filed December 22, 2009, is granted.
    2. The Commission establishes Docket No. RM2010-7 to consider the 
matters raised in the Postal Service's Petition.
    3. Interested persons may submit comments on Proposal Thirty no 
later than January 8, 2010.
    4. John Klingenberg is designated to serve as the Public 
Representative representing the interests of the general public.
    5. The Secretary shall arrange for publication of this Notice in 
the Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2010-179 Filed 1-6-10; 8:45 am]
BILLING CODE 7710-FW-S