[Federal Register Volume 76, Number 103 (Friday, May 27, 2011)]
[Proposed Rules]
[Pages 30893-30894]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-13158]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2011-11; Order No. 736]


Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Commission is noticing a recently-filed Postal Service 
petition to initiate an informal rulemaking proceeding to consider 
changes in analytical principles. Proposal Three involves changes to 
the method by which unused stamp and meter revenue are allocated in its 
Revenue, Pieces, and Weight report. This notice informs the public of 
the filing, addresses preliminary procedural matters, and invites 
public comment.

DATES: Comments are due: June 23, 2011.

ADDRESSES: Submit comments electronically by accessing the ``Filing 
Online'' link in the banner at the top of the Commission's Web site 
(http://www.prc.gov) or by directly accessing the Commission's Filing 
Online system at https://www.prc.gov/prc-pages/filing-online/login.aspx. Commenters who cannot submit their views electronically 
should contact the person identified in the FOR FURTHER INFORMATION 
CONTACT section as the source for case-related information for advice 
on alternatives to electronic filing.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
at 202-789-6820 (case-related information) or [email protected] 
(electronic filing assistance).

SUPPLEMENTARY INFORMATION: On May 18, 2011, the Postal Service filed a 
petition pursuant to 39 CFR 3050.11 requesting the Commission to 
initiate an informal rulemaking proceeding to consider changes in the 
analytical methods approved for use in periodic reporting.\1\ Proposal 
Three would revise the method by which unused stamp and meter revenue 
reflected in the Postal Service's financial accounts are allocated to 
single-piece First-Class, Priority, and other mail in its Revenue, 
Pieces, and Weight (RPW) report.
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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 Three), May 18, 2011 (Petition).
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    The Postal Service's Trial Balance revenue accounts are set up to 
identify revenue by source. One of the sources of revenue that those 
accounts identify is method of payment (by stamp or by meter). Stamp 
and meter revenue are generated by single-piece First-Class Mail and 
Priority Mail and, to a small extent, other products. Since the amount 
of stamp and metered postage purchased is always greater than the 
amount used, the unused portion is accounted for as a liability. 
Changes in the amount of this liability are tracked by revenue 
adjustment accounts labeled ``Postage-in-the-Hands-of-the-Public'' 
(PIHOP). There is a PIHOP for stamp revenue and another for meter 
revenue. The Postal Service currently distributes PIHOP stamp and PIHOP 
meter revenue adjustments to First-Class Mail and Priority Mail in 
proportion to total ODIS-RPW sampling revenue. Petition, Supporting 
Material, at 3-6.
    The Postal Service believes that this method over-allocates the 
PIHOP revenue adjustment to Priority Mail and under-allocates it to 
single-piece First-Class Mail. Id. at 3. It also believes that there is 
an over-allocation of the meter PIHOP, although to a much lesser 
degree. Id. at 6-7. It estimates that in the Q2 FY 2011 RPW report, the 
current misallocation of PIHOP results in an underestimate of domestic 
Priority Mail revenue by $35 million and an overestimate of single-
piece First-Class letter mail revenue by $63 million. Id. at 13.
    The Postal Service proposes to remedy this misallocation of stamp 
and meter revenue to products by distributing PIHOP stamp adjustments 
in proportion to ODIS-RPW sampling stamp revenue and PIHOP meter 
adjustments in proportion to ODIS-RPW sampling meter revenue. Id. at 9. 
The details of the rather intricate process by which this revised 
distribution would be accomplished are described at pages 10 and 11 of 
the material supporting the Petition. The Postal Service asserts that, 
if approved, Proposal Three could be implemented immediately. Id. at 
12.
    The Petition and spreadsheets illustrating the proposed method are 
available for review on the Commission's Web site, http://www.prc.gov.
    Pursuant to 39 U.S.C. 505, Curtis Kidd is designated as Public 
Representative to represent the interests of the general public in this 
proceeding. Comments are due no later than June 23, 2011.
    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 Three), filed May 18, 2011, is granted.
    2. The Commission establishes Docket No. RM2011-11 to consider the 
matters raised by the Postal Service's Petition.
    3. Interested persons may submit comments on Proposal Three no 
later than June 23, 2011.
    4. The Commission will determine the need for reply comments after 
review of the initial comments.
    5. Curtis Kidd is appointed to serve as the Public Representative 
to represent the interests of the general public in this proceeding.
    6. The Secretary shall arrange for publication of this notice in 
the Federal Register.


[[Page 30894]]


    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2011-13158 Filed 5-26-11; 8:45 am]
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