[Federal Register Volume 79, Number 220 (Friday, November 14, 2014)]
[Proposed Rules]
[Pages 68151-68152]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-26929]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket Nos. RM2015-4; Order No. 2244]


Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Commission is noticing a recent Postal Service filing 
concerning a Proposed Rulemaking on Analytical Principles Used in 
Periodic Reporting (Proposal Eleven). This document informs the public 
of the filing, invites public comment, and takes other administrative 
steps.

DATES: Comments are due: November 25, 2014. Reply Comments are due: 
December 11, 2014.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at http://www.prc.gov. 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. Summary of Proposal
III. Initial Commission Action
IV. Ordering Paragraphs

I. Introduction

    On November 4, 2014, the Postal Service filed a petition pursuant 
to 39 CFR 3050.11 requesting that the Commission initiate an informal 
rulemaking proceeding to consider changes to analytical principles 
relating to periodic reports.\1\ It identifies the change filed in this 
docket as Proposal Eleven, Change in the Attribution of Debit and 
Credit Card Fees. Id., Attachment at 1. The Postal Service concurrently 
filed one library reference, along with an application for nonpublic 
treatment.\2\
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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 Eleven), November 4, 2014 
(Petition).
    \2\ Notice of Filing of USPS-RM2015-4/NP1 and Application for 
Nonpublic Treatment, November 4, 2014 (Notice of Filing). The Notice 
of Filing incorporates by reference the Application for Non-Public 
Treatment of Materials contained in Attachment Two to the December 
27, 2013 United States Postal Service Fiscal Year 2013 Annual 
Compliance Report. Notice of Filing at 1. See 39 CFR part 3007 for 
information on access to non-public material.
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II. Summary of Proposal

    Currently, the Postal Service records payments of debit and credit 
card fees in two general ledger accounts, assigns the fees to two 
different cost segments, and uses two different keys to distribute 
costs to products and services (total postal labor costs and window 
service volume variability). Petition, Attachment at 2. This results in 
approximately 42 percent of total debit and credit card fees being 
classified as volume variable. Id. The remaining 58 percent of the fees 
are classified as institutional costs, and are not assigned to any 
products. Id.
    The Postal Service proposes replacing this methodology with one 
based on the revenue generated when debit or credit cards are used to 
pay the Postal Service for products or services. Id. Reports of revenue 
by product from each of the major revenue reporting systems (POS-1, 
etc.) will be combined and grouped by product. Each product's 
percentage of total revenue that is paid with debit and credit cards 
will then be calculated. The resulting percentage will serve as the 
distribution for debit and credit card fees. Id. The distribution key 
will be applied to the aggregate fee amounts from the general ledger 
accounts. Id. at 3. All debit and credit card fees will be captured in 
one cost segment (13.3). Id.
    The Postal Service asserts that the proposed approach will allow it 
to more accurately assign debit and credit card fees to the products 
that were purchased using debit and credit cards. Id.
    Cost impacts. The Postal Service states that as a result of no 
longer using window service volume variability, a higher percentage of 
debit and credit card fees will be attributed to the products or 
services that caused the fees. Id. The Postal Service states the 
current methodology attributed approximately $83.3 million of $200 
million in debit and credit card fees to products and fees. Id. It 
states that under the proposed methodology, approximately $196.9 
million would be

[[Page 68152]]

attributed. Id. It also presents a comparison of the fiscal year 2013 
debit and credit card distribution keys using the current and proposed 
methods for market dominant products. Id. An expanded set of impact 
tables showing comparable figures for competitive products appears in 
USPS-RM2015-4/NP1. Id.

III. Initial Commission Action

    The Commission establishes Docket No. RM2015-4 for consideration of 
matters raised by the Petition. Additional information concerning the 
Petition may be accessed via the Commission's Web site at http://www.prc.gov. Interested persons may submit comments on the Petition no 
later than November 25, 2014. Reply comments are due no later than 
December 11, 2014. Pursuant to 39 U.S.C. 505, Curtis E. Kidd is 
designated as 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. RM2015-4 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 Eleven), filed November 4, 2014.
    2. Comments are due no later than November 25, 2014.
    3. Reply comments are due no later than December 11, 2014.
    4. Pursuant to 39 U.S.C. 505, the Commission appoints Curtis E. 
Kidd to serve as an officer of the Commission (Public Representative) 
to represent the interests of the general public in this docket.
    5. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2014-26929 Filed 11-13-14; 8:45 am]
BILLING CODE 7710-FW-P