[Federal Register Volume 80, Number 120 (Tuesday, June 23, 2015)]
[Proposed Rules]
[Pages 35898-35899]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-15361]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2015-9; Order No. 2545]


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 
requesting that the Commission initiate an informal rulemaking 
proceeding to consider changes to analytical principles relating to 
periodic reports (Proposal One). This notice informs the public of the 
filing, invites public comment, and takes other administrative steps.

DATES: Comments are due: July 23, 2015. Reply comments are due: August 
3, 2015.

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 June 12, 2015, 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\ Text attached to the Petition 
identifies the proposed analytical method changes filed in this docket 
as Proposal One, Proposed Change in RPW Methodology for Forever Stamp 
Usage, Stamp Breakage, and PIHOP. Id. Attachment at 1. The Postal 
Service concurrently filed a non-public library reference, along with 
an application for nonpublic treatment.\2\
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    \1\ Petition of the United States Postal Service Requesting 
Initiation of a Proceeding to Consider a Proposed Change in 
Analytical Principles (Proposal One), June 12, 2015 (Petition).
    \2\ Notice of Filing of USPS-RM2015-9/NP1 and Application for 
Nonpublic Treatment, June 12, 2015 (Notice). The library reference 
is USPS-RM2015-9/NP1, Non-Public Material Relating to Proposal One. 
The Notice incorporates by reference the Application for Non-Public 
Treatment of Materials contained in Attachment Two to the December 
29, 2014, United States Postal Service Fiscal Year 2014 Annual 
Compliance Report. Notice at 1. See 39 CFR part 3007 for information 
on access to non-public material.
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II. Summary of Proposal

    The Petition requests a change in methodology for the treatment of 
revenue, pieces, and weight (RPW) associated with forever stamp usage, 
breakage, and Postage-in-the-Hands-of-the-Public (PIHOP). Stamp 
breakage refers to the forever stamps that have been sold by the Postal 
Service but will never be used due to factors such as lost or damaged 
stamps and collectables. Id. at 3. PIHOP refers to forever stamps that 
are being held by purchasers for future use. Id.
    The Postal Service currently estimates forever stamp breakage by 
assigning stamps a category and an issue year, known as a layer. Id. at 
3-4. When a layer of stamps is no longer available for sale and is 
determined to be at the end of its life cycle, as measured by the 
Origin Destination Information System (ODIS)-RPW system, the difference 
between cumulative sales and cumulative usage (calculated as a 
percentage) is deemed to be breakage and recognized as revenue for the 
Postal Service. Id. at 4. This breakage percentage is applied to 
forever stamp sales for that layer and all remaining open forever stamp 
layers, until the remaining layers expire and become the new basis for 
estimating the breakage percentage. Id.
    Forever stamp usage is collected by ODIS-RPW data collectors and 
expanded to national totals. Id. A separate process calculates the 
value of the layer used, based on the different prices at which it was 
originally sold. Id. at 5. The estimated forever stamp usage is 
included in the current Book Revenue Adjustment Factor (BRAF) 
calculation. Id. at 7. The Postal Service currently estimates PIHOP 
liability at the end of each accounting period. Id. at 5. PIHOP 
liability is calculated by subtracting the stamp breakage and stamp 
usage from stamp sales. Id.
    The proposed changes include using the ODIS-RPW estimates for 
forever stamps usage directly in the RPW Report. Id. at 9. Under the 
proposal, two changes would occur in the BRAF formulation: Forever 
stamp usage would be removed from the ODIS-RPW Single-Piece Sampling 
Revenue and forever stamp usage and forever stamp and non-forever stamp 
breakage would be

[[Page 35899]]

removed from the residual total balance. Id. at 10. In addition, 
breakage from both forever and non-forever stamps would be assigned to 
Market Dominant Other Revenue in the RPW Report and PIHOP revenues, 
including meter PIHOP, will no longer be allocated directly to 
products. Id. at 11.
    RPW reporting impacts. The Postal Service provides three tables 
that assess the impact of its proposal. Id. Table 1 shows the BRAF 
calculations for FY 2014 for current and proposed methodologies; Table 
2 shows the FY 2014 RPW report for the current proposed methodologies; 
and Table 3 shows the same information for Quarter 2 Year-to-Date FY 
2015. Id. at 11-12. Library Reference USPS-FY2015-9/NP1 contains non-
public versions of Tables 2 and 3. Id. at 12.

III. Initial Commission Action

    The Commission establishes Docket No. RM2015-9 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 and 
Proposal One no later than July 23, 2015. Reply comments are due no 
later than August 3, 2015. Pursuant to 39 U.S.C. 505, Anne C. O'Connor 
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. RM2015-9 for consideration 
of the matters raised by the Petition of the United States Postal 
Service Requesting Initiation of a Proceeding to Consider a Proposed 
Change in Analytical Principles (Proposal One), filed June 12, 2015.
    2. Comments are due no later than July 23, 2015. Reply comments are 
due no later than August 3, 2015.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Anne C. 
O'Connor 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 publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2015-15361 Filed 6-22-15; 8:45 am]
 BILLING CODE 7710-FW-P