[Federal Register Volume 80, Number 146 (Thursday, July 30, 2015)]
[Proposed Rules]
[Pages 45467-45468]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-18665]


=======================================================================
-----------------------------------------------------------------------

POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2015-13; Order No. 2599]


Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

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 Five). This notice informs the public of the 
filing, invites public comment, and takes other administrative steps.

DATES: Comments are due: August 31, 2015. Reply Comments are due: 
September 15, 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. Proposal Five: A New Methodology To Develop IMTS--Outbound and 
Inbound Product Costs
III. Initial Commission Action
IV. Ordering Paragraphs

I. Introduction

    In the Fiscal Year 2014 Annual Compliance Determination (FY 2014 
ACD), the Commission directed the Postal Service to report within 90 
days on the feasibility of developing attributable costs for the 
International Money Transfer Service (IMTS)--Outbound and Inbound 
products based upon alternatives to the In-Office Cost System 
(IOCS).\1\ Cost data for the IMTS--Outbound and Inbound products are 
reported in the International Cost and Revenue Analysis (ICRA) report.
---------------------------------------------------------------------------

    \1\ Docket No. ACR2014, Fiscal Year 2014 Annual Compliance 
Determination Report, March 27, 2015, at 76 (FY 2014 ACD). The IOCS 
is one of several Postal Service statistical sampling systems used 
to develop product costs.
---------------------------------------------------------------------------

    On June 30, 2015, the Postal Service filed its response to this 
directive.\2\ In Item No. 4 of the Response, the Postal Service 
proposes to use data reported by the Federal Reserve Bank to estimate 
the transaction volume for the IMTS--Inbound product. Id. at 3. The 
Postal Service also proposes to use the inbound transaction volume in a 
new methodology to develop attributable costs for the IMTS--Outbound 
and Inbound products as an alternative to using IOCS statistical data. 
Id. at 5.
---------------------------------------------------------------------------

    \2\ Docket No. ACR2014, Responses of the United States Postal 
Service to Commission Requests for Additional Information Regarding 
IMTS and EPG in the FY 2014 Annual Compliance Determination, June 
30, 2015 (Response).
---------------------------------------------------------------------------

    Pursuant to 39 CFR 3050.11 et. seq., the Commission establishes the 
instant docket to initiate an informal rulemaking proceeding to 
consider the changes proposed in Item No. 4 of the Response to the 
Commission's directive in the FY 2014 ACD. The proposed changes to the 
IMTS--Outbound and Inbound products are labeled as Proposal Five and 
will be considered in this docket.

II. Proposal Five: A New Methodology To Develop IMTS--Outbound and 
Inbound Product Costs

    The Postal Service proposes to estimate the transaction volume for 
the IMTS--Inbound product for the first time on an annual basis using 
data available from the Federal Reserve Bank on the number of foreign-
origin money orders cashed by the Postal Service. Id. at 3. Using this 
new inbound transaction volume, the Postal Service proposes a new 
methodology to develop the attributable costs of the IMTS--Outbound and 
Inbound products. Id. at 5.
    Currently, total attributable costs for the combined IMTS--Outbound 
and Inbound products are distributed between the products using IOCS 
tallies.\3\ The Postal Service states that both the IMTS--Outbound and 
Inbound products are small products with relatively few transactions. 
Response at 4. As a result, it is difficult to obtain a sufficient 
number of IOCS tallies to reliably estimate attributable costs for the 
IMTS--Outbound product, which causes relatively volatile unit costs 
year-to-year. Id. Moreover, in most fiscal years, the Postal Service 
has been unable to develop attributable costs for the IMTS--Inbound 
product because of an absence of IOCS tallies. In addition, the ICRA 
report does not present transaction volume for the IMTS--Inbound 
product because the Postal Service has been unable to estimate such 
transaction volume through special studies or the use of data from 
postal retail systems. Id. at 2-3.
---------------------------------------------------------------------------

    \3\ See Docket No. RM2011-5, Order No. 724, Order Concerning 
Analytical Principles for Periodic Reporting (Proposals Ten through 
Twelve, May 4, 2011, at 6-8. The IOCS collects data on the 
proportion of time spent by an employee performing various functions 
on different mail products or services. These proportions of time 
are used to estimate the costs of such products or services. An 
example might be the time spent by city carriers in a delivery post 
office casing (i.e., sorting) mail. Individuals referred to as 
``tally takers'' sample the time data; hence, the term tally is used 
to identify the source of the data.
---------------------------------------------------------------------------

    To develop attributable costs for the IMTS--Outbound and Inbound 
products, the Postal Service proposes to use an estimate of retail 
window service time for electronic wire transfer transactions to 
develop an electronic window service cost per transaction. Id. at 5. 
When multiplied by the number of electronic transfer transactions, the 
resulting total electronic window service costs is then subtracted from 
the total attributable costs for the combined IMTS products, with the 
remainder apportioned between transactions for outbound paper money 
orders and foreign-origin money orders cashed by the Postal Service 
based on transaction volume. Id.

III. Initial Commission Action

    The Commission establishes Docket No. RM2015-13 for consideration 
of matters raised by Item No. 4 of the Response, now identified as 
Proposal Five. More information on Proposal Five may be accessed via 
the Commission's Web site at http://www.prc.gov. The Postal Service 
filed portions of its supporting documentation under seal as part of a 
non-public annex. Information concerning access to non-public materials 
is located in 39 CFR part 3007.
    Interested persons may submit comments on Proposal Five no later

[[Page 45468]]

than August 31, 2015. Reply comments are due no later than September 
15, 2015. Pursuant to 39 U.S.C. 505, Nina Yeh 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. RM2015-13 for 
consideration of the matters raised by the United States Postal Service 
in its Docket No. ACR2014, Responses of the United States Postal 
Service to Commission Requests for Additional Information Regarding 
IMTS and EPG in the FY 2014 Annual Compliance Determination, Item No. 
4, filed June 30, 2015, identified herein as Proposal Five.
    2. Comments by interested persons in this proceeding are due no 
later than August 31, 2015. Reply comments are due no later than 
September 15, 2015.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Nina Yeh 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.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2015-18665 Filed 7-29-15; 8:45 am]
BILLING CODE 7710-FW-P