[Federal Register Volume 80, Number 158 (Monday, August 17, 2015)]
[Proposed Rules]
[Page 49186]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-20233]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2015-18; Order No. 2655]


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

DATES: Comments are due: September 8, 2015. Reply Comments are due: 
September 22, 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 August 5, 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 the Postal Service's periodic reports.\1\ Proposal Nine is 
attached to the Petition and proposes an analytical method change 
relating to bottom-up costs for new Periodicals Mail Carrier Route 
bundle and container entry options. Petition at 1. This Petition was 
filed in response to Order No. 2472, which directed the Postal Service 
to ``. . . file a proposed methodology for determining the bottom-up 
costs for the new Periodicals Mail Carrier Route bundle and container 
entry options, as described in the body of [Order No. 2472], within 90 
days of the date of [Order No. 2472].'' \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 Nine), August 5, 2015 (Petition).
    \2\ Docket No. R2015-4, Order on Revised Price Adjustments for 
Standard Mail, Periodicals, and Package Services Products and 
Related Mail Classification Changes, May 7, 2015, at 63 (Order No. 
2472).
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II. Summary of Proposal

    Under Proposal Nine, the Postal Service asserts that no changes to 
the methodology used to produce avoided cost estimates for Periodicals 
Mail Carrier Route bundle and container entry options is necessary and 
instead proposes changes to the model presentation that explicitly 
identify the bottom-up costs of processing Carrier Route pallets. 
Petition, Proposal Nine at 1, 2.
    When a mailing has sufficient density to prepare 5-Digit or 5-Digit 
Scheme pallets, the mailer presorts nearly all of the mail on the 
pallet into Carrier Route bundles. Id. at 1. The Postal Service 
represents that in Fiscal Year 2014, only one-half of one percent of 
the periodicals on such pallets were prepared in 5-Digit bundles. Id. 
The Postal Service states that the 5-Digit mail on these pallets 
generally consists of residual pieces for the few routes that lack 
sufficient density to qualify for Carrier Route rates. Id.
    The Postal Service represents that for this reason it processes 
Carrier Route pallets (5-Digit or 5-Digit Scheme pallets containing 
only Carrier Route bundles) identically to other 5-Digit pallets. Id. 
at 1-2. The Postal Service explains that all pallets are cross-docked 
to the delivery unit for distribution of bundles to carriers. Id. at 2. 
The Postal Service states that the Carrier Route pallet rate encourages 
mailers to prepare Carrier Route pallets and to move any residual 5-
Digit bundles to containers that would be distributed in the plant. Id. 
The Postal Service represents this enables it to process the residual 
5-Digit bundles on the Automated Flats Sorting Machine 100, rather than 
via manual processing. Id.
    According to the Postal Service, because the processing of Carrier 
Route pallets and other 5-Digit pallets does not differ, it proposes no 
changes to the methodology used to produce estimates of avoided costs. 
Id. The Postal Service represents that the changes it proposes to the 
USPS-FY14-11 Periodicals Model in Docket No. ACR2014 explicitly 
identify the costs avoided. Id. Further, the Postal Service states that 
it has incorporated Modifications 1 and 9, described in Section One of 
Proposal Seven,\3\ into the Periodicals Model filed with the Petition 
as an Excel spreadsheet. Id.
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    \3\ Petition of the United States Postal Service for the 
Initiation of a Proceeding to Consider Proposed Changes in 
Analytical Principles (Proposal Seven), August 5, 2015 (Proposal 
Seven).
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III. Initial Commission Action

    The Commission establishes Docket No. RM2015-18 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 Nine no later than September 8, 2015. Reply comments are due 
no later than September 22, 2015. Pursuant to 39 U.S.C. 505, Lawrence 
Fenster 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. RM2015-18 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 Nine), filed August 
5, 2015.
    2. Comments are due no later than September 8, 2015. Reply comments 
are due no later than September 22, 2015.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Lawrence 
Fenster to serve as 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. 2015-20233 Filed 8-14-15; 8:45 am]
 BILLING CODE 7710-FW-P