[Federal Register Volume 80, Number 161 (Thursday, August 20, 2015)]
[Proposed Rules]
[Pages 50589-50590]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-20534]


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

POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2015-17; Order No. 2661]


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 Eight). 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 in order to consider changes

[[Page 50590]]

in analytical principles relating to periodic reports.\1\ Proposal 
Eight is attached to the Petition and proposes an analytical method 
change related to the avoided costs for 5-Digit pallets Standard Mail 
Carrier Route flats discounts. Petition at 1.
---------------------------------------------------------------------------

    \1\ Petition of the United States Postal Service for the 
Initiation of a Proceeding to Consider Proposed Changes in 
Analytical Principles (Proposal Eight), August 5, 2015 (Petition).
---------------------------------------------------------------------------

    This Petition was filed in response to Order No. 2472, which 
directed the Postal Service ``to file a proposed methodology for 
determining the costs avoided for the 5-digit pallet presort Standard 
Mail Carrier Route flats workshare discount, as described in the body 
of [Order No. 2472], within 90 days of the date of [Order No. 2472].'' 
\2\
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

II. Summary of Proposal

    The Postal Service explains that prior to the planned price 
adjustments in Docket No. R2015-4, the Carrier Route product only 
afforded customers entry discounts. Petition, Proposal Eight at 1. The 
Postal Service's price adjustment in Docket No. R2015-4 introduced a 
preparation discount on 5-Digit Carrier Route pallets. Proposal Eight 
seeks to modify the Standard Mail Flats Cost Model to produce estimates 
of mail processing cost avoidances for Carrier Route pieces on 5-Digit 
Carrier Route pallets. Id. The Petition states that the general 
architecture of the model is retained, but it is expanded to explicitly 
model the unique characteristics and flows of Carrier Route flats. Id.
    The Petition further states that when a commercial mailer has at 
least 250 pounds of Carrier Route mail destinating in a 5-Digit or 5-
Digit Scheme (Labeling List L001) the customer can prepare a Carrier 
Route pallet. Preparation of a Carrier Route pallet enables the Postal 
Service to cross-dock the pallet directly to the delivery unit and 
bypass bundle sortation operations. Id. at 1-2.
    The structure and methodology used in estimating cost avoidances of 
Standard Mail Flats provide estimates of costs avoided for pieces 
prepared on Carrier Route pallets. Id. at 2. The Postal Service 
explains that this model provides engineering cost estimates of bundles 
and pieces based on the preparation profile of pieces within each rate 
element. Id.
    The Postal Service states that as in the model to estimate cost 
avoidances for Standard Mail Flats, the proposed Carrier Route pallet 
cost avoidance model's mail preparation profile is taken from the Mail 
Characteristics Study in USPS-FY14-14 to account for Carrier Route 
pieces on Carrier Route pallets and Carrier Route pieces on all other 
containers. The Postal Service asserts that the Carrier Route data from 
the Mail Characteristics Study in USPS-FY14-14 is modified to exclude 
pieces prepared in FSS bundles. Id. The new preparation profile 
includes only pieces that qualify for Carrier Route rates under the new 
qualification standards. Id.
    The Postal Service's methodology used to calculate bundle flow and 
piece flow are unchanged from the Standard Mail Flats Cost Model.\3\ 
Id. However, the Postal Service contends that the proposal amends the 
flow parameters within the model that are specific to Carrier Route.\4\
---------------------------------------------------------------------------

    \3\ Including all assumptions, for example the bundle breakage 
rate.
    \4\ The Postal Service cites to the Excel files submitted with 
its petition in Docket No. RM2015-16, USPS-RM2015-16/1, August 5, 
2015. Compare, e.g., File STD_FLATS_Order 2472.xlsx, tab CR Pallet 
Model with tab 5D Auto Model Rev.
---------------------------------------------------------------------------

III. Initial Commission Action

    The Commission establishes Docket No. RM2015-17 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 Eight no later than September 8, 2015. Reply comments are due 
no later than September 22, 2015. Pursuant to 39 U.S.C. 505, the 
Commission designates Nina Yeh to serve as an officer of the Commission 
(Public Representative) representing the interests of the general 
public in this proceeding.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. RM2015-17 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 Eight), 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 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. 2015-20534 Filed 8-19-15; 8:45 am]
BILLING CODE 7710-FW-P