[Federal Register Volume 81, Number 72 (Thursday, April 14, 2016)]
[Proposed Rules]
[Pages 22040-22041]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-08591]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2016-7; Order No. 3225]


Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Commission is noticing a recent 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: May 20, 2016. Reply Comments are due: June 6, 
2016.

[[Page 22041]]


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 April 5, 2016, the Postal Service filed a petition pursuant to 
39 CFR 3050.11 requesting that the Commission initiate an informal 
rulemaking proceeding to consider a proposed change in analytical 
principles relating to periodic reports.\1\ The Petition includes a 
description of Proposal One and several attachments. Petition at 1.
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    \1\ Petition of the United States Postal Service Requesting 
Initiation of a Proceeding to Consider Proposed Changes in 
Analytical Principles (Proposal One), April 5, 2016 (Petition). 
Attachment A provides a detailed description of the proposal. 
Attachment B provides product-level impacts. Attachment C is a 
technical note on the proposed system estimator. The Postal Service 
filed a non-public version of Attachment B. Notice of Filing of 
USPS-RM2016-7/NP1 and Application for Nonpublic Treatment, April 5, 
2016.
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    Proposal One seeks the Commission's authorization of a change in 
the current methodology for reporting revenue, pieces, and weight in 
the Revenue, Pieces, and Weight (RPW) report \2\ for specified 
international outbound products. Id.
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    \2\ The RPW is filed quarterly with the Commission pursuant to 
39 CFR 3050.25. Id. at 3.
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II. Summary of Proposal

    The proposed methodology and program changes relate to the System 
for International Revenue and Volume, Outbound, and International 
Origin Destination Information System (SIRVO) as it relates to RPW 
reporting for the outbound international product categories in Table 1. 
Id. at 2-3.

   Table 1--List of Affected Outbound International Product Categories
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            Market dominant                        Competitive
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Outbound First-Class Mail International  Outbound Priority Mail
                                          International.
U.S. Postal Service Mail...............  Outbound Direct Sacks (M-bags).
Free Mail..............................  First-Class Package
                                          International Service.
International Ancillary Services.......  International Ancillary
                                          Services.
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Source: Petition at 2-3.

    Under Proposal One, the Postal Service seeks to enhance the data 
and estimates of the SIRVO. Id. at 2. The current SIRVO estimator of 
revenue and pieces is a probability-based statistical expansion 
estimator, which uses sample data. Id. at 3. The proposed SIRVO 
estimator would be a model-based regression estimator, based on census 
data. Id. at 5. This proposed estimator would also include census data 
from additional sources at a more granular level. Id. at 7.
    The Postal Service asserts that adoption of this proposal will 
significantly reduce the margins of error for product revenues and 
volumes. Id. at 10. These improvements will primarily affect estimates 
for Priority Mail International, First-Class Mail International, and 
First-Class Package International Service. Id.
    The Postal Service further asserts that ``approximately 50 percent 
of the revenue . . . of the proposed SIRVO's product estimates for 
FY2015 are based upon census data sources.'' Id. at 8. Proposal One 
would not affect the amount of total FY 2015 revenue, but total 
competitive revenue would increase, with a corresponding decrease in 
market dominant revenue. Id. at 8-9. Total FY 2015 volume would 
increase, with competitive volumes increasing and market dominant 
volumes decreasing. Id.

III. Initial Commission Action

    The Commission establishes Docket No. RM2016-7 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 May 20, 2016. Reply comments are due no 
later than June 6, 2016. Pursuant to 39 U.S.C. 505, Cassie D'Souza is 
designated as an officer of the Commission to represent the interests 
of the general public (Public Representative) in this proceeding.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. RM2016-7 for consideration 
of the matters raised by the Petition of the United States Postal 
Service Requesting Initiation of a Proceeding to Consider Proposed 
Changes in Analytical Principles (Proposal One), filed April 5, 2016.
    2. Comments are due no later than May 20, 2016. Reply comments are 
due no later than June 6, 2016.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Cassie 
D'Souza to serve as Public Representative in this docket.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Stacy L. Ruble,
Secretary.
[FR Doc. 2016-08591 Filed 4-13-16; 8:45 am]
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