[Federal Register Volume 82, Number 107 (Tuesday, June 6, 2017)]
[Notices]
[Pages 26146-26147]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-11586]


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POSTAL REGULATORY COMMISSION

[Docket Nos. PI2017-1; Order No. 3926]


Public Inquiry on City Carrier Costs

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is establishing a public inquiry to ascertain 
the Postal Service's progress and data collection capabilities to 
update its city carrier models. This notice informs the public of this 
proceeding, invites public comment, and takes other administrative 
steps.

DATES: Comments are due: August 29, 2017.

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:

I. Introduction
II. Background
III. Public Inquiry
IV. Public Representative
V. Ordering Paragraphs

I. Introduction

    The Commission establishes Docket No. PI2017-1 in order to 
ascertain the Postal Service's progress in its ongoing efforts to 
update its city carrier cost models and data collection capabilities in 
accordance with Commission Order No. 2792 and to invite public comment 
on these topics.\1\
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    \1\ Docket No. RM2015-7, Order Approving Analytical Principles 
Used in Periodic Reporting (Proposal Thirteen), October 29, 2015 
(Order No. 2792).
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II. Background

    In Order No. 2792, the Commission directed the Postal Service to 
investigate several issues, including the steps required to collect 
daily volume measurements for specified special studies and the 
feasibility of updating the cost model used to assign the costs of 
Sunday delivery hours and parcel routes. Order No. 2792 at 65-66. The 
Commission also directed the Postal Service to determine whether a 
single equation city carrier letter route cost model for street time 
could produce improved variability estimates. Id. at 65.
    In its response to Order No. 2792, the Postal Service indicated 
that it had

[[Page 26147]]

begun investigating different methods for gathering all of the data 
elements requested by the Commission.\2\ There, the Postal Service 
noted that its investigation into the Commission's directive would have 
two distinct phases. Id. The Postal Service described the first phase 
as exploring whether the requisite data could be practically gathered 
and, if so, whether those data would be reliable and accurate. Id. It 
stated that the second phase was to determine whether it would be 
possible to use the obtained data to construct a single-equation city 
carrier letter route cost model for street time. Id. The Postal Service 
stated that it had only recently started to record the required data 
and that, therefore, it had just begun the first phase. Id.
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    \2\ Docket No. RM2015-7, Response of the United States Postal 
Service to Commission Order No. 2792, February 16, 2016, at 14 
(Postal Service Response to Order No. 2792).
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    In Docket No. ACR2015, the Postal Service reported that it had 
initiated an investigation into updating its city carrier Special 
Purpose Route (SPR) cost model for street time.\3\ The Postal Service 
uses the SPR study data approved in Docket No. R97-1 in conjunction 
with current data from its In-Office Cost System (IOCS) to form SPRs 
street time cost pools and to develop attributable costs.\4\ In its 
response to Order No. 2792, the Postal Service stated that it also was 
investigating the feasibility of using operational data to estimate 
variability equations for its parcel and collection route cost 
models.\5\
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    \3\ See Docket No. ACR2015, Library Reference USPS-FY15-9, file 
``USPS-FY15-9_Roadmap.pdf,'' December 29, 2015, at 122; Docket No. 
R97-1, Opinion and Recommended Decision, Volume 1, May 11, 1998, at 
188 (Opinion and Recommended Decision).
    \4\ See Opinion and Recommended Decision at 188.
    \5\ The Commission's Order No. 2792 describes this as the cost 
model used to assign the costs of Sunday delivery hours and parcel 
routes. See Order No. 2792 at 66. The Postal Service describes this 
as the Parcel and Collection Route Models which are limited to non-
Sunday city carrier SPR costs. Postal Service Response to Order No. 
2792 at 16.
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III. Public Inquiry

    The Commission establishes PI2017-1 to obtain an update on the 
Postal Service's progress in investigating the data required for, and 
the viability of, a single equation city carrier letter route cost 
model as well as in reviewing the SPR cost model for street time.
    Chairman's Information Request No. 1 is issued contemporaneously 
with this Notice and Order. It seeks an update to the Postal Service's 
Response to Order No. 2792 and further clarification on designated 
IOCS-estimated city carrier costs and City Carrier Cost System volumes.
    Comments on these topics are due no later than August 29, 2017. 
Comments are to be submitted via the Commission's online filing system 
at http://www.prc.gov, unless a waiver is obtained. Information on how 
to obtain a waiver may be found by contacting the Commission's dockets 
office at 202-789-6846.

IV. Public Representative

    Pursuant to 39 U.S.C. 505, Katalin K. Clendenin, is designated as 
an officer of the Commission (Public Representative) to represent the 
interests of the general public in this proceeding.

V. Ordering Paragraphs

    It is ordered:
    1. The Commission hereby establishes Docket No. PI2017-1 to review 
the Postal Service's progress towards the Commission directives in 
Order No. 2792 and to inquire about the current data and methodology 
used to estimate city carrier costs and City Carrier Cost System 
volumes.
    2. Comments are due no later than August 29, 2017.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Katalin K. 
Clendenin 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.
Stacy L. Ruble,
Secretary.
[FR Doc. 2017-11586 Filed 6-5-17; 8:45 am]
 BILLING CODE 7710-FW-P