[Federal Register Volume 82, Number 117 (Tuesday, June 20, 2017)]
[Proposed Rules]
[Pages 28039-28040]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-12779]


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

POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2017-6; Order No. 3962]


Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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

SUMMARY: The Commission is noticing a recent filing requesting that the 
Commission initiate an informal rulemaking proceeding to consider 
changes to an analytical method for use in periodic reporting (Proposal 
Two). This notice informs the public of the filing, invites public 
comment, and takes other administrative steps.

DATES: Comments are due: July 31, 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: 

Table of Contents

I. Introduction
II. Proposal Two
III. Notice and Comment
IV. Ordering Paragraphs

I. Introduction

    On June 8, 2017, 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 an analytical method 
relating to periodic reports.\1\ The Petition identifies the

[[Page 28040]]

proposed analytical method changes filed in this docket as Proposal 
Two.
---------------------------------------------------------------------------

    \1\ Petition of the United States Postal Service for the 
Initiation of a Proceeding to Consider Proposed Changes in 
Analytical Principles (Proposal Two), June 8, 2017 (Petition).
---------------------------------------------------------------------------

II. Proposal Two

    Background. During the FY 2016 Annual Compliance Determination 
(ACD) process, in response to an information request, the Postal 
Service developed a methodology for revising the International Cost and 
Revenue Analysis report (ICRA) by changing the costing methodology for 
the treatment of Inbound mail, including Letter Post, Parcel Post and 
Express Mail Service to adjust for the increasingly difficult task of 
maintaining statistical reliability of reporting UPU Target and 
Transition Countries separately. Proposal Two at 1-2. Proposal Two is 
presented in response to Commission discussion in the FY 2016 ACD 
regarding those revisions.\2\ Although the methodology was used 
provisionally for assessing compliance in the FY 2016 ACD, the 
Commission stated that the methodology must be reviewed by the 
Commission through a docketed proceeding before it may be used in 
future ACDs. Proposal Two at 2; see FY 2016 ACD at 64.
---------------------------------------------------------------------------

    \2\ See Docket No. ACR2016, Annual Compliance Determination, 
March 28, 2017, at 63-65 (FY 2016 ACD). The Postal Service states 
that the Commission linked the potential filing of Proposal Two to 
discussion of certain other topics but that none of the issues 
raised by these topics directly relates to the merits of Proposal 
Two and views it as entirely independent of these other matters. 
Petition at 1.
---------------------------------------------------------------------------

    Proposal. Proposal Two implements the costing methodology developed 
in response to Chairman's Information Request No. 12, question 1, in 
the FY 2016 ACD process and consolidates the cost estimates for Target 
and Transition Countries. Proposal Two at 6. Proposal Two would also 
combine Inbound Letter Post from Target and Transition Countries at UPU 
rates reporting into a single ICRA Inbound Letter Post at UPU rates 
line separate from Canada. There would no longer be a need for the In-
Office Cost System analysis to separate costs into Target and 
Transition Countries in the Cost and Revenue Analysis Cost Segments tab 
of the Inputs file. The Canada and UPU separation remains in place. Id.
    Rationale and impact. The Postal Service states that continuing the 
Target Country and Transition Country distinction is not consistent 
with the current Mail Classification Schedule (MCS) and produces 
increasingly unreliable or misleading cost estimates due to the 
shrinking Transition Country classification. Id. The MCS makes no 
distinction between Target and Transition Countries regarding Inbound 
Letter Post. Id. The Postal Service believes that the current MCS 
classification is consistent with the fact that there is no costing 
reason to maintain a distinction between Target and Transition 
Countries. Id. at 7. The differences arising from the proposed 
modification are presented in a non-public file which was filed under 
seal with the Petition. Id.

III. Notice and Comment

    The Commission establishes Docket No. RM2017-6 for consideration of 
matters raised by the Petition. More information on 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 Two 
no later than July 31, 2017. Pursuant to 39 U.S.C. 505, Katalin K. 
Clendenin 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. RM2017-6 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 Two), filed June 8, 2017.
    2. Comments by interested persons in this proceeding are due no 
later than July 31, 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. 2017-12779 Filed 6-19-17; 8:45 am]
BILLING CODE 7710-FW-P