[Federal Register Volume 82, Number 150 (Monday, August 7, 2017)]
[Proposed Rules]
[Pages 36706-36707]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-16517]


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POSTAL REGULATORY COMMISSION

39 CFR part 3050

[Docket No. RM2017-10; Order No. 4023]


Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Commission is announcing 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 
Six). This document informs the public of the filing, invites public 
comment, and takes other administrative steps.

DATES: Comments are due: September 15, 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 Six
III. Notice and Comment
IV. Ordering Paragraphs

I. Introduction

    On July 28, 2017, the Postal Service filed a petition pursuant to 
39 CFR 3050.11 requesting the Commission to initiate an informal 
rulemaking proceeding to consider proposed changes to an analytical 
method related to periodic reports.\1\ The Petition identifies the 
proposed analytical method changes filed in this docket as Proposal 
Six.
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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 Six), July 28, 2017 (Petition).
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II. Proposal Six

    Background. In January 2016, the Postal Service removed the 
originating network distribution center and network distribution center 
presort price categories for Parcel Select and the return network 
distribution center price category for Parcel Return Service (PRS). 
Petition, Proposal Six at 1. The Postal Service states that ``[d]uring 
the process of modifying these models to remove the portions of the 
cost studies related to the discontinued price categories, the Postal 
Service detected some minor errors that required correction.'' Id. The 
Postal Service conducted a review of these models to ``ensure that they 
reflected current processing methods'' and determine if new data could 
be incorporated. Id.
    Proposal. The Postal Service seeks to revise the mail processing 
and transportation cost models for Parcel Select and PRS mail. The 
proposed changes update the cost models, correct errors, incorporate 
new data, and re-evaluate some assumptions and methodologies.
    Impact. The Postal Service estimates that its proposed changes will 
result in adjustments to both its mail processing and transportation 
models for Parcel Select and PRS mail.
    For mail processing costs, the revisions will decrease Parcel 
Select Ground Machinable unit cost estimates by 3.4 percent. Petition, 
Proposal Six at

[[Page 36707]]

15, 18. The proposed changes will result in six adjustments to PRS mail 
processing costs, including a decrease of more than 30 percent in 
return delivery unit oversize costs. Id.
    The transportation cost adjustments incorporate methodology changes 
approved by the Commission in Order No. 3973 \2\ with the cost model 
changes the Postal Service proposes in this docket. The resulting 
Parcel Select cost decreases range from 6.4 to 94.6 percent. Petition, 
Proposal Six at 15-16, 19. Additionally, the transportation cost for 
destination sectional center facility rates will increase by 193 
percent. Id. at 16, 19. The PRS costs for return sectional center 
facility will decrease by almost 26 percent. Id.
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    \2\ Docket No. RM2016-12, Order on Analytical Principles Used in 
Periodic Reporting (Proposal Four), June 22, 2017 (Order No. 3973).
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III. Notice and Comment

    The Commission establishes Docket No. RM2017-10 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 Six 
no later than September 15, 2017. Pursuant to 39 U.S.C. 505, Lyudmila 
Y. Bzhilyanskaya 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. RM2017-10 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 Six), filed July 
28, 2017.
    2. Comments by interested persons in this proceeding are due no 
later than September 15, 2017.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Lyudmila Y. 
Bzhilyanskaya 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. 2017-16517 Filed 8-4-17; 8:45 am]
 BILLING CODE 7710-FW-P