[Federal Register Volume 82, Number 151 (Tuesday, August 8, 2017)]
[Proposed Rules]
[Pages 37036-37037]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-16611]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2017-12; Order No. 4025]


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 
Eight). This document informs the public of the filing, invites public 
comment, and takes other administrative steps.

DATES: Comments are due: September 18, 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: 

[[Page 37037]]

Table of Contents

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

I. Introduction

    On July 31, 2017, the Postal Service filed a petition pursuant to 
39 CFR 3050.11 requesting that the Commission initiate a rulemaking 
proceeding to consider changes to analytical principles relating to 
periodic reports and compliance determinations.\1\ The Petition 
identifies the proposed analytical method changes filed in this docket 
as Proposal Eight.
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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 Eight), July 31, 2017 (Petition).
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II. Proposal Eight

    The Postal Service explains that, since the passage of the Postal 
Accountability and Enhancement Act (PAEA) in 2006, it has been applying 
the ``60 percent rule'' codified in 39 U.S.C. 3626(a)(6)(A), to USPS 
Marketing Mail (formerly Standard Mail) overall. Petition, Proposal 
Eight at 1. It now proposes to return to its pre-PAEA application of 
the 60 percent rule at the subclass level, i.e. to USPS Marketing Mail 
Regular and USPS Marketing Mail Enhanced Carrier Route (ECR) 
separately. Id.
    Background. Commonly referred to as the ``60 percent rule'', 
section 1(d) of Public Law 106-384 was promulgated in October 27, 2000, 
and codified in 39 U.S.C. 3626(a)(6)(A). It states that for USPS 
Marketing Mail, the ``average (Nonprofit) revenue per piece . . . shall 
be equal, as nearly as practicable, to 60 percent of the estimated 
average revenue per piece to be received from the most closely 
corresponding regular-rate subclass of mail.'' Id. at 2 (emphasis 
omitted) (footnote omitted). After the PAEA was passed in 2006, the 
term ``subclasses'' was no longer explicitly defined in the Mail 
Classification Schedule, and the Postal Service began applying the ``60 
percent rule'' at the class level in Docket No. R2008-1. Id.
    The Postal Service states that, although application at the class 
level was simpler, it also had the unintended effect of giving relative 
price relief to Nonprofit mail. Because Nonprofit mail is less 
concentrated in USPS Marketing Mail ECR, both USPS Regular and USPS ECR 
generate a lower average revenue per piece ratio than USPS Marketing 
Mail overall. Id.
    Proposal. The Postal Service proposes to return to its pre-PAEA 
practice of applying the ``60 percent rule'' to USPS Marketing Mail 
Regular and USPS Marketing Mail ECR separately. Id. at 5. It asserts 
that this would be consistent with the language of the statute and in 
accordance with the pre-PAEA subclass definitions. Id.
    Impacts. The Postal Service states that application of the rule on 
the subclass level would reverse the downward shift in the two 
subclass-level Nonprofit-to-Commercial average revenue per piece 
rations that occurred when the Postal Service switched to applying the 
rule at the class level. Id. As applied to the prices from Docket No. 
R2017-1, it calculates that (on a revenue-neutral basis), a +3.33 
percent price change would be required for Regular Nonprofit Mail and a 
-0.47 percent change would be needed for Regular Commercial. For ECR 
Mail, the required changes would amount to a 6.94 percent increase in 
nonprofit prices and a 0.27 percent decrease for Commercial. Id. If 
adopted, the Postal Service would aim to phase in the price changes to 
avoid rate shock. Id.

III. Notice and Comment

    The Commission establishes Docket No. RM2017-12 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 
Eight no later than September 18, 2017. Pursuant to 39 U.S.C. 505, 
Richard A. Oliver is designated as an 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. RM2017-12 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 Eight), filed July 
31, 2017.
    2. Comments by interested persons in this proceeding are due no 
later than September 18, 2017.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Richard A. 
Oliver 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. 2017-16611 Filed 8-7-17; 8:45 am]
 BILLING CODE 7710-FW-P