[Federal Register Volume 82, Number 194 (Tuesday, October 10, 2017)]
[Proposed Rules]
[Pages 46950-46951]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-21691]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2017-13; Order No. 4141]


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 an analytical method for use in periodic reporting (Proposal 
Nine). This document informs the public of the filing, invites public 
comment, and takes other administrative steps.

DATES: Comments are due: November 21, 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 Nine
III. Notice and Comment
IV. Ordering Paragraphs

I. Introduction

    On September 29, 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

[[Page 46951]]

determinations.\1\ The Petition identifies the proposed analytical 
method changes filed in this docket as Proposal Nine.
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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 Nine), September 29, 2017 
(Petition).
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II. Proposal Nine

    Background. The Postal Service proposes to change the current City 
Carrier Cost System (CCCS) methodology for estimating Delivery Point 
Sequence (DPS) volume proportions. Petition, Proposal Nine at 1. 
Presently, the Postal Service collects similar mail characteristic 
data, such as class and product data, for two different systems: CCCS 
and Origin-Destination Information System--Revenue, Pieces, and Weight 
(ODIS-RPW). Id. at 1-2. CCCS data are used primarily to distribute 
costs to products delivered by city letter routes. ODIS-RPW data are 
used to estimate volume and revenue.
    Currently, the Postal Service collects CCCS mail characteristics 
data manually. See id. at 3. In contrast, the Postal Service collects 
ODIS-RPW mail characteristics data from digitally captured images of 
letter and card shaped mail.\2\ The Postal Service states that the 
ODIS-RPW digital sampling method includes approximately 93 percent of 
CCCS sampled city letter routes. Petition, Proposal Nine at 2.
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    \2\ Id. at 2; see Docket No. RM2015-11, Order No. 2739, Order on 
Analytical Principles Used in Periodic Reporting (Proposal Three), 
September 30, 2015.
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    Proposal. The Postal Service proposes a methodology change to CCCS 
data collection procedures for Delivery Point Sequenced (DPS) mail. Id. 
at 1. The Postal Service seeks to use the ODIS-RPW digital data to 
enhance CCCS data for DPS mail destined for delivery by city letter 
routes. Id. at 2. The Postal Service explains that the proposal would 
eliminate the need to manually sample 93 percent of DPS mail for CCCS 
data collection purposes. Id.; see id. at 3. The Postal Service states 
that it would continue to manually sample mailpieces destined for city 
letter routes not included in ODIS-RPW's digital data collection, 
approximately seven percent of city letter routes. Id. at 3.
    Rationale and impact. The Postal Service states that the proposal 
would enhance the CCCS estimation of delivered DPS volumes. Id. The 
Postal Service explains that the ``automated, systematic method of 
collecting images of DPS letters and cards'' would reduce the risk of 
undetected sampling errors. Id. Additionally, the Postal Service notes 
that data collectors and their supervisors are able to review and 
analyze the ODIS-RPW data because the system retains the data for 30 
days. Id. at 3-4. The Postal Service also explains that the proposal 
would increase the number of DPS sampled mailpieces by approximately 
400 percent and the number of CCCS tests by approximately 300 percent. 
Id. at 4.
    The Postal Service discusses the likely effects of the proposed 
methodology change on product volume distribution and unit costs. Id. 
at 4-5. Based on these estimates, the Postal Service indicates minor 
differences in product volume distribution between the current and 
proposed CCCS methodologies. Id. at 4. These estimates also indicate 
that using ODIS-RPW digital data for DPS mail destined for city letter 
routes would result in very small estimated changes in unit costs or 
would leave unit costs unaffected. Id. at 4-5.

III. Notice and Comment

    The Commission establishes Docket No. RM2017-13 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 
Nine no later than November 21, 2017. Pursuant to 39 U.S.C. 505, 
Lyudmila Y. Bzhilyanskaya 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. RM2017-13 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 Nine), filed 
September 29, 2017.
    2. Comments by interested persons in this proceeding are due no 
later than November 21, 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. 2017-21691 Filed 10-6-17; 8:45 am]
 BILLING CODE 7710-FW-P