[Federal Register Volume 84, Number 136 (Tuesday, July 16, 2019)]
[Proposed Rules]
[Pages 33882-33883]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-15030]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2019-9; Order No. 5144]


Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Commission is acknowledging a recent filing requesting the 
Commission initiate a rulemaking proceeding to consider changes to 
analytical principles relating to periodic reports (Proposal Four). 
This document informs the public of the filing, invites

[[Page 33883]]

public comment, and takes other administrative steps.

DATES: Comments are due: August 26, 2019.

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 Four
III. Notice and Comment
IV. Ordering Paragraphs

I. Introduction

    On July 9, 2019, 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.\1\ The Petition identifies the proposed analytical 
changes filed in this docket as Proposal Four.
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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 Four), July 9, 2019 (Petition).
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II. Proposal Four

    Background. The Postal Service seeks to modify the costing 
methodology for the non-negotiated service agreement (NSA) portions of 
International Priority Airmail (IPA) and International Surface Airlift 
(ISAL) products. Petition, Proposal Four at 1. The Postal Service 
states that Proposal Four relates to the Commission's directive in the 
FY 2018 Annual Compliance Determination Report (FY 2018 ACD) for the 
Postal Service to ``consider the proposed change in analytical 
principles for PRIME enhanced payments, to ensure that the proposed 
distribution does not allocate . . . NSA-specific costs to the non-NSA 
IPA product.'' \2\ The Postal Service notes that although the FY 2018 
ACD directive focused on IPA product, ISAL is calculated in a parallel 
manner. Petition, Proposal Four at 1. As such, the Postal Service 
proposes changes to the costing methodology for both the IPA and ISAL 
products. Id.
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    \2\ Id. at 2. Docket No. ACR2018, Annual Compliance 
Determination Report, April 12, 2019, at 107 (FY 2018 ACD).
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    The Postal Service states that the current International Cost and 
Revenue Analysis (ICRA) model treats the non-NSA and NSA portions of 
IPA and ISAL as a single product (Total IPA and Total ISAL, 
respectively). Id. It is therefore unable to estimate the costs of the 
non-NSA portions of these products. See id. at 2-3.
    Proposal. The Postal Service proposes to replace the Total IPA and 
Total ISAL data in its System for International Revenue and Volume, 
Outbound (SIRVO) sampling system. Id. at 3. The new SIRVO data would be 
input to the ICRA model with only the non-NSA portion of the IPA and 
ISAL product. Id. The previous module calculations would be removed, 
the model would be rerun, and terminal dues would be re-benchmarked to 
the General Ledger amounts. Id.
    Rationale and impact. As the Commission noted in the FY 2018 ACD, 
the Postal Service's current methodology attributes too many costs to 
the non-NSA portion of IPA. FY 2018 ACD at 106-107. The Postal Service 
asserts that isolating the non-NSA portion of SIRVO for both IPA and 
ISAL will avoid attribution of NSA settlement expenses to the non-NSA 
portion of both products in the ICRA model. Petition, Proposal Four at 
4.
    The Postal Service states that the procedures proposed would more 
accurately reflect reduced unit costs and improved cost coverage for 
the non-NSA portions of both IPA and ISAL. Id. It also asserts that had 
the proposed methodology changes been in effect for FY 2018, revenues 
from the non-NSA portion of IPA would have covered its costs. Id.

III. Notice and Comment

    The Commission establishes Docket No. RM2019-9 for consideration of 
matters raised by the Petition. More information on the Petition may be 
accessed via the Commission's website at http://www.prc.gov. Interested 
persons may submit comments on the Petition and Proposal Four no later 
than August 26, 2019. Pursuant to 39 U.S.C. 505, the Commission 
designates Katalin K. Clendenin 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. RM2019-9 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 Four), filed July 9, 2019.
    2. Comments by interested persons in this proceeding are due no 
later than August 26, 2019.
    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.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2019-15030 Filed 7-15-19; 8:45 am]
 BILLING CODE 7710-FW-P