[Federal Register Volume 84, Number 136 (Tuesday, July 16, 2019)]
[Proposed Rules]
[Page 33882]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-15031]



[[Page 33882]]

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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2019-8; Order No. 5145]


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

DATES: Comments are due: August 19, 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 Three
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 Three.
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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 Three), July 9, 2019 (Petition).
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II. Proposal Three

    Background. Proposal Three relates to the methodology used to 
distribute enhanced payments made under the PRIME agreement. Petition, 
Proposal Three at 1. PRIME is an international agreement among 
approximately 141 designated postal operators working together in the 
tracked packet area. Id. n.1. Under PRIME, designated postal operators 
provide each other with enhanced payments, in addition to the basic per 
item payment, for the timely return of scans. Id.
    The Postal Service used a new methodology to distribute these PRIME 
enhanced payments in its most recent International Cost and Revenue 
Analysis (ICRA).\2\ In the FY 2018 Annual Compliance Determination, the 
Commission accepted the Postal Service's distribution of the payments 
but determined that the Postal Service's revised methodology ``must be 
thoroughly reviewed by the Commission and stakeholders through a 
docketed proceeding before it can be used in future ACRs.'' \3\ 
Accordingly, the Commission directed ``the Postal Service to file a 
petition for the initiation of a proceeding to review this proposed 
change in analytical principles within 90 days'' of the issuance of the 
FY 2018 ACD. Id.
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    \2\ Docket No. ACR2018, USPS-FY18-NP2--FY 2018 International 
Cost and Revenue Analysis (ICRA) Report (Revised 2/11/19), February 
11, 2019 (February 11 ICRA).
    \3\ Docket No. ACR2018, Annual Compliance Determination, April 
12, 2019, at 105 (FY 2018 ACD).
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    Proposal. The Postal Service's proposal seeks to revise the 
methodology used to distribute PRIME enhanced payments. Under the 
existing methodology, PRIME costs are distributed entirely to First-
Class Package International Service (FCPIS) because the costs are 
treated as an ``indistinguishable aggregate.'' Petition, Proposal Three 
at 1.
    The Postal Service reports that it is now possible to distribute 
PRIME costs across products and between Negotiated Service Agreement 
(NSA) and non-NSA FCPIS. Id. This is accomplished by making use of the 
``UX'' key for tracked mail in the System for International Revenue and 
Volume, Outbound (SIRVO). Id. at 3. As a result, Proposal Three expands 
the distribution of PRIME costs beyond FCPIS. Id.
    Rationale and impact. The Postal Service states that the current 
methodology ``does not take advantage of the additional information'' 
provided by the UX key for tracked mail in SIRVO. Id. The Postal 
Service reports that the existing methodology allocates all PRIME costs 
to the non-NSA FCPIS settlements and unitizes those charges based on 
non-NSA volumes. Id. The Postal Service concludes that ``[t]his 
essentially set the unitized PRIME payments too high.'' Id. Proposal 
Three seeks to distribute these amounts ``based on proportions of UX 
across products and between NSA and non-NSA FCPIS.'' Id.
    The impact of Proposal Three is that costs are shifted away from 
FCPIS to Outbound Single-Piece First-Class Mail, Priority Mail Express 
International, International Priority Airmail (IPA), International 
Direct Sacks--M-Bags, and associated Outbound NSAs. Id. at 4.

III. Notice and Comment

    The Commission establishes Docket No. RM2019-8 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 Three no later 
than August 19, 2019. Pursuant to 39 U.S.C. 505, Katalin K. Clendenin 
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. RM2019-8 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 Three), filed July 9, 2019.
    2. Comments by interested persons in this proceeding are due no 
later than August 19, 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. 2019-15031 Filed 7-15-19; 8:45 am]
 BILLING CODE 7710-FW-P