[Federal Register Volume 84, Number 166 (Tuesday, August 27, 2019)]
[Proposed Rules]
[Pages 44797-44798]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-18364]
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POSTAL REGULATORY COMMISSION
39 CFR Part 3050
[Docket No. RM2019-11; Order No. 5205]
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 Six). This
document informs the public of the filing, invites public comment, and
takes other administrative steps.
DATES: Comments are due: September 20, 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 Six
III. Notice and Comment
IV. Ordering Paragraphs
I. Introduction
On August 20, 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 the
Postal Service's periodic reports.\1\ The Petition identifies the
proposed analytical 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), August 20, 2019 (Petition).
The Postal Service also filed a notice of filing non-public material
relating to Proposal Six. Notice of Filing of USPS-RM2019-11/NP1 and
Application for Nonpublic Treatment, August 20, 2019.
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II. Proposal Six
Background. Proposal Six would change the methodology for reporting
revenue, pieces and weight for Priority Mail Express International
(PMEI) in the Postal Service's Revenue, Pieces and Weight (RPW) report
to improve it by incorporating additional census data sources and
adjustments at lower levels of detail.\2\ In Docket No. RM2016-7, the
Commission accepted the Postal Service's proposal to redesign the
methodology for producing RPW estimates filed quarterly with the
Commission for Outbound First-Class Mail International, Outbound
Priority Mail International, First-Class Package International Service,
Outbound Direct Sacks (M-bags), and Free Mail by harnessing detailed
data from improved census systems.\3\ Proposal Six seeks to extend this
redesigned methodology to PMEI. Petition, Proposal Six at 1-2.
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\2\ The RPW system used to develop this report was detailed in
witness Pafford's testimony (USPS-T-3) in Docket No. R2006-1.
Petition, Proposal Six at 1.
\3\ See Docket No. RM2016-7, Order Approving Analytical
Principles Used in Periodic Reporting (Proposal One), July 17, 2016
(Order No. 3377).
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The current PMEI process was designed to provide accurate data at
the national level. Id. at 2. It combines data from three census
systems. Id. PostalOne! data are used at the national product level for
PMEI permit-imprint activity where data are split between Negotiated
Service Agreements (NSA) and non-NSA mailings by product and price
group as recorded on Postage Statement PS 3700, Parts G and H. Id. PC
Postage data are used at the national product level for PMEI NSA
activity.\4\ Product Tracking and Reporting (PTR) \5\ data are used at
the national product level for PMEI retail activity. Id.
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\4\ PC Postage is Postal Service approved third-party vendor
software that mailers can use to pay for and print their postage
using a computer, printer, and internet connection. Id.
\5\ PTR is the database that stores tracking scan data for all
barcoded packages from acceptance to delivery. Id.
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Proposal. The Postal Service states it ``would like to use the
proposed census data enhancements to estimate revenue, pieces and
weight in RPW for PMEI using the new methodology, which includes much
greater detail below the national and price-group level.'' Id. at 2-3.
The proposed reporting process would extend the use of PostalOne!
and PC Postage census data while adding the use of Point-of-Sale (POS),
Click and Ship (CNS), Self-Service Kiosk (SSK) and Contract Postal Unit
(CPU) census data. Id. at 3. Census data sources used for the proposed
PMEI RPW reporting include POS, CNS, SSK, and CPU census revenues,
pieces and weight that will be used directly in RPW at the destination-
country and product level. PC Postage census data would be used
directly in RPW; NSA and non-NSA. All PC Postage census data would be
reported at the product and destination-country level. PostalOne! PMEI
permit-imprint revenues, pieces and weight would continue to be used
directly in the RPW. Id.
Rationale and impact. The Postal Service states, ``[t]he accuracy
of outbound RPW international product and underlying destination-
country reporting can be substantially improved using the proposed PMEI
RPW reporting approach.'' Id. at 3. It states that it will improve
``the destination-country level
[[Page 44798]]
estimates used by the Postal Service for monitoring business
relationships, product performance, and growth opportunities.'' Id. at
1. It further states, ``[t]he proposed changes involve the reporting of
the outbound international RPW Competitive category of `Outbound
International Expedited Services.' '' Id.
The Postal Service attached a public Excel file to the Proposal
comparing the FY 2019 Quarter 3 Year-To-Date revenues, volumes and
weights using the proposed PMEI method (``Proposed'' column) to the
current PMEI method (``Current'' column).\6\ Other columns present the
amounts and percent changes to the current method. Id. The Postal
Service notes that ``FY2019 `Total All Revenue' is unchanged, while
`Total All Mail' volume decreases 8.0 million pieces (0.0 percent)''
and that `` `Total Competitive Revenue' increases $4.8 million or 0.0
percent with a corresponding decrease of $4.8 million or 0.0 percent
for `Total Market Dominant Revenue.' '' Id. The Postal Service states,
``[t]here are small changes to domestic products and services that,
through operation of the Book Revenue Adjustment Factor (BRAF), are
affected by the redistribution of international outbound revenue. The
RPW reporting process ensures that the sum of product revenues `ties
out' to Accounting Trial Balance revenue.'' Id.; see n.4.
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\6\ Id. at 4. The Postal Service has also separately filed under
seal (as Library Reference USPS-RM2019-11/NP1) a restricted version
of the Excel impact file that disaggregates data pertaining to
competitive products.
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The Postal Service states that the Excel file demonstrates
``competitive international products, `Outbound International Expedited
Services' or PMEI increases $8.7 million (12.0 percent), 0.122 million
pieces (14.3 percent), and 0.698 million pounds (14.1 percent).'' Id.
Additionally, Other Outbound International Mail revenue, pieces, and
weight changes amount to 0.0 percent. Id. It concludes, `` `Outbound
Priority Mail International' or PMI revenue increases $0.199 million
(0.1 percent), while volume and weight remain unchanged.'' Id. at 4-5.
The Postal Service states, ``[t]he impact to PMEI reflects changes
in the use of census data'' and that ``most of the difference is caused
by certain limitations in the PTR reporting system in terms of
isolating NSA from non-NSA PC Postage transactions, and the treatment
of this in the RPW report process.'' Id. at 5. It states that because
PTR tracks package counts, individual package revenue and weight are
not always available, the proposal switches directly to financial
system reporting sources to avoid these issues.\7\ The Postal Service
concludes that, ``the Proposed PMEI approach will result in the
improved reporting of PMEI revenues and volumes both in terms of the
level and measures of precision. The new system will also allow for
more granularities in the estimates by destination country, thereby
providing more information for making international product business
decisions.'' Id.
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\7\ The Postal Service states, ``[t]he impacts to `Other
Outbound International Mail' and PMI, as well as ``Other Domestic
Ancillary Services'' are unrelated to this Proposal regarding the
new approach to PMEI, and instead reflect Quarter 1 updates to
PostalOne! data and the treatment of domestic NSA extra services,
respectively.'' Id.
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III. Notice and Comment
The Commission establishes Docket No. RM2019-11 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 Six
no later than September 20, 2019. Pursuant to 39 U.S.C. 505, the
Commission designates Jennaca D. Upperman 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. RM2019-11 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 August
20, 2019.
2. Comments by interested persons in this proceeding are due no
later than September 20, 2019.
3. Pursuant to 39 U.S.C. 505, the Commission appoints Jennaca D.
Upperman 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.
Darcie S. Tokioka,
Acting Secretary.
[FR Doc. 2019-18364 Filed 8-26-19; 8:45 am]
BILLING CODE 7710-FW-P