[Federal Register Volume 84, Number 186 (Wednesday, September 25, 2019)]
[Proposed Rules]
[Pages 50353-50354]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-20738]


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POSTAL REGULATORY COMMISSION

39 CFR part 3050

[Docket No. RM2019-14; Order No. 5238]


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

DATES: Comments are due: October 16, 2019.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at http://www.prc.gov. Those who cannot submit

[[Page 50354]]

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 Eight
III. Notice and Comment
IV. Ordering Paragraphs

I. Introduction

    On September 18, 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 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), September 18, 2019 
(Petition). The Postal Service filed a notice of filing of non-
public materials relating to Proposal Eight. Notice of Filing of 
USPS-RM2019-14/NP1 and Application for Nonpublic Treatment, 
September 18, 2019.
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II. Proposal Eight

    Background. Proposal Eight relates to modifications to the Parcel 
Select/Parcel Return Service (PRS) mail processing and transportation 
cost models. Petition, Proposal Eight at 1. The cost models were last 
presented in Docket No. ACR2018, USPS-FY-18-NP15 and USPS-FY18-NP16, 
respectively. Id. The proposed modifications to the mail processing 
cost model are based on two observations made during the preparation of 
Docket No. ACR2017 materials: (1) A Parcel Select mail flow was missing 
from the cost model; and (2) the Postal Service had implemented new PRS 
processing methods for return delivery unit (RDU) and return sectional 
center facility (RSCF) mailpieces. Id.
    With respect to the transportation cost model, the Postal Service 
explains that prior to being classified as a competitive product, 
Parcel Select Lightweight (PSLW) volume was part of Marketing Mail 
parcels and transportation costs estimates for that mail were included 
in the cost model presented mostly recently in Docket No. ACR2018. Id. 
The Postal Service states that there have been no PSLW transportation 
cost estimates presented in Annual Compliance Report dockets since PSLW 
was reclassified as a competitive product. Id.
    Proposal. The Postal Service proposes two modifications to the 
Parcel Select/PRS mail processing cost model: (1) A machinable 
destination sectional center facility (DSCF) 3-Digit presort mail flow 
worksheet be added to the model to accommodate negotiated service 
agreements (NSAs); and (2) the results from a 2018 PRS field study be 
incorporated into the model. Id. at 2. The Postal Service also proposes 
that the Parcel Select/PRS transportation cost model be modified to 
incorporate PSLW into the analysis. Id. at 11.
    Rationale and impact. The Postal Service states that the price list 
does not contain published prices for machinable 3-Digit DSCF presort 
parcels but there are some NSAs that include machinable DSCF 3-Digit 
presort parcels. Id. at 2. The Postal Service explains that the 
addition of a machinable DSCF 3-Digit presort model cost estimate to 
the mail processing cost model would increase that portion of the DSCF 
costs, which results in a lower Cost and Revenue Analysis (CRA) 
proportional adjustment factors. Id. at 13. Due to the lower 
proportional adjustment factor, the mail processing unit cost estimates 
for all other Parcel Select price categories would decrease roughly one 
percent. Id.
    In 2018, the Postal Service conducted a field study to collect PRS-
specific input data in order to improve the PRS portion of the cost 
model. Id. at 4. The Postal Service states that PRS mail processing 
unit cost estimates have historically been developed using proxy input 
data. Id. The Postal Service explains that the proposed treatment of 
the data collected from the field study is consistent with past 
rulemaking dockets where the proposals included productivity estimates 
that were collected manually in the field. Id. at 7. In describing the 
impact of the proposed modification, the Postal Service states that, in 
total, the PRS mail processing cost model changes would result in a 
lower proportional CRA adjustment factor which results in decreases to 
the Full Network machinable, nonmachinable, and oversize mail 
processing unit cost estimates. Id. at 14.
    Finally, the Postal Service states that the addition of PSLW to the 
transportation cost model would have no impact on the Parcel Select/PRS 
transportation cost-per-cubic-foot estimates. Id.

III. Notice and Comment

    The Commission establishes Docket No. RM2019-14 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 
Eight no later than October 16, 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. RM2019-14 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 
September 18, 2019.
    2. Comments by interested persons in this proceeding are due no 
later than October 16, 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.
Darcie S. Tokioka,
Acting Secretary.
[FR Doc. 2019-20738 Filed 9-24-19; 8:45 am]
 BILLING CODE 7710-FW-P