Federal Register, Volume 85 Issue 46 (Monday, March 9, 2020)

[Federal Register Volume 85, Number 46 (Monday, March 9, 2020)]
[Proposed Rules]
[Pages 13601-13602]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-04715]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2020-6; Order No. 5445]


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

DATES: Comments are due: April 2, 2020.

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 One
III. Notice and Comment
IV. Ordering Paragraphs

I. Introduction

    On February 28, 2020, 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 One.
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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 One), February 28, 2020 (Petition). 
The Postal Service filed a notice of filing of non-public materials 
relating to Proposal One. Notice of Filing of USPS-RM2020-6/NP1 and 
Application for Nonpublic Treatment, February 28, 2020.
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II. Proposal One

    Background. Proposal One would change the revenue, pieces, and 
weight (RPW) reporting methodology ``for measuring the national totals 
of non-contract mailpieces in domestic parcel mail categories bearing 
PC Postage indicia from postage evidencing systems.'' Petition, 
Proposal One at 1. The current RPW methodology for such mail activity 
uses several census sources combined with statistical elements from the 
Origin-Destination Information System--Revenue, Pieces, and Weight 
(ODIS-RPW) probability sampling system. Id. at 1, 3. Proposal One would 
replace the ODIS-RPW statistical sampling estimates with corresponding 
census transactional data. Id. at 1.
    The Postal Service lists several requests the Commission has 
approved for replacing statistical estimates with census data. Id. at 
1-2. Mailers may pay for and print postage using PC Postage, a third-
party vendor software approved by the Postal Service. Id. at 2. The 
Postal Service explains that customers use postage evidencing systems, 
which consist of postage meters and PC Postage products, to print 
evidence that required postage has been paid. Id. To indicate postage 
payment, postage evidencing systems print information-based indicia 
(IBI), which mailers place on a mailpiece or a label affixed to a 
mailpiece. Id. The National Meter Account Tracking System (NMATS) 
records PC Postage payment transactions. Id.
    The Postal Service runs an Automated Package Verification (APV) 
system using barcode data, in-line scales, and dimensional scanners on 
parcel sorters to compare PC Postage transaction information with 
packages run through the APV. Id. Based on this comparison, the Postal 
Service either charges customers' accounts for underpaid mailpieces or 
credits postage for overpaid mailpieces. Id.
    Proposal. Proposal One ``would switch reporting of PC Postage 
domestic parcel mail categories from sample data provided by the ODIS-
RPW sampling system to corresponding census data provided by PC Postage 
transactional data housed in NMATS.'' Id. at 4. Under

[[Page 13602]]

the current RPW methodology, ``ODIS-RPW data collectors record a PC 
Postage mailpiece as IBI and indicate the specific PC Postage 
manufacturer.'' Id. at 3. The Postal Service describes several 
limitations with the current methodology. Id. at 4. ODIS-RPW is a 
statistical sampling system producing point estimates with sampling 
errors, and ODIS-RPW tests may cause unintended errors in mail sampling 
and in recording data elements observed. Id. ODIS-RPW is unable to 
report on or adjust for underpaid and overpaid mail. Id. By contrast, 
the proposed methodology uses census transaction data that are not 
subject to sampling error and would likely produce the same or better 
data quality. Id.
    The Postal Service proposes to replace the ODIS-RPW sampling system 
(current methodology) with census transaction data (proposed 
methodology) no earlier than FY 2020, Quarter 3 to allow for full 
implementation of changes to the APV system that become effective on 
April 1, 2020. Id. at 4-5. It states that the proposed methodology 
``provides a complete census source of transactional-level data for PC 
Postage domestic mailpieces and makes appropriate APV adjustments at 
the record level.'' Id. at 5.
    Impact. To demonstrate the impact of the proposed methodology, the 
Postal Service submitted a report comparing FY 2019 RPW results using 
both the current methodology and proposed methodology.\2\ This report 
shows differences by major mail category if the proposed methodology 
replaced the current methodology in FY 2019. Id. at 6. For First-Class 
Package Service as well as Media and Library Mail, both revenue and 
volume would have increased. Id. For USPS Retail Ground and Priority 
Mail, both revenue and volume would have decreased. Id. For FY 2019, 
total mail volume would have increased by 0.1 percent, total pounds 
would have increased by 0.3 percent, and total revenue would have 
remained unchanged because the RPW report is tied to the Accounting 
Trial Balance. Id.
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    \2\ Id. at 5; see id. Attachment A. The Postal Service 
separately filed under seal as Library Reference USPS-RM2020-6/NP1 a 
non-public version of Attachment A that disaggregates data 
pertaining to Competitive products. Petition, Proposal One at 5 n.1.
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    The Postal Service explains that the differences in the report 
``are mainly due to differences in manual data collection (current 
methodology) compared to postage payment data (proposed methodology).'' 
Id. It notes that the differences in the report would not have been as 
large if the APV system were fully implemented at the beginning of FY 
2019. Id.
    The Postal Service concludes that the proposed methodology change 
``will result in the improved reporting of PC Postage non-contract 
revenue and volume both in terms of the level and measures of 
precision.'' Id. at 7. It adds that the proposed methodology change 
``will also allow for more granularity in the underlying report data.'' 
Id.

III. Notice and Comment

    The Commission establishes Docket No. RM2020-6 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 One no later 
than April 2, 2020. Pursuant to 39 U.S.C. 505, Jennaca D. Upperman 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. RM2020-6 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 One), filed February 28, 2020.
    2. Comments by interested persons in this proceeding are due no 
later than April 2, 2020.
    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.
Erica A. Barker,
Secretary.
[FR Doc. 2020-04715 Filed 3-6-20; 8:45 am]
 BILLING CODE 7710-FW-P