[Federal Register Volume 85, Number 177 (Friday, September 11, 2020)]
[Proposed Rules]
[Pages 56192-56193]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-17663]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2020-12; Order No. 5622]


Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Commission initiates an informal rulemaking proceeding to 
change how the Postal Service determines incremental costs and how it 
accounts for peak-season costs in its periodic reports. This notice 
informs the public of the filing, invites public comment, and takes 
other administrative steps.

DATES: Comments are due: September 8, 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 Five
III. Notice and Comment
IV. Ordering Paragraphs

I. Introduction

    On August 5, 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 Five.
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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 Five), August 5, 2020 (Petition). 
The Postal Service also filed a notice of filing of non-public 
material relating to Proposal Five. Notice of Filing of USPS-RM2020-
12-NP1 and Application for Nonpublic Treatment, August 5, 2020.
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II. Proposal Five

    Background. Proposal Five relates to the Revenue Piece and Weight 
(RPW) reporting methodology for measuring the national totals of non-
Negotiated Service Agreement (NSA) mailpieces in international outbound 
product categories bearing PC Postage indicia from postage evidencing 
systems. Petition, Proposal Five at 1. The international outbound 
products at issue include Priority Mail International (PMI) and First-
Class Package International Service (FCPIS). Id. Currently, the Postal 
Service uses several census sources in combination with statistical 
sampling estimates from the System for International Revenue and 
Volume, Outbound, and International Origin Destination Information 
System (SIRVO) to report the national totals of non-NSA mailpieces in 
outbound international product categories. Id. at 2. The Postal Service 
also filed a detailed assessment of the impact of the proposal on 
particular products in a non-public attachment accompanying this 
proposal.\2\
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    \2\ See Library Reference USPS-RM2020-12-NP1.
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    Proposal. The Postal Service's proposal seeks to replace the SIRVO 
sampling data used in the existing RPW reporting methodology for 
international

[[Page 56193]]

outbound non-NSA parcel mail categories bearing PC Postage indicia with 
census data provided by reports from the Accounting Data Mart (ADM). 
Petition, Proposal Five at 4. The Postal Service notes that ``[d]ata 
collection is always challenging in the fast-moving timeframe around 
mail arrival to U.S. International Service Centers and distribution to 
outbound international flights, which is when SIRVO tests are 
conducted.'' Id. at 3. For this reason, ``[u]nintended errors could 
occur in the sampling of mail, and in the recording of the data 
elements observed[,]'' resulting in SIRVO point estimates with sampling 
errors that are not present in census data. Id.
    Rationale and impact. The Postal Service states that the proposed 
methodology ``provides a complete census source of transactional-level 
data for PC Postage international outbound mailpieces.'' Id. at 4. The 
Postal Service contends that the proposed methodology will provide 
``equal or improved data quality.'' Id. at 3. The Postal Service avers 
that the proposed methodology 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 6. Furthermore, the Postal 
Service argues that the proposed methodology ``will also allow for more 
granularity in the underlying report data.'' Id.
    The Postal Service reports that its examination of potential 
changes suggests that the proposed methodology would directly affect 
two major international outbound mail categories: PMI and FCPIS. Id. at 
5. Outbound PMI revenue would increase 2.3 percent and volume would 
decrease 5.8 percent. Id. FCPIS would experience revenue and volume 
changes of the ``same general percentage magnitude as Outbound Priority 
Mail International, but in each instance in the opposite direction.'' 
Id.
    The Postal Service also notes indirect effects of the proposal 
which would occur when estimates of mail categories other than PMI and 
FCPIS are scaled to the remaining known dispatch weights. Id. Among 
those, Outbound First-Class Mail International revenue would decrease 
4.8 percent and volume would decrease by 5.7 percent. Id. Additionally, 
U.S. Postal Service Mail, Free Mail, and International Ancillary 
Services would experience indirect effects on revenue and volume. Id. 
at 5-6. The Postal Service notes that ultimately, indirect effects of 
the proposal will be spread over other types of mail, not listed above. 
Id. at n.4. The Postal Service reports that ``[o]verall, outbound 
international revenue and volume for Quarters 1 and 2 of FY 2020 would 
have been reduced by 0.3 percent and 2.7 percent, respectively.'' Id. 
at 6 (footnote omitted).

III. Notice and Comment

    The Commission establishes Docket No. RM2020-12 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 
Five no later than September 8, 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. RM2020-12 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 Five), filed August 
5, 2020.
    2. Comments by interested persons in this proceeding are due no 
later than September 8, 2020.\3\
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    \3\ The Commission reminds interested persons that its revised 
and reorganized Rules of Practice and Procedure became effective 
April 20, 2020, and should be used in filings with the Commission 
after April 20, 2020. The new rules are available on the 
Commission's website and can be found in Order No. 5407. See Docket 
No. RM2019-13, Order Reorganizing Commission Regulations and 
Amending Rules of Practice, January 16, 2020 (Order No. 5407).
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    3. Pursuant to 39 U.S.C. 505, the Commission appoints Jennaca 
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. 2020-17663 Filed 9-10-20; 8:45 am]
BILLING CODE 7710-FW-P