[Federal Register Volume 86, Number 191 (Wednesday, October 6, 2021)]
[Proposed Rules]
[Pages 55548-55549]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-21757]


=======================================================================
-----------------------------------------------------------------------

POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2021-9; Order No. 5992]


Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: The Commission is acknowledging a recent filing requesting

[[Page 55549]]

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: October 28, 2021.

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 September 28, 2021, 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 Six.
---------------------------------------------------------------------------

    \1\ Petition of the United States Postal Service for the 
Initiation of a Proceeding to Consider Proposed Changes in 
Analytical Principles (Proposal Six), September 28, 2021 (Petition).
---------------------------------------------------------------------------

II. Proposal Six

    Background. The Postal Service estimates the mail processing costs 
avoided due to mailer workshare activities for First-Class Mail presort 
letters and cards using the First-Class Mail letters mail processing 
cost model. Petition, Proposal Six at 1. The Postal Service determines 
the avoided costs for each workshare discount through modeling of the 
typical mail processing flow of First-Class Mail presort letters and 
cards by rate category. Id.
    Historically, the Postal Service has offered a single price for 
First-Class Mail nonautomation presort categories. Id. However, in 
Docket No. R2021-2, the Postal Service restructured its pricing for the 
First-Class Mail presort categories, creating separate prices for 
Nonmachinable 5-Digit letters, Nonmachinable 3-Digit Letters, 
Nonmachinable mixed area distribution center (MADC) Letters, 
Nonautomation Machinable automated area distribution center (AADC) 
Letters, and Nonautomation Machinable mixed automation area 
distribution center (MAADC) Letters.\2\
---------------------------------------------------------------------------

    \2\ Docket No. R2021-2, United States Postal Service Notice of 
Market-Dominant Price Change, May 28, 2021, at 8-9.
---------------------------------------------------------------------------

    The Commission accepted the proposed changes to the Mail 
Classification Schedule associated with this new rate structure but 
determined that the Metered Letters benchmark was not appropriate for 
determining the costs avoided by the new Nonautomation Machinable 
Letters Mixed AADC and Nonmachinable Letters Mixed area distribution 
center (ADC) workshare discounts.\3\ For this reason, the Commission 
directed the Postal Service develop a methodology to disaggregate the 
Metered Letters benchmark into the machinable and nonmachinable 
components within 90 days of Order No. 5937. Id.
---------------------------------------------------------------------------

    \3\ Docket No. R2021-2, Order on Price Adjustments for First-
Class Mail, USPS Marketing Mail, Periodicals, Package Services, and 
Special Services Products and Related Mail Classification Changes, 
July 19, 2021, at 82 (Order No. 5937).
---------------------------------------------------------------------------

    Proposal. With Proposal Six, the Postal Service seeks to revise the 
First-Class Mail letters mail processing cost model to disaggregate 
metered mail into machinable and nonmachinable categories. Petition, 
Proposal Six at 2. Citing data limitations, the Postal Service proposes 
to disaggregate the costs between these pricing categories through 
modeling. Id. at 3. The Postal Service notes that ``[t]he same 
methodology that is used to disaggregate [In-Office Cost System]-
derived mail processing unit costs for First-Class presorted letter 
costs by rate category is used to disaggregate metered mail letter 
costs by machinability in this proposal.'' Id. The Postal Service's 
adjusted model is included with the Petition. See Excel file USPS-FY20-
10 FCM Letters Prop 6.xlsx.
    Impact. The impacts of Proposal Six are outlined in Table 1 and 
Table 2 of the proposal. Petition, Proposal Six at 4-5. The Postal 
Service estimates that the worksharing related unit costs will be 
13.123 cents for Machinable Metered Letters and 44.824 cents for 
Nonmachinable Metered Letters. Id. at 4. Avoided costs will decrease 
$0.001 for Automation Mixed AADC Letters and $0.002 for Nonautomation 
Machinable Mixed AADC Letters. Id. at 5. The Postal Service estimates 
$0.101 in avoided costs for Nonautomation Nonmachinable Mixed ADC 
Letters. Id.

III. Notice and Comment

    The Commission establishes Docket No. RM2021-9 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 October 28, 2021. 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. RM2021-9 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 September 28, 2021.
    2. Comments by interested persons in this proceeding are due no 
later than October 28, 2021.
    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.
Erica A. Barker,
Secretary.
[FR Doc. 2021-21757 Filed 10-5-21; 8:45 am]
BILLING CODE 7710-FW-P