[Federal Register Volume 88, Number 34 (Tuesday, February 21, 2023)]
[Proposed Rules]
[Pages 10493-10494]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-03533]


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POSTAL REGULATORY COMMISSION

39 CFR part 3050

[Docket No. RM2023-4; Order No. 6441]


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: March 10, 2023.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at https://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 10, 2023, 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 10, 2023 (Petition).
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II. Proposal One

    Background. In FY 2017, the Postal Service proposed to improve the 
methodology used to calculate workshare discount passthrough 
percentages for certain USPS Marketing Mail pieces.\2\ The Commission 
approved Proposal Seven, which is the current methodology for 
calculating dropship workshare discounts for those USPS Marketing Mail 
pieces:
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    \2\ Docket No. RM2017-11, Petition of the United States Postal 
Service for the Initiation of a Proceeding to Consider Proposed 
Changes in Analytical Principles (Proposal Seven), July 28, 2017.
    \3\ Docket No. RM2017-11, Order on Analytical Principles Used in 
Periodic Reporting (Proposal Seven), November 20, 2017, at 4, 8 
(Order No. 4227). Subsequently, the Commission approved a slight 
modification to the calculation and reporting of passthroughs for 
USPS Marketing Mail. Docket No. RM2021-6, Order on Analytical 
Principles Used in Periodic Reporting (Proposal Three), November 4, 
2021 (Order No. 6032).
[GRAPHIC] [TIFF OMITTED] TP21FE23.000


[[Page 10494]]


    The Postal \3\ Service explains that calculating dropship 
passthrough percentages for some flat-shaped USPS Marketing Mail pieces 
is different than for most other products because these USPS Marketing 
Mail pieces have two available rates: (1) a per-piece rate for pieces 
up to a 4-ounce breakpoint weight and (2) a combined rate, per piece 
and per pound, for pieces heavier than the 4-ounce breakpoint weight. 
Petition at 2-3. According to the Postal Service, in most cases, it 
``can simply take the unit discount from the published benchmark price 
given on the relevant pricing table . . . and divide by the avoided 
cost.'' Id. at 3. In the case of these flat-shaped USPS Marketing Mail 
pieces, however, the Postal Service asserts that this approach is 
insufficient because the benchmark price depends on the weight of the 
piece. Id. at 3-4.
    Proposal. The Postal Service explains that in its next notice of 
rate adjustment for Market Dominant products, it intends to revise its 
pricing for flat-shaped USPS Marketing Mail pieces with piece and pound 
price components by using pricing structure ``based primarily upon 
pieces'' rather than one based upon pounds. Id. at 7. The Postal 
Service states that, under this revision, every piece, regardless of 
weight, will pay a fixed per-piece price that will vary based on entry. 
Id. The Postal Service also explains that pieces heavier than the 
breakpoint will pay a per-pound price for pounds above the breakpoint. 
Id. at 7-8. Moreover, all dropship discounts will be ``piece-price 
based[,]'' and pound prices will not vary by dropship entry point. Id. 
at 8. The Postal Service asserts that ``[b]y replacing this price 
structure with the new structure based upon pieces rather than pounds, 
workshare discount passthrough percentages cannot vary with the 
different weights of the pieces mailed because passthrough percentages 
will be calculated independently of the volumes and weights of pieces 
mailed.'' Id. at 10. Therefore, according to the Postal Service, ``the 
new pricing paradigm removes the underlying cause of the problem where 
it was difficult, and sometimes impossible, for the Postal Service to 
make passthrough percentages for some flat-shaped [USPS] Marketing Mail 
pieces comply'' with 39 CFR 3030.283 and 3030.284. Id.
    Impact. The Postal Service asserts that its proposal ``will allow 
the Postal Service to retire the current methodology for calculating 
workshare discount passthrough percentages at issue here and use the 
same methodology as it uses for most other products, dividing the per-
piece discount by the per-piece cost avoidance . . . .'' Id. at 8.

III. Notice and Comment

    The Commission establishes Docket No. RM2023-4 for consideration of 
matters raised by the Petition. More information on the Petition may be 
accessed via the Commission's website at https://www.prc.gov. 
Interested persons may submit comments on the Petition and Proposal One 
no later than March 10, 2023. Pursuant to 39 U.S.C. 505, Christopher C. 
Mohr 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. RM2023-4 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 10, 2023.
    2. Comments by interested persons in this proceeding are due no 
later than March 10, 2023.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Christopher 
C. Mohr 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. 2023-03533 Filed 2-17-23; 8:45 am]
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