[Federal Register Volume 89, Number 154 (Friday, August 9, 2024)]
[Proposed Rules]
[Pages 65302-65303]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-17156]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2024-2; Order No. 7321]


Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Commission is acknowledging a recent Postal Service 
response to Order No. 7049 regarding proposed changes to analytical 
principles relating to periodic reports (Proposal Eight). This document 
informs the public of the filing, invites public comment on the Postal 
Service response, and takes other administrative steps.

DATES: Comments are due: August 27, 2024.

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. Background
III. Notice of Filing and Related Proceeding
IV. Ordering Paragraphs

I. Introduction

    On July 1, 2024, the Postal Service filed a response to Order No. 
7049 \1\ regarding proposed changes to analytical principles relating 
to periodic reports (Proposal Eight).\2\ The Commission reopens this 
docket for the limited purpose of considering the issues raised by the 
Response and invites public comments on the Response.
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    \1\ Order Approving Analytical Principles Used in Periodic 
Reporting (Proposal Eight) with Two Modifications, April 18, 2024 
(Order No. 7049).
    \2\ Response of the United States Postal Service to Order No. 
7049 Regarding Rural Carrier Costing, July 1, 2024 (Response). The 
Postal Service also filed a notice of filing of non-public materials 
relating to the Response. Notice of Filing of USPS-RM2024-2-NP5 and 
Application for Nonpublic Treatment, July 1, 2024.
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II. Background

    In Order No. 7049, the Commission approved the changes in 
analytical principles proposed by the Postal Service in Proposal Eight 
with two modifications: (1) the aggregated coverage model specification 
for box time was approved rather than the Three-Group Coverage Model; 
and (2) the errors identified in the Postal Service's costing files 
were corrected as discussed in the order. Order No. 7049 at 37. The 
Commission also ordered the Postal Service to conduct additional 
research to justify the groupings presented in the Three-Group Coverage 
Model or other specification of its choosing for estimating the volume 
variability of box time, as well as to report the findings of such 
research by July 1, 2024. Id. In addition, the Commission ordered the 
Postal Service to provide by July 1, 2024 a detailed description of how 
it plans to assess the potential partial volume variabilities of 
sequences 026, 049, 051, 052, 037, 038, 083, 053, and 063. Id.
    On July 1, 2024, the Postal Service filed the Response addressing 
the two research topics ordered by the Commission in Order No. 7049. 
Regarding the first research topic, the Postal Service now proposes a 
Two-Group Coverage Model for estimating the volume variability of box 
time, grouping products based on whether they have homogeneous high or 
low coverage-causing characteristics on box time. See Response at 3-14. 
Based on the Postal Service's research, it proposes that the high 
coverage impact group consists of delivery point sequence (DPS) 
letters, carrier route flats, walk-sequence saturation (WSS) letters, 
WSS flats, boxholder letters, and boxholder flats. Id. at 14. The 
Postal Service also proposes that the low coverage impact group 
consists of random letters, random flats, mailbox parcels, door 
parcels, locker parcels, and accountables. Id. The Postal Service then 
calculates a variability of 33.66 percent for the high coverage impact 
group and a variability of 5.63 percent for the low coverage impact 
group. Id. at 17. It then proposes 39.28 percent as the volume 
variability for box time. Id. at 33, Table 15. The Postal Service 
states the Two-Group Coverage Model is preferrable over the aggregated 
coverage

[[Page 65303]]

model approved in Order No. 7049 for estimating the volume variability 
of box time because it ``adds precision to the estimating by ferreting 
out the different effects by using groupings of mail products that have 
similar coverage-causing characteristics.'' Id. at 17.
    Regarding the second research topic, the Postal Service proposes 
the following volume variabilities for the nine sequences ordered by 
the Commission in Order No. 7049 for it to research:

------------------------------------------------------------------------
                                                        Proposed volume
                       Sequence                         variability  (%)
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026..................................................              29.48
037..................................................              84.32
038..................................................              84.66
049..................................................              29.48
051..................................................              84.32
052..................................................              84.66
053..................................................              84.66
063..................................................               5.96
083..................................................              46.05
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Source: Response at 33, Table 15; see generally, id. at 18-32.

    Chairman's Information Request No. 4 (CHIR No. 4) is issued today, 
July 30, 2024, concerning the Postal Service's Response and the Postal 
Service's response to CHIR No. 4 is due August 13, 2024.\3\
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    \3\ Chairman's Information Request No. 4, July 30, 2024.
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III. Notice of Filing and Related Proceeding

    The Commission hereby informs the public of the Postal Service's 
Response and of the reopening of Docket No. RM2024-2 for the limited 
purpose of considering issues raised by the Response. More information 
on the Response and additional filings in this proceeding may be 
accessed via the Commission's website at http://www.prc.gov. Any 
material filed in this proceeding that is subject to an application for 
non-public treatment (filed under seal) may be accessed via the 
Commission's website only by account holders granted access by an order 
or in accordance with 39 CFR 3011.300(a). The Commission's rules on 
non-public materials (including access to material filed under seal) 
appear in 39 CFR part 3011.
    Interested persons may submit comments on the Response no later 
than August 27, 2024. Pursuant to 39 U.S.C. 505, Nikki Brendemuehl 
continues to serve 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 reopens Docket No. RM2024-2 for the limited 
purpose of considering issues raised by the Response of the United 
States Postal Service to Order No. 7049 Regarding Rural Carrier 
Costing, filed July 1, 2024.
    2. Comments by interested persons in this proceeding are due no 
later than August 27, 2024.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Nikki 
Brendemuehl to continue 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.
Jennie L. Jbara,
Primary Certifying Official.
[FR Doc. 2024-17156 Filed 8-8-24; 8:45 am]
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