Periodic Reporting

 
CONTENT
Federal Register, Volume 84 Issue 136 (Tuesday, July 16, 2019)
[Federal Register Volume 84, Number 136 (Tuesday, July 16, 2019)]
[Proposed Rules]
[Page 33882]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-15031]
[[Page 33882]]
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POSTAL REGULATORY COMMISSION
39 CFR Part 3050
[Docket No. RM2019-8; Order No. 5145]
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 Three).
This document informs the public of the filing, invites public comment,
and takes other administrative steps.
DATES: Comments are due: August 19, 2019.
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 Three
III. Notice and Comment
IV. Ordering Paragraphs
I. Introduction
    On July 9, 2019, 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 Three.
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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 Three), July 9, 2019 (Petition).
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II. Proposal Three
    Background. Proposal Three relates to the methodology used to
distribute enhanced payments made under the PRIME agreement. Petition,
Proposal Three at 1. PRIME is an international agreement among
approximately 141 designated postal operators working together in the
tracked packet area. Id. n.1. Under PRIME, designated postal operators
provide each other with enhanced payments, in addition to the basic per
item payment, for the timely return of scans. Id.
    The Postal Service used a new methodology to distribute these PRIME
enhanced payments in its most recent International Cost and Revenue
Analysis (ICRA).\2\ In the FY 2018 Annual Compliance Determination, the
Commission accepted the Postal Service's distribution of the payments
but determined that the Postal Service's revised methodology ``must be
thoroughly reviewed by the Commission and stakeholders through a
docketed proceeding before it can be used in future ACRs.'' \3\
Accordingly, the Commission directed ``the Postal Service to file a
petition for the initiation of a proceeding to review this proposed
change in analytical principles within 90 days'' of the issuance of the
FY 2018 ACD. Id.
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    \2\ Docket No. ACR2018, USPS-FY18-NP2--FY 2018 International
Cost and Revenue Analysis (ICRA) Report (Revised 2/11/19), February
11, 2019 (February 11 ICRA).
    \3\ Docket No. ACR2018, Annual Compliance Determination, April
12, 2019, at 105 (FY 2018 ACD).
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    Proposal. The Postal Service's proposal seeks to revise the
methodology used to distribute PRIME enhanced payments. Under the
existing methodology, PRIME costs are distributed entirely to First-
Class Package International Service (FCPIS) because the costs are
treated as an ``indistinguishable aggregate.'' Petition, Proposal Three
at 1.
    The Postal Service reports that it is now possible to distribute
PRIME costs across products and between Negotiated Service Agreement
(NSA) and non-NSA FCPIS. Id. This is accomplished by making use of the
``UX'' key for tracked mail in the System for International Revenue and
Volume, Outbound (SIRVO). Id. at 3. As a result, Proposal Three expands
the distribution of PRIME costs beyond FCPIS. Id.
    Rationale and impact. The Postal Service states that the current
methodology ``does not take advantage of the additional information''
provided by the UX key for tracked mail in SIRVO. Id. The Postal
Service reports that the existing methodology allocates all PRIME costs
to the non-NSA FCPIS settlements and unitizes those charges based on
non-NSA volumes. Id. The Postal Service concludes that ``[t]his
essentially set the unitized PRIME payments too high.'' Id. Proposal
Three seeks to distribute these amounts ``based on proportions of UX
across products and between NSA and non-NSA FCPIS.'' Id.
    The impact of Proposal Three is that costs are shifted away from
FCPIS to Outbound Single-Piece First-Class Mail, Priority Mail Express
International, International Priority Airmail (IPA), International
Direct Sacks--M-Bags, and associated Outbound NSAs. Id. at 4.
III. Notice and Comment
    The Commission establishes Docket No. RM2019-8 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 Three no later
than August 19, 2019. 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. RM2019-8 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 Three), filed July 9, 2019.
    2. Comments by interested persons in this proceeding are due no
later than August 19, 2019.
    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.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2019-15031 Filed 7-15-19; 8:45 am]
 BILLING CODE 7710-FW-P