Periodic Reporting

Published date17 July 2019
Citation84 FR 34082
Record Number2019-15128
SectionProposed rules
CourtPostal Regulatory Commission
Federal Register, Volume 84 Issue 137 (Wednesday, July 17, 2019)
[Federal Register Volume 84, Number 137 (Wednesday, July 17, 2019)]
                [Proposed Rules]
                [Pages 34082-34083]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2019-15128]
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                POSTAL REGULATORY COMMISSION
                39 CFR Part 3050
                [Docket No. RM2019-7; Order No. 5146]
                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 Two). This
                document informs the public of the filing, invites public comment, and
                takes other administrative steps.
                DATES: Comments are due: August 12, 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 Two
                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 Two.
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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 Two), July 9, 2019 (Petition). The
                Postal Service filed a non-public library reference with Proposal
                Two. Library Reference USPS-RM2019-7/NP1, Nonpublic Material
                Relating to Proposal Two, July 9, 2019; Notice of Filing of USPS-
                RM2019-7/NP1 and Application for Nonpublic Treatment, July 9, 2019.
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                [[Page 34083]]
                II. Proposal Two
                 Background. In Docket No. RM2018-8, the Commission approved the
                Postal Service's methodology to distribute dispatch format revenue it
                receives from inbound LC/AO mail based whether the mailpiece was a
                letter, flat, or small packet/bulky letter.\2\ However, the Commission
                noted that it was possible to refine the Postal Service's methodology
                to distribute inbound LC/AO revenue and that ``distributing dispatch
                format revenue to item formats based on the revenue per piece and
                revenue per pound for those mail flows where terminal dues are
                calculated on a per-item and per-kilogram basis [is] worthy of further
                evaluation.'' Order No. 4827 at 18. Although the Postal Service
                incorporated such a revenue distribution methodology in its Fiscal Year
                (FY) 2018 Annual Compliance Report (ACR), the Postal Service asserts
                that there was ``no prior opportunity . . . to seek Commission review
                of the new procedure incorporated into the ACR.'' Petition, Proposal
                Two at 2. In the FY 2018 Annual Compliance Determination, the
                Commission accepted the Postal Service's revenue distribution for
                inbound LC/AO mail for purposes of the compliance review, but directed
                the Postal Service to ``file a petition for the initiation of a
                proceeding to consider this proposed change in analytical
                principles[.]'' \3\
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                 \2\ See generally Docket No. RM2018-8, Order On Analytical
                Principles Used in Periodic Reporting (Proposal Five), September 21,
                2018 (Order No. 4827). ``LC/AO'' is an abbreviation for ``lettres et
                cartes'' and ``autres objets,'' and is French for ``letters and
                cards'' and ``other objects.'' LC/AO refers to international
                letters, cards, flats, bulky letters, and small packets, whether
                under the Universal Postal Union (UPU) terminal dues system or
                bilateral or multilateral agreements. Inbound LC/AO contrasts with
                Inbound Letter Post, which refers to the Postal Service product
                consisting of letters, cards, flats, bulky letters, and small
                packets received under the terminal dues system. See Mail
                Classification Schedule (MCS), section 1130.
                 \3\ Docket No. ACR2018, Annual Compliance Determination Report,
                April 12, 2019, at 81.
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                 Proposal. The Postal Service's proposal seeks to revise the revenue
                distribution methodology for inbound LC/AO mailpieces. Currently, the
                Postal Service distributes inbound LC/AO revenue based on weight
                proportions by shape in the dispatch data. Petition, Proposal Two at 3.
                Proposal Two would distribute dispatch format revenue to item formats
                based upon the revenue per piece and the revenue per pound for those
                items where remuneration is based on a per-item and per-kilogram basis.
                Id. at 2-3.
                 Rationale and impact. The Postal Service states that Proposal Two
                will apply more detailed piece and weight data to distribute inbound
                LC/AO revenue. Id. at 3. The Postal Service notes that Proposal Two
                requests review of the methodology it used to distribute inbound LC/AO
                revenue in its FY 2018 ACR, which was described in its response to
                Chairman's Information Request No. 1. Id. at 2-3.
                 The impact of Proposal Two is that revenue for inbound small
                packets and bulky letters decreases as revenue for inbound letters and
                flats increases. Id. at 3. The Postal Service states that this result
                is expected as the previous revenue distribution method, based solely
                on weight, would allocate more revenue towards the heavier weighted
                small packets and bulky letters. Id.
                III. Notice and Comment
                 The Commission establishes Docket No. RM2019-7 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 Two no later
                than August 12, 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. RM2019-7 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 Two), filed July 9, 2019.
                 2. Comments by interested persons in this proceeding are due no
                later than August 12, 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. 2019-15128 Filed 7-16-19; 8:45 am]
                 BILLING CODE 7710-FW-P
                

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