Periodic Reporting

 
CONTENT
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