[Federal Register Volume 76, Number 96 (Wednesday, May 18, 2011)]
[Proposed Rules]
[Page 28696]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-12202]
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POSTAL REGULATORY COMMISSION
39 CFR Part 3050
[Docket No. RM2011-10; Order No. 727]
Periodic Reporting
AGENCY: Postal Regulatory Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Commission is noticing a recently-filed Postal Service
petition to initiate an informal rulemaking proceeding to consider
changes in analytical principles. Proposal Two involves changes
affecting cost models for evaluating competitive Negotiated Service
Agreements. This notice informs the public of the filing, addresses
preliminary procedural matters, and invites public comment.
DATES: Comments are due: June 13, 2011.
ADDRESSES: Submit comments electronically by accessing the ``Filing
Online'' link in the banner at the top of the Commission's Web site
(http://www.prc.gov) or by directly accessing the Commission's Filing
Online system at https://www.prc.gov/prc-pages/filing-online/login.aspx. Commenters who cannot submit their views electronically
should contact the person identified in FOR FURTHER INFORMATION CONTACT
section as the source for case-related information for advice on
alternatives to electronic filing.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel,
at 202-789-6820 (case-related information) or [email protected]
(electronic filing assistance).
SUPPLEMENTARY INFORMATION: On May 10, 2011, the Postal Service filed a
petition pursuant to 39 CFR 3050.11 asking the Commission to initiate
an informal rulemaking proceeding to consider changes in the analytical
principles approved for use in periodic reporting.\1\ Proposal Two is a
set of four changes that the Postal Service first presented in its FY
2010 Annual Compliance Report (ACR) modifying the cost models that are
used to evaluate Negotiated Service Agreements (NSAs) for competitive
products. These cost models were included in USPS-FY10-NP27 in that
docket.
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\1\ Petition of the United States Postal Service Requesting
Initiation of a Proceeding to Consider a Proposed Change in
Analytical Principles (Proposal Two), May 10, 2011 (Petition).
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The Petition notes that in its FY 2010 Annual Compliance
Determination, the Commission made a preliminary determination that
these four changes constitute changes to analytical principles that
require prior Commission approval before being incorporated in an
ACR.\2\ The Postal Service notes that the purpose of its Petition is to
obtain the Commission's approval of the referenced changes for use in
future ACRs, even though some of the changes could be viewed as
corrections to its models not requiring advance Commission approval.
Petition at 1.
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\2\ See Docket No. ACR2010, FY 2010 Annual Compliance
Determination, March 29, 2011, at 141.
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The four changes for which the Postal Service seeks approval are:
1. The addition of a cost avoidance for Priority mailpieces;
2. The inclusion of D-Report adjustments; \3\
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\3\ The D-Report is one of six reports used to develop the Cost
and Revenue Analysis (CRA). In the D-Report, the Postal Service
provides attributable, product-specific, and volume variable costs
for each product.
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3. The incorporation of the CRA adjustment for Alaska Air Priority
transportation; and
4. Changes in the distribution of other costs for Parcel Select and
Parcel Return Service.
In the material supporting these changes, the Postal Service
asserts that including them in the NSA cost models better matches the
characteristics of the mail volume for the NSAs in question. It
characterizes inclusion of the D-Report and the Alaska Air adjustments
as rectifying previous omissions from these models. It notes that the
change in the distribution of ``Other'' costs for Parcel Select is made
necessary by the inclusion of the D-Report adjustment.
The Postal Service explains that if the D-Report adjustment is
made, it will comprise the majority of ``Other'' costs. Since the D-
Report adjustment is computed as a cost per piece, it contends,
``Other'' costs should be distributed on a per-piece basis, rather than
treated as proportionate to mail processing, transportation, and
delivery costs. It says that for consistency, a similar adjustment
should be made to the costs of Parcel Return Service. Id. at 4.
More detailed descriptions of the proposed changes can be found in
USPS-RM2011-10/NP1, which is filed under seal.
It is ordered:
1. The Petition of the United States Postal Service Requesting
Initiation of a Proceeding to Consider a Proposed Change in Analytical
Principles (Proposal Two), filed May 10, 2011, is granted.
2. The Commission establishes Docket No. RM2011-10 to consider the
matters raised by the Postal Service's Petition.
3. Interested persons may submit comments on Proposal Two no later
than June 13, 2011.
4. The Commission will determine the need for reply comments after
review of the initial comments.
5. John P. Klingenberg is appointed to serve as the Public
Representative to represent the interests of the general public in this
proceeding.
6. The Secretary shall arrange for publication of this notice in
the Federal Register.
By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2011-12202 Filed 5-17-11; 8:45 am]
BILLING CODE 7710-FW-P