80_FR_49342 80 FR 49184 - Periodic Reporting

80 FR 49184 - Periodic Reporting

POSTAL REGULATORY COMMISSION

Federal Register Volume 80, Issue 158 (August 17, 2015)

Page Range49184-49186
FR Document2015-20232

The Commission is noticing a recent Postal Service filing requesting that the Commission initiate an informal rulemaking proceeding to consider changes to analytical principles relating to periodic reports (Proposal Seven). This notice informs the public of the filing, invites public comment, and takes other administrative steps.

Federal Register, Volume 80 Issue 158 (Monday, August 17, 2015)
[Federal Register Volume 80, Number 158 (Monday, August 17, 2015)]
[Proposed Rules]
[Pages 49184-49186]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-20232]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2015-16; Order No. 2654]


Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Commission is noticing a recent Postal Service filing 
requesting that the Commission initiate an informal rulemaking 
proceeding to consider changes to analytical principles relating to 
periodic reports (Proposal Seven). This notice informs the public of 
the filing, invites public comment, and takes other administrative 
steps.

DATES: Comments are due: September 25, 2015. Reply Comments are due: 
October 16, 2015.

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. Summary of Proposal
III. Initial Commission Action
IV. Ordering Paragraphs

I. Introduction

    On August 5, 2015, the Postal Service filed a petition pursuant to 
39 CFR 3050.11 requesting that the Commission initiate an informal 
rulemaking proceeding to consider changes to analytical principles 
relating to the Postal Service's periodic reports.\1\ Proposal Seven is 
attached to the Petition and proposes an analytical method change 
relating to the avoided costs for Flats Sequencing System (FSS) 
workshare discounts. Petition at 1.
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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 Seven), August 5, 2015 (Petition).
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    This Petition was filed in response to Order No. 2472, which 
directed the Postal Service ``to file a proposed methodology for 
determining the costs avoided for the Presorted FSS workshare 
discounts, as described in the body of [Order No. 2472], within 90 days 
of the date of [Order No. 2472].'' \2\
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    \2\ Docket No. R2015-4, Order on Revised Price Adjustments for 
Standard Mail, Periodicals, and Package Services Products and 
Related Mail Classification Changes, May 7, 2015, at 62 (Order No. 
2472).
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II. Summary of Proposal

    Under Proposal Seven, the Postal Service seeks to address the 
avoided costs relating to FSS mail. Petition, Proposal Seven at 1. The 
Postal Service bifurcates Proposal Seven into the Mail Processing and 
the Delivery elements of the avoided costs for FSS workshare discounts. 
Id.

A. Section One: Proposed Method for Calculating Mail Processing Cost 
Avoidances

    The Postal Service seeks to modify the modeling methodology used in 
the USPS-FY14-11 (Docket No. ACR2014) Standard Mail Flats Mail 
Processing Cost Model to estimate the mail processing cost avoidances 
of FSS presorted Standard Flats. Petition, Proposal Seven, Section One 
at 1. The Postal Service expands the Standard Mail Flats Mail 
Processing Cost Model to identify the unique characteristics and flows 
of FSS-prepared Standard Flats. Id. As part of Library Reference USPS-
RM2015-16/1 filed with the Petition, the Postal Service provides three 
models supporting this section of Proposal Seven. Id. The Postal 
Service also proposes changes to the USPS-FY14-11 (Docket No. ACR2014) 
Periodicals Flats Mail Processing Cost Model. Id. at 4.\3\
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    \3\ The proposed changes to the Periodicals Flats Mail 
Processing Cost Model were filed in Docket No. RM2015-18. See Docket 
No. RM2015-18, Petition of the United States Postal Service for the 
Initiation of a Proceeding to Consider Proposed Changes in 
Analytical Principles (Proposal Nine), August 5, 2015, Attachment at 
2.
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    There are nine modifications proposed by the Postal Service in 
Section One of Proposal Seven, all of which apply to the Standard Mail 
Flats Cost Model. Petition, Proposal Seven, Section One at 4. Two of 
the proposed modifications also apply to the Periodicals Model. Id.
1. Revision of the Methodology Used To Estimate the Proportion of Flats 
Processed in Mechanized Incoming Secondary Operations (Modification 
One)
    The Postal Service presents a process to estimate the proportion of 
flat-shaped mail processed in mechanized incoming secondary operations. 
Id. at 4-8. Although over 98 percent of flats destinate in the service 
territories of plants that have mechanized equipment, certain 
facilities choose to perform the incoming secondary sortation manually 
for a variety of reasons, including low volume, service commitments, 
and

[[Page 49185]]

operating window/capacity restraints. Id. at 4-5. The Postal Service 
asserts that its proposed methodology accounts for the two different 
technologies performing mechanized incoming secondary sortation--the 
Automated Flats Sorting Machine 100 (AFSM 100) and the FSS. Id. at 5. 
The Postal Service also represents that its methodology excludes letter 
shaped mail worked in flat operations, pieces entered in Carrier Route 
bundles that have broken and therefore require incoming secondary 
sortation, rejects from FSS operations, and pieces destinating in FSS 
zones that are not sorted on the FSS. See id. at 5-8. This modification 
applies to both the Standard Mail and Periodicals Flats Mail Processing 
Cost Models.
2. Changes to Bundle Processing Flows To Account for Increased 
Mechanized Incoming Secondary Piece Processing
    The Postal Service proposes to adjust the bundle flow formulae for 
consistency with the mechanized incoming secondary piece distribution 
calculated under Modification One. See id. at 8-9. The Postal Service 
states that bundles for mechanized incoming secondary sortation will 
not incur an incoming secondary bundle sort. See id. The Postal Service 
explains that bundles for zones worked manually will incur an 
additional bundle sort at the delivery unit. Id. at 9. This 
modification applies to the Standard Mail Flats Mail Processing Cost 
Model.
3. Introduction of FSS Bundle Flows
    The Postal Service assumes that no FSS bundles will incur a 
sortation at the delivery unit. Id. Aside from this assumption, the 
Postal Service calculates the bundle flows for FSS bundles using the 
same methodology used for other bundle types. Id. This modification 
applies to the Standard Mail Flats Mail Processing Cost Model.
4. FSS Presort Piece Model and Costs
    The Postal Service states that FSS presorted pieces flow directly 
into piece sortation on the FSS, bypassing outgoing primary, outgoing 
secondary, managed mail, and incoming primary operations. Id. The 
Postal Service represents that it models such FSS presorted pieces 
using the same basic methodology previously used to model piece flows. 
Id. This modification applies to the Standard Mail Flats Mail 
Processing Cost Model.
5. Updating 5-Digit Piece Model and Costs
    The Postal Service represents that 5-Digit pieces do not flow into 
FSS operations and proposes to update the 5-Digit piece model to 
reflect this flow. Id. at 10. The Postal Service represents that the 
relative incidence of manual incoming secondary sortation is higher for 
5-Digit pieces by a factor of one over one minus the FSS coverage 
factor. Id. This modification applies to the Standard Mail Flats Mail 
Processing Cost Model.
6. Updating Mixed ADC, ADC, 3-Digit for Incoming Secondary Coverage
    The Postal Service proposes to update the area distribution center 
(ADC), mixed ADC, and 3-Digit models to incorporate the recalculation 
of the mechanized incoming secondary sortation. Id. This modification 
applies to the Standard Mail Flats Mail Processing Cost Model.
7. Explicit Modeling of Mail Preparation
    The Postal Service states that the current model includes the hours 
associated with mail preparation for the FSS in the calculation of the 
FSS productivities. See id. at 11. However, because such AFSM 100 
preparation costs are included in the calculation of the AFSM 100 
productivities, the Postal Service observes that a portion of the AFSM 
100 preparation costs are allocated incorrectly to FSS prepared pieces 
through the Cost and Revenue Analysis (CRA) adjustment factor. See id. 
The Postal Service proposes to model AFSM 100 preparation costs using 
the methodology used in the Periodicals Flats Mail Processing Model. 
See id. This modification applies to the Standard Mail Flats Mail 
Processing Cost Model.
8. CRA Adjustment Factor Adjusted for the FSS
    The Postal Service uses the CRA adjustment factor to calibrate the 
model to CRA costs and to distribute non-modeled costs to the 
appropriate rate category. Id. The Postal Service states that applying 
the CRA adjustment factor as is done in the current methodology would 
distort measured cost avoidances by overdistributing non-modeled costs 
to FSS pieces. Id. at 12. The Postal Service represents that it will 
calculate the CRA adjustment factor to ensure the non-modeled costs 
distributed to FSS pieces are equal to those distributed to Five-Digit 
pieces. Id. This modification applies to the Standard Mail Flats Mail 
Processing Cost Model.
9. FSS Realization Factor
    The Postal Service represents that it introduced a FSS Realization 
Factor to measure the proportion of FSS eligible mail that is processed 
on the FSS. Id. at 12-13. According to the Postal Service, this FSS 
Realization Factor captures the fact that mail that destinates in a FSS 
zone and arrives after the end of first-pass processing may be 
processed on the AFSM 100 rather than the FSS to avoid delay. Id. This 
modification applies to both the Standard Mail and Periodicals Flats 
Mail Processing Cost Models.

B. Section Two: Proposed Method for Calculating Delivery Costs

    The Postal Service proposes a method to disaggregate delivery costs 
for Periodicals Flats, Bound Printed Matter Flats, Standard Flats and 
Carrier Route Flats (not including High Density or Saturation) between 
those destinating in FSS zones and those destinating in non-FSS zones. 
Petition, Proposal Seven: Section Two at 1. This method uses 
operational assumptions and models rather than data directly collected 
from cost systems, and calculates separate delivery costs for the 
relevant products based on whether pieces are destinating in FSS or 
non-FSS zones. Id. at 3.
    The proposed computing method begins with a product's component 
group costs in three segments: Cost Segment 6, City Carrier In-Office 
Activities; Cost Segment 7, City Carrier Street Activities; and Cost 
Segment 10, Rural Carriers Office and Street Activities. Id. at 3-9. 
Within each cost segment, the purpose is to disaggregate costs into FSS 
zone costs and non-FSS zone costs. Id.

III. Initial Commission Action

    The Commission establishes Docket No. RM2015-16 for consideration 
of matters raised by the Petition. Additional information concerning 
the Petition may be accessed via the Commission's Web site at http://www.prc.gov. Interested persons may submit comments on the Petition and 
Proposal Seven no later than September 25, 2015. Reply comments are due 
no later than October 16, 2015. 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. RM2015-16 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 Seven), filed 
August 5, 2015.

[[Page 49186]]

    2. Comments are due no later than September 25, 2015. Reply 
comments are due no later than October 16, 2015.
    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. 2015-20232 Filed 8-14-15; 8:45 am]
 BILLING CODE 7710-FW-P



                                                    49184                    Federal Register / Vol. 80, No. 158 / Monday, August 17, 2015 / Proposed Rules

                                                    activated by NOTAM at least 24 hours in                 POSTAL REGULATORY COMMISSION                           II. Summary of Proposal
                                                    advance, not to exceed 20 days per year.
                                                      Controlling agency. FAA, Houston ARTCC.                                                                         Under Proposal Seven, the Postal
                                                                                                            39 CFR Part 3050                                       Service seeks to address the avoided
                                                      Using agency. U.S. Navy, Commander,
                                                    Naval Special Warfare Command, Naval                    [Docket No. RM2015–16; Order No. 2654]                 costs relating to FSS mail. Petition,
                                                    Special Warfare N31 Branch, Stennis Space                                                                      Proposal Seven at 1. The Postal Service
                                                    Center, Bay St. Louis, MS.                              Periodic Reporting                                     bifurcates Proposal Seven into the Mail
                                                    R–4403E Stennis Space Center, MS [New]                  AGENCY:   Postal Regulatory Commission.                Processing and the Delivery elements of
                                                                                                            ACTION:   Notice of proposed rulemaking.               the avoided costs for FSS workshare
                                                      Boundaries. Beginning at lat. 30°29′37″ N.,                                                                  discounts. Id.
                                                    long. 89°35′16″ W.;
                                                                                                            SUMMARY:    The Commission is noticing a
                                                      to lat. 30°29′37″ N., long. 89°32′33″ W.;                                                                    A. Section One: Proposed Method for
                                                      thence clockwise along a 0.85-M arc                   recent Postal Service filing requesting
                                                                                                                                                                   Calculating Mail Processing Cost
                                                    centered                                                that the Commission initiate an informal
                                                                                                                                                                   Avoidances
                                                      at lat. 30°28′46″ N., long. 89°32′33″ W.;             rulemaking proceeding to consider
                                                      to lat. 30°28′46″ N., long. 89°31′34″ W.;             changes to analytical principles relating                The Postal Service seeks to modify the
                                                      to lat. 30°26′25″ N., long. 89°31′34″ W.;             to periodic reports (Proposal Seven).                  modeling methodology used in the
                                                      to lat. 30°24′02″ N., long. 89°31′34″ W.;             This notice informs the public of the                  USPS–FY14–11 (Docket No. ACR2014)
                                                      thence counterclockwise along a 4.2-NM                filing, invites public comment, and                    Standard Mail Flats Mail Processing
                                                    arc centered                                            takes other administrative steps.                      Cost Model to estimate the mail
                                                      at lat. 30°22′04″ N., long. 89°27′17″ W.;                                                                    processing cost avoidances of FSS
                                                                                                            DATES: Comments are due: September
                                                      to lat. 30°22′35″ N., long. 89°32′06″ W.;                                                                    presorted Standard Flats. Petition,
                                                      to lat. 30°22′35″ N., long. 89°35′27″ W.;             25, 2015. Reply Comments are due:
                                                                                                            October 16, 2015.                                      Proposal Seven, Section One at 1. The
                                                      to lat. 30°27′58″ N., long. 89°35′27″ W,;
                                                                                                            ADDRESSES: Submit comments                             Postal Service expands the Standard
                                                      to lat. 30°28′47″ N., long. 89°35′27″ W.;
                                                      to the point of beginning.                            electronically via the Commission’s                    Mail Flats Mail Processing Cost Model
                                                      Designated altitudes. Surface to 10,000 feet          Filing Online system at http://                        to identify the unique characteristics
                                                    MSL.                                                    www.prc.gov. Those who cannot submit                   and flows of FSS-prepared Standard
                                                      Time of designation. Intermittent, 2000 to            comments electronically should contact                 Flats. Id. As part of Library Reference
                                                    0500 local time, as activated by NOTAM at               the person identified in the FOR FURTHER               USPS–RM2015–16/1 filed with the
                                                    least 24 hours in advance; and 1800 to 2000                                                                    Petition, the Postal Service provides
                                                                                                            INFORMATION CONTACT section by
                                                    local time, November 1 to March 1, as                                                                          three models supporting this section of
                                                    activated by NOTAM at least 24 hours in                 telephone for advice on filing
                                                                                                            alternatives.                                          Proposal Seven. Id. The Postal Service
                                                    advance, not to exceed 20 days per year.                                                                       also proposes changes to the USPS–
                                                      Controlling agency. FAA, Houston ARTCC.               FOR FURTHER INFORMATION CONTACT:
                                                      Using agency. U.S. Navy, Commander,
                                                                                                                                                                   FY14–11 (Docket No. ACR2014)
                                                                                                            David A. Trissell, General Counsel, at                 Periodicals Flats Mail Processing Cost
                                                    Naval Special Warfare Command, Naval                    202–789–6820.
                                                    Special Warfare N31 Branch, Stennis Space                                                                      Model. Id. at 4.3
                                                    Center, Bay St. Louis, MS.                              SUPPLEMENTARY INFORMATION:                               There are nine modifications
                                                                                                            Table of Contents                                      proposed by the Postal Service in
                                                    R–4403F Stennis Space Center, MS [New]
                                                                                                                                                                   Section One of Proposal Seven, all of
                                                      Boundaries. Beginning at lat. 30°29′37″ N.,           I. Introduction                                        which apply to the Standard Mail Flats
                                                    long. 89°35′16″ W.;                                     II. Summary of Proposal                                Cost Model. Petition, Proposal Seven,
                                                      thence clockwise along a 2.5-NM arc                   III. Initial Commission Action
                                                                                                            IV. Ordering Paragraphs                                Section One at 4. Two of the proposed
                                                    centered
                                                      at lat. 30°28′46″ N., long. 89°32′33″ W.;                                                                    modifications also apply to the
                                                      to lat. 30°26′25″ N., long. 89°31′34″ W.;
                                                                                                            I. Introduction                                        Periodicals Model. Id.
                                                      to lat. 30°28′46″ N., long. 89°31′34″ W.;                On August 5, 2015, the Postal Service               1. Revision of the Methodology Used To
                                                      thence counterclockwise along a 0.85-NM               filed a petition pursuant to 39 CFR                    Estimate the Proportion of Flats
                                                    arc centered                                            3050.11 requesting that the Commission
                                                      at lat. 30°28′46″ N., long. 89°32′33″ W.;                                                                    Processed in Mechanized Incoming
                                                                                                            initiate an informal rulemaking                        Secondary Operations (Modification
                                                      to lat. 30°29′37″ N., long. 89°32′33″ W.;             proceeding to consider changes to
                                                      to the point of beginning.                                                                                   One)
                                                      Designated altitudes. 4,000 feet MSL to
                                                                                                            analytical principles relating to the
                                                                                                            Postal Service’s periodic reports.1                       The Postal Service presents a process
                                                    10,000 feet MSL.                                                                                               to estimate the proportion of flat-shaped
                                                      Time of designation. Intermittent, 2000 to            Proposal Seven is attached to the
                                                    0500 local time, as activated by NOTAM at               Petition and proposes an analytical                    mail processed in mechanized incoming
                                                    least 24 hours in advance; and 1800 to 2000             method change relating to the avoided                  secondary operations. Id. at 4–8.
                                                    local time, November 1 to March 1, as                   costs for Flats Sequencing System (FSS)                Although over 98 percent of flats
                                                    activated by NOTAM at least 24 hours in                 workshare discounts. Petition at 1.                    destinate in the service territories of
                                                    advance, not to exceed 20 days per year.                   This Petition was filed in response to              plants that have mechanized equipment,
                                                      Controlling agency. FAA, Houston ARTCC.               Order No. 2472, which directed the                     certain facilities choose to perform the
                                                      Using agency. U.S. Navy, Commander,                                                                          incoming secondary sortation manually
                                                                                                            Postal Service ‘‘to file a proposed
                                                    Naval Special Warfare Command, Naval                                                                           for a variety of reasons, including low
                                                    Special Warfare N31 Branch, Stennis Space               methodology for determining the costs
                                                                                                            avoided for the Presorted FSS                          volume, service commitments, and
                                                    Center, Bay St. Louis, MS.
                                                                                                            workshare discounts, as described in the
mstockstill on DSK4VPTVN1PROD with PROPOSALS




                                                    *      *     *       *      *                                                                                  Package Services Products and Related Mail
                                                                                                            body of [Order No. 2472], within 90
                                                      Issued in Washington, DC, on August 10                                                                       Classification Changes, May 7, 2015, at 62 (Order
                                                                                                            days of the date of [Order No. 2472].’’ 2              No. 2472).
                                                    2015.                                                                                                            3 The proposed changes to the Periodicals Flats
                                                    Gary A. Norek,                                            1 Petition of the United States Postal Service for
                                                                                                                                                                   Mail Processing Cost Model were filed in Docket
                                                    Manager, Airspace Policy and Regulations                the Initiation of a Proceeding to Consider Proposed    No. RM2015–18. See Docket No. RM2015–18,
                                                    Group.                                                  Changes in Analytical Principles (Proposal Seven),     Petition of the United States Postal Service for the
                                                                                                            August 5, 2015 (Petition).                             Initiation of a Proceeding to Consider Proposed
                                                    [FR Doc. 2015–20277 Filed 8–14–15; 8:45 am]               2 Docket No. R2015–4, Order on Revised Price         Changes in Analytical Principles (Proposal Nine),
                                                    BILLING CODE 4910–13–P                                  Adjustments for Standard Mail, Periodicals, and        August 5, 2015, Attachment at 2.



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                                                                           Federal Register / Vol. 80, No. 158 / Monday, August 17, 2015 / Proposed Rules                                          49185

                                                    operating window/capacity restraints.                   5-Digit piece model to reflect this flow.             this FSS Realization Factor captures the
                                                    Id. at 4–5. The Postal Service asserts                  Id. at 10. The Postal Service represents              fact that mail that destinates in a FSS
                                                    that its proposed methodology accounts                  that the relative incidence of manual                 zone and arrives after the end of first-
                                                    for the two different technologies                      incoming secondary sortation is higher                pass processing may be processed on
                                                    performing mechanized incoming                          for 5-Digit pieces by a factor of one over            the AFSM 100 rather than the FSS to
                                                    secondary sortation—the Automated                       one minus the FSS coverage factor. Id.                avoid delay. Id. This modification
                                                    Flats Sorting Machine 100 (AFSM 100)                    This modification applies to the                      applies to both the Standard Mail and
                                                    and the FSS. Id. at 5. The Postal Service               Standard Mail Flats Mail Processing                   Periodicals Flats Mail Processing Cost
                                                    also represents that its methodology                    Cost Model.                                           Models.
                                                    excludes letter shaped mail worked in
                                                                                                            6. Updating Mixed ADC, ADC, 3-Digit                   B. Section Two: Proposed Method for
                                                    flat operations, pieces entered in Carrier
                                                                                                            for Incoming Secondary Coverage                       Calculating Delivery Costs
                                                    Route bundles that have broken and
                                                    therefore require incoming secondary                       The Postal Service proposes to update                The Postal Service proposes a method
                                                    sortation, rejects from FSS operations,                 the area distribution center (ADC),                   to disaggregate delivery costs for
                                                    and pieces destinating in FSS zones that                mixed ADC, and 3-Digit models to                      Periodicals Flats, Bound Printed Matter
                                                    are not sorted on the FSS. See id. at 5–                incorporate the recalculation of the                  Flats, Standard Flats and Carrier Route
                                                    8. This modification applies to both the                mechanized incoming secondary                         Flats (not including High Density or
                                                    Standard Mail and Periodicals Flats                     sortation. Id. This modification applies              Saturation) between those destinating in
                                                    Mail Processing Cost Models.                            to the Standard Mail Flats Mail                       FSS zones and those destinating in non-
                                                                                                            Processing Cost Model.                                FSS zones. Petition, Proposal Seven:
                                                    2. Changes to Bundle Processing Flows
                                                    To Account for Increased Mechanized                     7. Explicit Modeling of Mail Preparation              Section Two at 1. This method uses
                                                    Incoming Secondary Piece Processing                        The Postal Service states that the                 operational assumptions and models
                                                                                                            current model includes the hours                      rather than data directly collected from
                                                       The Postal Service proposes to adjust                                                                      cost systems, and calculates separate
                                                    the bundle flow formulae for                            associated with mail preparation for the
                                                                                                            FSS in the calculation of the FSS                     delivery costs for the relevant products
                                                    consistency with the mechanized                                                                               based on whether pieces are destinating
                                                    incoming secondary piece distribution                   productivities. See id. at 11. However,
                                                                                                            because such AFSM 100 preparation                     in FSS or non-FSS zones. Id. at 3.
                                                    calculated under Modification One. See
                                                    id. at 8–9. The Postal Service states that              costs are included in the calculation of                The proposed computing method
                                                    bundles for mechanized incoming                         the AFSM 100 productivities, the Postal               begins with a product’s component
                                                    secondary sortation will not incur an                   Service observes that a portion of the                group costs in three segments: Cost
                                                    incoming secondary bundle sort. See id.                 AFSM 100 preparation costs are                        Segment 6, City Carrier In-Office
                                                    The Postal Service explains that bundles                allocated incorrectly to FSS prepared                 Activities; Cost Segment 7, City Carrier
                                                    for zones worked manually will incur                    pieces through the Cost and Revenue                   Street Activities; and Cost Segment 10,
                                                    an additional bundle sort at the delivery               Analysis (CRA) adjustment factor. See                 Rural Carriers Office and Street
                                                    unit. Id. at 9. This modification applies               id. The Postal Service proposes to                    Activities. Id. at 3–9. Within each cost
                                                    to the Standard Mail Flats Mail                         model AFSM 100 preparation costs                      segment, the purpose is to disaggregate
                                                    Processing Cost Model.                                  using the methodology used in the                     costs into FSS zone costs and non-FSS
                                                                                                            Periodicals Flats Mail Processing Model.              zone costs. Id.
                                                    3. Introduction of FSS Bundle Flows                     See id. This modification applies to the              III. Initial Commission Action
                                                       The Postal Service assumes that no                   Standard Mail Flats Mail Processing
                                                    FSS bundles will incur a sortation at the               Cost Model.                                              The Commission establishes Docket
                                                    delivery unit. Id. Aside from this                                                                            No. RM2015–16 for consideration of
                                                                                                            8. CRA Adjustment Factor Adjusted for
                                                    assumption, the Postal Service                                                                                matters raised by the Petition.
                                                                                                            the FSS
                                                    calculates the bundle flows for FSS                                                                           Additional information concerning the
                                                    bundles using the same methodology                         The Postal Service uses the CRA                    Petition may be accessed via the
                                                    used for other bundle types. Id. This                   adjustment factor to calibrate the model              Commission’s Web site at http://
                                                    modification applies to the Standard                    to CRA costs and to distribute non-                   www.prc.gov. Interested persons may
                                                    Mail Flats Mail Processing Cost Model.                  modeled costs to the appropriate rate                 submit comments on the Petition and
                                                                                                            category. Id. The Postal Service states               Proposal Seven no later than September
                                                    4. FSS Presort Piece Model and Costs                    that applying the CRA adjustment factor               25, 2015. Reply comments are due no
                                                       The Postal Service states that FSS                   as is done in the current methodology                 later than October 16, 2015. Pursuant to
                                                    presorted pieces flow directly into piece               would distort measured cost avoidances                39 U.S.C. 505, Katalin K. Clendenin is
                                                    sortation on the FSS, bypassing                         by overdistributing non-modeled costs                 designated as an officer of the
                                                    outgoing primary, outgoing secondary,                   to FSS pieces. Id. at 12. The Postal                  Commission (Public Representative) to
                                                    managed mail, and incoming primary                      Service represents that it will calculate             represent the interests of the general
                                                    operations. Id. The Postal Service                      the CRA adjustment factor to ensure the               public in this proceeding.
                                                    represents that it models such FSS                      non-modeled costs distributed to FSS
                                                    presorted pieces using the same basic                   pieces are equal to those distributed to              IV. Ordering Paragraphs
                                                    methodology previously used to model                    Five-Digit pieces. Id. This modification
                                                                                                                                                                    It is ordered:
mstockstill on DSK4VPTVN1PROD with PROPOSALS




                                                    piece flows. Id. This modification                      applies to the Standard Mail Flats Mail
                                                    applies to the Standard Mail Flats Mail                 Processing Cost Model.                                  1. The Commission establishes Docket
                                                    Processing Cost Model.                                                                                        No. RM2015–16 for consideration of the
                                                                                                            9. FSS Realization Factor                             matters raised by the Petition of the
                                                    5. Updating 5-Digit Piece Model and                        The Postal Service represents that it              United States Postal Service for the
                                                    Costs                                                   introduced a FSS Realization Factor to                Initiation of a Proceeding to Consider
                                                       The Postal Service represents that 5-                measure the proportion of FSS eligible                Proposed Changes in Analytical
                                                    Digit pieces do not flow into FSS                       mail that is processed on the FSS. Id. at             Principles (Proposal Seven), filed
                                                    operations and proposes to update the                   12–13. According to the Postal Service,               August 5, 2015.


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                                                    49186                  Federal Register / Vol. 80, No. 158 / Monday, August 17, 2015 / Proposed Rules

                                                      2. Comments are due no later than                     Postal Service’s periodic reports.1                    100, rather than via manual processing.
                                                    September 25, 2015. Reply comments                      Proposal Nine is attached to the Petition              Id.
                                                    are due no later than October 16, 2015.                 and proposes an analytical method                        According to the Postal Service,
                                                      3. Pursuant to 39 U.S.C. 505, the                     change relating to bottom-up costs for                 because the processing of Carrier Route
                                                    Commission appoints Katalin K.                          new Periodicals Mail Carrier Route                     pallets and other 5-Digit pallets does not
                                                    Clendenin to serve as an officer of the                 bundle and container entry options.                    differ, it proposes no changes to the
                                                    Commission (Public Representative) to                   Petition at 1. This Petition was filed in              methodology used to produce estimates
                                                    represent the interests of the general                  response to Order No. 2472, which                      of avoided costs. Id. The Postal Service
                                                    public in this docket.                                  directed the Postal Service to ‘‘. . . file            represents that the changes it proposes
                                                      4. The Secretary shall arrange for                    a proposed methodology for                             to the USPS–FY14–11 Periodicals
                                                    publication of this Order in the Federal                determining the bottom-up costs for the                Model in Docket No. ACR2014
                                                    Register.                                               new Periodicals Mail Carrier Route                     explicitly identify the costs avoided. Id.
                                                     By the Commission.                                     bundle and container entry options, as                 Further, the Postal Service states that it
                                                    Ruth Ann Abrams,                                        described in the body of [Order No.                    has incorporated Modifications 1 and 9,
                                                                                                            2472], within 90 days of the date of                   described in Section One of Proposal
                                                    Acting Secretary.
                                                                                                            [Order No. 2472].’’ 2                                  Seven,3 into the Periodicals Model filed
                                                    [FR Doc. 2015–20232 Filed 8–14–15; 8:45 am]
                                                                                                                                                                   with the Petition as an Excel
                                                    BILLING CODE 7710–FW–P                                  II. Summary of Proposal                                spreadsheet. Id.
                                                                                                               Under Proposal Nine, the Postal
                                                                                                                                                                   III. Initial Commission Action
                                                                                                            Service asserts that no changes to the
                                                    POSTAL REGULATORY COMMISSION                            methodology used to produce avoided                       The Commission establishes Docket
                                                                                                            cost estimates for Periodicals Mail                    No. RM2015–18 for consideration of
                                                    39 CFR Part 3050
                                                                                                            Carrier Route bundle and container                     matters raised by the Petition.
                                                    [Docket No. RM2015–18; Order No. 2655]                  entry options is necessary and instead                 Additional information concerning the
                                                                                                            proposes changes to the model                          Petition may be accessed via the
                                                    Periodic Reporting                                      presentation that explicitly identify the              Commission’s Web site at http://
                                                    AGENCY:   Postal Regulatory Commission.                 bottom-up costs of processing Carrier                  www.prc.gov. Interested persons may
                                                                                                            Route pallets. Petition, Proposal Nine at              submit comments on the Petition and
                                                    ACTION:   Notice of proposed rulemaking.
                                                                                                            1, 2.                                                  Proposal Nine no later than September
                                                    SUMMARY:   The Commission is noticing a                    When a mailing has sufficient density               8, 2015. Reply comments are due no
                                                    recent Postal Service filing requesting                 to prepare 5-Digit or 5-Digit Scheme                   later than September 22, 2015. Pursuant
                                                    that the Commission initiate an informal                pallets, the mailer presorts nearly all of             to 39 U.S.C. 505, Lawrence Fenster is
                                                    rulemaking proceeding to consider                       the mail on the pallet into Carrier Route              designated as officer of the Commission
                                                    changes to analytical principles relating               bundles. Id. at 1. The Postal Service                  (Public Representative) to represent the
                                                    to periodic reports (Proposal Nine). This               represents that in Fiscal Year 2014, only              interests of the general public in this
                                                    notice informs the public of the filing,                one-half of one percent of the                         proceeding.
                                                    invites public comment, and takes other                 periodicals on such pallets were                       IV. Ordering Paragraphs
                                                    administrative steps.                                   prepared in 5-Digit bundles. Id. The
                                                                                                            Postal Service states that the 5-Digit                    It is ordered:
                                                    DATES: Comments are due: September 8,
                                                                                                            mail on these pallets generally consists                  1. The Commission establishes Docket
                                                    2015. Reply Comments are due:                                                                                  No. RM2015–18 for consideration of the
                                                    September 22, 2015.                                     of residual pieces for the few routes that
                                                                                                            lack sufficient density to qualify for                 matters raised by the Petition of the
                                                    ADDRESSES: Submit comments                                                                                     United States Postal Service for the
                                                    electronically via the Commission’s                     Carrier Route rates. Id.
                                                                                                               The Postal Service represents that for              Initiation of a Proceeding to Consider
                                                    Filing Online system at http://                                                                                Proposed Changes in Analytical
                                                                                                            this reason it processes Carrier Route
                                                    www.prc.gov. Those who cannot submit                                                                           Principles (Proposal Nine), filed August
                                                                                                            pallets (5-Digit or 5-Digit Scheme pallets
                                                    comments electronically should contact                                                                         5, 2015.
                                                                                                            containing only Carrier Route bundles)
                                                    the person identified in the FOR FURTHER                                                                          2. Comments are due no later than
                                                                                                            identically to other 5-Digit pallets. Id. at
                                                    INFORMATION CONTACT section by                                                                                 September 8, 2015. Reply comments are
                                                                                                            1–2. The Postal Service explains that all
                                                    telephone for advice on filing                                                                                 due no later than September 22, 2015.
                                                                                                            pallets are cross-docked to the delivery
                                                    alternatives.                                                                                                     3. Pursuant to 39 U.S.C. 505, the
                                                                                                            unit for distribution of bundles to
                                                    FOR FURTHER INFORMATION CONTACT:                                                                               Commission appoints Lawrence Fenster
                                                                                                            carriers. Id. at 2. The Postal Service
                                                    David A. Trissell, General Counsel, at                                                                         to serve as officer of the Commission
                                                                                                            states that the Carrier Route pallet rate
                                                    202–789–6820.                                                                                                  (Public Representative) to represent the
                                                                                                            encourages mailers to prepare Carrier
                                                                                                                                                                   interests of the general public in this
                                                    SUPPLEMENTARY INFORMATION:                              Route pallets and to move any residual
                                                                                                                                                                   docket.
                                                                                                            5-Digit bundles to containers that would                  4. The Secretary shall arrange for
                                                    Table of Contents
                                                                                                            be distributed in the plant. Id. The                   publication of this order in the Federal
                                                    I. Introduction                                         Postal Service represents this enables it
                                                    II. Summary of Proposal                                                                                        Register.
                                                                                                            to process the residual 5-Digit bundles
                                                    III. Initial Commission Action                          on the Automated Flats Sorting Machine                  By the Commission.
mstockstill on DSK4VPTVN1PROD with PROPOSALS




                                                    IV. Ordering Paragraphs                                                                                        Ruth Ann Abrams,
                                                    I. Introduction                                           1 Petition of the United States Postal Service for   Acting Secretary.
                                                                                                            the Initiation of a Proceeding to Consider Proposed    [FR Doc. 2015–20233 Filed 8–14–15; 8:45 am]
                                                       On August 5, 2015, the Postal Service                Changes in Analytical Principles (Proposal Nine),
                                                                                                                                                                   BILLING CODE 7710–FW–P
                                                    filed a petition pursuant to 39 CFR                     August 5, 2015 (Petition).
                                                                                                              2 Docket No. R2015–4, Order on Revised Price
                                                    3050.11 requesting that the Commission
                                                                                                            Adjustments for Standard Mail, Periodicals, and          3 Petition of the United States Postal Service for
                                                    initiate an informal rulemaking                         Package Services Products and Related Mail             the Initiation of a Proceeding to Consider Proposed
                                                    proceeding to consider changes to                       Classification Changes, May 7, 2015, at 63 (Order      Changes in Analytical Principles (Proposal Seven),
                                                    analytical principles relating to the                   No. 2472).                                             August 5, 2015 (Proposal Seven).



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Document Created: 2015-12-15 11:06:54
Document Modified: 2015-12-15 11:06:54
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionNotice of proposed rulemaking.
DatesComments are due: September 25, 2015. Reply Comments are due: October 16, 2015.
ContactDavid A. Trissell, General Counsel, at 202-789-6820.
FR Citation80 FR 49184 

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