80 FR 74741 - Periodic Reporting

POSTAL REGULATORY COMMISSION

Federal Register Volume 80, Issue 229 (November 30, 2015)

Page Range		74741-74742
FR Document		2015-30319

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

Federal Register, Volume 80 Issue 229 (Monday, November 30, 2015)

[Federal Register Volume 80, Number 229 (Monday, November 30, 2015)]
[Proposed Rules]
[Pages 74741-74742]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2015-30319]

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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2016-3; Order No. 2836]

Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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

DATES: Comments are due: December 4, 2015. Reply Comments are due:
December 9, 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 Proposals
III. Initial Commission Action
IV. Ordering Paragraphs

I. Introduction

On November 20, 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 Twelve
is attached to the Petition and identifies the proposed analytical
method change that relates to the treatment of costs for vehicles used
on city carrier letter routes within various cost components of the
Cost and Revenue Analysis (CRA) report. Id. The Postal Service
concurrently filed two library references, along with an application
for non-public treatment for one.\2\
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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 Twelve), November 20, 2015, at 1
(Petition).
\2\ Notice of Filing of USPS-RM2016-3/1, USPS-RM2016-3/NP1, and
Application for Nonpublic Treatment, November 20, 2015 (Notice).
Library Reference USPS-RM2016-3/1 contains workbooks displaying the
calculation and cost impacts of implementing the proposed
methodology. Library Reference USPS-RM2016-3/NP1 contains supporting
non-public material. The Notice incorporates by reference the
Application for Non-Public Treatment of Materials contained in
Attachment Two to the December 29, 2014, United States Postal
Service Fiscal Year 2014 Annual Compliance Report. Notice at 1. See
39 CFR part 3007 for information on access to non-public material.
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II. Summary of Proposal

The Postal Service requests this rulemaking to re-align certain
calculations within the CRA report to be consistent with the
methodology approved by the Commission in Proposal Thirteen.\3\
Petition at 1. Acknowledging that the Postal Service will soon submit
the FY 2015 Annual Compliance Report, the Postal Service emphasizes
that immediate consideration of Proposal Twelve is necessary to avoid a
mismatch between the current methodology for the treatment of ancillary
vehicle cost matters and the framework approved in Proposal Thirteen.
Id. at 1-2. Under Proposal Twelve, the Postal Service proposes two
methodological changes:

[[Page 74742]]

Attribution of city carrier letter route vehicle costs and calculation
of office and street proportions that are used in the calculation of
costs relating to city carrier labor. Petition, Proposal Twelve at 1.
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\3\ Docket No. RM2015-7, Order No. 2792, Order Approving
Analytical Principles Used in Periodic Reporting (Proposal
Thirteen), October 29, 2015.
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A. Attributing City Carrier Letter Route Vehicle Costs

The Postal Service proposes to change the methodology for
attributing costs relating to vehicles used on city carrier letter
routes, including Motor Vehicle Service (MVS) Labor in Cost Segment
12.1, MVS Supplies and Materials in Cost Segment 12.2, and Vehicle
Depreciation in Cost Segment 20. Id.
Current methodology: The Postal Service explains that currently
city carrier letter route vehicle costs are divided into two pools:
Delivery Activities and Network Travel for motorized letter routes. Id.
at 2. The Postal Service reports that ``[i]n FY 2014, these respective
proportions were approximately 42 and 58 percent.'' Id. The Postal
Service states that the current methodology multiplies each cost pool
by the appropriate variability to determine attributable costs and that
these ``attributable costs are assigned to products in the same
proportions as Cost Segment 7 letter route Delivery Activities costs.''
Id.
Proposed Methodology: Building upon the new methodology approved by
the Commission in Proposal Thirteen for the treatment of labor costs on
city delivery letter routes, the Postal Service proposes to ``calculate
the attributable vehicle costs by multiplying the letter route vehicle
costs by the new overall letter route street variability'' and to
assign the attributable costs to products using the proportions based
on all letter route street costs. Id. The Postal Service represents
that Proposal Twelve would also change the component structure of the
CRA for Cost Segments 12 and 20. Id. at 4. Specifically, in Cost
Segment 12, the Network Travel components 86 and 95 would be removed
and components 83 and 92, currently named Delivery Activities, would be
renamed City Delivery Letter Routes. Id. In Cost Segment 20, components
222 and 225 for Delivery Activities and Network Travel would be
removed. Id. Component 223 would be established as City Delivery
Special Purpose Routes (SPR) to assign SPR vehicle depreciation costs.
Id. Finally, component 221 would be reactivated and named City Delivery
Letter Routes. Id.
Rationale: The Postal Service represents that Proposal Twelve would
align the calculation of vehicle use costs with the new street time
methodology. Id. at 5. The Postal Service claims that this treatment of
city carrier vehicle costs is consistent with the long-standing
practice of linking the treatment with the direct labor that uses these
vehicles. Id. The Postal Service asserts that the ``proposed
methodology for vehicle use cost[s] recognizes that letter route
carriers use their vehicles throughout their time on the street, while
delivering mail, traversing the route, and while traveling to and from
the route.'' Id.
Impact: The Postal Service anticipates that under Proposal Twelve
higher proportions of MVS Labor, MVS Supplies, and Vehicle Depreciation
costs for city carriers will be attributed to products. Id. The Postal
Service states that currently ``Network Travel is not attributed and
letter route Delivery Activities costs has a variability of 43 percent,
which results in a combined variability of 18 percent.'' Id. Under
Proposal Twelve, the Postal Service represents that ``the city carrier
letter route costs for MVS Labor, MVS Supplies, and Vehicle
Depreciation costs are attributed in the same proportion as all letter
route street activities in Cost Segment 7, which results in an
attribution level of 36 percent.'' Id. at 5-6. For FY 2014, the Postal
Service projects that Proposal Twelve would increase attributable costs
by $185 million. Id. at 6. The Postal Service illustrates the cost
impact by product for Proposal Twelve in Table 1. Id. at 7.

B. Calculating Office and Street Proportions

The Postal Service proposes a minor change to the methodology for
calculating office and street proportions that are used in the
calculation of costs relating to city carrier labor for Vehicle Hire in
Cost Segment 12.3 and Carfare and Driveout in Cost Segment 13.2. Id. at
1.
Current methodology: The Postal Service explains that it currently
``develops office and street proportions for foot and motorized routes
using [In-Office Cost System] IOCS office costs by route type and
street costs by delivery mode.'' Id. at 2.
Proposed Methodology: Building upon the new methodology approved by
the Commission in Proposal Thirteen, the Postal Service proposes to
develop office and street proportions for foot and motorized routes
using Delivery Operations Information System workhours. Id. The Postal
Service would also use city carrier costs for Delivery Activities and
Network Travel to further divide the street proportions among these
components. Id. at 4.
Rationale: The Postal Service claims that ``Proposal Twelve would
also align the calculation of office and street proportions with the
new street time methodology.'' Id. at 5.
Impact: The Postal Service illustrates the change in office and
street proportions for Proposal Twelve in Table 2. Id. at 8.

III. Initial Commission Action

The Commission establishes Docket No. RM2016-3 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 Twelve no later than December 4, 2015. Reply comments are due
no later than December 9, 2015. Pursuant to 39 U.S.C. 505, Jennaca D.
Upperman is designated as 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. RM2016-3 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 Twelve), filed November 20, 2015.
2. Comments are due no later than December 4, 2015. Reply comments
are due no later than December 9, 2015.
3. Pursuant to 39 U.S.C. 505, the Commission appoints Jennaca D.
Upperman to serve as 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.
Stacy L. Ruble,
Secretary.
[FR Doc. 2015-30319 Filed 11-27-15; 8:45 am]
BILLING CODE 7710-FW-P

74742 Federal Register / Vol. 80, No. 229 / Monday, November 30, 2015 / Proposed Rules

Attribution of city carrier letter route this treatment of city carrier vehicle Rationale: The Postal Service claims
vehicle costs and calculation of office costs is consistent with the long- that ‘‘Proposal Twelve would also align
and street proportions that are used in standing practice of linking the the calculation of office and street
the calculation of costs relating to city treatment with the direct labor that uses proportions with the new street time
carrier labor. Petition, Proposal Twelve these vehicles. Id. The Postal Service methodology.’’ Id. at 5.
at 1. asserts that the ‘‘proposed methodology Impact: The Postal Service illustrates
for vehicle use cost[s] recognizes that the change in office and street
A. Attributing City Carrier Letter Route
Vehicle Costs letter route carriers use their vehicles proportions for Proposal Twelve in
throughout their time on the street, Table 2. Id. at 8.
The Postal Service proposes to change while delivering mail, traversing the
the methodology for attributing costs III. Initial Commission Action
route, and while traveling to and from
relating to vehicles used on city carrier the route.’’ Id. The Commission establishes Docket
letter routes, including Motor Vehicle Impact: The Postal Service anticipates No. RM2016–3 for consideration of
Service (MVS) Labor in Cost Segment that under Proposal Twelve higher matters raised by the Petition.
12.1, MVS Supplies and Materials in proportions of MVS Labor, MVS Additional information concerning the
Cost Segment 12.2, and Vehicle Supplies, and Vehicle Depreciation Petition may be accessed via the
Depreciation in Cost Segment 20. Id. costs for city carriers will be attributed Commission’s Web site at http://
Current methodology: The Postal www.prc.gov. Interested persons may
to products. Id. The Postal Service states
Service explains that currently city submit comments on the Petition and
that currently ‘‘Network Travel is not
carrier letter route vehicle costs are Proposal Twelve no later than December
attributed and letter route Delivery
divided into two pools: Delivery 4, 2015. Reply comments are due no
Activities costs has a variability of 43
Activities and Network Travel for later than December 9, 2015. Pursuant to
percent, which results in a combined
motorized letter routes. Id. at 2. The 39 U.S.C. 505, Jennaca D. Upperman is
variability of 18 percent.’’ Id. Under
Postal Service reports that ‘‘[i]n FY designated as officer of the Commission
2014, these respective proportions were Proposal Twelve, the Postal Service
represents that ‘‘the city carrier letter (Public Representative) to represent the
approximately 42 and 58 percent.’’ Id. interests of the general public in this
The Postal Service states that the route costs for MVS Labor, MVS
Supplies, and Vehicle Depreciation proceeding.
current methodology multiplies each
cost pool by the appropriate variability costs are attributed in the same IV. Ordering Paragraphs
to determine attributable costs and that proportion as all letter route street
activities in Cost Segment 7, which It is ordered:
these ‘‘attributable costs are assigned to 1. The Commission establishes Docket
products in the same proportions as results in an attribution level of 36
percent.’’ Id. at 5–6. For FY 2014, the No. RM2016–3 for consideration of the
Cost Segment 7 letter route Delivery matters raised by the Petition of the
Activities costs.’’ Id. Postal Service projects that Proposal
Twelve would increase attributable United States Postal Service for the
Proposed Methodology: Building Initiation of a Proceeding to Consider
upon the new methodology approved by costs by $185 million. Id. at 6. The
Postal Service illustrates the cost impact Proposed Changes in Analytical
the Commission in Proposal Thirteen Principles (Proposal Twelve), filed
for the treatment of labor costs on city by product for Proposal Twelve in Table
1. Id. at 7. November 20, 2015.
delivery letter routes, the Postal Service 2. Comments are due no later than
proposes to ‘‘calculate the attributable B. Calculating Office and Street December 4, 2015. Reply comments are
vehicle costs by multiplying the letter Proportions due no later than December 9, 2015.
route vehicle costs by the new overall
The Postal Service proposes a minor 3. Pursuant to 39 U.S.C. 505, the
letter route street variability’’ and to
change to the methodology for Commission appoints Jennaca D.
assign the attributable costs to products
calculating office and street proportions Upperman to serve as officer of the
using the proportions based on all letter
that are used in the calculation of costs Commission (Public Representative) to
route street costs. Id. The Postal Service
relating to city carrier labor for Vehicle represent the interests of the general
represents that Proposal Twelve would
Hire in Cost Segment 12.3 and Carfare public in this docket.
also change the component structure of
and Driveout in Cost Segment 13.2. Id. 4. The Secretary shall arrange for
the CRA for Cost Segments 12 and 20.
at 1. publication of this order in the Federal
Id. at 4. Specifically, in Cost Segment
Current methodology: The Postal Register.
12, the Network Travel components 86
and 95 would be removed and Service explains that it currently By the Commission.
components 83 and 92, currently named ‘‘develops office and street proportions Stacy L. Ruble,
Delivery Activities, would be renamed for foot and motorized routes using [In- Secretary.
City Delivery Letter Routes. Id. In Cost Office Cost System] IOCS office costs by [FR Doc. 2015–30319 Filed 11–27–15; 8:45 am]
Segment 20, components 222 and 225 route type and street costs by delivery BILLING CODE 7710–FW–P
for Delivery Activities and Network mode.’’ Id. at 2.
Travel would be removed. Id. Proposed Methodology: Building
Component 223 would be established as upon the new methodology approved by FEDERAL COMMUNICATIONS
City Delivery Special Purpose Routes the Commission in Proposal Thirteen, COMMISSION
(SPR) to assign SPR vehicle depreciation the Postal Service proposes to develop
jstallworth on DSK7TPTVN1PROD with PROPOSALS

costs. Id. Finally, component 221 would office and street proportions for foot and 47 CFR Parts 0, 1, 2 and 15
be reactivated and named City Delivery motorized routes using Delivery
Operations Information System [ET Docket No. 13–44; Report No. 3030]
Letter Routes. Id.
Rationale: The Postal Service workhours. Id. The Postal Service Petitions for Reconsideration of Action
represents that Proposal Twelve would would also use city carrier costs for in Rulemaking Proceeding
align the calculation of vehicle use costs Delivery Activities and Network Travel
with the new street time methodology. to further divide the street proportions AGENCY:Federal Communications
Id. at 5. The Postal Service claims that among these components. Id. at 4. Commission.

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Document Created: 2018-03-01 11:12:05
Document Modified: 2018-03-01 11:12:05

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Proposed Rules
Action		Notice of proposed rulemaking.
Dates		Comments are due: December 4, 2015. Reply Comments are due: December 9, 2015.
Contact		David A. Trissell, General Counsel, at 202-789-6820.
FR Citation		80 FR 74741