83_FR_34017 83 FR 33879 - Periodic Reporting Requirements

83 FR 33879 - Periodic Reporting Requirements

POSTAL REGULATORY COMMISSION

Federal Register Volume 83, Issue 138 (July 18, 2018)

Page Range33879-33886
FR Document2018-15326

The Commission is proposing revisions to the periodic reporting requirements codified in our regulations. This document informs the public of the proposed rules, invites public comment, and takes other administrative steps.

Federal Register, Volume 83 Issue 138 (Wednesday, July 18, 2018)
[Federal Register Volume 83, Number 138 (Wednesday, July 18, 2018)]
[Proposed Rules]
[Pages 33879-33886]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-15326]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2018-2; Order No. 4706]


Periodic Reporting Requirements

AGENCY: Postal Regulatory Commission.

ACTION: Proposed rule.

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SUMMARY: The Commission is proposing revisions to the periodic 
reporting requirements codified in our regulations. This document 
informs the public of the proposed rules, invites public comment, and 
takes other administrative steps.

DATES: Comments are due: August 17, 2018.

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. Background
III. Comments
IV. Analysis of Proposed Changes
V. Solicitation of Comments
VI. Conclusion

I. Introduction

    On December 27, 2017, the Postal Service filed a request for the 
Commission to consider revisions to the periodic reporting requirements 
codified in 39 CFR part 3050.\1\ On January 5, 2018, the Commission 
established this docket and invited comments regarding the Postal 
Service's proposed revisions.\2\ Based on comments received in response 
to the Commission's advance notice of proposed rulemaking, the 
Commission proposes the following revisions to the periodic reporting 
requirements found in 39 CFR part 3050.
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    \1\ United States Postal Service Petition for Rulemaking on 
Periodic Reporting, December 27, 2017 (Petition).
    \2\ Advance Notice of Proposed Rulemaking to Revise Periodic 
Reporting Requirements, January 5, 2018 (Order No. 4347).
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II. Background

    The Postal Accountability and Enhancement Act (PAEA) granted the 
Commission enhanced information gathering and reporting 
responsibilities. See 39 U.S.C. 3652(e)(1). The PAEA provides that the 
Commission shall prescribe the content and form of the public reports 
the Postal Service files with the Commission under section 3652. In 
Docket No. RM2008-4, the Commission approved its current periodic 
reporting requirements.\3\
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    \3\ Docket No. RM2008-4, Notice of Final Rule Prescribing Form 
and Content of Periodic Reports, April 16, 2009 (Order No. 203).
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    On December 27, 2017, the Postal Service filed a request for the 
Commission to consider revisions to the periodic reporting 
requirements. First, the Postal Service requests that the Commission 
adjust the deadlines for the quarterly Revenue, Pieces, and Weight 
(RPW) report; the Quarterly Statistics Report (QSR); the quarterly 
Billing Determinants report; and the monthly National Consolidated 
Trial Balance and Revenue and Expense Summary (Trial Balance) report to 
align the deadlines with other financial reporting deadlines. Petition 
at 1. The Postal Service states that aligning these deadlines with 
other financial reporting deadlines will avoid potential restatements 
of the earlier filed reports once the data for the later filed reports 
are finalized. Id. at 3.
    Specifically, the Postal Service seeks to move the quarterly and 
year-end deadlines for the RPW and QSR reports so that they are the 
same as the Form 10-Q and Form 10-K due dates. Id. at 2-3. In addition, 
the Postal Service requests that the Commission extend deadlines for 
quarterly Billing Determinants reports to 60 days after the end of 
Quarters 1, 2, and 3, and 90 days after the end of Quarter 4.\4\ The 
Postal Service also requests that the Commission revise the periodic 
reporting rules so that the Trial Balance reports and the Monthly 
Summary Financial reports have the same deadline. Id. at 5-6.
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    \4\ Id. at 4. The Postal Service also requests that the Quarter 
4 Billing Determinants report be incorporated into the annual 
Billing Determinants report rather than submitted as a standalone 
filing. Id. The Postal Service states that eliminating the 
standalone filing would help the Postal Service more effectively 
allocate scarce time and resources. Id.
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    Second, the Postal Service requests that the Commission modify the 
format of the Monthly Summary Financial Report to make the report more 
consistent with the Postal Service's quarterly and annual financial 
reports. Id. at 1. The Postal Service states that the term ``Operating 
Revenue'' as used in Tables 1 and 2 of the Monthly Summary Financial 
Report does not correspond with its usage in its Form 10-K reports. Id. 
at 7. The Postal Service requests revisions to Tables 1 and 2 of the 
Monthly Summary Financial Report so that the items and amounts reported 
for total operating revenue reconcile on both tables and the breakdown 
for revenue more closely aligns with the format in its other financial 
reports.\5\
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    \5\ Id. The Postal Service also requests updating Table 2 to 
reflect the name change of Standard Mail to USPS Marketing Mail. Id. 
at 8.
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    Third, the Postal Service requests that the Commission consider 
eliminating or modifying any reporting requirements that have become 
unnecessary or irrelevant since implementation of the current periodic 
reporting rules in 2009. Id. at 1. The Postal Service requests that the 
Commission consider eliminating or modifying these requirements to 
avoid imposing ``unnecessary or unwarranted administrative effort and 
expense'' on the Postal Service. Id. at 9 (citing 39 U.S.C. 
3652(e)(1)).

III. Comments

    On March 7, 2018, the Public Representative and United Parcel 
Service, Inc. (UPS) filed comments.\6\ On April 6, 2018, the Postal 
Service and the Parcel Shippers Association (PSA) filed reply 
comments.\7\
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    \6\ Public Representative Comments on Advance Notice of Proposed 
Rulemaking to Revise Periodic Reporting Requirements, March 7, 2018 
(PR Comments); Comments of United Parcel Service, Inc. on Advance 
Notice of Proposed Rulemaking to Revise Periodic Reporting 
Requirements, March 7, 2018 (UPS Comments).
    \7\ Reply Comments of the United States Postal Service, April 6, 
2018 (Postal Service Reply Comments); Reply Comments of the Parcel 
Shippers Association (PSA), April 6, 2018 (PSA Reply Comments).
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    Public Representative. The Public Representative divides her 
discussion into two sections. First, she discusses the guiding 
principles the Commission should consider when revising its periodic 
reporting requirements. PR Comments at 2-4. Specifically, she observes 
that the PAEA outlines three guiding principles for the Commission to 
consider when determining the content and form of the Postal Service's 
public reports submitted under 39 U.S.C. 3652. Id. at 2. The three 
guiding principles are whether the requirement ``(A) provid[es] the 
public with timely, adequate information to assess the lawfulness of 
rates charged; (B) avoid[s] unnecessary or unwarranted administrative 
effort and expense on the

[[Page 33880]]

part of the Postal Service; and (C) protect[s] the confidentiality of 
commercially sensitive information.'' Id. (citing 39 U.S.C. 
3652(e)(1)). The Public Representative concludes that, generally, the 
periodic reporting requirements in 39 CFR part 3050 ``enable the 
Commission to carry out its duties and serve the public interest'' and 
that any revisions should be consistent with the guiding principles in 
section 3652(e)(1). Id. at 4.
    Second, the Public Representative discusses each of the Postal 
Service's specific requests. In response to the Postal Service's 
request to revise the filing deadlines for the Trial Balance, RPW, QSR, 
and Billing Determinants reports, the Public Representative states that 
she supports ``any proposed extensions that would reduce administrative 
expense or effort expended by the Postal Service, so long as the 
proposed extensions do not disrupt the Commission's or the public's 
need for this information on a timely basis.'' Id. at 4-5. The Public 
Representative suggests an additional revision to the filing deadline 
for the Monthly Summary Financial Report for the last month of each 
quarter. Id. at 5. She notes that there is no Form 10-Q report filed 
for the fourth fiscal quarter and suggests that Sec.  3050.28(b)(1) be 
revised so that Monthly Summary Financial Reports for the last month of 
each fiscal quarter be due when the Postal Service files the Form 10-Q 
or the Form 10-K report (whichever is applicable). Id. at 5-6.C
    The Public Representative does not object to the Postal Service's 
proposed revisions to Tables 1 and 2 of the Monthly Summary Financial 
Reports. Id. at 6-7. Specifically, she notes that the proposed revision 
to replace ``Standard Mail'' with ``USPS Marketing Mail'' simply 
reflects the Postal Service's request, and the Commission's approval, 
to change the name of the class. Id. at 6. Additionally, she states 
that the other proposed changes to Tables 1 and 2 ``should better align 
the preliminary financial information'' provided in the Postal 
Service's monthly financial reports with its Form10-Q and Form 10-K 
reports. Id. She notes that adequate transparency remains because 
information that would no longer be included in the revised Tables 1 
and 2 remains publicly available in other periodic reports. Id. at 6-7.
    The Public Representative notes that it is difficult to evaluate 
the Postal Service's request that the Commission eliminate or modify 
the scope of the required reports because the Postal Service did not 
identify any ``unnecessary'' or ``unwarranted'' periodic reporting 
requirements. Id. at 7. She states that such an evaluation requires 
more specific information related to the administrative effort and 
expense on the Postal Service to meets its periodic reporting 
requirements. Id. Specifically, she notes that it would be helpful if 
the Postal Service discussed: ``the data that must be collected to 
comply with the rule; the effort and expense incurred to collect the 
data required by the rule; whether the data would be collected if the 
rule did not require reporting; the accessibility and availability of 
the data to the public, other than through the filing of the periodic 
report required by the rule; the applicable Postal Service data 
retention policy; whether the report would be generated if the rule did 
not require reporting; and the effort and expense incurred to generate 
the report.'' Id. at 7-8.
    The Public Representative observes that the current periodic 
reporting requirements are ``designed to minimize administrative effort 
and expense expended by the Postal Service.'' Id. at 8. For example, 
she notes that few periodic reporting requirements ``impose specific 
detailed form requirements'' and the rules that do impose certain form 
requirements seek to ensure that the Postal Service provides the data 
in a consistent and useful manner. Id. However, the Public 
Representative does note that the Commission could streamline the rules 
that require duplicative submissions. Id.
    UPS. In its comments, UPS discusses the specific revisions 
requested by the Postal Service; \8\ expresses concern that the 
Commission provide notice and an opportunity for comment on any 
proposal to eliminate or modify the Postal Service's periodic reporting 
requirements; \9\ and requests that the Commission require the Postal 
Service to provide segment-level reporting for its competitive 
products.\10\ In regards to the requested revisions to certain 
reporting deadlines, UPS acknowledges the ``merit in aligning the 
release of periodic reports,'' and ``supports modifying the reporting 
deadlines insofar as it relieves the reporting burden on the Postal 
Service and helps provide more accurate data.'' Id. at 4. However, UPS 
does not support the requested revisions to the format of the Monthly 
Summary Financial Report. Id. at 5. UPS expresses concern that the 
requested modification--specifically, the revisions to the definition 
of operating revenue--``could hamper the ability of the Commission and 
other interested parties to look at trends or do any longitudinal 
analysis.'' Id. UPS states that the Postal Service, a government 
agency, should not be able to ``self-define'' the terms it uses in its 
Form 10-Q and Form 10-K reports and seeks to minimize the Postal 
Service's use of self-defined terms. Id. at 5-6.
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    \8\ UPS Comments at 4-6.
    \9\ Id. at 6-7.
    \10\ Id. at 7-10. UPS notes that the ``Postal Service may claim 
that the entire organization is one segment because of the close 
integration of their market[]dominant and competitive products[.]'' 
Id. at 8. UPS states that this ``close integration'' between the 
market dominant and the competitive products is justification for 
requiring the Postal Service to report on market dominant and 
competitive products separately. Id. UPS suggests that the 
requirement that the Postal Service maintain separate accounts for 
market dominant and competitive products indicates that the PAEA 
envisioned that the Postal Service would provide financial reports 
that distinguish between those accounts. Id. at 8-9.
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    PSA Reply Comments. In its reply comments, PSA addresses two issues 
raised in the UPS Comments. PSA Reply Comments at 1. First, PSA agrees 
that if the Commission decides to adopt the proposed additional changes 
to the reporting requirements, that the Commission should ``continue 
its practice of providing notice of the proposed changes and an 
opportunity for interested parties to comment.'' Id. Second, PSA 
disagrees with UPS's request that `` `[t]he Commission ensure that all 
changes requested by the Postal Service increase, rather than decrease, 
the quality and quantity of the information that is available to the 
public' and `hold the Postal Service to higher accounting and reporting 
standards than those imposed on their private sector counterparts.' '' 
Id. at 1-2 (quoting UPS Comments at 2). PSA states that the approach 
proposed by UPS would only increase the Postal Service's reporting 
requirements and administrative burden and is inappropriate given that 
the Postal Service currently provides substantial data on its 
competitive products in its periodic reports. Id. at 2. PSA states such 
data reporting is ``likely much greater than that of its private 
competitors'' and allows the Commission to determine statutory 
compliance. Id. Instead, PSA asserts that the Commission should 
consider whether new reporting requirements are necessary to allow the 
Commission to review compliance and whether the requirements adequately 
protect proprietary information. Id.
    Postal Service Reply Comments. The Postal Service first addresses 
the Public Representative's comments that more information is needed 
about the administrative effort and expense of reporting requirements 
to determine whether the Commission should

[[Page 33881]]

eliminate or modify any unnecessary reporting requirements. Postal 
Service Reply Comments at 1. The Postal Service responds that any 
amount of resources dedicated to producing unnecessary reports 
contravenes 39 U.S.C. 3652(e)(1)(B) because such reports may no longer 
aid the Commission. Id. at 1-2. The Postal Service states that the 
Commission's experience since the implementation of the reporting 
requirements renders the Commission able to assess whether each report 
remains useful for its intended purpose. Id. at 2.
    The Postal Service agrees with the Public Representative's proposal 
that the Commission clarify that its September Monthly Summary 
Financial Report is due with the submission of the Form 10-K. Id. at 3.
    The Postal Service addresses UPS's concerns with the Postal 
Service's use of self-defined terms. Id. at 4-5. The Postal Service 
states that UPS does not identify any problems resulting from prior use 
of the requested definitions and does not explain why the new format 
would be any more or any less consistent with U.S. Securities and 
Exchange Commission (SEC) reporting by private companies. Id. at 5. The 
Postal Service also responds to UPS's suggestion that the Commission 
require separate segment-level reporting for market dominant and 
competitive products. Id. at 6. The Postal Service considers such a 
requirement a ``major substantive expansion of the periodic reporting 
obligations.'' Id. The Postal Service further states that application 
of Financial Accounting Standards Board standards ``points inexorably 
toward the conclusion that the Postal Service operates as one 
segment.'' Id.

IV. Analysis of Proposed Rule Changes

A. Legal Authority

    The PAEA requires the Commission to determine the content and form 
of the Postal Service's periodic reporting. 39 U.S.C. 3652(e)(1). The 
Commission may, either on its own motion or on the request of an 
interested party, initiate proceedings to improve the quality, 
accuracy, or completeness of the Postal Service data used in assessing 
statutory compliance. Id. 3652(e)(2).
    The Postal Service petitioned the Commission to: (1) Change the 
deadlines for certain periodic reports; (2) modify the format of the 
Monthly Summary Financial Report, and (3) eliminate or modify any 
existing reporting requirements that are unnecessary. Pursuant to its 
authority under 39 U.S.C. 3652(e)(1), the Commission makes the 
following modifications to periodic reporting requirements.

B. Deadlines for Certain Periodic Reports

    The Postal Service proposes to move the deadlines for several 
periodic reports. These reports include quarterly RPW and QSR reports, 
quarterly Billing Determinants reports, and monthly Trial Balance 
reports. Petition at 2-6.
    No commenter objected to the proposed deadline modifications. The 
Public Representative ``supports any proposed extensions that would 
reduce administrative expense or effort expended by the Postal 
Service,'' provided that the Commission and public receive necessary 
information on a timely basis. PR Comments at 5. Similarly, UPS 
``supports modifying the deadlines insofar as it relieves the reporting 
burden on the Postal Service and helps provide more accurate data.'' 
UPS Comments at 4.
    The Commission agrees with the Postal Service, the Public 
Representative, and UPS that the proposed deadlines appear to align 
with other financial reporting deadlines. Moving the deadlines for 
these reports should create more streamlined reporting and help ensure 
that the Postal Service is able to provide timely and accurate 
financial reports to the Commission. Accordingly, the Commission 
proposes to modify the following reporting requirements.
    1. Section 3050.25 Volume and revenue data.
    Proposed Sec.  3050.25(c) is revised to state that quarterly RPW 
reporting is due within 40 days of the close of Quarters 1, 2, and 3, 
and 60 days of Quarter 4, but no later than the filing of the Form 10-Q 
or Form 10-K reports. This modification aligns the RPW reporting 
deadlines for Quarters 1, 2, and 3 with the deadlines for filing the 
Form 10-Q report,\11\ and the RPW reporting deadline for Quarter 4 with 
the deadline for filing the Form 10-K report.\12\
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    \11\ 39 CFR 3050.40(a)(1).
    \12\ Id. 3050.40(a)(2).
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    Proposed Sec.  3050.25(d) is revised to extend the QSR reporting 
deadline to 40 days from the close of Quarters 1, 2, and 3, and 60 days 
for Quarter 4, but no later than the filing of the Form 10-Q or Form 
10-K reports. This modification aligns the QSR deadlines with the 
deadlines for Form 10-Q report and Form 10-K report filings, 
respectively.
    Proposed Sec.  3050.25(e) is revised to extend the deadline for 
submitting quarterly Billing Determinants reports to 60 days after the 
close of Quarters 1, 2, and 3 and 90 days after the close of Quarter 4. 
This revision allows the Postal Service ample time to produce billing 
determinants using key inputs, such as the quarterly RPW report. The 
extension for filing of the Quarter 4 quarterly Billing Determinants 
report to 90 days aligns it with the deadline for the annual billing 
determinants report as stated in Sec.  3050.25(b).
    2. Section 3050.28 Monthly and pay period reports.
    Proposed Sec.  3050.28(b) is revised to reflect that the Monthly 
Summary Financial Report for the last months of Quarters 1, 2, and 3 is 
due at the time of filing the Form 10-Q report. As the Public 
Representative notes, the Postal Services files the Form 10-K report, 
not the Form 10-Q report, after Quarter 4. Accordingly, the Commission 
proposes to change the deadline for the Monthly Summary Financial 
Report for the final month of Quarter 4 to align with the filing of the 
Form 10-K report. The deadlines for the first two months of each 
quarter is the 24th day of the following month.
    Proposed Sec.  3050.28(c) is revised to align the deadline for 
filing National Consolidated Trial Balance and Revenue and Expense 
Summary for the last months of each quarter with the deadlines for the 
Monthly Summary Financial Report. For the last months of Quarters 1, 2, 
and 3, the National Consolidated Trial Balance and Revenue and Expense 
Summary is due with the Form 10-Q report, and for the last month of 
Quarter 4 it is due with the Form 10-K report. For the first two months 
of each quarter, the National Consolidated Trial Balance and Revenue 
and Expense Summary are due on the 24th day of the following month, 
aligned with the deadline for the Monthly Summary Financial Report.

C. Format of Monthly Summary Financial Report

    The Postal Service seeks modification of the format of the Monthly 
Summary Financial Report, as illustrated at Sec.  3050.28(b)(1). 
Petition at 6-8. The Postal Service proposes to modify Table 1, USPS 
Monthly Financial Statement, renaming ``Total Operating Revenue'' as 
``Operating Revenue'' while removing subcomponents ``Mail and Services 
Revenue'' and ``Government Appropriations.'' Id. at 7. The Postal 
Service proposes one line item for ``Operating Revenue,'' one for 
``Other Revenue,'' and a third line for ``Total Revenue.'' Id. The 
Postal Service states that this modification is consistent with the 
reporting requirements and definitions for Form 10-Q and Form 10-K 
reporting. Id. The Postal Service states

[[Page 33882]]

that while ``Government Appropriations'' will no longer be its own line 
item on the Monthly Summary Financial Report, it will still be a 
component of ``Operating Revenue,'' consistent with how it is reported 
for U.S. Generally Accepted Accounting Principles purposes. Id.
    The Postal Service also proposes to modify the format of Table 2, 
Mail Volume and Mail Revenue. Id. at 7-8. It seeks to replace the 
``Total All Mail'' input with ``Total Operating Revenue,'' which would 
match the ``Operating Revenue'' input from Table 1. Id. at 8. Finally, 
the Postal Service seeks to change the input for ``Standard Mail'' to 
``USPS Marketing Mail,'' accurately reflecting the new name of the mail 
class. Id.
    UPS requests that the Commission consider parallel SEC reporting 
definitions for publicly traded delivery companies. UPS Comments at 6. 
UPS also suggests requiring the Postal Service to reproduce past 
monthly reports using the proposed new format, or require the Postal 
Service to produce two reports--one using the new format and one using 
the old format--for the first 12 months after adoption of the new 
format. Id.
    The Postal Service's proposal to modify the format of the Monthly 
Summary Financial Report is consistent with the definition of 
``operating revenue'' for purposes of Form 10-K reporting.\13\ The 
Commission does not identify any of the changes as diminishing the 
amount of adequacy of the information provided. While line inputs for 
``Mail and Service Revenue'' and ``Government Appropriations'' will 
collapse into the new ``Operating Revenue'' input, the information 
specific to those categories will remain available. For example, the 
amount reported for ``Government Appropriations'' in Table 1 is located 
in the monthly filed Postal Service ``National Trial Balance'' in 
account number 41431.000 ``Free and Reduced Rate Mail.'' \14\ Given 
that the proposal does not appear to disrupt the ability of the 
Commission or the public to access timely and adequate information, the 
Commission proposes the following rule modifications.
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    \13\ United States Postal Service, 2017 Report on Form 10-K, 
November 14, 2017, at 19.
    \14\ See, e.g., United States Postal Service, National Trial 
Balance and Statement of Revenue and Expenses, March 2018, May 10, 
2018, Excel file ``National Trial Balance--Redacted March 2018 (FY 
2018).xls,'' row 907.
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    1. Section 3050.28(b)(1), Table 1--USPS Monthly Financial 
Statement.
    Proposed Sec.  3050.28(b)(1) changes the input ``Total Operating 
Revenue'' to ``Total Revenue'' in Table 1. The existing input for 
``Operating Revenue'' will remain, but the component inputs ``Mail and 
Services Revenue'' and ``Government Appropriations'' are removed. A new 
heading, ``Revenue,'' holds the inputs for ``Operating Revenue,'' a new 
input for ``Other Revenue,'' and their combined sum in the new ``Total 
Revenue'' input.
    2. Section 3050.28(b)(1), Table 2--Mail Volume and Mail Revenue.
    Proposed Sec.  3050.28(b)(1) changes the current input of 
``Standard Mail'' to ``USPS Marketing Mail'' in Table 2. This change is 
consistent with the change to the name of the class, approved in Order 
No. 3670.\15\
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    \15\ Docket No. R2017-1, Order on Price Adjustments for Special 
Services Products and Related Mail Classification Changes, December 
15, 2016, at 18 (Order No. 3670).
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    The Commission considers the Postal Service's proposal to rename 
``Total All Mail'' with ``Total Operating Revenue'' to be potentially 
confusing. The components within the input are ``Volume'' and 
``Revenue.'' To avoid having an input for the ``Volume'' of ``Total 
Operating Revenue,'' the Commission proposes to remove the ``Total All 
Mail'' input and its components. Instead, the Commission proposes to 
add distinct inputs for ``Total Volume'' and ``Total Operating 
Revenue.'' The ``Total Operating Revenue'' input will match the 
``Operating Revenue'' input from Table 1.

D. Modifications Deemed Necessitated by the Public Interest

    Though the Postal Service requests that the Commission eliminate or 
modify any unnecessary reporting requirements, it does not offer any 
specific suggestions. Petition at 9-10.
    UPS urges the Commission to require segment-level reporting for 
competitive products. UPS Comments at 7. Because the PAEA requires a 
level of structural separation of market dominant and competitive 
products for accounting purposes, UPS states the Commission should 
require separate segment-level reporting for competitive products. Id. 
at 8, 10.
    In prescribing the content and form of annual reports, the 
Commission must consider the adequacy of the information to assess the 
lawfulness of rates charged. 39 U.S.C. 3652(e)(1)(A). The Commission 
finds that the current approach of reporting as a single segment is 
adequate for the purposes of determining compliance. Furthermore, in 
consideration of 39 U.S.C. 3652(e)(2)(A), the Commission does not find 
that the practice of reporting as a single segment is inaccurate or in 
need of substantial improvement. Accordingly, the Commission does not 
adopt the UPS proposal to require segment-level reporting for 
competitive products.
    The Commission has considered all comments and reply comments and 
has evaluated the necessity of modifications to the financial reporting 
requirements. The Commission proposes the following changes.
    1. Section 3050.21 Content of the Postal Service's section 3652 
report.
    The Commission has identified several areas where, in the course of 
preparing the Annual Compliance Determination (ACD), more detailed 
annual financial reporting would better enable the Commission to assess 
PAEA compliance. For the required information, the Commission has, to 
date, been able to request the information from the Postal Service 
during the compressed timeline of the proceeding, which results in the 
submission of the necessary information but creates a burden on the 
Commission and the Postal Service to identify where information gaps 
exist and produce the information required to fill them in a compressed 
timeframe. In order to streamline the ACD process and eliminate the 
administrative effort of both the Postal Service and Commission during 
Annual Compliance Review dockets, the Commission proposes to add 
certain information to the required content of the Postal Service's 
section 3652 report.
    Section 3050.21(f)(6). In the FY 2016 ACD, the Commission directed 
the Postal Service to provide information demonstrating that 
noncompensatory bilateral agreements improve the net financial position 
of the Postal Service over Universal Postal Union (UPU) default 
terminal dues rates.\16\ The Commission finds such information 
necessary to determine whether market dominant negotiated service 
agreements (NSAs) are compliant with 39 U.S.C. 3622(c)(10)(A). 
Accordingly, the Commission proposes to add Sec.  3050.21(f)(6). The 
proposed section requires the Postal Service to file with its Annual 
Compliance Report, documentation demonstrating that noncompensatory 
market dominant NSAs improve the Postal Service's net financial 
position or enhance the performance of mail preparation,

[[Page 33883]]

processing, transportation, or other functions.
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    \16\ Docket No. ACR2016, Annual Compliance Determination, March 
28, 2017, at 69 (FY 2016 ACD).
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    Section 3050.21(j). In Docket No. ACR2017, Chairman's Information 
Request No. 7 requested that the Postal Service provide a distribution 
of market dominant and competitive fees found in the RPW report.\17\ 
The Postal Service responded to CHIR No. 7, providing the mail fee 
distributions for both market dominant \18\ and competitive mail.\19\ 
The Commission used this information to prepare the FY 2017 ACD and 
considers the information necessary for future determinations of 
compliance. To this end, the Commission proposes revising Sec.  
3050.21(j). As currently constructed, the section requires the Postal 
Service to provide any information it believes will help the Commission 
evaluate compliance with title 39. The Commission proposes to move that 
requirement to Sec.  3050.21(n), placing it at the end of the list of 
annual reporting requirements. The Commission's proposal replaces the 
current Sec.  3050.21(j) with a requirement that the Postal Service 
provide a distribution breakdown of mail fees for market dominant and 
competitive products. The purpose of the proposed change is to provide 
the Commission each year with the same information that the Postal 
Service provided in response to Docket No. ACR2017, CHIR No. 7, 
question 3.
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    \17\ Docket No. ACR2017, Chairman's Information Request No. 7 
and Notice of Filing Under Seal, January 23, 2018, question 3 (CHIR 
No. 7).
    \18\ Docket No. ACR2017, Responses of the United States Postal 
Service to Questions 1-3 of Chairman's Information Request No. 7, 
January 30, 2018, question 3, Excel file ``Resp.Q.3.Attach A_MD Fee 
Distrbtn.xlsx.''
    \19\ Docket No. ACR2017, Library Reference USP-FY17-NP36, 
January 30, 2018.
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    Section 3050.21(k). In Docket No. ACR2017, Chairman's Information 
Request No. 1 requested data related to several international mail 
products.\20\ The questions relating to these products included 
requests for information on quarterly and annual data on third-party 
service performance measurements.\21\ Also requested was the amount of 
forfeited revenue for failing to meet the applicable service 
performance requirements. Id. questions 4, 10, and 16.a. The Postal 
Service provided all of the requested information.\22\ The Postal 
Service's Library Reference USPS-FY17-NP31 provided the Commission with 
more complete and accurate financial information regarding certain 
products.\23\ The Commission finds that having such information 
included as part of the Postal Service's annual filing, rather than in 
response to an information request, will better assist the Commission 
in its task of evaluating compliance with title 39. Including the 
information would reduce the burden on the Commission and Postal 
Service of identifying and providing the necessary information during 
the compressed timeline of the annual review. The Commission 
accordingly proposes to add Sec.  3050.21(k). The new section requires 
that the Postal Service provide any third-party service performance 
results where a financial penalty or bonus is applied, and to provide 
the amount of any forfeited revenue. This requirement will apply to all 
market dominant and competitive products, including NSAs. The 
information will provide more accurate revenue analysis for the 
products subject to third-party service performance measurements.
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    \20\ Docket No. ACR2017, Chairman's Information Request No. 1, 
January 5, 2018 (CHIR No. 1).
    \21\ See Docket No. ACR2017, CHIR No. 1, questions 2, 3, 4, 7, 
8, 10, 15, and 16.
    \22\ Docket No. ACR2017, Responses of the United States Postal 
Service to Questions 1-16 of Chairman's Information Request No. 1, 
January 12, 2018 (Docket No. ACR2017, Responses to CHIR No. 1); 
Library Reference USPS-FY17-NP31, January 12, 2018.
    \23\ In its Docket No. ACR2017, Responses to CHIR No. 1, 
question 15, the Postal Service indicated that service performance 
measurements for Inbound Parcel Post are only available for the 
periods January through June and July through August. The Postal 
Service provided this data in Library Reference USPS-FY17-NP31.
---------------------------------------------------------------------------

    Section 3050.21(l). The Commission further proposes to reduce the 
necessity of information requests by adding a requirement that the 
Postal Service provide all total workhour data and data sources, 
showing workhour measurements by Labor Distribution Code. In Docket No. 
ACR2017, Chairman's Information Request No. 2 requested that the Postal 
Service provide this data to supplement total workhour information 
listed in the annual report on Form 10-K.\24\ The Postal Service 
provided the workhour data and data sources in an Excel file.\25\ The 
Commission uses this information in its ACD and seeks this information 
in future years in substantially the same format. Accordingly, the 
Commission proposes to add Sec.  3050.21(l). The proposed requirement 
directs the Postal Service to provide all total workhour data and data 
sources showing workhour measurements by Labor Distribution Code. The 
Commission finds that this requirement will reduce the need for future 
information requests for workhour data.
---------------------------------------------------------------------------

    \24\ Docket No. ACR2017, Chairman's Information Request No. 2, 
January 10, 2018, question 3 (CHIR No. 2).
    \25\ Docket No. ACR2017, Responses of the United States Postal 
Service to Questions 1-19 of Chairman's Information Request No. 2, 
January 17, 2018, question 3, Excel file 
``ChIR.2.Q.3.LDC.Workhours--FY17.xlsx.''
---------------------------------------------------------------------------

    Section 3050.21(m). In recent ACD reports, the Commission has 
continually expressed concerns about the Inbound Letter Post product. 
For example, in the FY 2017 ACD report, the Commission ``reiterate[d] 
its concern that the UPU pricing regime for the Inbound Letter Post 
product continues to result in noncompensatory terminal dues.'' \26\ 
After a brief period of improvement, the contribution for the Inbound 
Letter Post product has decreased from negative $33 million in FY 2011 
to negative $170 million in FY 2017.\27\ In fact, the trend of negative 
contribution existed well before the PAEA. The Commission's precursor, 
the Postal Rate Commission, also identified a trend of net loss in 
contribution for Inbound Letter Post in its annual reports to Congress 
on international mail for FY 1998 to FY 2006.\28\ The Postal Service 
has provided a myriad of explanations for the increasingly poor 
financial performance of the Inbound Letter Post product, including 
increasing costs,\29\ increasing volume,\30\ increasing weight,\31\ and 
failing to meet UPU quality-of-service targets.\32\
---------------------------------------------------------------------------

    \26\ Docket No. ACR2017, Annual Compliance Determination, March 
29, 2018, at 68 (FY 2017 ACD). See FY 2016 ACD at 66; Docket No. 
ACR2015, Annual Compliance Determination, March 28, 2016, at 70 (FY 
2015 ACD); Docket No. ACR2014, Annual Compliance Determination, 
March 27, 2015, at 53 (FY 2014 ACD); Docket No. ACR2013, Annual 
Compliance Determination, March 27, 2014, at 59 (FY 2013 ACD); 
Docket No. ACR2012, Annual Compliance Determination, March 28, 2013, 
at 143 (FY 2012 ACD); Docket No. ACR2011, Annual Compliance 
Determination, March 28, 2012, at 143-144 (FY 2011 ACD); Docket No. 
ACR2010, Annual Compliance Determination, March 29, 2011, at 130-131 
(FY 2010 ACD); Docket No. ACR2009, Annual Compliance Determination, 
March 29, 2010, at 108-109 (FY 2009 ACD); Docket No. ACR2008, Annual 
Compliance Determination, March 30, 2009, at 81 (FY 2008 ACD); 
Docket No. ACR2007, Annual Compliance Determination, March 27, 2008, 
at 115, 118 (FY 2007 ACD).
    \27\ FY 2017 ACD at 65; FY 2011 ACD at 144.
    \28\ FY 2008 ACD at 82; FY 2007 ACD at 116. Pursuant to section 
3663 of the Postal Reorganization Act, the Commission issued eight 
annual reports, apart from IM99-1, to Congress covering Fiscal Years 
1998 through 2005. See Docket Nos. IM99-1, IM2000-1, IM2001-1, 
IM2002-2, IM2003-1, IM2004-1, IM2005-1, and IM2006-1.
    \29\ FY 2017 ACD at 66; FY 2015 ACD at 69; FY 2012 ACD at 145.
    \30\ FY 2017 ACD at 66.
    \31\ FY 2013 ACD at 60; FY 2012 ACD at 145.
    \32\ FY 2009 ACD at 109; FY 2008 ACD at 82.
---------------------------------------------------------------------------

    In recent ACD reports, the Commission has conducted trend analysis 
for products for which the Commission has identified ongoing issues. 
For example, for each fiscal year since the passage of the PAEA, the 
Commission has found that the Periodicals class failed to generate

[[Page 33884]]

revenue sufficient to cover attributable costs.\33\ In the FY 2017 ACD 
report, the Commission analyzed the volume, revenue, attributable cost, 
and contribution for the Periodicals class for FY 2007 to FY 2017. FY 
2017 ACD at 45. The Commission also analyzed the unit revenue, unit 
attributable cost, and unit contribution for Periodicals for the same 
time period. Id. at 46. The Commission also provided analysis of the 
volume, revenue, attributable cost, and contribution for the Outside 
County Periodicals and Within County Periodicals products 
specifically.\34\
---------------------------------------------------------------------------

    \33\ FY 2017 ACD at 45-46; FY 2016 ACD at 42-43; FY 2015 ACD at 
42-43; FY 2014 ACD at 33-34; FY 2013 ACD at 42-43; FY 2012 ACD at 
25; FY 2011 ACD at 16; FY 2010 ACD at 90-91; FY 2009 ACD at 74; FY 
2008 ACD at 54, 56; FY 2007 ACD at 68.
    \34\ See Docket No. ACR2017, Library Reference PRC-LR-ACR2017-5, 
March 29, 2018, Excel file ``FY 2017 Periodicals Cost 
Coverage.xlsx,'' tab ``Cost Coverage.''
---------------------------------------------------------------------------

    In analyzing the continuing issues with the Periodical class, the 
Commission also evaluated how increasing unit cost and decreasing unit 
revenue for Periodicals resulted in a decrease in contribution. FY 2017 
ACD at 46. The Commission discussed factors that related to unit 
revenue and attributable costs for Outside County Periodicals, such as 
the change of mail mix and the unit costs for various presort levels 
within the product (e.g., Carrier Route, 5-Digit, and 3-Digit). Id. at 
49.
    As the result of the ongoing concerns expressed by the Commission 
(and echoed by participants) regarding the financial performance of the 
Inbound Letter Post product,\35\ the Commission plans to use the 
aggregated Inbound Letter Post revenue, volume, attributable cost, and 
contribution data that would be submitted under the proposed rule to 
analyze trends that may result in lower contribution from certain UPU 
country groups. Such analysis could help the Commission more accurately 
identify issues within the Inbound Letter Post product and identify 
appropriate remedial actions.
---------------------------------------------------------------------------

    \35\ See Docket No. IM2016-1, Congressional Letter to Secretary 
of State Rex Tillerson and Postmaster General Megan Brennan, 
November 8, 2017; Docket No. ACR2017, Comments of James Smaldone, 
Founder & CEO, Mighty Mug, Inc., January 25, 2018, at 1-2; Docket 
No. ACR2017, Comments of National Association of Manufacturers on 
Order No. 4377, January 24, 2018, at 2; Docket No. ACR2017, Comments 
of United Parcel Service, Inc. in Response to Notice of Preliminary 
Determination to Unseal the Material Filed in Response to Chairman's 
Information Request No. 1, Question 1, January 24, 2018, at 2-3; 
Docket No. ACR2017, Comments of the Honorable Kenny Marchant on 
Determination to Unseal the Material Filed in Response to Chairman's 
Information Request No. 1, Question 1, January 25, 2018, at 1-2; 
Docket No. ACR2017, Comments of US Chamber of Commerce, January 25, 
2018, at 1-2; Docket No. ACR2017, Comments of SBE Council Related to 
Inbound Letter Post, February 20, 2018, at 1-2; Docket No. ACR2017, 
Comments of United Parcel Service, Inc. in Response to Notice of 
Preliminary Determination to Unseal the Postal Service's Response to 
Chairman's Information Request No. 15, February 23, 2018, at 3-4; 
Docket No. ACR2017, Reply Comments of United Parcel Service, Inc. on 
United States Postal Service Motion for Reconsideration of Order No. 
4551, April 13, 2018, at 4; Docket No. ACR2017, Comments of U.S. 
Chamber of Commerce, April 13, 2018, at 1; Docket No. IM2018-1, 
Comments Received from U.S. Representatives Kenny Marchant and Ralph 
Abraham, July 3, 2018, at 1; Docket No. IM2018-1, Comment Received 
from U.S. Senator Bill Cassidy, M.D., July 3, 2018, at 1.
---------------------------------------------------------------------------

    Accordingly, the Commission proposes to add Sec.  3050.21(m). The 
new section requires that the Postal Service provide Inbound Letter 
Post revenue, volume, attributable cost, and contribution data 
aggregated by UPU country group and by shape for the preceding five 
fiscal years when it files its Annual Compliance Report. The Commission 
finds that this requirement will reduce the need for future information 
requests for aggregated Inbound Letter Post data.
    Section 3050.21(n). The Commission proposes to move the requirement 
that the Postal Service provide any other information that it 
anticipates will help the Commission evaluate compliance. The 
Commission finds it appropriate to place this general requirement at 
the end of the list of items included in the Annual Compliance Report. 
The substance of former Sec.  3050.21(j) will be unchanged. The 
requirement will only be renumbered as Sec.  3050.21(n).\36\
---------------------------------------------------------------------------

    \36\ Current Sec.  3050.21(a) requires the annual report to 
provide the items listed in paragraphs (b) through (j) of Sec.  
3050.21. Proposed paragraphs (k) through (n) necessitate that the 
Commission revise Sec.  3050.21(a) to require the report to include 
the items listed in paragraphs (b) through (n).
---------------------------------------------------------------------------

    2. Section 3050.60 Miscellaneous Reports and Documents.
    The Commission, having considered whether any current reporting 
requirements are unnecessary, proposes to modify Sec.  3050.60(c). The 
Postal Service provides a master list of publications and handbooks 
whenever changed, in accordance with Sec.  3050.60(b). The Commission 
welcomes those publications and handbooks in electronic form, as it 
would reduce the administrative effort of both the Postal Service and 
the Commission without degrading the utility of the publication or 
handbook. Accordingly, the Commission proposes to revise Sec.  
3050.60(c) to require only an electronic copy of all changed 
publications and handbooks.

V. Solicitation of Comments

    The Commission invites interested persons to comment on the changes 
proposed in this rulemaking. Comments are due no later than 30 days 
after publication of this Notice in the Federal Register.

VI. Conclusion

    It is ordered:
    1. The Commission proposes to amend existing periodic reporting 
rules located at 39 CFR part 3050.
    2. Lauren A. D'Agostino will continue to serve as an officer of the 
Commission (Public Representative) to represent the interests of the 
general public in this rulemaking proceeding.
    3. Interested persons may submit comments no later than 30 days 
from the date of publication of this Notice in the Federal Register.
    4. The Secretary shall arrange for publication of this notice in 
the Federal Register.

    By the Commission.
Stacy L. Ruble,
Secretary. Vice Chairman Hammond dissenting.

List of Subjects in 39 CFR Part 3050

    Administrative practice and procedure, Reporting and recordkeeping 
requirements.

    For the reasons discussed in the preamble, the Commission proposes 
to amend Chapter III of title 39 of the Code of Federal Regulations as 
follows:

PART 3050--PERIODIC REPORTING

0
1. The authority citation for part 3050 continues to read as follows:

    Authority: 39 U.S.C. 503, 3651, 3652, 3653.s.

0
2. Amend Sec.  3050.21 by:
0
a. Revising paragraph (a),
0
b. Adding paragraph (f)(6),
0
c. Revising paragraph (j), and
0
d. Adding paragraphs (k), (l), (m), and (n).
    The additions and revisions read as follows:


Sec.  3050.21   Content of the Postal Service's section 3652 report.

    (a) No later than 90 days after the close of each fiscal year, the 
Postal Service shall submit a report to the Commission analyzing its 
costs, volume, revenue, rate, and service information in sufficient 
detail to demonstrate that all products during such year comply with 
all applicable provisions of title 39 of the United States Code. The 
report shall provide the items in paragraphs (b) through (n) of this 
section.
* * * * *
    (f) * * *
    (6) Provide financial or other supporting documentation that

[[Page 33885]]

demonstrates that noncompensatory market dominant negotiated service 
agreements improve the net financial position of the Postal Service 
over default rates or enhance the performance of mail preparation, 
processing, transportation, or other functions.
* * * * *
    (j) For market dominant and competitive products, provide a 
distribution breakdown of mail fees, including all underlying 
calculations and source workpapers;
    (k) For market dominant and competitive products, including 
negotiated service agreements, provide any third-party service 
performance results upon which any financial penalty or bonus is 
determined, and the amount of any forfeited revenue;
    (l) Provide all total workhour data and data sources showing 
workhour measurements by Labor Distribution Code;
    (m) For the Inbound Letter Post product, provide revenue, volume, 
attributable cost, and contribution data by Universal Postal Union 
country group and by shape for the preceding five fiscal years; and
    (n) Provide any other information that the Postal Service believes 
will help the Commission evaluate the Postal Service's compliance with 
the applicable provisions of title 39 of the United States Code.
0
3. Amend Sec.  3050.25 by revising paragraphs (c), (d), and (e) to read 
as follows:


Sec.  3050.25  Volume and revenue data.

* * * * *
    (c) Revenue, pieces, and weight by rate category and special 
service by quarter, within 40 days of the close of Quarters 1, 2, and 3 
of the fiscal year and 60 days after Quarter 4, but no later than the 
filing of reports filed pursuant to section 3050.40(a) or 3050.40(b);
    (d) Quarterly Statistics Report, including estimates by shape, 
weight, and indicia, within 40 days of the close of Quarters 1, 2, and 
3 of the fiscal year and 60 days after Quarter 4 but no later than the 
filing of reports filed pursuant to section 3050.40(a) or 3050.40(b); 
and
    (e) Billing determinants within 60 days of the close of Quarters 1, 
2, and 3 of the fiscal year and 90 days after Quarter 4.
0
4. Amend Sec.  3050.28 by revising paragraph (b), tables 1 and 2 in 
paragraph (b)(1), and paragraph (c) to read as follows:


Sec.  3050.28  Monthly and pay period reports.

* * * * *
    (b) Monthly Summary Financial Report on the 24th day of the 
following month, except that the reports for the last months of 
Quarters 1, 2, and 3 of the fiscal year shall be provided at the time 
that the Form 10-Q report is provided and the report for the last month 
of Quarter 4 of the fiscal year shall be provided at the time that the 
Form 10-K report is provided;
    (1) * * *

                          Table 1--USPS Monthly Financial Statement--Month, Fiscal Year
                                                  [$ millions]
----------------------------------------------------------------------------------------------------------------
                                       Current period                                Year-to-date
                       -----------------------------------------------------------------------------------------
                                                    % Plan   % SPLY                              % Plan   % SPLY
                         Actual    Plan     SPLY     Var      Var     Actual    Plan     SPLY     Var      Var
----------------------------------------------------------------------------------------------------------------
Revenue:
    Operating Revenue
    Other Revenue
Operating Expenses
    Personnel
     Compensation and
     Benefits
    Transportation
    Supplies and
     Services
    Other Services
Total Operating
 Expenses
New Operating Income
Interest Income
Interest Expense
Total Net Income
Other Operating
 Statistics
    Mail Volume
     (Millions)
        Total Market
         Dominant
         Volumes
        Total
         Competitive
         Product
         Volumes
Total Mail Volumes
Total Workhours
 (Millions)
Total Career Employees
Total Non-Career
 Employees
----------------------------------------------------------------------------------------------------------------


                            Table 2--Mail Volume and Mail Revenue--Month, Fiscal Year
                                                   [Thousands]
----------------------------------------------------------------------------------------------------------------
                                  Current period                                   Year-to-date
                 -----------------------------------------------------------------------------------------------
                      Actual           SPLY         % SPLY var.       Actual           SPLY         % SPLY var.
----------------------------------------------------------------------------------------------------------------
Market Dominant
 Products:
    First Class:
        Volume
        Revenue
    Periodicals:
        Volume

[[Page 33886]]

 
        Revenue
USPS Marketing
 Mail:
        Volume
        Revenue
    Package
     Services:
        Volume
        Revenue
    All Other
     Market
     Dominant
     Mail:
        Volume
        Revenue
Total Market
 Dominant
 Products:
        Volume
        Revenue
Total
 Competitive
 Products
        Volume
        Revenue
            Tota
             l
             Ope
             rat
             ing
             Rev
             enu
             e:
            Tota
             l
             Vol
             ume
----------------------------------------------------------------------------------------------------------------

* * * * *
    (c) National Consolidated Trial Balances and the Revenue and 
Expense Summary on the 24th day of the following month, except that the 
reports for the last month of Quarters 1, 2, and 3 of the fiscal year 
shall be provided at the time that the Form 10-Q report is provided and 
the report for the last month of Quarter 4 of the fiscal year shall be 
provided at the time that the Form 10-K report is provided;
* * * * *
0
5. Amend Sec.  3050.60 by revising paragraph (c) to read as follows:


Sec.  3050.60  Miscellaneous reports and documents.

* * * * *
    (c) The items listed in paragraph (b) of this section in electronic 
form;
* * * * *
[FR Doc. 2018-15326 Filed 7-17-18; 8:45 am]
 BILLING CODE 7710-FW-P



                                                                       Federal Register / Vol. 83, No. 138 / Wednesday, July 18, 2018 / Proposed Rules                                                      33879

                                                decision adopting these rules as final                   proposed rulemaking, the Commission                       consistent with the Postal Service’s
                                                regulations in the Federal Register.                     proposes the following revisions to the                   quarterly and annual financial reports.
                                                                                                         periodic reporting requirements found                     Id. at 1. The Postal Service states that
                                                Kirsten Wielobob,
                                                                                                         in 39 CFR part 3050.                                      the term ‘‘Operating Revenue’’ as used
                                                Deputy Commissioner for Services and
                                                                                                                                                                   in Tables 1 and 2 of the Monthly
                                                Enforcement.                                             II. Background
                                                                                                                                                                   Summary Financial Report does not
                                                [FR Doc. 2018–15351 Filed 7–13–18; 4:15 pm]                 The Postal Accountability and                          correspond with its usage in its Form
                                                BILLING CODE 4830–01–P                                   Enhancement Act (PAEA) granted the                        10–K reports. Id. at 7. The Postal Service
                                                                                                         Commission enhanced information                           requests revisions to Tables 1 and 2 of
                                                                                                         gathering and reporting responsibilities.                 the Monthly Summary Financial Report
                                                POSTAL REGULATORY COMMISSION                             See 39 U.S.C. 3652(e)(1). The PAEA                        so that the items and amounts reported
                                                                                                         provides that the Commission shall                        for total operating revenue reconcile on
                                                39 CFR Part 3050                                         prescribe the content and form of the                     both tables and the breakdown for
                                                [Docket No. RM2018–2; Order No. 4706]                    public reports the Postal Service files                   revenue more closely aligns with the
                                                                                                         with the Commission under section                         format in its other financial reports.5
                                                Periodic Reporting Requirements                          3652. In Docket No. RM2008–4, the                            Third, the Postal Service requests that
                                                                                                         Commission approved its current                           the Commission consider eliminating or
                                                AGENCY:    Postal Regulatory Commission.                 periodic reporting requirements.3
                                                ACTION:   Proposed rule.                                                                                           modifying any reporting requirements
                                                                                                            On December 27, 2017, the Postal                       that have become unnecessary or
                                                                                                         Service filed a request for the                           irrelevant since implementation of the
                                                SUMMARY:   The Commission is proposing
                                                                                                         Commission to consider revisions to the                   current periodic reporting rules in 2009.
                                                revisions to the periodic reporting
                                                                                                         periodic reporting requirements. First,                   Id. at 1. The Postal Service requests that
                                                requirements codified in our
                                                                                                         the Postal Service requests that the
                                                regulations. This document informs the                                                                             the Commission consider eliminating or
                                                                                                         Commission adjust the deadlines for the
                                                public of the proposed rules, invites                                                                              modifying these requirements to avoid
                                                                                                         quarterly Revenue, Pieces, and Weight
                                                public comment, and takes other                                                                                    imposing ‘‘unnecessary or unwarranted
                                                                                                         (RPW) report; the Quarterly Statistics
                                                administrative steps.                                                                                              administrative effort and expense’’ on
                                                                                                         Report (QSR); the quarterly Billing
                                                DATES: Comments are due: August 17,                                                                                the Postal Service. Id. at 9 (citing 39
                                                                                                         Determinants report; and the monthly
                                                2018.                                                                                                              U.S.C. 3652(e)(1)).
                                                                                                         National Consolidated Trial Balance and
                                                ADDRESSES: Submit comments                               Revenue and Expense Summary (Trial                        III. Comments
                                                electronically via the Commission’s                      Balance) report to align the deadlines                       On March 7, 2018, the Public
                                                Filing Online system at http://                          with other financial reporting deadlines.                 Representative and United Parcel
                                                www.prc.gov. Those who cannot submit                     Petition at 1. The Postal Service states
                                                                                                                                                                   Service, Inc. (UPS) filed comments.6 On
                                                comments electronically should contact                   that aligning these deadlines with other
                                                                                                                                                                   April 6, 2018, the Postal Service and the
                                                the person identified in the FOR FURTHER                 financial reporting deadlines will avoid
                                                                                                                                                                   Parcel Shippers Association (PSA) filed
                                                INFORMATION CONTACT section by                           potential restatements of the earlier filed
                                                                                                                                                                   reply comments.7
                                                telephone for advice on filing                           reports once the data for the later filed
                                                                                                                                                                      Public Representative. The Public
                                                alternatives.                                            reports are finalized. Id. at 3.
                                                                                                            Specifically, the Postal Service seeks                 Representative divides her discussion
                                                FOR FURTHER INFORMATION CONTACT:                                                                                   into two sections. First, she discusses
                                                                                                         to move the quarterly and year-end
                                                David A. Trissell, General Counsel, at                                                                             the guiding principles the Commission
                                                                                                         deadlines for the RPW and QSR reports
                                                202–789–6820.                                                                                                      should consider when revising its
                                                                                                         so that they are the same as the Form
                                                SUPPLEMENTARY INFORMATION:                               10–Q and Form 10–K due dates. Id. at                      periodic reporting requirements. PR
                                                                                                         2–3. In addition, the Postal Service                      Comments at 2–4. Specifically, she
                                                Table of Contents
                                                                                                         requests that the Commission extend                       observes that the PAEA outlines three
                                                I. Introduction
                                                                                                         deadlines for quarterly Billing                           guiding principles for the Commission
                                                II. Background                                                                                                     to consider when determining the
                                                III. Comments
                                                                                                         Determinants reports to 60 days after the
                                                                                                         end of Quarters 1, 2, and 3, and 90 days                  content and form of the Postal Service’s
                                                IV. Analysis of Proposed Changes                                                                                   public reports submitted under 39
                                                V. Solicitation of Comments                              after the end of Quarter 4.4 The Postal
                                                VI. Conclusion                                           Service also requests that the                            U.S.C. 3652. Id. at 2. The three guiding
                                                                                                         Commission revise the periodic                            principles are whether the requirement
                                                I. Introduction                                          reporting rules so that the Trial Balance                 ‘‘(A) provid[es] the public with timely,
                                                   On December 27, 2017, the Postal                      reports and the Monthly Summary                           adequate information to assess the
                                                Service filed a request for the                          Financial reports have the same                           lawfulness of rates charged; (B) avoid[s]
                                                Commission to consider revisions to the                  deadline. Id. at 5–6.                                     unnecessary or unwarranted
                                                periodic reporting requirements                             Second, the Postal Service requests                    administrative effort and expense on the
                                                codified in 39 CFR part 3050.1 On                        that the Commission modify the format
                                                                                                                                                                     5 Id. The Postal Service also requests updating
                                                January 5, 2018, the Commission                          of the Monthly Summary Financial                          Table 2 to reflect the name change of Standard Mail
                                                established this docket and invited                      Report to make the report more                            to USPS Marketing Mail. Id. at 8.
                                                comments regarding the Postal Service’s                                                                              6 Public Representative Comments on Advance

                                                proposed revisions.2 Based on                              3 Docket No. RM2008–4, Notice of Final Rule             Notice of Proposed Rulemaking to Revise Periodic
amozie on DSK3GDR082PROD with PROPOSALS1




                                                comments received in response to the                     Prescribing Form and Content of Periodic Reports,         Reporting Requirements, March 7, 2018 (PR
                                                                                                         April 16, 2009 (Order No. 203).                           Comments); Comments of United Parcel Service,
                                                Commission’s advance notice of                             4 Id. at 4. The Postal Service also requests that the   Inc. on Advance Notice of Proposed Rulemaking to
                                                                                                         Quarter 4 Billing Determinants report be                  Revise Periodic Reporting Requirements, March 7,
                                                  1 United States Postal Service Petition for                                                                      2018 (UPS Comments).
                                                                                                         incorporated into the annual Billing Determinants
                                                Rulemaking on Periodic Reporting, December 27,           report rather than submitted as a standalone filing.        7 Reply Comments of the United States Postal
                                                2017 (Petition).                                         Id. The Postal Service states that eliminating the        Service, April 6, 2018 (Postal Service Reply
                                                  2 Advance Notice of Proposed Rulemaking to             standalone filing would help the Postal Service           Comments); Reply Comments of the Parcel Shippers
                                                Revise Periodic Reporting Requirements, January 5,       more effectively allocate scarce time and resources.      Association (PSA), April 6, 2018 (PSA Reply
                                                2018 (Order No. 4347).                                   Id.                                                       Comments).



                                           VerDate Sep<11>2014   17:43 Jul 17, 2018   Jkt 244001   PO 00000   Frm 00007   Fmt 4702   Sfmt 4702   E:\FR\FM\18JYP1.SGM     18JYP1


                                                33880                  Federal Register / Vol. 83, No. 138 / Wednesday, July 18, 2018 / Proposed Rules

                                                part of the Postal Service; and (C)                      ‘‘unnecessary’’ or ‘‘unwarranted’’                       periodic reports,’’ and ‘‘supports
                                                protect[s] the confidentiality of                        periodic reporting requirements. Id. at 7.               modifying the reporting deadlines
                                                commercially sensitive information.’’ Id.                She states that such an evaluation                       insofar as it relieves the reporting
                                                (citing 39 U.S.C. 3652(e)(1)). The Public                requires more specific information                       burden on the Postal Service and helps
                                                Representative concludes that,                           related to the administrative effort and                 provide more accurate data.’’ Id. at 4.
                                                generally, the periodic reporting                        expense on the Postal Service to meets                   However, UPS does not support the
                                                requirements in 39 CFR part 3050                         its periodic reporting requirements. Id.                 requested revisions to the format of the
                                                ‘‘enable the Commission to carry out its                 Specifically, she notes that it would be                 Monthly Summary Financial Report. Id.
                                                duties and serve the public interest’’                   helpful if the Postal Service discussed:                 at 5. UPS expresses concern that the
                                                and that any revisions should be                         ‘‘the data that must be collected to                     requested modification—specifically,
                                                consistent with the guiding principles                   comply with the rule; the effort and                     the revisions to the definition of
                                                in section 3652(e)(1). Id. at 4.                         expense incurred to collect the data                     operating revenue—‘‘could hamper the
                                                   Second, the Public Representative                     required by the rule; whether the data                   ability of the Commission and other
                                                discusses each of the Postal Service’s                   would be collected if the rule did not                   interested parties to look at trends or do
                                                specific requests. In response to the                    require reporting; the accessibility and                 any longitudinal analysis.’’ Id. UPS
                                                Postal Service’s request to revise the                   availability of the data to the public,                  states that the Postal Service, a
                                                filing deadlines for the Trial Balance,                  other than through the filing of the                     government agency, should not be able
                                                RPW, QSR, and Billing Determinants                       periodic report required by the rule; the                to ‘‘self-define’’ the terms it uses in its
                                                reports, the Public Representative states                applicable Postal Service data retention                 Form 10–Q and Form 10–K reports and
                                                that she supports ‘‘any proposed                         policy; whether the report would be                      seeks to minimize the Postal Service’s
                                                extensions that would reduce                             generated if the rule did not require                    use of self-defined terms. Id. at 5–6.
                                                administrative expense or effort                         reporting; and the effort and expense                       PSA Reply Comments. In its reply
                                                expended by the Postal Service, so long                  incurred to generate the report.’’ Id. at                comments, PSA addresses two issues
                                                as the proposed extensions do not                        7–8.                                                     raised in the UPS Comments. PSA Reply
                                                disrupt the Commission’s or the public’s                    The Public Representative observes                    Comments at 1. First, PSA agrees that if
                                                need for this information on a timely                    that the current periodic reporting                      the Commission decides to adopt the
                                                basis.’’ Id. at 4–5. The Public                          requirements are ‘‘designed to minimize                  proposed additional changes to the
                                                Representative suggests an additional                    administrative effort and expense                        reporting requirements, that the
                                                revision to the filing deadline for the                  expended by the Postal Service.’’ Id. at                 Commission should ‘‘continue its
                                                Monthly Summary Financial Report for                     8. For example, she notes that few                       practice of providing notice of the
                                                the last month of each quarter. Id. at 5.                periodic reporting requirements                          proposed changes and an opportunity
                                                She notes that there is no Form 10–Q                     ‘‘impose specific detailed form                          for interested parties to comment.’’ Id.
                                                report filed for the fourth fiscal quarter               requirements’’ and the rules that do                     Second, PSA disagrees with UPS’s
                                                and suggests that § 3050.28(b)(1) be                     impose certain form requirements seek                    request that ‘‘ ‘[t]he Commission ensure
                                                revised so that Monthly Summary                          to ensure that the Postal Service                        that all changes requested by the Postal
                                                Financial Reports for the last month of                  provides the data in a consistent and                    Service increase, rather than decrease,
                                                each fiscal quarter be due when the                      useful manner. Id. However, the Public                   the quality and quantity of the
                                                Postal Service files the Form 10–Q or                    Representative does note that the                        information that is available to the
                                                the Form 10–K report (whichever is                       Commission could streamline the rules                    public’ and ‘hold the Postal Service to
                                                applicable). Id. at 5–6.                                 that require duplicative submissions. Id.                higher accounting and reporting
                                                   The Public Representative does not                       UPS. In its comments, UPS discusses                   standards than those imposed on their
                                                object to the Postal Service’s proposed                  the specific revisions requested by the                  private sector counterparts.’ ’’ Id. at 1–2
                                                revisions to Tables 1 and 2 of the                       Postal Service; 8 expresses concern that                 (quoting UPS Comments at 2). PSA
                                                Monthly Summary Financial Reports.                       the Commission provide notice and an                     states that the approach proposed by
                                                Id. at 6–7. Specifically, she notes that                 opportunity for comment on any                           UPS would only increase the Postal
                                                the proposed revision to replace                         proposal to eliminate or modify the                      Service’s reporting requirements and
                                                ‘‘Standard Mail’’ with ‘‘USPS Marketing                  Postal Service’s periodic reporting                      administrative burden and is
                                                Mail’’ simply reflects the Postal                        requirements; 9 and requests that the                    inappropriate given that the Postal
                                                Service’s request, and the Commission’s                  Commission require the Postal Service                    Service currently provides substantial
                                                approval, to change the name of the                      to provide segment-level reporting for                   data on its competitive products in its
                                                class. Id. at 6. Additionally, she states                its competitive products.10 In regards to                periodic reports. Id. at 2. PSA states
                                                that the other proposed changes to                       the requested revisions to certain                       such data reporting is ‘‘likely much
                                                Tables 1 and 2 ‘‘should better align the                 reporting deadlines, UPS acknowledges                    greater than that of its private
                                                preliminary financial information’’                      the ‘‘merit in aligning the release of                   competitors’’ and allows the
                                                provided in the Postal Service’s                                                                                  Commission to determine statutory
                                                monthly financial reports with its                            8 UPS Comments at 4–6.                              compliance. Id. Instead, PSA asserts that
                                                Form10–Q and Form 10–K reports. Id.                           9 Id.
                                                                                                                 at 6–7.                                          the Commission should consider
                                                                                                            10 Id. at 7–10. UPS notes that the ‘‘Postal Service
                                                She notes that adequate transparency                                                                              whether new reporting requirements are
                                                                                                         may claim that the entire organization is one
                                                remains because information that would                   segment because of the close integration of their        necessary to allow the Commission to
                                                no longer be included in the revised                     market[]dominant and competitive products[.]’’ Id.       review compliance and whether the
                                                Tables 1 and 2 remains publicly                          at 8. UPS states that this ‘‘close integration’’         requirements adequately protect
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                                                available in other periodic reports. Id. at              between the market dominant and the competitive          proprietary information. Id.
                                                                                                         products is justification for requiring the Postal
                                                6–7.                                                     Service to report on market dominant and
                                                                                                                                                                     Postal Service Reply Comments. The
                                                   The Public Representative notes that                  competitive products separately. Id. UPS suggests        Postal Service first addresses the Public
                                                it is difficult to evaluate the Postal                   that the requirement that the Postal Service             Representative’s comments that more
                                                Service’s request that the Commission                    maintain separate accounts for market dominant           information is needed about the
                                                                                                         and competitive products indicates that the PAEA
                                                eliminate or modify the scope of the                     envisioned that the Postal Service would provide
                                                                                                                                                                  administrative effort and expense of
                                                required reports because the Postal                      financial reports that distinguish between those         reporting requirements to determine
                                                Service did not identify any                             accounts. Id. at 8–9.                                    whether the Commission should


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                                                                       Federal Register / Vol. 83, No. 138 / Wednesday, July 18, 2018 / Proposed Rules                                                  33881

                                                eliminate or modify any unnecessary                      modifications to periodic reporting                          and 3 and 90 days after the close of
                                                reporting requirements. Postal Service                   requirements.                                                Quarter 4. This revision allows the
                                                Reply Comments at 1. The Postal                                                                                       Postal Service ample time to produce
                                                                                                         B. Deadlines for Certain Periodic
                                                Service responds that any amount of                                                                                   billing determinants using key inputs,
                                                                                                         Reports
                                                resources dedicated to producing                                                                                      such as the quarterly RPW report. The
                                                unnecessary reports contravenes 39                          The Postal Service proposes to move                       extension for filing of the Quarter 4
                                                U.S.C. 3652(e)(1)(B) because such                        the deadlines for several periodic                           quarterly Billing Determinants report to
                                                reports may no longer aid the                            reports. These reports include quarterly                     90 days aligns it with the deadline for
                                                Commission. Id. at 1–2. The Postal                       RPW and QSR reports, quarterly Billing                       the annual billing determinants report
                                                Service states that the Commission’s                     Determinants reports, and monthly Trial                      as stated in § 3050.25(b).
                                                experience since the implementation of                   Balance reports. Petition at 2–6.                               2. Section 3050.28 Monthly and pay
                                                the reporting requirements renders the                      No commenter objected to the                              period reports.
                                                Commission able to assess whether each                   proposed deadline modifications. The                            Proposed § 3050.28(b) is revised to
                                                report remains useful for its intended                   Public Representative ‘‘supports any                         reflect that the Monthly Summary
                                                purpose. Id. at 2.                                       proposed extensions that would reduce                        Financial Report for the last months of
                                                   The Postal Service agrees with the                    administrative expense or effort                             Quarters 1, 2, and 3 is due at the time
                                                Public Representative’s proposal that                    expended by the Postal Service,’’                            of filing the Form 10–Q report. As the
                                                the Commission clarify that its                          provided that the Commission and                             Public Representative notes, the Postal
                                                September Monthly Summary Financial                      public receive necessary information on                      Services files the Form 10–K report, not
                                                Report is due with the submission of the                 a timely basis. PR Comments at 5.                            the Form 10–Q report, after Quarter 4.
                                                Form 10–K. Id. at 3.                                     Similarly, UPS ‘‘supports modifying the                      Accordingly, the Commission proposes
                                                   The Postal Service addresses UPS’s                    deadlines insofar as it relieves the                         to change the deadline for the Monthly
                                                concerns with the Postal Service’s use of                reporting burden on the Postal Service                       Summary Financial Report for the final
                                                self-defined terms. Id. at 4–5. The Postal               and helps provide more accurate data.’’                      month of Quarter 4 to align with the
                                                Service states that UPS does not identify                UPS Comments at 4.                                           filing of the Form 10–K report. The
                                                any problems resulting from prior use of                    The Commission agrees with the                            deadlines for the first two months of
                                                the requested definitions and does not                   Postal Service, the Public                                   each quarter is the 24th day of the
                                                explain why the new format would be                      Representative, and UPS that the                             following month.
                                                any more or any less consistent with                     proposed deadlines appear to align with                         Proposed § 3050.28(c) is revised to
                                                U.S. Securities and Exchange                             other financial reporting deadlines.                         align the deadline for filing National
                                                Commission (SEC) reporting by private                    Moving the deadlines for these reports                       Consolidated Trial Balance and Revenue
                                                companies. Id. at 5. The Postal Service                  should create more streamlined                               and Expense Summary for the last
                                                also responds to UPS’s suggestion that                   reporting and help ensure that the                           months of each quarter with the
                                                the Commission require separate                          Postal Service is able to provide timely                     deadlines for the Monthly Summary
                                                segment-level reporting for market                       and accurate financial reports to the                        Financial Report. For the last months of
                                                                                                         Commission. Accordingly, the                                 Quarters 1, 2, and 3, the National
                                                dominant and competitive products. Id.
                                                                                                         Commission proposes to modify the                            Consolidated Trial Balance and Revenue
                                                at 6. The Postal Service considers such
                                                                                                         following reporting requirements.                            and Expense Summary is due with the
                                                a requirement a ‘‘major substantive
                                                                                                            1. Section 3050.25 Volume and                             Form 10–Q report, and for the last
                                                expansion of the periodic reporting
                                                                                                         revenue data.                                                month of Quarter 4 it is due with the
                                                obligations.’’ Id. The Postal Service
                                                                                                            Proposed § 3050.25(c) is revised to                       Form 10–K report. For the first two
                                                further states that application of
                                                                                                         state that quarterly RPW reporting is                        months of each quarter, the National
                                                Financial Accounting Standards Board
                                                                                                         due within 40 days of the close of                           Consolidated Trial Balance and Revenue
                                                standards ‘‘points inexorably toward the
                                                                                                         Quarters 1, 2, and 3, and 60 days of                         and Expense Summary are due on the
                                                conclusion that the Postal Service
                                                                                                         Quarter 4, but no later than the filing of                   24th day of the following month,
                                                operates as one segment.’’ Id.
                                                                                                         the Form 10–Q or Form 10–K reports.                          aligned with the deadline for the
                                                IV. Analysis of Proposed Rule Changes                    This modification aligns the RPW                             Monthly Summary Financial Report.
                                                A. Legal Authority                                       reporting deadlines for Quarters 1, 2,                       C. Format of Monthly Summary
                                                                                                         and 3 with the deadlines for filing the                      Financial Report
                                                   The PAEA requires the Commission                      Form 10–Q report,11 and the RPW
                                                to determine the content and form of the                 reporting deadline for Quarter 4 with                           The Postal Service seeks modification
                                                Postal Service’s periodic reporting. 39                  the deadline for filing the Form 10–K                        of the format of the Monthly Summary
                                                U.S.C. 3652(e)(1). The Commission may,                   report.12                                                    Financial Report, as illustrated at
                                                either on its own motion or on the                          Proposed § 3050.25(d) is revised to                       § 3050.28(b)(1). Petition at 6–8. The
                                                request of an interested party, initiate                 extend the QSR reporting deadline to 40                      Postal Service proposes to modify Table
                                                proceedings to improve the quality,                      days from the close of Quarters 1, 2, and                    1, USPS Monthly Financial Statement,
                                                accuracy, or completeness of the Postal                  3, and 60 days for Quarter 4, but no later                   renaming ‘‘Total Operating Revenue’’ as
                                                Service data used in assessing statutory                 than the filing of the Form 10–Q or                          ‘‘Operating Revenue’’ while removing
                                                compliance. Id. 3652(e)(2).                              Form 10–K reports. This modification                         subcomponents ‘‘Mail and Services
                                                   The Postal Service petitioned the                     aligns the QSR deadlines with the                            Revenue’’ and ‘‘Government
                                                Commission to: (1) Change the                            deadlines for Form 10–Q report and                           Appropriations.’’ Id. at 7. The Postal
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                                                deadlines for certain periodic reports;                  Form 10–K report filings, respectively.                      Service proposes one line item for
                                                (2) modify the format of the Monthly                        Proposed § 3050.25(e) is revised to                       ‘‘Operating Revenue,’’ one for ‘‘Other
                                                Summary Financial Report, and (3)                        extend the deadline for submitting                           Revenue,’’ and a third line for ‘‘Total
                                                eliminate or modify any existing                         quarterly Billing Determinants reports to                    Revenue.’’ Id. The Postal Service states
                                                reporting requirements that are                          60 days after the close of Quarters 1, 2,                    that this modification is consistent with
                                                unnecessary. Pursuant to its authority                                                                                the reporting requirements and
                                                under 39 U.S.C. 3652(e)(1), the                               11 39    CFR 3050.40(a)(1).                             definitions for Form 10–Q and Form 10–
                                                Commission makes the following                                12 Id.   3050.40(a)(2).                                 K reporting. Id. The Postal Service states


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                                                33882                   Federal Register / Vol. 83, No. 138 / Wednesday, July 18, 2018 / Proposed Rules

                                                that while ‘‘Government                                   ‘‘Total Revenue’’ in Table 1. The                     find that the practice of reporting as a
                                                Appropriations’’ will no longer be its                    existing input for ‘‘Operating Revenue’’              single segment is inaccurate or in need
                                                own line item on the Monthly Summary                      will remain, but the component inputs                 of substantial improvement.
                                                Financial Report, it will still be a                      ‘‘Mail and Services Revenue’’ and                     Accordingly, the Commission does not
                                                component of ‘‘Operating Revenue,’’                       ‘‘Government Appropriations’’ are                     adopt the UPS proposal to require
                                                consistent with how it is reported for                    removed. A new heading, ‘‘Revenue,’’                  segment-level reporting for competitive
                                                U.S. Generally Accepted Accounting                        holds the inputs for ‘‘Operating                      products.
                                                Principles purposes. Id.                                  Revenue,’’ a new input for ‘‘Other                       The Commission has considered all
                                                   The Postal Service also proposes to                    Revenue,’’ and their combined sum in                  comments and reply comments and has
                                                modify the format of Table 2, Mail                        the new ‘‘Total Revenue’’ input.
                                                Volume and Mail Revenue. Id. at 7–8. It                                                                         evaluated the necessity of modifications
                                                                                                             2. Section 3050.28(b)(1), Table 2—                 to the financial reporting requirements.
                                                seeks to replace the ‘‘Total All Mail’’                   Mail Volume and Mail Revenue.
                                                input with ‘‘Total Operating Revenue,’’                                                                         The Commission proposes the following
                                                                                                             Proposed § 3050.28(b)(1) changes the               changes.
                                                which would match the ‘‘Operating                         current input of ‘‘Standard Mail’’ to
                                                Revenue’’ input from Table 1. Id. at 8.                   ‘‘USPS Marketing Mail’’ in Table 2. This                 1. Section 3050.21 Content of the
                                                Finally, the Postal Service seeks to                      change is consistent with the change to               Postal Service’s section 3652 report.
                                                change the input for ‘‘Standard Mail’’ to                 the name of the class, approved in Order                 The Commission has identified
                                                ‘‘USPS Marketing Mail,’’ accurately                       No. 3670.15                                           several areas where, in the course of
                                                reflecting the new name of the mail                          The Commission considers the Postal                preparing the Annual Compliance
                                                class. Id.                                                Service’s proposal to rename ‘‘Total All              Determination (ACD), more detailed
                                                   UPS requests that the Commission                       Mail’’ with ‘‘Total Operating Revenue’’               annual financial reporting would better
                                                consider parallel SEC reporting                           to be potentially confusing. The                      enable the Commission to assess PAEA
                                                definitions for publicly traded delivery                  components within the input are                       compliance. For the required
                                                companies. UPS Comments at 6. UPS                         ‘‘Volume’’ and ‘‘Revenue.’’ To avoid                  information, the Commission has, to
                                                also suggests requiring the Postal                        having an input for the ‘‘Volume’’ of                 date, been able to request the
                                                Service to reproduce past monthly                         ‘‘Total Operating Revenue,’’ the
                                                reports using the proposed new format,                                                                          information from the Postal Service
                                                                                                          Commission proposes to remove the                     during the compressed timeline of the
                                                or require the Postal Service to produce                  ‘‘Total All Mail’’ input and its
                                                two reports—one using the new format                                                                            proceeding, which results in the
                                                                                                          components. Instead, the Commission                   submission of the necessary information
                                                and one using the old format—for the                      proposes to add distinct inputs for
                                                first 12 months after adoption of the                                                                           but creates a burden on the Commission
                                                                                                          ‘‘Total Volume’’ and ‘‘Total Operating                and the Postal Service to identify where
                                                new format. Id.                                           Revenue.’’ The ‘‘Total Operating
                                                   The Postal Service’s proposal to                                                                             information gaps exist and produce the
                                                                                                          Revenue’’ input will match the                        information required to fill them in a
                                                modify the format of the Monthly
                                                                                                          ‘‘Operating Revenue’’ input from Table                compressed timeframe. In order to
                                                Summary Financial Report is consistent
                                                                                                          1.                                                    streamline the ACD process and
                                                with the definition of ‘‘operating
                                                revenue’’ for purposes of Form 10–K                       D. Modifications Deemed Necessitated                  eliminate the administrative effort of
                                                reporting.13 The Commission does not                      by the Public Interest                                both the Postal Service and Commission
                                                identify any of the changes as                                                                                  during Annual Compliance Review
                                                                                                             Though the Postal Service requests                 dockets, the Commission proposes to
                                                diminishing the amount of adequacy of                     that the Commission eliminate or
                                                the information provided. While line                                                                            add certain information to the required
                                                                                                          modify any unnecessary reporting                      content of the Postal Service’s section
                                                inputs for ‘‘Mail and Service Revenue’’                   requirements, it does not offer any
                                                and ‘‘Government Appropriations’’ will                                                                          3652 report.
                                                                                                          specific suggestions. Petition at 9–10.
                                                collapse into the new ‘‘Operating                            UPS urges the Commission to require                   Section 3050.21(f)(6). In the FY 2016
                                                Revenue’’ input, the information                          segment-level reporting for competitive               ACD, the Commission directed the
                                                specific to those categories will remain                  products. UPS Comments at 7. Because                  Postal Service to provide information
                                                available. For example, the amount                        the PAEA requires a level of structural               demonstrating that noncompensatory
                                                reported for ‘‘Government                                 separation of market dominant and                     bilateral agreements improve the net
                                                Appropriations’’ in Table 1 is located in                 competitive products for accounting                   financial position of the Postal Service
                                                the monthly filed Postal Service                          purposes, UPS states the Commission                   over Universal Postal Union (UPU)
                                                ‘‘National Trial Balance’’ in account                     should require separate segment-level                 default terminal dues rates.16 The
                                                number 41431.000 ‘‘Free and Reduced                       reporting for competitive products. Id.               Commission finds such information
                                                Rate Mail.’’ 14 Given that the proposal                   at 8, 10.                                             necessary to determine whether market
                                                does not appear to disrupt the ability of                    In prescribing the content and form of             dominant negotiated service agreements
                                                the Commission or the public to access                    annual reports, the Commission must                   (NSAs) are compliant with 39 U.S.C.
                                                timely and adequate information, the                      consider the adequacy of the                          3622(c)(10)(A). Accordingly, the
                                                Commission proposes the following rule                    information to assess the lawfulness of               Commission proposes to add
                                                modifications.                                            rates charged. 39 U.S.C. 3652(e)(1)(A).               § 3050.21(f)(6). The proposed section
                                                   1. Section 3050.28(b)(1), Table 1—                                                                           requires the Postal Service to file with
                                                                                                          The Commission finds that the current
                                                USPS Monthly Financial Statement.                                                                               its Annual Compliance Report,
                                                                                                          approach of reporting as a single
                                                   Proposed § 3050.28(b)(1) changes the                                                                         documentation demonstrating that
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                                                                                                          segment is adequate for the purposes of
                                                input ‘‘Total Operating Revenue’’ to                                                                            noncompensatory market dominant
                                                                                                          determining compliance. Furthermore,
                                                                                                          in consideration of 39 U.S.C.                         NSAs improve the Postal Service’s net
                                                   13 United States Postal Service, 2017 Report on
                                                                                                          3652(e)(2)(A), the Commission does not                financial position or enhance the
                                                Form 10–K, November 14, 2017, at 19.
                                                   14 See, e.g., United States Postal Service, National
                                                                                                                                                                performance of mail preparation,
                                                Trial Balance and Statement of Revenue and                  15 Docket No. R2017–1, Order on Price
                                                                                                                                                                  16 Docket No. ACR2016, Annual Compliance
                                                Expenses, March 2018, May 10, 2018, Excel file            Adjustments for Special Services Products and
                                                ‘‘National Trial Balance—Redacted March 2018 (FY          Related Mail Classification Changes, December 15,     Determination, March 28, 2017, at 69 (FY 2016
                                                2018).xls,’’ row 907.                                     2016, at 18 (Order No. 3670).                         ACD).



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                                                                       Federal Register / Vol. 83, No. 138 / Wednesday, July 18, 2018 / Proposed Rules                                                  33883

                                                processing, transportation, or other                     FY17–NP31 provided the Commission                       the need for future information requests
                                                functions.                                               with more complete and accurate                         for workhour data.
                                                   Section 3050.21(j). In Docket No.                     financial information regarding certain                    Section 3050.21(m). In recent ACD
                                                ACR2017, Chairman’s Information                          products.23 The Commission finds that                   reports, the Commission has continually
                                                Request No. 7 requested that the Postal                  having such information included as                     expressed concerns about the Inbound
                                                Service provide a distribution of market                 part of the Postal Service’s annual filing,             Letter Post product. For example, in the
                                                dominant and competitive fees found in                   rather than in response to an                           FY 2017 ACD report, the Commission
                                                the RPW report.17 The Postal Service                     information request, will better assist                 ‘‘reiterate[d] its concern that the UPU
                                                responded to CHIR No. 7, providing the                   the Commission in its task of evaluating                pricing regime for the Inbound Letter
                                                mail fee distributions for both market                   compliance with title 39. Including the                 Post product continues to result in
                                                dominant 18 and competitive mail.19                      information would reduce the burden                     noncompensatory terminal dues.’’ 26
                                                The Commission used this information                     on the Commission and Postal Service                    After a brief period of improvement, the
                                                to prepare the FY 2017 ACD and                           of identifying and providing the                        contribution for the Inbound Letter Post
                                                considers the information necessary for                  necessary information during the                        product has decreased from negative
                                                future determinations of compliance. To                  compressed timeline of the annual                       $33 million in FY 2011 to negative $170
                                                this end, the Commission proposes                        review. The Commission accordingly                      million in FY 2017.27 In fact, the trend
                                                revising § 3050.21(j). As currently                      proposes to add § 3050.21(k). The new                   of negative contribution existed well
                                                constructed, the section requires the                    section requires that the Postal Service                before the PAEA. The Commission’s
                                                Postal Service to provide any                            provide any third-party service                         precursor, the Postal Rate Commission,
                                                information it believes will help the                    performance results where a financial                   also identified a trend of net loss in
                                                Commission evaluate compliance with                      penalty or bonus is applied, and to                     contribution for Inbound Letter Post in
                                                title 39. The Commission proposes to                     provide the amount of any forfeited                     its annual reports to Congress on
                                                move that requirement to § 3050.21(n),                   revenue. This requirement will apply to                 international mail for FY 1998 to FY
                                                placing it at the end of the list of annual              all market dominant and competitive                     2006.28 The Postal Service has provided
                                                reporting requirements. The                              products, including NSAs. The                           a myriad of explanations for the
                                                Commission’s proposal replaces the                       information will provide more accurate                  increasingly poor financial performance
                                                current § 3050.21(j) with a requirement                  revenue analysis for the products                       of the Inbound Letter Post product,
                                                that the Postal Service provide a                        subject to third-party service                          including increasing costs,29 increasing
                                                distribution breakdown of mail fees for                  performance measurements.                               volume,30 increasing weight,31 and
                                                market dominant and competitive                             Section 3050.21(l). The Commission                   failing to meet UPU quality-of-service
                                                products. The purpose of the proposed                    further proposes to reduce the necessity                targets.32
                                                change is to provide the Commission                      of information requests by adding a                        In recent ACD reports, the
                                                each year with the same information                      requirement that the Postal Service                     Commission has conducted trend
                                                that the Postal Service provided in                      provide all total workhour data and data                analysis for products for which the
                                                response to Docket No. ACR2017, CHIR                     sources, showing workhour                               Commission has identified ongoing
                                                No. 7, question 3.                                       measurements by Labor Distribution                      issues. For example, for each fiscal year
                                                   Section 3050.21(k). In Docket No.                     Code. In Docket No. ACR2017,                            since the passage of the PAEA, the
                                                ACR2017, Chairman’s Information                          Chairman’s Information Request No. 2                    Commission has found that the
                                                Request No. 1 requested data related to                  requested that the Postal Service                       Periodicals class failed to generate
                                                several international mail products.20                   provide this data to supplement total
                                                The questions relating to these products                 workhour information listed in the
                                                                                                                                                                   26 Docket No. ACR2017, Annual Compliance

                                                included requests for information on                                                                             Determination, March 29, 2018, at 68 (FY 2017
                                                                                                         annual report on Form 10–K.24 The                       ACD). See FY 2016 ACD at 66; Docket No.
                                                quarterly and annual data on third-party                 Postal Service provided the workhour                    ACR2015, Annual Compliance Determination,
                                                service performance measurements.21                      data and data sources in an Excel file.25               March 28, 2016, at 70 (FY 2015 ACD); Docket No.
                                                Also requested was the amount of                                                                                 ACR2014, Annual Compliance Determination,
                                                                                                         The Commission uses this information                    March 27, 2015, at 53 (FY 2014 ACD); Docket No.
                                                forfeited revenue for failing to meet the                in its ACD and seeks this information in                ACR2013, Annual Compliance Determination,
                                                applicable service performance                           future years in substantially the same                  March 27, 2014, at 59 (FY 2013 ACD); Docket No.
                                                requirements. Id. questions 4, 10, and                   format. Accordingly, the Commission                     ACR2012, Annual Compliance Determination,
                                                16.a. The Postal Service provided all of                                                                         March 28, 2013, at 143 (FY 2012 ACD); Docket No.
                                                                                                         proposes to add § 3050.21(l). The                       ACR2011, Annual Compliance Determination,
                                                the requested information.22 The Postal                  proposed requirement directs the Postal                 March 28, 2012, at 143–144 (FY 2011 ACD); Docket
                                                Service’s Library Reference USPS–                        Service to provide all total workhour                   No. ACR2010, Annual Compliance Determination,
                                                                                                         data and data sources showing                           March 29, 2011, at 130–131 (FY 2010 ACD); Docket
                                                  17 Docket No. ACR2017, Chairman’s Information                                                                  No. ACR2009, Annual Compliance Determination,
                                                Request No. 7 and Notice of Filing Under Seal,
                                                                                                         workhour measurements by Labor                          March 29, 2010, at 108–109 (FY 2009 ACD); Docket
                                                January 23, 2018, question 3 (CHIR No. 7).               Distribution Code. The Commission                       No. ACR2008, Annual Compliance Determination,
                                                  18 Docket No. ACR2017, Responses of the United         finds that this requirement will reduce                 March 30, 2009, at 81 (FY 2008 ACD); Docket No.
                                                States Postal Service to Questions 1–3 of                                                                        ACR2007, Annual Compliance Determination,
                                                Chairman’s Information Request No. 7, January 30,           23 In its Docket No. ACR2017, Responses to CHIR      March 27, 2008, at 115, 118 (FY 2007 ACD).
                                                                                                                                                                   27 FY 2017 ACD at 65; FY 2011 ACD at 144.
                                                2018, question 3, Excel file ‘‘Resp.Q.3.Attach A_MD      No. 1, question 15, the Postal Service indicated that
                                                Fee Distrbtn.xlsx.’’                                     service performance measurements for Inbound
                                                                                                                                                                   28 FY 2008 ACD at 82; FY 2007 ACD at 116.
                                                  19 Docket No. ACR2017, Library Reference USP–
                                                                                                         Parcel Post are only available for the periods          Pursuant to section 3663 of the Postal
                                                FY17–NP36, January 30, 2018.                             January through June and July through August. The       Reorganization Act, the Commission issued eight
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                                                  20 Docket No. ACR2017, Chairman’s Information          Postal Service provided this data in Library            annual reports, apart from IM99–1, to Congress
                                                Request No. 1, January 5, 2018 (CHIR No. 1).             Reference USPS–FY17–NP31.                               covering Fiscal Years 1998 through 2005. See
                                                  21 See Docket No. ACR2017, CHIR No. 1,                    24 Docket No. ACR2017, Chairman’s Information        Docket Nos. IM99–1, IM2000–1, IM2001–1,
                                                questions 2, 3, 4, 7, 8, 10, 15, and 16.                 Request No. 2, January 10, 2018, question 3 (CHIR       IM2002–2, IM2003–1, IM2004–1, IM2005–1, and
                                                  22 Docket No. ACR2017, Responses of the United         No. 2).                                                 IM2006–1.
                                                                                                                                                                   29 FY 2017 ACD at 66; FY 2015 ACD at 69; FY
                                                States Postal Service to Questions 1–16 of                  25 Docket No. ACR2017, Responses of the United

                                                Chairman’s Information Request No. 1, January 12,        States Postal Service to Questions 1–19 of              2012 ACD at 145.
                                                                                                                                                                   30 FY 2017 ACD at 66.
                                                2018 (Docket No. ACR2017, Responses to CHIR No.          Chairman’s Information Request No. 2, January 17,
                                                                                                                                                                   31 FY 2013 ACD at 60; FY 2012 ACD at 145.
                                                1); Library Reference USPS–FY17–NP31, January            2018, question 3, Excel file
                                                12, 2018.                                                ‘‘ChIR.2.Q.3.LDC.Workhours—FY17.xlsx.’’                   32 FY 2009 ACD at 109; FY 2008 ACD at 82.




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                                                33884                   Federal Register / Vol. 83, No. 138 / Wednesday, July 18, 2018 / Proposed Rules

                                                revenue sufficient to cover attributable                 plans to use the aggregated Inbound                     proposed in this rulemaking. Comments
                                                costs.33 In the FY 2017 ACD report, the                  Letter Post revenue, volume, attributable               are due no later than 30 days after
                                                Commission analyzed the volume,                          cost, and contribution data that would                  publication of this Notice in the Federal
                                                revenue, attributable cost, and                          be submitted under the proposed rule to                 Register.
                                                contribution for the Periodicals class for               analyze trends that may result in lower
                                                                                                                                                                 VI. Conclusion
                                                FY 2007 to FY 2017. FY 2017 ACD at                       contribution from certain UPU country
                                                45. The Commission also analyzed the                     groups. Such analysis could help the                      It is ordered:
                                                unit revenue, unit attributable cost, and                Commission more accurately identify                       1. The Commission proposes to
                                                unit contribution for Periodicals for the                issues within the Inbound Letter Post                   amend existing periodic reporting rules
                                                same time period. Id. at 46. The                         product and identify appropriate                        located at 39 CFR part 3050.
                                                Commission also provided analysis of                     remedial actions.                                         2. Lauren A. D’Agostino will continue
                                                the volume, revenue, attributable cost,                     Accordingly, the Commission                          to serve as an officer of the Commission
                                                and contribution for the Outside County                  proposes to add § 3050.21(m). The new                   (Public Representative) to represent the
                                                Periodicals and Within County                            section requires that the Postal Service                interests of the general public in this
                                                Periodicals products specifically.34                     provide Inbound Letter Post revenue,                    rulemaking proceeding.
                                                   In analyzing the continuing issues                    volume, attributable cost, and                            3. Interested persons may submit
                                                with the Periodical class, the                           contribution data aggregated by UPU                     comments no later than 30 days from
                                                Commission also evaluated how                            country group and by shape for the                      the date of publication of this Notice in
                                                increasing unit cost and decreasing unit                 preceding five fiscal years when it files               the Federal Register.
                                                revenue for Periodicals resulted in a                    its Annual Compliance Report. The                         4. The Secretary shall arrange for
                                                decrease in contribution. FY 2017 ACD                    Commission finds that this requirement                  publication of this notice in the Federal
                                                at 46. The Commission discussed factors                  will reduce the need for future                         Register.
                                                that related to unit revenue and                         information requests for aggregated                       By the Commission.
                                                attributable costs for Outside County                    Inbound Letter Post data.
                                                                                                                                                                 Stacy L. Ruble,
                                                Periodicals, such as the change of mail                     Section 3050.21(n). The Commission
                                                mix and the unit costs for various                       proposes to move the requirement that                   Secretary. Vice Chairman Hammond
                                                                                                                                                                 dissenting.
                                                presort levels within the product (e.g.,                 the Postal Service provide any other
                                                Carrier Route, 5-Digit, and 3-Digit). Id. at             information that it anticipates will help               List of Subjects in 39 CFR Part 3050
                                                49.                                                      the Commission evaluate compliance.
                                                                                                                                                                   Administrative practice and
                                                   As the result of the ongoing concerns                 The Commission finds it appropriate to
                                                                                                                                                                 procedure, Reporting and recordkeeping
                                                expressed by the Commission (and                         place this general requirement at the
                                                                                                                                                                 requirements.
                                                echoed by participants) regarding the                    end of the list of items included in the
                                                financial performance of the Inbound                     Annual Compliance Report. The                             For the reasons discussed in the
                                                Letter Post product,35 the Commission                    substance of former § 3050.21(j) will be                preamble, the Commission proposes to
                                                                                                         unchanged. The requirement will only                    amend Chapter III of title 39 of the Code
                                                   33 FY 2017 ACD at 45–46; FY 2016 ACD at 42–           be renumbered as § 3050.21(n).36                        of Federal Regulations as follows:
                                                43; FY 2015 ACD at 42–43; FY 2014 ACD at 33–                2. Section 3050.60 Miscellaneous
                                                34; FY 2013 ACD at 42–43; FY 2012 ACD at 25; FY
                                                                                                         Reports and Documents.                                  PART 3050—PERIODIC REPORTING
                                                2011 ACD at 16; FY 2010 ACD at 90–91; FY 2009
                                                ACD at 74; FY 2008 ACD at 54, 56; FY 2007 ACD               The Commission, having considered
                                                                                                                                                                 ■ 1. The authority citation for part 3050
                                                at 68.                                                   whether any current reporting
                                                                                                                                                                 continues to read as follows:
                                                   34 See Docket No. ACR2017, Library Reference          requirements are unnecessary, proposes
                                                PRC–LR–ACR2017–5, March 29, 2018, Excel file             to modify § 3050.60(c). The Postal                        Authority: 39 U.S.C. 503, 3651, 3652,
                                                ‘‘FY 2017 Periodicals Cost Coverage.xlsx,’’ tab ‘‘Cost                                                           3653.s.
                                                Coverage.’’
                                                                                                         Service provides a master list of
                                                   35 See Docket No. IM2016–1, Congressional Letter      publications and handbooks whenever                     ■ 2. Amend § 3050.21 by:
                                                to Secretary of State Rex Tillerson and Postmaster       changed, in accordance with                             ■ a. Revising paragraph (a),
                                                General Megan Brennan, November 8, 2017; Docket          § 3050.60(b). The Commission                            ■ b. Adding paragraph (f)(6),
                                                No. ACR2017, Comments of James Smaldone,                 welcomes those publications and
                                                Founder & CEO, Mighty Mug, Inc., January 25,
                                                                                                                                                                 ■ c. Revising paragraph (j), and
                                                2018, at 1–2; Docket No. ACR2017, Comments of            handbooks in electronic form, as it                     ■ d. Adding paragraphs (k), (l), (m), and
                                                National Association of Manufacturers on Order No.       would reduce the administrative effort                  (n).
                                                4377, January 24, 2018, at 2; Docket No. ACR2017,        of both the Postal Service and the                        The additions and revisions read as
                                                Comments of United Parcel Service, Inc. in               Commission without degrading the
                                                Response to Notice of Preliminary Determination to
                                                                                                                                                                 follows:
                                                Unseal the Material Filed in Response to                 utility of the publication or handbook.
                                                Chairman’s Information Request No. 1, Question 1,        Accordingly, the Commission proposes                    § 3050.21 Content of the Postal Service’s
                                                January 24, 2018, at 2–3; Docket No. ACR2017,            to revise § 3050.60(c) to require only an               section 3652 report.
                                                Comments of the Honorable Kenny Marchant on              electronic copy of all changed                             (a) No later than 90 days after the
                                                Determination to Unseal the Material Filed in
                                                Response to Chairman’s Information Request No. 1,        publications and handbooks.                             close of each fiscal year, the Postal
                                                Question 1, January 25, 2018, at 1–2; Docket No.                                                                 Service shall submit a report to the
                                                ACR2017, Comments of US Chamber of Commerce,
                                                                                                         V. Solicitation of Comments                             Commission analyzing its costs, volume,
                                                January 25, 2018, at 1–2; Docket No. ACR2017,              The Commission invites interested                     revenue, rate, and service information in
                                                Comments of SBE Council Related to Inbound
                                                Letter Post, February 20, 2018, at 1–2; Docket No.
                                                                                                         persons to comment on the changes                       sufficient detail to demonstrate that all
                                                ACR2017, Comments of United Parcel Service, Inc.                                                                 products during such year comply with
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                                                in Response to Notice of Preliminary Determination       Representatives Kenny Marchant and Ralph                all applicable provisions of title 39 of
                                                to Unseal the Postal Service’s Response to               Abraham, July 3, 2018, at 1; Docket No. IM2018–         the United States Code. The report shall
                                                Chairman’s Information Request No. 15, February          1, Comment Received from U.S. Senator Bill
                                                23, 2018, at 3–4; Docket No. ACR2017, Reply              Cassidy, M.D., July 3, 2018, at 1.                      provide the items in paragraphs (b)
                                                Comments of United Parcel Service, Inc. on United           36 Current § 3050.21(a) requires the annual report   through (n) of this section.
                                                States Postal Service Motion for Reconsideration of      to provide the items listed in paragraphs (b) through   *      *     *     *    *
                                                Order No. 4551, April 13, 2018, at 4; Docket No.         (j) of § 3050.21. Proposed paragraphs (k) through (n)
                                                ACR2017, Comments of U.S. Chamber of                     necessitate that the Commission revise § 3050.21(a)
                                                                                                                                                                    (f) * * *
                                                Commerce, April 13, 2018, at 1; Docket No.               to require the report to include the items listed in       (6) Provide financial or other
                                                IM2018–1, Comments Received from U.S.                    paragraphs (b) through (n).                             supporting documentation that


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                                                                       Federal Register / Vol. 83, No. 138 / Wednesday, July 18, 2018 / Proposed Rules                                                   33885

                                                demonstrates that noncompensatory                        attributable cost, and contribution data              and 60 days after Quarter 4 but no later
                                                market dominant negotiated service                       by Universal Postal Union country                     than the filing of reports filed pursuant
                                                agreements improve the net financial                     group and by shape for the preceding                  to section 3050.40(a) or 3050.40(b); and
                                                position of the Postal Service over                      five fiscal years; and                                  (e) Billing determinants within 60
                                                default rates or enhance the                                (n) Provide any other information that             days of the close of Quarters 1, 2, and
                                                performance of mail preparation,                         the Postal Service believes will help the
                                                                                                                                                               3 of the fiscal year and 90 days after
                                                processing, transportation, or other                     Commission evaluate the Postal
                                                                                                                                                               Quarter 4.
                                                functions.                                               Service’s compliance with the
                                                *      *    *     *     *                                applicable provisions of title 39 of the              ■ 4. Amend § 3050.28 by revising
                                                  (j) For market dominant and                            United States Code.                                   paragraph (b), tables 1 and 2 in
                                                competitive products, provide a                          ■ 3. Amend § 3050.25 by revising                      paragraph (b)(1), and paragraph (c) to
                                                distribution breakdown of mail fees,                     paragraphs (c), (d), and (e) to read as               read as follows:
                                                including all underlying calculations                    follows:
                                                                                                                                                               § 3050.28    Monthly and pay period reports.
                                                and source workpapers;
                                                  (k) For market dominant and                            § 3050.25    Volume and revenue data.                 *      *    *     *     *
                                                competitive products, including                          *     *     *     *    *                                 (b) Monthly Summary Financial
                                                negotiated service agreements, provide                     (c) Revenue, pieces, and weight by
                                                                                                                                                               Report on the 24th day of the following
                                                any third-party service performance                      rate category and special service by
                                                                                                                                                               month, except that the reports for the
                                                results upon which any financial                         quarter, within 40 days of the close of
                                                                                                                                                               last months of Quarters 1, 2, and 3 of the
                                                penalty or bonus is determined, and the                  Quarters 1, 2, and 3 of the fiscal year
                                                                                                         and 60 days after Quarter 4, but no later             fiscal year shall be provided at the time
                                                amount of any forfeited revenue;                                                                               that the Form 10–Q report is provided
                                                  (l) Provide all total workhour data and                than the filing of reports filed pursuant
                                                                                                         to section 3050.40(a) or 3050.40(b);                  and the report for the last month of
                                                data sources showing workhour
                                                measurements by Labor Distribution                         (d) Quarterly Statistics Report,                    Quarter 4 of the fiscal year shall be
                                                Code;                                                    including estimates by shape, weight,                 provided at the time that the Form 10–
                                                  (m) For the Inbound Letter Post                        and indicia, within 40 days of the close              K report is provided;
                                                product, provide revenue, volume,                        of Quarters 1, 2, and 3 of the fiscal year               (1) * * *

                                                                                TABLE 1—USPS MONTHLY FINANCIAL STATEMENT—MONTH, FISCAL YEAR
                                                                                                                              [$ millions]

                                                                                                                            Current period                                         Year-to-date

                                                                                                                                              %         %                                          %        %
                                                                                                         Actual      Plan       SPLY         Plan     SPLY      Actual      Plan      SPLY        Plan    SPLY
                                                                                                                                             Var       Var                                        Var      Var

                                                Revenue:
                                                     Operating Revenue
                                                     Other Revenue
                                                Operating Expenses
                                                     Personnel Compensation and Benefits
                                                     Transportation
                                                     Supplies and Services
                                                     Other Services
                                                Total Operating Expenses
                                                New Operating Income
                                                Interest Income
                                                Interest Expense
                                                Total Net Income
                                                Other Operating Statistics
                                                     Mail Volume (Millions)
                                                          Total Market Dominant Volumes
                                                          Total Competitive Product Volumes
                                                Total Mail Volumes
                                                Total Workhours (Millions)
                                                Total Career Employees
                                                Total Non-Career Employees


                                                                                      TABLE 2—MAIL VOLUME AND MAIL REVENUE—MONTH, FISCAL YEAR
                                                                                                                             [Thousands]

                                                                                                                      Current period                                            Year-to-date
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                                                                                                        Actual              SPLY             % SPLY var.           Actual            SPLY          % SPLY var.

                                                Market Dominant Products:
                                                    First Class:
                                                         Volume
                                                         Revenue
                                                    Periodicals:
                                                         Volume



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                                                33886                  Federal Register / Vol. 83, No. 138 / Wednesday, July 18, 2018 / Proposed Rules

                                                                           TABLE 2—MAIL VOLUME AND MAIL REVENUE—MONTH, FISCAL YEAR—Continued
                                                                                                                            [Thousands]

                                                                                                                      Current period                                            Year-to-date

                                                                                                        Actual              SPLY           % SPLY var.           Actual            SPLY        % SPLY var.

                                                         Revenue
                                                USPS Marketing Mail:
                                                         Volume
                                                         Revenue
                                                    Package Services:
                                                         Volume
                                                         Revenue
                                                    All Other Market Dominant Mail:
                                                         Volume
                                                         Revenue
                                                Total Market Dominant Products:
                                                         Volume
                                                         Revenue
                                                Total Competitive Products
                                                         Volume
                                                         Revenue
                                                             Total Operating Revenue:
                                                             Total Volume



                                                *     *      *    *     *                                SUMMARY:    The Environmental Protection              statute. Multimedia submissions (audio,
                                                  (c) National Consolidated Trial                        Agency (EPA) is proposing a                           video, etc.) must be accompanied by a
                                                Balances and the Revenue and Expense                     determination of attainment by the                    written comment. The written comment
                                                Summary on the 24th day of the                           attainment date and a clean data                      is considered the official comment and
                                                following month, except that the reports                 determination (CDD) for the 2006 24-                  should include discussion of all points
                                                for the last month of Quarters 1, 2, and                 hour fine particulate matter (PM2.5)                  you wish to make. The EPA will
                                                3 of the fiscal year shall be provided at                Logan, Utah (UT)-Idaho (ID)                           generally not consider comments or
                                                the time that the Form 10–Q report is                    nonattainment area. The determination                 comment contents located outside of the
                                                provided and the report for the last                     is based upon quality-assured, quality-               primary submission (i.e., on the web,
                                                month of Quarter 4 of the fiscal year                    controlled and certified ambient air                  cloud, or other file sharing system). For
                                                shall be provided at the time that the                   monitoring data showing that the area                 additional submission methods, the full
                                                Form 10–K report is provided;                            has attained the 2006 24-hour PM2.5                   EPA public comment policy,
                                                *     *      *    *     *                                National Ambient Air Quality Standards                information about CBI or multimedia
                                                ■ 5. Amend § 3050.60 by revising                         (NAAQS) based on 2015–2017 data                       submissions, and general guidance on
                                                paragraph (c) to read as follows:                        available in the EPA’s Air Quality                    making effective comments, please visit
                                                                                                         System (AQS) database. Based on the                   https://www.epa.gov/dockets/
                                                § 3050.60 Miscellaneous reports and                      proposed determination that the Logan,                commenting-epa-dockets.
                                                documents.                                               UT-ID nonattainment area is currently
                                                                                                                                                               FOR FURTHER INFORMATION CONTACT:
                                                *     *     *     *     *                                attaining the 24-hour PM2.5 NAAQS, the
                                                                                                                                                               Crystal Ostigaard, Air Program, EPA,
                                                  (c) The items listed in paragraph (b)                  EPA is also proposing to determine that
                                                                                                                                                               Region 8, Mailcode 8P–AR, 1595
                                                of this section in electronic form;                      the obligation for Utah and Idaho to
                                                                                                                                                               Wynkoop Street, Denver, Colorado
                                                *     *     *     *     *                                make submissions to meet certain Clean
                                                                                                                                                               80202–1129, (303) 312–6602,
                                                [FR Doc. 2018–15326 Filed 7–17–18; 8:45 am]              Air Act (CAA or the Act) requirements
                                                                                                                                                               ostigaard.crystal@epa.gov, or Matthew
                                                                                                         related to attainment of the NAAQS for
                                                BILLING CODE 7710–FW–P                                                                                         Jentgen, Air Planning Unit, Office of Air
                                                                                                         this area is not applicable for as long as
                                                                                                                                                               and Waste (OAW–150), EPA, Region 10,
                                                                                                         the area continues to attain the NAAQS.
                                                                                                                                                               1200 Sixth Avenue, Suite 900, Seattle,
                                                                                                         DATES: Comments must be received on                   Washington 98101; (206) 553–0340;
                                                ENVIRONMENTAL PROTECTION
                                                                                                         or before August 17, 2018.                            jentgen.matthew@epa.gov.
                                                AGENCY
                                                                                                         ADDRESSES: Submit your comments,
                                                                                                                                                               SUPPLEMENTARY INFORMATION:
                                                40 CFR Part 52                                           identified by Docket ID No. EPA–R08–
                                                                                                                                                               Throughout this document, wherever
                                                                                                         OAR–2018–0309 and/or Docket ID No.
                                                                                                                                                               ‘‘we’’, ‘‘us’’ or ‘‘our’’ is used, it is
                                                [EPA–R08–OAR–2018–0309 and EPA–R10–                      EPA–R10–OAR–2018–0316 at https://
                                                OAR–2018–0316: FRL–9980–88—Region 8]                                                                           intended to refer to the EPA.
                                                                                                         www.regulations.gov. Follow the online
                                                                                                         instructions for submitting comments.                 I. Background
                                                Determination of Attainment by the                       Once submitted, comments cannot be
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                                                Attainment Date and Clean Data                                                                                 A. Designation and Classification of
                                                                                                         edited or removed from
                                                Determination for the Logan, UT-ID                                                                             PM2.5 Nonattainment Areas
                                                                                                         www.regulations.gov. The EPA may
                                                2006 24-Hour PM2.5 Nonattainment                         publish any comment received to its                     On October 17, 2006 (71 FR 61144),
                                                Area                                                     public docket. Do not submit                          the EPA revised the level of the 24-hour
                                                AGENCY:  Environmental Protection                        electronically any information you                    PM2.5 NAAQS, lowering the primary
                                                Agency (EPA).                                            consider to be Confidential Business                  and secondary standards from the 1997
                                                                                                         Information (CBI) or other information                standard of 65 micrograms per cubic
                                                ACTION: Proposed rule.
                                                                                                         the disclosure of which is restricted by              meter (mg/m3) to 35 mg/m3. The EPA


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Document Created: 2018-11-06 10:25:00
Document Modified: 2018-11-06 10:25:00
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
ActionProposed rule.
DatesComments are due: August 17, 2018.
ContactDavid A. Trissell, General Counsel, at 202-789-6820.
FR Citation83 FR 33879 
CFR AssociatedAdministrative Practice and Procedure and Reporting and Recordkeeping Requirements

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