83_FR_844 83 FR 839 - FY 2017 Annual Compliance Report

83 FR 839 - FY 2017 Annual Compliance Report

POSTAL REGULATORY COMMISSION

Federal Register Volume 83, Issue 5 (January 8, 2018)

Page Range839-841
FR Document2018-00082

The Postal Service has filed an Annual Compliance Report on the costs, revenues, rates, and quality of service associated with its products in fiscal year 2017. Within 90 days, the Commission must evaluate that information and issue its determination as to whether rates were in compliance, and whether service standards in effect were met. To assist in this, the Commission seeks public comments on the Postal Service's Annual Compliance Report.

Federal Register, Volume 83 Issue 5 (Monday, January 8, 2018)
[Federal Register Volume 83, Number 5 (Monday, January 8, 2018)]
[Notices]
[Pages 839-841]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-00082]


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POSTAL REGULATORY COMMISSION

[Docket No. ACR2017; Order No. 4323]


FY 2017 Annual Compliance Report

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Postal Service has filed an Annual Compliance Report on 
the costs, revenues, rates, and quality of service associated with its 
products in fiscal year 2017. Within 90 days, the Commission must 
evaluate that information and issue its determination as to whether 
rates were in compliance, and whether service standards in effect were 
met. To assist in this, the Commission seeks public comments on the 
Postal Service's Annual Compliance Report.

DATES: Comments are due: February 1, 2018. Reply Comments are due: 
February 12, 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. Overview of the Postal Service's FY 2017 ACR
III. Procedural Steps
IV. Ordering Paragraphs

I. Introduction

    On December 29, 2017, the United States Postal Service (Postal 
Service) filed with the Commission its Annual Compliance Report (ACR) 
for fiscal year (FY) 2017, pursuant to 39 U.S.C. 3652.\1\ Section 3652 
requires submission of data and information on the costs, revenues, 
rates, and quality of service associated with postal products within 90 
days of the closing of each fiscal year. In conformance with other 
statutory provisions and Commission rules, the ACR includes the Postal 
Service's FY 2017 Comprehensive Statement, its FY 2017 annual report to 
the Secretary of the Treasury on the Competitive Products Fund, and 
certain related Competitive Products Fund material. See respectively, 
39 U.S.C. 3652(g), 39 U.S.C. 2011(i), and 39 CFR 3060.20-23. In line 
with past practice, some of the material in the FY 2017 ACR appears in 
non-public annexes.
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    \1\ United States Postal Service FY 2017 Annual Compliance 
Report, December 29, 2017 (FY 2017 ACR). Public portions of the 
Postal Service's filing are available on the Commission's website at 
http://www.prc.gov.
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    The filing begins a review process that results in an Annual 
Compliance Determination (ACD) issued by the Commission to determine 
whether Postal Service products offered during FY 2017 were in 
compliance with applicable title 39 requirements.

II. Overview of the Postal Service's FY 2017 ACR

    Contents of the filing. The Postal Service's FY 2017 ACR consists 
of a 77-page narrative; extensive additional material appended as 
separate folders and identified in Attachment One; and an application 
for non-public treatment of certain materials, along with supporting 
rationale, filed as Attachment Two. The filing also includes the 
Comprehensive Statement,\2\ Report to the Secretary of

[[Page 840]]

the Treasury, and information on the Competitive Products Fund filed in 
response to Commission rules. This material has been filed 
electronically with the Commission, and some also has been filed in 
hard copy form.
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    \2\ In years prior to 2013, the Commission reviewed the Postal 
Service's reports prepared pursuant to 39 U.S.C. 2803 and 39 U.S.C. 
2804 (filed as the Comprehensive Statement by the Postal Service) in 
its ACD. However, as it has for the past several years, the 
Commission intends to issue a separate notice soliciting comments on 
the comprehensive statement and provide its related analysis in a 
separate report from the ACD.
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    Scope of the filing. The material appended to the narrative 
consists of: (1) Domestic product costing material filed on an annual 
basis summarized in the Cost and Revenue Analysis (CRA); (2) comparable 
international costing material summarized in the International Cost and 
Revenue Analysis (ICRA); (3) worksharing-related cost studies; and (4) 
billing determinant information for both domestic and international 
mail. FY 2017 ACR at 2-3. Inclusion of these four data sets is 
consistent with the Postal Service's past ACR practices. As with past 
ACRs, the Postal Service has split certain materials into public and 
non-public versions. Id. at 3.
    ``Roadmap'' document. A roadmap to the FY 2017 ACR can be found in 
Library Reference USPS-FY17-9. This document provides brief 
descriptions of the materials submitted, as well as the flow of inputs 
and outputs among them; a discussion of differences in methodology 
relative to Commission methodologies in last year's ACD; and a list of 
special studies and a discussion of obsolescence, as required by 
Commission rule 3050.12. Id. at 3.
    Methodology. The Postal Service states that it has adhered to the 
methodologies historically used by the Commission subject to changes 
identified and discussed in Library Reference USPS-FY17-9 and in 
prefaces accompanying the appended folders. Id. at 4. The Postal 
Service observes that one noteworthy methodological change regarding 
product costs was discussed by the Commission in Order No. 3506.\3\ 
Going forward, the Postal Service's calculation of attributable costs 
will be changing to include a product's inframarginal costs developed 
as part of the estimation of a product's incremental costs. FY 2017 ACR 
at 4. As a consequence, the costs labeled as attributable costs in each 
row of the FY 2017 CRA are not directly comparable to costs reported 
with the same label in the CRAs filed prior to FY 2016. Id.
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    \3\ Id.; see Docket No. RM2016-2, Order Concerning United Parcel 
Service, Inc.'s Proposed Changes to Postal Service Costing 
Methodologies (UPS Proposals One, Two, and Three), September 9, 2016 
(Order No. 3506).
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    Market dominant product-by-product costs, revenues, and volumes. 
Comprehensive cost, revenue, and volume data for all market dominant 
products of general applicability are shown directly in the FY 2017 CRA 
or ICRA. Id. at 7.
    The FY 2017 ACR includes a discussion by class of each market 
dominant product, including costs, revenues, and volumes, workshare 
discounts, and passthroughs responsive to 39 U.S.C. 3652(b), and FY 
2017 incentive programs. Id. at 7-48.
    In response to the Commission's FY 2010 ACD directives,\4\ the 
Postal Service states that it is providing information regarding: (1) 
All operational changes designed to reduce flats costs and the 
estimated financial effects of such changes (id. at 25-31); (2) all 
costing methodology improvements made in FY 2017 and the estimated 
financial effects of such changes (id. at 31-35); and (3) a statement 
summarizing the historical and current year subsidy of the flats 
product (id. at 35). In addition, the Postal Service states that in the 
next general market dominant price change, it plans to increase the 
price of Standard Mail Flats by at least consumer price index times 
1.05. Id. at 24. In the FY 2016 ACD, the Commission directed the Postal 
Service to submit an updated report analyzing how the removal of Flats 
Sequencing System pricing in Docket No. R2017-1 impacted the cost, 
contribution, and revenue of periodicals in FY 2017, and whether the 
removal improved the efficiency of Periodicals pricing in FY 2017.\5\ 
The Postal Service provides its updated report in Library Reference 
USPS-FY17-44. FY 2017 ACR at 39.
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    \4\ Docket No. ACR2010, Annual Compliance Determination, March 
29, 2011, at 106-107 (FY 2010 ACD).
    \5\ Docket No. ACR2016, Annual Compliance Determination, March 
28, 2017, at 22 (FY 2016 ACD).
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    Market dominant negotiated service agreements. The FY 2017 ACR 
presents information on the PHI Acquisitions, Inc. negotiated service 
agreement (NSA), the only market dominant NSA in effect in FY 2017. Id. 
at 46-47.
    Service performance. The Postal Service notes that the Commission 
issued rules on periodic reporting of service performance measurement 
and customer satisfaction in FY 2010. Responsive information appears in 
Library Reference USPS-FY17-29. Id. at 49.
    Customer satisfaction. The FY 2017 ACR discusses the Postal 
Service's approach for measuring customer experience and satisfaction; 
describes the methodology; presents a table with survey results; 
compares the results from FY 2016 to FY 2017; and provides information 
regarding customer access to postal services. Id. at 54-65.
    Competitive products. The FY 2017 ACR provides costs, revenues, and 
volumes for competitive products of general applicability in the FY 
2017 CRA or ICRA. For competitive products not of general 
applicability, data are provided in non-public Library References USPS-
FY17-NP2 and USPS-FY17-NP27. Id. at 66. The FY 2017 ACR also addresses 
the competitive product pricing standards of 39 U.S.C. 3633. Id. at 66-
73. Additionally, the Postal Service responds to the Commission's 
Directive in the FY 2016 ACD requiring it to identify each NSA product 
that had no mailpieces shipped under its contract in future ACRs. FY 
2016 ACD at 83. This information is provided in USPS-FY17-NP27 (for 
domestic NSAs) and USPS-FY17-NP2 (for international NSAs). Id. at 74.
    Market tests; nonpostal services. The Postal Service discusses the 
two competitive market tests conducted during FY 2017 and nonpostal 
services. Id. at 75.

III. Procedural Steps

    Statutory requirements. Section 3653 of title 39 requires the 
Commission to provide interested persons with an opportunity to comment 
on the ACR and to appoint an officer of the Commission (Public 
Representative) to represent the interests of the general public. The 
Commission hereby solicits public comment on the Postal Service's FY 
2017 ACR and on whether any rates or fees in effect during FY 2017 (for 
products individually or collectively) were not in compliance with 
applicable provisions of chapter 36 of title 39 or Commission 
regulations promulgated thereunder. Commenters addressing market 
dominant products are referred in particular to the applicable 
requirements (39 U.S.C. 3622(d) and (e) and 39 U.S.C. 3626); objectives 
(39 U.S.C. 3622(b)); and factors (39 U.S.C. 3622(c)). Commenters 
addressing competitive products are referred to 39 U.S.C. 3633.
    The Commission also invites public comment on the cost coverage 
matters the Postal Service addresses in its filing; service performance 
results; levels of customer satisfaction achieved; and such other 
matters that may be relevant to the Commission's review.
    Access to filing. The Commission has posted the publicly available 
portions of the FY 2017 ACR on its website at http://www.prc.gov.
    Comment deadlines. Comments by interested persons are due on or 
before February 1, 2018. Reply comments are

[[Page 841]]

due on or before February 12, 2018. The Commission, upon completion of 
its review of the FY 2017 ACR, comments, and other data and information 
submitted in this proceeding, will issue its ACD.
    Public Representative. Mallory L. Smith is designated to serve as 
the Public Representative to represent the interests of the general 
public in this proceeding. Neither the Public Representative nor any 
additional persons assigned to assist her shall participate in or 
advise as to any Commission decision in this proceeding other than in 
his or her designated capacity.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. ACR2017 to consider 
matters raised by the United States Postal Service's FY 2017 Annual 
Compliance Report.
    2. Pursuant to 39 U.S.C. 505, the Commission appoints Mallory L. 
Smith as an officer of the Commission (Public Representative) in this 
proceeding to represent the interests of the general public.
    3. Comments on the United States Postal Service's FY 2017 Annual 
Compliance Report to the Commission are due on or before February 1, 
2018.
    4. Reply comments are due on or before February 12, 2018.
    5. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Stacy L. Ruble,
Secretary.
[FR Doc. 2018-00082 Filed 1-5-18; 8:45 am]
 BILLING CODE 7710-FW-P



                                                                               Federal Register / Vol. 83, No. 5 / Monday, January 8, 2018 / Notices                                                         839

                                                   A. The exemption is authorized by                    hearing in connection with these                       FOR FURTHER INFORMATION CONTACT:
                                                law;                                                    actions, was published in the Federal                  David A. Trissell, General Counsel, at
                                                   B. the exemption presents no undue                   Register on March 28, 2017 (82 FR                      202–789–6820.
                                                risk to public health and safety;                       15377). No comments were received                      SUPPLEMENTARY INFORMATION:
                                                   C. the exemption is consistent with                  during the 30-day comment period.
                                                the common defense and security;                          The Commission has determined that                   Table of Contents
                                                   D. special circumstances are present                 these amendments satisfy the criteria for              I. Introduction
                                                in that the application of the rule in this             categorical exclusion in accordance                    II. Overview of the Postal Service’s FY 2017
                                                circumstance is not necessary to serve                  with 10 CFR 51.22. Therefore, pursuant                       ACR
                                                the underlying purpose of the rule;                     to 10 CFR 51.22(b), no environmental                   III. Procedural Steps
                                                   E. the special circumstances outweigh                impact statement or environmental                      IV. Ordering Paragraphs
                                                any decrease in safety that may result                  assessment need be prepared for these                  I. Introduction
                                                from the reduction in standardization                   amendments.
                                                caused by the exemption; and                                                                                      On December 29, 2017, the United
                                                   F. the exemption will not result in a                IV. Conclusion                                         States Postal Service (Postal Service)
                                                significant decrease in the level of safety               Using the reasons set forth in the                   filed with the Commission its Annual
                                                otherwise provided by the design.                       combined safety evaluation, the staff                  Compliance Report (ACR) for fiscal year
                                                   2. Accordingly, the licensee is granted              granted the exemption and issued the                   (FY) 2017, pursuant to 39 U.S.C. 3652.1
                                                an exemption from the certified DCD                     amendment that the licensee requested                  Section 3652 requires submission of
                                                Tier 1 information, as described in the                 on August 30, 2016, and supplemented                   data and information on the costs,
                                                licensee’s request dated August 30,                     by letter dated March 14, 2017. The                    revenues, rates, and quality of service
                                                2016, as supplemented by letter dated                   exemption and amendment were issued                    associated with postal products within
                                                March 14, 2017. This exemption is                       on October 6, 2017, as part of a                       90 days of the closing of each fiscal
                                                related to, and necessary for, the                      combined package to the licensee                       year. In conformance with other
                                                granting of License Amendments No. 89                   (ADAMS Accession No. ML17254A125).                     statutory provisions and Commission
                                                and 88, which is being issued                             Dated at Rockville, Maryland, this 2nd day           rules, the ACR includes the Postal
                                                concurrently with this exemption.                       of January 2, 2018.                                    Service’s FY 2017 Comprehensive
                                                   3. As explained in Section 5 of the                                                                         Statement, its FY 2017 annual report to
                                                                                                          For the Nuclear Regulatory Commission.
                                                NRC staff’s Safety Evaluation that                                                                             the Secretary of the Treasury on the
                                                supports this license amendment                         Jennifer L. Dixon-Herrity,
                                                                                                                                                               Competitive Products Fund, and certain
                                                (ADAMS Accession Number                                 Chief, Licensing Branch 4, Division of New
                                                                                                                                                               related Competitive Products Fund
                                                ML17254A129), this exemption meets                      Reactor Licensing, Office of New Reactors.
                                                                                                                                                               material. See respectively, 39 U.S.C.
                                                the eligibility criteria for categorical                [FR Doc. 2018–00055 Filed 1–5–18; 8:45 am]
                                                                                                                                                               3652(g), 39 U.S.C. 2011(i), and 39 CFR
                                                exclusion set forth in 10 CFR                           BILLING CODE 7590–01–P
                                                                                                                                                               3060.20–23. In line with past practice,
                                                51.22(c)(9). Therefore, pursuant to 10                                                                         some of the material in the FY 2017
                                                CFR 51.22(b), no environmental impact                                                                          ACR appears in non-public annexes.
                                                statement or environmental assessment                   POSTAL REGULATORY COMMISSION                              The filing begins a review process that
                                                needs to be prepared in connection with                 [Docket No. ACR2017; Order No. 4323]                   results in an Annual Compliance
                                                the issuance of the exemption.                                                                                 Determination (ACD) issued by the
                                                   4. This exemption is effective as of the             FY 2017 Annual Compliance Report                       Commission to determine whether
                                                date of its issuance.                                                                                          Postal Service products offered during
                                                                                                        AGENCY:   Postal Regulatory Commission.
                                                III. License Amendment Request                                                                                 FY 2017 were in compliance with
                                                                                                        ACTION:   Notice.                                      applicable title 39 requirements.
                                                   By letter dated August 30, 2016, as
                                                supplemented by letter dated March 14,                  SUMMARY:   The Postal Service has filed                II. Overview of the Postal Service’s FY
                                                2017 (ADAMS Accession Nos.                              an Annual Compliance Report on the                     2017 ACR
                                                ML16243A373 and ML17007A159,                            costs, revenues, rates, and quality of
                                                                                                        service associated with its products in                  Contents of the filing. The Postal
                                                respectively), the licensee requested that                                                                     Service’s FY 2017 ACR consists of a 77-
                                                the NRC amend the COLs for VEGP,                        fiscal year 2017. Within 90 days, the
                                                                                                        Commission must evaluate that                          page narrative; extensive additional
                                                Units 3 and 4, COLs NPF–91 and NPF–                                                                            material appended as separate folders
                                                92. The proposed amendment is                           information and issue its determination
                                                                                                        as to whether rates were in compliance,                and identified in Attachment One; and
                                                described in Section I of this Federal                                                                         an application for non-public treatment
                                                Register notice.                                        and whether service standards in effect
                                                                                                        were met. To assist in this, the                       of certain materials, along with
                                                   The Commission has determined for                                                                           supporting rationale, filed as
                                                these amendments that the application                   Commission seeks public comments on
                                                                                                        the Postal Service’s Annual Compliance                 Attachment Two. The filing also
                                                complies with the standards and                                                                                includes the Comprehensive
                                                requirements of the Atomic Energy Act                   Report.
                                                                                                                                                               Statement,2 Report to the Secretary of
                                                of 1954, as amended (the Act), and the                  DATES: Comments are due: February 1,
                                                Commission’s rules and regulations.                     2018. Reply Comments are due:                             1 United States Postal Service FY 2017 Annual

                                                The Commission has made appropriate                     February 12, 2018.                                     Compliance Report, December 29, 2017 (FY 2017
                                                findings as required by the Act and the                 ADDRESSES: Submit comments                             ACR). Public portions of the Postal Service’s filing
                                                                                                        electronically via the Commission’s                    are available on the Commission’s website at http://
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                                                Commission’s rules and regulations in                                                                          www.prc.gov.
                                                10 CFR Chapter I, which are set forth in                Filing Online system at http://                           2 In years prior to 2013, the Commission reviewed
                                                the license amendment.                                  www.prc.gov. Those who cannot submit                   the Postal Service’s reports prepared pursuant to 39
                                                   A notice of consideration of issuance                comments electronically should contact                 U.S.C. 2803 and 39 U.S.C. 2804 (filed as the
                                                of amendment to facility operating                      the person identified in the FOR FURTHER               Comprehensive Statement by the Postal Service) in
                                                                                                                                                               its ACD. However, as it has for the past several
                                                license or COL, as applicable, proposed                 INFORMATION CONTACT section by
                                                                                                                                                               years, the Commission intends to issue a separate
                                                no significant hazards consideration                    telephone for advice on filing                         notice soliciting comments on the comprehensive
                                                determination, and opportunity for a                    alternatives.                                                                                     Continued




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                                                840                            Federal Register / Vol. 83, No. 5 / Monday, January 8, 2018 / Notices

                                                the Treasury, and information on the                    volume data for all market dominant                    information regarding customer access
                                                Competitive Products Fund filed in                      products of general applicability are                  to postal services. Id. at 54–65.
                                                response to Commission rules. This                      shown directly in the FY 2017 CRA or                      Competitive products. The FY 2017
                                                material has been filed electronically                  ICRA. Id. at 7.                                        ACR provides costs, revenues, and
                                                with the Commission, and some also                         The FY 2017 ACR includes a                          volumes for competitive products of
                                                has been filed in hard copy form.                       discussion by class of each market                     general applicability in the FY 2017
                                                   Scope of the filing. The material                    dominant product, including costs,                     CRA or ICRA. For competitive products
                                                appended to the narrative consists of:                  revenues, and volumes, workshare                       not of general applicability, data are
                                                (1) Domestic product costing material                   discounts, and passthroughs responsive                 provided in non-public Library
                                                filed on an annual basis summarized in                  to 39 U.S.C. 3652(b), and FY 2017                      References USPS–FY17–NP2 and
                                                the Cost and Revenue Analysis (CRA);                    incentive programs. Id. at 7–48.                       USPS–FY17–NP27. Id. at 66. The FY
                                                (2) comparable international costing                       In response to the Commission’s FY                  2017 ACR also addresses the
                                                material summarized in the                              2010 ACD directives,4 the Postal Service               competitive product pricing standards
                                                International Cost and Revenue                          states that it is providing information                of 39 U.S.C. 3633. Id. at 66–73.
                                                Analysis (ICRA); (3) worksharing-related                regarding: (1) All operational changes                 Additionally, the Postal Service
                                                cost studies; and (4) billing determinant               designed to reduce flats costs and the                 responds to the Commission’s Directive
                                                information for both domestic and                       estimated financial effects of such                    in the FY 2016 ACD requiring it to
                                                international mail. FY 2017 ACR at 2–                   changes (id. at 25–31); (2) all costing                identify each NSA product that had no
                                                3. Inclusion of these four data sets is                 methodology improvements made in FY                    mailpieces shipped under its contract in
                                                consistent with the Postal Service’s past               2017 and the estimated financial effects               future ACRs. FY 2016 ACD at 83. This
                                                ACR practices. As with past ACRs, the                   of such changes (id. at 31–35); and (3)                information is provided in USPS–FY17–
                                                Postal Service has split certain materials              a statement summarizing the historical                 NP27 (for domestic NSAs) and USPS–
                                                into public and non-public versions. Id.                and current year subsidy of the flats                  FY17–NP2 (for international NSAs). Id.
                                                at 3.                                                   product (id. at 35). In addition, the                  at 74.
                                                   ‘‘Roadmap’’ document. A roadmap to                   Postal Service states that in the next                    Market tests; nonpostal services. The
                                                the FY 2017 ACR can be found in                         general market dominant price change,                  Postal Service discusses the two
                                                Library Reference USPS–FY17–9. This                     it plans to increase the price of Standard             competitive market tests conducted
                                                document provides brief descriptions of                 Mail Flats by at least consumer price                  during FY 2017 and nonpostal services.
                                                the materials submitted, as well as the                 index times 1.05. Id. at 24. In the FY                 Id. at 75.
                                                flow of inputs and outputs among them;                  2016 ACD, the Commission directed the
                                                a discussion of differences in                                                                                 III. Procedural Steps
                                                                                                        Postal Service to submit an updated                       Statutory requirements. Section 3653
                                                methodology relative to Commission                      report analyzing how the removal of
                                                methodologies in last year’s ACD; and a                                                                        of title 39 requires the Commission to
                                                                                                        Flats Sequencing System pricing in                     provide interested persons with an
                                                list of special studies and a discussion
                                                                                                        Docket No. R2017–1 impacted the cost,                  opportunity to comment on the ACR
                                                of obsolescence, as required by
                                                                                                        contribution, and revenue of periodicals               and to appoint an officer of the
                                                Commission rule 3050.12. Id. at 3.
                                                   Methodology. The Postal Service                      in FY 2017, and whether the removal                    Commission (Public Representative) to
                                                states that it has adhered to the                       improved the efficiency of Periodicals                 represent the interests of the general
                                                methodologies historically used by the                  pricing in FY 2017.5 The Postal Service                public. The Commission hereby solicits
                                                Commission subject to changes                           provides its updated report in Library                 public comment on the Postal Service’s
                                                identified and discussed in Library                     Reference USPS–FY17–44. FY 2017                        FY 2017 ACR and on whether any rates
                                                Reference USPS–FY17–9 and in                            ACR at 39.                                             or fees in effect during FY 2017 (for
                                                prefaces accompanying the appended                         Market dominant negotiated service                  products individually or collectively)
                                                folders. Id. at 4. The Postal Service                   agreements. The FY 2017 ACR presents                   were not in compliance with applicable
                                                observes that one noteworthy                            information on the PHI Acquisitions,                   provisions of chapter 36 of title 39 or
                                                methodological change regarding                         Inc. negotiated service agreement (NSA),               Commission regulations promulgated
                                                product costs was discussed by the                      the only market dominant NSA in effect                 thereunder. Commenters addressing
                                                Commission in Order No. 3506.3 Going                    in FY 2017. Id. at 46–47.                              market dominant products are referred
                                                forward, the Postal Service’s calculation                  Service performance. The Postal                     in particular to the applicable
                                                of attributable costs will be changing to               Service notes that the Commission                      requirements (39 U.S.C. 3622(d) and (e)
                                                include a product’s inframarginal costs                 issued rules on periodic reporting of                  and 39 U.S.C. 3626); objectives (39
                                                developed as part of the estimation of a                service performance measurement and                    U.S.C. 3622(b)); and factors (39 U.S.C.
                                                product’s incremental costs. FY 2017                    customer satisfaction in FY 2010.                      3622(c)). Commenters addressing
                                                ACR at 4. As a consequence, the costs                   Responsive information appears in                      competitive products are referred to 39
                                                labeled as attributable costs in each row               Library Reference USPS–FY17–29. Id. at                 U.S.C. 3633.
                                                of the FY 2017 CRA are not directly                     49.                                                       The Commission also invites public
                                                comparable to costs reported with the                      Customer satisfaction. The FY 2017                  comment on the cost coverage matters
                                                same label in the CRAs filed prior to FY                ACR discusses the Postal Service’s                     the Postal Service addresses in its filing;
                                                2016. Id.                                               approach for measuring customer                        service performance results; levels of
                                                   Market dominant product-by-product                   experience and satisfaction; describes                 customer satisfaction achieved; and
                                                costs, revenues, and volumes.                           the methodology; presents a table with                 such other matters that may be relevant
                                                                                                        survey results; compares the results
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                                                Comprehensive cost, revenue, and                                                                               to the Commission’s review.
                                                                                                        from FY 2016 to FY 2017; and provides                     Access to filing. The Commission has
                                                statement and provide its related analysis in a                                                                posted the publicly available portions of
                                                separate report from the ACD.                             4 Docket No. ACR2010, Annual Compliance
                                                                                                                                                               the FY 2017 ACR on its website at
                                                   3 Id.; see Docket No. RM2016–2, Order                Determination, March 29, 2011, at 106–107 (FY
                                                                                                        2010 ACD).
                                                                                                                                                               http://www.prc.gov.
                                                Concerning United Parcel Service, Inc.’s Proposed
                                                Changes to Postal Service Costing Methodologies           5 Docket No. ACR2016, Annual Compliance                 Comment deadlines. Comments by
                                                (UPS Proposals One, Two, and Three), September          Determination, March 28, 2017, at 22 (FY 2016          interested persons are due on or before
                                                9, 2016 (Order No. 3506).                               ACD).                                                  February 1, 2018. Reply comments are


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                                                                                  Federal Register / Vol. 83, No. 5 / Monday, January 8, 2018 / Notices                                                          841

                                                due on or before February 12, 2018. The                    Analytic Tool. The proposed rule                       change as described in Items I, II and III
                                                Commission, upon completion of its                         change was published for comment in                    below, which Items have been prepared
                                                review of the FY 2017 ACR, comments,                       the Federal Register on October 4,                     by the clearing agency.3 The
                                                and other data and information                             2017.3                                                 Commission is publishing this notice to
                                                submitted in this proceeding, will issue                     On November 15, 2017, pursuant to                    solicit comments on the proposed rule
                                                its ACD.                                                   Section 19(b)(2) of the Act,4 the                      change from interested persons.
                                                   Public Representative. Mallory L.                       Commission designated a longer period
                                                                                                                                                                  I. Clearing Agency’s Statement of the
                                                Smith is designated to serve as the                        within which to approve the proposed
                                                                                                                                                                  Terms of Substance of the Proposed
                                                Public Representative to represent the                     rule change, disapprove the proposed
                                                                                                                                                                  Rule Change
                                                interests of the general public in this                    rule change, or institute proceedings to
                                                proceeding. Neither the Public                             determine whether to approve or                           The proposed rule change would (1)
                                                Representative nor any additional                          disapprove the proposed rule change.5                  adopt the Recovery & Wind-down Plan
                                                persons assigned to assist her shall                       The Commission received three                          of NSCC (‘‘R&W Plan’’ or ‘‘Plan’’); and
                                                participate in or advise as to any                         comment letters on the proposed rule                   (2) amend NSCC’s Rules & Procedures
                                                Commission decision in this proceeding                     change and a response from the                         (‘‘Rules’’) 4 in order to adopt Rule 41
                                                other than in his or her designated                        Exchange.6                                             (Corporation Default), Rule 42 (Wind-
                                                capacity.                                                    On December 22, 2017, the Exchange                   down of the Corporation), and Rule 60
                                                                                                           withdrew the proposed rule change                      (Market Disruption and Force Majeure)
                                                IV. Ordering Paragraphs                                    (SR–PHLX–2017–74).                                     (each a ‘‘Proposed Rule’’ and,
                                                  It is ordered:                                                                                                  collectively, the ‘‘Proposed Rules’’). The
                                                                                                             For the Commission, by the Division of
                                                  1. The Commission establishes Docket                     Trading and Markets, pursuant to delegated             proposed rule change would also re-
                                                No. ACR2017 to consider matters raised                     authority.7                                            number the current Rule 42 (Wind-
                                                by the United States Postal Service’s FY                   Eduardo A. Aleman,                                     down of a Member, Fund Member or
                                                2017 Annual Compliance Report.                                                                                    Insurance Carrier/Retirement Services
                                                                                                           Assistant Secretary.
                                                  2. Pursuant to 39 U.S.C. 505, the                                                                               Member) to Rule 40, which is currently
                                                                                                           [FR Doc. 2018–00073 Filed 1–5–18; 8:45 am]
                                                Commission appoints Mallory L. Smith                                                                              reserved for future use.
                                                as an officer of the Commission (Public
                                                                                                           BILLING CODE 8011–01–P                                    The R&W Plan would be maintained
                                                Representative) in this proceeding to                                                                             by NSCC in compliance with Rule
                                                represent the interests of the general                                                                            17Ad–22(e)(3)(ii) under the Act, by
                                                                                                           SECURITIES AND EXCHANGE                                providing plans for the recovery and
                                                public.                                                    COMMISSION
                                                  3. Comments on the United States                                                                                orderly wind-down of NSCC
                                                Postal Service’s FY 2017 Annual                            [Release No. 34–82430; File No. SR–NSCC–               necessitated by credit losses, liquidity
                                                Compliance Report to the Commission                        2017–017]                                              shortfalls, losses from general business
                                                are due on or before February 1, 2018.                                                                            risk, or any other losses, as described
                                                                                                           Self-Regulatory Organizations;                         below.5 The Proposed Rules are
                                                  4. Reply comments are due on or
                                                                                                           National Securities Clearing                           designed to (1) facilitate the
                                                before February 12, 2018.
                                                                                                           Corporation; Notice of Filing of a                     implementation of the R&W Plan when
                                                  5. The Secretary shall arrange for
                                                                                                           Proposed Rule Change To Adopt a                        necessary and, in particular, allow
                                                publication of this order in the Federal
                                                                                                           Recovery & Wind-down Plan and                          NSCC to effectuate its strategy for
                                                Register.
                                                                                                           Related Rules                                          winding down and transferring its
                                                  By the Commission.                                                                                              business; (2) provide Members and
                                                Stacy L. Ruble,                                            January 2, 2018.
                                                                                                                                                                  Limited Members with transparency
                                                Secretary.                                                    Pursuant to Section 19(b)(1) of the
                                                                                                                                                                  around critical provisions of the R&W
                                                                                                           Securities Exchange Act of 1934
                                                [FR Doc. 2018–00082 Filed 1–5–18; 8:45 am]                                                                        Plan that relate to their rights,
                                                                                                           (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
                                                BILLING CODE 7710–FW–P                                                                                            responsibilities and obligations; and (3)
                                                                                                           notice is hereby given that on December
                                                                                                                                                                  provide NSCC with the legal basis to
                                                                                                           18, 2017, National Securities Clearing
                                                                                                                                                                  implement those provisions of the R&W
                                                                                                           Corporation (‘‘NSCC’’) filed with the                  Plan when necessary, as described
                                                SECURITIES AND EXCHANGE                                    Securities and Exchange Commission
                                                COMMISSION                                                                                                        below.
                                                                                                           (‘‘Commission’’) the proposed rule
                                                [Release No. 34–82425; File No. SR–Phlx–                                                                          II. Clearing Agency’s Statement of the
                                                2017–74]                                                     3 See Securities Exchange Act Release No. 81754      Purpose of, and Statutory Basis for, the
                                                                                                           (Sept. 28, 2017), 82 FR 46319.                         Proposed Rule Change
                                                                                                             4 See 15 U.S.C. 78s(b)(2).
                                                Self-Regulatory Organizations; Nasdaq                                                                                In its filing with the Commission, the
                                                                                                             5 See Securities Exchange Act Release No. 82085,
                                                PHLX LLC; Notice of Withdrawal of a                                                                               clearing agency included statements
                                                                                                           82 FR 55459 (Nov. 21, 2017).
                                                Proposed Rule Change To Introduce                            6 See Letter from Ellen Greene, Managing             concerning the purpose of and basis for
                                                the Intellicator Analytic Tool                             Director, Financial Services Operations, Securities
                                                                                                           Industry and Financial Markets Association, to            3 On December 18, 2017, NSCC filed this
                                                January 2, 2018.                                           Brent J. Fields, Secretary, Commission, dated          proposed rule change as an advance notice (SR–
                                                  On September 20, 2017, Nasdaq PHLX                       November 8, 2017; Letter from Tyler Neville,           NSCC–2017–805) with the Commission pursuant to
                                                LLC (‘‘Phlx’’ or ‘‘Exchange’’) filed with                  Trader, dated November 21, 2017; Letter from           Section 806(e)(1) of Title VIII of the Dodd-Frank
                                                                                                           Joanna Mallers, Secretary, FIA Principal Traders       Wall Street Reform and Consumer Protection Act
                                                the Securities and Exchange                                Group, to Brent J. Fields, Secretary, Commission,      entitled the Payment, Clearing, and Settlement
sradovich on DSK3GMQ082PROD with NOTICES




                                                Commission (‘‘Commission’’), pursuant                      dated December 19, 2017; and Letter from Joan C.       Supervision Act of 2010, 12 U.S.C. 5465(e)(1), and
                                                to Section 19(b)(1) of the Securities                      Conley, Senior Vice President & Corporate              Rule 19b–4(n)(1)(i) of the Act, 17 CFR 240.19b–
                                                Exchange Act of 1934 (‘‘Act’’) 1 and Rule                  Secretary, Nasdaq, to Brent J. Fields, Secretary,      4(n)(1)(i). A copy of the advance notice is available
                                                                                                           Commission, dated December 22, 2017, available at      at http://www.dtcc.com/legal/sec-rule-filings.
                                                19b–4 thereunder,2 a proposed rule                         https://www.sec.gov/comments/sr-phlx-2017-74/             4 Capitalized terms used herein and not otherwise
                                                change to introduce the Intellicator                       phlx201774.htm.                                        defined herein are defined in the Rules, available
                                                                                                             7 17 CFR 200.30–3(a)(31).
                                                                                                                                                                  at www.dtcc.com/∼/media/Files/Downloads/legal/
                                                  1 15   U.S.C. 78s(b)(1).                                   1 15 U.S.C. 78s(b)(1).                               rules/nscc_rules.pdf.
                                                  2 17   CFR 240.19b–4.                                      2 17 CFR 240.19b–4.                                     5 17 CFR 240.17Ad–22(e)(3)(ii).




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Document Created: 2018-01-06 02:32:16
Document Modified: 2018-01-06 02:32:16
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
DatesComments are due: February 1, 2018. Reply Comments are due: February 12, 2018.
ContactDavid A. Trissell, General Counsel, at 202-789-6820.
FR Citation83 FR 839 

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