Periodic Reporting, 33882 [2019-15031]

Download as PDF 33882 Federal Register / Vol. 84, No. 136 / Tuesday, July 16, 2019 / Proposed Rules POSTAL REGULATORY COMMISSION 39 CFR Part 3050 [Docket No. RM2019–8; Order No. 5145] Periodic Reporting Postal Regulatory Commission. ACTION: Notice of proposed rulemaking. AGENCY: The Commission is acknowledging a recent filing requesting the Commission initiate a rulemaking proceeding to consider changes to analytical principles relating to periodic reports (Proposal Three). This document informs the public of the filing, invites public comment, and takes other administrative steps. DATES: Comments are due: August 19, 2019. SUMMARY: 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. ADDRESSES: FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at 202–789–6820. SUPPLEMENTARY INFORMATION: Table of Contents I. Introduction II. Proposal Three III. Notice and Comment IV. Ordering Paragraphs I. Introduction On July 9, 2019, the Postal Service filed a petition pursuant to 39 CFR 3050.11 requesting that the Commission initiate a rulemaking proceeding to consider changes to analytical principles relating to periodic reports.1 The Petition identifies the proposed analytical changes filed in this docket as Proposal Three. jspears on DSK30JT082PROD with PROPOSALS II. Proposal Three Background. Proposal Three relates to the methodology used to distribute enhanced payments made under the PRIME agreement. Petition, Proposal Three at 1. PRIME is an international agreement among approximately 141 designated postal operators working together in the tracked packet area. Id. n.1. Under PRIME, designated postal operators provide each other with enhanced payments, in addition to the 1 Petition of the United States Postal Service for the Initiation of a Proceeding to Consider Proposed Changes in Analytical Principles (Proposal Three), July 9, 2019 (Petition). VerDate Sep<11>2014 16:51 Jul 15, 2019 Jkt 247001 basic per item payment, for the timely return of scans. Id. The Postal Service used a new methodology to distribute these PRIME enhanced payments in its most recent International Cost and Revenue Analysis (ICRA).2 In the FY 2018 Annual Compliance Determination, the Commission accepted the Postal Service’s distribution of the payments but determined that the Postal Service’s revised methodology ‘‘must be thoroughly reviewed by the Commission and stakeholders through a docketed proceeding before it can be used in future ACRs.’’ 3 Accordingly, the Commission directed ‘‘the Postal Service to file a petition for the initiation of a proceeding to review this proposed change in analytical principles within 90 days’’ of the issuance of the FY 2018 ACD. Id. Proposal. The Postal Service’s proposal seeks to revise the methodology used to distribute PRIME enhanced payments. Under the existing methodology, PRIME costs are distributed entirely to First-Class Package International Service (FCPIS) because the costs are treated as an ‘‘indistinguishable aggregate.’’ Petition, Proposal Three at 1. The Postal Service reports that it is now possible to distribute PRIME costs across products and between Negotiated Service Agreement (NSA) and non-NSA FCPIS. Id. This is accomplished by making use of the ‘‘UX’’ key for tracked mail in the System for International Revenue and Volume, Outbound (SIRVO). Id. at 3. As a result, Proposal Three expands the distribution of PRIME costs beyond FCPIS. Id. Rationale and impact. The Postal Service states that the current methodology ‘‘does not take advantage of the additional information’’ provided by the UX key for tracked mail in SIRVO. Id. The Postal Service reports that the existing methodology allocates all PRIME costs to the non-NSA FCPIS settlements and unitizes those charges based on non-NSA volumes. Id. The Postal Service concludes that ‘‘[t]his essentially set the unitized PRIME payments too high.’’ Id. Proposal Three seeks to distribute these amounts ‘‘based on proportions of UX across products and between NSA and non-NSA FCPIS.’’ Id. The impact of Proposal Three is that costs are shifted away from FCPIS to No. ACR2018, USPS–FY18–NP2—FY 2018 International Cost and Revenue Analysis (ICRA) Report (Revised 2/11/19), February 11, 2019 (February 11 ICRA). 3 Docket No. ACR2018, Annual Compliance Determination, April 12, 2019, at 105 (FY 2018 ACD). PO 00000 2 Docket Frm 00022 Fmt 4702 Sfmt 4702 Outbound Single-Piece First-Class Mail, Priority Mail Express International, International Priority Airmail (IPA), International Direct Sacks—M-Bags, and associated Outbound NSAs. Id. at 4. III. Notice and Comment The Commission establishes Docket No. RM2019–8 for consideration of matters raised by the Petition. More information on the Petition may be accessed via the Commission’s website at http://www.prc.gov. Interested persons may submit comments on the Petition and Proposal Three no later than August 19, 2019. Pursuant to 39 U.S.C. 505, Katalin K. Clendenin is designated as an officer of the Commission (Public Representative) to represent the interests of the general public in this proceeding. IV. Ordering Paragraphs It is ordered: 1. The Commission establishes Docket No. RM2019–8 for consideration of the matters raised by the Petition of the United States Postal Service for the Initiation of a Proceeding to Consider Proposed Changes in Analytical Principles (Proposal Three), filed July 9, 2019. 2. Comments by interested persons in this proceeding are due no later than August 19, 2019. 3. Pursuant to 39 U.S.C. 505, the Commission appoints Katalin K. Clendenin to serve as an officer of the Commission (Public Representative) to represent the interests of the general public in this docket. 4. The Secretary shall arrange for publication of this order in the Federal Register. By the Commission. Ruth Ann Abrams, Acting Secretary. [FR Doc. 2019–15031 Filed 7–15–19; 8:45 am] BILLING CODE 7710–FW–P POSTAL REGULATORY COMMISSION 39 CFR Part 3050 [Docket No. RM2019–9; Order No. 5144] Periodic Reporting Postal Regulatory Commission. Notice of proposed rulemaking. AGENCY: ACTION: The Commission is acknowledging a recent filing requesting the Commission initiate a rulemaking proceeding to consider changes to analytical principles relating to periodic reports (Proposal Four). This document informs the public of the filing, invites SUMMARY: E:\FR\FM\16JYP1.SGM 16JYP1

Agencies

[Federal Register Volume 84, Number 136 (Tuesday, July 16, 2019)]
[Proposed Rules]
[Page 33882]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-15031]



[[Page 33882]]

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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2019-8; Order No. 5145]


Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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

DATES: Comments are due: August 19, 2019.

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. Proposal Three
III. Notice and Comment
IV. Ordering Paragraphs

I. Introduction

    On July 9, 2019, the Postal Service filed a petition pursuant to 39 
CFR 3050.11 requesting that the Commission initiate a rulemaking 
proceeding to consider changes to analytical principles relating to 
periodic reports.\1\ The Petition identifies the proposed analytical 
changes filed in this docket as Proposal Three.
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    \1\ Petition of the United States Postal Service for the 
Initiation of a Proceeding to Consider Proposed Changes in 
Analytical Principles (Proposal Three), July 9, 2019 (Petition).
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II. Proposal Three

    Background. Proposal Three relates to the methodology used to 
distribute enhanced payments made under the PRIME agreement. Petition, 
Proposal Three at 1. PRIME is an international agreement among 
approximately 141 designated postal operators working together in the 
tracked packet area. Id. n.1. Under PRIME, designated postal operators 
provide each other with enhanced payments, in addition to the basic per 
item payment, for the timely return of scans. Id.
    The Postal Service used a new methodology to distribute these PRIME 
enhanced payments in its most recent International Cost and Revenue 
Analysis (ICRA).\2\ In the FY 2018 Annual Compliance Determination, the 
Commission accepted the Postal Service's distribution of the payments 
but determined that the Postal Service's revised methodology ``must be 
thoroughly reviewed by the Commission and stakeholders through a 
docketed proceeding before it can be used in future ACRs.'' \3\ 
Accordingly, the Commission directed ``the Postal Service to file a 
petition for the initiation of a proceeding to review this proposed 
change in analytical principles within 90 days'' of the issuance of the 
FY 2018 ACD. Id.
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    \2\ Docket No. ACR2018, USPS-FY18-NP2--FY 2018 International 
Cost and Revenue Analysis (ICRA) Report (Revised 2/11/19), February 
11, 2019 (February 11 ICRA).
    \3\ Docket No. ACR2018, Annual Compliance Determination, April 
12, 2019, at 105 (FY 2018 ACD).
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    Proposal. The Postal Service's proposal seeks to revise the 
methodology used to distribute PRIME enhanced payments. Under the 
existing methodology, PRIME costs are distributed entirely to First-
Class Package International Service (FCPIS) because the costs are 
treated as an ``indistinguishable aggregate.'' Petition, Proposal Three 
at 1.
    The Postal Service reports that it is now possible to distribute 
PRIME costs across products and between Negotiated Service Agreement 
(NSA) and non-NSA FCPIS. Id. This is accomplished by making use of the 
``UX'' key for tracked mail in the System for International Revenue and 
Volume, Outbound (SIRVO). Id. at 3. As a result, Proposal Three expands 
the distribution of PRIME costs beyond FCPIS. Id.
    Rationale and impact. The Postal Service states that the current 
methodology ``does not take advantage of the additional information'' 
provided by the UX key for tracked mail in SIRVO. Id. The Postal 
Service reports that the existing methodology allocates all PRIME costs 
to the non-NSA FCPIS settlements and unitizes those charges based on 
non-NSA volumes. Id. The Postal Service concludes that ``[t]his 
essentially set the unitized PRIME payments too high.'' Id. Proposal 
Three seeks to distribute these amounts ``based on proportions of UX 
across products and between NSA and non-NSA FCPIS.'' Id.
    The impact of Proposal Three is that costs are shifted away from 
FCPIS to Outbound Single-Piece First-Class Mail, Priority Mail Express 
International, International Priority Airmail (IPA), International 
Direct Sacks--M-Bags, and associated Outbound NSAs. Id. at 4.

III. Notice and Comment

    The Commission establishes Docket No. RM2019-8 for consideration of 
matters raised by the Petition. More information on the Petition may be 
accessed via the Commission's website at http://www.prc.gov. Interested 
persons may submit comments on the Petition and Proposal Three no later 
than August 19, 2019. Pursuant to 39 U.S.C. 505, Katalin K. Clendenin 
is designated as an officer of the Commission (Public Representative) 
to represent the interests of the general public in this proceeding.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. RM2019-8 for consideration 
of the matters raised by the Petition of the United States Postal 
Service for the Initiation of a Proceeding to Consider Proposed Changes 
in Analytical Principles (Proposal Three), filed July 9, 2019.
    2. Comments by interested persons in this proceeding are due no 
later than August 19, 2019.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Katalin K. 
Clendenin to serve as an officer of the Commission (Public 
Representative) to represent the interests of the general public in 
this docket.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2019-15031 Filed 7-15-19; 8:45 am]
 BILLING CODE 7710-FW-P