[Federal Register Volume 85, Number 144 (Monday, July 27, 2020)]
[Proposed Rules]
[Pages 45139-45140]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-15740]
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POSTAL REGULATORY COMMISSION
39 CFR Part 3050
[Docket No. RM2020-11; Order No. 5587]
Periodic Reporting
AGENCY: Postal Regulatory Commission.
ACTION: Proposed rule.
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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 Four).
This document informs the public of the filing, invites public comment,
and takes other administrative steps.
DATES: Comments are due: August 14, 2020.
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 Four
III. Notice and Comment
IV. Ordering Paragraphs
I. Introduction
On July 13, 2020, 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 Four.
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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 Four), July 13, 2020 (Petition). The
Postal Service also filed a notice of non-public materials relating
to Proposal Four. Notice of Filing of USPS-RM2020-11-NP1 and
Application for Nonpublic Treatment, July 13, 2020.
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II. Proposal Four
Background. Proposal Four relates to the methodology used in
International Cost and Revenue Analysis (ICRA) reporting to distribute
international mail settlement expenses to international mail
categories. Petition, Proposal Four at 1. The Postal Service reports
outbound settlement costs in two General Ledger accounts: account no.
53298 (INTERNATIONAL-FOREIGN POST EXPENSE (OTHER)) and account no.
53299 (INTERNATIONAL-FOREIGN POST EXPENSE (AIR)). Id. Currently, the
Postal Service applies a single benchmark factor to all of the products
and sub-products in each of these two accounts. Id. The Postal Service
also filed a detailed assessment of the impact of the proposal on
particular products in a non-public attachment accompanying this
proposal.\2\
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\2\ See Library Reference USPS-RM2020-11-NP1.
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Proposal. The Postal Service's proposal seeks to replace the
existing methodology which uses a single benchmark factor for each
account with an approach that benchmarks to eight product and sub-
product categories within the two settlement expense accounts.
Petition, Proposal Four at 1-2. The Postal Service states that the
proposal would use additional Foreign Postal Settlement (FPS) mail
category item-and weight-component expense data to develop these
benchmarks. Id. at 1. The Postal Service avers that the structure for
more detailed benchmarking already existed in the ICRA but required
more detailed information that is now available from FPS. Id. at 3.
Rationale and impact. The Postal Service contends that the proposed
methodology will improve ICRA reporting by providing ``a finer level of
mail category detail.'' Id at 2. The Postal Service states that the
proposed methodology ``eliminates the need to use single account-level
factors to benchmark the expense amounts across all mail
categories[,]'' and instead uses additional FPS data to report
settlement expenses that are ``directly related'' to the eight product
and sub-product categories in the two outbound settlement expense
accounts. Id.
The Postal Service states that the proposed methodology would shift
$7 million of expenses in FY 2019 from market dominant to competitive
products. Id. The Postal Service characterizes this impact as
``relatively modest.'' Id.
III. Notice and Comment
The Commission establishes Docket No. RM2020-11 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
Four no later than August 14, 2020. Pursuant to 39 U.S.C. 505, Gregory
Stanton is designated as an
[[Page 45140]]
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. RM2020-11 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 Four), filed July
13, 2020.
2. Comments by interested persons in this proceeding are due no
later than August 14, 2020.\3\
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\3\ The Commission reminds interested persons that its revised
and reorganized Rules of Practice and Procedure became effective
April 20, 2020, and should be used in filings with the Commission
after April 20, 2020. The new rules are available on the
Commission's website and can be found in Order No. 5407. Docket No.
RM2019-13, Order Reorganizing Commission Regulations and Amending
Rules of Practice, January 16, 2020 (Order No. 5407).
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3. Pursuant to 39 U.S.C. 505, the Commission appoints Gregory
Stanton 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.
Erica A. Barker,
Secretary.
[FR Doc. 2020-15740 Filed 7-24-20; 8:45 am]
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