BEFORE THE

POSTAL RATE COMMISSION

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:

POSTAL RATE AND FEE CHANGES, 1997 : DOCKET NO. R97-1

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**FIRST SET OF INTERROGATORIES FROM UNITED PARCEL SERVICE**

**TO UNITED STATES POSTAL SERVICE WITNESS DEGEN**

**(UPS/USPS-T12-1 through 8)**

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(September 17, 1997)

Pursuant to the Commission\'s Rules of Practice, United Parcel Service
hereby serves the following interrogatory and request for production of
documents directed to United States Postal Service witness Degen
(UPS/USPS-T12-1 through 8).

Respectfully submitted,

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

John E. McKeever

Albert P. Parker

Stephanie Richman

Attorneys for United Parcel Service

Schnader Harrison Segal & Lewis LLP

1600 Market Street, Suite 3600

Philadelphia, PA 19103-7286

\(215\) 751-2200

and

1913 Eye Street, N.W., Suite 600

Washington, D.C. 20006-2106

\(202\) 463-2900

Of Counsel.

**INTERROGATORY OF UNITED PARCEL SERVICE**

**TO UNITED STATES POSTAL SERVICE WITNESS DEGEN**

**UPS/USPS-T12-1**. Please refer to Table 4 on page 15 of your direct
testimony and provide the exact source in USPS-T-14, Table 1, or
derivation from sources in USPS-T-14, Table 1, or any other source(s) if
necessary, for each of the variabilities in Table 4.

**UPS/USPS-T12-2.** Please confirm that changing the variable "VARB" in
the SAS program MOD4DIST.SAS in LR-H-218 to equal 1.00 for each of the
values of the variable "POOL" will result in 100 percent volume variable
costs for MODS cost pools. If not confirmed, please explain.

**UPS/USPS-T12-3.** Please confirm that changing the variable "VARB" in
the SAS program MOD4DIST.SAS in LR-H-218 to equal X.XX for each of the
values of the variable "POOL" will result in X.XX percent volume
variable costs for MODS cost pools. If not confirmed, please explain.

**UPS/USPS-T12-4.** Please confirm that changing the variable "VARB" in
the SAS program BMC4.SAS in LR-H-218 to equal 1.00 for each of the
values of the variable "POOL" will result in 100 percent volume variable
costs for BMC cost pools. If not confirmed, please explain.

**UPS/USPS-T12-5.** Please confirm that changing the variable "VARB" in
the SAS program BMC4.SAS in LR-H-218 to equal X.XX for each of the
values of the variable "POOL" will result in X.XX percent volume
variable costs for BMC cost pools. If not confirmed, please explain.

**UPS/USPS-T12-6.** Please confirm that changing the line "VCOSTS =
DOLLAR\*GFY\*.786" to "VCOSTS = DOLLAR\*GFY" in the SAS program
NONMOD4.SAS in LR-H-218 will result in 100 percent volume variable costs
for non-MODS cost pools. If not confirmed, please explain.

**UPS/USPS-T12-7.** Please confirm that changing the line "VCOSTS =
DOLLAR\*GFY\*.786" to "VCOSTS = DOLLAR\*GFY\*X.XX" in the SAS program
NONMOD4.SAS in LR-H-218 will result in X.XX percent volume variable
costs for non-MODS cost pools. If not confirmed, please explain.

**UPS/USPS-T12-8.** Are there BMCs that operate using MODS operation
codes rather than PIRS operation codes? If your answer is other than an
unqualified no, please indicate how these facilities are handled in
LR-H-146/LR-H-218.

**[CERTIFICATE OF SERVICE]{.underline}**

I hereby certify that I have this date served the foregoing document in
accordance with section 12 of the Commission's Rules of Practice.

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Stephanie Richman

Dated: September 17, 1997

Philadelphia, Pa.