[Federal Register Volume 89, Number 212 (Friday, November 1, 2024)]
[Proposed Rules]
[Pages 87319-87320]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-25401]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2025-2; Order No. 7831]


Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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

DATES: Comments are due: November 27, 2024.

[[Page 87320]]


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
III. Notice and Comment
IV. Ordering Paragraphs

I. Introduction

    On October 22, 2024, 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 modifications to the mail processing 
cost model for Parcel Select and Parcel Return Service. Petition, 
Proposal at 1.
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    \1\ Petition of the United States Postal Service to Initiate a 
Proceeding to Change Analytical Principles and Notice of Filing Non-
Public Materials, October 22, 2024 (Petition). The proposed change 
is attached to the Petition (Proposal).
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II. Proposal

    Background. The Postal Service states that, in Order No. 6536, the 
Commission approved structural changes designed to simplify the Parcel 
Select price structure. See id. at 1, n.3. The Postal Service further 
states that, in Order No. 6798, the Commission approved conforming 
changes to the Parcel Select and Parcel Return Service (PRS) mail 
processing and transportation cost models. See id. at 2, n.4. The 
Postal Service notes that in Fiscal Year (FY) 2024, the Commission 
approved several Negotiated Service Agreements (NSAs) that include a 
provision for DHub-entered packages, whose supporting workpapers 
``utilized the DSCF-SCF mail processing cost as a proxy for the DHub 
non-presort cost[.]'' See id. at 2. The Postal Service states that in 
its requests it declared the intention to propose a DHub non-presort 
mail flow model and corresponding mail processing cost for Commission 
review. Id.
    Proposal. For purposes of reporting costs for NSAs under which 
``the customer will be able to enter machinable non-presorted DHub 
packages at specific designated Sorting & Delivery Centers (S&DCs) that 
contain parcel sorting equipment[,]'' the Postal Service proposes that 
the Parcel Select and PRS mail processing cost model be modified to 
``include a non-presort machinable mail flow (DHub) and corresponding 
mail processing cost estimates for DHub-entered packages.'' See id. at 
2-3. This new flow and corresponding cost estimate would be in addition 
to existing flows and cost estimates for 5-digit presorted DHub-entered 
packages and non-presorted DSCF-entered packages. See id.
    The Postal Service filed under seal the proposed modified mail 
processing cost model with the Petition. Id. at 3. The proposed cost 
model includes DHub cost estimates for non-presort machinable Parcel 
Select Heavy Weight (PSHW) and non-presort machinable Parcel Select 
Light Weight (PSLW) mailpieces. Id. The corresponding new mail flow 
includes ``differing hub container movement costs and additional 
sortation'' and has ``only pallet container unloading costs, as well as 
additional costs for parcel machine processing and manual processing'' 
along with ``[c]osts for the loading and unloading of Postal Service 
hampers of sorted parcels[.]'' Id. The new mail flow uses the same 
delivery unit cost for secondary parcel sortation as the existing 5-
digit presorted DHub mail flow. Id. A second, similar new mail flow is 
included in the proposed cost model for DHub non-presort PSLW which 
uses delivery unit costs specific to PSLW. See id.
    Impact. The Postal Service emphasizes that existing mail processing 
unit costs are, in general, not impacted by the Proposal, which instead 
introduces two new cost estimates. Id. at 4. The Postal Service notes 
that adoption of the Proposal would not have had any effect on FY 2023 
costs at the Cost and Revenue Analysis (CRA) level, and that the 
approved NSAs that include a provision for DHub-entered packages had no 
such volume in FY 2024. Id.

III. Notice and Comment

    The Commission establishes Docket No. RM2025-2 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 the Proposal no later 
than November 27, 2024. Pursuant to 39 U.S.C. 505, Arif Hafiz 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. RM2025-2 for consideration 
of the matters raised by the Petition of the United States Postal 
Service to Initiate a Proceeding to Change Analytical Principles and 
Notice of Filing Non-Public Materials, filed October 22, 2024.
    2. Comments by interested persons in this proceeding are due no 
later than November 27, 2024.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Arif Hafiz 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 the publication of this order in 
the Federal Register.

    By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2024-25401 Filed 10-31-24; 8:45 am]
BILLING CODE 7710-FW-P