[Federal Register Volume 79, Number 218 (Wednesday, November 12, 2014)]
[Proposed Rules]
[Pages 67119-67120]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-26538]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket Nos. RM2015-2; Order No. 2238]


Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Commission is noticing a recent Postal Service filing 
concerning the initiation of a proceeding to considered changes to 
analytical principles relating to periodic reports (Proposal Nine). 
This document informs the public of the filing, invites public comment, 
and takes other administrative steps.

DATES: Comments are due: November 21, 2014. Reply comments are due: 
December 5, 2014.

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. Summary of Proposal
III. Initial Commission Action
IV. Ordering Paragraphs

I. Introduction

    On October 31, 2014, the Postal Service filed a petition pursuant 
to 39 CFR 3050.11 requesting that the Commission initiate an informal 
rulemaking proceeding to consider changes to analytical principles 
relating to periodic reports.\1\ Text attached to the Petition 
identifies the proposed analytical method changes filed in this docket 
as Proposal Nine, Refine Split of City Carrier Costs into Office and 
Street Components. Id. Attachment at 1. The Postal Service concurrently 
filed two library references, along with an application for nonpublic 
treatment for one.\2\
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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 Nine), October 31, 2014 (Petition).
    \2\ Notice of Filing of USPS-RM2015-2/1, USPS-RM2015-2/NP1, and 
Application for Nonpublic Treatment, October 31, 2014. One library 
reference is USPS-RM2015-2/1, Public Material Relating to Proposal 
Nine; the other is USPS-RM2015-2/NP1, Nonpublic Material Relating to 
Proposal Nine. The Notice of Filing incorporates by reference the 
Application for Non-Public Treatment of Materials contained in 
Attachment Two to the December 27, 2013 United States Postal Service 
Fiscal Year 2013 Annual Compliance Report. Notice at 1. See 39 CFR 
part 3007 for information on access to nonpublic material.
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II. Summary of Proposal

    The existing costing methodology for city carriers requires data on 
the percentage of time spent in the office versus on the street. 
Petition, Attachment at 1. Currently, separating city carrier accrued 
costs into office costs (cost segment 6) and street costs (cost segment 
7) relies on the In-Office Cost System (IOCS). Id. The Postal Service 
proposes replacing this methodology with the Time and Attendance 
Collection System (TACS), and making related changes. One is the 
proposed use of a recent set of City Carrier Street Route Inspections 
(collected on Form 3999), rather than IOCS, to determine the proportion 
of street costs incurred due to loading or unloading the vehicle. Id. 
Another is a proposed update to the methodology for attributing and 
distributing certain related costs that are currently part of the 
combined Office/Street Burdens, with assignment depending on whether 
the carrier is clocked to the office or to the street. Id. The proposed 
changes are based on the Postal Service's assertion that its 
operational systems have matured to the point where they can now 
provide the necessary data, so the percentage estimated by IOCS can be 
replaced with census data from TACS. Id.
    The Postal Service also provides details on several components of 
Proposal Nine, some of which entail additional methodology changes. For 
example, in the costing methodology for motor vehicle services in cost 
segment 12, the Postal Service proposes replacing the current IOCS 
proxy for the office/street percentage split for motorized routes with 
the split of workhours available from Delivery Operations Information 
Systems (DOIS). Id. at 3. The Postal Service also proposes, in the 
costing methodology for vehicle driveout and carfare in cost segment 
13, to replace the current proxy from IOCS for the office/street 
percentage split for foot routes with the split of workhours available 
from DOIS. Id. at 3-4.
    Cost impacts. The Postal Service states that Table 1 shows that 
Proposal Nine, in aggregate, results in an increase in support costs 
from $1.9 billion to $2.7 billion, and a decrease in aggregate office 
and street costs from $646 million to $291 million. Id. at 5-6. It 
states that Table 2 (public version) shows the impact on product costs, 
and that an expanded nonpublic version also shows the impact on 
individual competitive products. Id. at 6.
    Anticipated implementation date. The Postal Service anticipates 
implementing this methodology change at the conclusion of fiscal year 
2015. Id. at 1.

III. Initial Commission Action

    The Commission establishes Docket No. RM2015-2 for consideration of 
matters raised by the Petition. Additional information concerning the 
Petition may be accessed via the Commission's Web site at http://www.prc.gov. Interested persons may submit comments on the Petition and 
Proposal Nine no later than November 21, 2014. Reply comments are due 
no later than December 5, 2014. Pursuant to 39 U.S.C. 505, Anne C. 
O'Connor is designated as 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. RM2015-2 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 Nine), filed October 31, 2014.
    2. Comments are due no later than November 21, 2014. Reply comments 
are due no later than December 5, 2014.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Anne C. 
O'Connor to serve as officer of the Commission (Public Representative) 
to represent the interests of the general public in this docket.

[[Page 67120]]

    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2014-26538 Filed 11-10-14; 8:45 am]
BILLING CODE 7710-FW-P