7
RFCEIYC!)
BEFORE THE
POSTAL RATE COMMISSION
WASHINGTON, DC 20268-0001
POSTAL R4TE AND FEE CHANGES, 1997
:
Docket No. R97-1
.-
DIRECT TESTIMONY OF
PETER HUME
ON BEHAJ-F OF
UNITED STATES POSTAL SERVICE
-
USPS-T-18
CONTENTS
Page
AUTOBIOGRAPHICAL
SKETCH
1
PURPOSE
3
SUMMARY
3
PREVIOUS
METHODOLOGY
6
MODIFICATIONS
9
FIGURES
Figure
1
16
Figure
2
18
Figure
3
20
EXHIBITS
A.
Reclassified
Unit
Costs:
B.
First-Class
Reclassified
Unit
Mail
Costs:
Standard
C.
-.
Mail
Reclassified
Unit
Costs:
Nonprofit
Mail
USPS-18A
USPS-18B
USPS-18C
- 1 -
Direct
Testimony
of
Peter
4
Autobiographical
Sketch
My name
Associates
the
.---
is
economics
have
been
9
U.S.
Postal
10
improve
11
ratemaking.
of
for
15
No
16
processing,
17
after
18
witnesses
in
19
to postal
costing,
20
surveys,
21
logistics
on
of
of
and in
operating
classification
these
including
city
Docket
objective
costs
before
Nos.
this
R76-1,
"non-productive"
MC95-1
In
reform.
addition,
I hava
and
pilot
testing,
training
of
and R87-1
in
and presentation.
in
simulation
and
mail
costs
postal
contributor
nationwide
observer
modeling,
Docket
in
supported
reduction,
to
postal
on delivery
data
the
on behalf
costs,
implemented
I
is
of
R84-1,
As a continuing
dockets.
designed
on my experience
studies
time
and MC96-2
I have
management,
R77-1,
of
firm,
for
purpose;;
time:
in
studies
Commission
street
Foster
that
these
for
delivery
Nos.
and other
of
of
specializing
series
matter
the
firm
a continuing
in Docket
development
consulting
joining
Service
on the
President
Since
The general
of
am a Vice
industries.
testified
14
R90-1
area
previously
of
draws
regulated
formulation
13
,/--.- 2 2
Postal
I
a Washington
Service.
the
the
Hume.
responsible
I have
12
Peter
Inc.,
8
D. Hume
data
personnel,
This
which
work
extends
-2-
from
system
and
management
economic
design
and
factors
Electric
in
with
8
communications
9
on these
the
and
In
this
of
I
analyst,
of
the
focused
I have presented
I was
and
on
especially
systems,
operation
ratemaking.
Corporation
work
field
understanding
as an operations
Research
large
problems
practical
costing
systems.
Westinghouse
evaluating
the
information
numerous
and
technical
papers
subjects.
I obtained
a Masters
11
University
12
Birmingham
(England);
13
management,
finance,
14
Xi,
15
Instituticmn
16
American
the
a
my career
Corporation.
of
to
includes
Planning
performance
10
analysis
underlying
Elsewhere
formerly
and
.-
degree
and a Bachelors
Institute
of
degree
I
and
of
have
data
for
engineering
from
completed
and
Advancement
the
Johns
of
studies
in
I am a member
Electronic
(London,
of
Hopkins
Uniu-ersity
additional
processing.
Engineers
the
from
in physics
Electrical
Electrical
Association
in
of
Engineers,
England),
Science.
Sigma
the
and
the
'-
-3-
,-
1
Purpose
This
costs
testimony
of
and
city
piggybacks)
First-Class
8
costs
9
Similar
other
cost
USPS filings
11
an updating
12
summarY
of
14
for
modeling
15
filings
(1)
16
17
of
18
and
three
:Data from
ODIS data
delivery;
(2)
A new
20
effects
of
21
provide
a basis
cost
DPS letter
for
of
the
the
Cost
Segment
used
by other
the
corresponding
USPS
unit
discounts.
and presented
in
testimony
is
essentially
new base
'year
COLA.
follows
the
previous
10
the
methodology
classification
reform
modifications:
CCS (Carrier
to determine
rural
19
the
to
(in~cluding
work-sharing
development
costs
notable
this
unit
by shape
are
developed
and MC96-2;
developments
delivery
with
develop
year
costs
6&? and
with
were
The present
Methodolosv:
13
costs
MC95-1
those
to
test
functions
unit
The results
in combination
unit
for
FY98
Segments
A.
segments
reclassified
10
Cost
of
delivery
the
with
filing
development
carrier
namely
and Standard
in this
of
the
and rural
associated
witnesses
'-
carrier
category:
rate
for
describes
the
mail
element
mail
estimating
is
on base
Cost
System)
volumes
actually
introduced
year
DPS effects
are
handled
to
(FY96)
in
used~ in place
account
costs
the
test
by city
for
and
the
thereby
year.
- 4 1
The
(3)
2
allow
3
and
for
CCS)
Items
is
use of
CCS for
6
volumes
(as
7
sections,
8
improvements
9
city
in
and
(3)
distinct
in
city
rural
(2).
zero
for
the
base
measure
how DPS "savings"
14
letters
do not
15
distributed
16
development
17
through
FY96
18
carrier
office
19
provide
20
rate
21
estimating
22
FY98.
year
FY96.
categories.
mail
count
The
carrier
via
delivered
directs,
now possible
due
procedures
uses
in
time
box
to
recent
covering
both
costs
were
additional
ICCS data
same CCS data
With
is
for
for
This
possible
by carriers)
are
from
the
of
total
from
the
FY94
proportions
of
LIOCATT
tabulation
to
savings
among
then
the
provides
DPS levels
volume
rural
source,
carrier
it
present
period
consequence
carrier
CCS a common
over
when
actually
The
relative
allocation
distributing
da~ta that
reductions
the
a fortuitous
rural
substantial
categories.
with
savings
(3)
cost
are
no available
DPS savings
available
FY96.
they
are
rate
delivery
but
casing
allocation
for
the
the
budgeted
combination
FY93
there
individual
the
DPS on
year
individual
Modification
26
CRA to
availability.
deliveries
of
(i.e.,
require
among
categories
the
data
rural
and rural
is
However,
an appropriate
25
of
sampling
effects
13
base
of
manner.
non-carrier
the
for
use
precise
the
routes.
12
this
the
carrier
arrangements)
effectively
24
in
between
consequences
from
11
23
a more
CCS statistical
Regarding
the
in
are
custom
(required
definition
determining
and
and
adjustment"
readjusted
(1)
5
10
flats
differences
the
4
"rural
specific
a basis
for
expected
of
parallels
co:sts
becomes
(1)
for
in
the
use
among
possible
that
Of
rate
to
-.
- 5 -
_--
1
compute
2
ODIS
and
3
cost
analysis.
rural
flats
CCS were
Aside
4
the
methodology
6
previous
testimony,
7
MC96-2,
respectively.
9
conforms
Results:
-in
three
cost
readjustment
separate,
from
5
8
'-,
the
to the
The principal
one
and
(C)
the
pertinent
unrelated
each
Standard
and USPS-T-2
of Docket
results
for
table
3.2
expected
13
development
14
the
1.5
reformed
cost
elements
for
city
1.6
reformed
cost
elements
for
rural
17
cost
18
showing
19
year
20
exhibits
21
of
old
of
the
for
how the
Docket
DPS for
new costs
rate
(pre-reform)
elements
with
new rate
city
in
category
test
terms
of
Mail,
(2)
cost
the
follow
the
formats
No.
MC95-1.
established
shown
contains
(1)
with
the
the
a
table
showing
the
(4)
a table
showing
the
(5)
a table
showing
the
to
of
are
and
detrived
combineId,
costs
MC95-1
together
delivery
unit
my
elements
delivery,
adjusted
from
a map depicting
(3)
are
present
(E;) Standard
exhibit
costs
delivery,
Nos.
when
carrier
the
development
year,
categories,
and rural
this
Each
costs
the
unit
the
rural
on record
(A) First-Class
Nonprofit.
1.1
of
of
than
noted,
already
Regular,
levels
just
for
descriptions
I. 0
of
sources
modifications
USPS-T-7
exhibits,
more precisely
CRA rate
and
reconcile
in
categories.
in USPS-T-7A
(6)
from
a table
the
test
These
and USPS-T-7E
a
-6-
1
Workpavers:
2
Workpaper
1:
Spreadsheet
Workpaper
4
2:
Spreadsheet
5
with
DISAGNP.WK3
printouts
with
documentation
6
Workpaper
3:
Copy
of part
7
Workpaper
4:
Copy
c'f
.6,
8
9
Workpaper
5:
Copy
10
Workpaper
6:
copy
11
and
of
Previ.ous
13
In
Cost
FY96 LIOCATT
Segment
and
FY93 LIOCATT
workpapers
WS 7.0.6.5,
.7
Segment
pertinent
of
and
workpaper
pages
Components
WS 10.1.2
of
the
BY96
CRA
Report.
Methodolosv
the
14
similar
15
test
16
together
17
information
18
workings
19
2 USPS-T-2.
20
2.
MC95-1
spreadsheet
year
"The
cost
of
Cost
Segments
12
22
printouts
documentation
3
21
DISAGRR.WK3
and
the
models
designed
"new"
unit
costs
of
with
the
effects
embodied
of
these
in
models
The following
[methodology]
elements".
MC96-2
the
of
filings
DPS,
the
pertinent
are
described
begins
by
These elements
used
specifically
(i.e.
summary
I
to
reformed)
based
base
on
year
essentially
estimate
r.3te
costs
CP.A.
categories,
and
copied
verbatim
establishing
are derived
related
The
in MC95-l USPS-T-7
is
the
inner
and MC96from
USPS-T-
a set of "reform
frssm the existing
z..
- 7
T--
1
2
components
basis
for
3
4
and presort
levels
delivery
functions.
5
"Next,
I note
on the
7,
and 10;
of different
attributable
how '"CPA unit
costs
they
provide
a
mail shapes
of
the
various
costs"
6
7
differ
from "operating
costs".
The former
arise
from combining
the attributable
determined
by the
CRA econometric
models
with
total
8
system)
9
measurement
10
11
12
--
of CRA Cost Segments
6,
separating
out the effects
cost
unit
volume;
of
or
the
latter
from
work
handling
costs
constitutes
13
"My testimony
14
15
components
the
factors
16
explicitly
17
18
categories.
basis
of
19
office
20
21
22
while
the other
city
support
and overheads,
reclassified
delivery,
23
directly
24
25
rural
26
27
28
29
30
31
p_ 32
goes
shape
time
and
from
time
city
and
(especially
recognized
In city
delivery
load
time
elements
existing
from
presort
in
the
proposed
delivery,
differences
affect
time
(as
the
with
the
both
same
time
CR& segments
and
the standpoint
level)
that
of
are
reclassified
in handling
attributable
are
actual
both CPA
rate
on the
costs
hands-on
of
activities)
carrier
street
components,
except
for
are essentially
una.Efected.
In rural
unit
cost categories
can be developed
CRA treatment,
I then
with
city
the
(RPW
and
observation
and reflect
consistently
rural
delivery
shape
and
existing
standards.
direct
costs
at
the
my methodology.
of
review
directly
the
costs
associated
factored
into
the
Dealing
unit
part
on to
from
standards,
pieces.
operating
and
an essential
of
arise
unit
costs
show
Delivery
delivery
to
reflect
automation-compatible
mail.
a disc,ussion
of
ends
with
projections
with
particular
mail
carrier
wage rates,
(Docket
No. MC962
USPS-T-2
how the
Point
office
2)
relies
reductions
on the
in unit
(DPS) are
Sequencing
elements
and the
the expected
My methodological
rollforward
regard
to
flow
densities,
at
which
rural
proportions
of
presentation
(test
year)
cost
DPS
implementation,
and piggybacks."
-8The Isteps
in
just
described
substantially
the
third-class
mail
and
nonprofit
were
costs
of
of
DPS expected
8
showed
9
and
in
for
the
the
10
further
11
how
12
categories
13
As
that
cost
were
provided
14
virtually
the
15
cost
elements
16
Year
FY96
and
17
Test
Year
FY98.
18
they
separate
19
effects
20
Also
21
piggybacks.
22
reconcile
23
of
24
this
25
the
26
results.
to
with
my previous
testimony
present
noted,
the
final
are
derived
from
restructured
to
costs
to
The
the
the
category
of
tables
unit
In
detailed
unit
level
Other
them.
applied
the
costs
addition,
descriptions
to
of
particular
rate
old
CPA rate
the
the
corresponding
by mail
shape,
thereby
but
to
unit
test-year
from
on the
and
not
elements
the
a presentation
that
ena.bling
are
DPS
costs.
record,
the
the
to
details
remainder
incorporated
the
and
adjusted
With
costs.
of
for
adjustments
costs
modifications
Base
is
non-letter
wage-rate
new-category
available
cost
for
categories
of
costs
the
As before,
categories
new rate
_-
retains
and exhibits.
includes
the
development
feature
letter
Finally,
focus
cost
obtain
roll-forward
development
(MC96-2).
year.
underlying
spreadsheets
An essential
will
second-class
,with
rate
present
of
filings
to
tabulating
test
containing
same format
the
the
second-class,
and
together
the
filings
examples.
delivery
as before,
previous
Mail,
exhibits
in
methodology
be applied
the
in USPS-T-2
categories
elements
as illustrative
already
of
category
spreadsheet
the
mail
between
Cm-based
in
(MC95-1)
a series
new rate
relationships
exhibits
First-Class
USPS-T-7
in
the
to
nonprofit
presented
each
applied
same way
and third-class
results
were
.-
FY98
of
into
test-year
.L
-
1
As noted
3
the
4
and
above,
previous
(3)
filings
as
only
7
rural
a basis
8
The CCS was originally
9
city
carrier
and
characteristic
11
from
12
be seen
13
and R of my Workpaper
14
differ
15
volume.
the
18
at
19
obtaining
20
representative
21
design
22
data
23
representative
that
the
CCS are
from
costs
rural
differs
CCS data,
from
(2)
that
of
DPS effects,
the
volumes
time,
the
of
changes,
the
letter,
CCS now provides
and
This
has
parcel
the
to
eliminated
Sheets
Q
aimed
rather
and
certain
the
because,
at
than
statistical
mail
total
determine
CCS was
volume
shape
As can
as in
o:E concern
recent
own
(composition
from
data
both
that
and RPW volumes
used
of
CR&
their
as well
categories
Following
data.
with
in
rural,
were
design
recognizing
R:PW system.
composition
rate
categories.
copied
distribution
flat,
basis.
city,
ODIS data
the
rate
differ
each
the
(separately)
only
by the
pages
category
statistical
volume
deal
in
and
purpose,
well
current
filings,
rural
this
may
2 (two
rate
previous
individual
as measured
1 and
l),
carrier
each
which
volume
in
for
used
customarily
to
delivery
representative
fo,r
(1)
city
intended
Figures
appreciably
and
to
distributing
mail
from
city
respect
mailstreams
total
17
with
for
10
In
development
attributable
delivery
16
present
Data
6
the
the
flats.
rural
Ccs; Data:
5
T..
-
Modifications
2
-
9
system
distribution
on
the
distortions
same
in
- 10 1
the
unit
costs
2
from
3
compute
4
used
5
exclusive
6
improvements
using
two
use
8
extracting
9
from
the
are
the
the
pertinent
cost
10
GOVTADJ.XLS
11
results
12
respectively
13
in
14
percentages
15
represented
16
the
17
my
of
these
of
data
extractions
are
Workpaper
my
by
Columns
rate
category
by the
in
city
the
and rural
previous
of
total
volumes.
below.
by
directly
data
Sheet
are
come
from
The
Q and
also
Sheet
R
contained
these
sheets
show
the
(RPW)
volume
that
is
This
filings,
afforded
RDGCVTADJ.XLS.
sheets
each
of
city
in
similar
in
and
figures
from
contained
1;
2.
CCS
come
present
development
rate-category
workpapers.
The
present
to
sometimes
as described
the
of
CCS rural
my Workpaper
"density"
columns
segment
and
in
were
workpapers
adjustment,
resulted
systems
shapes.
the
implemented
data
too
non-letter
flats
that
sampling
simplified
rural
delivery
determinants
and
CCS has
to
or rural
billing
letter
of
data
city
independent
Moreover,
distinguish
CCS
with
essentially
them.
to
7
associated
plays
percentage,
called
an important
part
in
development.
cost
18
DPS Effects:
19
20
reform
21
development
22
11savings"
23
in
24
the
is
to realize
(delivery
carrier
The DPS savings
25
the
previous
26
representing
the
methodology
in
city
Since
filings
one of the
cost
pays
costs
and
for
100 percent
reduction
purposes
rural
a given
letter
percentage
weighted
DPS and
to
mean of
the
other
classification
of
attention
respect
carrier
of
potentials
particular
with
as the
main
DPS, the
cost
ito estimating
specified
levels
the
of DPS
mailstreams.
of DPS were
two
cost
representing
computed
elements,
zero
in
one
DPS.
- 11 The zero
DPS cost
volume
and
Was
5
anticipated
6
explanation,
Docket
7
2 , USPS-T-7C
at
a
3.0
9
unit
cents
cents
of
4.0
cents
the
because
DPS is
13
embodies
14
well
15
contemporary
16
distribution
17
rate
18
,a zero
19
same way as the
20
,without
does
not
on
a
local
to
cost
23
added
existing
24
direct,
25
appropriate
26
cost
to
the
office
when
to
the
we need
base
year
the
the
for
No. MC96elements
the
of
and
category
base
among
provide
in
the
by
year.
introducing
a
element
is
CRA elements
(office
on)
amounts
SO
to
the
with-and-
F!eturnecl"
delivery
time,
on
savings
not
is
from
'data
two-element,
issue
year
amount
DP!; proportions
this
50
CRA data
evident
does
a
piece.
this
amount
quantified
to
FY96 base
are
year
of
of
present
no
the
are
reflect
per
are
"DPS Savings
DPS savings
element
DPS lead
c'ents
saving:;
specific
rate
Was
(see,
While
FY96 base
city
to
cost
and
relative
resolves
load
affected
1.0
with
a better
The
support,
pertinent
is
To apply
there
a DPS proportion
the
to
CFCA cost
percent
without
savings.
the
year.
element.
each
and
with
the
year
16 and Docket
there
costs
development
new delivery
with
and
or
FY93 base
22
delivery
statistics,
relate
DPS approach,
example,
of
Apparently,
DPS basis
procedures
implemented
basis
DPS levels
categories.
DPS
properly
amount
work-hours
of
cost
at
piece
work
100
office
DPS savings
a substantial
known
per
The
USPS-T-7
piece
now extensively
The present
21
per
effective
method
I.2
for
base
because
FY93.
the
Thus,
5.0
and
This
11
in
No. MC95-1,
the
possible
under
and
cost
percent
delivery
productivity
2).
from
Was
"factoring"
by
4
10
:-
no DPS in
obtained
directly
which
figures,
essentially
._--
was derived
represent
excluded.
in
the
extra
The pertinent
- 12 savings
are
amounts
recognized
distributed
of
cost-level
the
relative
categories,
figures
an
for
I-l
example
Class
office
bulk
rate
l),
3brr
12
Elem
13
DPS Savings
Access
14
15
16
20
about
21
percent
22
methodology,
23
costs.
24
($221,646)
25
(and
26
increases
27
volume
16 percent
of
As
($000)
3brr
from
Ltrs
221,646
132,227
64,951
16,674,971
Returned
of
Office
element
with
FY93
million),
with
the
element
Direct
-..
is
the
the
3brr
for
costs.
applied
(FY96)
only
base
DPS Savings
cumulative
nullified),
10,700,702
for
costs
letter
the
result,
becomes,
(10,700
CRA
809,641
the
since
the
105,645
Direct
therefore
those
obtained
64,951
21,862
16,498
Returned
Office
a
consider
172,709
St Support
Total
6&7
The DPS Savings
basis
79,504
Route
19
for
then
LIOCATT.
413,386
Load
CCS Pieces
FY93
(figures
Other
Direct
Overhead
17
18
is
labor
Returned,
Other
total
as follows:
9
Office
Office
the
budget
by DE'S on the
direct
from
DPS Savings
total,
This
affected
of
my Workpaper
10
11
FY96.
categories
directly
of
cumulative
through
proportions
Third
of
FY93
rate
as obtained
For
adjusted,
from
among
the
Sheet
the
-.~
all
is
shapes
accordance
to
the
year
unit
my
letter
cost
included
DPS productivity
Given
$266,597.
with
element
of
30
letter-related
3brr
Returned
evidently
and over
In
effects
corresponding
Other
costs
the
are
CCS letter
2.071
and
- 13 -
r-2.678
cents.
cost
that
The 2.678
would
DPS progiram;
4
FY98
5
implementation,
,.-
elements
8
while
the
9
(see
Sh,eet
obtained
11
direct
12
83 pieces
13
Returned
14
2.46
15
in
the
16
of
DPS,
on
actual
unit
I-2
cost
letter
of
cents
minute
per
test
single
year
depends
the
21
third-class
22
than
23
DPS Savings
24
component
25
Returned
26
associated
are
categories
(i.e.,
office
the
element
with
handling
letter
no previous
for
future
determining
levels
of
DPS
the
4.437
cents
is
1.977
cents
first
element
to
of
the
this
in
realized
determining
level
described
for
through
presort
bulk
by
noted,
the
all
FY96:
letters,
regular,
shapes
shape
to
is
testimony.
includes
As already
3brr
test-year
third-class
only
of
for
potential
just
a category
actual
DPS Savings
my previous
manner
is
a productivity
projected
applied
when
the
DPS saving
disaggregated
is
figure
above)
First-Class
cards,
activity
letter
by DPS implementation
Where
DPS handling.
is
excluding
on the
letters,
excluded
cents
DPS
potential
in
street
as noted
explained
treated
development.
is
The
The amount
method
and
DPS letters
corresponding
directly
are
2.678
1).
full
nonprofit.
Returned
of
the
presort
costs
letters,
the
specifically
piece
cards,
bulk
to
affected
single
piece
and
DPS letter.
DPS savings
20
cost
3brr
been
point
of
a value
Thus
following
First-Class
labor
there
basis
("factoring",
with
element.
19
had
starting
my Workpaper
cost
per
rate
direct
the
for
by substituting
the
FY96
corresponding
equivalent
18
in
the
a practical
costs
combined)
10
thus
as follows.
total
7
17
I'-
provides
year
The
6
is
be experienced
it
test
cents
and
and
other
then
the
the
letter
the
DPS Savings
costs
cost
directly
-14Rural
1
Flats
Adiustment:
the
CRA because
2
necessary
in
3
differently
4
Docket
5
Barker
6
adjustment
causes
about
7
determined
by
rural
8
under
9
seeIn in
from
No.
the
MC95-1,
route
columns
my Workpaper
11
RDGOVTADJ.XLS.
12
properly
(j)
l),
the
simple
ratio
15
already
16
CCS data
17
letters
and
18
improve
the
19
example.
20
Workpaper
l),
21
line
125,
columns
22
from
cost
23
Workpaper
24
distribution
25
cost,
26
by
the
flats
is
necessary
if
the
With
reference
the
segment
The
vector
existing
is
the
to
(m).
through
worksheet
flats
letters
be
ws
cost
3
These
(65,201)
shown
adjustment
at
as
from
this
as
flats
can be
Sheet
R of
CRA worksheet
costs
are
was
made
volume
relies
to be
(part
costs
factor
on
c!osts
the
for
are
results
I
3brr
taken
to
of
my
are
at
directly
herewith
as
from
letter
t.he
The actual
column
(0.85337).
into
following
Sheet
(copied
126,
exclusively
in
of
a
As
opportunity
costs
adjustment.
line
3brr
by
figures.
carrier
an
for
carrier
10.1.2
flats
USPS-T-4,
costed
the
provides
Figure
(i)
97,242,
the
of
CRA rural
as shown
the
CRA,
unit
rural
This
rural
after
FY96
a readjustment
ODIS
distributed
letter
the
2 (copied
development
readjus,tment,
CPA (see
CRA volumes.
such
components.
flats
however,
from
the
the
computations
edited
to
"flats"
R94-1,
to
been
respect
disaggregate
count
Figure
present
for
is
No.
to
of
filings,
defines
used
The pertinent
has
to
count
systems
mail
(r)
adjustment
(1 - 0.85337)
carrier
correction
mail
regard
15 percent
with
indicated,
"undoing"
With
which
flats
19 and Docket
A readjustment
14
5.
at
through
previous
to
data
standards.
determined
In
13
the
rural
rural
statistical
10.0.3).
rural
10
the
USPS-T-7
Workpaper
the
The
.-
(i),
This
letter
obtained
figure
my
,-
- 15 results
were
the
from
adding
costed
at
pertinent
times
the
(97,242
the
cost
rate
of
distributed
letter
-
from
(179,263
allocating
the
9
letters
and
10
costs.
The letter,
11
determine
the
flats.
3rr
The
figures
is
so
added
distributed
and
flat,
unit
the
of
125,1)
costs
(at
in
delivery.
line
(from
to be 2.66
cost,
32,041
column
125j1
127 shows
that
found
letter
(at
DPS costs
rural
is
The
the
cost
(at
and parcel
costs
to
line
boxholder
rate
same way).
flats
Finally,
adding
flats
letters
and CCS volumes)
the
distributed
flats
15 percent-odd
in
- 32,041).
8
the
(found
that
the
of
cost
rate
65,201)
subtracted
147,222
the
the
to
125,m)
obtain
results
equally
is
of
between
to
127 are
letter
used
to
ccs
city
Data
Extracted
from
GOVTADJ
Worksheet
Figure
1 -a
I
i’.
i
ccs
city
Data
Extracted
from
Figure
GOVTADJ
1 -b
Worksheet
-
17-
-
17-
Exiracted
from
RDGOVADJ
Worksheet
Figure 2-a
-lS-
CCSRural
Data
Extracted
from
RDGOVADJ
Worksheet
0
0
0
0
0
57,458
2.882
85,609
0
0
8,584
8,564
Figure 2-b
- ,8-
Figure 3
- 20 -
FXHfBlT
USPS-18A
Reclassifxd Unit Costs: First-Class Mail
,a-..
A-l
Reform Cost Elements Map
A-2
Reform Cost Elements for City Delivery
A-3
Reform Cost Elements for Rural Delivery
A-4
Reform Cost Elements for City & Rural IDelivery
A-5
Reclassified Unit Costs
A-6
Reconciliation of First-Class Mail Categories
c
h
c
h
c
h
c
h
c
h
I
k
I
I
/’
Pag.?olS
USPS- ISA
Pqe3d6
PdlPPvl Crds
Csds
DPS Cds
(11
(ml
i
!
Rd
L8P
DPS
CD
Pstwvl
Cd8
(1)
Csda
DPS Cd8
(m)
Rssrrl
rn”Ql
I”1
Csda
01
(0)
DPS
(PI
USPS- ISA
PcgiSOiB
TABLE ~-6
RECONClUATlON
OF FIRST-CLASS
(hl
DPS
WL
CATEGORlES
“SPSMA
Pqle6016
EXHIBIT
USPS18B
Reclassified Unit Costs: Standard Mail
B-l
Reform Cost Elements Map
B-2
Reform Cost Elements for City Delivery
B-3
Reform Cost Elements for RunI Delivery
B-4
Reform Cost Elements for City & Rural Delivery
B-5
Reclassified Unit Costs
B-6
Reconciliation
of Standard Mail Categories
\
c
h
I
k
a
a
c
c
n
I
k
I
ml
3.63
4.58
2.31
3.03
2.32
3.42
4.13
3.44
2.37
2.81
2.82
4.37
0,06
1.65
0.86
0.77
0.68
0.94
1 .r2
1.72
0.48
0.69
0.84
1.80
4.6,
622
3.17
3.79
3.03
4.37
5.86
516
2.85
3.60
3.76
6,27
rkbS4
CITY
TABLE B-2
DELIVERY
90 PBCB”,
REFORM
COST ELEMENTS
FOR CITY DELlVERY
01 Full -up
3.423
0.664
4.133
0.664
2.816
0.664
3 441
0 664
2.374
0.864
2.809
0.684
‘\
TABLE S-3
90 Pcscento,
I
STANDARD
MAIL
REFORM
COST ELEMENTS
FOR R”APL
USPS- MS
Pe~o3016
OEWERY
FU,, up
0)
(ml
InI
(01
(PI
(41
t1
(6)
TABLE S-4
REFORM
COST ELEMENTS
FOR CITY + RURAL DELIVERY
USPS- ISB
“...
2 ., ^
‘q’*“,o
?
TABLE S-6
RECONCIUATION
OF STANDARD
(h)
DPS
MAIL CATEGORIES
USPS- 16s
Pqge6016
(0
OPS
U”ll
03
Rokled
Roclaw
EXHIBITUSPS-18C
Reclassified Unit Costs: Nonprofit Mail
C-l
Reform Cost Elements Map
c-2
Reform Cost Elements for City Delivery
c-3
Reform Cost Elements for Rural Delivery
C-4
Reform Cost Elements for City & Rural Delivery
c-5
Reclassified Unit Costs
C-6
Reconciliation
of Nonprofit Mail Categories
,-,.
-
h
I
k
c
c
USPS-
ISC
_-
8
”
VI
(h)’
(0
DF-S meclvo
!!“I!
I!“,!