RECEIVELI
BEFORE THE
POSTAL RATE COMMISSION
WASHINGTON,
D.C. 20268-0091
SEP 11
‘-/ 57 Pii ‘97
POSTAL RhTC '2" I':_. ,';I,
OFTlCt. Oi TtiE Siii;E;ARr
POSTAL
RATE
AND
FEE CHANGES, 1997
Docket No. R97-1
~
RESPONSE OF UNITED STATES POSTAL SERVICE WITNESS
ALEXANDROVICH
TO INTERROGATORY
OF THE OFFICE OF THE CONSUMER
ADVOCATE
(OCA/USPS-T5-14)
The United States Postal Service hereby provides the respo’nse of witness
Alexandrovich
to the following interrogatory
OCAIUSPS-T5-14,
of the Office of the Consumer
Advocate:
filed on August 28, 1997.
The interrogatory
is stated verbatim and is followed by the response.
Respectfully
submitted,
UNITED STATES POSTAL SERVICE
By its attorneys:
Daniel J. Foucheaux. Jr.
Chief Counsel, Ratemaking
&%@A~
Susan M. Duchek
475 L’Enfant Plaza West, S.W.
Washington, D.C. 120260-l 137
(202) 268-2990; Fax -5402
September 11, 1997
Response of United States Postal Service Witness Alexandrovich
to Interrogatories of
Office of the Consumer Advocate
OCAIUSPS-T5-14.
Please confirm that the cost segments and components identified
In exhibit USPS-5A represent the same segments and components a,s identified in the
Postal Servrce’s FY 1996 CRA filed with the Commission on June 6, 1997. If you are
unable to confirm, identify each segment and component that differs and identify the
specific costs that have migrated. Your response should include a cross-walk that
clearly identifies the costs appearing in the Postal Service’s published FY 1996 CRA,
the migration path to the components appearing in your USPS-5A anld information
similar to that provided in USPS library reference H-l. As an example, do the Postal
Service’s FY 1996 CRA total costs for segment 3.2 window service (2,013,205 at 2)
represent the same type of total costs presented in USPS-5A 3.2 wirldow service
(1,906,619 at 20)? See also USPS library reference H-l at 3-8.
OCAIUSPS-T5-14
Response:
In general, the segments and component identified in exhibit IJSPS-5A represent
the same segments and components
as identified in the Postal Service’s FY 1996 CRA
filed with the Commission on June 6, 1997 pursuant to the periodic reeporting
requrrements.
The reason I use the qualifier “in general” is because, although the
dollar amounts are not the same in the two versions of the segments and components
mentioned above, the basic definition of the components
and their groupings
Into
segments is the same. For example, the definition of component 35, Mail Processmg
Direct Labor is the same in both versions.
A request for a cross-walk of the migration path between the two versions might
Indicate a misunderstanding
of the development.
This is unlike the situation that
existed in Docket No. MC96-3 wherein changes from Fiscal Year 1994 to Fiscal Year
1995 were implemented
systems used in Budget.
to more closely align the CRA report and th’e accounting
In that situation, a clear cross-walk was possible because the
Response of United States Postal Service Witness Alexandrovich
to Interrogatories of
Office of the Consumer Advocate
dollar amounts In accounts and components were literally moved from one place to
another.
See USPS Library Reference SSR-10.
The situation in Docket No. R97-1 IS entirely different
Attachment
response shows the accrued costs for all the “A Report” components
I to this
that differ
between the FY 1996 CRA and the FY 1996 Ease Year presented in this case. These
component by component dollar amount differences are not the result of accounting
changes or realignment
methodologies.
of the component,
rather they are the result of new costing
This means for example, that the cost pool for Segment 3 is the same
in both versions, but the calculations
that result in how these dollars are spread to the
individual components that comprise Segment 3 are different.
As discussed on pages 5 and 6 of my testimony, the following testimonies
should be consulted to fully understand the new costing methodologies
the dollar differences
between components
in the FY 1996 CRA and the FY 1996 Base
Year. In Segment 3, Clerks and Mailhandlers,
for window service see Witness Brehm,
USPS-T-21, for mail processing volume variabilities
and for mail processing cost distribution
that give rise to
see Witness Bradley, USPS-T-14
see Witness Degan, USPS-T-12.
In Segments
6 and 7, City Delivery Carriers, see Witness Nelson, USPS-T-9 and Witness Baron,
USPS-T-17.
In Segment 9, Special Delivery Messengers,
see Witness Nelson, USPS-
T-19.
In addition to the changes discussed by these other witnesses, there are
components that piggyback on the components
affected by the work of these other
Response of United States Postal Service Witness Alexslndrovich
to Interrogatories of
Office of the Consumer Advocate
witnesses.
For instance, the Motor Vehicle Service components
Carfare and Driveout components
in ljegment
in Segment 13 are piggybacked
Carrier costs in Segments 6 and 7. As such, these components
12 and the
on the City Delivery
in Segments 12 and 13
are affected by the changes made by the other witnesses mentioned earlier.
Furthermore, the components
listed in the 1300 and 1400 series are different because
they are not used in the FY 1996 CRA “A file” although they are needed in the Base
Year 1996 “A file” because they are Inputs to the rollforward
model.
Attachment I
OCAJUSPS-T5-14
Fiscal Year 1996 CRA
Comp
Amount
Number
(000’S)
FY 1996 Base Year
Comp
Amount
Number
(000’S)
Difference
BY-WA
CS 2 -- Supervisors:
Office
Elemental Load
Other Load
Access
Other
Route
Total
Office
Street
0013
0014
0015
0016
0017
001 a
0021
0025
0026
236376
68989
43761
145183
a1 922
110307
1907493
1593
7123
0013
0014
0015
0016
0017
0018
0021
0025
0026
22;!225
100329
0
123074
93435
147475
1302068
‘I507
7209
(14151)
31340
(43761)
(22109)
11513
37168
(685425)
(86)
86
CS 3 -- Clerks 8 Mailhandlers:
MP Fixed
Mail Proc Direct Labor
Overhead
MP &Window
Window Service
Admin Other
Claims 8 Inquiry
Specific Fixed
T&A
Total
Data Collection
Gen’l Office 8 Clerical
QC
Tmg Schemes
Trng MP - NonParcels
Trng MP - Parcels
Trng Other
Unadj Mail Processing
Premiums Deduc Key
Premiums Deduction
Window Service Total
0022
0035
0036
0039
0040
0041
0066
0227
0228
0253
0421
0422
0423
0467
0468
0469
0470
0546
0547
0661
0802
551786
9055540
2848067
14468596
2013205
262210
47370
a2089
286981
16456091
99351
1017399
43171
7339
26157
614
ii4812
9055540
a907483
-511836
2013205
0022
0035
0036
0039
0040
0041
0066
0227
0228
0253
0421
0422
0423
0467
0468
0469
0470
0546
0547
0661
0802
0
13247412
0
15154031
1906619
26a6aa
31~828
10669
207830
16456099
80835
555181
2!3032
$4190
i ;a858
407
a’7550
1324’7412
99813633
-424652
1906619
(551786)
4191 a72
(2848067)
685433
(106586)
6478
(8542)
(71420)
(79151)
CS 4 -- CAG K Clerks
Total
0042
0254
9311
9311
0042
0254
‘9333
9333
22
22
CS 6 8 7 -- City Caniers:
Office-Direct Labor
Office-Suppori
Elemental Load
Other Load
Access
Other Office
Other Elemental Load
0043
0044
0046
0047
0048
0049
0050
3124403
575832
1151721
730559
2423713
461402
159073
0043
0044
0046
0047
0048
0049
0050
3111448
598405
1674915
0
2054620
539933
266742
(12955)
22573
523194
(730559)
(369093)
78531
107669
Page 1 of 4
(ia5ii)
(46221 a)
(14139)
(3149)
(7299)
(207)
(27262)
4191872
1079150
a71 a4
(106586)
Attachment I
OCAIUSPS-T5-14
Fiscal Year 1996 CRA
Amount
Number
(000’S)
Other Other Load
Other Access
Other Route
Route
Total CS 6
Total CS 7
Sum Other V V/Overhd
Veh Prep, Key Handling
Total Other Load
CS 9 -- Sp Del Messengers
Office
Street
Total Salaries
Total
CS 12 -- Motor Vehicle Service
Personnel
Office
Elemental Load
Other Load
Access
Route
S&M
Office
Elemental Load
Other Load
Access
Route
Vehicel Hire
Office
Elemental Load
Other Load
Access
Route
CS 13 -- Misc. Expenses
Carfare
Office
Elemental Load
Other Load
Access
Route
Driveout
Office
Elemental Load
FY 1996 Base Year
Comp
Amo;;;iNumber
(000’S)
Difference
BY-CR4
0051
0052
0053
0054
0256
0257
0522
0604
0692
116830
366895
261427
1841490
3946362
7515110
1367627
245848
730559
0051
0052
0053
0054
0256
0257
0522
0604
0692
0
344783
406370
2469980
3710132
7751343
1559828
0
0
(118830)
(22112)
146943
620490
(236230)
236233
192201
(245646)
(730559)
0058
0059
0061
0259
19308
66317
105631
0058
0059
0061
0259
16265
67364
1O!j629
1O!j635
(1043)
1047
4
4
0062
0063
0084
0085
0086
5895
2050
1163
100799
87236
0082
0083
0064
0065
0066
16527
7368
0
7!5326
97922
10632
5318
(1163)
(25473)
10666
0091
0092
0093
0094
0095
6467
2249
1276
110579
95700
0091
0092
0093
0094
0095
113131
i3083
0
812635
10’7422
11664
5834
(1276)
(27944)
11722
0100
0101
0102
0103
0104
8188
2560
1707
6148
4618
0100
0101
0102
0103
0104
;9178
.3668
0
5153
6422
(10)
1108
(1707)
(995)
1604
0127
0128
0129
0130
0131
2338
1216
693
1199
535
0127
0128
0129
0130
0131
2306
1842
0
1046
783
(30)
626
(693)
(151)
248
0136
0137
2055
1069
0136
0137
2031
1619
(24)
550
Page 2 of 4
Attachment
OCMJSPS-T5-14
Fiscal Year 1996 CRA
Coma
Amount
Number
(000’S)
Other Load
Access
Route
FY 1996 Base Year
Coma
Amount
Number
(000’S)
Difference
BY-CRA
0130
0139
0140
610
1054
471
0138
0139
0140
0
921
688
(610)
(133)
217
CS 16 -- Supplies and Service
Printing B Repro
Stamps 8 Dispensers
St Env 8 St Cards
0179
0180
0248
52120
194481
3158
0179
0180
0248
46350
191201
12208
(5770)
(3280)
9050
CS 20 -- Vehicle Depreciation
Office
Elemental Load
Other Load
Access
Route
Total CDC
Adjstd Vehicle Deprc.
Total Depreciation
0221
0222
0223
0224
0225
0226
0231
0078
4175
1452
824
71392
61786
139629
172203
1332784
0221
0222
0223
0224
0225
0226
0231
0078
11705
5218
0
53350
69354
139627
1712201
1332:782
7530
3766
(824)
(18042)
7568
(2)
(2)
(2)
Total Accrued Costs
Distnbution
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
Keys:
HL & Adm Clerks
QC
All non Tmg -CS 3
Gen Supv:Del 8 Coil
CS 9 Salaries
EBLR, T B A
RAL. HOL, CSR. WC
Night Pre nonPlatform
Sp Purpose Rtes
Veh Prep, Key Handling
CDC In-Office
97 / 98 DPS
Sun Pre Platfon
Sun Pre Platform
Sun Pre nonPlatform
Night Pre Platform
Sun Pre nonPlatform
Night Pre nonPlatform
Night Pre Platform
Supv CllMH
Space and Rental
OCR
Sorting to Letter Cases
Platfon
0271
54976562
0271
549758597
35
0294
0295
0473
0523
0524
0525
0526
0544
0578
0605
0606
0609
0654
0655
0659
0660
0662
0663
0664
0694
33845007
12537482
15002789
13474398
105625
30525017
39802936
2376865
255625
11215345
3946083
0
1452
979
66111
52865
128162
375189
7033
26612904
0294
0295
0473
0523
0524
0525
0526
0544
0578
0605
0606
0609
0654
0655
0659
0660
0662
0663
0664
0694
3493e;199
i 325eio8i
155821083
13367815
1OJ629
386OSOO5
39802!973
2089261
263449
11461196
3709853
1000000
1135
790
., 57449
35800
105899
313076
4542
27154284
1093192
720599
579294
(106583)
4
79188
0913
0930
0943
145782
1705889
726006
0913
0930
0943
168316
170!5809
111000
Page 3 of 4
(2876::)
7824
245851
(236230)
1000000
(317)
(181)
(8662)
(17065)
(22263)
(62113)
(2491)
541380
22534
(8’3)
(716006)
I
T
Attachment I
OCAJUSPS-T5-14
Fiscal Year 1996 CRA
Comp
Number
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
DK
MPE Subtotal Key
Equipment Related
CFS
MP BCS
Delivery BCS
LSM
FSM
Parcel Sorting 8 NM0
Facer/Canceler Ltrr
Facer/Canceler Flats
Culling
Sack Sorting Machine
SPBS
RBCS
ACDCS
OCR
Power Transport Equip
Strapping
GEn & Log BMC
Gen 8 Log nonBMC
Car Seq BCS
FY97 Final Adj
FY98 Final Adj
FY97 Volume
TYBR Volume
TYAR Volume
FY96 Revenue
TYBR Revenue
TYAR Volume
Volume Mix Adjustment
Parcel Post Key
International Key
FY 1996 Base Year
Comp
Amount
Number
(000’s)
1258
1250
7674i:875
1307
1314
1315
1316
1317
1318
1319
1320
1321
1322
1323
1324
1326
1363
1364
1365
1366
1367
1371
1398
1399
1402
1403
1404
1412
1413
1414
1417
1418
1419
1307
1314
1315
1316
1317
1318
1319
1320
1321
1322
1323
1324
1326
1363
1364
1365
1366
1367
1371
139.8
1399
1402
1403
1404
1412
1413
1414
1417
1418
1419
19?630
2468479
105,573
54c1955
43ei220
96069
85i249
3Cl298
21948
221827
184.986
36072
9780
214142
24896
1Cl259
313025
7372!047
31007
24509
-136628
1.91 E1+08
1.97E1+08
1.95E+08
57962499
594163627
6164fi889
-77452
1
1
Page 4 of 4
Difference
BY-WA
76742875
193630
246479
185573
540955
438220
96069
85249
30298
21948
23027
184986
36072
9780
214142
24896
18259
313025
7372047
31007
24509
(138628)
190711617
196802962
195440559
57962499
59416627
61646889
(77452)
1
1
DECLARATION
I, Joe Alexandrovich,
declare under penalty of perjury that the foregoing
answers are true and correct, to the best of my knowledge, information, and belief:
Dated: q
11
97
CERTIFICATE
OF SERVICE
I hereby certify that I have this day served the foregoing document upon all
participants of record in this proceeding in accordance with sectiorl 12 of the Rules
of Practice.
!QL/ h+YaA==
Susan M. Duchek
475 L’Enfant Plaza West, S.W.
Washington, D.C. 20260-I 137
(202) 268-2990; Fax -5402
September 11, 1997
_---.--
-~~~~~
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