REr;WED
BEFORE THE
POSTAL RATE COMMISSION
WASHINGTON, D.C. 20268-0001
SEP 19
5 22 Pii
‘97
POSTAL RATE COHHISSICI~
OFFICE OFTHE SECRETARY
I
POSTAL
RATE
AND
FEE CHANGES, 1997
Docket No. R97-1
~
SECOND REVISED RESPONSE OF UNITED STATES POSTAL SERVICE WITNESS
PATELUNAS TO INTERROGATORY
OF THE OFFICE OF THE CONSUMER
ADVOCATE REDIRECTED FROM WITNESS LION
(OCAIUSPS-T24-25)
The United States Postal Service hereby provides the second revised
response of witness Patelunas to the following interrogatory
Consumer
Advocate:
witness Lion.
OCAIUSPS-T24-25,
of the Office of the
filed on July 25, 1997, and redirected
The original response was filed on August 8, 1997 and the initial
revised response
was filed on August 20, 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
Lhd2-44
Susan M. Duchek
475 L’Enfant Plaza West, S.W.
Washington, D.C. 20260-I 137
(202) 268-2990; Fax -5402
September 19, 1997
from
Response of United States Postal Service Witness Patelunas
to Interrogatories of
Office of Consumer Advocate
(Redirected from Witness Lion, USPS-T24)
Revised
g/19/97
OCAIUSPS-T24-25.
Please refer to your testimony at page 20, line 7, and the
following table, which shows the development of attributable costs for the “All Other’
category.
DETAIL FOR “ALL OTHER” CATEGORY
TYBR 98
COST SEGMENT
ACCRUED COSTS
(51,000)
[II
c/s 1
c/s 2
c/s 3
c/s 4
C/S 6&7
C/S 8
c/s 9
c/s 10
CIS 11
c/s 12
c/s 13
c/s 14
c/s15
C/S 16
c/s 17
c/s 18
c/s 19
c/s 20
SUBTOTAL
TOTAL
ALL CIS
ATTRIBUTABLE
TO PO BOXES
(51,000)
PI
1,714,555
$3,514,728
$17,707,467
$10,053
511,987,730
$452,791
$115,083
$3,730,577
$1,065,756
5648,559
$291,673
$4,364,702
$423,682
$2,121,647
$57,201
$4,235,424
$38,973
$3,211.638
5553692,237
II
11
ll
ll
II
11
21
21
31
2l
21
21
41
51
61
71
91
101
$60,766,222
121
NOTES AND SOURCES
II
USPS-T-15. WP E. Table D, at 2.
21
USPS-T-15. WP E. Table D, at 4.
31
USPS-T-15. WP E. Table D, at 36.
USPS-T-l 5. WP E. Table D, at 48.
41
$2,121,647 = $3,529,646 - $1,407,999
51
15, WP E Table D, at 52 & 54.
USPS-T-l 5. WP E, Table D, at 6.
61
$3,183
57,531
$71,527
50
$353
50
50
50
50
50
50
50
50
50
50
$14,550
USPS-T-
II
11
II
ll
61
Response of United States POStal SeiCe Witness PatehaS
to Interrogatories of
Office of Consumer Advocate
(Redirected from Witness Lion, USPS-T24)
OCAIUSPS-T24-25
Revised
g/19/97
continued:
71
at
91
101
111
121
$4,235,424 = $4,595,701 - 5360,277 USPS-T-15, WP
E, Table D, at 56 & 64.
514,550= $21,804 - $7,254 USPS-T-15, WP E
Table D, at 56 & 64.
USPS-T-15, WP E, Table D, at B.
$3,211,638 = $4,155,532 -($581,680 + $362,214)
USPS-T-15, WP E, Table C, at 32, and Table D, at 66 & 68.
USPS-T-15, WP E, Table C, at 32.
USPS-T-l 5, WP E, Table D, at 8.
Please confirm that the figures in column [I] are correct. If you do not confirm,
a.
please explain and provide the correct figures. Please show all calculations and
provide citations to any figures used.
b.
Please confirm that the figures in column [2] are correct. If you do not confirm,
please explain and provide the correct figures. Please show all calculations and
provide citations to any figures used.
Please refer to the “Notes and Sources.” Please confirm that the citations, and
C.
calculation of figures based upon those citations, in the “Notes and Sources”
accompanying the table above are correct. If you do not confirm, please explain and
provide the correct citations and figures. Please show all calculations and provide
citations to any figures used.
OCAIUSPS-T24-25
Response:
a.
Part a is confirmed
b.
Part b is not confirmed.
responded.
accompanied
I interpreted
I misunderstood
the question when I originally
the question as asking me to confirm that the amounts
by a footnote could be found on the paged cited in the “Notes and
Sources” section and that is what I did. I should have verified that not only could the
amounts be found on the cited pages, but also that these were indeed the correct
amounts of Post Office Box volume variable costs. There are two amounts in column
[2] that are not correct amounts to use in this calculation:
C/S 20 should be $7,432.
C/S 12 should be $3 and
As such, these two amounts are not confirmed
Response of United States Postal Service Witness Patelunas
to Interrogatories of
Office of Consumer Advocate
(Redirected from Witness Lion, USPS-T24)
OCNUSPS-T24-25
Revised
9119197
Response continued:
In an effort to clarify the confusion this has caused, I am providing Attachment
to this response.
Attachment
I shows the detail and sources of the underlying
I
Space
Provision, Space Support and All Other costs for Test Year 1998 for both Before Rates
and Afler Rates.
Using the three categories
as defined by Witness Lion, USPS-T-24,
page 1 displays the detail for the Space Support and Space Provision categories,
page 2 displays the detail for the All Other category for Before Rates and page 3
displays the detail for the All Other category for After Rates.
C.
Part c is confirmed.
Attachment I
OCMJSPS-TX-25
(Redirected from Witness Lion)
Revised 9/l 9197
TY98
DEYELOPMENT OF TY99 ACCRUED AND VOLUME
VARIABLE COSTS FOR SPACE SUPPORT, SPACE
PROVISION AND ALL OTHER COST CATEGORIES FOR POST
OFFICE BOXES
ICA;$;RY
i
SPACE
SUPPORT
COST SEGMENT AND COMPONENT
SPACE
PROVISION
i
/
;
j
-__ TOTAL
1
I
C,S 11.1.1 CLEANING &PROTECTION
[
;
C,S 11.1.2 CONTRACT CLEANERS
i C,S 11.3 PLANT & WILDING EQUIP
MAINT
/ C,S 15.2 B”,LD,NG OCCUPANCY, FUEL
8 UTILITIES
i C,S 18.3.1 CUSTODIAL ., BUILDING
j
CIS 19.1.2 POSTAL INSPECTION
L...
SERV!!?
TOTAL SPACE SUPPORT
C,S 18.1 BUILDING OCCUPANCY,
RENTS
C,S 19.2.8 (FY94) CIS 20.5 (FY98)
,NTEREST EXPENSE - q LDG &
LEASEHOLD (COMPONENT 215) 41
CIS 20.3 BLDG & LEASEHOLD
DEPRECIA--”
-r,-.TAI CDAPE c
.- .._..__ -...- .._.
-. .
TYBR99 ACCRUED AND VOLUME VARIABLE COSTS I/
j VOLUME VARIABLE TO
TOTAL ACCRUED ($1,000)
1
POST OFFICE BOXES
($1,000)
TYAR99 ACCRUED AND VOLUME VARIABLE COSTS 21
/ VOLVME VARIABLE TO
TOTAL ACCRUED (Sl,OOO)
POST OFFICE BOXES
($1.0001
1
j
;
$902.085 !
$83,401 ;
$70,977
$4.728
5802.086
s53,401
S70,898 i
s4.707 i
$389,348 \
$34,454
$399,348
S34.318 ;
$428,502 i
$1,407,999 1
$37,919
$124.698
S428.602
s1.407.999
137,789 i
Sl24.105 j
I560!21
4!!??6,1
S3,441,690
$278,821 i
I
$888.501 j
s111,399
s889.501
s111.071 /
S382,214 ;
s17,712
S308,214
$14.930 i
$881,880 ;
$1,832.395 :
S86.892,237 i
;
s;23,
$10
s581,880
S1,678,396 1
$55,872,138 ]
S80,890,121 /
NOTES AND SOURCES
II USPS-T-15, Exh~blt E, for the cost segments (C/S) listed
21 USPS-T-15. Exhibit H. for the cost segments (C/S) listed
31 See Sheets “BR A0 Detail” and “AR A0 D&l” fnr development of All Other costs in the test year before rates and the test year after rates, respectively
4, USPST-15, WP E lor Belore Rates 0, WP G lor ARer Rates, Table C at 32
Page 1
S21!
s91,:
$899,JDJ
BR AODetail
DETAIL FOR “ALL OTHER”
l-‘fBR SE
COST
SEGMENT
TOTAL
ACCRUED
COSTS
(Si,OOO)
CIS 1
c/s 2
CIS 3
c/s 4
CIS 687
CIS 8
c/s 9
c/s 10
c/s 11
c/s 12
c/s 13
c/s 14
CIS 15
CIS 16
CIS 17
CIS 18
CIS 19
CIS 20
SUBTOTAL
$1,714.555
$3.514,726
$17,707.467
$10,053
$11.987.730
$452,791
$115,083
$3.730,577
$1,065.756
$648,559
$291,673
$4,364.702
$423,682
$2,121,647
$57,201
$4,235,424
$38,973
$3,211.638
$55,692.237
TOTAL
ALL C/S
Attachment I
OCAJUSPS-T24-25
(Redirected from Witness Lion)
Revised 9/l 9/97
CATEGORY
VOLUME
VARIABLE TO
PO BOXES
($1,000)
II
l/
II
1/
l/
II
2/
2l
31
2l
2l
2/
41
51
6/
71
9/
101
$3.103
$7,531
$71,527
$0
$353
$0
$0
$0
$0
$3
$0
$0
$0
$0
$0
$14,550
$0
$7.432
$104,579
II
-it
II
II
II
II
21
21
31
21
21
21
41
51
61
81
91
111
$60,766.222
NOTESANDSOURCES
l/
USPS-T-15, Exhibit E, at 2.
21
USPS-T-15, Exhibit E, at 4.
31
USPS-T-15, Exhibit E. at 36.
41
USPS-T-15, Exhibit E. at 48.
$2.121.647
USPS-T-15, Exhibit
51
USPS-T-15, Exhibit E, at 6.
61
71
$4,235,424
USPS-T-15, Exhibit
El/
$14,550
USPS-T-15, Exhibit
USPS-T-15, Exhibit E. at 8.
9/
$3.211,638
USPS-T-15, Exhibit
101
$7,432 USPS-T-15, Exhibit
ll/
Page 2
E, at 52 8 54.
E, at 56 & 64.
E, at 56 8 64.
E. at 66 8 68.
E, at 66 & 68.
AR AODetail
DETAIL FOR “ALL OTHER”
TYAR 98
CIS 1
CIS
CIS
CIS
C/S
CIS
2
3
4
687
8
c/s 9
SUBTOTAL
VOLUME
VARIABLE TO
PO BOXES
(s1.000)
$1.712,615
II
$3,517,945
$17.759.605
$10,073
$11.960.532
II
I/
1/
1/
$440.972
l/
$114,111
$3.721.604
CIS 10
c/s11
CIS 12
CIS 13
CIS 14
CIS 15
CIS 16
CIS 17
CIS 16
CIS 19
CIS 20
TOTAL
CATEGORY
TOTAL
ACCRUED
COSTS
($1,000)
COST
SEGMENT
2/
21
$1,070,905
3/
$647,994
$291,625
$4,326,522
$423.602
$2,123,396
$57,201
$4,235,424
$30,973
21
2/
21
41
51
61
71
91
$3.210.957
101
$55,672.136
ALL C/S
Attachment I
OCAJUSPS-T24-25
(Redirected from Witness Lion)
Revised 9/l 9197
$2.721
$6,465
$61,217
It
l/
I/
$0 l/
$302
$0
$0
$0
$0
$3
$0
$0
$0
$0
$0
$13,625
$0
I/
11
21
z
31
21
21
21
41
51
61
01
91
$6,960
$91,293
111
$60.690.121
NOTES AND SOURCES
II
USPS-T-15, Exhibit H, at 2.
2l
USPS-T-15, Exhibit H. at 4.
3/
USPS-T-15, Exhibit H, at 36.
USPS-T-15, Exhibit H. at 48.
4/
USPS-T-15, Exhibit
51
$2.123.396
6/
USPS-T-15, Exhibit H, at 6.
$4.235,424
USPS-T-15, Exhibit
7/
a/
$13,625
USPS-T-15, Exhibit
9/
USPS-T-15. Exhibit H. at 6.
$3,210,957
USPS-T-15, Exhibit
101
Ill
$6,960 USPS-T-15, Exhibit
Page 3
H. at 52 B 54.
H. at 56 8 64.
H. at 56 B 64.
H. at 66 8 68.
H, at 66 8 68.
DECLARATION
I, Rictiard Patelunas, declare under penalty of perjury that the foregoing answers to
interrogatories are true and correct to the best of my knowledge, information, and
belief.
Dated:
$?h
7
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 section 12 of the Rules of
Practice.
P-7./&4+Susan M. Duchek
475 L’Enfant Plaza West, S.W.
Washington, D.C. 20260-I 137
(202) 266-2990; Fax -5402
September 19, 1997