RECEIVE.D
DQCKET SECTBBN
BEFORE THE
POSTAL RATE COMMISSION
WASHINGTON, D.C. 20268-0001
POSTAL
RATE
AND
FEE CHANGES, 1997
OCT /
4 52 PM ‘97
P0STb.L
RATECOHHISsICH
OFFICE OFlklE SECRETARY
Docket No. R97-1
~
RESPONSE OF UNITED STATES POSTAL SERVICE
WITNESS DEGEN TO INTERROGATORIES
OF
UNITED PARCEL SERVICE
(UPS/USPS-T12-l-8)
The United States Postal Service hereby provides responses of witness Degen to
the following interrogatories
September
of United Parcel Service:
UPS/USPS-T12-l-8,
filed on
17, 1997.
Each 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
g
:r,t.,
Eric P. Koetting
475 L’Enfant Plaza West, S.W.
Washington, D.C. 20260-I 137
(202) 268-2992; Fax -5402
October 1, 1997
[ \
Response of United States Postal Service Witness
to Interrogatories
of United Parcel Service
Degen
UPS/USPS-T1 2-l. Please refer to Table 4 on page 15 of your direct
testimony and provide the exact source in USPS-T-14, Table 1, or derivation
from sources in USPS-T-14, Table 1, or any other source(s) if necessary, for
each of the variabilities in Table 4.
UPS/USPS-T1 2-1 Response.
Attachment
1 to this response provides the requested
information.
-
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Response of United States Postal Service Witness
to Interrogatories
of United Parcel Service
Degen
UPS/USPS-T1 2-2. Please confirm that changing the variable “VARB” in the
SAS program MOD4DIST.SAS
in LPI-H-218 to equal 1 .OO for each of the
values of the variable “POOL” will result in 100 percent volume variable
costs for MODS cost pools. If not confirmed, please explain.
UPS/USPS-T1 2-2 Response.
Confirmed
Response of United States Postal Service Witness
to Interrogatories
of United Parcel Service
Degen
UPS/USPS-T1 2-3. Please confirm that changing the variable “VARB” in the
SAS program MOD4DIST.SAS
in LR-H-218 to equal X.Xx for each of the
values of the variable “POOL” will result in X.Xx percent volume variable
costs for MODS cost pools. If not confirmed, please explain.
UPS/USPS-T1 2-3 Response.
Not confirmed.
lOOX.XX
If the VARB variable is set to X.Xx,
percent.
the variability
factor is
Response of United States Postal Service Witness
to Interrogatories of United Parcel Service
Degen
UPS/USPS-T1 2-4. Please confirm that changing the variable “VARB” in the
SAS program BMC4.SAS in LR-H-218 to equal 1 .OO for each of the values
of the variable.“POOL”
will result in 100 percent volume variable costs for
BMC cost pools. If not confirmed, please explain.
UPS/USPS-T1 2-4 Response.
Confirmed.
Response of United States Postal Service Witness
to Interrogatories
of United Parcel Service
Degen
UPS/USPS-T1 2-5. Please confirm that changing the variable “VARB” in the
SAS program BMC4.SAS in LR-H-218 to equal X.Xx for each of the values
of the variable “POOL” will result in X.Xx percent volume variable costs for
BMC cost pools. If not confirmed, please explain.
UPS/USPS-T1 2-5 Response.
Not confirmed.
Please see my response to UPS/USPS-T1 2-3 for an
explanation.
Response of United States Postal Service Witness
to Interrogatories
of United Parcel Service
Degen
UPS/USPS-T1 2-6. Please confirm that changing the line “VCOST =
DOLLAR*GFY*.786”
to “VCOSTS = DOLLAR*GFY”
in the SAS program
NONMOD4,SAS
in LR-H-218 will result in 100 percent volume variable costs
for non-MODS cost pools. If not confirmed, please explain.
UPS/USPS-T1 2-6 Response.
Confirmed.
,
Response of United States Postal Service Witness
to Interrogatories
of United Parcel Service
Degen
UPS/USPS-T1 2-7. Please confirm that changing the line “VCOSTS =
DOLLAR*GFY*.786”
to ‘VCOSTS = DOLLAR*GFY*X.XX”
in the SAS
program NONMOD4.SAS
in LR-H-218 will result in X.Xx percent volume
variable costs for non-MODS cost pools. If not confirmed, please explain.
UPS/USPS-T1 2-7 Response.
Not confirmed.
explanation.
Please see my response to UPS/USPS-T1 2-3 for an
Response of United States Postal Service Witness
to Interrogatories
of United Parcel Service
Degen
UPS/USPS-T1 2-8. Are there BMCs that operate using MODS operation
codes rather than PIRS operation codes? If your answer is other than an
unqualified noi~ please indicate how these facilities are handled in LR-H146/LR-H-218.
UPS/USPS-T1 2-8 Response.
It is my understanding
that some BMCs “borrow”
to classify certain activities
amounts
and associated
recorded
in IOCS questions
designed to correspond
MODS operation
numbers
in PIRS. Please note that the BMC cost pool
tally sets are based on the sampled activities
18 and 19 (but not question
to the BMC operation
Bradley’s
variability
analysis.
question
would not affect the programs
18a), which are
groups defined for witness
As a result, the situation
stated in the
in LR-H-146/LR-H-218.
I, Carl G. Degen, declare under penalty of perjury that the foregoing
answers are true and correct to the best of my knowledge, information, and
belief.
/
/
CERTIFICATE
OF SERVICE
I hereby certify that I have this day served the foregoing document
participants
of record in this proceeding
Practice.
475 L’Enfant Plaza West, S.W.
Washington, D.C. 20260-l 137
October 1, 1997
in accordance
upon all
with section 12 of the Rules of