LJOWET SECTION
BEFORE THE
POSTAL RATE COMMISSION
WASHINGTON, D.C. 20268-0001
RECEI~E!I
h
20
4 34
P#‘97
P3STAl i:,i?i~ ci,,+
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OFFICE Oil ii:[ s~szbr,b~y
POSTAL RATE
AND FEE CHANGES, 1997
Docket No. R97-1
[
1
RESPONSE OF UNITED STATES POSTAL SERVICE TO INTERROGATORY
OF
MCGRAW-HILL COMPANIES REDIRECTED FROM WITNESS ALEXANDROVICH
(MHIUSPS-T5-1)
The United States Postal Service hereby provides a response to the following
interrogatory
of McGraw-Hill
Companies:
MH/USPS-T5-1,
1997, and redirected from witness Alexandrovich.
of an objection filed on September
The interrogatory
filed on September
The interrogatory
17,
was the subject
29, 1997,
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
Susan M. Duchek
476 L’Enfant Plaza West, S.W.
Washington, D.C. 20260-l 137
(202) 268-2990; Fax -5402
October 20, 1997
,
-
Irlmmlmv
,/
Response of United States Postal Service
to Interrogatories of
McGraw-Hill Companies,
(Redirected from Witness Alexandrovich, USPS-T-5)
MHIUSPS-15-l:
Please confirm that the volume variable costs calculated for Periodicals mail in
this proceeding are higher than the attributable costs calculated for Periodicals mail
(pursuant to section 54(a)(l) of the Commission’s rules of practice) in this proceeding.
See, e.g., Attachment A (attached hereto) to the Motion of the United States Postal
Service for Reconsideration of Parts of Presiding Officer’s Ruling No. R97-l/7 (August
15, 1997). ‘To the extent that you are unable to confirm, please explain fully.
(4
Plea:se explain fully (with appropriate cross-references to USPS-LR-H-196 and
(b)
215, and to any other relevant materials) each of the factors which cause the volume
variable costs calculated for Periodicals Regular mail to be higher than the attributable
costs calcul,ated for Periodicals Regular mail.
MHIUSPS-T5-1
Response:
(4
Part (a) is confirmed
(b)
To understand fully each of the factors which cause the volume variable cost
calculated for Periodicals
Regular mail to be higher than the attributable
calculated for Periodicals
Regular mail, begin with a comparison
Alexandrovich’s
workpapers,
Section 4 of Library Reference
response.
Attachment
WP-B, and the Commission’s
in Periodicals
Postal Service’s cost model and the Commission’s
workpapers
Postal SenJice’s cost model. See the testimonies
I to this
cost model on a component
of Witnesses
cost model.
by
numbers used in the
Alexandrovich,
USPS-
USPS-T-l 5. Columns (3) (8) and (13) are the component
used in the Commission’s
and H-215 (revised).
provided in
Regular mail between the
componeni: basis. Columns (I), (6) and (11) are the component
T-5 and Patelunas,
of Witness
Next refer to Attachment
H-l 96 (revised).
I shows the differences
costs
See USPS Library References
numbers
H-196 (revised)
Section 12 of USPS Library Reference H-196 shows:
an
Response of United States Postal Service
to Interrogatories of
McGraw-Hill Companies
(Redirected from Witness Alexandrovich, USPS-T-5)
MH/USPS-T91
arrangement
Response continued:
by cost segment, a descriptive title for each of the components
cross-walk between the Postal Service’s component
component numbers.
Additionally,
and a
numbers and the Commission’s
the last column of USPS-LR-H-196,
Section 12
shows that either there is no difference between the Postal Service’s model and the
Commission’s
model or that there is a difference, and where there is a difference,
reason for the difference
Attachment
the
is provided.
I shows the Postal Service’s Base Year 1996 variable costs less
PESSA costs in column (2) and the Postal Service’s Base Year 1996 volume variable
costs including PESSA column (7). Likewise, the Commission’s
attributable
Base Year 1996
costs less PESSA costs appear in column (4) and the Commission’s
Year 1996 attributable
Base
costs including PESSA appear in column (9). For Test Year
1998 After Rates, the Postal Service’s variable costs including PESSA appear in
column (12) and the Commission’s
attributable
costs including PESSA appear in
column (14). The amounts shown in columns (5) (10) and (15) are the differences
between the Postal Service’s model and the Commission’s
model for each of the years
indicated.
Attachment
I is a comparison
of the output of the two models.
To understand
differences between the Postal Service’s cost model and the Commission’s
please refer to the following.
cost model,
The Postal Service’s cost model is documented
in:
Docket No. R94-I, USPS Library Reference G-5, Costs and Revenue/Roll
Forward,
Listings of Programs, Job Control Language, and Command Procedures,
and Docket
No. R97-1, USPS Library References
H4, Base Year/Roll
Forward, Input Data Files,
and H-5, Base Year/Roll Forward, Processing Documentation
Attachment
reports.
I and II to Witness Patelunas’s response to OCAIUSPS-T53,
the
Additionally,
redirected
Response of United States Postal Service
to Interrogatories of
McGraw-Hill Companies
(Redirected from Witness Alexandrovich, USPS-T-5)
MHIUSPS-E-1
Response continued:
from Witness Alexandrovich
documented
215 (revised).
might be helpful.
The Commission’s
in Docket No. R97-1, USPS Library References
cost model is
H-l 96 (revised) and H-
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-2CERTIFICATE
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.
&2&4LJ--
Susan M. Duchek
475 L’Enfant Plaza West, SW.
Washington, D.C. 20260-l 137
(202) 268.-2990; Fax -5402
October 20, 1997