RECEIVED
POSfAL kA'Si' ~;i:!,;~:;;S,tt~
OFFICE OF THE St!C!lETAiy
BEFORETHE
POSTAL RATE COMMISSION
WASHINGTON, D.C. 20268-0001
POSTALRATEANDFEE CHANGES, 2000
I
Docket No. R2000-1
RESPONSE OF UNITED STATES POSTAL SERVICE
WITNESS DANIEL TO INTERROGATORIES OF ADVO, INC.
(ADVOIUSPS-T28-8-11)
The United States Postal Service hereby provides the responses of witness Daniel
to the following interrogatories of the Advo, Inc.: ADVOIUSPS-T28-8-11,
filed on March
22,200o.
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
Anthony Alvernhj
Attorney
475 L’Enfant Plaza West, S.W.
Washington, D.C. 20260-I 137
(202) 268-2997; Fax -6187
April 5, 2000
RESPONSE OF UNITED STATES POSTAL SERVICE WITNESS DANIEL TO
INTERROGATORIES OF ADVO, INC.
ADVOIUSPS-T28-8. In LR-92. Spreadsheet LR92bECR.xls Worksheet “ECR all (detailed),”
you present a graph of ECR unit costs by ounce increment. That graph, with the scale
adjusted for better viewing, is copied from your spreadsheet below:
$0.70
-
$0.60
_
60.50
-
$0.40
-
4
y=O.O192x+O.O126
I
$-
•l
0.0
1.0 2.0
3.0 4.0
5.0 6.0
7.0 8.0 9.0 IO.0 11.0 12.0 13.0 14.0 15.0 16.0
With respect to this graph, please respond to the following:
(4 Please confirm that this graph accurately represents the graph shown in your
referenced worksheet, with the x and y axes adjusted for better viewing. If you
cannot confirm. please provide what you believe to be the correct graph, in
approximately the same scale as shown above.
(b) Please confirm that the straight line on this graph represents your simple unweighted
straight-line regression of the data points, shown by the equation y = 0.0192x +
0.0126.
(cl Please confirm that below 2 ounces,
There are 4 actual unit cost data points shown;
0)
(ii)
All 4 of the actual unit cost data points lie above the line that represents the
equation.
(iii)
The percentage difference between the actual and formula unit costs is
progressively greater for the lightest weight increments, i.e., in the O-5 ounce
increment the actual unit cost is more than 3 times or 200% greater than the
formula unit cost, whereas in the 152.0 ounce increment the actual unit cost
is more than 40% greater than the formula unit cost.
(4 Please confirm that above 4 ounces,
There are 12 actual unit cost data points shown.
0)
RESPONSE OF UNITED STATES POSTAL SERVICE WITNESS DANIEL TO
INTERROGATORIES OF ADVO, INC.
Nine of the 12 actual unit cost data points lie below the line that represents the
equation, and 8 of those 9 are more than 20% lower than the formula unit
cost.
(iii)
Two of the 12 actual unit cost data points lie approximately on the line that
represents the equation.
(iv)
Only one of the 12 unit cost data points -- for the last 15-16 ounce increment lies above the line that represents the equation.
(e)
With respect to the last 15-16 ounce increment, please confirm that:
The unit cost for the last 15-16 ounce increment is 2.3 times (or 130%) greater
0)
than the unit cost for the 14-15 ounce increment.
(ii)
The volume in the last 15-16 ounce increment constitutes less than 0.04%
(four ten-thousandths) of total ECR volume.
(iii)
In developing the equation shown on the graph, the unit cost for this last
weight increment was given equal weight with the unit costs for all other weigh
increments.
If you cannot confirm any of the above, please provide the figures you believe to be correct
and indicate your source and derivation.
(ii)
RESPONSE:
Confirmed.
a.
Confirmed.
b.
Confirmed.
C.
0)
Confirmed.
(ii)
Confirmed.
Confirmed.
d.
II?
Not confirmed. There are actually 10 unit cost data points technically below
(ii)
the line that represents the equation. Confirmed that 8 are more than 20
percent lower than the formula.
(iii)
Confirmed. One is technically slightly below the line and one is slightly above
the line.
Confirmed.
(iv)
Confirmed. The precise figure is actually 131.6%.
e.
0)
(ii)
Confirmed
Confirmed.
(iii)
RESPONSE OF UNITED STATES POSTAL SERVICE WITNESS DANIEL TO
INTERROGATORIES OF ADVO, INC.
ADVOIUSPS-T28-9. Please refer to the table below, which is based on the ECR unit cost
data by ounce increment contained in your LR-92, Worksheet LR92bECR.xls:
Weight
ncremenl
Ave.
vt. (oz. ) Jnit Cost Formula
0 to .5
.33
.5 to 1.o
0.73
1.o to 1.5 1.28
1.5 to 2
1.78
2 to 2.5
2.30
2.5 to 3
2.81
3 to 3.5
3.29
3.5 to 4
3.85
4 to 5
4.56
5 to 6
5.53
6 to 7
6.59
7 to 8
7.61
8 to 9
8.67
9to10
9.67
10t011
10.68
11to12
11.78
12to13
12.80
13 to 14 13.77
14to15
14.91
15 to 16+ 15.69
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
0.058
0.072
0.076
0.068
0.062
0.069
0.084
0.103
0.072
0.085
0.094
0.114
0.132
0.198
0.141
0.244
0.181
0.200
0.260
0.601
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
0.019
0.027
0.037
0.047
0.057
0.066
0.076
0.086
0.100
0.119
0.139
0.159
0.179
0.198
0.218
0.239
0.258
0.277
0.299
0.314
Unit Cost - 1Jnit Cost,
Formula
Formula
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
0.040
0.045
0.039
0.021
0.005
0.003
0.008
0.016
(0.028)
(0.034)
(0.045)
(0.045)
(0.047)
(0.000)
(0.076)
0.005
(0.077)
(0.077)
(0.039)
0.287
209%
168%
105%
44%
8%
4%
11%
19%
-28%
-28%
-32%
-28%
-26%
0%
-35%
2%
-30%
-28%
-13%
92%
With respect to this table and your Worksheet LR92bECR.xls please confirm the following:
(a)
The average weights per piece (total weight in ounces + total volume) and the unit
costs by ounce increment shown above accurately reflect the data in Worksheet
LR92bECR.xls.
(b)
The costs in the “Formula” column, derived from the equation y = 0.0192x + 0.0126
shown in your worksheet (where x = the average weight by ounce increment shown
in column 2 above), accurately reflect the “predicted” or “formula” unit costs derived
from your equation.
Cc) The values in “Unit Cost - Formula” column accurately represent the differences
between the actual unit costs in your worksheet and the “predicted” or “formula” unit
costs derived from your equation.
(d)
The values in “Unit Cost + Formula” column accurately represent the percentage
differences between the actual unit costs in your worksheet and the “predicted” or
“formula” unit costs derived from your equation.
RESPONSE:
a-d. Confirmed
RESPONSE OF UNITED STATES POSTAL SERVICE WITNESS DANIEL TO
INTERROGATORIES OF ADVO, INC.
ADVOIUSPS-T28-10. Please provide, in a format similar to that presented in your
Worksheet LR92bECR.xls adjusted attributable costs, mail volumes, and unit costs
separately for (i) ECR total and (ii) ECR flats, after adjustment for worksharing
characteristics. Please explain and provide your derivations.
RESPONSE:
Attached are replications of pages 17-l 9 of Section 2, USPS LR-I-92 showing ECR flats
unit costs adjusted for worksharing. The adjustments were calculated in the same manner
as the Periodicals worksharing adjustments calculated in USPS LR-I-94 and shown in Table
4a and 4b on pages 19a and 19b of USPS-T-28. The volumes and pounds by rate
category and weight increment were provided in USPS LR-I-225 in response to
interrogatory ANMIUSPS-T28-8(c) and are also attached to this response.
The “presort cost avoidance” by weight increment is calculated by summing the product of
the percentages of pieces by presotidensity rate category and the sum of the mail
processing and delivery cost differences of each presortldensity rate category from the sum
of ECR Basic mail processing and delivery costs summarized in Table 7 on page 29 of
USPS T-28. The “difference from average “ is calculated by subtracting the “presort cost
avoidance” by weight increment from the average “presort cost avoidance.”
The “average dropship cost avoidance” is calculated by summing the product of the number
of pounds in each weight increment by presort/density rate category and the nontransportation-related savings calculated in Attachment C Table 1 of witness Crum’s
testimony (USPS-T-27) and, then dividing that sum by the number of pieces in each weight
increment. The “difference from average “ is calculated by subtracting the “average
dropship cost avoidance” by weight increment from the average “average dropship cost
avoidance.” Non-transportation related dropship savings are used because transportation
costs have been allocated to weight increment using a constant cost per pound (or cost per
cubic foot) which does not recognize differences by ounce increment due to dropshipping.
Total adjusted costs can be calculated in a similar manner by following the above steps for
letters and parcels.
0.02
2.00
,.M
B.M
Std. A ECR Flats Test Year Unit Costs Adjusted
a
:
55.349
1.430
56.231
11.269
5.945
for Worksharing
40.243
735
51.771
10.375
3.264
3;060
7,322
11.9x
1.388
23.001
25
1.126
546
160.763
0.076 5
0.001 s
0.077 s
32.150
18.183
6.096
52.620
110
4.945
2.397
252.499
0.066 a
0.004 s
0.070 s
40.065
2.029
44.168
8.655
6.488
7;959
73,223
24,364
13.663
75.419
251
11,263
5.459
315.446
0.066 $
0.005 5
0.063 5
5
(0.008, 5
(0.007, 5
5;574
by Combined
9.582
6.964
131.76?
39.537
24.982
85.133
4.52
20.257
9.624
487.072
0.079 5
(0.005, s
0.074 s
0.011
5
Weight Increments
16.039
711
16.588
3,324
3.157
2&o
63,376
15.667
12.016
28.047
217
9.748
4.725
176,574
0.087 s
(0.002) 5
0.085 5
0.011
5
(from 3CECR
9.475
200
6.964
1.396
667
631
24.103
5,967
4.570
7.878
83
3.707
1.797
67.858
0.119 s
w;,
;
5.512
53
2.609
523
236
222
8.181
2.047
1.551
2.100
28
1.258
610
24.930
0.164 s
,o.o,r,
I
0.153 I
0.029
0.039
5
flats detailed
2.890
23
1.607
322
102
96
4,259
1,104
608
905
15
655
318
13,101
0.2w
5
(0.013, I
0.187 I
5
0.034
worksheet)
4.778
19
1.497
300
66
81
4.264
1.079
808
763
15
656
318
14.663
0.265 s
(0.015,
0.250 s
$
248.441
7,357
248.349
49.769
31~746
29,766
348.639
119.854
66.102
282.066
1;196
53.526
25.994
1.512.906
0.074
0
0.074
0.063
Pound-Rated ECR Flats
ECR Flats
SO.30
$0.25
$0.20
SO.15
$0.10
50.05
s0
2
4
6
-
8
-
10
-
12
-
..
14
-
16
-
o-c.50*
1563.658
0
0.5oz-l.OOZ
5.550,558
0
1.oar-1.5oz
7.174.133
0
603.360
0
10.337.551
0
0
0
2.0 oz -2.5oz
13.164.844
0
19.618.816
0
26.026.256
0
30.851.766
0
66563.185
21.466.324
0
35.959.523
0
64643,120
82.709.020
0
,6,.224,867
0
362.714
0
7.191.601
1.185,464
0
38,539.897
1.666.607
0
M.419.080
3.751.986
0
101.952.633
4.757.975
0
,31.483,605
3.471.657
0
244,6,6,69a
2.133.235
1.217.174
283.062.572
0
3.637.585
25,.2Q3,372
0
6.269.651
500.526,025
34,625
0
365.433
0
291.906
0
461.848
0
819.163
0
,.236.*QS
0
869.121
258.368
0
671.434
0
679.285
0
657.940
31,664
0
*26.099
0
279.700
0
133,993
0
725.392
0
1.613.438
0
934.467
347.283
0
1.420.802
0
66.061
0
36.698
4561.a69
1.502-2.001
8.53,,271
2.5oz-3.00~
,3.556.888
0
3.00~3.50~
12.450.017
4.056.985
3.6 02 - 4.0 02
0
10367.530
4.ooz - 5.0 oz
0
14.827.056
5.00~ - 6.0 oz
0
17.167.099
0
53.524.463
19.339.953
0
62.132.884
0
98.691.137
0
47.050.172
128.368.343
61.972.412
0
175.156.373
0
0
380.738.,8,
0
200.741.513
5.208.62,
270.,67,405
0
374.741
0
1,x4,303
5.192,262
0
8.471.575
0
18.294302
0
0
27.370.931
0
9.159.438
2525.604
0
16.790.722
0
20.301.333
0
13.313.157
92.199
0
533.129
1.257.606
0
3.614X-42
3.280.507
0
9,044.376
6.613.670
0
15,651.(186
6.7aa.ao7
0
28.621.664
6.378.103
0
36,599,371
3.186.192
1.663.,15
19.843.587
0
5.832.478
24.715,436
0
19.344.682
40.391,36,
0
17.653.292
3t.660.967
920.882
0
4.172262
3.744.oas
0
3.752916
0
3.af!J3.045
0
3.706.225
0
1.857.978
1.100.437
0
3.211.799
0
6.033.878
4.05,.063
499.210
0
4.352.920
0
8.531.oa9
0
6.365.247
0
2.603267
2.797.55,
3.091.461
0
16.540.833
0
22524.721
0
1 TJ47.922
0
5,559.495
7.1a1.162
0
32.247.297
22.326.867
0
67.128.747
0-0.5oz
2.619.166
1.134.133
8.028.092
1.502.835
oscu-l.Ooz
10.069.364
14.916.570
39.771.461
9.624.452
l.Ooz-I.502
1,.2,o.m6
26.429.606
63.676.507
27.27596,
0
0
0
0
805.898
461.343
0
624.187
0
537.885
0
239.884
0
Q-3.670.078
0
a5.Q02,21a
0
17.437.927
6.713.754
0
25.761.963
0
53.868.387
0
28.394.2a4
83.533.106
0
136.819.27,
166.403.740
0
269.666.130
73.450.749
0
165.a66.743
15.936.959
8.902.393
55,238,6a¶
0
60.618.749
90.216.699
0
254.304.755
313.744.904
0
133.644972
166.330.204
43,,6a,cQl
1.50??-2.002
12.746.035
31.525.497
1,6.262.696
93.a9a.762
2.0 cn _ 2.6 oz
17.872.052
34.180.425
197.673.400
179.sm.522
2.50~s3.00~
16,60+,011
70.974.174
274.496.017
a3,300.509
3.00~.3.50~
20.592.905
75.433.397
22a.m.478
32941.066
3.5oz-4.00~
14.250.763
64.177.673
217.708.058
70.088.612
4.0.x-5.00~
20.540.219
99.295.062
454.907.90,
279.919.My)
5.00~.6.00~
21.676.103
47.326.654
242448,954
wi.506.685
o-c.502
osoz-I.002
,.ooz-1.5oz
1.5oz-2.ooz
2.0 02.2.5 oz
o-o.502
0.50z-l.Ooz
l.Ooz-I.502
1.50.7-2.ooz
2.0 oz - 2.5 oz
909 N0nd~hiQ
2.619,165
10,089,354
11.210.1oa
12.746.035
17.872.052
5%
4%
20%
14%
9%
ECRWACrmpshlp
1,134,133
14916.570
26.429.604
31 e525.497
34.150,426
12%
a%
O.OIB2
20%
22%
9%
ECR943 Dmp*hlp
5,025,092
39.771.461
53.676.607
116,262.696
19,.673.400
46%
0.0300
53%
49%
46%
60%
ECRDO" Dmpmp
1,502,815
9.624.452
27,275.961
93,896,762
179.950.522
0.010s
13%
21%
37%
42%
11x
WI
l3.2a4.225
74.4001.536
130,692.202
264,462,969
429.675.39a
UMI drcl7.ap cast awmana 5
3,214 S
16.486 s
35.160 S
78.066 S
137.323
avg dmpshi my aMdana p Pcmd s
6.9002 s
0.0002 s
o.wo3
s
0.0003 5
0.0003
diflerrnse km average 5
0.0001 s
0.0000 s
0.0000 s
(0.0000, s
(0.0000,
Ito2
2 to 3
3 IO 5
5 to
Otol
23.956,144
36.372.053
55.363.888
12.708.519
5Y.
.n
4%
14%
59,956,102
105.194.599
238.906.352
16Y
12%
15%
179,969,263
472.171,417
900.793.437
47x
54n
57x
121,174.743
263.251.032
382.949.965
24%
31%
30X
396,046,192
876.949.110
1.578.032.645
:
S
H3.24a
0.0003
0.0000
s
s
265,827
0.0003
(0.0000,
s
S
s
466.516
0.0003
0.0000
-
.
s
S
s
3.002-3.502
3.5oz-4.0.x
4.0 oz - 5.0 02
3.Oc.z-3.50~
3.6az-4.00~
4 to 5
20.592.905
14.259.763
20,540.219
6%
4%
2%
75433.397
64.w.873
99.295.062
21%
Iax
12%
22a,i77.478
2i7.708.058
454907.901
64%
59%
53%
32.941.059
70.068.612
279,919.088
9%
19%
33%
357,144.848
366.226.606
854,662,290
s
95,326 5
104,958 s
266,232 S
s
0.9003 s
0.0003 s
0.0003 s
s
0.0000 s
0.0000 s
(0.0000, s
6.0 oz - 6.0 OL
5106
21.876,,03
5%
47.326.654
1ox
242.u8.954
62%
,56.506.885
33%
468.158.596
143,794
0.0003
(0.0000,
7
7109
9,011
11 lo13
over 13
TOW
40.152.337
10,609,695
5.637,639
3.447.978
2.977,133
191.244.404
5x
4%
6X
7%
6%
5%
74757.114
29,7x570
10.224,7227
7.643.996
5.626,137
648.124.401
10%
10x
rm
15%
,,Y
13%
397854.635
163.070,457
67.106.164
33.699.251
39.639.016
2,302.123,162
52%
56%
68-A
66X
78x
55%
246.156.390
86.217.402
15.005.140
5,21a,wa
2.aw.180
ti33.948.220
32%
JOY.
15%
12%
6%
27%
759.010.366
288.6722.034
97*973,6a9
91.007,594
51.063.467
4.17s,440.177
231,205
o.wo3
(0.0000,
-
2.6 a? - 3.0 OL
2.5oz-3.00~
Ia,5oo,ot1
4%
70,974,174
16-k
274.498.017
61%
93,300,5o9
19%
447.272.711
5
128,504
s
0.6003
s
0.0000
-
-
s
S
s
6.0003
88.342
(0.0000,
s
s
o.ow3
27,980
o.owo
s
s
0.0003
13,982
0.0000
s
s
0.0003
14,041
0.0000
s
5
1,242,841
0.0003
._
6.0.x
- 7.002
0
15.095.957
0
4.035.233
0
27.429.953
0
17.392.526
12347.651
5.893703
0
133.717.529
0
a6.760.218
0
59.290.626
0
27.188.666
0
4.241.428
16O,.aWaa
0
3.759.409
111.947,3a6
0
2.622.647
77.266.435
0
463.384
0
261.246
0
I.016
0
2.135.093
0
1.861.959
0
1.420.390
0
1.177.053
0
9546.94
0
486.723
0
829.010
TOtal Pieces
62.091.370
77.5w.385
0
0
4.231.542
0
3.773.321
0
3.751.234
0
1.626.905
0
2.137.641
0
1.658.503
206.525.386
307.459.125
0
34,5m.,ta
0
14.165.5%3
0
17.807.616
0
17.167.105
0
12.324.501
0
9.263.621
498.933.057
1.230.873.876
0
1.665.101
36.882.554
0
1.540.195
42.214,815
0
979.805
20.339.024
0
498,807
23.234.709
0
242.359
19993,053
0
184,436
15,132,300
0
ma.9aa
li,90a.i2i
17.329.638
32.124.205
0
208.073
0
98.261
0
66.589
0
20.609
0
11.450
0
4.428
0
3.666
0
3.807
4.079.994
3.498.544
0
4.945
0
382
0
0
0
1.296
0
0
0
0
0
0
0
0
0
0
3944.654
1,878.383
0
7.288.627
0
4.711.858
0
2.884.621
~0
1.656.043
0
0
602,aoa
0
349.739
0
330.240
0
120.273
0
102.927
70.627.553
72,356.014
0
11.871.6ao
19.624.707
0
9.404.350
14.462.401
0
5.776.040
a,a69.,16
0
4394.609
5345.913
0
2.470.190
3.706,137
0
1,6OO.C65
2.223,4a2
0
775,049
1.136.236
0
760.023
1.094.691
0
196.867
320.806
0
226.839
333,674
2wQ7.284
81.869.279
267,861,705
0
2.716,893
0
1.701.355
0
1.196.oa4
0
632.566
0
653.170
0
488.036
0
329.539
0
266.289
0
199,499
0
230,026
22.042.476
22.012.635
0
29,491
0
25.868
0
3.198
0
40,253
0
57,932
0
34.753
0
83.788
0
54.871
0
105.654
0
42.563
25.955.182
2361.670
0
14.429.526
0
6.679.QQa
0
2.743.235
0
1.412.727
0
889.575
0
498.179
0
276.402
0
160.913
0
105.825
0
73.611
265.335.260
143.997.381
0
73.566.3oa
90.742.215
0
43.697.827
52.105,049
0
20,067.130
24.001,647
0
2.341.465
4,627,031
0
2.593.562
4,194,239
0
1.517.934
2336.902
0
846.506
1,535,236
0
432.367
904.441
0
296.753
707,731
0
322.660
669,750
369.884.525
603.143.290
1.474.732.419
6.Oor-7.00~
l&276234
27.460.460
166.436.681
89.679115
,.Oor-8.00~
6,097.637
17.423340
98.152.074
56.a61.5n5
0
3.105.611
0
8.0.x-Q.Oor
4.511.768
12.351.230
64.9ta.3a3
28.355.816
S.Ooz-10.0~
3.066.920
5.933957
M.457.427
8.401.w
tl78.062
lO.Ooz-11.0,
2.571.7ta
4.290.770
36.648.756
6.603946
ll.Ooz-12.0~12.0oz-13.0,
1.929.035
1,518,042
3.aoa.074
3835.022
15,266.496
16,432,767
4.097.ao4
2.120.364
13.Ooz-14.0~14.00~-15.0
1.225.401
688,888
1.663.777
2.2432%
17.~8.258
12.660,699
1.434.749
678.055
15.0.x-16.0,
1.062.643
1.701.066
9.440,160
706,376
pieces
191.244.404
648.124.401
2.302.123.152
1.133,~48.220
Response ,O ADVOIUSPS-T28-IO
b.Ooz-7.00~
St0 7
18.276.234
6%
27.460,&o
D.0182
9?G
155,435,6arOJfw
53%
69.679.415
0.03)s
31%
total
290.851,790
WA drcQsrhiQ
corlavadance s
87.411
fqdmprhipcaavM.3nceprpound
s
0.0003
dimfEncelrml aberage s
(0.0000)
..-_-.I
_1_;^,~,._.._
,---.,,
_
_
_
7.00.?-8.00~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
7ma
a t0 9
9,010
1010H
11,012
12,013
13tol4
14 to 15
15 to 16
6.097437
4.511.766
3,065,9iO
2,671,719
1,929.035
1.516.042
1.225,401
686.888
1,062.643
5x
8%
6%
6%
3x
4%
6%
4%
ax
17,423,.?4o
12.351,230
5.933.961
4290.770
3,6oa,o74
3.835.022
1.683,777
2.243.295
1,701.066
10%
14%
12%
9%
15%
15%
a%
14%
13%
96.152.074
64.915.383
30.457.427
36.M8.7~
16,256,495
16,432,757
,i‘,646,25a
12,5M,599
9.440,160
71X
80%
56%
59%
64%
73%
61%
7a%
73%
56,a61,585
28,355,616
am,m4
6,6o3,946
4.097,804
2.120,364
1,434,749
676.055
706.376
8%
26%
tax
13%
16%
7n
4%
5%
32%
176334.836
110.137,197
47.658.498
50,115.190
25.101.406
25.905.1a6
21.992,166
16,160.837
12.910,445
s
55.304 s
33,037 5
13,569 S
14,411 s
6,908 5
7,074 s
6.173 5
4.444 s
3,423
s
0.0003 s
0.0003 s
0.0003 s
0.0003 s
0.0003 s
0.0003 s
0.0003 s
0.000, 5
0.000,
5
(0.0000) s
(0.0000, s
0.0000 s
0.0000 s
0.0000 s
0.0000 s
0.0000 s
0.0000 s
0.0000
,I,,, ,,, .,. ,,., ,,,,,, ,”,,,, ,,,, ,.
,, ,.,.
,,,, ,,,,
,,,,
Total Pieces
told
191.244.464
5%
54a,l24.401
13x
2.302,123,152
55%
1.133.948.220
27%
4,175.440.177
S
1,242,841
s
0.000,
s
Respcmse to AD”OI”6P6-T2a-,O
0 0.5 OL
64141.699
0
0
I.Occ-1.5oz
90.872.a92
0
220.685.172
0
239.215.677
0
227.552.059
0
213.892.0,a
0
374.724.032
0
266.628.783
aa,a35,667
0
269.,57.WQ
0
346.983.869
182.279.318
0
44tano62
0
436.463.218
0
530.906349
0
674292,843
0
904.581.155
0
636.4,,,690
285262,024
0
727.a91.133
0
1.34o.a79.2,7
0
5aO.66,.643
14.605.703
0
296,423.221
26.930.482
0
904369,997
20.742.649
0
796.294.336
33.63, ,907
0
9*a.369.911
33.,06.490
0
91IH8.731
IQ.923637
0
1,376,190,123
10.6of.872
5616.221
1,372.949,a93
0
15,195.360
1.046.734,441
0
21.917.609
1.761.a67.761
0
14.902.602
780,33a,7oa
1.473328
0
8.234.664
0
3.7a9.701
0
4.154.061
0
5,59Q.M)8
0
6.945.603
0
4367.854
1.f78.878
0
2.852.380
1.634.7&(
0
5.163823
0
3.468.374
0
1.219,.941
0
5.062.26,
0
a,Q+3-w4~
0
4.721.622
1592,033
0
6.043.612
240.837
0
109,406
19302.794
0
39.771.647
0
61.307.127
0
76.830,968
0
126.568.723
0
,56,67a.o30
0
46.068,893
11S69.238
0
70.596.096
0
70362.910
0
38,382,381
5.615.079
0
2a,225,995
25.490.278
0
79.660.202
400.482.690
0
109,047,992
59.646.057
0
141,950,921
61.258.383
0
199.479,975
35.862.543
0
2Q9.440.517
,6.828.8,7
7.189.912
92.947247
0
24.234.013
103.726.100
0
67.286.763
140,425,*1*
0
50.882.742
91.239.920
36.073.820
0
an.1a9.159
0
47,aao,376
0
34.107.776
0
27.064567
0
21.214.969
0
9.206.469
5.064.a92
0
13.433.70,
0
17.591.57a
0
11.562.403
23,202.356
0
96.628.!33
0
,01.893.Q6o
0
57.205.9a7
0
,8.2,o.cc4
0
16.014.978
0
3.971.236
2.199.175
0
2.634.147
0
1.906.202
0
700.691
142.392.381
0
344.aa9.156
0
283.076.437
0
394.882.739
0
670,804.34,
0
494,867.722
0
87.390.,96
40.085.190
0
107,22u,965
0
,a9,400.,10
0
a1.910,052
66.837.249
0
299.695,906
146.025.384
0
574,a31,932
271.176.647
0
704,026,9,9
733.62a.462
0
1,219,724.994
1.162.230.723
0
1.*79.309,63s
431.324,066
0
963.42t735
78.826,266
40.913.026
267.a46.459
0
249.678.778
372,957.69’(
0
886.924.950
1.094,922.a-lo
0
388.362.763
492.535.906
24.396.501
0
0.5oz-1.0OL
1,6.,30,,81
,.soz-2.002
7a.zmsa
0
2.0 oz - 2.5 oz
92.827.3aO
0
2.5 oz - 3.0 oz
76,955.296
0
3.0 02 3.5 OL
6,.937.,96
18.626349
3.5 cu - 4.0 oz
0
43.4Q0.439
4.0 02 - 5.0 02
0
51.877.067
5.0 OL 6.0 OL
0
48.677.589
0
,36096.872
0
0
,,a64390
2.335308
0
O-O.502
0.502-1.002
l.Ooz-1.5c.z
,.5oz-2.002
2.00.7-2.502
*.5oz-3.002
3.0 oz - 3.6 az
3.6 07. - 4.0 cl2
4.002.5.002
5.0 OL- 6.0 a2
286.423.221
aJJ4.560.887
786.284.336
918360.911
914.118.731
1,376.190.123
1.372.918.893
1.045,734.441
1.761.667.761
780.33wx
28.225,985
76.660.202
m,o47.a92
t4,,850.9*7
lQa.479,975
2oa.440.517
92.507.247
103.726,KHI
uo.425.8,a
91.238.920
25a.505.m
674531.832
704.025.a19
1.219,724.954
1.878.309.635
963,421.735
267.646.459
372.967.59,
I .w4.822.a40
482.63wx
672.155,012
1.S57,752.921 1.599.3WW6
2.279,926.792
2.SQo.wa,34,
2.548.062.376
1.733.072.600
1.622.428.132
2996.906419
,,354.,,3.532
0
,.%I
..ou
“.. ._-”
_“-
00.502
295cu.221
50%
2*.225.999
5%
259.505.906
46%
572.155.012
0.602-1.002
594,a69,997
62%
7a.660.202
5%
574.53,,532
43%
1.667.752,921
,.OoL-1.502
7962a4.339
49%
109,047,992
7x
nnP25.519
44%
1.699.369.046
1.5 02 - 2.0 02
919.359.911
40%
141,950,927
5%
,.219,724,954
a3%
2J79.926.792
2.0 02 - 2.6 02
914,119.731
31%
w9c79.975
7%
1.579,3W.635
63%
2.990.995,341
2.6 oz - 3.0 02
1,376,190.123
54%
239440,617
9%
953421.739
3ax
2.549.052.375
3.0 02 - 3.6 cu
1.372,919,*93
79x
92.507,247
5%
257*649,459
15%
1,,33,072,600
3.6 02~4.0 oz
1.045,734.44,
69%
103,726.100
7%
3*2,*7,591
24%
,.622.429,132
4 to 5
1.761.aa7.761
59%
149,426.9,9
5%
,,094,922.940
37%
2,99a,9oa.419
5 10 6
780.33a,106
59%
91.236.929
TX
4a2.535,906
36%
1,354,113,a32
Response to AD”cJNSPS-T*a-IO
Piesal CM a*ncc
mETme hrm aavgdmpsnipcmlaMdanC
dfl-hrmrvstage
Ma, *lferma hrm sveraoe
0
,.,I)
s
s
s
s
s
0 -0.5 OL
0.0200
0.0016
o.oooo
(0.ooo1~
0.0015
0 to 1
wa9964.~oa
51%
1ows6.~86
5%
933.037.638
5
s
s
s
s
0.5ar-1.0or
0.0193
03009
o.oooo
,o.woo,
omo9
1 LO*
1.704.635.247
44x
m.aQa,atQ
6%
1.923.760.713
5
s
s
s
s
l.Ocu-1.5oz
o.cQo*
0.0017
o.oooO
,o.oooO,
0.0017
s
s
s
s
s
1.5.x-2.002
0.0239
0.0054
o.oooo
,o.oooo,
0.0054
s
s
s
s
s
2.0 02 - 2.6 01
0.0278
0.0093
0.0001
o.owo
0.0094
2 to 3
5 LO7
3 to 5
2.290.3wa55
4.180,311.095
t*18.325,283
41%
59X
67%
406.920,49*
138.956.70*
336.669.166
7%
7%
5%
2.841.731.370
1.736.436.891
70*.636.471
51%
34%
28%
6,538.960.716
6.262.407.161
*.06+.a~7.467
:
0.0949 s
0.0233
0.0161
0.0131
(0.0023,
(0.0053, :
:
o.owo
s
0.0001
O.cwJl
o.wo1
,o.oooO, s
o.oow
:
0.0049 s
(0.0023)
S
(0.0053, S
s
s
s
s
s
2.5 oz - 3.0 01
0.01a1
(O.WO3,
0.0001
,o.ww,
,0.ooo3)
7 to 9
377.16WX
66%
46.83f.892
a%
164.613.150
27%
578.610.651
0.0136
I
s
(0.9049)
0.0002
s
O.wol
s
s
,0.0049,
s
s
s
s
s
3.0 oz. 3.6 OL
6.0081
(0.0104)
0.0001
,O.oooO~
(0.0104,
9,011
1*4,2,4.500
81%
16.G9a.479
10%
13.934.0~0
9%
164.*46.990
S
0.0072
,o.orr3,
s
s
o.ooo2
s
o.ooo1
(0.0111,
s
I
s
s
s
s
3.5 oz - 4.0 02
0.0122
,0.006*,
o.woo
(03000,
(0.0062~
s
s
s
s
s
11to13
56.637.818
85%
4.469.434
7%
5.374.724
a%
66.471.977
0.0055
(0.0129,
9.0002
o.ooo2
,o.orza,
*
s
s
s
s
4.0 02 - 5.0 oz
0.0154
,o.omo,
0.0001
o.oow
(0.0020,
s
s
s
s
s
over13
51.615.774
92%
1.963363
4%
2.464.026
4%
5W33.164
0.0030
(0.0155,
0.0003
O.WO2
,0.0163,
s
s
s
s
s
5.0 oz 6.0 oz
O.OlMI
(0.0017,
0.0001
0.0000
(0.0016,
11.093,198,*89
54%
1.309.673.532
6%
6,3w.a99.054
40%
20,7w77o,a76
I
9.0164
s
s
o.wo1
I
i
-
.
~.OOZ-7.002
7.00z-a.002
8.0~~-9.0~~~.0~-~0.0~~.0~-~1.0~~.0~-~2.0~
0
0
0
5.711.688
3.536.837
2.786.936
0
37.420.097
0
8.476.651
0
66.497.609
0
36,265,405
0
22.753.329
9.764.30~
0
323.765.548
0.
182.319.456
0
109.126.619
0
44905.099
0
10.303.~28
437.996.679
0,
7.864.345
W.926.956
0
4.649.118
142239.753
0
1.111.703
0
754,135
0
2,536
0
1.926.598
&Ma
TOM Piece,
579.125.243
226.473.124
0
5,086.581
0
4.697.706
0
1.aw.823
0
2.293.555
0
1.693.551
1,5.36.094.242
988.357.m
0
5~.a*mia
0
19.24t.890
0
22.246.324
0
19.957.999
0
13.M9.581
0
9.457.688
3.755.739.525
3,730.745.w5
0
2.753444
60,969,697
0
2.305.653
63.254.913
0
1.342.396
27.997.465
0
625,OOl
zo.o40,393
0
280.939
23.237.999
0
2oom2
~6.226.383
0
158.886
12,1w.604
m.548.640
aa.~14.905
11,093.19a.**9
0
384.886
0
162,549
0
84,671
0
27,928
0
14,218
0
0
4.oa5
0
3.930
34.555.809
10.7a4.E.8
0
10.232
0
701
0
0
0
1.979
0
0
0
0
0
0
0
0
0
0
30.234.846
8.w1.338
0
17.a47.6Qa
0
9,961.413
0
5.35a.095
0
3.101.427
0
1,767,682
0
823,999
0
439,790
0
384.093
0
130.540
0
103.740
525.728.781
23to18.999
0
28.754.945
47.716,791
0
19.704.615
30,439,399
0
tow.815
19,49,,497
0
7.2ava6
10.649,962
0
3.694.186
6.S48.511
0
2,182.165
3m4.991
0
971.334
1.425,343
0
886.711
1.276,921
0
214.873
349.479
0
230.294
337.964
245.173.647
224.176.353
1,309.673,532
0
6.578.045
0
3.558.813
0
2.212.823
0
1,375.267
0
974.238
0
666.521
0
415.125
0
303.981
0
216,674
0
231.805
263.737.135
64175.866
0
72,642
0
54,202
0
5.927
0
67.314
0
88.602
0
47.986
0
105.409
0
62,446
0
113.341
0
42.910
317.126.652
a.towo3
0
0
14.121.843
0
5.0aa.475
0
2.333,305
0
1.330.210
0
680,077
0
3601 I
0
176.35a
0
115.024
0
73.980
2.4~a.t0~.97*
477.141.979
0
17a.oa6.505
220.9w.w9
0
92.232372
103.9a7,429
0
37J40.497
44.645,721
0
3.964.741
7.940,52l
0
3.Qoo.332
w9.w=
0
2.051.632
3.44a.216
0
1.061.9a3
1.929,609
0
503.826
1,04$613
0
ma.998
764,031
0
325,681
674,316
2,878,948,fa9
1.885.566.258
9.312,899,034
6.002-7.00~
7.002.8.002
8.002-9.002
9.0or-~0.0o:~0.0~-~~.0~~~.0~.~2.0c~2.0~-~3.0~~
437.988.578
2x925.856
142.239.753
6O.QW.687
63.254.813
27.697.465
47.716.781
30.430.3Q6
16.401.497
10.549.982
5.E-la.617
3.034.091
220.m.586
loQ.Sw.429
44845,721
7.640.627
6.293.383
3446.2‘6
705.703.925
375X3.680
203.286.971
79.150.277
75.oQw13
34.077.773
Ms.2
16.Ooz
0
941.379
0
6340.436
wx3.374
#
12.oor-13.ooL3.oor-14.ooz.oor-15.ooz~.ooI0
0
0
1.471,321
1.108.126
523.044
6 to 7
437.9aa.979
67.m
47.7141111
7%
2m.wo.a65
51%
706.793.925
7toa
234,926,956
63%
30.439,399
9%
m9.967.429
29-A
315,3u.*
a to 9
142.239.753
70%
19co1.4997
5%
4464a.721
203&z
9t010
69.969,697
77x
lO,a49.992
13X
7,646.627
Ion
79.160.27,
101Oll
53.294.913
54x
5.94a.611
7th
9391.=3
9n
75.995.713
11,012
27.997.46a.
51X
3.934*091
3.m2:
Ion
34,977.773
29.04o.353
1.425.343
1,9*a,5m
32.394,204
1210 13
29.949,353
90%
1,429,343
4%
1,929.509
ax
32,394.294
5,ua
13.0 oz - 14.0 o 14.0 oz - 15.0 15.0 OL - 16.0 Pieces
23.237.888
16226.383
12.151.504
11.093.198.289
1.275.921
349.478
337.964
f.309,673.532
1.045.613
764.037
674.376
8.3~2.899.054
25.559.423
17.339.897
13.163844
20.7~5.77o.a75
,310 14
23J37.99a
91x
1.275.9*1
5%
1.945.613
4%
25.669,423
14b 15
16.226393
94%
349,479
2%
764.037
4x
w.339.997
15u,16
ma,
12,161.994
1ul93.199.*99
92%
54%
335w4
1.309,673,5X
3%
6%
674.375
9,3n,a99,054
6%
49%
13.163,944
20.715,770.975
Presatcarl avadan‘r
ofl-hanavwase
avgLbcc&pmrlauoaa”c
Ml-hmrbwasu
lml-hanav
6.0r,r-7.0or
s
0.9149
s
(0.0039,
s
0.0001
s
o.ooo1
s
(0.0034,
7.00~.8.00~
0.9146
s
(0.003a)
s
o.wo1
s
o.ooo1
s
(0.0037,
s
8.0a~-9.0or,.Oor-,0.0or,.0az-11.0ozl.Ooz-,2.0or
s
O.OH6
s
o.ooa4
s
0.0059
s
(0.ooa9,
s
(0.0100,
s
(0.0126,
s
0.0002
s
0.0992
s
0.0002
o.ooo1
s
s
O.ooo~
s
O.woI
s
(0.0061)
S
(0.0399)
S
10.0124,
_^;.-_~.__.
^.-;-.-.
I
s
s
s
S
0.0071
(0.0113,
0.9002
o.ooo1
(0.0112,
,“I_-~.~.I
s
s
s
s
s
12.00r-13.0oz3.0oz-14.0or.0OI-15.0~~.0~~-16.0~
0.0039
s
0.0025
0.0033
s
(0.0149)
s
(0.0151,
s
(0.0150)
o.ooo2
s
0.0403
0.0002
s
o.wo2
s
0.0002
s
0.0902
(0.0144,
s
(0.0149,
s
(0.0159,
_.^~.;_._..
_.- ..^.~..
s
s
s
s
s
.~.,“._. ._.
0.0029
(0.0155,
0.0003
o.om2
,0.0163,
5
s
s
s
.,__.“^_.
Total Pieces
0.0184
0.0001
..-_. --.
.”
RESPONSE OF UNITED STATES POSTAL SERVICE WITNESS DANIEL TO
INTERROGATORIES OF ADVO, INC.
ADVOIUSPS-T28-11. In Table 7 at page 29 of your testimony, you show ECR letternonletter unit costs by density tier (Basic, High Density, and Saturation). With respect to
these unit costs, please answer the following:
Please provide for each density tier the average weight per piece (i) for letters and
(4
(ii) for nonletters.
Please confirm that for each density tier, nonletters have a higher average weight per
(b)
piece than letters.
Cc) Please provide for each density tier the percentage of ECR nonletters that weigh
more than the breakpoint. If a precise percentage is not available, please provide the
closest estimate, such as the percentage of pieces weighing more than 3.5 ounces.
Please confirm that for each density tier, the unit cost differences between letters(4
nonletters include not only the effects of shape-related cost differences, but also the
effects of weight-related cost differences between letters and nonletters (e.g., the
0.464$ unit cost difference between Saturation nonletters and Saturation letters
reflects both shape- and weight-related cost effects).
RESPONSE:
According to the data in the Billing Determinants’ presented in USPS LR-I-125 the
a.
average weight per piece in ounces for ECR are:
b.
C.
d.
ECR
Nonletters
Letters
Basic
0.74
3.41
High-Density
3.40
0.90
2.93
Saturation
0.95
Confirmed.
According to the data in the Billing Determinants presented in USPS LR-I-125 the
percent of ECR nonletters above the breakpoint (pound-rated) are:
ECR
Basic
High-Density
Saturation
Confirmed.
Pieces above breakooint
45%
40%
31%
DECLARATION
I, Sharon Daniel, declare under penalty of perjury that the foregoing
are true and correct,
to the best of my knowledge,
Y
Dated:
q
c
00
information,
and belief.
SHARON DANIEL
answers
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.
Anthony Alvernd
475 L’Enfant Plaza West, SW.
Washington, DC. 20260-I 137
(202) 268-2997; Fax -6187
April 5, 2000