BEFORE THE
POSTAL RATE COMMISSION
WASHINGTON, D.C. 20268-0001
POSTAL RATE AND FEE CHANGES, 2001
RECElVEll
Ocr 18 Li 40 Pli ‘01
pc;,A: ;:‘!:~ ‘:::,,<:4::’
:,;;:j$
0FF)C[Y$i: i * .,I3<C:.
:,.f / ,?~
/rj‘I
Docket No. R2001-1
i
RESPONSE OF UNITED STATES POSTAL SERVICE
WITNESS L. PAUL LOETSCHER TO INTERROGATORIES
OF
MAGAZINE PUBLISHERS OF AMERICA, INC.
(MPAIUSPS-T3&2-4,
REDIRECTED FROM WITNESS ALTAF H. TAUFIQUE)
The United States Postal Service hereby files the response of witness L. Paul
Loetscher to the following interrogatories
MPAIUSPS-T34-2-4,
of the Magazine
filed on October 4,2001,
Publishers
of America, Inc.:
and redirected from witness Altaf H.
Taufique.
The interrogatories
are stated verbatim and are followed by the responses.
Respectfully
submitted,
UNITED STATES POSTAL SERVICE
By its attorneys:
Daniel J. Foucheaux, Jr.
Chief Counsel, Ratemaking
Brian M. Reimer
Attorney
475 L’Enfant Plaza West, S.W.
Washington, D.C. 20260-l 137
(202) 2683037
Fax -5402
[email protected]
October 18. 2001
RESPONSE OF UNITED STATES POSTAL SERVICE
WITNESS L. PAUL LOETSCHER TO INTEROGATORIES
OF
MAGAZINE PUBLISHERS OF AMERICA, INC.
MPAIUSPS-T34-2:
Please complete the following table regarding the advertising content of Periodicals
Outside-County publications. Please also provide the source of your data. If you
cannot complete the table, please re-direct this interrogatory to another witness who
can do so.
/ Advertising Percent 1 No. of Publications
FY 2000 Total
in Category in M
Mail Volume
2ooo
o-10%
1o-20%
2030%
30-40%
:
40-50%
~50-60%
60-70x
70-80%
ao-90%
go-100%
I
RESPONSE OF UNITED STATES POSTAL SERVICE
WITNESS L PAUL LOETSCHER TO INTEROGATORIES
OF
MAGAZINE PUBLISHERS OF AMERICA, INC.
RESPONSE:
The Postal Service does not collect the requested information
Outside-County
Publications.
FY 2000 Periodicals
on all Periodicals
Therefore it is not possible to complete
Outside-County
the table for all of
mail. The PERMIT system collects Postage
Statement data (form 3541) for roughly 95 percent of Periodicals
Outside-County
mail
Trial Balance revenue.
I used the PERMIT system data to complete the table for those
publications
to mail at Periodicals rates (pending publications
authorized
and entering mail at PERMIT system equipped facilities.
this table, publications
are excluded)
For purposes of completing
are mapped to advertising content category using the ratio of the
sum of FY 2000 PERMIT system advertising pounds to the sum of FY 2000 PERMIT
system total pounds. The assignments
specific.
A publication
average content.
to advertising content categories
are not mailing
is assigned an advertising content category based on its annual
The results are presented in Table 1 MPAAJSPS-T34-2.
MPAIUSPS-T34-3:
On page 8 of your testimony, you state, “The Postal Service recognizes the impact of
higher dropship discounts on smaller customers, who individually may not have the
volume and/or density to enter mail closer to destination”. Please complete the
following table regarding the distribution of Periodicals Outside-County mail by issue
size. Please also provide the source of your data and explain the definition of an issue
you used to populate the iable. If you cannot complete this tab!e, please re-direct this
interrogatory to another witness who can do so.
RESPONSE OF UNITED STATES POSTAL SERVICE
WITNESS L. PAUL LOETSCHER TO INTEROGATORIES
OF
MAGAZINE PUBLISHERS OF AMERICA. INC.
Mailed Copies Per
No. of
FY2oOo
Issue in M 2000
Publications
Mail Volume
in Category in
FY 2OQO
Regular
Q-1$00
1
FY 2000
FY 2000
Total
Advertising
Weight
Weight
1 .OOO-2,000
2,oW-5,Ooa
5,00610JOO
1O,oOO-25,000
25,WO-5o,oW
!sJ.OW-75.000
75,WO-100,OW
lW,ooO-200,ooa
200,00o-5O0,000
I
5W,OOO-1 Million
1 Million+
Nonprofit
/ o-1,000
,
1 ,OOo-2,000
!
2,WO-5,000
5,000-10,000
lQ,OOO-25,000
I
1 25,000~50,000
’ 50,000-75,000
!
75.000-l 00.000
i
1 100,000-200,000
/
I
~~’
) ZOO,OOO-500,000 :
! 500,000-l Million
! 1 Million+
I
\
RESPONSE OF UNITED STATES POSTAL SERVICE
WITNESS L. PAUL LOETSCHER TO INTEROGATORIES
OF
MAGAZINE PUBLISHERS OF AMERICA, INC.
RESPONSE:
The Postal Service does not collect issue size data, nor do any of the Postal Service’s
volume data systems distinguish
reported information
publications.
between the various issues of a publication.
Self
on the frequency of publication is available for most, but not all
Total annual volume can be calculated by publications
entering mail at PERMIT system equipped sites.
annual volume information
for publications
The Postal Service does not collect
for all Periodicals Outside-County
publications,
therefore it is
not possible to complete the table for all of FY 2000 Periodicals Outside-County
mail.
The PERMIT system collects Postage Statement (form 3541) data for roughly 95
percent of Periodicals
Outside-County
mail Trial Balance revenue.
system data to complete the table for those publications
Periodicals
rates (pending publications
system equipped facilities.
authorized
Estimated issue size used to produce this table is the ratio
etc.).
mailing supplemental
issue sizes of publications
Publications
This estimate will
estimates for numerous reasons (e.g. tend to over estimate the
issue size of publications
underestimate
issues and back issues and
which did produce issues for all of FY 2000
mailing at both Periodical Outside-County
Regular rates and
‘. Periodicals Outside County Nonprofit rates are presented separately.
presented
to mail at
are excluded) and entering mail at PERMIT
of PERMIT system annual volume to reported issue frequency.
produce erroneous
I used the PERMIT
in Table 2 MPAUSPS-T34-3.
The results are
RESPONSE OF UNITED STATES POSTAL SERVICE
WITNESS L. PAUL LOETSCHER TO INTEROGATORIES
OF
MAGAZINE PUBLISHERS OF AMERICA, INC.
MPAIUSPS-T34-4:
Has the Postal Service or any of its contractors ever estimated the cost savings that
would result from increasing sack minimums for Periodicals? If so,.please provide the
date that each estimate was developed, the cost savings, and all underlying
calculations.
_-a
RESPONSE:
The Postal Service produced estimates of the cost savings that would result from
increasing the piece minimum of Carrier Route sacks to 24 pieces.
savings and underlying calculations
It is my understanding
The estimated cost
are presented in LR-I-332 in Docket No. R2000-1.
that neither the Postal Service nor any of its contractors
produced estimates of cost savings that would result from increasing
other sack presort levels.
have
sack minimums on
Table 1 YPAAISPS-T34-2
PERMIT Swtem Periodicals Outside-Countv
By Average Annual Advertising
Advertising
Percentage
O-10%
lo-20%
20-30%
3&40%
40-50%
50-60%
60-70%
70-80%
80-90%
90-l 00%
Totals
No. of Publications
in Category in FY
2,000
Mail
Percenkqe
FY 2000
Mail Volume
FY 2000 Total
Weight
12,487
2,171
1,941
2,209
2,745
2,461
1,232
380
125
121
1,005,867,452
460226.956
573,401,204
1.781,213,921
2.333.316.245
2,102.640,725
560342.788
95,089,385
859,837
329,231
291.783,604
.:‘. 183,601,708
186.966107
630.546.628
1.061,847.729
1.495,201,558
390,872.198
68,287.985
1.702,140
89,108
25,872
8,913,267,744
4.310.898.765
Table 2 YPAaJSPS-T34a
PERMIT System Periodicals
Regular and Nonprofit
Publiallon
Counts, Volume and Weight, Advertising
Weight
By Estimaled Issue Size
No. of Public&km
in Category in
FY2OOO
rteguk3.r
O-1 .wo
l,WO-2.OW
FY 2ooO
TOtal
Weight
FY 2wo
AdveRising
Weight
45
121
53
'67
649
135.656235
66.530.3Ql
135.667279
1433.063.a97
801.042.313
266.446.712
216.553.994
557.612.675
163221.536
595.056.770
WI .977,467
2.614.666.906
72;W6;644
62.367.012
34.646.476
66.072.795
65,634,030
362.531.661
139,650,356
lc6.175.152
311232.664
ewo5.304
365.172.504
609.646,766
1.371.054.143
37.006;951
27.456.630
<.>4.268,170
27.671.633
24X32.494
162.105.492
69.514.495
52.911345
15o.cm715
41.616.523
166.56?$60
303.007266
639.477,760
16.653.979
NO"pdit
o-1 .ow
1 .WO-2.000
2.ooo-s.ooO
5.m.lO.WO
10.000-25.000
25.ooo5o.ow
50.000-75.m
75,000-lW.000
100,00+2OwOc
200.000-500.000
5w.m-1.m.000
1 Million+
Iswe Freqeguency Not Available
4230
752
926
567
1139
161
89
144
15
66
25
22
159
13.612.528
9,141,05n
26.095.948
39.633.873
301.249.805
127.219.613
93349.763
216.263,OOl
24.931.100
252.215.536
X36.923.902
652.459.326
17.060,?34
4.991 .xxl
4.726294
14,930,405
15.125.536
61.565.175
33.616.817
26.174.933
57.020.651
6.714.493
67.569,553
34.199.333
260.296.710
6,409.060
149,464
127.903
972.510
1.520.169
16.612.703
6.624.434
7.665.517
15.427.267
1.588.8c4
19.325.617
6.518.907
73.248.542
2.319.944
Regular (L Nonprofit
0-l,WO
1.wo-2,wo
2.W&5.000
5.ow-10,wo
1o.cim25.wo
25.000-50,ow
5o,ow-75.000
75.000-100.000
100.000-200.000
200000-500.000
5w.w0-1.w0.000
1 Million+
Issue Frequency Not Available
34
15
I!3
14
17
4
0
3
1
1
0
0
37
2.ooo-5.ow
5,wJ-10.060
10,MM-25.ooo
25,WO-50,ooO
5aca-75,ml
75.awlW,OW
100.000-2UO.000
2oo.ooo-500,wo
soo.ooo-l.wo,wo
1 Millbre
Issue Frequency Not AvailaMe
..
FY 2000
Mail “ol”me
9059
1399
1563
102c
2331
355
166
143.427
158.716
453,532
1.828.598
4.647.366
1.305.927
0
3.977,002
I,889282
1.594.980
0
0
6.878391
49,327
60,062
120,776
780,555
2.616.746
367.413
0
1.009.076
745,547
151,236
0
0
2208,233
8.360
3,290
12,260
161.754
441,360
94.356
0
12.554
319,902
0
0
0
40~.811
.
DECLARATION
I,
that
the
L. Paul Loetscher,
foregoing
of my knowledge,
answers
information,
declare
are true
under penalty
of perjury
and correct
to the best
and belief.
CERTIFICATE
OF SERVICE
I hereby certify that I have this day served the foregoing document
participants
of record in this proceeding
in accordance
with section 12 of the Rules of
Practice.
Brian M. Reimer
475 L’Enfant Plaza West, S.W.
Washington, D.C. 20260-l 137
October 18.2001
upon all