BEFORETHE
POSTAL RATE COMMISSION
WASHINGTON, D.C. 2026&0001
POSTALRATEANDFEE CHANGES,2000
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FEB II II 23 FH ‘00
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Docket No. R2000-1
RESPONSE OF UNITED STATES POSTAL SERVICE
WITNESS PAFFORD TO INTERROGATORIES OF
UNITED PARCEL SERVICE
(UPS/USPS-T4-l-6)
The United States Postal Service hereby provides the responses of witness
Pafford to the following interrogatories of United Parcel Service: UPS/USPS-T4-l-6,
filed on January 21,200O.
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
/&.,A2 //N
Kenneth N. Hollies
RESPONSE OF UNITED STATES POSTAL SERVICE WITNESS PAFFORD TO
INTERRROGATORIES OF UNITED PARCEL SERVICE
UPS/USPS-T4-1. Refer to your testimony at page 3, lines 16-l 7, where you
state, Yhe Postal Service’s postage revenue accounting system contains several
accounts that are associated wkh specific classes or subclasses of mail.”
Identify each such account and the specific classes or subclasses of mail with
which each is associated.
RESPONSE:
Each General Revenue Account and its associated mail class or subclass is
identified below.
General Revenue
Account
41310
41320
41411
41412
41414
41416
41417
41418
41440
41441
R2000-1
Description
Mail Class or Subclass
Periodicals Mail Revenue
Periodicals Mail
Centralized Postage
Revenue
Standard Mail (A) Bulk
Rate Regular Permit
Imprint
Standard Mail (B) Bound
Printed Matter Permit
Revenue
Standard Mail (A) Bulk
Rate Nonprofit Permit
Imprint Revenue
First Class Presort Permit
Imprint Revenue
Express Mail (Special
Permit) Revenue
Standard Mail (B) Special
Standard Presort Permit
Imprint Revenue
Standard Mail (A) Bulk
Rate Regular Centralized
Postage Revenue
Standard Mail (A) Bulk
Rate Nonprofit
Centralized Postage
Revenue
Periodicals
Periodicals
Standard Mail (A)
Regular Rate
Standard Mail (B) Bound
Printed Matter
Standard Mail (A)
Nonprofit Rate
First Class Presort
Express Mail
Standard Mail (B) Special
Standard
Standard Mail (A)
Regular Rate
Standard Mail (A)
Nonprofit Rate
RESPONSE OF UNITED STATES POSTAL SERVICE WITNESS PAFFORD TO
INTERRROGATORIES OF UNITED PARCEL SERVICE
UPS/USPS-T4-2. Refer to page 3 of your testimony at lines 18-l 9, where you
state, ‘[M]ost postage revenue accounts are general accounts that do not
correspond exactly wtth specific mail categories.” Identify, and describe the
differences between or among, all “postage revenue accounts . . . that do not
correspond exactly with specific mail categories,” and in the case of each such
account, state all of the mail categories associated with the account.
RESPONSE:
The general accounts that do not correspond exactly with specific mail
categories are provided in the following table. These account revenues are
aggregated and used in the book revenue adjustment of the mail categories
identified with footnotes 11 and 21 in Tables 1,2, and 3 of my testimony.
General Revenue Account
41100,41110-41115,4111741119,41122,41126-41129,41137.
41141-41143,41199,41415,41598
41121,41123,41125
41200,41220,41230,41231,41240,
41596
41421-41423
41511,41590,41593-41599
R2000-1
Description
Stamps
Stamped Paper
Metered Postage
Official Mail
Refunds I Postage Due Revenue
RESPONSE OF UNITED STATES POSTAL SERVICE WITNESS PAFFORD TO
INTERRROGATORIES OF UNITED PARCEL SERVICE
UPSNSPBT4-3. Refer to page 6 of your testimony at lines 15-17, where you
state that DRPW and BRPW estimates “are combined with other data in the
RPW Adjustment System to produce estimates of revenue, pieces and weight for
all categories of mail.” Identify and produce all such “other data” in the RPW
Adjustment System that is used “to produce estimates of revenue, pieces and
weight” for Parcel Post, and provide the source of all such data.
RESPONSE:
The source of “other data” includes official mail and Alaska bypass. Official mail
is Congressional Franked and permit imprint Agency Standard Mail (B), while
Alaska Bypass is Standard Mail (B) Intra-BMC. The GFY 1998 totals are:
Standard (B) Parcel Post
(data in thousands)
Alaska Bypass
Official Mail
Revenue
Pieces
Weight
10,446
8,523
1,931
1,557
94,959
11,177
The sum of revenue, pieces and weight for DRPW. BRPW, Alaska Bypass, and
Official mail equals revenue, pieces and weight shown in Tables 1, 2, and 3 of
my testimony.
R2000-1
RESPONSE OF UNITED STATES POSTAL SERVICE WITNESS PAFFORD TO
INTERRROGATORIES OF UNITED PARCEL SERVICE
UPS/USPS-T4-4. Refer to Tables 1,2, and 3 on pages 8-13 of your testimony.
In the case of each table, explain why the coefficient of variation was not
calculated for Express Mail.
RESPONSE:
Express Mail revenue, pieces, and weight are obtained from the Electronic
Marketing Reporting System (EMRS). It is my understanding that EMRS
accounts for every piece of Express Mail. Thus, it is a complete census, not a
sample estimate. The coefficient of variation would be zero.
R2000-1
RESPONSE OF UNITED STATES POSTAL SERVICE WITNESS PAFFORD TO
INTERRROGATORIES OF UNITED PARCEL SERVICE
UPS/USPS-T4-5. In all instances where DRPW and BRPW estimates are
combined (whether with or without other data) to produce estimates of revenue,
pieces, or weight for a category of mail, describe all steps that are taken to make
sure that mail covered by the BRPW system is not also sampled in the DRPW
system.
RESPONSE:
The service categories in Tables 1,2, and 3 of my testimony are developed from
unique mail category codes in DRPW and BRPW. FY 1998 DRPW mail
category codes are documented in USPS-LR-I-23, page 307. The RPW
Adjustment system processes all RPW data by mail category code through a
series of SAS programs, removing any possibility of duplication. USPS-LR-l-30
documents this process, and provides the specific SAS code both as a listing
and in machine-readable form.
R2000-1
RESPONSE OF UNITED STATES POSTAL SERVICE WITNESS PAFFORD TO
INTERRROGATORIES OF UNITED PARCEL SERVICE
UPS/USPS-T4-6. Refer to Tables 1.2, and 3 of your testimony. Provide, in the
same format as and for each of the same categories of mail shown in Tables 1,
2, and 3, that part of the revenue, piece, and weight estimates that are derived
solely from the DRPW system.
RESPONSE:
The attached tables provide DRPW estimates and their estimated confidence
intervals.
R2000-1
Attachment to UPS/USPS-14-6 Response
TABLE 1
FISCAL YEAR 1996 DRFW REVENUE Esntums
AND ASSOCWED CONFIDENCE LIMITS
SERVICE CATEGORY
FIRST-CLASS MAIL:
SINGLE-PIECE LETTERS, FLATS, AND IPPS
NONAUTO PRESORT LETTERS. FLATS, AND IPPS
AUTO PRESORT LEtlZRS AND FLATS
AUTO CARRIER ROUTE PRESORT LETTERS
SINGLE-PIECE CARDS
NONAUTO PRESORT MAILING CARDS
AUTO PRESORT CARDS
AUTO CARRIER ROUTE PRESORT CARDS
DOMESTIC MAIL FEES
TOTAL FIRST-CLASS
C.V. I/ OF
ESTIMATE
PERCENT
REVENUE
(Sl.000~)
LOWER 95% UPPER 95%
CONFIDENCE CONFIDENCE
LIMIT21
LIMIT21
_
21.75o.550
7.012
37,157
55
012,450
1
7
0
87,488
22.505,320
028
12.08
5.78
59.42
1.52
96.75
73.44
21.631.183
5,810
32.947
0
594.204
0
0
21,860,917
9,414
41,366
119
630.696
2
17
3.63
0.27
00,552
22,366222
104,425
&,624,418
4.158349
941
4.159.490
1.09
6.33
1.09
4.069.706
a24
4.070.627
4.247,392
I ,058
4,248.353
104
0
0
7,936
8,040
28.82
45
163
8.76
0.67
6,415
6.516
8.457
0,564
PRIORITY MAIL
DOMESTIC MAIL FEES
TOTAL PRIORITY
EXPRESS MAIL
0
MAILGRAMS
0
PERIODICALS MAIL:
IN-COUNTY
OUTSIDE COUNTY:
REGULAR
SPECIAL NONPROFIT
CLASSROOM
DOMESTIC MAIL FEES
TOTAL PERIODICALS
0
STANDARD MAIL (A):
SINGLE-PIECE
REGULAR - NONAUTO PRESORT
REGULAR-AUTO PRESORT
ENHANCED CARRIER ROUTE
NONPROFIT - NONAUTO PRESORT
NONPROFIT-AUTO PRESORT
NONPROFtT ENHANCED CARRIER ROUTE
DOMESTIC MAILING FEES
TOTAL STANDARD MAIL (A)
123.859
469
0
0
0
0
6.89
20.28
110.o45
283
137.672
656
14,d
139.267
4.80
5.17
13,505
125,155
16,374
163,360
STANDARD MAIL (B):
PARCELPOST
BOUND PRINTED MATTER
SPECIAL STANDARD
LIBRARY MAIL
DOMESTIC MAIL FEES
TOTAL STANDARD MAIL (B)
309.046
47,790
329,448
45.684
2,062
734,029
2.15
7.26
2.88
3.04
0.49
1.96
296,022
40,000
310,851
42,062
1.670
706,631
322,069
54.591
348,044
48.406
2,445
762,226
1
Attachment to UPS/USPS-T44 Response
TABLE 1
(CONTINUED)
FISCAL YEAR 1896 DRPW REVENUE ESTlMATES
AND ASSOClATED CONFIDENCE LIMITS
SERVlCE CATEGORY
C.V. II OF
ESTIMATE
PERCENT
----
REVENUE
(Jl.OOOs)
LOWER 05% UPPER 95%
CONFIDENCE CONFIDENCE
LIMITLwm
LIMIT 2’
U.S. POSTAL SERVlCE MAIL
FREE MAIL FOR THE BLIND AND HANDICAPPED
TOTAL DOMESTIC MAIL
27546,147
43.862
TOTAL INTERNATIONAL MAIL
TOTAL ALL MAIL
N/C
27.590,OOa
N/c
175
69,768
2
385.745
262,056
1
0
717,740
0
0
0
717,749
28.32
2.86
99.66
4.05
3.86
69.50
76
65.857
0
355,125
242,231
0
272
73.679
5
416,366
281,884
3
3.52
668.230
767.268
28,307,757
N/C
SPECIAL AND OTHER SERVICES:
REGISTERED
INSURANCE
COLLECT ON DELIVERY
CERTIFIED
RETURN RECEIPTS
SPECIAL DELIVERY
MONEY ORDERS
SUBTOTAL
OUT. MONEY ORDERS TAKEN INTO REVENUE
STAMPEDENVELOPES
BOX RENTS
TOTAL SPECIAL 6 OTHER SERVICES
TOTAL MAIL 6 SPECIAL SERVICES
WC3
NIC
0
28.307.767
RI EST. RNENUE)
UPPER LIMIT = EST. REVENUE + (1.97 x EST. STD. ERROR)
;y N/C - NOT COMPUTED
2
NIC
Attachmentto UPS/USPS-T4g Response
TABLE 2
FISCAL YEAR ,998 DRPW PIECES ESTIMATES
AND ASSOCIATED CONFIDENCE LIMITS
SERVICE CATEGORY
FIRST-CLASS MAIL:
SINGLE-PIECE LETTERS. FLATS, AND IPPS
NONAUTO PRESORT LETTERS. FLATS, AND IPPS
AUTO PRESORT LElTERS AND FIATS
AUTO CARRIER ROUTE PRESORT LETTERS
SINGLE-PIECE CARDS
NONAUTO PRESORT MAILING CARDS
AUTO PRESORT CARDS
AUTO CARRIER ROUTE PRESORT CARDS
WMESTIC MAIL FEES
TOTAL FIRST-CLASS
PRIORITY MAIL
DOMESTIC MAIL FEES
TOTAL PRIORITY
C.V. I/ OF
ESTIMATE
PERCENT
--
PIECES
(1.000s)
64,131,229
17,937
138,004
239
2.960.380
5
43
0
0.47
14.79
6.02
59.42
1.50
9a.76
73.43
53.632.572
12,737
121.720
0
2.aa2.080
0
0
54.629.886
23,136
154,287
616
3,056.aao
13
105
57.256.836
0.45
56.751.830
~7.761341
1.166,007
1.06
1,142,742
1.191.233
1,166,987
1.06
1,142,742
1,191.233
160
0
0
75.56
0
396
160
75.56
0
39a
150,276
0
0
0
0
0
0
a.87
124,150
176,402
150,276
a.87
124.150
176,402
77,760
30,141
190,676
27.726
2.10
7.35
3.74
3.39
74,567
25,799
176,701
25.886
ao,oaa
34.483
204,658
29,571
326,315
4.64
296,636
355,901
EXPRESS MAIL
0
MAILGRAMS
0
PERIODICALS MAIL:
lNCOUNN
OUTSIDE COUNTY:
REGULAR
SPECIAL NONPROFIT
CLASSROOM
DOMESTIC MAIL FEES
TOTAL PERIODICALS
STANDARD MAIL (A):
SINGLE-PIECE
REGULAR - NONAUTO PRESORT
REGULAR-AUTOPRESORT
ENHANCED CARRIER ROUTE
NONPROFIT - NONAUTO PRESORT
NONPROFIT-AUTO PRESORT
NONPROFIT ENHANCED CARRIER ROUTE
DOMESTIC MAILING FEES
TOTAL STANDARD MAlL (A)
STANDARD MAIL (8):
PARCEL POST
SOUND PRINTED MAlTER
SPECIAL STANDARD
LIBRARY MAIL
DOMESTIC MAIL FEES
TOTAL STANDARD MAIL (6)
LOWER 05% UPPER 05%
CONFIDENCE CONFIDENCE
LIMIT 21
LIMIT 21
0
Attachment to UPBAtBPST4-6 Response
TABLE 2
(CONTINUED)
FISCAL YEAR 1006 DRPW PIECES ESTtMATES
AND ASSOCIATED CONFIDENCE UMlTS
--SERVlCE CATEGORY
U.S. POSTAL SERVICE MAIL
FREE MAIL FOR THE BLIND AND HANDICAPPED
TOTAL DOMESTIC MAIL
359.385
396,687
63,160
4.58
48.396
57.942
3.08
99.63
4.12
3.86
60.54
36.857
0
255,824
219,306
0
41.593
2
300,771
255.206
1
3.65
515,091
594,469
16.87
27.03
767
533
1,460
1,734
30.37
15.71
2
I.558
7
2,945
59.337.aai
0
39,226
1
278.296
237,256
1
0
554.780
USPS SPECIAL SERVICE TRANSACTIONS
REGISTERED TRANSACTIONS:
CERTIFIED TRANSACTIONS
RETURN RECEIPTS
SPECIAL DELIVERY TRANSACTIONS
SPECIAL HANDLING TRANSACTIONS
TOTAL
0
1,114
1,133
0
4
2,251
2l LOWER LIMIT = EST. PI
UPPER LIMIT = EST. PIECES + (1.97 x EST. STD. ERROR)
91 N/C-NOT COMPUTED
2
UPPER 05%
CONFIDENCE
LIMITvZw--
2.53
5,962
SPECIAL AND OTHER SERVICES:
REGISTERED
INSURANCE
COLLECT ON DELIVERY
CERTIFIED
RETURN RECEIPTS
SPECIAL DELIVERY
MONEY ORDERS
SUBTOTAL
LOWER 05%
CONFIDENCE
--LIMIT Y
378,136
50.331.a79
TOTAL INTERNATIONAL MAIL
TOTAL ALL MAIL
C.V. II OF
ESTIMATE
PERCENT
PIECES
jjgiJS)
I-KY
NIC
N/C
Attachment to UPSAJSPST4-6 Response
TABLE 3
FISCAL YEAR 1996 DRPW WEIGHT ESTtMATES
AND ASSOCtATED CONFIDENCE UMITS
SERVICE CATEGORY
C.V. II OF
ESTIMATE
PERCENT
WEIGHT
(I ,ooos)
FIRST-CLASS MAIL:
SINGLE-PIECE L!ZlTERS. FLATS, AND IPPS
NONAUTO PRESORT LEITERS. FLATS, AND IPPS
AUTO PRESORT LElTERS AND FIATS
AUTO CARRIER ROUTE PRESORT LElTERS
SINGLE-PIECE CARDS
NONAUTO PRESORT MAlLlNG CARDS
AUTOPRESORTCARDS
AUTO CARRIER ROUTE PRESORT CARDS
DOMESTIC MAIL FEES
TOTAL FIRST-CLASS
PRIORITY MAIL
DOMESTIC MAIL FEES
TOTAL PRIORITY
LOWER 05% UPPER 05%
CONFIDENCE CONFIDENCE
LlMlT2/
_
LIMITa
2,563,027
1,186
4,635
6
18.559
0
0
0.41
Il.54
5.46
61.48
1.50
09.73
73.29
2.562.270
017
4,318
0
18,013
0
0
2,603.784
1,454
5,353
12
19.m
0
1
2,807,612
0.40
2,567,169
1,963,492
1.22
I,016541
2,010,443
1.963,492
122
1.916,541
2,010,443
5.05
25,257
30,807
28,032
6.06
25,257
30.807
411,253
72.986
307,168
63,105
2.26
6.oa
2.32
3.75
392.875
63.002
293.200
49,202
429,631
62.973
321,135
57.008
644,514
1.69
013,230
875.7998
; 2.626056
0
EXPRESS MAIL
MAlLGRAMS
PERIODICALS MAIL:
IN-COUNTY
O~~UlDE&OUNN:
SPECIAL NONPROFIT
CLASSROOM
DOMESTIC MAIL FEES
TOTAL PERIODICALS
STANDARD MAIL (A):
SINGLE-PIECE
REGULAR - NONAUTO PRESORT
REGULAR-AUTO PRESORT
ENHANCED CARRIER ROUTE
NONPROFIT - NONAUTO PRESORT
NONPROFlT -AUTO PRESORT
NONPROFIT ENHANCED CARRIER ROUTE
DOMESTIC MAILING FEES
TOTAL STANDARD MAIL (A)
28,032
0
ii
0
0”
STANDARD MAIL (6):
PARCEL POST
BOUND PRINTED MAllER
SPECIAL STANDARD
LIBRARY MAIL
DOMESTIC MAIL FEES
TOTAL STANDARD MAIL (6)
1
Attachment to UPSlUSPST4-6 Response
TABLE 3
(CONTINUED)
FISCAL YEAR 1096 DRPW WEIGHT ESTlMATES
AND ASSOClATED CONFIDENCE UMITS
SERVICE CATEGORY
C.V. I./ OF
ESTIMATE
WEIGHT
(1 ,wq ------ PERCENT
LOWER 05% UPPER 05%
CONFIDENCE CONFIDENCE
LIMIT 2/
LlMlT2/--
U.S. POSTAL SERVICE MAIL
67,462
3.65
81205
03,719
FREE MAIL FOR THE BLIND AND HANDICAPPED
27,190
4.45
24,819
29,562
5.556,303
lVC?J
a.131
NIC
TOTAL DOMESTIC MAIL
TOTAL INTERNATIONAL MAIL
TOTAL ALL MAIL
5566.434
OR / EST. WEIGHT)
?I LOWER LIMIT = EST. WEIGHT - (1.07 x EST. STD. ERROR)
UPPER LIMIT = EST. WEIGHT + (1.97 x EST. STD. ERROR)
3/ N/C - NOT COMPUTED
2
NIC
DECLARATION
I, Bradley V. Pafford, hereby declare under penalty of perjury that the foregoing
answers are true and correct to the best of my knowledge, info
d belief.
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.
/L 1, l&k.
Kenneth N. Hollies
475 L’Enfant Plaza West, S.W.
Washington, D.C. 20260-l 137
(202) 266-3063 Fax -5402
February 4,200O