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RECEIVELI
ORDER NO. 1289
Hall 28 3 00 PM '00
POSTA,.
R&T?~‘~;,.l-.ii;:,:;!(
UNITED STATES OF AMERICA
POSTAL RATE COMMISSION
WASHINGTON, DC 20268-0001
Before Commissioners:
OFFICE OiT!,iE Si-CREIAR'r
Edward J. Gleiman, Chairman;
George A. Omas, Vice Chairman;
Dana B. Covington; Ruth Y. Goldway;
and W.H. “Trey” LeBlanc Ill
Postal Rate and Fee Changes
Docket No. R2000-1
ORDER REQUESTING THE
SUBMISSION OF EVIDENCE ON
PERIODICALS PROCESSING COSTS
(Issued March 28,200O)
On March 17, 2000, the Postal Service provided its response to Presiding
Officer’s Information
developed
Request No. 4. Based on this material, the Commission
the graphs in Attachment
A to present trends.
Two trends in particular stand out, one of which warrants further study.
inflation-adjusted
costs of processing
the pressure for rate increases.
inflation-adjusted
trend is the increase in the
Periodicals since 1993. This is a negative trend
that should be analyzed so that if possible, rates and classifications
that will assist the Service in changing
Accordingly,
evidence explaining
the Commission
The
letters are steadily declining, which has alleviated
The other pronounced
costs of processing
has
can be designed
it.
requests that Postal Service present detailed
the causes of the trend in the costs of processing
a witness qualified to respond to participants’
Periodicals
from
questions on the topic, see for example,
Docket No. R2000-1
interrogatories
-2.
MHIUSPS-T-21-1,
over flat handling operations
2. A witness with high-level managerial
would appear to be best suited to this need.
The record would also benefit from an explanation
other subclasses
well as Periodicals,
responsibility
of one other matter.
Two
with large volumes of flat mail, First-Class and Standard A regular, as
exhibited a sharp increase in unit flats processing
the base year in this proceeding.
An explanation
costs in FY98,
for this should be provided.
It is ordered:
I, The Postal Service is to provide evidence explaining the increasing
processing
Periodicals
and flats on or before April 14, 2000.
cost of
Discovery on this
testimony will be allowed through April 26, 2000.
Ma!gket P. Crenshaw
Secretary
Docket No. R2000-1
Page 1 of 4
Order No. 1289
Attachment A
Mail Processing Plus City Carrier In-Office Unit Costs
Cents per Piece, Wage Level Adjusted to FY 1989
24.0 _
First Class NonwesorI
Flat Shaoe
23.5
23.0
22.5
22.0
21.5
21.0
20.5
20.0
19.5
Standard
A Regular
8.50
8.00
7.50
7.00
8.50
8.00
5.50
-Commercial
-Nonprofit
Fiat Shape
Docket No. R2000-1
Page 2 of 4
Order No. 1289
Attachment A
Mail Processing Plus City Carrier In-Office Unit Costs
Cents per Piece, Wage Level Adjusted to FY 1989
!.50
Standard
A ECR FlatSham
!.OO
I .50
I .oo
First
1.00
0.00
9.00
8.00
7.00
6.00
5.00
4.00
3.00
Class Letter
Shape
Docket No. R2000-1
Page 3 of 4
Order No. 1289
Attachment A
Mail Processing Plus City Carrier In-Office Unit Costs
Cents per Piece, Wage Level Adjusted to FY 1989
I
7.00
Standard
A Regular
Letter Shape
8.50
8.00
5.50
5.00
4.50
4.00
3.50
,-3, 6
, 3. 7
3.00 I
I.00
i !.80
i !.80
i !.40
i !.20
i !.OO
1I.80
1I.80
1I.40
1I.20
1I.oo
:
DS
StandardA ECRLetter Shape
Docket No. R2000-1
Page 4 of 4
Order No. 1289
Attachment A
Mail Processing Plus City Carrier In-Office Unit Costs
Cents per Piece, Wage Level Adjusted to FY 1989
8.00
Periodicals
1
Reaular
Rate
1994
1995
7.75
7.50
7.25
7.00
6.75
6.50
6.25
1989
1990
1991
1992
1993
1996
1997
1998
1999