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
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