, , BEFORETHE POSTAL RATE COMMlSSlON WASHINGTON, D.C. 20266-0001 POSTALRATE AND FEE CHANGES,2001 i No\ 5 L\ 33 Pit ‘01 , phiE ~~~.MGCiC?I w;$-,~ THESECRE,AHY Docket No. R2001-1 RESPONSE OF UNITED STATES POSTAL SERVICE WITNESS MOELLER TO QUESTION 6 OF PRESIDING OFFICER’S INFORMATION REQUEST NO. 2 The United States Postal Service hereby provides the responses of witness Moeller to Question 6 of Presiding Officer’s information Request No. 2, filed on October 17,200l. The question 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 475 L’Enfant Plaza West, S.W. Washington, D.C. 20260-I 137 (202) 268-2998; Fax -5402 November 5,200l RESPONSE OF UNITED STATES POSTAL SERVICE WITNESS MOELLER TO PRESIDING OFFICER’S INFORMATION REQUEST 6. Please provide workpapers. in support of Exhibits USPS-28A, USPS-28B and USPS-28C, that show for each mail category and special service the following statistics and their source: (a) mail volume, (b) postage, (c)fees, (d) total revenue, and (e) revenue per piece. The requested workpapers should have a similar structure as the workpapers submitted by Postal Service witness Mayes in support of her Exhibits USPS-32A, USPS-32B and USPS-32C in Docket No. R2000-1 (See response to POIR No. l/3 in Docket No. R2000-1). RESPONSE: The attached pages include the revenue data incorporated into Exhibits USPS-28A, USPS-28B, and USPS-28C. in the same format and detail presented by witness Mayes in her response to POIR No. I, Question 4. in Docket No. R2000-1. attachment correspond to Exhibit USPS28A: Pages l-2 of the pages 3-4 correspond to Exhibit USPS- 288; pages 5-6 correspond to the FY2002 figures presented in Exhibit USPS-28C; page 7-8 correspond to the FY2001 figures presented in USPS-28C. The volume figures are from the Before and After Rates volume forecasts (USPS-LR-J-125, Table 1252), and USPS-LR-J-109, WP-3, WP-4. WP-7, WP-10. Table 125-1, and ~esp~lse of Witness Moeller (USPS-T-28) TO POIR No. 2. Question 6 Attachment. Page 1 Of 8 SUMMARY OF REVENUES FISCAL YEAR 2003 - BEFORE RATES (thousands) MAIL SERVICE First-Class Mail Letters - Single Automated and Carrier Route Non-Automation Presort Total Worksharing Total Letters/Flats/Parcels Stamped Cards Post Cards - Single Automated and Carrier Route Post Cards Non-Automated Presort Cards Total Worksharing Cards Total Cards Business Reply Fees Domestic Mail Fees Total First Class Priority Mail Priority Mail Domestic Mail Fees Total Priority with pick “P fee) Volume Postage 47.899389 47.619273 3.679.940 51.299.213 99.198,602 182.342 2.520.666 2.506.237 424.530 2.930.767 5.633.776 20,619.369 13.262.340 1.335180 14.597.520 35,216.889 36,292 544,170 417,766 80.315 498.081 1.080,543 166,639 53.290 36.517.361 36.297.432 104.832.378 postage= 1.257,064 5.824.103 1.169 5,825.272 77,239 1.145.263 2,725 1,131 855.781 79.783 1.959,377 58.942 7.163.763 10.037.863 postage= 336,539 14.972 1.925.780 18.241 2,375,315 2.357.074 Commercial Regular Enhanced Carrier Route To:ai Commercial 48.424.553 33.873.784 82.298.337 Nonprofit Nonprofit Enhanced Carrier Route Total Nonprofit Express Mail Mailgrams Periodicals In-County Outside County Nonprofit Classmom Regular-Rate Domestic Mail Fees Total Periodicals 1.257.064 Postage and Fees 184.032 20.803.401 13.262.340 1.335.180 14.622,580 35.425.981 38,365 553,512 417.766 80.315 499,503 1.091.380 25.060. 209,092 73 9.342 1,422 10.837 (166.639) (53,290) ReVeflUe per piece 0.434315 0.278508 0.362827 0.285045 0.357122 0.216402 0.219590 0.166691 0.189186 0.170434 0.193721 0 0 1169 (1.169) 0 0 1,555 36.517.361 0.348340 5.825.272 5.825.272 4.634032 1.145.263 14.827434 4.634032 1,131 0.415000 81,338 0.095045 3,561 107 13.018 (18.241) 0 340,100 15,079 1.938.798 0.173575 0.255830 0.270640 2.375.315 0.236635 10.465.298 5.338.299 15.803.597 18.896 13.218 32.115 10.484.194 5,351.517 15,635.712 0.216506 0.157984 0.192418 11.943.287 3.252.519 15.195.806 1,524.051 293,537 1.817.588 49.034 13.353 62,387 1,573.085 306.890 1.879.975 0.131713 0.094355 0.123717 97,494.143 67,338 27,164 17.715.687 (67;338) (27,164) 0 17.715.687 0.181710 Standard Mail A Bulk Mailing Fees Domestic Mail Fees Total Standard Mail A Response of Wit”ess Moeller (USPS-T-28) To POIR No. 2. Question 6 Attachment, Page 2 of 8 SUMMARY OF REVENUES FISCAL YEAR 2003 (continued) (thousands) MAIL SERVICE Package Services Parcel Past Deslination Entry Inter-BMC Intra-BMC Total Parcel Post Bound Printed Matter Media Mail Library Rate Domestic Mail Fees Special Handling Parcel Airlift Fees Package Services Volume 336,136 42,557 26,941 405,634 594,824 159,100 27,111 Free-for-the-Blind International postage Terminal & Transit Fees. etc Total Delivery Confirmatior Money Orders Return Receipts Stamped Cards Stamped Envelopes BoxfCaller Service Subtotal Other Total Total Mail 8 Services 2.186.800 1.842805 46.859 0 0 0 0 65.766.829 1.289.500 1593.492 207,572 11.758 1.892.822 216.577.924 67.659.651 0 65.766.829 11,756 0 (I 1.758) 0 0.305482 1.605.250 207,572 1.244862 0 1892.622 1.467873 0 67.659.651 0.312403 231.804 232,023 182.342 400.000 17:232 1.662.471 93,555 595.787 136.607 17.700 38.061 298.219 352.113 3,647 16.102 746:319 2,298,110 0 0 0 0 0 0 0 0 0 0 0 93,555 595,787 136.607 17.700 38.061 298.219 352.113 3.647 16.102 746:319 2.296.110 1662.471 2.325.420 0 2.325.420 8.897678 2.100004 2.128987 5.709656 0.160201 1.286511 1.517577 0.020001 0.040256 43.309098 1.362346 n/a 1.398773 216.577,924 69.985.071 0 69935.071 0.323140 Revenue Forgone Income * * Money order revenues include interest of 51,334 $ 0 0 0 Other Income Total. all items (8) 0 0 10,515 203.708 64,165 3.100 lW3UEIllCe COD (61) 3.038601 1.083908 1.640530 1.766832 0 0 0 Special Services Registry Certified Mail 1.232.559 644,734 261,009 48.498 0 0 1.289.500 Total All Mail 557 820 340 (I.,::, Rl?Vt?“Ue per piece 353,464 215.288.424 Total Domestic Mail Postage and Fees Fe& 1.232.002 643.914 260.661 46.440 1,714 61 8 2.186.600 - 1.186.669 Total USPS Penalty Mail Interest and Investment Postage 216.577.924 589,816 0 569.616 30.657 0 30.857 (22,434) 0 (22,434) 70.5e3.310 0 70.583.310 (this amount has been removed from ‘“investment income” above) 0.325903 Response of Witness Mueller (USPS-T-28) To POIR No. 2. Question 6 Attachment, Page 3 of 8 AFTER RATES SUMMARY OF REVENUES FISCAL YEAR 2003 (thousands) Vol”“le MAIL SERVICE First-Class Mail Letters - Single Automated and Carrier Route Non-Automation Presort Total Worksharing Total Letters/Flats/Parcels Stamped Cards Post Cards - Single Automated and Carrier Route Post Cards Non-Automated Presort Cards Total Worksharing Cards Total Cards Business Reply Fees Domestic Mail Fees Total First Class Priority Mail Priority Mail Domestic Mai, Fees 46.865.402 47.742.776 3.579.306 51.322.082 96.167.484 170.412 2.454.000 2.426.214 216,053 2.642.267 5.266.679 103.454.162 postage= 21.661.130 14.511.388 1.450.367 15.961,755 37,622.885 39,195 580,418 441.846 45,607 487.455 1.107.066 202.048 60.385 38.992.386 38.729.953 Fees 220,695 28.991 249.607 79 11.186 1.482 12.746 (202.048) (60.385) 1.417 (1,417) Postage and Fees 21.881,825 14,511,388 1.450.367 15.990.746 37.072.572 39,274 591,604 441,848 45,607 488.937 1,119.814 Revenue per piece 0.466908 0.303949 0.405209 0.311576 0.385717 0.230464 0.241077 0.182114 0.211092 0.185044 0.212622 0 0 38.992.386 0.376905 6.200.084 5.259850 6.200.084 5.259850 1.178.757 6.198.666 1,417 6.200.084 69.911 1,133.705 1.133.705 16.216333 2,725 1,131 1.131 0.415000 853,535 80.886 1,640 82.526 0.096687 1.94o.z25 58.335 7.110.414 3.727 112 13.658 (19.137) 373.984 16.688 2.120.928 0.192753 0.286074 0.298285 9.962.508 postage= 370;?57 !6;$76 2,107.270 19.137 2.594.126 2.574.989 2.594.126 0.260389 Commercial Regular Enhanced Carrier Route Toial Commercial 47,296,185 33,125,689 80,421.874 11 ,Oi8.040 5.541,973 16.560.013 19,537 13.683 33,220 11.037,577 5.555.656 16.593.233 0.233371 0.167714 0.206327 Nonprofit Nonprofit Enhanced Carrier Route Total Nonprofit 11.882.923 3.236.397 15.119,320 1.611.177 309,444 1,920.621 57.887 15.766 73,653 1,669,064 325,210 1.994.274 0.140459 0.100485 0.131902 (80,203) (26,670) 95.541.195 80.203 26.670 18,587.507 18.587.507 0.194550 Wh Total Priority Express Mail Mailgrams Periodicals In-County Outside County Nonprofit Classrwm Regular-Rate Domestic Mail Fees Total Periodicals Standard pick “II fee’ 1.178.757 postage Mail A Bulk Mailing Fees Domestic Mail Fees Total Standard Mail Response of Witness Mueller (USPS-T-26) To POIR No. 2. Ouestion 6 Attachment, Page 4 of 8 AFTER RATES SUMMARY OF REVENUES (thousands) MAIL SERVICE Package Services Parcel Post Destination Entry Inter-BMC Intra-BMC Total Parcel Post Bound Printed Matter Special Rate Library Rate Domestic Mail Fees Special Handling Parcel Aidift Fees Package Services Total USPS Penalty Mail Free-for-the-Blind Total Domestic Mail International Postage Terminal & Transit Fees, etc. Total Total All Mail Special Services Registry Certified Mail Insurance COD Delivery Confirmation Money Orders * Return Receipts Stamped Cards Stamped Envelopes Box/Caller Service Subtotal Other Total Total Mail 8 Services Postage 314,684 34,918 21,930 371,533 588,557 156.641 27,047 353,484 0 46,659 0 1.205,533 1.205.533 1.616.900 267,572 11:4&l 1.917.956 212.960.913 71.645.984 0 0 1.202.566 695,754 270.795 49,972 0 W) 0 0 (9) 2.219.090 0 Rt?VtXlUe per piece 3.236775 1.162135 1.706973 1 .a47568 1.936754 0 0 0 0 0 69.728.028 0.329286 1.630,364 287.572 1.352416 11,464 0 (I 1,464) 0 0 1.917.956 1.590961 0 71.645.984 0.336428 229,607 221,638 170,412 400,000 17,232 1.724.168 98,550 696,629 144.397 17,700 34,636 303,574 394,585 3.408 16,102 654,712 2,564.294 0 0 0 0 0 0 0 0 0 0 0 96.550 696,629 144.397 17;700 34,636 303,574 394,585 3,408 16.102 654.712 2.564.294 1.724.168 2.595.105 0 2.595.105 9.538959 2.300001 2.336544 5.709656 0.112761 1.322144 1.780309 0.019999 0.040256 49.599184 1.407264 n/a 1.505135 212.960.913 74.241.069 0 74.241.069 0.348614 Revenue Forgone Interest and Investment Income + * Money order revenues include interest of $ 50.848 568 674 403 (1,82, 69.726.028 211.755.360 10,331 302.662 61.800 3,100 Postage and Fees Fees 1.202.000 694.680 270,393 49,911 1,635 62 9 2.219.090 1.145.778 Other Income Total, all items - FISCAL YEAR 2003 (continued) 212,960.913 589.816 0 589,816 30.657 0 30.857 (21,948) 0 (21.948) 74.839.814 (this amount has been removed from “investment 0 74.639.814 income” above) 0.351425 Response of Witness Mueller (USPS-T-28) To POIR No. 2. Question 6 Attachment. Page 5 of 8 SUMMARY OF REVENUES FISCAL YEAR 2002 (thousands) MAIL SERVICE Volume First-Class Mail Letters - Single Automated and Carrier Route Non-Automation Presort Total W&sharing Total Letters/Flats/Parcels Stamped Cards Post Cards-Single Automated and Carrier Route Post Cards Non-Automated Presort Cards Total Worksharing Cards Total Cards Business Reply Fees Domestic Mail Fees Total First Class Priority Mail Priority Mail Domestic Mail Fees Total Priority (with pickup fee rev) 49,251,920 45173.742 3,577.057 48.750.799 98.002.718 179,205 2.479.306 2.368.428 462,957 2.831.385 5.489.897 103.492.615 postage 21.202,002 12;5B4,908 1.297.852 13.662.760 35.084,762 37,633, 535,233 394,644 87,565 482,229 1.055.095 164,476 52,606 36.356.939 36.139.857 1,186,878 5,498,924 1,104 5.500,028 72,605 1.076.552 3,110 1.291 866.869 60.817 2.020,66$ 60.786 7.133.125 10,081.444 postage= 347,ow !??w 1.917.585 18.317 2,379.208 2.360.891 Commercial Regular Enhanced Carrier Route Total Commercial 45,070,344 32.345.535 77.415.879 Nonprofit Nonprofit Enhanced Carrier Route Total Nonprofit Express Mail Mailgrams Periodicals In-County Outside County Nonpmfit Classroom Regular-Rate Domestic Mail Fees Total Periodicals 1.186.878 Postage and Fees Postage 182.710 24.039~ 206,749 72 8,874 21.384.712 12.584.908 1.297.652 13.906.799 35.291.511 37,705 544,107 394,644 87,585 483.615 1.065.427 1,386 10,332 (164,476) 0 (52,606) 0 0 36,356.939 1104 (1,104) 0 0 1.575 R@X?nlIe per piece 0.434190 0.278589 0.362827 0.285263 0.360107 0.210399 0.219460 0.166627 0.189186 0.170805 0.194071 0.351300 5.500.028 4.634030 5.500,028 4.634030 1.076.552 14.827572 1,291 0.415000 82,392 0.095045 3,671 110 12.960 (18.317) 0 350.720 15.550 1.930.545 0.173567 0.255825 0.270645 2.379.208 0.235999 9.761,493 5.097,247 14.858.740 17,588 12.622 30,210 9,779.081 5.109.869 14.688.950 0.216974 0.157978 0.192324 11.687.265 3.197.576 14.884.842 1,501,205 286,532 1,789,737 47,983 13.128 61,110 1.549.188 301,660 1,850.847 0.132553 0.094340 0.124344 92.300.721 65,603 '25.717 16.739.797 (65.603) (25.717) 0 16,739.797 0.181361 Standard Mail A Bulk Mailing Fees Domestic Mail Fees Total Standard Mail A Respcase of Witne55 Me&r To POIR No. 2. Question 6 Attachment. Page 6 of 8 (USPS-T-28) SUMMARY OF REVENUES FISCAL YEAR 2002 (continued) (thousands) MAIL SERVICE Package Services Parcel Post Destination Entry Inter-BMC Intra-BMC Total Parcel Post Bound Printed Matter Special Rate Library Rate Domestic Mail Fees Special Handling Parcel Airlift Fees Package Services Total USPS Penalty Mail Free-for-the-Blind Total Domestic Mail International Postage Terminal 8 Transit Fees. etc. Total Total All Mail Special Services Registry Certified Mail lIlSUWlC~ COD Delivery Confirmation Money Orders * Return Receipts Stamped Cards Stamped Envelopes Box/Caller Service Subtotal Other Total Total Mail 8 Services Volume Postage and Fees Postage 302,207 47.017 29,766 378.991 579,223 154,947 26,392 1.190.274 630.502 253.057 47.156 1,650 57 8 2.123.504 1.139.553 Revenue per piece 522’ 799 339 (1.6;:) 1.190.796 631,301 254,196 47.212 0 (57) 0 0 (8) - 0 2.123.504 1.863453 367,452 0 0 0 0 45,319 0 0 0 0 208.689.696 64.177.319 1.249.492 1.249.492 1.544.051 283.203 10,910 1.838.164 209.939,188 66.015,483 0 0 11,151 273,126 64.541 3,266 0 64.177.319 0.307525 1.554.961 283,203 1.244475 10,910 0 (10,910) 0 0 1.838.164 1.471129 0 66,015.483 0.314450 230.767 225,486 179,205 400.000 17;064 1.616.898 99.223 573,565 137.403 18,646 32,542 296,885 342,192 3.584 16.102 738:366 2.258.509 0 0 0 0 0 0 0 0 0 0 0 99,223 573,565 137.403 18,646 32,542 296,885 342,192 3,584 16.102 738:366 2.258.509 1.618.898 2.285.311 0 2.285.371 8.898472 2.099999 2.128941 5.708260 0.151857 1.286514 1.517575 0.019999 0.040258 43.270403 1.395090 n/a 1.411683 209.939,188 68.300.854 0 68.300.854 0.325336 Other Income 497.020 0 497.020 Revenue Forgone 47,619 0 47.619 Interest and Investment Income * (22,004) 0 (22,004) Total, all items ’ Money order revenues include interest of 51,104 $ 3.142020 1.089909 1.640536 1.788849 209.939.188 68,8i3.489 (this amount has been removed from “investment 0 68.823.489 income” above) 0.327826 Response of Witness Moeller (USPS-T-28) To POIR NO. 2. Question 6 Attachment, Page 7 of 8 SUMMARYOFREVENUES FISCAL YEAR 2001 (thousands) MAIL SERVICE First-Class Mail Letters - Single Automated and Carrier Route Non-Automation Presort Total Worksharing Total Letters/Flats/Parcels Stamped Cards Post Cards - Single Automated and Carrier Route Post Cards Non-Automated Presort Cards Total Worksharing Cards Total Cards Business Reply Fees Domestic Mail Fees Total First Class Pdaity Mail Priority Mail Domestic Mail Fees Total Priority with pickup fee Volume Postage Fe& 50.952.604 42.854.498 3.725.435 46.579.933 97.532.537 210.932 2.477.585 2.295.830 484,513 2.780.344 5.468.860 21.467.815 11.726.926 1.334.177 13.061.103 34.528.918 46,138 516,873 364,358 88,242 452,599 1,015.611 155.790 50,214 35.750.532 35.544.528 174,354 103.001.397 postage 1.162.477 5.137.890 1,041 5.138,930 70,656 1.022,894 3,438 1,539 875,375 79,283 2.094.051. 64,269 7.161.039 10.194.734 postage= 350.119 16,14q 1.811,236 18,186 2.274.964 2.256.778 Commercial Regular Enhanced Carrier Route Total Commercial 44,465,086 31.499.436 75.964.522 Nonprofit Nonprofit Enhanced Carrier Route Total Nonprofit Express Mail with pickup fee Mailgrams Periodicals In-County Outside County Nonprofit Classroom Regular-Rate Domestic Mail Fees Total Periodicals 1.162.477 Postage and Fees 21.642.169 11.728.926 1.334.177 13.083.196 34,725,365 46,218 525,041 364,358 88,242 453,908 1.025.167 22,093 196.447 80 8,167 1,309 9,556 (155,790) 0 (50,214) 0 0 35.750.532 1041 (1.041) 0 0 1.562 ReK?llue per piece 0.424751 0.273645 0.358126 0.280876 0.356039 0.219116 0.211916 0.158704 0.182124 0.163256 0.187455 0.347088 5.138.930 4.420672 5.138.930 4.420672 1.022.894 14.477087 1,539 0.447674 80,845 0.092355 3,736 115 12,775 (18,186) 0 353,855 16.254 1.824.010 0.168981 0.252910 0.254713 2.274.964 0.223151 9,276.679 4.860.859 14.137.538 17,044 12.074 29,117 9293.722 4.872.933 14.166.656 0.209012 0.154699 0.186490 11.413.503 3.176.224 14.589.727 1,425.951 265,203 1.691.154 44.199 12,300 56,498 1.470.150 277,502 1,747.652 0.128808 0.087369 0.119786 90.554.249 60.397 i5.218 15.914.308 (60.397) i25.218) 0 15.914.308 0.175743 Standard Mail A Bulk Mailing Fees Domestic Mail Fees Total Standard Mail A Response of Witness Moeller (USPS-T-28) TO POlR No. 2. Question 6 Attachment. Page 8 Of 8 SUMMARY OF REVENUES FISCAL YEAR 2001 (continued) (thousands) MAIL SERVICE Package Services Parcel Post Destination Entry Inter-BMC Intra-BMC Total Parcel Post with pickup fee Bound Printed Matter Special Rate Library Rate Domestic Mail Fees Special Handling Parcel Airlift Fe& Package Services Total USPS Penalty Mail Free-for-the-Blind Volume 262,237 54,200 36,259 352,695 577.689 153.075 24.916 International postage Terminal 8 Transit Fees. etc. Total 1.108.574 0 0 2.008.490 1.811777 0 44,450 0 0 0 0 62.111,656 1.486.913 276,137 9,717 1.772.767 63884,423 0 62.111,656 0.300751 1.496.630 276.137 1.266318 9.717 0 (9,717) 0 1.499962 0 63,884.423 0.307575 101.897 514,467 130.440 17,943 28.306 195.174 3391472 8.580551 1.650636 2.039714 5.566602 0.154315 0.830085 1.460715 15.110 694,629 2,037.437 2.063.660 0.037774 41.127725 1.245515 n/a 1.261546 235.125 232,401 210,932 400,000 16.890 1.635.819 15,110 694,629 2.037.437 1.635.819 2.063.660 0 207.703.678 65.948,084 Income * 207.703.678 101.897 514.467 130,440 17,943 28.306 195.174 339,472 0 1.772.767 0 0 0 0 0 0 0 0 0 0 0 11 .a75 277,995 63.950 3,223 Revenue Forgone * Money order revenues include interest of $ (30) (8) 0 3.183220 1.019034 1.656955 1.736143 0 207.703.678 Total. all items 1,122.706 588.868 253,639 43.257 0 0 Other Income Interest and Investment 438’ 798 339 (1.5:) 0 1.181.875 Total Mail & Services 1.I 22,268 5&3.0!30. 253,300 43,207 1.587 30 Rl?Vl?llUe per piece 381.027 0 0 Special Services Registry Certified Mail Insurance COD Delivery Confirmation Money Orders * Return Receipts rev included in FCM Stamped Cards Stamped Envelopes BoxfCaller Service Subtotal Other Total Postage and Fees 2.008.490 1.181.875 Total All Mail Fe& 8 206.521.803 Total Domestic Mail Postage 0 65,948.064 295.706 0 295.706 66.888 0 66,888 33,300 0 33,300 66.343.978 0 66.343.978 net out of Investment Income above if added to MO revenue 0.317510 0.319416 DECLARATION I, Joseph D. Moeller, declare under penalty of perjury that the foregoing answers are true and correct, to the best of my knowledge, belief. Dated: itLb,b(~~ 5 2.3% , I information, and 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. /&.q Michael T. Tidwell 475 LEnfant Plaza West, SW. Washington, D.C. 20260-I 137 November 5.2001 -) &bz4?T
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