BEFORE THE
POSTAL RATE COMMISSION
WASHINGTON,
DC. 20268-0001
POSTAL RATE
AND
FEE CHANGES, 2001
itEcEIVE[)
ah 21 5 17 PM ‘01
K:ci:: ;‘;r,~ ,~,
:; ~ .l: :
Ci~(;;:!~~,~
: ; _i ,::: ;‘,;.,;
Docket No. R2001-1
I
NOTICE OF UNITED STATES POSTAL SERVICE OF FILING OF ERRATA TO
LIBRARY REFERENCE J-109
(November 21,200l)
The United States Postal Service hereby provides notice of the filing of errata to
Library Reference J-l 09, which include the workpapers
The errata correct minor production
of witness Mayo (USPS-T-36).
errors, and reflect the cost errata filed by witness
Patelunas on October 31, 2001.’
A summary of the changes
complete,
is attached, along with the revised pages.
revised electronic copy of Library Reference
A
J-109 is also being provided to
the Commission.
Respectfully
submitted,
UNITED STATES POSTAL SERVICE
By its attorneys:
Daniel J. Foucheaux, Jr.
Chief Counsel, Ratemaking
q.&&%
(-LJ!rA
David H. Rubin
475 L’Enfant Plaza West, S.W.
Washington, DC. 20260-l 137
(202) 268-2986; Fax -6187
November 21,200l
’ See Notice of United States Postal Service of Filing of Errata to Exhibits and
Workpapers of Witness Patelunas (USPS-T-12), filed October 31, 2001.
Summarv of revisions to USPS Librarv Reference J-109 (witness Mavo):
WP-2:
change “2” to “1” for QBRM Quarterly
Fee under Test Year After Rates transactions
change “10,578” to “5,289” for QBRM Quarterly Fee under Before Rates Volume
Current Fee revenues
change “133,466”
Fee revenues
to “128,177”
for Advance Total under Before Rates Volume Current
change “164,911”
Fee revenues
to “159,621”
” for Grand Total under Before Rates Volume Current
change “13,571” to “6,786” for QBRM Quarterly Fee under After Rates Volume
Proposed Fee revenues
change “152,732”
Fee revenues
to “145,947”
for Advance Total under After Rates Volume Proposed
change “205,930”
Fee revenues
to “199,144”
“for Grand Total under After Rates Volume Proposed
WP-5, Page 2 of 2:
change “FY 1998” to “FY 2000” in Transactions
column heading
WP-11, Page 1 of 7:
change “2” to “1” for QBRM Quarterly
column
Fee (annualized)
in the After Rates Volume
change “5,959” to “2,980” ” for QBRM Quarterly Fee (annualized)
Total Cost column
change “156,752”
Cost column
to “153,772”
in the After Rates
” for Total Business Reply Mail in the After Rates Total
change “13,571” to “6,786” ” for QBRM Quarterly Fee (annualized)
Revenue column
in the After Rates
WP-11, Page 1 of 7 (Continued):
change “205,930”
Revenue column
to “199,144”
for Total Business Reply Mail in the After Rates
change “131.4%” to “129.5%” for Total Business Reply Mail in the After Rates Cost
Coverage column
change “0.2254” to “0.2180” for Total Business
Per Piece column
Reply Mail in the After Rates Revenue
change “10,578” to “5,289” for QBRM Quarterly
Revenue column
Fee (annualized)
change “164,911”
Revenue column
to “159,621”
in the Before Rates
for Total Business Reply Mail in the Before Rates
change “0.1782” to “0.1725” for Total Business Reply Mail in the Before Rates Revenue
Per Piece column
change “26.54%” to “26.42%” for Total Business Reply Mail in the After Rates
Percentage Change column
WP-11, Page 2 of 7:
change “$4.07” to $4.06” for Total C.O.D. in the After Rates Cost Per Piece column
change “12,608” to “12,598” for Total C.O.D. in the After Rates Total Cost column
change “140.4%” to “140.5%” for Total C.O.D. in the After Rates Cost Coverage column
WP-11, Page 3 of 7:
change “$1.85” to “$1.76” for Total Insurance in the After Rates Cost Per Piece column
change “114,194”
to “108,721”
for Total Insurance
change “126.0%” to “132.3%” for Total Insurance
column
in the After Rates Total Cost column
in the After Rates Cost Coverage
WP-11, Page 4 of 7:
change “180,181” to “180,160”
column
for Total Money Orders in the After Rates Total Cost
WP-11, Page 5 of 7:
change “659,760” to “659,700”
Rates Total Cost column
for Total Boxes, Caller Service, Reserve No. in the After
change “129.5%” to “129.6%” for Total Boxes, Caller Service, Reserve No. in the After
Rates Cost Coverage column
WP-11, Page 6 of 7:
change “$7.77” to “$7.70” for Total Registry in the After Rates Cost Per Piece column
change “80,320” to “79,573” for Total Registry in the After Rates Total Cost column
change “122.7%” to “123.8%”
column
for Total Registry in the After Rates Cost Coverage
WP-11, Page 7 of 7:
change “1,944” to “1,945” for Total Special Handling in the After Rates Total Cost
column
change “378.4%” to “378.2%” for Total Special Handling in the After Rates Cost
Coverage column
change “12,978” to “12,977” for Total Stamped Envelopes
column
change “2,989,312”
change “1.10423385”
column
change “2,658,107”
to “2,982,526”
for Total in the After Rates Revenue column
to “1.10172732”
to “2,653,497”
in the After Rates Total Cost
for Total in the After Rates Revenue Per Piece
for Total in the Before Rates Revenue column
WP-11, Page 7 of 7 (continued):
change “2,764,232”
to “2,764,242”
for Total in the Before Rates Volume column
change “0.9616” to “0.9599” for Total in the Before Rates Revenue
change “14.83%” to “14.77%”
Per Piece column
for Total in the After Rates Percentage
Change column
replace footnote 7 with “Test Year After Rates volume variable cost including
contingency, USPS-T-12, Exhibit 12A, Revised 10/31/01 ,‘I
replace footnote 9 with “Test Year After Rates volume variable cost including
contingency, USPS-T-12, Exhibit 12A, Revised 1 O/31/01 .”
WP-14:
change “156,128” to 151 ,103” for Business Reply in the First Class Single
Letters/Parcels column
change “181,852”
to “176,827”
for Total in the First Class Single Letters/Parcels
column
change “8,216” to “7,952” for Business Reply in the First Class Single Cards column
change “9,228” to “8,963” for Total in the First Class Single Cards column
change “164,344”
to “159,055”
for Business Reply in the First Class Total column
change “217,635”
to “212,345”
for Total in the First Class Total column
WP-15:
change “194,971” to 188,523” for Business Reply in the First Class Single
Letters/Parcels column
change “223,671 II to “217,223”
for Total in the First Class Single Letters/Parcels
column
change “10,209” to “9,872” for Business Reply in the First Class Single Cards column
change “11,342” to “11,004” for Total in the First Class Single Cards column
change “205,180”
to “198,394”
for Business Reply in the First Class Total column
change “265,565”
to “258,779”
for Total in the First Class Total column
SPECIAL SERVICES
BUSINESS REPLY MAIL
TEST YEAR 2003
USPS-T-36
WP-2
REVISED November 21,2001
REVENUES ($000~)
TRANSACTIONS (000s)
FEES ($)
FY 2000
TEST YEAR
BEFORE
RATES
TEST YEAR
AFTER
RATES
ADVANCE DEPOSIT
(1)
(2)
(3)
QBRM WITH QUARTERLY FEE 21
QBRM WITHOUT QUARTERLY FEE 3J
QSRM -ADVANCE DEPOSIT
NON-QBRM ADVANCE DEPOSIT
NONLETrER-SIZE
PRIORITY
N/A
N/A
449,658
424,488
6,158
2,842
132,230
264.460
Ni
429,846
6,235
2,971
108
0
N/A
188
110
0
1
191
ACCOUNTING FEE
NONLETTER-SIZE MONTHLY FEE
QSRM QUARTERLY FEE
PERMIT FEE
ADVANCE TOTAL W
4/
4/
CURRENT
(4)
130,491
260.983
N/A
424,195
8,153
2,938
PROPOSED
(5)
I/
BEFORE RATES
VOLUME
CURRENT FEE
AFTER RATES
VOLUME
PROPOSED FEE
PERCENT
CHANGE
(6)
(7)
(8)
4/
4/
50.01
50.05
N/A
50.10
$0.01
50.10
$0.008
$0.08
N/A
50.10
50.01
$0.10
1,322
13,223
N/A
42,985
62
297
1,044
15,659
N/A
42,419
62
294
-20.00%
20.00%
N/A
0.00%
0.00%
0.00%
108
0
1 5/
188
$375.00
5600.00
$1,800.00
$125.00
5475.00
$750.00
$1,800.00
$150.00
41,155
29
5,289
23,814
51,446
36
6,786
28,202
26.87%
25.00%
0.00%
20.00%
128.177
145,947
31,176
269
52,741
456
883.146
835.742
824.761
87,963
735
89.073
769
87,902
760
88,699
89,842
88,663
31,445
53,198
971.844
925,584
913,424
159,821
199,144
NONADVANCE DEPOSIT
FIRST CLASS
PRIORITY
NONADVANCE TOTAL
GRAND TOTAL
II
2/
3/
41
5/
50.35
$0.35
$0.60
$0.60
Denotes the percentage change from the current fee to the proposed fee, or (Column 5 - Column 4)lColumn 4.
Assumes one-third of First-Class QBRM till shift to this category.
Assumes two-thirds of First-Class QBRM will shift to this categay.
Adjustment for census data in base year (see witness Robinson’s USPS-T-29, Attachment F.)
Calculated by taking the QBRM volume divided by the minimum annual breakeven volume for the quarterly fee (138,462). 138,462 breakeven volume was calculated by
dividing the fee of $7.200 (annualized) by the 5.2 cents per piece in fee savings (6 cents minus .8 cents).
6/ Advance total volume does not include accounting or permit fee volumes.
-.
I.
I.
71 .K%%
71.43%
SPECIAL SERVICES
INSURANCE
TEST YEAR 2003
USPS-T-36
WP-5
Page 2 Of 2
REVISED November 21,200i
REVENUES
TEST YEAR
BEFORE
RATES
FY 2000
FIRST CLASS
DOMESTIC FEES
3,800
3,900
4,000
4,100
4.200
4,300
4,400
4,500
4,600
4.700
4.800
4,900
5,000
TOTAL
INTERNATIONAL
CANADA
OTHER
TOTAL
GRAND TOTAL
TEST YEAR
AFTER
RATES
CURRENT
PROPOSED
BEFORE RATES
VOLUME
CURRENT FEE
(3)
(4)
(5)
(‘3
(2)
(1)
0
1,399
1,602
261
621
292
0
1,434
0
1,030
0
0
7.844
0
1,533
1,755
286
680
319
0
1,571
0
1.128
0
0
6,593
0
1,592
1,823
297
706
332
0
1,631
0
1,172
0
0
8,922
_
55,268.994
62,866,536
60.548,451
264,999
877,423
301.427
998,038
290.312
961,237
1,142,422
1,299,464
1,251,549
56,411.416
54,166,000
61.800,OOO
1,626/X6
46,086
1,613.411
49,899
1,546.545
48,059
1,671,132
1,663,310
1.594,604
0
0
FEES f$)
39.00
40.00
41 .oo
42.00
43.00
44.00
45.00
46.00
47.00
48.00
49.00
50.00
51 .w
39.20
40.20
41.20
42.20
43.20
44.20
45.20
46.20
47.20
48.20
49.20
50.20
51.20
AFTER RATES
VOLUME
PROPOSEDFEE
(7)
0
61,620
72,324
12,071
29,366
14,116
0
72,595
0
54,365
0
0
439,967
0
63,661
74,728
12,474
30,370
14,591
0
75,048
0
56,233
0
0
455,027
132,266,3&j
$2.59
3.57
$2.70 3l
3.73 3l
TOTAL
779,189
3,561,577
784,228
3.5@4,612
4340,765
4.368,640
5136,607,130
$143,867,823
INTERNATIONAL ADDITIONAL SERVICES 2/
RETURN RECEIPTS
0
I/ Denotes the percentage change from the current fee to the proposed fee, or (Column 5 - Column 4)lColumn 4
2l Transacfions from additional services not included in grand total.
..
.
.
.-
-
-
_
_-
_
-
-
__
(8)
0.51%
0.50%
0.49%
0.48%
0.47%
0.45%
0.44%
0.43%
0.43%
0.42%
0.41%
0.40%
0.39%
139,498,983
DOMESTIC ADDITIONAL SERVICES 2/
RETURN RECEIPTS
RESTRICTED DELIVERY
PERCENT
CHANGE
--
4.50%
4.50%
I/
E
REUSED November
21,200,
USPS-T-36. WP-14
TYSR DOMESTIC MAIL FEES DISTRIBUTION TO SUBCLASS
FISCAL YEAR 2003
(5 IN 000,
FlRST CLASS
I
LETTERS/PARCELS
Single
I
CARDS
Private
I
Single Workshare
I
Postal
WOrkShare
TOM
104,832
100.00%
Address Correction
B”si”e*s Reply
cermca,e 0‘ Mailing
Presort Permit Fae
Merch. Return Fee*
Special Handling
Total
6,502
176.827
25,060
73
8.963
1.422
PRIORITY MAIL
Address Correction
Business Reply
Cenificate of Mailing
Merch. Return Fees
Special Handling
Total
PERIODICALS
Piece* (millions)
Percent of Pieces
STANDARO MAIL
Pieces (millions)
Percent of Pieces
79
566
122
195
20,
1,169
856
8.53%
1,959
19.52%
59
0.59%
Regular
Rate
7,164
71.37%
1,495
60
1,555
3,423
138
3.561
103
4
107
12,514
503
13,01*
I”-CO”“ty
Nonprofit
Commercial-Reg
48,425
49.67%
Address Correction
Cetiiicate of Mailing
Presort permit
Special Handling
Parcel Airlift
Parcel Select Permit Fee
MWCh. Return Fees
Total
INTERNATIONAL
Ceniii.mte of Mailing
Special Handling
Other
GRAND TOTAL FEES
Parcel Post
Cl~SS,OOlll
Commercial-ECR
Nonprofit-Reg
Nonprofit-ECR
33.874
11,943
3,253
34.74%
12.25%
3.34%
13.464
5.404
4
23
18.896
PACKAGE SERVICES
Pieces (millions)
Percent of Pieces
33,328
159,055
1,961
6,326
173
6.502
212,345
9,419
3,781
3
16
13,218
wt.4
3,321
45,706
1
6
49,034
17.535
705
18.241
TOM
97,494
100.00%
904
12,447
0
2
13,353
Media
TOW
10,038
100.00%
27,108
67.333
9
4,
94.502
Library
406
34.18%
595
50.13%
159
13.41%
2,
2.28%
1.187
100.00%
273
10
565
15
43
1
51
9
51
164
557
0
81
4
192
7
240
820
64
343
11
58
962
30
192
6,
8
51
478
1,783
3
26
10
0
36
328.076
USPS-T-36, WP-15
REWSED November 21,ZOOl
TYAR WMESTlC
FfRST CLASS
I
MA,L FEES DlSTRlBUTlDN
FlSCAL YEAR 2003
(5 IN 000)
LETTERS/PARCELS
Address Correction
Business Reply
Certificate of Mailing
Presod PeRnil Fee
Merch. Return Fees
Special Handling
TOMI
CARDS
Private
i
I
Single Workshare
I
Postal
Workshare
Single
Pieces (millions)
Percent of total FCM pieces
I
TO SUBCLASS
46,865
45.30%
51.322
49.61%
170
0.16%
2.454
2.37%
2.642
2.55%
103,454
100.00%
19,606
188,523
2,025
21,470
71
1,105
188
7.120
213
7
1,027
9,872
106
28,991
79
11.004
1,482
43,279
198.394
2.336
7,437
213
7.070
258.779
7.070
217.223
10
367
PRlORlTY MAIL
Address Correction
Business Reply
Cenificale of Mailing
Merch. Return Fees
Special Handling
Total
86
750
138
229
214
1,417
854
8.57%
1.940
19.48%
58
0.5%
Regular
Rae
7,110
71.37%
Address Correction
A~~;;,ation Fees
1,575
65
1.640
3.580
147
3,727
108
4
112
13,120
539
13.65%
STANDARD MA,L
Pieces (millions)
Percent cd Pieces
Commerdal-Beg
47.296
49.50%
Commercial-ECR
33.126
34.67%
Nonprofii-Reg
Nonprofit-ECR
11,883
3.236
12.44%
3.36%
13.169
6.334
5
28
19.537
9,224
4.436
3
20
13,683
PERlODfCALS
Pieces (millions)
Percent of Pieces
Address Correction
Bulk Permit Fee
CetiiiCate 0, Mailing
Bulk Parcel Return Selvice
Total
PACKAGE SERWCES
Pi*ces (millions)
P*rcenf of Pieces
Address Correction
Cenificate of Mailing
PIesoff Pemlh
Special tkl”dli”Q
Parcel Aitii
Parcel Select PenTIn Fee
Merch. Return Fees
TCM
INTERNATlONAL
Certificate of Mailing
Special Handling
Other
GRAND TOTAL FEES
Classmom
Nonprofit
I”.CO”“ty
f8.382
755
19,137
TOM
95,541
100.00%
26.603
80.203
10
57
106,873
901
14.863
0
2
15.766
SpXifZl
BPM
Parcel Post
3,309
54.570
1
7
57,887
Total
9.963
100.00%
Library
372
32.43%
589
51.37%
159
13.85%
27
2.36%
251
11
560
18
43
1
51
9
59
187
568
0
81
5
230
7
297
874
80
403
14
61
4
1.146
lQO.QO%
934
34
230
62
9
59
577
1.906
30
10
0
40
388.153
CERTIFICATE OF SERVICE
I hereby certify that I have this day served the foregoing
participants
of record in this proceeding
in accordance
document
with section 12 of the Rules of
Practice.
%&fl.
f-l-l ‘ fL.JJ:m
David H. Rubin
475 L’Enfant Plaza West, SW.
Washington, DC. 20260-l 137
November 21,200l
upon all