Docket No. R2013-10

PRC Library Reference PRC-LR-R2013-10/1

Compliance Calculations for First-Class Mail

This Library Reference contains files which calculate the aggregate change in rates for First-Class Mail with and without the implementation of Full Service IMb requirements. It also compares worksharing discounts to corresponding avoided costs for First-Class Mail.

The Excel file CAPCALC-FCM-R2013-10 IMb PRC.xls presents the calculation of the aggregate change in rates for First-Class Mail products and the First-Class Mail class, demonstrating the impact of the Postal Service’s Docket No. R2013-10 proposed rates and the implementation of the Full Service IMbrequirements. This Excel file demonstrates that if the Full Service IMb requirements are implemented, the proposed rates for First-Class Mail will not be in compliance with the 1.696 percent annual limitation. The Excel file CAPCALC-FCM-R2013-10 PRC.xls presents the calculation of what the aggregate change in rates for First-Class Mail products and the First-Class Mail class, assuming the Postal Service chooses not to implement the Full-service IMb requirements in conjunction with its Docket No. R2013-10 rate proposals.

In its calculation of the aggregate change in rates for First-Class Mail, the Commission made the following changes[1] to the Postal Services’ workpapers for First-Class Mail:[2]

  • Volumes and rates for the Branded Color Mobile Technology Promotion and the Mail and Digital Personalization Promotion are reflected in the calculation of the price change.
  • Promotional volume figures are taken from ChIR4.Qu5.Revised.Response.xls.
  • Promotional volumes are distributed to rate categories using hybrid billing determinants.
  • Volumes and rates for the Emerging Technology Promotion are reflected in the calculation of the price change.
  • Promotional volume figures are taken from ChIR4.Qu5.Revised.Response.xls.
  • Promotional volumes are distributed to rate categories using hybrid billing determinants.
  • Current rates applied to the promotional volume are the discounted Docket No. R2013-1 rates.
  • Proposed rates applied to the promotional volume are the non-discounted Docket No. R2013-10 rates.
  • Volumes and rates for the Earned Value Reply Mail Promotion are reflected in the calculation of the price change.
  • Promotional volume figures are taken from ChIR4.Qu5.Revised.Response.xls.
  • Promotional volumes are distributed to rate categories using hybrid billing determinants.
  • Proposed rates applied to the promotional volume reflect a 2-cent discount.
  • The classification change for single-piece residual letters is reflected in the calculation of the price change. See Response to CHIR No. 8, question 1, part f. and ChIR8.Qu1.Response.xls.
  • Billing Determinants are updated to include Picture Permit Imprint volumes. See Response to CHIR No. 4, question 2.
  • In workbook tab “Presort”, cell D48 (D35 in the Postal Service’s workpapers) is updated to correct a cell reference error.. SeeResponse to CHIR No. 6, question 1, part a.
  • The revenue from Round-Trip DVD mailers is distributedto the applicable products.
  • In workbook tab “Quarterly BDs,” cell E11 is updated to contain the corrected value. SeeResponse to CHIR No. 6, question 1, part b.

[1]The changes are implemented in both Excel files—CAPCALC-FCM-R2013-10 IMb PRC.xls and CAPCALC-FCM-R2013-10 PRC.xls.

[2] See USPS-LR-R2013-10/1 - Errata filed October 18, 2013