Chapter 2: Our Customers

Periodic Reporting Costing Methods: Docket No. RM2008-2

On August 11, the Postal Service filed a motion regarding proposed changes in costing methodology for the fiscal year 2008 Annual Compliance Report. A technical conference took place at the PRC in which Postal Service representatives responded to questions to explain further the basis for Proposals One through Nine. The PRC issued an order on October 10 authorizing the Postal Service to make changes to the costing methodology.

Notice and Order of Proposed Rulemaking Establishing Rules for Complaints: Docket No. RM2008-3

On August 21, the PRC issued a notice of proposed rulemaking revising its rules and procedures for handling rate and service complaints filed pursuant to 39 U.S.C. §3662. The PRC’s proposed rules would establish a bifurcated framework for investigating and considering formal complaints alleging violations of law, on one hand, and more localized rate and service inquiries, on the other. The Postal Service filed its initial comments on October 7.

Periodic Reporting Rules: Docket No. RM2008-4

This rulemaking, initiated August 22, is intended to develop rules covering both the information submitted by the Postal Service as part of its Annual Compliance Report every December, and periodically throughout the year on other matters. As well as specifying the content of the required reports, the proposed rules also establish procedures by which the analytic methodologies used to develop those reports can be addressed and, if necessary, amended.

Accounting Practices and Tax Rules for Competitive Products: Docket No. RM2008-5

This rulemaking, initiated September 11, requires the PRC to prescribe rules applicable to competitive products for the establishment and application of the accounting practices and principles to be followed by the Postal Service, and the substantive and procedural rules for determining the assumed Federal Income Tax on competitive products income.

Modification of Costing Methods — Docket No. RM2008-6

This rulemaking, initiated September 12, provides an informal rulemaking proceeding comparable to Docket No. RM2008-2 to consider two more proposed changes to the costing methods approved for periodic reporting. The PRC accepted these proposals on October 22.

Other Dockets

Review of Nonpostal Services: Docket No. MC2008-1

On December 20, 2007, the PRC initiated its statutorily required review of nonpostal services. The case is still pending.

Complaint of Michael Hammond: Docket No. C2008-1

This complaint, brought by an individual mail recipient, centered on safety of delivery to a delivery receptacle served by a rural carrier. Delivery to the receptacle had been suspended for nearly a year. The Postal Service defended the actions of local postal officials, but also chose to re-commence delivery. The PRC accordingly dismissed the complaint as moot.

Complaint on Bound Printed Matter: Docket No. C2008-2

On April 2, the PRC dismissed a complaint, by an individual, that had been filed on January 3 regarding limitations on the availability of Bound Printed Matter at the retail window. The PRC found the complaint was rendered moot by the classification change made in Docket No. MC2008-3 that allows Bound Printed Matter to be paid only with a permit imprint.

Complaint of Capital One Services, Inc.: Docket No. C2008-3

Capital One Services, Inc. (Capital One) filed a complaint on June 19, seeking to obtain a Negotiated Service Agreement (NSA) with the Postal Service “that is substantively identical to the Bank of America NSA, without any further negotiation between the Postal Service and Capital One.” The PRC denied the Postal Service motion to dismiss and this case is pending before the PRC.

Public Inquiry — Service Performance Measurement Systems for Market Dominant Products: Docket No. PI2008-1

This pending Public Inquiry was opened on December 4, 2007, pursuant to the Postal Act of 2006 that the Postal Service submit to the PRC for approval any internal systems designed by the Postal Service for measuring market dominant product service performance. The PRC has solicited public comment on two drafts (November 2007 and June 2008) of a Postal Service document describing the systems it has designed. The docket is still pending.

Public Inquiry — Review of Treasury Report (Accounting Practices and Tax Rules for Competitive Products): Docket No. PI2008-2

On December 17, 2007, the Secretary of the Treasury submitted a report to the PRC containing recommendations concerning accounting principles and practices relating to competitive products and the Competitive Products Fund. Initially, the PRC began a proceeding (Docket No. PI2008-2) to solicit and consider comments from interested parties in response to issues raised in the Treasury report.

Initial comments and reply comments were filed by the parties on April 1 and May 1, respectively. Subsequently, the PRC issued proposed rules on the matters covered in the Treasury report, and initiating Docket No. RM2008-5 to consider comments.

Universal Postal Service and the Postal Monopoly: Docket No. Pl2008-3

The PRC solicited comments on universal postal service (USO) and the postal monopoly (including the Private Express Statutes and mailbox access rule). The Postal Act of 2006 requires the PRC to submit a report to the President and Congress on USO and the postal monopoly not later than December 19, 2008, and is required to consult with the Postal Service and other interested parties.