REcE\vED
BEFORE THE
POSTAL IRATE COMMISSION
WASHINGTON, D.C. 20268-0001
POSTAL RATE AND FEE CHANGES,
1997
,i lJ\’ PH ‘41
I,\> ?5
F GOYH!SSIOH
P1
pCgAL R’.;hE SECRETA
OyF\CEor
Docket No. R97-1
NOTICE OF THE UNITED STATES POSTAL SERVICE
CONCERNING THE FILING OF
ERRATA TO THE TESTIMONY OF WITNESS HATFIELD (USPS-T-25)
The United States Postal Service hereby gives notice that it is filing revised
pages of the testimony
of witness Hatfield (USPS-T-Z;)
ic, reil-ct
the correct citation to
USPS Library Reference
No. H-185 in seven places where an incorrect reference to
USPS Library Reference
H-105 appears.
of USPS-T-25,
correct references
In the following places on the revised pages
to “IJSPS-LR-H-185”
replaces incorrect references
“USPS-LR-H-105”:
Page 13
Appendix
/,
Footnote 10
II
Page 1, line 6
Pages 3, 4, and 5’; footnotes for columns 1 through 4
Page 6, footnote for row 2
Respectfully
submitted,
UNITED STATES POSTAL SERVICE
By its attorneys:
Daniel J. Foucheaux, Jr.
Chief Counsel, Ratemaking
Jm/z3wMichael T. Tidwell
475 L’Enfant Plaza West, S.W.
Washington, D.C. 20260-l 137
(202)2682998/FAX
-5402
July 25, 1997
to
REVISED 07/X/97
1
trays, the preparation
2
sorting costs associated
3
trays will receive at least one bundle sort from the ADC level to the 3-digit level.
4
characteristics
of the mail are used to determine
the bundle
with that type of mail. For example, 3-digit bundles in ADC
In Docket No. MC95-1, First-Class
Mail characteristics
data were used for the
5
development
of both the entry profiles and the bundle sorting costs. However, the mail
6
characteristics
7
requirements
for First-Class
8
classification
reform models in Docket No. MC95-1, estimates were made of how mail
9
entry characteristics
data used in Docket No. MC95-1 represented
Mail that existed before classification
would change as 61result of classification
10
support the development
11
study was conducted
12
reform.
reform.
For the post
In order to
of cost estimaltes for this docks;, il i::.‘;’ rail characteristics
to collect data in t:he post classification
reform environment.‘0
The data from this new study reflect the changes that were made in First-Class
13
presort mail entry requirements,
14
order to receive automation
15
bundles).
16
bundles.
17
or Sdigit) is determined
18
the mail entry
One major change in entry requirements
presort discounts,
Prior to classification
all mail must be prepared
reform, automation
is that in
in full trays (no
presort mail could be prepared
With this change, the presort rate that automation
in
mail receives (basic, 3-digit,
by the tray presort level as opposed to the bundle presort level.
Another significant
change in First-Class presort mail entry requirements
19
do with nona,utomation
mail preparation.
20
there are two options for preparing
21
fails certain standards
22
OCR upgradable
23
character
reader (OCR).
24
reasons:
it is non-machinable
25
cannot be run across a piece of automated
26
properties.
27
Non-readable
28
can be machinable
for automation
In the post classification
First-Class
nonautomation
c’ompatibility,
reform environment,
presort mail. If the mail
it is non-OCR upgradable.
mail is mail that would most likely not be upgraded
Mail is classified as non-OCR upgradable
or it is non-readable.
equipment
has to
Non-
by an optical
for one of two
Non-machinable
mail is mail that
because of its physical
This mail is either too thick, too wide, too tall, not properly tabbed, etc.
mail is mail that, although machinable,
‘OThe new First-Class
cannot be read by an OCR.
but not readable because the address is handwritten,
Mail Characteristics
Study is documented
in Library
Reference
Mail
the address is
USPS LR-H-185.
13
-~-
--
USPS-T-25
Appendix II
Page 1 Of 6
REVISED 07/X/97
1
2
1.
INTRODUCTION
Appendix
3
II contains the First-Class Mail characteristics
data that are used
4
throughout
5
come from a recent field study conducted
6
characteristics
7
combines those results into a summary form that is used in various places in this
a
testimony.
9
bundle sorting cost calculations
the development
of mail processing
(USPS LR-H-165).
unit costs in this testimony.
specifically to update the First-Class
Appendix
(Appendix
IV). In both cases the information
11
presort mail volume by container
12
characteristics
13
to weight the three nonautomation
Mail
II shows the results of that study and
The primary uses of the mail characteristics
10
All data
data in this testimony
Ill) and entry profile calculations
that is needed is the breakdown
presort level or container/bundle
are for
(Appendix
of First-Class
presort level. Mail
data are also used to determine the amount of non-machinable
mail and
model costs together.
14
15
16
17
16
II.
FIRST-CLASS
MAIL CHARACTERISTICS
The results of the First-Class
different types of First-Class
RESULTS
Mail characteristics
non-carrier
study are shown for six
route presort mail:
19
l
Nonautomation
presort non-OCR upgradable
mail in non-OCR trays
20
l
Nonautomation
presort OCR: upgradable
mail in non-OCR trays
21
l
Nonautomation
presort OCR: upgradable
mail in OCR trays
22
l
Automation
basic presort
23
l
Automation
3digit presort
24
l
Automation
5digit
presort
25
For the first two types of mail, the results show the volume of mail broken down into
26
container/bundle
presort levels. This is because for nonautomation
27
OCR upgradable
trays mail must be prepared in bundles before it is put into trays. The
28
results also show the average number of pieces in each bundle.
29
used to determine
bundle sorting costs in Appendix
Ill.
presort mail in non-
This information
is
First-Class
Nonautomation
Mail Characteristics
Presort
NonJXR
USPS-T-25
Appendix II
Page 3 of 6
REVISED 07/25/97
Data
Upgradable
Mail in NonaCR
VI
&Digit
Full 5-Digit Trays
Pieces
1.032.992
Trays
121
Tray Presort
3-Digit
PI
Level
PI
I41
ADC
Mixed ADC
Total
N/A
N/A
N/A
1,032.992
1.245.660
&Digit Bundles
Pieces
Pieces per package
N/A
N/A
1.103.615
31.7
66,157
16.5
55.688
27.6
J-Digit Bundles
Pieces
Pieces per package
N/A
N/A
206.411
39.1
174,265
32.4
144,661
25.1
ADC Bundles
Pieces
Pieces per package
N/A
N/A
N/A
N/A
2.651
24 5
36.526
19.0
Mixed ADC Bundles
Pieces
Pieces per package
N/A
N/A
N/A
N/A
N/A
N/A
29,253
51.1
29,253
I,31 2,026
263.273
266,550
2,874,841
Total
Pieces
ROWI,:
Cdumn
Column
Column
Column
cd”rn”
sum Of the piece “c.I”rm*
[I]: USPS LR-H-165, total
121: USPS LRH-185, total
[3]: USPS LR-H-185. total
141: USPS LR-H-185, total
(51: sum of piece “oI”nle*
1’
1.032,992
from all rows.
pkoes in Migit trays
pieces in Migk trays.
piecer in ADC toys.
pieces in mixed AM) trays.
from calUrn” 1 - 4.
First-Class
Nonautomation
Mail Characteristics
Presort
OCR Upgradable
USPS-T-25
Appendix II
Page 4 of 6
REVISED 07/25/97
Data
Mail in NowXR
Trays
III
121
Tray Presort
3-Digit
5-Digit
Full 5-Digit Trays
Pieces
163.056
I31
Level
[41
151
ADC
Mixed ADC
TOW
N/A
N/A
N/A
183.056
5-Digit Bundles
Pieces
Pieces per package
N/A
N/A
179.285
35.0
4.263
16.9
16,795
16.6
200.343
J-Digit Bundles
Pieces
Pieces per package
N/A
N/A
14.467
38.9
14,567
27.1
43,040
32.3
72,074
ADC Bundles
Pieces
Pieces per package
N/A
N/A
N/A
N/A
1.638
24.1
33.671
18.7
35.309
Mixed ADC Bundles
Pieces
Pieces per package
N/A
N/A
N/A
N/A
N/A
N/A
14,536
56.6
14.536
183.056
193,752
20.468
108.042
505,318
Total
Pieces
Row 11: Sum of the piece volumes
Column 111: USPS LR-H-185. total
Column [2]: USPS LR-H-185, total
Column 131: USPS LR-H-185. total
Column [4]: USPS LR+l-185. total
Column 151: Sum of piece volumes
from all rows.
pieas in Migk trays.
piecer in 3-dipit trays.
pieces in ADC trays.
pieocr in mixed ADC trays.
from columns 1 - 4.
--
First-Class
Mail Characteristics
Nonautomation
Presort
OCRUpgndable
USPS-T-25
Appendix II
Page 5 of 6
REVISED 07/25/97
Data
and Automatian
Presort
111
Nonautomation
Pl=MOrt
OCR-Upgradable
PI
PI
Basic
Automation
Presort
3JJigit
5-Digit Trays
281,478
J-Digit Trays
1.565.393
AADC Trays
504.094
2.201.894
Mixed AADC Trays
802.032
2.057.484
3,152.997
4,259,370
Total
Column
C&m
Column
Column
[I]: USPS
p]: USPS
131’ USPS
[4]~ USPS
LR-H-165. total
LR-H-185, total
LR-H-185, total
LR-H-185, total
pieces
pieas
pieces
pieces
I41
5-Digit
8.967.204
19.388.008
19.388.008
8,967.204
by tray prerort level.
in AADC and mixed AAIX Ws.
in 3diiti trays.
in MQil trays.
--.-
First-Class Mail Characteristics
,, Volume Summary
USPS-T-25
Appendix II
Page 6 of 6
REVISED 07/25/97
Data
First-Class nonautomation
presort
Mall in Non-OCR upgndable
tnys
Non-OCR Upgradable Mail
Non-machinable
Machinable
OCR Upgadable Mail
Total
2.674.641
1.597.340
1.277.501
505.316
3,360,159
I/
_u
3.152,997
5’
6.533,156.
1’
First-Class automation
presort
Non-carrier route automation
presort
Basic
3-Digit
5Digit
Total automation
presort
4.259,370
19.366,006
8.967.204
32.614,590
8/
Y
g/
11,
Total First-Class
39.147,746
12
trays
55.56%
13,
Non-OCR mail in non-OCR bays as P percent of nonautomation
mail
OCR mail in non-OCR brays as P percent of nonautomation
mail
OCR mail in OCR bxys as P percent of nonautomation
mail
44.00%
7.73%
46.26%
100.00%
14,
E,
161
17,
Mail in OCR upgndable
Total nonautomation
Nonmachinable
non-carrier
tray8
presort
route presort
mail as a percent
of non-OCR
Row 11: Appendix II, pa9e 3 of 6. sum of column 5.
Row g USPS LR-H-165. total nonmachinabb pieces.
Rcw Jl: Row I- row 2.
RGW+I: Appendix II, page 4 of 6. sum of column 5.
Row g: Row 1 + rcw 4.
Row E/: Appendb: II, page 5 of 6, sum of mlumn 1.
RmM7/: Rmv5+row6.
Row g: Appendb: 11,pa9e 5 of 6. sum of column 2.
Row 9/: Appendix 11,page 5 of 6. sum of mlumn 3~
Rwr j&f: Appendix II, page 5 of 6. sum Of c&mn 4.
Rcw~/: Rw6+row9+rowlO.
l?ow12/: l7wl7+row11.
RowlJ
ROwz/rowl
Ro*, z,: Row 1 I row 7.
RcwlJ
Rcw4/row7.
Rw 31: Row 6 I row 7.
RorrlJ: Rcw ,4 + row 15 + row 16.
_
..----
mail inI nonJXR
2’
$1
5’
CERTIFICATE
OF SERVICE
I hereby certify that I have this date served the foregoing document upon all
participants of record in this proceeding in accordance with section 12 of the Rules of
Practice.
/M/t3&
Michael T. Tidwell
475 L’Enfant Plaza West, S.W.
Washington, D.C. 20260-I 145
.!l!lY 25, 1997
-