USPS-T-43 Revised - Notice of United States Postal Service Filing of Revised Testimony of Witness Schenk - 11/14/01

Sep 10, 2026

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Notice of the United States Postal Service filing of revised testimony by witness Schenk identifies corrected pages 2 and 3 of USPS-T-43. Revisions update Table 1 to correct testimony and to reflect data in USPS-LR-J-118, with changes highlighted. The document presents estimated test year mail processing cost savings tied to a 25% reduction in flats bundle breakage rates, including the methodology and supporting bundle breakage rates in Tables 1 and 2. A certificate of service confirms service of the document under the rules of practice.

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NOTICE OF UNITED STATES POSTAL SERVICE OF FILING OF REVISED TESTIMONY OF WITNESS SCHENK, T-43 (ERRATA)

II. REDUCTION IN BUNDLE BREAKAGE

CERTIFICATE OF SERVICE

Docket No.R2001-1 # NOTICE OF UNITED STATES POSTAL SERVICE OF FILING OF REVISEDTESTIMONY OF WITNESS SCHENK,T-43(ERRATA) The United States Postal Service hereby gives notice that it has today filed theattached revised pages 2 and 3 of USPS-T-43.The revisions are to correct Table 1 inthe testimony and to reflect the data in the revised LR-J-118.The changes have beenhighlighted. Respectfully submitted, UNITED STATES POSTAL SERVICE By its attorney: NanK.McKekoyne Nan K.McKenzie 475 L'Enfant Plaza West,S.W.Washington,D.C.20260-1137(202)268-3089 Fax-5402November 15,2001 USPS-T-43 REVISED 11/14/01 ● Development of delivery costs by rate element for First-Class andStandard Mail,which are used in the rate design for those mailclasses. 12 3 ·Development of weight distributions for Parcel Post mail,which isused in the Parcel Post rate design. 4 5 ## 6 II. REDUCTION IN BUNDLE BREAKAGE 7The purpose of this section of my testimony is to report estimates of test 8 year mail processing cost savings associated with a 25 percent reduction in 9 bundle breakage rates for flats mail.The methodology used to develop these 10 cost estimates is summarized below,and is fully documented in USPS-LR-J-118. 11The cost savings estimates are presented in Table 1 below. | Table 1:Test Year Mail Processing Cost Savings Associated
with a 25 Percent Reduction in Flats Bundle Breakage Rates
Class
Mail Processing Cost Savings
$120,865
First-Class Presort
Periodicals-Outside County
$7,080,177
Periodicals-Within County
$829,387
$5,442,808
Standard (all except ECR)
Standard ECR
$2,783,377
Source:USPS-LR-J-118 | | --- | The first step in developing these cost savings estimates for First-Class 12 13 Presort,Periodicals Outside County,and Standard Mail is to modify the flats cost 14 models developed by witness Miller (USPS-T-24,USPS-LR-J-61)to exclude 15 piggyback factors.As a result,the modified flats cost model calculates the test 16 year unit mail processing costs by rate element without piggyback factors and 17 with current bundle breakage rates.The next step in the process is to change 18 the bundle breakage rates in the modified flats cost model to reflect a 25 percent 19 reduction in breakage rates.After this change,the modified flats cost model then USPS-T-43 REVISED 11/14/01 1 calculates the test year unit mail processing cost by rate element for the reduced 2 bundle breakage rates. 3 Then the unit cost savings associated with the bundle breakage reduction 4 are calculated.For each rate element,the test year unit mail processing costs 5 (without piggyback factors and with the reduced bundle breakage rates)are 6 subtracted from the test year unit mail processing costs(without piggyback 7 factors and with current bundle breakage rates).This step results in estimated 8 unit cost savings by rate element for the reduced bundle breakage rates.The last 9 step in the process is to multiply the unit cost savings by the test year volumes 10 for each rate element and then to sum the results across rate elements to obtain 11 an estimate of total test year cost savings from the 25 percent reduction in 12 bundle breakage rates. 13These calculations are described in more detail USPS-LR-J-118,and 14 shown in the Excel workbook in 'LR-J-118 Tables Revised.xls.'The cost models15 in USPS-LR-J-61 on which this analysis is based do not develop costs for16 Periodicals Within County and Standard ECR mail.The methodology used to17 estimate the cost savings resulting from a 25 percent reduction in bundle18 breakage rates for these rate categories is described in USPS-LR-J-118. The bundle breakage rates used in these calculations are given in Table 19 20 2. | Table 2:Bundle Breakage Rates Used in Cost Savings Estimates | | | | | --- | --- | --- | --- | | Container Type | Breakage | Current | Test Year

FAQs

What revisions does the USPS filing provide for USPS-T-43?

The filing states that revised pages 2 and 3 are submitted to correct Table 1 in the testimony and to reflect data in USPS-LR-J-118. Changes are highlighted in the revised material.

How are test-year mail processing cost savings estimated for reduced bundle breakage?

The methodology modifies flats cost models to exclude piggyback factors, replaces bundle breakage rates to reflect a 25% reduction, computes unit mail processing cost differences by rate element, then multiplies by test-year volumes and sums across rate elements.

What bundle breakage rates are used in the cost savings estimates?

Table 2 provides current and test-year breakage rates by container type (pallet and sack), separating initial and subsequent stages, with test-year values reduced relative to current rates.

Sep 10, 2026

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