I.    Annual MPSC Lifeline Report:  On behalf of all its Lifeline Pool members, MECA filed its Twelfth Annual Report on the status of MECA's Lifeline Program with the MPSC on April 1, 2003.  This report is required by an Order issued on May 6, 1992, in Case No. U-10091.  Copies of the report will be electronically sent to each participant in the MECA Lifeline Pool. It will also be available on MECA’s website. 

For those companies that are members of the MECA Lifeline Pool, your company’s obligation to submit an annual Lifeline Report has been satisfied.  No further action is necessary.

For your information, at year end 2002, there were 3,707 Lifeline subscribers participating in MECA’s program. During 2002, 1394 Lifeline applications were processed and 1274 were approved.  During the year, 1831 Lifeline subscribers left the program for a net loss of 553 Lifeline recipients over year end 2002.  Lifeline subscribers participating in MECA’s Lifeline program received approximately $440,000 in benefits, of which approximately $90,000 was funded by the MECA Lifeline Pool.  The total administrative expense of the program for MECA in 2002 was approximately $81,000.

II. FGA Circuit Court Complaint Against SBC: We are currently in the discovery phase of the case.  In an attempt to simplify the issues for trial and avoid a lot of discovery from SBC to each of our members, legal counsel has drafted a proposed stipulation of fact.  The stipulation would eliminate the need to put on proofs at trial regarding the authenticity of the revenue sharing agreements and the amounts in dispute. Other matters would remain to be litigated.  SBC previously expressed a general willingness to stipulate to some facts and is reviewing our proposal.

III. NECA Agreement With Deutsche Bank in WorldCom Bankurptcy Case: On March 24, 2003, NECA announced an agreement with Deutshe Bank to purchase WorldCom debt. MECA worked closely with NECA and several MECA member companies in completing the participation election form on the NECA website.  Participating member companies are to be paid 45% of the amount listed on the proof of claim or WorldCom’s scheduled amounts, whichever is lower.  The payment will be distributed by NECA. NECA is negotiating with Deutshe Bank for additional payment for companies whose proof of claim amount was higher than WorldCom’s scheduled amount. MECA will continue to update member companies concerning the progress of the payments and the on going negotiations.