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<br />Telephone: <br />Facsimile: <br /> <br />-- <br /> <br />.~ AT&T <br />- <br />-- <br /> <br />David G. Seykora <br />Vice President - Law & Public Policy <br /> <br />651-493-5280 <br />651-493-5288 <br /> <br />10 River Park Plaza <br />St. Paul, MN 55107-1219 <br /> <br />March 19, 2001 <br /> <br />VIA FACSMILE AND U.S. MAIL <br /> <br />Mr. Thomas D. Creighton <br />Creighton, Bradley, & Guzzetta, LLC <br />5402 Parkdale Drive, Suite 102 <br />Minneapolis, Minnesota 55416 <br /> <br />Re: Informal Renewal Negotiations - North Metro Telecommunications <br />Commission <br /> <br />Dear Mr. Creighton: <br /> <br />Thank you for your letter dated March 8, 2001 regarding the informal <br />renewal proposal presented by the North Metro Telecommunications <br />Commission ("Commission"). We submit this letter in response to the <br />Commission's proposal in the informal renewal process. We appreciate the time <br />and effort put into both the negotiations over the past months and the most <br />recent proposal, and we hope that further negotiations can lead to a mutually <br />satisfactory resolution. <br /> <br />At the outset, I must express that we are uncertain as to the Commission's <br />intentions with respect to the Memorandum of Understanding ("MOU"). Your <br />letter characterizes the MOU as "outdated". In some areas (such as the <br />Universal PEG Tier), the Commission seems to rely on the continued vitality of <br />the MOU. In others (such as the request for additional capital support <br />payments), the Commission appears to repudiate extremely important provisions <br />of the MOU. As we expressed at the most recent negotiation meeting, this <br />approach is fundamentally inconsistent with the terms of the MOU. <br /> <br />The history of the MOU demonstrates that it constitutes a comprehensive <br />resolution of PEG and related matters for purposes of the renewal. During the <br />early 1990's, the Commission and the Company had a number of discussions <br />and disagreements regarding PEG matters. In 1995, the parties commenced the <br />franchise renewal process. Shortly thereafter (November 15, 1995) the parties <br />signed a Standstill Agreement to Pursue Informal Renewal Procedures. <br /> <br />w <br />~ e Recycled Paper <br /> <br />P.I <br />