I logged into my account after receiving the billing statement email.
I went ahead and checked for my upgrade status as a 3GS launch day owner.
"As a valued AT&T customer, this line qualifies for discounted equipment pricing when you sign a new 2-year commitment.
iPhone Upgrade
As a valued AT&T customer, we can offer you a discounted iPhone upgrade with a new 2-year commitment and an $18 upgrade fee." *
Thanks minik for bringing the good news!!!!