SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_____________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: September 30, 1999
.................................................................
(Date of earliest event reported)
New York State Electric & Gas Corporation
.................................................................
(Exact name of registrant as specified in its charter)
New York 1-3103-2 15-0398550
.................................................................
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
P.O. Box 3287, Ithaca, NY 14852-3287
.................................................................
(Address of principal executive offices) (Zip Code)
607-347-4131
Registrant's telephone number, including area code...............
NA
.................................................................
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events
Nine Mile Point nuclear generating unit No. 2
The company has an 18% ownership interest in Nine Mile Point 2, which
is operated by Niagara Mohawk Power Corporation. Ownership of Nine Mile
Point 2 is shared with Niagara Mohawk 41%, Long Island Power Authority 18%,
Rochester Gas and Electric Corporation 14% and Central Hudson Gas &
Electric 9%.
The company announced in June 1999 that it agreed to sell its 18%
interest in Nine Mile Point 2 to AmerGen Energy Company, a joint venture of
PECO Energy Company and British Energy. In the same announcement, Niagara
Mohawk announced the sale of Nine Mile Point 1 and its 41% interest in Nine
Mile Point 2 to AmerGen.
Issues have been raised recently regarding worsening performance at
the Nine Mile Point units. On September 30, 1999, the Nuclear Regulatory
Commission issued a Plant Performance Review on the Nine Mile Point units.
The NRC stated that it will increase its scrutiny of the operation of the
Nine Mile Point nuclear plants over the next six months as a result of the
worsening performance of those plants and weaknesses in areas such as plant
maintenance, work planning and scheduling, and engineering support.
Niagara Mohawk has announced that significant management changes will
be made at Nine Mile Point, including the hiring of PECO Energy for
managerial advice, because performance of the units has not reached
expected levels. The company supports these efforts to improve performance
at Nine Mile Point 2 and continues to believe that the sale of the plants
to AmerGen, a proven operator of nuclear plants, is in the best interests
of customers and the company s shareholders. If the operating performance
of Nine Mile Point 2 continues to deteriorate and it becomes apparent that
significant expenditures would be required to improve performance, the
company intends to take whatever actions it believes are appropriate to
protect the interests of its customers and shareholders, including support
for the potential shut down of the unit.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
NEW YORK STATE ELECTRIC & GAS CORPORATION
(Registrant)
By /s/ Sherwood J. Rafferty
Sherwood J. Rafferty
Senior Vice President
and Chief Financial Officer
Date: October 8, 1999
