EXHIBIT NO. 99
News Release
NINE MILE POINT UNITS 1 AND 2 NUCLEAR PLANTS TO BE AUCTIONED
SYRACUSE, June 1 - Central Hudson Gas & Electric Corp., New York State
Electric & Gas Corp., Niagara Mohawk Power Corp. and Rochester Gas and Electric
Corp. today announced they will auction their ownership interests in the Nine
Mile Point Unit 2 nuclear plant. Niagara Mohawk also announced it will auction
the Nine Mile Point Unit 1 nuclear plant.
The decision to auction the plants is consistent with a New York State Public
Service Commission order urging the owners to determine the market value of
the facilities through an open, competitive process. Bids are scheduled to
be due within the next two months. The closing of any sale will be subject
to regulatory approval.
Nine Mile Point Unit 1, a 609-megawatt boiling-water reactor, is owned by
Niagara Mohawk. Nine Mile Point Unit 2, a 1,148-megawattt boiling-water
reactor, is jointly owned by Central Hudson (9 percent), NYSEG (18 percent),
Niagara Mohawk (41 percent), RG&E (14 percent) and the Long Island Power
Authority (18 percent). Niagara Mohawk operates both plants. LIPA currently
is not including its ownership interest in Nine Mile Point Unit 2 in the sale.
In June 1999, Niagara Mohawk and NYSEG announced that they had reached agreement
to sell their interests in Units 1 and 2 to AmerGen Energy Co. That agreement
was mutually terminated by the three parties.
The selling owners have retained J.P. Morgan and Navigant Consulting to
manage the auction process. For further information about the process, please
contact either Roger Wood at J.P. Morgan (212-648-3530) or Lisa Quilici at
Navigant Consulting (781-564-9744).
