300 Erie Boulevard West, Syracuse, New York 13202-4250  -  315.474.1511 
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NIAGARA MOHAWK IS EXTENDING GENERATION AUCTION BY APPROXIMATELY TWO MONTHS


     SYRACUSE, Sept. 28 -- Niagara Mohawk Power Corp. (NYSE: NMK) announced
today that it is extending its ongoing auction of its fossil and hydroelectric
generating assets by approximately two months.

After reviewing submitted bids, the company believes that extending the process
for approximately two months will maximize value for customers and shareholders.

As part of its POWERCHOICE plan to reduce prices and promote competition,
Niagara Mohawk is selling its four fossil-fueled plants located in Bethlehem,
Dunkirk, Tonawanda and Oswego with a combined capacity of 3,256 megawatts.  The
portfolio also includes 72 hydroelectric plants with a combined capacity of 661
megawatts, and a dormant site near Rotterdam, which previously contained
combustion turbines.

Investment bankers Merrill Lynch & Co. and Donaldson, Lufkin & Jenrette
Securities Corp. are serving as financial advisors for the sale.

Niagara Mohawk is an investor-owned energy services company that provides
electricity to more than 1.5 million customers across 24,000 square miles of
Upstate New York.  The company also delivers natural gas to more than 500,000
customers over 4,500 square miles of eastern, central and northern New York.