Exhibit 99 (1)


                 NIAGARA MOHAWK PURSUING SALE OF NUCLEAR ASSETS
         SALE WOULD CONTINUE COMPANY'S DIVESTITURE OF GENERATING ASSETS

Syracuse, January 28 - Niagara Mohawk Power Corp. (NYSE:NMK) today
announced plans to pursue the sale of its nuclear assets, the Nine Mile Point
Unit 1 nuclear plant and a 41 percent co-ownership of the Nine Mile Point Unit
2 nuclear plant.  The company said it is in discussions concerning a sale but
there can be no assurance that a transaction will occur.  The company does not
plan to make any further announcements on this matter until it signs a
definitive agreement or determines not to pursue a sale.

"The decision to pursue a sale of our nuclear assets is in line with our
strategic direction of building shareholder value by focusing on our core energy
delivery business," said William E. Davis, Niagara Mohawk's chairman and chief
executive officer.  "We believe the future of Nine Mile Point as a major
employer and economic force for our region will be well served by a sale to a
buyer interested in pursuing a nuclear strategy."

As a stipulation of a sale, Niagara Mohawk will require any buyer to accept the
current collective bargaining agreement with International Brotherhood of
Electrical Workers Local 97 and will seek to maximize employment opportunities
for the existing workforce.  Niagara Mohawk has 1,350 employees at the nuclear
plants.

The approval of the Nuclear Regulatory Commission, Federal Energy Regulatory
Commission, New York State Public Service Commission, and other regulatory
bodies would be required before the conclusion of any sale, a process which
would take 12 to18 months after the completion of an agreement with a buyer.
A sale of its nuclear assets would further Niagara Mohawk's divestiture from
electricity generation.  Niagara Mohawk has reached agreements to sell its
hydroelectric and coal facilities.  The company is currently pursuing the sale
of its oil/gas plants.

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.

Nine Mile 1 is a 613-megawatt boiling-water reactor.  Nine Mile 2, a
1,140-megawatt boiling-water reactor, is co-owned by: New York State Electric
and Gas Corp. (18 percent), Long Island Power Authority/LILCO (18 percent),
Rochester Gas and Electric Corp. (14 percent), and Central Hudson Gas and
Electric Corp. (9 percent).  Both plants are operated by Niagara Mohawk and
are located in Scriba, 35 miles north of Syracuse.