EXHIBIT 99.2

                                                                 October 6, 1999

PSEG POWER LLC TO PURCHASE ALBANY STEAM  STATION FROM NIAGARA MOHAWK

  Second Acquisition Within a Week for the Newark-Based  Power Company

NEWARK,  N.J.,  Oct. 6 /PRNewswire/  -- PSEG Power today  announced an agreement
with Niagara  Mohawk  (NYSE:  NMK) to purchase  the 400 megawatt  Albany oil and
gas-fired electric  generating  station for $47.5 million.  Niagara Mohawk could
also receive up to an  additional  $11.5 million if PSEG Power chooses to pursue
redevelopment of the Albany Steam Station.

Under a transition  power  contract in place  through  September  2003,  Niagara
Mohawk will purchase electricity from PSEG Power at prices consistent with those
negotiated in its PowerChoice regulatory agreement.

As  part of the  agreement,  PSEG  Power  will  accept  the  current  collective
bargaining  agreement with the International  Brotherhood of Electrical  Workers
Local 97 and will offer to continue employment for employees at the Albany Steam
Station.

"The  Purchase of the Albany  plant,  similar in design and operation to our own
Sewaren plant,  gives PSEG Power its first entry into a new and important  power
pool," said Frank  Cassidy,  president,  PSEG Power.  "Our plant  operation  and
electric trading  experience will allow us to both maximize the operation of the
plant and  participate  in the ongoing  development  of the power pool (New York
Power Pool).

"We look forward to working with the  employees as we integrate the Albany plant
into PSEG Power's  portfolio and consider  future  expansion at the site," added
Cassidy.

"We're pleased that PSEG Power is the successful bidder," said William E. Davis,
Niagara  Mohawk's  chairman  and chief  executive  officer.  "We  believe  their
commitment to invest in the competitive  electric generation business offers the
best  opportunity  for the Albany Steam Station to continue as a power producer,
employer and taxpayer."

The sale is subject to approval by the New York Public  Service  Commission  and
various federal agencies.  The parties expect to complete the transaction in the
first quarter of 2000.

Albany  Steam  Station is a  400-megawatt  plant on the west shore of the Hudson
River in the town of Bethlehem,  N.Y., three miles south of Albany. In operation
since 1952, the plant was originally built to burn coal. It was converted to oil
in 1970, and natural gas capability was added in 1981.



Last November, Niagara Mohawk filed an application with the New York State Board
on Electric  Generation Siting and the Environment to redevelop the Albany Steam
Station.  Niagara Mohawk proposed to increase the plant's generating capacity to
750 megawatts, while substantially reducing air emissions and Hudson River water
usage. A "Certification of Completeness" of the application is currently pending
at the Siting Board. PSEG Power will consider  continuation of the redevelopment
efforts.

The  agreement  to  purchase  the Albany  Steam  Station  is the latest  step in
positioning  PSEG Power as a player in the  regional  energy  market and follows
last week's  purchase  from  Conectiv of 544 megawatts of capacity to add to the
10,272 PSEG Power  already owned in the  northeast.  This purchase will increase
that capacity to 11,216 megawatts.

PSEG Power LLC (PSEG  Power) is a  wholesale  electric  generation  and  trading
company  operating  in  the  northeastern   United  States.  PSEG  Power  is  an
unregulated  subsidiary of Public Service Enterprise Group  Incorporated  (PSEG)
(NYSE:  PEG),  a  diversified   energy  company.   At  the  completion  of  this
transaction,  PSEG Power will own 11,216 megawatts of capacity in the northeast.
Other  subsidiaries  of PSEG include:  Public  Service  Electric and Gas Company
(PSE&G),   a  regulated  gas  and  electric   delivery   utility;   PSEG  Energy
Technologies,  an  unregulated  marketer  of energy  and energy  services;  PSEG
Resources,  which makes passive,  energy related  investments;  and PSEG Global,
which owns, develops and operates power plants and electric and gas distribution
systems throughout the world.

SOURCE PSEG Power LLC

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"Safe Harbor"  Statement under the Private  Securities  Litigation Reform Act of
1995:  Statements in this press release  regarding PSEG's business which are not
historical  facts  are  "forward-looking  statements"  that  involve  risks  and
uncertainties.  For a discussion  of such risks and  uncertainties,  which could
cause  actual  results to differ  from those  contained  in the  forward-looking
statements,  see "Risk Factors" in the Company's  Annual Report or Form 10-K for
the most recently ended fiscal year.