EXHIBIT NO. 99-3

NIAGARA MOHAWK COMPLETES SALE OF HYDROELECTRIC PLANTS

     SYRACUSE, Aug. 2 -- Niagara Mohawk Power Corp., a wholly owned subsidiary
of Niagara Mohawk Holdings, Inc. (NYSE: NMK), today announced the closing of
the sale of its 71 hydroelectric generating plants.  Orion Power Holdings, Inc.
has acquired the plants for $425 million.  Orion is jointly owned by affiliates
of Goldman, Sachs & Co. and Constellation Energy Group (NYSE: CEG).  The sale
of the hydroelectric plants, with a combined capacity of 661 megawatts, was
announced last December.

     "This sale represents further progress toward the full divestiture of our
generating assets," said William E. Davis, chairman and CEO of Niagara Mohawk
Holdings.  "We will use the proceeds from the sale to retire debt as we seek
to optimize our capital structure and to rebuild shareholder value."

     Last month, Niagara Mohawk completed the sale of its two coal-fired
electric generating stations.  The company has agreements in place to sell its
Oswego Steam Station, its Nine Mile Point Nuclear Unit One station, and its 41
percent ownership of Nine Mile Point Nuclear Unit Two.  The company also plans
to sell its Albany Steam generating station and its share of the Roseton
Station, an oil/gas facility located in Newburgh.

     The divestiture of Niagara Mohawk's generating assets is one of the key
elements of the company's POWERCHOICE plan to reduce electricity prices and
promote competition.