Press Release

New York Power Approves Cheap Electricity for GM

08/29/96

Power Authority Approves Proposed Power for GM Massena


N.Y., Aug. 27 -- New York Power Authority trustees
Tuesday approved a proposed allocation of low-cost electricity for the
General Motors Corp. (GM) Powertrain plant in Massena, St. Lawrence
County, that would help to create or protect 380 jobs.

On Aug. 6, GM Powertrain announced the Massena plant will produce the
cylinder block and head castings for a new lightweight global engine
for the new model Saturn car and additional GM models sold around the
world.

GM Powertrain's engine plant in Tonawanda will produce the engines. In
June, Power Authority trustees allocated 800 kilowatts (kw) of
hydropower for the Tonawanda facility.

The proposed 8,000-kw, 15-year allocation for the Massena facility now
goes to Gov. George E. Pataki for his consideration.

"These are high-wage manufacturing jobs that can have a direct impact
on the North Country and create `spin-off' jobs throughout the
region," said C.D. "Rapp" Rappleyea, Power Authority chairman and
chief executive officer, noting total employment at the Massena plant
is expected to reach 580.

"It's another prime example of the Pataki Administration's efforts to
support New York State's economic growth."

Representatives from the Power Authority and the Empire State
Development Corp. worked closely with GM to bring the new engine deal
to Massena and Tonawanda.

GM plans to invest $77 million for machinery and equipment at
Massena. Two hundred existing jobs at the facility are protected under
an earlier allocation of 12,000 kw from the Power Authority's St.
Lawrence-Franklin D. Roosevelt Power Project, also in Massena.

Cheryl R. McCurdy, GM Powertrain's Massena plant manager, said
approval of the allocation would give the facility "the solid
foundation of competitive power necessary not only for our recently
announced new products, but to acquire additional business as well.

"We greatly appreciate the support we have received from the Power
Authority and will continue to work closely with them to help ensure
economic growth for the Massena area," McCurdy said.

Michael St. Thomas, president of United Auto Workers Local 465,
credited Assemblyman Chris Ortloff (R-Plattsburgh), Massena Town
Supervisor Duane Hazelton and Frank Alguire, executive director of the
Massena Industrial Development Corp., with playing key roles in
securing the allocation.

"Acquiring this competitive power is another major step in our
survival plan," St. Thomas said. "Our survival depends on our ability
to be competitive in a worldwide market, and we appreciate the support
we are receiving from the Power Authority and our local community."

The proposed allocation for the Massena facility, approved by the
trustees during a meeting at the Power Authority's Niagara Power
Project here, was recommended by the state Economic Development Power
Allocation Board. A public hearing was held Aug. 9 at the Power
Authority's New York City office.

The electricity would be produced at the Power Authority's James
A. FitzPatrick Nuclear Power Plant on Lake Ontario near Oswego.

The 800-kw hydropower allocation to the Tonawanda plant is from a
250,000- kw block of "expansion power" produced at the Niagara Project
and reserved by the Power Authority under state law for use by
companies in Erie, Niagara and Chautauqua Counties.

The Tonawanda facility already receives 13,800 kw of expansion power
that helps to protect"3,706 jobs. Total employment there is about
4,200.