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NEW YORK POWER AUTHORITY CHAIRMAN RICHARD M. FLYNN ANNOUNCES RESIGNATION

 NEW YORK, Nov. 20 /PRNewswire/ -- The following is the text of the resignation letter released today by Power Authority Chairman Richard M. Flynn:
 Dear Governor Cuomo:
 As you know, I have been involved in efforts by an organization known as the Northeast Corridor Initiative to develop a high-speed electrified rail network linking major cities throughout the Northeast and in Eastern Canada. Such a system would produce immense economic and environmental benefits for our state and the entire region.
 My colleagues on the Northeast Corridor Initiative board have recently asked me to take on the position of chairman. At a time of intensifying activity in the area of high-speed rail transportation, I believe that this is a challenging and exciting opportunity that I cannot turn down.
 Because of the demands of this new position, I regret that I will be unable to continue as chairman of the New York Power Authority. I therefore am submitting my resignation, to be effective February 1.
 At this time a year ago, I was seriously considering stepping down as chairman. After more than seven years in the position, I felt that I had met my major objectives. However, because of the dramatic competitive changes in the electric utility industry that were affecting the Power Authority and the emergence of unanticipated operating problems at our nuclear power plants, I decided that it would be inappropriate for me to leave at that time.
 Over the past year, the Power Authority, at my direction, has taken significant steps to address the competitive and operational issues. Among other initiatives, we have:
 -- Reduced our work force by the equivalent of 400 full-time positions as a key element in our program to cut operating costs by $40 million a year.
 -- Refunded more than $1.1 billion in bonds at the lowest true interest cost for any large public power issue in the United States since at least l977. As a result, the Power Authority -- and its customers -- will save $370 million in debt payments over the life of the bonds.
 -- Frozen rates for our Southeastern New York government customers through at least the end of l996, saving them approximately $110 million in that period. This action not only will help the public customers and the taxpayers and mass transit users who support them, but also will ensure our ability to retain these customers in the face of increasing competition from new power suppliers.
 -- Taken decisive actions to resolve the problems at our nuclear power plants. These have included major personnel changes at the plants and in our headquarters operation, as well as implementation of comprehensive improvement programs at both plants. At my initiative, we have brought in a respected outside consultant to evaluate our nuclear operations and have established a Nuclear Advisory Committee of three nationally recognized experts to advise the trustees on nuclear matters.
 The U.S. Nuclear Regulatory Commission has recognized our improved performance at the FitzPatrick Plant, and we are confident that we are on the road to similar successes at Indian Point 3.
 In sum, we have either solved the problems that confronted us a year ago or put in place the people and structure necessary to do so. I therefore believe it is now possible for me to leave as chairman, confident that I am turning over a strong and secure Power Authority to my successor. I will, of course, be prepared to assist in any way you wish in ensuring a smooth transition.
 It has been one of the highlights of my career to serve you and the people of New York State as chairman of the Power Authority. During my 8 l/2 years as chairman, and a total of more than l8 as a trustee, I have seen at first hand the major positive impact of this organization on our state.
 It also has been a privilege to work with the Power Authority staff, as fine a group of public servants as exists anywhere in this country. I take pride in the things we have accomplished together.
 Again, thank you for the opportunity to be part of your team. My very best to you, the members of your administration and the people of our great state.
 Sincerely,
 Richard M. Flynn
 -0- 11/20/93
 /CONTACT: Stephen Shoenholz, 212-468-6313, or home, 201-568-7565, for New York Power Authority


CO: New York Power Authority ST: New York IN: UTI SU: PER

TM -- NY005 -- 6596 11/20/93 14:16 EST
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Date:Nov 20, 1993
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