SERIES

CUSIP #

Rate

Maturity Date

Amount Called From Sinking Fund Installment

H

649892 KN5*

7 1/2%

January 1, 2010

$3,745,000

The serial numbers of registered Bonds with the prefix HR, or HR10, to be redeemed
in full or in part and the principal amount to be redeemed are as follows:

509..............$5,000	732..........$5,000	761............$5,000	783..............$5,000	846............$5,000	861................$5,000
906..........$10,000	937..........$10,000	946..............$5,000	971................$5,000	978..............$5,000	985................$10,000
987..............$5,000	988............$5,000	990............$10,000	991............$370,000	992..........$305,000	993..............$435,000
994..........$380,000	995........$425,000	996..........$360,000	997............$220,000	1005............$5,000	1009................$5,000
1011............$5,000	1012..........$5,000	10155............$5,000	10276..........$5,000

Serial numbers of coupon Bonds with prefix H10, each for $5,000 to be redeemed are:

140	149	168	311	332	347	383	384	402	438	501	505	551	556	583
599	611	681	725	782	796	871	898	900	912	914	922	977	1143	1207
1209	1212	1220	1231	1334	1447	1487	1488	1495	1496	1591	1802	1824	1826	1883
1893	1980	2019	2088	2096	2213	2400	2423	2556	2670	2676	2753	2758	2883	2887
2903	2909	2949	2953	2965	2986	3017	3251	3255	3258	3361	3362	3403	3629	3656
3660	3664	3667	3738	3752	3753	3799	3857	3929	3977	3978	4118	4588	4629	4630
4661	4679	4686	4782	4837	4894	4994	5170	5188	5249	5250	5287	5353	5357	5542
5585	5587	5589	5788	5842	5942	5976	6061	6064	6066	6139	6175	6259	6360	6437
6562	6571	6790	6836	6963	6990	7140	7193	7303	7319	7750	7796	7809	7817	7825
7924	7933	7992	8020	8039	8040	8106	8108	8111	8289	8333	8400	8412	8487	8488
8754	8989	9165	9169	9354	9379	9386	9390	9393	9530	9570	9711	9732	9736	9827
9890	9893	9993	10006	10031	10058	10069	10081	10089	10129	10130	10178	10180	10191	10240
10331	10355	10357	10375	10511	10535	10539	10552	10553	10554	10557	10629	10632	10634	10636
10637	10641	10666	10718	10766	10767	10772	10792	10793	10811	10972	10973	11002	11423	11428
11559	11560	11570	12101	12122	12226	12626	12628	12735	12736	12742	12799	12813	12823	12844

Payment of the Redemption Price on the Bonds called for redemption will become due and payable on the Redemption Date upon presentation and surrender thereof in the following manner:

— REGISTERED BONDS —

By Registered Mail:     The Chase Manhattan Bank, c/o Chase Bank of Texas N.A., Corporate Trust Services, 
                                        P.O. Box 219052, Dallas Texas 75221-9052
By Hand:                       The Chase Manhattan Bank, Room 234 — North Building, Corporate Trust Securities 
                                        Window, 55 Water Street, New York, NY 10041
By Courier:                    The Chase Manhattan Bank, c/o Chase Bank of Texas N.A., 1201 Main Street, 18th Floor, 
                                        Dallas, Texas 75202

— BEARER BONDS —

By Registered Mail:     The Chase Bank of Texas, N.A., P.O. Box 2320 Dallas, Texas 75221-2320
By Hand:                   The Chase Bank of Texas, N.A., Corporate Trust Securities Window, 55 Water Street, 
                                 Room 234, North Building, New York, NY 10041
By Courier:                The Chase Bank of Texas, N.A., Corporate Trust Services, 1201 Main Street — 18th Floor, 
                                 Dallas, Texas 75202

Coupons due July 1, 2002, and subsequent maturing coupons should be attached to coupon Bonds being redeemed. Coupons due January 1, 2002 should be detached and collected in the usual manner. Upon presentation of any registered Bond which is to be redeemed in part only, a new Bond or Bonds in the aggregate principal amount of the unredeemed balance of the principal amount of such Bond will be issued to the registered owner thereof, without charge therefore. Interest on the principal amount designated to be redeemed shall cease to accrue on and after the Redemption Date.

IMPORTANT NOTICE

Under the Economic Growth and Tax Relief Reconciliation Act of 2001 (the "Act"), 30% will be withheld if tax identification number is not properly certified. *The Trustee shall not be held responsible for the selection or use of the CUSIP numbers, nor is any representation made as to their correctness in this Redemption Notice. They are included solely for convenience of the holders.

Date: November 30, 2001                                                                          POWER AUTHORITY OF THE STATE OF NEW YORK
                                                                                                                         BY U.S. BANK TRUST NATIONAL ASSOCIATION 
                                                                                                                                                                                                     as Trustee

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