NOTICE OF PARTIAL REDEMPTION

SERIES	CUSIP #	Rate	Maturity Date	Amount Called From Sinking Fund Installment
G	649892 HZ2*	5 3/8%	January 1, 2010	$7,230,000

The serial numbers of registered Bonds with the prefix GR, or GR10, to be redeemed

in full or in part and the principal amount to be redeemed are as follows:

750....................$5,000	769 ....................$5,000	771 ......................$5,000	782 ......................$5,000
792..................$20,000	793 ....................$5,000	796 ....................$10,000	797 ......................$5,000
798 ............$1,450,000	799 ..............$1,655,000	801 ..............$1,600,000	802 ..............$1,525,000
803................$345,000	804 ..................$20,000	805 ....................$10,000

Serial numbers of coupon Bonds with prefix G10, each for $5,000 to be redeemed are:

209	679	794	975	1009	1508	1511	1526	1788	1991	2395	2464
2991	3578	3845	3920	3975	3979	3980	4043	4322	4417	4420	4624
5022	5255	5521	5710	6310	6920	6990	6994	7191	7467	7686	7832
7858	7873	8219	8660	8721	9460	9625	9627	9814	10014	10246	10505
10593	10718	10781	10836	10846	10847	10999	11124	11126	11171	11272	11354
11371	11382	11541	11543	11560	11576	11608	11612	11783	11836	11889	12120
12190	12259	12300	12410	12440	12536	12545	12575	12636	12673	12910	12957
12958	13419	13490	13491	13507	13530	13819	14170	14438	14654	15247	15412
15516	15528	15913	15917	16191	16543	16562	16737	16797	17030	17031	17073
17118	17140	18802	18846	18874

SERIES	CUSIP #	Rate	Maturity Date	Amount Called From Sinking Fund Installment
H	649892 KN5*	7 1/2%	January 1, 2010	$5,780,000

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:

1008..................$5,000	1031 ..................$5,000	1049 ....................$5,000	1095 ....................$5,000
1101..................$5,000	1102 ................$15,000	1103 ....................$5,000	1105 ....................$5,000
1107..................$5,000	1108 ................$25,000	1109 ..................$20,000	1110..............$1,590,000
1111 ..........$1,595,000	1112 ............$1,215,000	1115 ....................$5,000	1116 ....................$5,000
1118..................$5,000

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

8	21	102	150	188	201	241	299	349	352	549	595
629	637	679	713	781	899	924	1008	1022	1123	1145	1172
1208	1213	1230	1336	1426	1427	1430	1445	1470	1484	1631	1797
1871	1889	1891	1909	1981	2047	2074	2190	2195	2434	2450	2687
2698	2761	2885	2893	2900	2907	2917	2948	2954	3171	3400	3404
3420	3422	3440	3481	3487	3540	3568	3618	3621	3853	3856	3871
3881	3900	3930	3938	3944	3963	3964	4100	4107	4343	4496	4541
4619	4622	4626	4666	4676	4841	4892	4912	5104	5107	5120	5171
5173	5204	5243	5266	5269	5271	5273	5356	5384	5390	5533	5546
5579	5996	5618	5621	5790	5946	5954	5980	6054	6247	6258	6263
6281	6396	6563	6564	6569	6649	6652	6657	6675	6734	6742	6768
6824	6840	6858	6861	6862	6864	6897	6925	6932	7128	7134	7148
7313	7466	7481	7488	7548	7678	7762	7763	7773	7775	7778	7798
7801	7805	7881	7964	7965	7966	7988	8291	8293	8334	8348	8375
8397	8464	8469	8471	8481	8544	8559	8560	8667	8720	8816	9174
9260	9272	9342	9349	9350	9376	9578	9648	9665	9690	9699	9742
9743	9754	9761	9898	9907	9945	10012	10023	10026	10030	10074	10093
10131	10134	10143	10153	10170	10171	10192	10310	10362	10490	10516	10532
10573	10574	10588	10716	10721	10738	10746	10783	10786	10790	10796	10806
10967	10976	10993	11090	11557	11569	11888	11989	11994	11995	12086	12111
12113	12118	12123	12335	12620	12627	12633	12641	12644	12749	12797	12865
12929

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 and BEARER BONDS —

First Class/Registered/Certified:    The Bank of New York, Global Corporate Trust, P.O. Box 2320, Dallas, Texas 75221-2320
Express Delivery Only:                   The Bank of New York, Global Corporate Trust, 2001 Bryan Street, 9th Fl, Dallas, Texas 75201
By Hand Only:                                  The Bank of New York, Global Corporate Trust, 4 New York Plaza - 1st Floor, New York, NY 10004-2413

Coupons due July 1, 2008, and subsequent maturing coupons should be attached to coupon Bonds being redeemed. Coupons due January 1, 2008 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 Jobs and Growth Tax Relief Reconciliation Act of 2003, 28% 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 number, nor is any representation made as to its correctness indicated in the Redemption Notice. It is included solely for convenience of the Holders.

Date: November 27, 2007                                                              POWER AUTHORITY OF THE STATE OF NEW YORK
                                                                                                          BY U.S. BANK NATIONAL ASSOCIATION
                                                                                                                                                                                           as Trustee