NIAGARA MOHAWK &lt;NMK> TO CUT COSTS

  Niagara Mohawk Corp said it is
  "cautiously optimistic" about results improvements for 1987 and
  said it is studying measures to cut operating costs.
      These measures include freezing management salaries,
  abolishing vacant positions and reducing overtime.
      A spokesman said the company had no current plans to lay
  off workers. The company declined to say how much the cost
  savings would amount to.
      A five year forecast is expected to be issued in early
  summer, a spokesperson said.
      The company said it has redeemed about 273 mln dlrs in high
  cost debt during 1986 and hopes to redeem more debt this year.
      For 1986, Niagara Mohawk's earnings per share fell to 2.71
  dlrs from 2.88 dlrs in 1985..
      The company said earnings reduced primarily as a result of
  a reduction early in 1986 in earnings return on equity allowed
  by the N.Y. State Public Service COmmission.
      Niagara said it is concerned about the continued lowering
  of authorized return and has reinforced petitions to grant a 
  fair return on equity.
  

