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I've been reading a lot about hydraulic power steering in the past 2 weeks, yes 3mpg is an improvement you can expect.
The thing with hydraulic PS is that it can actually rob more power when doing nothing than when turning the wheel (if you turn the wheel really fast and the pump can't keep up, the pressure will drop, but while the pump is doing nothing all the flow is bypassed through the maximum pressure drop). Depending on the size of the pump, it's a constant 5-8 Nm drag on your engine, which eats a gigantic amount of power as it's several percent of the engine's output that's always being consumed.
Electric PS conversion or delete should be the first mod on any older car.
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