Commonwealth Energy System's (NYSE-CES) subsidiary Advanced Energy Systems Inc. and Harvard University joined Sept. 10 to announce that they are in discussions regarding the purchase of Harvard's subsidiary Medical Area Total Energy Plant Inc. (MATEP).

MATEP Inc., a cogeneration facility in Boston's Longwood Medical Area, was built in 1980 to provide heating, cooling, and electricity to three of Harvard's professional schools and to six affiliated teaching hospitals.

Commonwealth Energy's CEO William G. Poist said, "We are repositioning our company to serve new markets with a host of innovative technologies, products, and services. Our goal is to provide a comprehensive energy package to a broad range of institutional, commercial, and industrial customers. MATEP would be a cornerstone of that plan."

Leonard Devanna, president of Advanced Energy Systems Inc., the COM/Energy subsidiary that is spearheading discussions with Harvard said, "This acquisition would offer Advanced Energy the opportunity to provide reliable service to MATEP customers while developing additional economic and environmental benefits through long-term investments in heating, cooling, and electricity-related technologies."

Devanna added, "COM/Energy is the largest combination utility (steam, gas, electricity) in New England and MATEP is an example of the emerging opportunities in which Advanced Energy is investing its skills, resources, and expertise. MATEP is the model we intend to duplicate for other customers. Energy with technology is Advanced Energy Systems' business."

Harvard Vice President for Administration Sally Zeckhauser said, "Harvard has done business with Commonwealth Energy System companies for nearly a century. We are very pleased to be talking to them about MATEP."

Harvard Associate Vice President for Facilities and Environmental Services Thomas Vautin said, "The restructuring of the energy industry has provided a wealth of new energy options for institutions. After a great deal of careful thought, we feel that, in this new climate, the sale of the plant to an experienced local service provider would be the best way to continue to provide reliable service going forward, and will enable the University to focus more fully on its core mission -- teaching and research."

Earlier this year, Advanced Energy announced the formation of Neuco Inc., a neural network technology company (artificial intelligence), designed to help power plant operators to boost output and reduce emissions. In its first "real fire" power plant application, Neuco technology helped to increase production by 20 megawatts while reducing NOx and other emissions. The application of this technology and others to facilities such as MATEP would provide significant customer and environmental benefits in the future.

Commonwealth Energy System, based in Cambridge, is a holding company with subsidiaries including Advanced Energy Systems, COM/Electric, COM/Gas, and COM/Energy Steam companies.