CAMBRIDGE, Mass., Aug. 2, 2002 -- Harvard University and Cambridge Electric Light Company announced recently that they have reached agreement on the purchase by Harvard of the Blackstone Station in Cambridge for $14.6 million.

Cambridge Electric Light Company is a wholly owned subsidiary of NSTAR.

Blackstone Station has produced electricity and steam since the turn of the century. Cambridge Electric is divesting its electric generating assets consistent with the provisions of the Massachusetts Electric Restructuring Act of 1997.

Cambridge Electric divested the majority of its non-nuclear generating facilities in 1998. The sale is subject to approval by the Massachusetts Department of Telecommunications and Energy. Any net proceeds from the sale will be used to reduce Cambridge Electric's transition charge.

Located on the corner of Western Avenue and Memorial Drive, Blackstone Station is the only source of heat for more than 200 of the University's buildings in Cambridge and Allston. More than eighty percent of the plant's total output of heat is provided to Harvard.

Harvard will continue to operate the facility consistent with its current use, and will make capital improvements to ensure reliable steam production. NSTAR will continue to manage the day-to-day operations of the steam plant for Harvard for one year. University operations services departments will also make use of existing administrative offices and warehousing, consistent with the station's prior use.