The college of Thrice Greatest Hermes is involved in studying and advancing Arcane Theory. This close to the Library of Alexandria (Alexandria in Khem), allows the wizards here to study the past in Alexandria and come up with deeper theories on how magic works. Now, in a city full of more psychics than they could have hoped, some wizards of this school study Noetics and help advance Arcane Dynamics in the area of magic.
They are particularly interested in how psionics actually work, and if that could be meshed with Arcane Theory. The results, however, meant for painful experiments on the part of the test subjects in magic and psionics. Those experiments were done on psychics who were captured and could not be trained. They pushed one of their subjects too far, as he was allowed to create something that was from the deepest of his imagination, a beast from the id.
The beast destroyed much of the college's laboratory experiments, resulting in chaos and destruction. However, the wizards gained enough data to apply the results to magic. The result was a new kind of wizard, the Psychic Mage.