IEC conducted this analysis relating to the Central Utility Plant (CUP) and combined heat and power (CHP) at the Sacramento International Airport to evaluate the cost and equipment selection for an advanced energy facility to serve the planned new terminal, hotel, and concourse at the Airport. In addition to the due diligence study, IEC performed financial analysis of SMUD ownership of a CHP and CUP plant, modeled TES, and evaluated the use of a larger engine for the SMUD ownership case. The financial analysis determined the net present cost (NPC) of each ownership scenario. This allowed the District to compare real value of different system scenarios. In addition, net present value (NPV) and internal rate of return (IRR) were determined for each proposed cogeneration unit under various ownership options. To calculate the NPV and IRR values, IEC estimated the capital costs and operation and maintenance costs, taxes, and incentives for each financial evaluation. These results enabled IEC to estimate potential tariffs that could be realized for hot water and chilled water sales from the central utility plant.