Port Authority Board Extends Agreement for Cogeneration Plant at John F. Kennedy International Airport

July 31, 2020

The Port Authority Board of Commissioners on July 30, authorized extensions to three agreements with Kennedy International Airport Cogeneration Partners (KIAC), the operators of an on-airport heating and cooling facility, to maintain and upgrade the existing system serving the Central Terminal Area.

“The Port Authority is thrilled to continue our partnership with KIAC to bring electricity, heating, and cooling services to JFK Airport,” Port Authority Chairman Kevin O’Toole said. “Today’s announcement is essential to maintaining safe operations and in transforming JFK into a modern and sustainable 21st century airport.”

“The Board’s vote today exemplifies our commitment to efficiently - in a single operation - generating electricity for and heating and cooling JFK International Airport,” said Port Authority Executive Director Rick Cotton. “Extending these agreements will allow KIAC to make the upgrades needed to continue running the cogeneration plant at 21st century standards.”

The three agreements between the Port Authority and KIAC include a ground lease for 2.41 acres; an operation and maintenance agreement that will extend the useful life of the cogeneration plant; and a revised fee structure based on actual costs of operating, maintain, generating and distributing electrical power. In addition to state-of-good repair work, the cogeneration plant will be upgraded to accommodate increased demand from state-of-the-art terminals constructed under the JFK Redevelopment Program. KIAC will be required to invest up to $250 million in upgrading and extending the useful life of the plant.

The KIAC facility at JFK Airport is a gas-fired cogeneration plant powered by two LM6000 combustion turbines. It consists of the electric production equipment, a central heating and refrigeration plant, and a thermal distribution system that provides hot and chilled water throughout the Central Terminal Area. 

Additionally, KIAC has agreed to achieve at least a 20-percent participation goal for Port Authority-certified minority-owned business enterprises and 10 percent for woman-owned business enterprises.

The cogeneration plant was developed under a long-term agreement with the Port Authority and KIAC, which provided electricity, chilled and hot water for resale to terminal operators and other off-airport energy customers and has been operated by KIAC since 1995.