Abstract: The invention is a cogeneration system which utilizes an open cycle air-conditioner in conjunction with an internal combustion engine, a generator, an exhaust heat recovery unit, a hot water heat exchanger, a circulating pump, a load dump heat exchanger and an electrical sensing circuit to enable a single fuel source to produce electricity, hot water, and air-conditioned (cooled or heated) air. In addition to running as a stand alone unit, the system can be used to operate in conjunction with existing electrical utilities. The system can float around the electrical or thermal demand of the facility and adjust itself to the needs of the facility. The system is thermally controlled and electrically controlled, based on need.