This report describes the development and application of a dispatch optimization algorithm for integrated energy systems (IES) comprised of on-site cogeneration of heat and electricity, energy storage devices, and demand response opportunities. This work is intended to aid commercial and industrial sites in making use of modern computing power and optimization algorithms to make informed, nearoptimal decisions under significant uncertainty and complex objective functions. The optimization algorithm uses a finite set of randomly generated future scenarios to approximate the true, stochastic future; constraints are included that prevent solutions to this approximate problem from deviating from solutions to the actual problem. The algorithm is then expressed as a mixed integer linear program, to which a powerful commercial solver is applied. A case study of United States Postal Service Processing and Distribution Centers (P&DC) in four cities and under three different electricity tariff structures is conducted to 1) determine the added value of optimal control to a cogeneration system over current, heuristic control strategies; 2) determine the value of limited My doctoral experience was made meaningful, enjoyable, and possible with the help and support of many, many people. It is with great pleasure that I have an opportunity to acknowledge some of them. I would like to start by thanking my parents, Marc and Carole Firestone, who raised me to take education seriously, be curious, and pursue what interests me. I would further like to thank my father for keeping tabs on my research and offering his empathy during my times of frustration. Many other relatives have also provided encouragement throughout. Thanks to my grandparents Sam and Bertha Farber and Leon and Nancy Firestone-I wish I could have finished a little sooner so that you could enjoy this more. Thanks also to my sister Lisa, my cousins, and my aunts and uncles who have encouraged me and challenged me to explain my work in simple terms. Many faculty members at U.C. Berkeley have given generously of their time and energy. I would like to thank the following professors for there assistance: • Alice Agogino, Mechanical Engineering-qualifying exam committee member. Alice and her research group were very kind in critiquing a trial run of my exam presentation. • Dave Auslander, Mechanical Engineering-dissertation committee chair. • Van Carey, Mechanical Engineering-qualifying exam committee member.