In this paper, we consider the optimal scheduling problem for a campus central plant equipped with a bank of multiple electrical chillers and a Thermal Energy Storage (TES). Typically, the chillers are operated in ON/OFF modes to charge the TES and supply chilled water to the campus. A bilinear model is established to describe the system dynamics. A model predictive control (MPC) problem is formulated to obtain optimal set-points to satisfy the campus cooling demands and minimize daily electricity costs. At each time step, the MPC problem is represented as a large-scale mixed integer nonlinear programming (MINLP) problem. We propose a heuristic algorithm to search for suboptimal solutions to the MINLP problem based on mixed integer linear programming (MILP), where the system dynamics is linearized along the simulated trajectories of the system. Simulation results show good performance and computational tractability of the proposed algorithm. © 2013 AACC American Automatic Control Council.