This paper presents an optimal control strategy for a district heating power plant with thermal energy storage. The main goal of the control strategy is to reduce the operation costs of the power plant, by scheduling the boilers, the operation of the thermal energy storage and the curtailment on the loads. The problem is stated as a constrained optimization in the form of a Mixed Integer Linear Program (MILP), embedded on an Model Predictive Control (MPC) framework. Particular attention is paid to modeling of boilers operating constraints, including the outlet water flow temperature, to the energy exchanged with the thermal energy storage and to the operating modes of the power plant layout, including the constraints related to the supply water temperature needed from the network. The results are performed using the data and the layout of the power plant located in the city of Ylivieska, in Finland. The cost analysis performed shows the advantages of using the predictive control strategy.