This paper presents a numerical model of the optimal operation pattern of the CHP system built for duel-purpose of power generation and district heat production. The model can be differently formulated in accordance with the view of planner: society, electric utility or district-heating company. Here, the operation pattern of the system components and the effect of heat price are of major interest in the study. From the case study, it was found that the optimal use of auxiliary heating equipment is very important to achieve the minimum societal cost. And, the multi-step heat pricing scheme is desirable to induce the voluntary behavior of both companies towards the societal optimal pattern.