This paper presents the results of a series of parametric analysis to investigate the factors that affect the effectiveness of using simultaneously building thermal capacitance and ice storage system to reduce total operating costs (including energy and demand costs) while maintaining adequate occupant comfort conditions in buildings. The analysis is based on a validated model-based simulation environment and includes several parameters including the optimization cost function, base chiller size, and ice storage tank capacity, and weather conditions. It found that the combined use of building thermal mass and active thermal energy storage system can save up to 40% of the total energy costs when integrated optimal control are considered to operate commercial buildings. (C) 2012 Elsevier Ltd. All rights reserved.