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This study presents an implementation of optimal Diesel Generator (DG) operation on a university campus, taking several strategies for managing the campus Micro Grid (MG) into account. The actual dataset is used to solve the Mixed Integer Linear Programming (MILP)-based energy management optimization problem of a campus MG consisting of a Utility Grid (UG), DG, and Wind Turbine (WT). The objective is to operate the campus MG more economically under the Time of Use (ToU) tariff by considering reliability, carbon balance, and peak load shaving. Five case studies are conducted at a university campus using a deterministic approach to validate the performance of the proposed method. The results show that the proposed method is economically beneficial by an average of 26.41% while keeping the carbon balance almost constant and decreasing the peak load by 15.8%. To summarize, the findings of this study demonstrated the superiority of the proposed method in real-world applications with no investment by economical operation of the DG considering the carbon balance of the campus. [ABSTRACT FROM AUTHOR]