The optimal energy management among distributed energy resources (DERs) in a microgrid is pivotal for its satisfactory operation. This paper presents the optimal dispatch of combined heat and power (CHP) units and a heat boiler is conducted in zero bus concept based microgrid (ZBMG) and in grid connected microgrid (GMG). In ZBMG, the utility exchanges a prescheduled amount of power to the microgrid. In this work, the optimal dispatch of various CHP units and boiler in all cases under GMG and ZBMG systems with power and heat demand is examined. The generation cost, emission, and energy loss objectives are fuzzified and solved using particle swarm optimization (PSO) algorithm. The results show that minimum objectives are attained in ZBMG compared to GMG system. The analysis is carried out on a 33-bus and 69-bus distribution systems with a 24-hour electrical and heat load profile pattern.