In this work, a multi-objective dynamic optimization of the operating strategy of a small-size wastewater treatment plant is carried out. In-situ incineration of the excess sludge produced for electricity production is investigated in order to reduce the operating costs. The trade-offs between the treatment quality and the operating costs are characterized. Compared to the literature, emphasis is put on a more rigorous formulation of the problem and an accurate modeling of the underlying phenomena so as to get physically relevant solutions. Thus, from a mathematical perspective, the problem is formulated so that the solution is less sensitive to the - arbitrarily chosen-plant initial conditions. Modeling of physical phenomena e.g. the detrimental effect of the concentration of suspended solids in the mixed liquor, on oxygen transfer rate, has been included in the model. Several constraints are added to the problem so as to maintain the optimal solutions within the limits of validity of the mathematical model. The results provided a clear picture about the trade-offs between the treatment quality and the exploitation costs. Sludge incineration was shown to be of a high energetic profit, but it does not allow the plant to be electrically autonomous.