The report is one of several in a series describing the initial development--by the Universities Research Group on Energy (URGE)--of the Advanced Utility Simulation Model (AUSM), one of four stationary source emission and control cost forecasting models developed by the U.S. EPA for the National Acid Precipitation Assessment Program (NAPAP). The AUSM model projects air pollution emissions (SO2, NOx, and particulate matter), costs of electric generation, electric rate schedules, costs of emissions control, fuel consumption by type, electric generating technology construction, and generating technology utilizations (i.e., capacity factors) for existing and new electric utility generating units by state. The particular report describes the methodology employed to run the model as it was initially developed (Version 1.0). The changes to the methods of operation of the AUSM model (i.e., the AUSM as revised by the Science Applications International Corporation (SAIC) research team to produce Version 3.0) are described in another report in the same series.