Several modifications are to be made to the National Coal Model (NCM) under contract number DE-AC01-79EI-10578. The model will be expanded to include two additional demand regions (increasing the total number of demand regions to 41) and one additional supply region (increasing the total number of supply regions to 31). Implementing this change in the NCM will be very simple. The relevant tables and lists will be expanded to include the new regions, and the dimensionality of all relevant arrays will be increased to 31 or 41, as required. A more difficult task will be to appropriately modify the various input data files to reflect the new regions. This task will be the responsibility of the Coal and Electric Power Analysis Division staff. The model will be modified to use externally-specified transportation rates for each origin/destination pair, rather than the linear transportation cost equations (based on mileage) that are used presently. Thus, an input file of transportation rates (prepared externally to the NCM, as are the coal supply curves) will be used directly to provide transportation rates ($/ton) for each coal type/origin/destination activity (i.e., column) generated in the transportation portion of the matrix generator. Other modifications under consideration relate to model output reports, an industrial boiler fuel model, and price-sensitive non-utility demand.