This section of the Supplement to the Annual Energy Outlook 1995 present the major assumptions of the modeling system used to generate the projections in the Annual Energy Outlook 1995 (AEO95). In this context, assumptions include general features of the model structure, assumptions concerning energy markets, and the key input data and parameters that are most significant in formulating the model results. Detailed documentation of the modeling system is available in a series of documentation reports listed in Appendix B.A synopsis of the National Energy Modeling System (NEMS), the model components, and the interrelationships of the modules is presented. The NEMS is developed and maintained by the office of Integrated Analysis and Forecasting of the Energy Information Administration (EIA) to provide projection of domestic energy-economy markets in the midterm time period and perform policy analyses requested by various government agencies and the private sector.