We have simulated plasma transport processes in the presence of a quasi-to-dimensional current filament, that generated kV potential structure in the auroral region. The simulation consists of a set of one-dimensional flux tube simulations with different imposed time-dependent, field-aligned currents. The model uses the 16 moment system of equations and simultaneously solves coupled continuity and momentum equations and equations describing the transport along the magnetic field lines of parallel and perpendicular thermal energy and heat flows for each species. The lower end of the simulation is at an altitude of 800 km, in the collisional topside ionosphere, while the upper end is at 10RE in the magnetosphere. The plasma consists of hot electrons and protons of magnetospheric origin and low-energy electrons, protons, and oxygen ions of ionospheric origin. The dynamical interaction of the individual current filaments with ionospheric and magnetospheric plasma generates a potential structure in the horizontal direction and kilovolt field-aligned potential drops along the field lines. The side-by-side display exhibits the evolution of the implied potential structure in the horizontal direction. In the presence of this potential structure and parallel electric field the ionospheric plasma density is depleted and velocity is reduced, while density enhancement and increased velocity is observed in magnetospheric plasma. The ionospheric and magnetospheric electron temperatures increase below 2RE due to magnetic mirror force on converging geomagnetic field lines. The primary cross-field motion produced by the horizontal E field (E¿B drift) is perpendicular to both of the significant spatial directions and is thus ignorable in this geometry. The effects of other cross-field drift processes are discussed. The simulation thus provides insight into the dynamical evolution of two-dimensional potential structures driven by an imposed finite width, field-aligned current profile. ¿ American Geophysical Union 1994