Heating events in the plasma sheet boundary layer and central plasma sheet are found to occur at the onset of expansive phase activity. The main effect is a dramatic increase in plasma temperature, coincident with a partial dipolarization of the magnetic field. Fluxes of energetic particles increase without dispersion during these events which occur at all radial distances up to 23 RE, the apogeee of the ISEEE spacecraft. A major difference between these heating events and those observed at geosynchronous distances lies in the heating mechanism which is nonadiabatic beyond 10 RE but may be adiabatic closer to Earth. The energy required to account for the increase in plasma thermal energy is comparable with that required for Joule heating of the ionosphere. The plasma sheet must be considered as a major sink in the energy balance of a substorm. We estimate lobe magnetic pressures during these events. Changes in lobe pressure are generally not correlated with onsets or intensifications of expansive phase activity. ¿ American Geophysical Union 1992