A new three-dimensional cloud model has been developed for investigating the dynamic character of convective storms. This model solves the compressible equations of motion using a splitting procedure which provides numerical efficiency by treating the sound wave modes separately. For the subgrid turbulence processes, a time-dependent turbulence energy equation is solved which depends on local buoyancy, shear and dissipation. First-order closure is applied to nearly conservative variables with eddy coefficients based on the computed turbulence energy. Open lateral boundaries are incorporated in the model that respond to internal forcing and permit gravity waves to propagate out of the integration domain with little apparent reflection. Microphysical processes are included in the model using a Kessler-type parameterization. Simulations conducted for an unsheared environment reveal that the updraft temperatures follow a moist adiabatic lapse rate and that the convection is dissipated by water loadin... Abstract A new three-dimensional cloud model has been developed for investigating the dynamic character of convective storms. This model solves the compressible equations of motion using a splitting procedure which provides numerical efficiency by treating the sound wave modes separately. For the subgrid turbulence processes, a time-dependent turbulence energy equation is solved which depends on local buoyancy, shear and dissipation. First-order closure is applied to nearly conservative variables with eddy coefficients based on the computed turbulence energy. Open lateral boundaries are incorporated in the model that respond to internal forcing and permit gravity waves to propagate out of the integration domain with little apparent reflection. Microphysical processes are included in the model using a Kessler-type parameterization. Simulations conducted for an unsheared environment reveal that the updraft temperatures follow a moist adiabatic lapse rate and that the convection is dissipated by water loadin...