A theoretical study of the ground and excited states of peroxyacetyl nitrate (PAN), CH3C(O)OONO2, has been carried out using high level ab initio molecular orbital methods. The ground state geometry and vibrational frequencies are calculated using the coupled-cluster method. The vertical excitation energies for the lowest three excited states are calculated using the complete active space self-consistent field method along with the multireference internally contracted configuration interaction method. These results are compared with vertical excitation energies calculated with the coupled cluster equation of motion method. The calculation provides relevant insight into the origin of PAN absorption in the UV wavelength region from 200 to 300 nm. The nature of the electron transitions for these excited states is discussed. (C) 2004 American Institute of Physics.