SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549

                           FORM 10-Q

       Annual Report Pursuant to Section 13 or 15 (d) of
              the Securities Exchange Act of 1934

       For the quarterly period ended September 30, 1997
          Commission File No.        33-95538

                 SALTON SEA FUNDING CORPORATION
     (Exact name of registrant as specified in its charter)

                           47-0790493
               (IRS Employer Identification No.)

Salton Sea Brine Processing L.P.  California   33-0601721
Salton Sea Power Generation L.P.  California   33-0567411
Fish Lake Power Company           Delaware     33-0453364
Vulcan Power Company              Nevada       95-3992087
CalEnergy Operating Company       Delaware     33-0268085
Salton Sea Royalty Company        Delaware     47-0790492
BN Geothermal Inc.                Delaware     91-1244270
San Felipe Energy Company         California   33-0315787
Conejo Energy Company             California   33-0268500
Niguel Energy Company             California   33-0268502
Vulcan/BN Geothermal Power Company Nevada      33-3992087
Leathers, L.P.                    California   33-0305342
Del Ranch, L.P.                   California   33-0278290
Elmore, L.P.                      California   33-0278294
(Exact name of Registrants        (State or other (I.R.S. Employer
as specified in their charters)   jurisdiction of Identification No.)
                                  incorporation or organization)

 302 S. 36th Street, Suite 400-A, Omaha, NE     68131
(Address  of principal executive offices and Zip Code  of  Salton
Sea Funding Corporation)

Salton Sea Funding Corporation's telephone number, including area code:  
(402) 231-1641

      Indicate by check mark whether the Registrant (1) has filed
all  reports required to be filed by Section 13 or 15(d)  of  the
Securities  Exchange Act of 1934 during the preceding  12  months
(or  for such shorter period that the Registrant was required  to
file  such  reports),  and (2) has been subject  to  such  filing
requirements for the past 90 days:

                        Yes    X                     No

All  common stock of Salton Sea Funding Corporation is indirectly
held  by  Magma  Power Company. 100 shares of Common  Stock  were
outstanding on September 30, 1997.
<PAGE>
                 SALTON SEA FUNDING CORPORATION

                           Form 10-Q

                       September 30, 1997
                         _____________

                        C O N T E N T S


                 PART I:  FINANCIAL INFORMATION


Item 1.  Financial Statements                              Page

SALTON SEA FUNDING CORPORATION

Independent Accountants' Report                               4

Balance Sheets, September 30, 1997
 and December 31, 1996                                        5

Statements of Operations for the Three and
 Nine Months Ended September 30, 1997 and 1996                6

Statement of Cash Flows for the
 Nine Months Ended September 30, 1997 and 1996                7

Notes to Financial Statements                                 8

SALTON SEA GUARANTORS

Independent Accountants' Report                               9

Combined Balance Sheets, September 30, 1997
 and December 31, 1996                                       10

Combined Statements of Operations for the Three
 and Nine Months Ended September 30, 1997 and 1996           11

Combined Statements of Cash Flows for the
 Nine Months Ended September 30, 1997 and 1996               12

Notes to Combined Financial Statements                       13
<PAGE>
PARTNERSHIP GUARANTORS

Independent Accountants' Report                              15

Combined Balance Sheets, September 30, 1997
 and December 31, 1996                                       16

Combined Statements of Operations for the Three
 and Nine Months Ended September 30, 1997 and 1996           17

Combined Statements of Cash Flows for the
 Nine Months Ended September 30, 1997 and 1996               18

Notes to Combined Financial Statements                       19

SALTON SEA ROYALTY COMPANY

Independent Accountants' Report                              21

Balance Sheets, September 30, 1997
 and December 31, 1996                                       22

Statements of Operations for the Three and
 Nine Months Ended September 30, 1997 and 1996               23

Statements of Cash Flows for the
 Nine Months Ended September 30, 1997 and 1996               24

Notes to Financial Statements                                25

Item 2.  Management's Discussion and Analysis of
         Financial Condition and Results of Operations       26


                  PART II:  OTHER INFORMATION

Item 1.  Legal Proceedings                                   33
Item 2.  Changes in Securities                               33
Item 3.  Defaults on Senior Securities                       33
Item 4.  Submission of Matters to a Vote of
         Security Holders                                    33
Item 5.  Other Information                                   33
Item 6.  Exhibits and Reports on Form 8-K                    33

Signatures                                                   34

Exhibit Index                                                35



<PAGE>
INDEPENDENT ACCOUNTANTS' REPORT

Board of Directors and Stockholder
Salton Sea Funding Corporation
Omaha, Nebraska

We have reviewed the accompanying balance sheet of the Salton Sea
Funding  Corporation as of September 30, 1997,  and  the  related
statements  of  operations for the three and nine  month  periods
ended  September 30, 1997 and 1996 and cash flows  for  the  nine
months  ended  September  30, 1997  and  1996.   These  financial
statements are the responsibility of the Company's management.

We  conducted our review in accordance with standards established
by  the  American Institute of Certified Public  Accountants.   A
review  of interim financial information consists principally  of
applying  analytical procedures to financial data and  of  making
inquiries  of  persons responsible for financial  and  accounting
matters.   It  is  substantially less  in  scope  than  an  audit
conducted   in   accordance  with  generally  accepted   auditing
standards, the objective of which is the expression of an opinion
regarding   the   financial  statements   taken   as   a   whole.
Accordingly, we do not express such an opinion.

Based   on   our  review,  we  are  not  aware  of  any  material
modifications  that  should be made to such financial  statements
for  them  to be in conformity with generally accepted accounting
principles.

We have previously audited, in accordance with generally accepted
auditing  standards,  the balance sheet  of  Salton  Sea  Funding
Corporation  as of December 31, 1996, and the related  statements
of  operations, stockholders' equity, and cash flows for the year
then  ended  (not  presented herein); and  in  our  report  dated
January  31, 1997, we expressed an unqualified opinion  on  those
financial statements.  In our opinion, the information set  forth
in  the  accompanying balance sheet as of December  31,  1996  is
fairly  stated,  in  all material respects, in  relation  to  the
balance sheet from which it has been derived.


DELOITTE & TOUCHE LLP
Omaha, Nebraska
October 21, 1997
<PAGE>
                SALTON SEA FUNDING CORPORATION

                        BALANCE SHEETS
       (Dollars in Thousands, Except per Share Amounts)



                                     September 30,  December 31,
                                         1997           1996
                                     ___________      __________
                                     (unaudited)
ASSETS
Cash                                $     63,589      $  13,218
Restricted cash and short-term
  investments                                ---         14,044
Prepaid expenses and other assets         12,390          3,452
Secured project notes of Guarantors      493,868        538,982
Investment in 1% of net assets of
  Guarantors                               6,974          6,293
                                      __________     __________
                                       $ 576,821      $ 575,989
                                      ==========     ==========

LIABILITIES AND STOCKHOLDER'S EQUITY
Liabilities:
Accrued liabilities                   $   12,020      $   3,291
Due to affiliates                         61,198         25,022
Senior secured notes and bonds           493,868        538,982
                                      __________     __________
  Total liabilities                      567,086        567,295

Stockholder's equity:
Common stock--authorized 1,000
  shares, par value $.01 per share;
  issued and outstanding 100 shares          ---            ---
Additional paid-in capital                 5,366          5,366
Retained earnings                          4,369          3,328
                                      __________     __________
  Total stockholder's equity               9,735          8,694
                                      __________     __________
                                       $ 576,821      $ 575,989
                                      ==========     ==========

The accompanying notes are an integral part of these financial  statements.
<PAGE>
                SALTON SEA FUNDING CORPORATION
                   STATEMENTS OF OPERATIONS
                     (Dollars in Thousands)
                          (Unaudited)


                          Three Months Ended  Nine Months Ended
                             September 30        September 30
                          1997         1996   1997         1996
Revenues:

Interest income          $  9,567$   10,844 $  30,314 $  28,504
Equity in earnings of 
  Guarantors                  340       303       681       537
                        _________  ________  ________  ________
Total revenues              9,907    11,147    30,995    29,041
                        _________  ________  ________  ________

Expenses:

General and 
 administrative expenses      233       241       692       467
Interest expense            9,047    10,339    28,538    26,272
                        _________  ________  ________  ________
Total expenses              9,280    10,580    29,230    26,739
                        _________  ________  ________  ________
Income before income taxes    627       567     1,765     2,302
Provision for income taxes    257       232       724       944
                        _________  ________  ________  ________
Net income              $     370 $     335  $  1,041  $  1,358
                        ========= =========  ======== =========

The accompanying notes are an integral part of these financial  statements.
<PAGE>
                SALTON SEA FUNDING CORPORATION
                   STATEMENTS OF CASH FLOWS
                     (Dollars in Thousands)
                          (Unaudited)

                                            Nine Months ended
                                              September 30,
                                               1997     1996

Cash flows from operating activities:
Net income                                 $   1,041$   1,358
Adjustments to reconcile net income to net
  cash flow from operating activities:
Equity in earnings of Guarantors               (681)     (537)
Changes in assets and liabilities:
Prepaid expenses and other assets            (8,938)  (10,094)
Accrued liabilities                           8,729     9,155
                                           _________ __________
  Net cash flows from operating activities      151     (118)
                                           _________ __________
Cash flows from investing activities:
Decrease in restricted cash                   14,044   42,118
Secured project notes of Guarantors                - (135,000)
Principal repayments of secured project notes
  of Guarantors                               45,114    24,053
                                          __________ _________
  Net cash flows from investing activities    59,158  (68,829)
                                          __________ _________
Cash flows from financing activities:
Increase in due to affiliates                 36,176     3,003
Proceeds from offering of senior 
 project notes &  bonds                            -   135,000
Repayment of senior secured notes and bonds  (45,114)  (24,053)
                                          __________ _________
  Net cash flows from financing activities   (8,938)  113,950
                                          __________ _________
Net change in cash                            50,371   45,003
Cash at the beginning of period               13,218    4,393
                                          __________ _________
Cash at the end of period                 $   63,589 $ 49,396
                                          ========== =========
Supplemental disclosures:
  Interest paid                           $   19,777$   16,158
                                          ====================
Non-cash investing and financing activities:
  Adjustments resulting from capital transactions
     of Guarantors                        $        -     (135)
                                          ========== =========
The accompanying notes are an integral part of these financial  statements.
<PAGE>
                 SALTON SEA FUNDING CORPORATION

                 NOTES TO FINANCIAL STATEMENTS
                         (in thousands)
                     _____________________


1. General:

In   the   opinion  of  management  of  the  Salton  Sea  Funding
Corporation   (the   "Funding  Corporation"),  the   accompanying
unaudited    financial   statements   contain   all   adjustments
(consisting  only  of  normal recurring  accruals)  necessary  to
present  fairly the financial position as of September  30,  1997
and the results of operations for the three and nine months ended
September  30, 1997 and 1996 and cash flows for the  nine  months
ended September 30, 1997 and 1996.

The  results  of operations for the three and nine  months  ended
September 30, 1997 and 1996 are not necessarily indicative of the
results to be expected for the full year.

The  Funding Corporation was formed on September 20, 1995 for the
sole  purpose  of  acting as issuer of senior secured  notes  and
bonds.

2. Other Footnote Information:

Reference  is  made  to the Funding Corporation's  most  recently
issued  annual  report  on  Form 10-K that  included  information
necessary   or  useful  to  the  understanding  of  the   Funding
Corporation's business and financial statement presentations.




<PAGE>
INDEPENDENT ACCOUNTANTS' REPORT

Board of Directors and Stockholder
Magma Power Company
Omaha, Nebraska

We  have reviewed the accompanying combined balance sheet of  the
Salton  Sea Guarantors as of September 30, 1997, and the  related
combined  statements of operations for the three and  nine  month
periods ended September 30, 1997 and 1996 and cash flows for  the
nine  months ended September 30, 1997 and 1996.  These  financial
statements  are the responsibility of the Salton Sea  Guarantors'
management.

We  conducted our review in accordance with standards established
by  the  American Institute of Certified Public  Accountants.   A
review  of interim financial information consists principally  of
applying  analytical procedures to financial data and  of  making
inquiries  of  persons responsible for financial  and  accounting
matters.   It  is  substantially less  in  scope  than  an  audit
conducted   in   accordance  with  generally  accepted   auditing
standards, the objective of which is the expression of an opinion
regarding   the   financial  statements   taken   as   a   whole.
Accordingly, we do not express such an opinion.

Based   on   our  review,  we  are  not  aware  of  any  material
modifications  that  should be made to  such  combined  financial
statements  for them to be in conformity with generally  accepted
accounting principles.

We have previously audited, in accordance with generally accepted
auditing standards, the combined balance sheet of the Salton  Sea
Guarantors  as  of  December 31, 1996, and the  related  combined
statements of operations, Guarantors' equity, and cash flows  for
the  year  then ended (not presented herein); and in  our  report
dated  January 31, 1997, we expressed an unqualified  opinion  on
those  combined  financial  statements.   In  our  opinion,   the
information set forth in the accompanying combined balance  sheet
as  of  December  31,  1996  is fairly stated,  in  all  material
respects, in relation to the combined balance sheet from which it
has been derived.


DELOITTE & TOUCHE LLP
Omaha, Nebraska
October 21, 1997
<PAGE>
                     SALTON SEA GUARANTORS

                    COMBINED BALANCE SHEETS
                     (Dollars in Thousands)


                                     September 30,  December 31,
                                         1997           1996
                                     (unaudited)
ASSETS
Accounts receivable                    $  21,763     $  14,954
Prepaid expenses and other assets         14,691        16,008
Property, plant, contracts and 
 equipment, net                          479,967       484,182
Excess of cost over fair value of 
 net assets acquired, net                 49,812        50,790
                                       _________      _________
                                       $ 566,233     $ 565,934
                                        ========       ========


LIABILITIES AND GUARANTORS' EQUITY
Liabilities:
  Accounts payable                     $      38     $     642
  Accrued liabilities                     13,781         9,989
  Due to affiliates                       42,985        64,091
  Senior secured project note            283,024       299,840
                                       _________      _________
  Total liabilities                      339,828       374,562

Total Guarantors' equity                 226,405       191,372
                                       _________      _________
                                       $ 566,233     $ 565,934
                                       =========      =========

The accompanying notes are an integral part of these financial  statements.
<PAGE>
                     SALTON SEA GUARANTORS

               COMBINED STATEMENTS OF OPERATIONS
                     (Dollars in Thousands)
                          (Unaudited)




                        Three Months Ended   Nine Months Ended
                            September 30        September 30
                       _____________________ _____________________
                           1997      1996      1997     1996
                         ________  ________  ________  ________
Revenues:

Sales of electricity     $ 33,884 $ 33,413   $ 82,307 $ 68,646
Interest and other income       7        3        168      131
                          _______   _______   _______   _______
  Total revenues           33,891   33,416     82,475    68,777
                          _______   _______   _______   _______
Expenses:

Operating, general and
   administration           8,218    7,576     21,328    19,302
Depreciation and 
   amortization             4,149    3,973     12,333     9,859
Interest expense            5,701    6,205     17,398    18,724
Less capitalized interest  (1,173)  (1,174)    (3,617)   (7,381)
                          _______   _______   _______   _______
  Total expenses           16,895   16,580     47,442    40,504
                          _______   _______   _______   _______
Net income               $ 16,996$  16,836   $ 35,033  $ 28,273
                          =======   =======   =======   =======

The accompanying notes are an integral part of these financial  statements.
<PAGE>
                     SALTON SEA GUARANTORS

               COMBINED STATEMENTS OF CASH FLOWS
                     (Dollars in Thousands)
                          (Unaudited)
                                               Nine Months Ended
                                                 September 30,
                                              ____________________
                                               1997      1996
Cash flows from operating activities:
Net income                                   $ 35,033  $ 28,273
Adjustments to reconcile net income to net
  cash flow from operating activities:
   Depreciation and amortization               12,333     9,859
   Changes in assets and liabilities:
    Accounts receivable                       (6,809)  (11,634)
    Prepaid expenses and other assets           1,317     1,151
    Accounts payable and accrued
     liabilities                                3,188    8,718
                                            _________ _________
Net cash flows from operating activities       45,062    36,367
                                            _________ _________
Cash flows from investing activities:
Capital expenditures                          (5,784)  (61,653)
                                            _________ _________
Net cash flows from investing activities      (5,784)  (61,653)
                                            _________ _________
Cash flows from financing activities:
Increase (decrease) in due to affiliates     (22,462)    35,727
Repayments of senior secured project note    (16,816)  (10,830)
                                            ___________________
Net cash flows from financing activities     (39,278)   24,897
                                            _________ _________
Net change in cash                                ---    (389)
Cash at beginning of period                       ---      454
                                            _________ _________
Cash at end of period                       $     ---$      65
                                            ========= =========
The accompanying notes are an integral part of these financial  statements.
<PAGE>
                     SALTON SEA GUARANTORS

             NOTES TO COMBINED FINANCIAL STATEMENTS
                         (in thousands)
                      ____________________


1. General:

In  the  opinion of management of the Salton Sea Guarantors  (the
"Guarantors"),  the  accompanying unaudited financial  statements
contain  all  adjustments (consisting only  of  normal  recurring
accruals)  necessary to present fairly the financial position  as
of September 30, 1997 and the results of operations for the three
and  nine months ended September 30, 1997 and 1996 and cash flows
for the nine months ended September 30, 1997 and 1996.

The  combined  financial statements include the accounts  of  the
partnerships in which the Guarantors have a 100% interest.

The  results  of operations for the three and nine  months  ended
September 30, 1997 and 1996 are not necessarily indicative of the
results to be expected for the full year.

2. Other Footnote Information:

Reference  is  made to the Salton Sea Funding Corporation's  most
recently   issued  annual  report  on  Form  10-K  that  included
information  necessary  or  useful to the  understanding  of  the
Guarantors' business and financial statement presentations.
<PAGE>
                     SALTON SEA GUARANTORS

             NOTES TO COMBINED FINANCIAL STATEMENTS
                         (in thousands)
                      ____________________


3. Property, Plant, Contracts and Equipment:

Property,   plant,  contracts  and  equipment  consist   of   the
following:

                                    September 30,   December 31,
                                        1997           1996
                                       ________       ________
Plant and equipment                  $ 329,894      $ 329,458
Power sale agreements                   64,609         64,609
Mineral extraction                      70,448         66,831
Exploration and development costs       43,597         42,220
                                       ________       ________
                                       508,548        503,118
Less accumulated depreciation
  and amortization                     (28,581)       (18,936)
                                       ________       ________
                                     $ 479,967      $ 484,182
                                       ========       ========





<PAGE>
INDEPENDENT ACCOUNTANTS' REPORT

Board of Directors and Stockholder
Magma Power Company
Omaha, Nebraska

We  have reviewed the accompanying combined balance sheet of  the
Partnership Guarantors as of September 30, 1997, and the  related
combined  statements of operations for the three and  nine  month
periods ended September 30, 1997 and 1996 and cash flows for  the
nine  months ended September 30, 1997 and 1996.  These  financial
statements  are the responsibility of the Partnership Guarantors'
management.

We  conducted our review in accordance with standards established
by  the  American Institute of Certified Public  Accountants.   A
review  of interim financial information consists principally  of
applying  analytical procedures to financial data and  of  making
inquiries  of  persons responsible for financial  and  accounting
matters.   It  is  substantially less  in  scope  than  an  audit
conducted   in   accordance  with  generally  accepted   auditing
standards, the objective of which is the expression of an opinion
regarding   the   financial  statements   taken   as   a   whole.
Accordingly, we do not express such an opinion.

Based   on   our  review,  we  are  not  aware  of  any  material
modifications  that  should be made to  such  combined  financial
statements  for them to be in conformity with generally  accepted
accounting principles.

We have previously audited, in accordance with generally accepted
auditing standards, the combined balance sheet of the Partnership
Guarantors  as  of  December 31, 1996, and the  related  combined
statements of operations, Guarantors' equity and cash  flows  for
the  year  then ended (not presented herein); and in  our  report
dated  January 31, 1997, we expressed an unqualified  opinion  on
those  combined  financial  statements.   In  our  opinion,   the
information set forth in the accompanying combined balance  sheet
as  of  December  31,  1996  is fairly stated,  in  all  material
respects, in relation to the combined balance sheet from which it
has been derived.


DELOITTE & TOUCHE LLP
Omaha, Nebraska
October 21, 1997
<PAGE>
                     PARTNERSHIP GUARANTORS

                    COMBINED BALANCE SHEETS
                     (Dollars in Thousands)


                                    September 30,    December 31,
                                         1997            1996
                                     (unaudited)
ASSETS
Accounts receivable                    $  32,893      $  22,766
Due from affiliates                      150,496        129,278
Prepaid expenses and other assets         16,259         19,083
Property, plant, contracts and 
  equipment, net                         365,192        364,849
Management fee                            69,768         67,521
Excess of cost over fair value of 
  net assets acquired, net               136,013        138,686
                                       _________      _________
                                       $ 770,621      $ 742,183
                                       =========      =========


LIABILITIES AND GUARANTORS' EQUITY
Liabilities:
Accounts payable                       $     287      $     663
Accrued liabilities                       25,896         22,977
Senior secured project notes             162,907        182,204
Deferred income taxes                    125,810        108,277
                                       _________      _________
Total liabilities                        314,900        314,121

Guarantors' equity:
Common stock                                   3              3
Additional paid-in capital               387,663        387,663
Retained earnings                         68,055         40,396
                                       _________      _________
Total Guarantors' equity                 455,721        428,062
                                       _________      _________
                                       $ 770,621      $ 742,183
                                       =========      =========

The accompanying notes are an integral part of these financial  statements.
<PAGE>
                    PARTNERSHIP GUARANTORS

               COMBINED STATEMENTS OF OPERATIONS
                     (Dollars in Thousands)
                          (Unaudited)



                       Three Months Ended        Nine Months Ended
                           September 30            September 30
                           1997      1996      1997       1996
Revenues:

Sales of electricity     $ 49,547 $ 46,031  $ 122,458 $ 98,186
Interest and other income   1,896    2,608      3,463    6,757
Total revenues             51,443   48,639    125,921  104,943
                        _________ _________ _________ _________
Expenses:

Operating, general and
   administration          16,471   17,016     48,119    41,426
Depreciation and 
  amortization              9,657    9,870     28,987    24,159
Interest expense            3,332    4,193     10,531     9,455
Less capitalized interest  (2,360)  (2,168)    (6,908)   (6,637)

Total expenses             27,100   28,911     80,729    68,403
                        _________ _________ _________ _________

Income before income taxes 24,343   19,728     45,192    36,540
Provision for income taxes  9,424    7,702     17,533    14,414
                        _________ _________ _________ _________

Net income               $ 14,919$  12,026   $ 27,659  $ 22,126
                        ========= ========= ========= =========

The accompanying notes are an integral part of these financial  statements.
<PAGE>
                    PARTNERSHIP GUARANTORS
               COMBINED STATEMENTS OF CASH FLOWS
                     (Dollars in Thousands)
                          (Unaudited)
                                            Nine Months Ended
                                               September 30,
                                               1997      1996
Cash flows from operating activities:
Net income                                  $  27,659 $ 22,126
Adjustments to reconcile net income to net
  cash flow from operating activities:
   Depreciation and amortization               28,987   24,159
   Deferred income taxes                       17,533    4,192
   Changes in assets and liabilities:
     Accounts receivable                     (10,127)   (4,268)
     Prepaid expenses and other assets          2,824   (6,120)
     Accounts payable and accrued
      liabilities                               2,543      503
Net cash flows from operating activities       69,419   40,592

Cash flows from investing activities:
Capital expenditures                         (25,556)  (14,723)
Management fee                                (3,348)   (3,615)
Decrease in restricted cash                         -   23,085
Net cash flows from investing activities     (28,904)    4,747

Cash flows from financing activities:
Repayments of senior secured project rates   (19,297)  (99,809)
Loan proceeds                                       -  135,000
Increase in due from affiliates              (21,218)  (37,279)
Distributions to parent                             -  (54,397)
Net cash flows from financing activities     (40,515)  (56,485)
                                            _________ _________
Net change in cash                                  -  (11,146)
Cash at beginning of period                         -   11,146
                                            _________ _________
Cash at end of period                       $       -  $      -
                                            ========= =========
During  1996, CalEnergy Company, Inc. contributed $71,000 of  net
assets acquired from Edison Mission Energy, of which $12,956  was
cash, to the Partnership Guarantors.

The accompanying notes are an integral part of these financial  statements.
<PAGE>
                     PARTNERSHIP GUARANTORS

             NOTES TO COMBINED FINANCIAL STATEMENTS
                         (in thousands)
                      ____________________


1. General:

In  the opinion of management of the Partnership Guarantors  (the
"Guarantors"),  the  accompanying  unaudited  combined  financial
statements  contain all adjustments (consisting  only  of  normal
recurring  accruals)  necessary to present fairly  the  financial
position  as of September 30, 1997 and the results of  operations
for  the three and nine months ended September 30, 1997 and  1996
and  cash flows for the nine months ended September 30, 1997  and
1996.

The combined financial statements include the proportionate share
of  the accounts of the partnerships in which the Guarantors have
an interest.

The  results  of operations for the three and nine  months  ended
September 30, 1997 and 1996 are not necessarily indicative of the
results to be expected for the full year.

2. Other Footnote Information:

Reference  is  made to the Salton Sea Funding Corporation's  most
recently   issued  annual  report  on  Form  10-K  that  included
information  necessary  or  useful to the  understanding  of  the
Guarantors' business and financial statement presentations.
<PAGE>
                     PARTNERSHIP GUARANTORS
             NOTES TO COMBINED FINANCIAL STATEMENTS
                         (in thousands)
                      ____________________

3. Property, Plant, Contracts and Equipment:

Property,  plant,  contracts  and  equipment  consisted  of   the
following:

                                     September 30,  December 31,
                                          1997          1996
Plant and equipment                    $  69,875     $   60,272
Power sale agreements                    123,588        123,588
Process license                           46,290         46,290
Mineral reserves                         128,107        121,199
Exploration and development costs         68,799         59,303
                                      __________     __________
                                         436,659        410,652
Less accumulated depreciation
  and amortization                      (71,467)       (45,803)
                                      __________     __________
                                       $ 365,192      $ 364,849
                                      ==========     ==========

4. Purchase of Edison Mission Energy's Partnership Interests

On  April 17, 1996 CalEnergy Company, Inc. ("CECI") completed the
indirect  acquisition  of  Edison  Mission  Energy's  partnership
interests  in the Vulcan, Hoch (Del Ranch), Leathers  and  Elmore
geothermal  operating facilities.  A subsidiary  of  Magma  Power
Company ("Magma"), wholly-owned by CECI, currently operates these
facilities and Magma directly or indirectly owns 100% interest in
these  facilities.   Magma's ownership interest  related  to  Del
Ranch, Leathers, Elmore and Vulcan is assigned to the Partnership
Guarantors.

Unaudited  proforma  combined  revenue  and  net  income  of  the
Guarantors on a purchase, push down basis of accounting, for  the
nine  months ended September 30, 1996, as if the acquisition  had
occurred  at the beginning of the period after giving  effect  to
certain  pro  forma adjustments related to the acquisitions  were
$123,582 and $23,259, respectively.




<PAGE>
INDEPENDENT ACCOUNTANTS' REPORT

Board of Directors and Stockholder
Magma Power Company
Omaha, Nebraska

We have reviewed the accompanying balance sheet of the Salton Sea
Royalty  Company  as  of  September 30,  1997,  and  the  related
statements  of  operations for the three and nine  month  periods
ended  September 30, 1997 and 1996 and cash flows  for  the  nine
months  ended  September  30, 1997  and  1996.   These  financial
statements  are  the  responsibility of the  Salton  Sea  Royalty
Company's management.

We  conducted our review in accordance with standards established
by  the  American Institute of Certified Public  Accountants.   A
review  of interim financial information consists principally  of
applying  analytical procedures to financial data and  of  making
inquiries  of  persons responsible for financial  and  accounting
matters.   It  is  substantially less  in  scope  than  an  audit
conducted   in   accordance  with  generally  accepted   auditing
standards, the objective of which is the expression of an opinion
regarding   the   financial  statements   taken   as   a   whole.
Accordingly, we do not express such an opinion.

Based   on   our  review,  we  are  not  aware  of  any  material
modifications  that  should be made to such financial  statements
for  them  to be in conformity with generally accepted accounting
principles.

We have previously audited, in accordance with generally accepted
auditing  standards, the balance sheet of the Salton Sea  Royalty
Company  as  of December 31, 1996, and the related statements  of
operations, equity, and cash flows for the year then  ended  (not
presented herein); and in our report dated January 31,  1997,  we
expressed  an unqualified opinion on those financial  statements.
In  our  opinion,  the information set forth in the  accompanying
balance  sheet as of December 31, 1996 is fairly stated,  in  all
material respects, in relation to the balance sheet from which it
has been derived.



DELOITTE & TOUCHE LLP
Omaha, Nebraska
October 21, 1997
<PAGE>
                   SALTON SEA ROYALTY COMPANY

                         BALANCE SHEETS
        (Dollars in Thousands, Except per Share Amounts)



                                      September 30, December 31,
                                          1997        1996   
                                       (unaudited)
ASSETS
Due from affiliates                     $  17,154     $  10,008
Royalty stream, net                        37,707        44,372
Excess of cost over fair value of net assets
  acquired, net                            34,323        35,004
Prepaid expenses and other assets           1,158         1,689
                                       __________    __________
                                        $  90,342     $  91,073
                                       ==========    ==========


LIABILITIES AND EQUITY
Liabilities:
Accrued liabilities                     $  17,530     $  12,070
Senior secured project note                47,935        56,936
Deferred income taxes                       9,594        12,227
                                       __________    __________
  Total liabilities                        75,059        81,233

Equity:
Common stock, par value $.01 per share; 100
  share authorized, issued and outstanding      -            -
Additional paid-in capital                  1,561         1,561
Retained earnings                          13,722         8,279
                                       __________    __________
Total equity                               15,283         9,840
                                       __________    __________
                                        $  90,342     $  91,073
                                       ==========    ==========

The accompanying notes are an integral part of these financial  statements.
<PAGE>
                   SALTON SEA ROYALTY COMPANY

                   STATEMENTS OF OPERATIONS
                     (Dollars in Thousands)
                          (Unaudited)



                         Three Months Ended   Nine Months Ended
                           September 30         September 30
                            1997      1996     1997      1996
Revenues:
Royalty income            $ 8,628   $ 7,784  $ 24,411  $ 22,422

Expenses:
Operating, general and
  administrative expenses   2,096    1,894      5,928     5,446
Amortization of royalty stream
   and goodwill             2,449    2,570      7,346     7,710
Interest expense            1,002    1,290      3,228     3,989
                        _______________________________________
Total expenses              5,547    5,754     16,502    17,145
                        _______________________________________

Income before income taxes  3,081    2,030      7,909     5,277
Provision for income taxes    981      592      2,466     1,957
                        _______________________________________

Net income                $ 2,100  $ 1,438    $ 5,443   $ 3,320
                        =======================================

The accompanying notes are an integral part of these financial  statements.
<PAGE>
                   SALTON SEA ROYALTY COMPANY

                   STATEMENTS OF CASH FLOWS
                    (Dollars in Thousands)
                          (Unaudited)


                                             Nine Months Ended
                                                September 30,
                                                1997      1996
Cash flows from operating activities:
Net income                                   $  5,443  $  3,320
Adjustments to reconcile net income to net
  cash flow from operating activities:
   Amortization of royalty stream and goodwill  7,346     7,710
   Changes in assets and liabilities:
   Prepaid expenses and other assets              531       666
    Accrued liabilities and deferred 
    income taxes                                2,827     2,982
Net cash flows from operating activities       16,147    14,678

Net cash flows from financing activities:
Decrease (increase) in due from affiliates    (7,146)     7,896
Repayment of senior secured project note      (9,001)    (5,473)
Distribution to parent                              -   (17,101)
Net cash flows from financing activities     (16,147)   (14,678)
                                            _________ _________
Net change in cash                                  -         -
Cash at beginning of period                         -         -
                                            _________ _________
Cash at end of period                        $      -  $      -
                                            ========= =========

The accompanying notes are an integral part of these financial  statements.
<PAGE>
                   SALTON SEA ROYALTY COMPANY

                 NOTES TO FINANCIAL STATEMENTS
                         (in thousands)
                      ____________________

1. General:

In  the  opinion of management of the Salton Sea Royalty  Company
(the  "Company"), the accompanying unaudited financial statements
contain  all  adjustments (consisting only  of  normal  recurring
accruals)  necessary to present fairly the financial position  as
of September 30, 1997 and the results of operations for the three
and  nine months ended September 30, 1997 and 1996 and cash flows
for the nine months ended September 30, 1997 and 1996.

The  results  of operations for the three and nine  months  ended
September 30, 1997 and 1996 are not necessarily indicative of the
results to be expected for the full year.

2. Other Footnote Information:

Reference  is  made to the Salton Sea Funding Corporation's  most
recently   issued  annual  report  on  Form  10-K  that  included
information  necessary  or  useful to the  understanding  of  the
Company's business and financial statement presentations.
<PAGE>
               THE SALTON SEA FUNDING CORPORATION

            MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS
              (in thousands, except per kwh data)
               _________________________________
Results of Operations:

The  following is management's discussion and analysis of certain
significant  factors which have affected the Salton  Sea  Funding
Corporation's  (the  "Funding Corporation") and  the  Salton  Sea
Guarantors, the Partnership Guarantors and the Salton Sea Royalty
Company's  (collectively, the "Guarantors")  financial  condition
and  results  of  operations during the periods included  in  the
accompanying statements of operations.

Funding Corporation was organized for the sole purpose of  acting
as  issuer  of senior secured notes and bonds (the "Securities").
The Securities are payable from the proceeds of payments made  of
principal and interest on the senior secured project notes by the
Guarantors  to  the  Funding  Corporation.   The  Securities  are
guaranteed  on a joint and several basis by the Guarantors.   The
guarantees  of the Partnership Guarantors and Salton Sea  Royalty
Company   are  limited  to  available  cash  flow.   The  Funding
Corporation  does  not  conduct any  operations  apart  from  the
Securities.

The   Vulcan,   Leathers,  Del  Ranch  and  Elmore   partnerships
(collectively  the "Partnership Projects") sell  all  electricity
generated by the respective plants pursuant to four long-term SO4
Agreements  between the projects and Southern  California  Edison
Company  ("Edison").  These SO4 Agreements provide  for  capacity
payments,  capacity payments and energy payments.   Edison  makes
fixed annual capacity payments to the projects, and to  the
extent  that  capacity  factors  exceed  certain  benchmarks   is
required to make capacity bonus payments.  The price for capacity
and  capacity  bonus payments is fixed for the life  of  the  SO4
Agreements and the capacity payments are significantly higher  in
the  months  of  June  through  September.   Energy  is  sold  at
increasing  scheduled  rates for the  first  ten  years  of  each
contract and thereafter at Edison's Avoided Cost of Energy.

The scheduled energy price periods of the Partnership Project SO4
Agreements   extended  until  February  1996   for   the   Vulcan
Partnership  and extend until December 1998, December  1998,  and
December  1999  for  each  of the Hoch (Del  Ranch),  Elmore  and
Leathers Partnerships, respectively.

Excluding  Vulcan, which is receiving Edison's  Avoided  Cost  of
Energy,  the  Company's SO4 Agreements provide for  energy  rates
ranging from 13.6 cents per kWh in 1997 to 15.6 cents per kWh  in
1999.

The Salton Sea I Project sells electricity to Edison pursuant  to
a  30-year  negotiated power purchase agreement, as amended  (the
"Salton  Sea  I  PPA"), which provides for  capacity  and  energy
payments.   The initial contract capacity and contract  nameplate
are  each 10 MW.  The energy payment is calculated using  a  Base
Price which is subject to quarterly adjustments based on a basket of
<PAGE>
               THE SALTON SEA FUNDING CORPORATION

            MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS
              (in thousands, except per kwh data)
               _________________________________


Results of Operations:  (continued)

indices.   The  time period weighted average energy  payment  for
Salton  Sea I was 5.3 cents per kWh during the nine months  ended
September  30,  1997.  As the Salton Sea I  PPA  is  not  an  SO4
Agreement, the energy payments do not revert to Edison's  Avoided
Cost of Energy.

The Salton Sea II and Salton Sea III Projects sell electricity to
Edison pursuant to 30-year modified SO4 Agreements.  The contract
capacities and contract nameplates are 15 MW and 20 MW for Salton
Sea  II and 47.5 MW and 49.8 MW for Salton Sea III, respectively.
The  contracts require Edison to make capacity payments, capacity
bonus  payments  and  energy payments.  The  price  for  contract
capacity  and contract capacity bonus payments is fixed  for  the
life of the modified SO4 Agreements.  The energy payments for the
first ten year period, which expires April 4, 2000 for Salton Sea
II  and February 13, 1999 for Salton Sea III, are levelized at  a
time  period weighted average of 10.6 cents per kWh and 9.8 cents
per  kWh  for  Salton  Sea II and Salton Sea  III,  respectively.
Thereafter,  the  monthly energy payments  will  be  at  Edison's
Avoided  Cost  of  Energy.  For  Salton Sea II  only,  Edison  is
entitled  to  receive, at no cost, 5% of all energy delivered  in
excess of 80% of contract capacity through March 31, 2004.

The Salton Sea IV Project sells electricity to Edison pursuant to
a  modified  SO4  agreement which provides for contract  capacity
payments on 34 MW of capacity at two different rates based on the
respective  contract  capacities  deemed  attributable   to   the
original  Salton Sea PPA option (20 MW) and to the original  Fish
Lake  PPA  (14  MW).  The capacity payment price for  the  20  MW
portion  adjusts quarterly based upon specified indices  and  the
capacity payment price for the 14 MW portion is a fixed levelized
rate.   The energy payment (for deliveries up to a rate  of  39.6
MW)  is  at a fixed price for 55.6% of the total energy delivered
by  Salton Sea IV and is based on an energy payment schedule  for
44.4%  of  the  total  energy delivered by Salton  Sea  IV.   The
contract  has  a  30-year  term but Edison  is  not  required  to
purchase the 20 MW of capacity and energy originally attributable
to  the  Salton  Sea I PPA option after September 30,  2017,  the
original termination date of the Salton Sea I PPA.

For  the  nine months ended September 30, 1997, Edison's  average
Avoided   Cost  of  Energy  was  3.2  cents  per  kWh  which   is
substantially  below the contract energy prices  earned  for  the
nine  months  ended  September 30, 1997.  Estimates  of  Edison's
future  Avoided Cost of Energy vary substantially  from  year  to
year. The Company cannot predict the likely level of Avoided Cost
of  Energy  prices under the SO4 Agreements and the modified  SO4
Agreements          at         the         expiration          of
<PAGE>
               THE SALTON SEA FUNDING CORPORATION
            MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS
              (in thousands, except per kwh data)
              ____________________________________

Results of Operations:  (continued)

the scheduled payment periods.  The revenues generated by each of
the  projects  operating  under  such  Agreements  could  decline
significantly  after  the expiration of the respective  scheduled
payment periods.

The   following   data  includes  the  aggregate   capacity   and
electricity production of Salton Sea Units I, II, III and IV:

                        Three Months Ended       Nine Months Ended
                           September 30,           September 30,
                            1997       1996        1997    1996
Operating capacity factor    95.7%      97.9%     94.6%    89.6%
Capacity (NMW)
  (weighted average)*        119.4     119.4      119.4     97.4
kWh produced
  (in thousands)           252,300   258,000    740,200  573,900

*Weighted  average  for the commencement  of  operations  at  the
Salton Sea Unit IV for 1996.

The   following   data  includes  the  aggregate   capacity   and
electricity production of Vulcan, Del Ranch, Elmore and Leathers:

                         Three Months Ended       Nine Months Ended
                            September 30,           September 30,
                            1997       1996        1997     1996
Operating capacity factor   105.6%     106.4%    101.9%    106.5%
Capacity NMW (average)         148       148        148       148
kWh produced (in thousands)345,000   347,700    987,700 1,016,300

Revenues:

The  Salton  Sea  Guarantors' sales of electricity  increased  to
$33,884  for  the  three  months ended September  30,  1997  from
$33,413  for the same period of 1996, a 1.4% increase.   For  the
nine  month period ended September 30, 1997, sales of electricity
increased  to  $82,307 from $68,646 in 1996,  a  19.9%  increase.
This  increase  was  primarily due to the  addition  of  Unit  IV
production  on June 1, 1996 and increased electric production  at
the other plants.

The  Partnership  Guarantors' sales of electricity  increased  to
$49,547  for  the  three  months ended September  30,  1997  from
$46,031  for the same period in 1996, a 7.6% increase.   For  the
nine  month period ended September 30, 1997, sales of electricity
increased  to  $122,458 from $98,186 in 1996, a  24.7%  increase.
These
<PAGE>
               THE SALTON SEA FUNDING CORPORATION
            MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS
              (in thousands, except per kwh data)
               ___________________________________
Results of Operations:  (continued)

increases  were  primarily due to the purchase of Edison  Mission
Energy's   50%  partnership  interest  in  the  four   geothermal
operating facilities in April 1996 and a scheduled price increase
at  some  of the facilities offset partially by turbine overhauls
at Vulcan and Del Ranch in April 1997.

The  Royalty Guarantor revenue increased to $8,628 for the  three
months  ended September 30, 1997 from $7,784 for the same  period
last  year.  For the nine month period ended September 30,  1997,
revenue  increased  to  $24,411 from $22,422  in  1996,  an  8.9%
increase.   These increases were due primarily to  higher  energy
sales  at  Del Ranch, Elmore and Leathers compared  to  the  same
periods of 1996.

Operating Expenses:

The  Salton  Sea  Guarantors' operating expenses,  which  include
royalty,  operating,  and  general and  administrative  expenses,
increased  to  $8,218, for the three months ended  September  30,
1997  from $7,576 for the same period in 1996. For the nine month
period ended September 30, 1997, operating expenses increased  to
$21,328 from $19,302 in 1996.  This increase was primarily due to
the start up of the Salton Sea Unit IV plant in June 1996.

The  Partnership  Guarantors' operating expenses,  which  include
royalty,  operating,  and  general and  administrative  expenses,
decreased  to  $16,471 for the three months ended  September  30,
1997  from  $17,016 for the same period in 1996. The decrease  in
the  second  quarter  was due to a general reduction  in  various
operating  costs.  For the nine month period ended September  30,
1997,  operating  expenses increased to $48,119 from  $41,426  in
1996. The increase was primarily due to the Edison Mission Energy
acquisition.

The  Royalty Guarantors' operating expenses increased  to  $2,096
for the three months ended September 30, 1997 from $1,894 for the
same period in 1996, a 10.7% increase.  For the nine month period
ended  September 30, 1997, operating expenses increased to $5,928
from $5,446 in 1996, an 8.9% increase.  These increases were  due 
to the increase in the Partnership Projects' sales of electricity.

Depreciation and Amortization:

The   Salton   Sea  Guarantors'  depreciation  and   amortization
increased to $4,149 for the three months ended September 30, 1997
from  $3,973  for the same period of 1996, a 4.4% increase.   For
the  nine month period ended September 30, 1997, depreciation and
amortization  increased  to $12,333 from  $9,859  in  1996.   The
increase was due primarily to the start up of the Salton Sea Unit
IV plant in June 1996.
<PAGE>
               THE SALTON SEA FUNDING CORPORATION
            MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS
              (in thousands, except per kwh data)
               _________________________________

Results of Operations:  (continued)

The   Partnership   Guarantors'  depreciation  and   amortization
decreased to $9,657 for the three months ended September 30, 1997
from  $9,870  for the same period in 1996.  For  the  nine  month
period  ended  September 30, 1997, depreciation and  amortization
increased to $28,987 from $24,159 in 1996, a 20.0% increase.  The
increase   was  due  primarily  to  the  Edison  Mission   Energy
acquisition.

The  Royalty Guarantors' amortization decreased to $2,449 for the
three  months ended September 30, 1997 from $2,570 for  the  same
period of 1996, a 4.7% decrease. For the nine month period  ended
September 30, 1997, amortization decreased to $7,346 from  $7,710
in  1996.   These  decreases were due to decreases  in  allocated
purchase price depreciation.

Interest Expense:

The  Salton  Sea Guarantors' interest expense, net of capitalized
amounts, decreased to $4,528 for the three months ended September
30,  1997  from  $5,031  for the same period  in  1996,  a  10.0%
decrease.  The decrease is due to lower loan balances.   For  the
nine month period ended September 30, 1997, interest expense, net
of  capitalized  amounts, increased to $13,781  from  $11,343  in
1996.   Capitalized   interest  decreased  upon   completion   of
construction at the Salton Sea Unit IV plant in June 1996.

The  Partnership Guarantors' interest expense, net of capitalized
amounts,  decreased to $972 for the three months ended  September
30,  1997  from $2,025 for the same period in 1996.  The decrease
was  a  result of reduced indebtedness. For the nine month period
ended  September 30, 1997, interest expense, net  of  capitalized
amounts,  increased to $3,623 from $2,818 in 1996.  The  increase
was  a result of increased indebtedness due to the Edison Mission
Energy acquisition.

The  Royalty Guarantors' interest expense decreased to $1,002 for
the  three  months ended September 30, 1997 from $1,290  for  the
same  period in 1996.  For the nine month period ended  September
30,  1997,  interest expense decreased to $3,228 from  $3,989  in
1996.  These decreases were a result of reduced indebtedness.

Income Tax Provision:

The  Salton Sea Guarantors are comprised of partnerships.  Income
taxes  are  the  responsibility of the partners  and  Salton  Sea
Guarantors  have no obligation to provide funds to  the  partners
for  payment of any tax liabilities.  Accordingly, the Salton Sea
Guarantors have no tax obligations.
<PAGE>

               THE SALTON SEA FUNDING CORPORATION
            MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS
              (in thousands, except per kwh data)
               _________________________________

Results of Operations:  (continued)

The  Partnership  Guarantors income tax  provision  increased  to
$9,424  for the three months ended September 30, 1997 from $7,702
for  the  same  period in 1996, a 22.4% increase.  For  the  nine
month  period ended September 30, 1997, the provision for  income
taxes  increased  to  $17,533  from  $14,414  in  1996,  a  21.6%
increase.  These increases were primarily due to an  increase  in
income  before  income taxes resulting from  the  Edison  Mission
Energy  acquisition.  Income taxes will be paid by the parent  of
the  Guarantors from distributions to the parent company  by  the
Guarantors which occur after operating expenses and debt service.

The  Royalty  Guarantor's income tax provision was $981  for  the
three  months ended September 30, 1997 compared to $592  for  the
same  period in 1996.  For the nine month period ended  September
30,  1996, the income tax provision was $2,466 compared to $1,957
for  the  same  period in 1996. Tax obligations  of  the  Royalty
Guarantor  will  be remitted to the parent company  only  to  the
extent of cash flows available after operating expenses and  debt
service.

Net Income:

The  Salton  Sea Funding Corporation's net income for  the  three
months ended September 30, 1997 was $370 compared to $335 for the
same  period in 1996.  For the nine month period ended  September
30,  1997  net income decreased to $1,041 compared to  $1,358  in
1996.   The  net income primarily represents interest income  and
expense,  net  of  applicable tax, and  the  Salton  Sea  Funding
Corporation's 1% equity in earnings of the Guarantors.

The  Salton  Sea Guarantors' net income increased to $16,996  for
the three months ended September 30, 1997 compared to $16,836 for
the  same  period  of  1996.  For the  nine  month  period  ended
September  30, 1997, net income increased to $35,033 compared  to
$28,273 in 1996.

The  Partnership Guarantors' net income increased to $14,919  for
the three months ended September 30, 1997 compared to $12,026 for
the  same  period  of  1996.  For the  nine  month  period  ended
September  30, 1997, net income increased to $27,659 compared  to
$22,126 in 1996.

The  Royalty Guarantors' net income increased to $2,100  for  the
three months ended September 30, 1997 compared to $1,438 for  the
same  period of 1996.  For the nine month period ended  September
30,  1997,  net income increased to $5,443 compared to $3,320  in
1996.
<PAGE>
               THE SALTON SEA FUNDING CORPORATION
            MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS
              (in thousands, except per kwh data)
               _________________________________

Liquidity and Capital Resources:

The Salton Sea Funding Corporation's primary source of revenue is
principal and interest payments on the secured project  notes  of
the  Guarantors.   The  Salton  Sea Guarantors'  only  source  of
revenue  is  payments received pursuant to long term power  sales
agreements  with Edison, other than interest earned on  funds  on
deposit.   The Partnership Guarantors' primary source of  revenue
is payments received pursuant to long term power sales agreements
with  Edison.  The Partnership Guarantors' also receive a special
distribution.  The Royalty Guarantor receives Royalties  pursuant
to  resource  lease agreements with the Partnership Projects  and
the   East  Mesa  Project.   These  payments,  for  each  of  the
Guarantors,  are expected to be sufficient to fund operating  and
maintenance expenses, payments of interest and principal  on  the
Securities,  projected  capital  expenditures  and  debt  service
reserve fund requirements.
<PAGE>
                 SALTON SEA FUNDING CORPORATION

                  PART II - OTHER INFORMATION


Item 1 -  Legal Proceedings.

    The  Salton  Sea Funding Corporation is not a  party  to  any
    material legal matters.

Item 2 -  Changes in Securities.

    Not applicable.

Item 3 -  Default on Senior Securities.

    Not applicable.

Item 4 -  Submission of Matters to a Vote of Security Holders.

    Not applicable.

Item 5 -  Other Information.

    Not applicable.

Item 6 -  Exhibits and Reports on Form 8-K.

         (a)                    Exhibits:

          Exhibit 27 - Financial Data Schedule

         (b)          Report on Form 8-K:

    Not applicable.
<PAGE>
                           SIGNATURES


Pursuant  to the requirements of the Securities Exchange  Act  of
1934  the registrant has duly caused this report to be signed  on
its behalf by the undersigned thereunto duly authorized.


                              SALTON SEA FUNDING CORPORATION

Date:  November 13, 1997      /s/  Craig M. Hammett

                                 Craig M. Hammett
                                 Vice President and
                                 Chief Financial Officer

                                
                                
<PAGE>                                
                          EXHIBIT INDEX

Exhibit                                                    Page
  No.                                                       No.

  27     Financial Data Schedule                            36