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 March 31, 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 March 31, 1997.

                       SALTON SEA FUNDING CORPORATION

                                 Form 10-Q

                              March 31, 1997
            -------------------------------------------------------

                             C O N T E N T S


PART I:  FINANCIAL INFORMATION


Item 1.	Financial Statements	                                             Page

SALTON SEA FUNDING CORPORATION

Independent Accountants' Reports	                                            4

Balance Sheets, March 31, 1997 and December 31, 1996	                        5

Statements of Operations for the Three Months Ended March 31, 1997 and 1996	 6

Statements of Cash Flows for the Three Months Ended March 31, 1997 and 1996	 7

Notes to Financial Statements	                                               8

SALTON SEA GUARANTORS

Independent Accountants' Report	                                             9

Combined Balance Sheets, March 31, 1997 and December 31, 1996	              10

Combined Statements of Operations for the Three Months Ended 
 March 31, 1997 and 1996	                                                   11

Combined Statements of Cash Flows for the Three Months Ended 
 March 31, 1997 and 1996	                                                   12

Notes to Combined Financial Statements	                                     13

PARTNERSHIP GUARANTORS

Independent Accountants' Report	                                            14

Combined Balance Sheets, March 31, 1997 and December 31, 1996	              15

Combined Statements of Operations for the Three Months Ended 
  March 31, 1997 and 1996	                                                  16

Combined Statements of Cash Flows for the Three Months Ended 
  March 31, 1997 and 1996	                                                  17

Notes to Combined Financial Statements	                                     18

SALTON SEA ROYALTY COMPANY

Independent Accountants' Report	                                            20

Balance Sheets, March 31, 1997 and December 31, 1996                       	21

Statements of Operations for the Three Months Ended March 31, 1997  
  and 1996	                                                                 22

Statements of Cash Flows for the Three Months Ended March 31, 1997 
  and 1996	                                                                 23

Notes to Financial Statements	                                              24

Item 2.	Management's Discussion and Analysis of
		Financial Condition and Results of Operations	                            25


	PART II:  OTHER INFORMATION

Item 1.	Legal Proceedings	                                                  30
Item 2.	Changes in Securities	                                              30
Item 3.	Defaults on Senior Securities	                                      30
Item 4.	Submission of Matters to a Vote of Security Holders	                30
Item 5.	Other Information	                                                  30
Item 6.	Exhibits and Reports on Form 8-K	                                   30

Signatures		                                                                31

Exhibit Index		                                                             32
 





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 March 31, 1997, and the related statements of operations and 
cash flows for the three-month periods ended March 31, 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, stockholder's 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
April 29, 1997


                         SALTON SEA FUNDING CORPORATION 

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

                                                 		March 31,     	December 31,
                                                   		1997            	1996
                                               ---------------  ---------------
                                               		(unaudited)
ASSETS
Cash	                                              $ 51,340	        $ 13,218
Restricted cash and short-term investments	          12,411	          14,044
Prepaid expenses and other assets                   	13,597	           3,452
Notes receivables from affiliates                  	538,982	         538,982
Investment in 1% of net assets of
	Guarantors                                          	6,422	           6,293
                                             		-------------	   -------------
                                                 		$622,752	        $575,989
                                                  		=======         	=======

LIABILITIES AND STOCKHOLDER'S EQUITY 
Liabilities: 
Accrued liabilities	                               $ 13,065	        $  3,291
Due to affiliates	                                   61,711	          25,022
Senior secured notes and bonds	                     538,982	         538,982
                                             		-------------   	-------------
	Total liabilities	                                 613,758	         567,295

Stockholder's equity: 
Common stock, par value $.01 per share;
	authorized 1,000 shares,
	issued and outstanding 100 shares	                       -               	-
Additional paid-in capital	                           5,352	           5,366
Retained earnings	                                    3,642           	3,328
                                             		-------------	   -------------
	Total stockholder's equity                          	8,994	           8,694
                                             		-------------   	-------------
                                                 		$622,752        	$575,989
                                                  		=======	         =======

	The accompanying notes are an integral part of these financial statements.

                      SALTON SEA FUNDING CORPORATION 

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

                                                     Three Months Ended
                                                          March 31,    
	                                                    1997          1996 	
Revenues:	                                      -------------	 ------------

Interest income                                    	$10,405	      $ 8,953 	
Equity in earnings of Guarantors                       	143           	88	
                                               		-----------  	-----------	
Total revenues	                                      10,548        	9,041
                                               		-----------  	-----------	
Expenses:

General and administrative expenses                    	240          	181	
Interest expense                                     	9,774	        7,990	
                                               		-----------  	-----------	
Total expenses                                      	10,014        	8,171	
                                               		-----------	  -----------	
Income before income taxes	                             534          	870 	
Provision for income taxes	                             220          	357	
                                               		-----------	  -----------	
Net income	                                         $   314	      $   513	
                                                   		======       	======

	The accompanying notes are an integral part of these financial statements.

                        SALTON SEA FUNDING CORPORATION 

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


                                                 			Three Months Ended
			                                                      March 31,    
                                            			      1997        	1996        
                                             			  ---------- 	-----------
Cash flows from operating activities: 
	Net income	                                        $   314 	   $   513
	Adjustments to reconcile net income to net
		cash provided by operating activities: 
	Equity in earnings of guarantors	                     (143)       	(88)
	Changes in assets and liabilities: 
		Prepaid expenses and other assets	                (10,145)    	(7,875)
		Accrued liabilities	                                9,774      	6,942
                                              			----------- 	-----------
	Net cash flows from operating activities	             (200)	      (508)
                                              			----------- 	-----------
Cash flows from investing activities: 
Decrease in restricted cash and short-term 
 investments	                                         1,633	     13,040
                                              			----------- 	-----------
Cash flows from financing activities: 
Due to affiliates                                   	36,689	     (6,795)
                                               		----------- 	-----------
Net change in cash	                                  38,122	      5,737
Cash at the beginning of period                     	13,218	      4,393
                                              			----------- 	-----------
Cash at the end of period                         	$ 51,340	   $ 10,130
                                                  			======     	=======
Non-cash investing and financing activities: 
Adjustments resulting from capital transactions
		of Guarantors                                   	$    (14)  	$    112
                                                    		======    	=======

	The accompanying notes are an integral part of these financial statements.

                          SALTON SEA FUNDING CORPORATION

                          NOTES TO FINANCIAL STATEMENTS
                            (Dollars in Thousands)
                                  (Unaudited)
                -------------------------------------------------------


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 March 31, 1997 and the results of 
operations for the three months ended March 31, 1997 and 1996 and cash flows 
for the three months ended March 31, 1997 and 1996.

The results of operations for the three months ended March 31, 1997 and 1996 
are not necessarily indicative of the results to be expected for the full year.

The Funding Corporation was formed on June 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.  In particular, the significant accounting policies and 
practices were presented as Note 2 to the Funding Corporation financial 
statements included in that filing.









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 March 31, 1997, and the related combined statements of 
operations and cash flows for the three-month periods ended March 31, 1997 and 
1996.  These financial statements are the responsibility of the 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
April 29, 1997

                            SALTON SEA GUARANTORS

                           COMBINED BALANCE SHEETS
                            (Dollars in Thousands)
              -------------------------------------------------------

                                           			March 31,     	December 31,
                                             			1997             1996
                                         	---------------- 	---------------
                                          			(unaudited)
ASSETS 
Accounts receivable	                           $ 15,501	        $ 14,954 
Prepaid expenses and other assets	               14,314	          16,008 
Property, plant, contracts and equipment, net	  483,314         	484,182 
Excess of cost over fair value of net assets 
 acquired, net	                                  50,464          	50,790 
                                        			-------------   	-------------
                                            			$563,593        	$565,934 
                                             			=======         	=======

LIABILITIES AND GUARANTORS' EQUITY 
Liabilities: 
Accounts payable	                             $    160	        $    642 
Accrued liabilities                            	15,802           	9,989 
Due to affiliates	                              48,598          	64,091 
Senior secured project note                   	299,840         	299,840 
                                       			-------------   	-------------
	Total liabilities                            	364,400         	374,562 

Total Guarantors' equity	                      199,193         	191,372 
                                       			-------------   	-------------
                                           			$563,593        	$565,934 
                                            			=======         	=======

	The accompanying notes are an integral part of these financial statements.

                              SALTON SEA GUARANTORS 

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


                                      			Three Months Ended	
                                            			March 31,    
                                			----------------------------------	
                                        			1997	        1996	
                                   			------------ 	------------
Revenues:

Sales of electricity	                    $23,254      	$16,221	
Interest and other income	                     9	           68	
                                   			-----------  	-----------	
Total revenues	                           23,263	       16,289 	
                                   			-----------  	-----------	
Expenses:

Operating, general and administration     	7,161	        5,789	
Depreciation and amortization             	3,642	        2,682	
Interest expense	                          5,864        	6,257	
Less capitalized interest                	(1,225)	      (3,300)	
                                    		-----------  	-----------	
Total expenses	                           15,442       	11,428	
                                   			-----------  	-----------	
Net income	                              $ 7,821	      $ 4,861	
                                        		======	        ======	

	The accompanying notes are an integral part of these financial statements.

                             SALTON SEA GUARANTORS 

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

                                           				Three Months Ended
                                                				March 31,      
                                    				----------------------------------
                                           				1997         	1996    
                                       				-----------	  -----------
Cash flows from operating activities: 
Net income	                                  $ 7,821  	    $ 4,861
Adjustments to reconcile net income to net
	cash provided by operating activities: 
		Depreciation and amortization	               3,642 	       2,682 
		Changes in assets and liabilities:  
			Accounts receivable	                         (547)      	(5,809)
			Prepaid expenses and other assets          	1,694        	2,276
			Accounts payable and accrued
			 liabilities	                               5,331        	7,996 
                                     				------------	-------------
Net cash flows from operating activities	     17,941       	12,006
                                     				------------	-------------
Cash flows from investing activities: 
Capital expenditures	                         (2,448)	     (30,623)
                                      			------------	-------------
Cash flows from financing activities: 
Due to (from) affiliates	                    (15,493)	      18,163
                                     				------------	-------------
Net change in cash	                                -	         (454)
Cash at beginning of period	                       -	          454
                                     				------------	-------------
Cash at end of period                   	$         -	 $          -
                                          				=======	     ========

	The accompanying notes are an integral part of these financial statements.

                           SALTON SEA GUARANTORS

                 NOTES TO COMBINED FINANCIAL STATEMENTS
                          (Dollars in thousands)
                               (Unaudited)
          -------------------------------------------------------


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 March 31, 1997 and the results of operations for the 
three months ended March 31, 1997 and 1996 and cash flows for the three months 
ended March 31, 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 months ended March 31, 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.  In particular, the 
Guarantors' significant accounting policies and practices were presented as 
Note 2 to the Guarantors' combined financial statements included in that 
filing.

3.	Property, Plant, Contracts and Equipment:

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

                                          				March 31,     	December 31,
                                            				1997	            1996
                                  				--------------------	-------------------
Plant and equipment	                         $329,842	          $329,458
Power sale agreements	                         64,609            	64,609
Mineral reserves                              	68,056            	66,831
Exploration and development costs             	43,059            	42,220
                                     				-------------     	-------------
                                          				505,566	           503,118
Less accumulated depreciation
	and amortization	                            (22,252)          	(18,936)
                                     				-------------     	-------------
                                         				$483,314          	$484,182
                                          			========          	========






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 March 31, 1997, and the related combined statements of 
operations and cash flows for the three-month periods ended March 31, 1997 and 
1996.  These financial statements are the responsibility of the 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
April 29, 1997

                            PARTNERSHIP GUARANTORS

                            COMBINED BALANCE SHEETS
                             (Dollars in Thousands)
             -------------------------------------------------------


                                            			March 31,     	December 31,
                                              			1997            	1996 
                                     			--------------------	------------------
                                          			(unaudited)
ASSETS 
Accounts receivable	                           $ 22,800 	        $ 22,766
Due from affiliates	                            141,828	          129,278
Prepaid expenses and other assets               	16,024           	19,083
Property, plant, contracts and equipment, net	  366,699	          364,849
Management fee                                  	67,660           	67,521
Excess of cost over fair value of net assets 
 acquired, net	                                 137,795          	138,686
                                        			-------------    	-------------
                                            			$752,806         	$742,183
                                              		=======	          =======


LIABILITIES AND GUARANTORS' EQUITY 
Liabilities: 
Accounts payable                             	 $    901	        $    663
Accrued liabilities	                             26,773	          22,977
Senior secured project notes	                   182,204	         182,204
Deferred income taxes	                          111,380         	108,277
                                         			------------   	-------------
Total liabilities	                              321,258         	314,121

Guarantors' equity:
Common stock	                                         3	               3
Additional paid-in capital	                     387,663         	387,663
Retained earnings	                               43,882          	40,396
                                        			-------------   	-------------
Total Guarantors' equity                       	431,548	         428,062
                                        			-------------	   -------------
                                            			$752,806        	$742,183
                                             			=======         	=======

	The accompanying notes are an integral part of these financial statements.

                              PARTNERSHIP GUARANTORS 

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

                                                 			Three Months Ended    
                                                      			March 31,	
                                       			-------------------------------------	
                                                 		1997           	1996   
                                            			-----------    	-----------	
Revenues:

Sales of electricity	                             $34,746        	$15,159	
Interest and other income                            	545	          2,220	
                                            			-----------    		----------	
Total revenues	                                    35,291         	17,379	
                                            			-----------     	----------	
Expenses:

Operating, general and administration	             16,282	          7,612	
Depreciation and amortization	                      9,644          	4,373	
Interest expense	                                   3,651          	2,007	
Less capitalized interest                         	(2,246)       	 (2,007)	
                                            			-----------	    -----------	
Total expenses	                                    27,331	         11,985	
                                             		-----------    	-----------	
Income before income taxes	                         7,960	          5,394	 
Provision for income taxes	                         3,103          	2,249	
                                            			-----------    	-----------	
Net income	                                       $ 4,857	        $ 3,145	
                                                		=======       	 =======	

	The accompanying notes are an integral part of these financial statements.


                             PARTNERSHIP GUARANTORS 

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

                                                   	Three Months Ended
                                                        	March 31, 
                                           	-----------------------------------
                                                    	1997        	1996
                                                	------------	------------

Cash flows from operating activities: 
Net income	                                       $  4,857	     $  3,145
Adjustments to reconcile net income to net
	cash provided by operating activities: 
		Depreciation and amortization                    	 9,644        	4,373
		Deferred income taxes	                             3,103	        2,249
		Changes in assets and liabilities: 
			Accounts receivable                                	(34)       	2,226
			Prepaid expenses and other assets	                3,059       	(2,163)
			Accounts payable and accrued liabilities	         4,034      	(15,094)
                                               ____________ _____________
Net cash flows from operating activities	           24,663       	(5,264)
                                           				------------	-------------
Cash flows from investing activities: 
Capital expenditures	                              (10,236)	      (3,736)
Management fee                                       	(506)        	(841)
Increase in restricted cash and short-term investments  	-         	(717)
                                           				------------ -------------
Net cash flows from investing activities	          (10,742)      	(5,294)
                                           				------------	-------------
Cash flows from financing activities: 
Increase in amounts due from affiliates	           (12,550)        	(914)
Repayments on loans payable	                             -       	(5,133)
Contributions from parent                               	-       	16,501
Distributions to parent	                            (1,371)           	-
                                           				------------	-------------
Net cash flows from financing activities	          (13,921)	      10,454
                                           				------------	-------------
Net change in cash	                                      -	         (104)
Cash at beginning of period	                             -       	11,146
                                            			------------	-------------

Cash at end of period	                          $        -	     $ 11,042
                                               				=======	      =======

	The accompanying notes are an integral part of these financial statements.

                              PARTNERSHIP GUARANTORS

                     NOTES TO COMBINED FINANCIAL STATEMENTS
                              (Dollars in thousands)
                                   (Unaudited)
            -------------------------------------------------------


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 March 31, 1997 and the results of 
operations for the three months ended March 31, 1997 and 1996 and cash flows 
for the three months ended March 31, 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 months ended March 31, 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.  In particular, the 
Guarantors' significant accounting policies and practices were presented as 
Note 2 to the Guarantors' combined financial statements included in that 
filing.

3.	Property, Plant, Contracts and Equipment:

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

                                          				March 31,       	December 31,
                                            				1997	              1996
                                   				--------------------	-------------------
Plant and equipment	                          $ 62,776          	$ 60,272
Power sale agreements	                         123,588	           123,588
Process license	                                46,290            	46,290
Mineral reserves	                              123,445	           121,199
Exploration and development costs              	62,610            	59,303
                                       				------------     	-------------
                                           				418,709           	410,652
Less accumulated depreciation
	and amortization	                             (52,010)          	(45,803)
                                       				------------     	-------------
                                          				$366,699          	$364,849
                                          				========          	========

                                 PARTNERSHIP GUARANTORS

                        NOTES TO COMBINED FINANCIAL STATEMENTS
                                  (Dollars in thousands)
                                      (Unaudited)
                  -------------------------------------------------------


4.	Purchase of Edison Mission Energy's Partnership Interests

On April 17, 1996 CECI completed the indirect acquisition of Edison Mission 
Energy's partnership interests in the Vulcan, Hoch (Del Ranch), Leathers and 
Elmore geothermal operating facilities.  Magma Power Company, a wholly-owned 
subsidiary of CECI, currently operates these facilities and 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 pro forma combined revenue and net income of the Guarantors on a 
purchase, push down basis of accounting, for the three months ended March 31, 
1996, as if the acquisition had occurred at the beginning of the period after 
giving effect to certain pro forma adjustments related to the acquisition were 
$36,065 and $4,238, respectively.






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 March 31, 1997, and the related statements of operations and cash 
flows for the three-month periods ended March 31, 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 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
April 29, 1997

                             SALTON SEA ROYALTY COMPANY

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


                                            		March 31,       	December 31,
                                             			1997 	             1996  
                                        	------------------ 	-----------------
                                          			(unaudited)
ASSETS 
Due from affiliates	                           $ 15,992	          $ 10,008
Royalty stream, net	                             42,150	            44,372
Excess of cost over fair value of net 
  assets acquired, net	                          34,777	            35,004
Prepaid expenses and other assets	                1,512	             1,689
                                        			-------------     	-------------
                   		                         	$ 94,431          	$ 91,073
                                             			=======           	=======


LIABILITIES AND EQUITY 
Liabilities: 
Accrued liabilities	                           $ 14,640         	$ 12,070
Senior secured project note                     	56,936	           56,936
Deferred income taxes	                           11,349           	12,227
                                       			--------------    	-------------
Total liabilities	                               82,925	           81,233

Equity:
Common stock, par value $.01 per share; 100 shares authorized
	issued and outstanding	                              -	                -
Additional paid-in capital	                       1,561 	           1,561
Retained earnings	                                9,945	            8,279
                                        			-------------    	-------------
Total equity	                                    11,506            	9,840
                                        			-------------	    -------------
                                 			           $ 94,431	         $ 91,073
                                             			=======          	=======

	The accompanying notes are an integral part of these financial statements.

                              SALTON SEA ROYALTY COMPANY

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

                                               	Three Months Ended	
                                                    	March 31,   
                                        ---------------------------------	
                                              		1997          	1996	
                                          		-----------    	----------	
Revenues:
Royalty income	                               $ 7,861	        $ 6,941	

Expenses:
Operating, general and administrative expenses	 1,877	          1,707	
Amortization of royalty stream and goodwill    	2,449	          2,570	
Interest expense	                               1,132	          1,358	
                                            	---------   	 -----------	
Total expenses	                                 5,458          	5,635	
                                          			---------    	-----------	

Income before income taxes                     	2,403          	1,306	
Provision for income taxes                       	737	            478	
                                          			---------    	-----------	
Net income                                   	$ 1,666	        $   828	
			                                            =======           ====	

	The accompanying notes are an integral part of these financial statements.

                         SALTON SEA ROYALTY COMPANY

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

                                             				Three Months Ended
                                                  				March 31,     
                                               ------------------------
                                              				1997	        1996
                                           				----------- 	-----------
Cash flows from operating activities: 
Net income	                                       $1,666      	$  828
Adjustments to reconcile net income to net
	cash provided by operating activities: 
		Amortization of royalty stream and goodwill	     2,449	       2,570
		Changes in assets and liabilities:
		Prepaid expenses and other assets	                 177         	222
		Accrued liabilities and deferred income taxes   	1,692	       1,614
                                          				----------- 	-----------
Net cash flows from operating activities          	5,984       	5,234

Net cash flows from investing activities	              -	           -
                                           			----------- 	-----------
Net cash flows from financing activities:
Decrease (increase) in due from affiliates        (5,984)        	125
Distribution to parent	                                -       (5,359)
                                          				----------- 	-----------
Net cash flows from financing activities	         (5,984)	     (5,234)
                                          				-----------	 -----------
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.

                        SALTON SEA ROYALTY COMPANY

                       NOTES TO FINANCIAL STATEMENTS
                           (Dollars in thousands)
                                (Unaudited)
          -------------------------------------------------------


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 March 31, 1997 and the results of operations for the 
three months ended March 31, 1997 and 1996 and cash flows for the three months 
ended March 31, 1997 and 1996.

The results of operations for the three months ended March 31, 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 
Guarantor's business and financial statement presentations.  In particular, the 
Guarantor's significant accounting policies and practices were presented in 
Note 2 to the Company's financial statements included in that report.


                      THE SALTON SEA FUNDING CORPORATION

                    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                  (Dollars 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 Funding Corporation's and 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, as defined, 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 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 bonus payments and energy payments.  Edison 
makes fixed annual capacity bonus 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 
indices.  The time period weighted average energy payment for Salton Sea I was 
5.22 cents per kWh during the three months ended March 31, 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


                            THE SALTON SEA FUNDING CORPORATION

                          MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                       FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                        (Dollars in Thousands, Except per kWh Data)
            --------------------------------------------------------------

Results of Operations:  (continued)

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 three months ended March 31, 1997, Edison's average Avoided Cost of 
Energy was 3.8 cents per kWh which is substantially below the contract energy 
prices earned for the three months ended March 31, 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 the 
scheduled payment periods.  The revenues generated by each of the projects 
operating under SO4 Agreements could decline significantly after the expiration 
of the respective scheduled payment periods.

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

                                                    	Three Months Ended	
                                                          	March 31,   	
                                            	----------------------------------	
                                                  				1997          	1996	
                                               				-----------  	-----------	
Overall capacity factor	                                98.8%	        89.6%	
Capacity NMW (average)	                                119.4         	79.8	
kWh produced (in thousands)	                         254,800	      156,200	

The overall capacity factor for the Salton Sea Project has increased for the 
three months ended March 31, 1997 compared to the same period in 1996 primarily 
as a result of the commencement of operations at the Salton Sea IV project and 
operating efficiencies resulting in greater production at Salton Sea Units I, 
II and III.


                          THE SALTON SEA FUNDING CORPORATION

                       MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                   FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                    (Dollars in Thousands, Except per kWh Data)
          --------------------------------------------------------------


Results of Operations:  (continued)

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

                                                  	Three Months Ended	
                                                        	March 31,    
                                             	-------------------------------
			                                                 	1997	       1996	
                                             				-----------	-----------	

Overall capacity factor	                             101.8%      	97.6%	
Capacity NMW (average)                              	148.0 	     148.0 	 
kWh produced (in thousands)	                       325,300    	315,600 	 

The overall capacity factor for the Partnership Project increased for the first 
quarter of 1997 compared to the first quarter of 1996 due to increased 
production at Leathers and Elmore as both facilities had scheduled turbine 
overhauls in 1996.

The Salton Sea Guarantors' sales of electricity increased to $23,254 for the 
three months ended March 31, 1997 from $16,221 for the same period of 1996, a 
43.4% increase.  This increase was primarily due to the addition of Unit IV 
production in June 1996 and increased electric production at the other plants.

The Partnership Guarantors' sales of electricity increased to $34,746 for the 
three months ended March 31, 1997 from $15,159 for the same period in 1996, a 
129.2% increase.  This increase was primarily due to the purchase of Edison 
Mission Energy's 50% partnership interest in the four geothermal operating 
facilities in April 1996.  

The Royalty Guarantor's revenues increased to $7,861 for the three months ended 
March 31, 1997 from $6,941 for the same period last year.  This increase was 
due primarily to higher energy sales at Elmore and Leathers compared to the 
same period last year.

The Salton Sea Guarantors' operating expenses, which include royalty, 
operating, and general and administrative expenses, increased to $7,161, for 
the three months ended March 31, 1997 from $5,789 for the same period in 1996. 
This increase was primarily due to the commencement of operations at the 
Salton Sea Unit IV plant in June 1996.

The Partnership Guarantors' operating expenses, which include royalty, 
operating, and general and administrative expenses, increased to $16,282 for 
the three months ended March 31, 1997 from $7,612 for the same period in 1996. 
 This increase was primarily due to the Edison Mission Energy Partnership 
Interest Acquisition.

The Royalty Guarantors' operating expenses increased to $1,877 for the three 
months ended March 31, 1997 from $1,707 for the same period in 1996, a 10.0% 
increase.  This increase was due to a scheduled increase in third party lessor 
royalties related to the increase in the Partnership Projects' sales of 
electricity.


                           THE SALTON SEA FUNDING CORPORATION

                        MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                     FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                      (Dollars in Thousands, Except per kWh Data)
             ---------------------------------------------------------------


Results of Operations:  (continued)

The Salton Sea Guarantors' depreciation and amortization increased to $3,642 
for the three months ended March 31, 1997 from $2,682 for the same period of 
1996, a 35.8% increase.  This increase was due primarily to the depreciation 
related to Salton Sea Unit IV plant.

The Partnership Guarantors' depreciation and amortization increased to $9,644 
for the three months ended March 31, 1997 from $4,373 for the same period in 
1996, a 120.5% increase.  This increase was due primarily to the Edison Mission 
Energy Partnership Interest Acquisition.

The Royalty Guarantors' amortization decreased to $2,449 for the three months 
ended March 31, 1997 from $2,570 for the same period of 1996, a 4.7% decrease. 
  This decrease is a result of scheduled amortization.

The Salton Sea Guarantors' interest expense, net of capitalized amounts, 
increased to $4,639 for the three months ended March 31, 1997 from $2,957 for 
the same period in 1996, a 56.9% increase.  This increase was due primarily to 
the capitalization of interest related to the Salton Sea Unit IV expansion 
during the construction period in 1996,  offset partially by the decreased 
indebtedness in 1997 due to the scheduled payments on the debt.

The Partnership Guarantors' interest expense, net of capitalized amounts, 
increased to $1,405 for the three months ended March 31, 1997 from $0 for the 
same period in 1996 as the result of additional indebtedness primarily related 
to the Edison Mission Energy Partnership Interest Acquisition.

The Royalty Guarantors' interest expense decreased to $1,132 for the three 
months ended March 31, 1997 from $1,358 from the same period in 1996.  The 
decrease was the result of scheduled payments on the debt.

The Salton Sea Guarantors are primarily 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.

The Partnership Guarantors income tax provision increased to $3,103 for the 
three months ended March 31, 1997 from $2,249 for the same period in 1996, a 
38.0% increase.  This increase was primarily due to an increase in income 
before income taxes resulting from the Edison Mission Energy Partnership 
Interest 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 $737 for the three months 
ended March 31, 1997 compared to $478 for the same period in 1996.  This 
increase was due primarily to increased earnings in the current year.  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.  



                            THE SALTON SEA FUNDING CORPORATION

                           MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                       FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                        (Dollars in Thousands, Except per kWh Data)
              --------------------------------------------------------------


Results of Operations:  (continued)

The Salton Sea Funding Corporation's net income for the three months ended 
March 31, 1997 was $314 compared to $513 for the same period in 1996.  Net 
income primarily represented 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 $7,821 for the three months 
ended March 31, 1997 compared to $4,861 for the same period of 1996.  

The Partnership Guarantors' net income increased to $4,857 for the three months 
ended March 31, 1997 compared to $3,145 for the same period of 1996. 

The Royalty Guarantors' net income increased to $1,666 for the three months 
ended March 31, 1997 compared to $828 for the same period of 1996. 

Liquidity and Capital Resources:

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.


                            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.

                                    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

                        				/s/	Gregory E. Abel	
Date:  May 14, 1997		           Gregory E. Abel
                           					Executive Vice President and
                           					Chief Accounting Officer


                        		 	/s/	John G. Sylvia	
                           					John G. Sylvia
                           					Senior Vice President and
                           					Chief Financial Officer

                              EXHIBIT INDEX

 Exhibit	                                                        	Page
   No.                                                         		  No.  

   27	Financial Data Schedule                                     	33