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 June 30, 1999
          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 LLC               Delaware     33-0453364
Vulcan Power Company              Nevada       95-3992087
CalEnergy Operating Corporation   Delaware     33-0268085
Salton Sea Royalty LLC            Delaware     47-0790492
VPC Geothermal LLC                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
Salton Sea Power LLC              Delaware     47-0810713
CalEnergy Minerals LLC            Delaware     47-0810718
CE Turbo LLC                      Delaware     47-0812159
CE Salton Sea Inc.                Delaware     47-0810711
Salton Sea Minerals Corporation   Delaware     47-0811261
(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 June 30, 1999.
<PAGE>
                 SALTON SEA FUNDING CORPORATION

                           Form 10-Q

                         June 30, 1999
                         _____________

                        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, June 30, 1999 and December 31, 1998                        5

Statements of Operations for the Three and Six Months Ended
 June 30, 1999 and 1998                                                    6

Statements of Cash Flows for the Six Months Ended
 June 30, 1999 and 1998                                                    7

Notes to Financial Statements                                              8

SALTON SEA GUARANTORS

Independent Accountants' Report                                            9

Combined Balance Sheets, June 30, 1999 and December 31, 1998               10

Combined Statements of Operations for the Three and Six Months
Ended June 30, 1999 and 1998                                               11

Combined Statements of Cash Flows for the Six Months Ended
 June 30, 1999 and 1998                                                    12

Notes to Combined Financial Statements                                     13
<PAGE>
PARTNERSHIP GUARANTORS

Independent Accountants' Report                                            14

Combined Balance Sheets, June 30, 1999 and December 31, 1998               15

Combined  Statements of Operations for the Three and  Six  Months
Ended June 30, 1999 and 1998                                               16

Combined Statements of Cash Flows for the Six Months Ended
 June 30, 1999 and 1998                                                    17

Notes to Combined Financial Statements                                     18

SALTON SEA ROYALTY COMPANY

Independent Accountants' Report                                            19

Balance Sheets, June 30, 1999 and December 31, 1998                        20

Statements of Operations for the Three and Six Months Ended
 June 30, 1999 and 1998                                                    21

Statements of Cash Flows for the Six Months Ended
 June 30, 1999 and 1998                                                    22

Notes to Financial Statements                                              23

Item 2.  Management's Discussion and Analysis of
         Financial Condition and Results of Operations                     24


                  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  June  30,  1999,  and  the  related
statements  of  operations for the three and  six  month  periods
ended  June  30, 1999 and 1998 and cash flows for the  six  month
periods ended June 30, 1999 and 1998.  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, 1998, 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  28,  1999, (March 3, 1999 as to Note 4) 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, 1998 is fairly stated, in all material
respects, in relation to the balance sheet from which it has been
derived.


DELOITTE & TOUCHE LLP
Omaha, Nebraska
July 26, 1999
<PAGE>
                SALTON SEA FUNDING CORPORATION

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



                                        June 30,      December 31,
                                          1999            1998
                                       ___________     __________
                                        (unaudited)
ASSETS
Cash                                $     12,349      $  17,629
Prepaid expenses and other assets          4,695          6,768
Secured project notes from Guarantors    597,898        626,816
Investment in 1% of net assets of
  Guarantors                               8,332          8,124
                                      __________     __________
                                     $   623,274      $ 659,337
                                      ==========     ==========

LIABILITIES AND STOCKHOLDER'S EQUITY
Liabilities:
Accrued liabilities                $       3,740      $   3,971
Due to affiliates                          9,369         16,612
Senior secured notes and bonds           597,898        626,816
                                      __________     __________
  Total liabilities                      611,007        647,399

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                          6,901          6,572
                                      __________     __________
  Total stockholder's equity              12,267         11,938
                                      __________     __________
                                    $    623,274      $ 659,337
                                      ==========     ==========

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 June 30 Six Months Ended June 30,
                                1999         1998            1999     1998
Revenues:

Interest income           $     11,982  $    8,719      $  24,111  $  17,709
Equity in earnings of
 Guarantors                         92         236            208        397

Total revenues                  12,074       8,955         24,319     18,106
                             _________    ________        _______    _______

Expenses:

General and administrative
 expenses                          188         235            403       473
Interest expense                11,622       8,020         23,359    16,279
                             _________    ________        _______   _______
Total expenses                  11,810       8,255         23,762    16,752
                             _________    ________        _______   _______
Income before income taxes         264         700            557     1,354
Provision for income taxes         107         286            228       555
                             _________    ________        _______   _______
Net income                   $     157    $    414        $   329   $   799
                             =========    ========        =======   =======

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

                                                             Six Months Ended
                                                                  June 30,
                                                              1999      1998

Cash flows from operating activities:
  Net income                                             $     329    $    799
  Adjustments to reconcile net income to net
     cash flows from operating activities:
  Equity in earnings of guarantors                            (208)       (397)
  Changes in assets and liabilities:
     Prepaid expenses and other assets                       2,073         296
     Accrued liabilities                                      (231)       (375)
                                                         __________   _________
  Net cash flows from operating activities                   1,963         323
                                                         __________   ________
Cash flows from investing activities:
  Principal repayments of secured project notes
    from Guarantors                                         28,918      53,469
                                                        __________   _________
  Net cash flows from investing activities                  28,918      53,469
                                                          ________   _________
Cash flows from financing activities:
  Decrease in due to affiliates                             (7,243)     (9,907)
  Repayment of senior secured notes and bonds              (28,918)    (53,469)
                                                        __________   _________
  Net cash flows from financing activities                 (36,161)    (63,376)
                                                        __________   _________
Net change in cash                                          (5,280)     (9,584)
Cash at the beginning of period                             17,629      15,568
                                                        __________   _________
Cash  at  the  end  of period                           $   12,349   $   5,984
                                                        ==========   =========


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 June 30, 1999 and the
results of operations for the three and six months ended June 30,
1999  and  1998 and cash flows for the six months ended June  30,
1999  and 1998.  The results of operations for the three and  six
months   ended  June  30,  1999  and  1998  are  not  necessarily
indicative of the results to be expected for the full year.

The  unaudited financial statements shall be read in  conjunction
with   the   financial  statements  included   in   the   Funding
Corporation's  annual  report on Form 10-K  for  the  year  ended
December 31, 1998.

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

2.  Disposition of power generation assets:

On  February  8, 1999, MidAmerican Energy Holdings  Company,  the
successor  to CalEnergy Company, Inc. ("MidAmerican")  created  a
new   subsidiary,   CE  Generation  LLC  ("CE  Generation")   and
subsequently  transferred its interest in  the  power  generation
assets  in  the Imperial Valley to CE Generation.   On  March  3,
1999,  MidAmerican  closed  the sale  of  50%  of  its  ownership
interests  in  CE Generation to an affiliate of  El  Paso  Energy
Corporation.

<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 June 30,  1999,  and  the  related
combined  statements of operations for the three  and  six  month
periods  ended June 30, 1999 and 1998 and cash flows for the  six
month  periods  ended  June 30, 1999 and 1998.   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, 1998, 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  28,  1999, (March 3,  1999  as  to  Note  6),  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,  1998  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
July 26, 1999
<PAGE>
                     SALTON SEA GUARANTORS

                    COMBINED BALANCE SHEETS
                     (Dollars in Thousands)


                                       June  30,     December 31,
                                         1999           1998
                                      __________      _________
                                     (unaudited)
ASSETS
Restricted cash                       $   49,348     $  71,673
Accounts receivable                       20,258        15,957
Prepaid expenses and other assets         10,390        12,410
Property, plant, contracts and
    equipment, net                       500,131       480,293
Excess of cost over fair value of net assets
   acquired, net                          47,530        48,182
                                       _________      _________
                                       $ 627,657     $ 628,515
                                        ========       ========


LIABILITIES AND GUARANTORS' EQUITY
Liabilities:
Accounts payable                      $      560     $     504
Accrued liabilities                        9,043         7,166
Due to affiliates                         27,172        30,688
Senior secured project note              301,992       310,030
                                       _________      _________
  Total liabilities                      338,767       348,388

Total Guarantors' equity                 288,890       280,127
                                       _________      _________
                                       $ 627,657     $ 628,515
                                       =========      =========

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  Six Months Ended
                                                June 30            June 30
                                              ___________       ___________
                                            1999       1998     1999     1998
                                        ________    ________  ________  _______
Revenues:

Sales of electricity                    $ 19,546  $ 27,612   $ 37,818 $ 47,797
Interest and other income                    651         7      1,443       22
                                         _______   _______    _______   _______
  Total revenues                          20,197    27,619     39,261   47,819
                                         _______   _______    _______   _______
Expenses:

Operating, general and administration      6,227     7,800     13,535   14,547
Depreciation and amortization              4,421     3,726      8,443    7,440
Interest expense                           6,095     5,199     12,171   10,459
Less capitalized interest                 (1,947)   (1,280)    (3,651)  (2,612)
                                         _______    _______   _______   _______
  Total expenses                          14,796    15,445     30,498   29,834
                                         _______    _______   _______   _______
Net income                              $  5,401  $ 12,174   $  8,763 $ 17,985
                                         =======    =======   =======   =======

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

               COMBINED STATEMENTS OF CASH FLOWS
                     (Dollars in Thousands)
                          (Unaudited)
                                                Six Months Ended
                                                     June 30,
                                              ____________________

                                                 1999    1998
Cash flows from operating activities:
Net income                                 $    8,763 $ 17,985
Adjustments to reconcile net income to net
  cash flows from operating activities:
   Depreciation and amortization                8,443    7,440
   Changes in assets and liabilities:
    Accounts receivable                       (4,301)   (3,789)
    Prepaid expenses and other assets           2,020     1,897
    Accounts payable and accrued liabilities    1,933    (1,152)
                                            _________  _________
Net cash flows from operating activities       16,858    22,381
                                            _________ _________
Cash flows from investing activities:
Capital expenditures                          (27,629)   (3,610)
Decrease in restricted cash                    22,325       ---
                                            _________ _________
Net cash flows from investing activities       (5,304)   (3,610)

Cash flows from financing activities:
Increase (decrease) in due to affiliates       (3,516)     954
 Repayments of senior secured project note     (8,038) (19,725)
                                            __________ _________
Net cash flows from financing activities      (11,554) (18,771)
                                            _________ _________
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 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  combined  financial
statements  contain all adjustments (consisting  only  of  normal
recurring  accruals)  necessary to present fairly  the  financial
position  as  of June 30, 1999 and the results of operations  for
the  three and six months ended June 30, 1999 and 1998  and  cash
flows  for  the  six months ended June 30, 1999  and  1998.   The
results of operations for the three and six months ended June 30,
1999 and 1998 are not necessarily indicative of the results to be
expected for the full year.

The  unaudited  combined financial statements shall  be  read  in
conjunction with the financial statements included in the Funding
Corporation's  annual  report on Form 10-K  for  the  year  ended
December 31, 1998.

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

2. Disposition of power generation assets:

On  February  8, 1999, MidAmerican Energy Holdings  Company,  the
successor  to CalEnergy Company, Inc. ("MidAmerican")  created  a
new   subsidiary,   CE  Generation  LLC  ("CE  Generation")   and
subsequently  transferred its interest in  the  power  generation
assets  in  the Imperial Valley to CE Generation.   On  March  3,
1999,  MidAmerican  closed  the sale  of  50%  of  its  ownership
interests  in  CE Generation to an affiliate of  El  Paso  Energy
Corporation.


<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 June 30,  1999,  and  the  related
combined  statements of operations for the three  and  six  month
periods  ended June 30 1999 and 1998 and cash flows for  the  six
month  periods  ended  June 30, 1999 and 1998.   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, 1998, 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  28,  1999, (March 3, 1999  as  to  Note  10),  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,  1998  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
July 26, 1999
<PAGE>
                     PARTNERSHIP GUARANTORS

                    COMBINED BALANCE SHEETS
                     (Dollars in Thousands)

                                                     June 30,    December 31,
                                                       1999           1998
                                                    (unaudited)
ASSETS
Restricted cash                                      $ 128,352      $ 164,983
Accounts receivable                                     24,710         33,404
Prepaid expenses and other assets                       23,516         23,088
Due from affiliates                                    119,803        121,130
Property, plant, contracts and equipment, net          446,636        399,817
Management fee                                          71,041         71,596
Excess of cost over fair value of net assets
  acquired, net                                        129,776        131,558
                                                      _________      _________
                                                     $ 943,834      $ 945,576
                                                     =========      =========


LIABILITIES AND GUARANTORS' EQUITY
Liabilities:
Accounts payable                                    $    3,686      $   1,879
Accrued liabilities                                     55,687         53,647
Senior secured project notes                           277,394        293,576
Deferred income taxes                                  101,772         97,641
                                                     _________      _________
Total liabilities                                      438,539        446,743

Commitments and Contingencies (Note 3)

Guarantors' equity:
Common stock                                                3              3
Additional paid-in capital                            387,663        387,663
Retained earnings                                     117,629        111,167
                                                    _________      _________
Total Guarantors' equity                              505,295        498,833
                                                    _________      _________
                                                    $ 943,834      $ 945,576
                                                    =========      =========



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   Six Months Ended
                                              June 30,            June 30,
                                          1999      1998      1999      1998
                                       _________ _________ _________ _________
Revenues:

Sales of electricity                   $ 24,222  $ 39,574  $ 46,252  $ 73,671
Interest and other income                 2,155     1,298     4,474     2,032
                                        _________ _________ _________ _________
Total revenues                           26,377    40,872    50,726    75,703
                                        _________ _________ _________ _________
Expenses:

Operating, general and administration    11,858    15,694    23,065    29,784
Depreciation and amortization             6,262    14,011    12,480    24,166
Interest expense                          5,641     2,456    11,335     5,753
Less capitalized interest                (4,314)   (2,425)   (6,747)   (4,887)
                                        _________ _________ _________ _________

Total expenses                           19,447    29,736    40,133    54,816
                                        _________ _________ _________ _________
Income before income taxes                6,930    11,136    10,593    20,887
Provision for income taxes                3,014     4,357     4,131     8,158
                                        _________ _________ _________ _________

Net income                            $   3,916 $   6,779 $   6,462 $  12,729
                                        ========= ========= ========= =========



The accompanying notes are an integral part of these financial  statements.
<PAGE>
                    PARTNERSHIP GUARANTORS
               COMBINED STATEMENTS OF CASH FLOWS
                     (Dollars in Thousands)
                          (Unaudited)

                                              Six Months Ended
                                                  June 30,
                                                1999       1998
                                             _________ _________
Cash flows from operating activities:
Net income                                  $   6,462 $  12,729
Adjustments to reconcile net income to net
  cash flows from operating activities:
   Depreciation and amortization               12,480    24,166
   Deferred income taxes                        4,131     8,158
   Changes in assets and liabilities:
     Accounts receivable                        8,694   (10,280)
     Prepaid expenses and other assets           (428)   (3,197)
     Accounts payable and accrued
      liabilities                               3,847    (1,348)
                                            _________ _________
Net cash flows from operating activities       35,186    30,228
                                            _________ _________
Cash flows from investing activities:
Capital expenditures                          (56,111)  (19,671)
Decrease in restricted cash                    36,631       ---
Management fee                                   (851)   (1,479)
                                            _________ _________
Net cash flows from investing activities      (20,331)  (21,150)
                                            _________ _________
Cash flows from financing activities:
Repayments of senior secured project notes    (16,182)  (25,881)
Decrease in due from affiliates                 1,327    16,803
                                            _________ _________
Net cash flows from financing activities      (14,855)   (9,078)
                                            _________ _________
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>
                     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 June 30, 1999 and the results of operations  for
the  three and six months ended June 30, 1999 and 1998  and  cash
flows  for  the  six  months ended June 30, 1999  and  1998.  The
results of operations for the three and six months ended June 30,
1999 and 1998 are not necessarily indicative of the results to be
expected for the full year.

The  unaudited  combined financial statements shall  be  read  in
conjunction with the financial statements included in the Funding
Corporation's  annual  report on Form 10-K  for  the  year  ended
December 31, 1998.

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

2.  Disposition of power generation assets:

On  February  8, 1999, MidAmerican Energy Holdings  Company,  the
successor  to CalEnergy Company, Inc. ("MidAmerican")  created  a
new   subsidiary,   CE  Generation  LLC  ("CE  Generation")   and
subsequently  transferred its interest in  the  power  generation
assets  in  the Imperial Valley to CE Generation.   On  March  3,
1999,  MidAmerican  closed  the sale  of  50%  of  its  ownership
interests  in  CE Generation to an affiliate of  El  Paso  Energy
Corporation.

3. Contingencies:

On  February 26, 1998, Del Ranch and Elmore initiated  an  action
against Edison in Imperial County Superior Court for payment  for
energy  delivered  to  Edison pursuant to long  term  power  sale
agreements at the escalated rate of 14.6 cents for 1998.  For the
Elmore  and  Del  Ranch partnerships, Edison  has  asserted  that
prices  should  not be escalated for 1998 and made  payments  for
energy deliveries at 13.6 cents per kWh in 1998.  That action  is
in  the  early  discovery stages and the  Del  Ranch  and  Elmore
partnerships intend to vigorously prosecute all available claims.


<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 June 30, 1999, and the related  statements
of  operations for the three and six month periods ended June 30,
1999 and 1998 and cash flows for the six month periods ended June
30,   1999  and  1998.   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, 1998, and the related statements  of
operations, equity, and cash flows for the year then  ended  (not
presented  herein);  and in our report dated  January  28,  1999,
(March 3, 1999 as to Note 5), 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,
1998  is fairly stated, in all material respects, in relation  to
the balance sheet from which it has been derived.



DELOITTE & TOUCHE LLP
Omaha, Nebraska
July 26, 1999
<PAGE>
                   SALTON SEA ROYALTY COMPANY

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

                                         June 30,    December 31,
                                          1999           1998
                                      ___________     ___________
                                      (unaudited)
ASSETS
Due from affiliates                    $   51,182    $   50,928
Royalty stream, net                        18,489        22,932
Excess of cost over fair value of net assets
  acquired, net                            32,734        33,188
Prepaid expenses and other assets             374           513
                                       __________    __________
                                       $  102,779    $  107,561
                                       ==========    ==========


LIABILITIES AND EQUITY
Liabilities:
Accrued liabilities                    $   35,668     $  39,584
Senior secured project note                18,512        23,210
Deferred income taxes                       5,014         6,769
                                       __________    __________
  Total liabilities                        59,194        69,563

Equity:
Common stock, par value $.01 per share; 100
  share authorized, issued and outstanding      -             -
Additional paid-in capital                  1,561         1,561
Retained earnings                          42,024        36,437
                                       __________    __________
Total equity                               43,585        37,998
                                       __________    __________
                                       $  102,779    $  107,561
                                       ==========    ==========

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    Six Months Ended
                                              June 30,             June 30,
                                        ___________________   _________________

                                         1999        1998      1999       1998
                                       _______     _______    _______    _______
Revenues:
Royalty income                         $ 3,770     $12,642    $17,229  $24,680

Expenses:
Operating, general and
  administrative expenses                1,046       2,032      2,154    3,891
Amortization of royalty stream
   and goodwill                          2,448       2,448      4,897    4,897
Interest  expense                          446         739        914    1,515
                                       ________    ________   ________ ________
Total expenses                           3,940       5,219      7,965   10,303
                                       ________    ________   ________ ________

Income  (loss) before income taxes        (170)      7,423      9,264   14,377
Provision for (benefit from) income taxes (113)      2,791      3,677    5,416
                                       ________    ________   ________ ________

Net income (loss)                      $   (57)    $ 4,632    $ 5,587  $ 8,961
                                       ========    ========   ======== ========

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

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

                                                            Six Months Ended
                                                                 June 30,
                                                           _______  _______
                                                             1999    1998
                                                           _______  _______
Cash flows from operating activities:
Net income                                              $   5,587 $   8,961
Adjustments to reconcile net income to net
  cash flows from operating activities:
   Amortization of royalty stream and goodwill              4,897     4,897
   Changes in assets and liabilities:
   Prepaid expenses and other assets                          139       234
   Accrued liabilities and deferred income taxes           (5,671)   11,047

Net cash flows from operating activities                    4,952    25,139

Net cash flows from financing activities:
Increase in due from affiliates                              (254)  (17,276)
Repayment of senior secured project note                   (4,698)   (7,863)
                                                         _________ _________
Net cash flows from financing activities                   (4,952)  (25,139)

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  June 30, 1999 and the results of operations for the three and
six  months ended June 30, 1999 and 1998 and cash flows  for  the
six  months  ended  June  30,  1999  and  1998.  The  results  of
operations for the three and six months ended June 30,  1999  and
1998 are not necessarily indicative of the results to be expected
for the full year.

The  unaudited financial statements shall be read in  conjunction
with   the   financial  statements  included   in   the   Funding
Corporation's  annual  report on Form 10-K  for  the  year  ended
December 31, 1998.

2.  Disposition of power generation assets:

On  February  8, 1999, MidAmerican Energy Holdings  Company,  the
successor  to CalEnergy Company, Inc. ("MidAmerican")  created  a
new   subsidiary,   CE  Generation  LLC  ("CE  Generation")   and
subsequently  transferred its interest in  the  power  generation
assets  in  the Imperial Valley to CE Generation.   On  March  3,
1999,  MidAmerican  closed  the sale  of  50%  of  its  ownership
interests  in  CE Generation to an affiliate of  El  Paso  Energy
Corporation.
<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 bonus 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 plants
operations 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,  December 1998 for the Hoch (Del Ranch)  and  Elmore
Partnerships,  and extend until December 1999  for  the  Leathers
Partnership.

For  1999, Vulcan, Hoch and Elmore are receiving Edison's Avoided
Cost of Energy pursuant to their respective SO4 Agreements.   The
SO4  Agreement  for Leathers provides for energy  rates  of  15.6
cents per kWh in 1999.
<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 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 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 5.4 cents per kWh during the six months  ended
June  30, 1999.  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 that  provide
for   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  expired  on
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 six months ended June 30, 1999, Edison's average Avoided
Cost of Energy was 2.7 cents per kWh which is substantially below
the  contract energy prices earned for the six months ended  June
30,  1999.  Estimates of Edison's future Avoided Cost  of  Energy
vary       substantially      from      year       to       year.
<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  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
such  Agreements  will  likely 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          Six Months Ended
                                          June 30,                   June 30,
                                   _____________________      __________________
                                    1999           1998        1999       1998
                                  ________      ________      ______     _______
Overall capacity factor             93.3%         98.0%        88.6%      90.2%
Capacity (NMW) (average)            119.4         119.4        119.4     119.4
kWh produced (in thousands)       243,300       258,000      459,300   467,900

The overall capacity factor for the Salton Sea Projects decreased
marginally for the six months ended June 30, 1999 compared to the
same period in 1998 due to reduced production at Region I.

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

                                      Three Months Ended      Six Months Ended
                                            June 30,                June 30,
                                     ____________________     _________________

                                      1999         1998       1999        1998
                                    ________    _________   ________    _______
Overall capacity factor               94.6%       93.5%       100.7%     95.9%
Capacity (NMW) (average)                148         148          148       148
kWh produced (in thousands)         305,900     302,100      647,400   616,600

The   overall  capacity  factor  for  the  Partnership   Projects
increased for the six months ended June 30, 1999 compared to  the
same  period  in 1998 due to scheduled overhauls at Leathers  and
Elmore in 1998.

<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)

Revenues:

The  Salton  Sea  Guarantors' sales of electricity  decreased  to
$19,546 for the three months ended June 30, 1999 from $27,612 for
the  same  period in 1998, a 29.2% decrease.  For the six  months
ended  June 30, 1999, revenues decreased to $37,818 from  $47,797
in 1998, a 20.9% decrease.  These decreases were primarily due to
the  expiration of the fixed price period at Salton Sea Unit  III
in February, 1999.

The  Partnership  Guarantors' sales of electricity  decreased  to
$24,222 for the three months ended June 30, 1999 from $39,574 for
the  same  period in 1998, a 38.8% decrease.  For the  six  month
period  ended  June 30, 1999, sales of electricity  decreased  to
$46,252  from $73,671 in 1998, a 37.2% decrease.  These decreases
were  due  to  the  expiration of the scheduled price  period  at
Elmore and Del Ranch at December 31, 1998.

The  Royalty Guarantor revenue decreased to $3,770 for the  three
months ended June 30, 1999 from $12,642 for the same period  last
year.   For  the  six month period ended June 30,  1999,  revenue
decreased to $17,229 from $24,680 in 1998.  This decrease was due
primarily to a decrease in East Mesa royalty income related to  a
royalty  settlement and a reduction in royalty  income  from  Del
Ranch and Elmore due to lower revenue.

Operating Expenses:

The  Salton  Sea  Guarantors' operating expenses,  which  include
royalty,  operating,  and  general and  administrative  expenses,
decreased  to  $6,227, for the three months ended June  30,  1999
from  $7,800  for  the same period in 1998.  For  the  six  month
period  ended  June  30,  1999, operating expenses  decreased  to
$13,535 from $14,547 in 1998.  These decreases were primarily due
to lower royalty costs resulting from lower revenues.

The  Partnership  Guarantors' operating expenses,  which  include
royalty,  operating,  and  general and  administrative  expenses,
decreased  to  $11,858 for the three months ended June  30,  1999
from  $15,694  for  the same period in 1998. For  the  six  month
period  ended  June  30,  1999, operating expenses  decreased  to
$23,065  from $29,784 in 1998, a 22.6% decrease.  These decreases
were primarily due to a reduction in royalty expenses due to  the
lower revenues.

The  Royalty Guarantors' operating expenses decreased  to  $1,046
for the three months ended June 30, 1999 from $2,032 for the same
period in 1998, a 48.5% decrease. For the six month period  ended
June 30, 1999, operating expenses decreased to $2,154 from $3,891
in  1998,  a 44.6% decrease.  These decreases were due  to  lower
royalty costs due to the end of the scheduled price period at Del
Ranch and Elmore.

Depreciation and Amortization:

The   Salton   Sea  Guarantors'  depreciation  and   amortization
increased to $4,421 for the three months ended June 30, 1999 from
$3,726  for the same period of 1998, an 18.7% increase.  For  the
six   month   period  ended  June  30,  1999,  depreciation   and
amortization  increased  to $8,443  from  $7,440  in  1998.   The
increase was due to an increase in step up depreciation charges.
<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 $6,262 for the three months ended June 30, 1999 from
$14,011  for  the same period in 1998.  For the six month  period
ended  June 30, 1999, depreciation and amortization decreased  to
$12,480 from $24,166 in 1998.  The decrease was due primarily  to
lower  step  up depreciation amortization after the  end  of  the
scheduled price period at Del Ranch and Elmore.

The  Royalty  Guarantors' amortization was $2,448 for  the  three
months ended June 30, 1999 compared to $2,448 for the same period
of  1998.    For  the  six  month period  ended  June  30,  1999,
amortization was $4,897 compared to $4,897 in 1998.

Interest Expense:

The  Salton  Sea Guarantors' interest expense, net of capitalized
amounts, increased to $4,148 for the three months ended June  30,
1999  from  $3,919 for the same period in 1998, a 5.8%  increase.
For  the  six month period ended June 30, 1999, interest expense,
net  of  capitalized amounts, increased to $8,520 from $7,847  in
1998.  The increases were primarily due to increased indebtedness
from the issuance of the Series F notes in October 1998.

The  Partnership Guarantors' interest expense, net of capitalized
amounts, increased to $1,327 for the three months ended June  30,
1999  from  $31 for the same period in 1998.  For the  six  month
period  ended June 30, 1999, interest expense, net of capitalized
amounts,  increased  to  $4,588 from $866.   The  increases  were
primarily due to increased indebtedness from the issuance of  the
Series F notes in October 1998.

The  Royalty Guarantors' interest expense decreased to  $446  for
the  three  months ended June 30, 1999 from $739  from  the  same
period  in  1998. For the six month period ended June  30,  1999,
interest  expense  decreased to $914 from  $1,515  in  1998.  The
decrease was due to 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.

The  Partnership  Guarantors income tax  provision  decreased  to
$2,297  for the three months ended June 30, 1999 from $4,357  for
the  same  period in 1998, a 47.3% decrease.  For the  six  month
period  ended  June  30,  1999, the provision  for  income  taxes
decreased  to  $3,414  from $8,158 in 1998.   This  decrease  was
primarily  due  to a lower pre-tax income. 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.
<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 Royalty Guarantor's income tax benefit was $113 for the three
months ended June 30, 1999 compared to an income tax provision of
$2,791  for  the same period in 1998.  For the six  month  period
ended  June  30, 1999, income tax provision decreased  to  $3,677
from $5,416 in 1998.  These decreases were primarily due to lower
pre-tax income.  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 June 30, 1999 decreased to $161 compared to $414 for
the same period in 1998.  For the six month period ended June 30,
1999,  net income decreased to $333 from $799 in 1998.   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 decreased to $5,401 for the
three months ended June 30, 1999 compared to $12,174 for the same
period  of  1998.  For the six month period ended June 30,  1999,
net income decreased to $8,763 compared to $17,985 in 1998.

The  Partnership Guarantors' net income decreased to  $4,633  for
the  three months ended June 30, 1999 compared to $6,779 for  the
same  period of 1998.   For the six month period ended  June  30,
1999, net income decreased to $7,179 from $12,729 in 1998.

The  Royalty  Guarantors' net loss was $57 for the  three  months
ended June 30, 1999 compared to net income of $4,632 for the same
period  of  1998.  For the six month period ended June 30,  1999,
net income decreased to $5,587 from $8,961 in 1998.

Liquidity and Capital Resources:

CalEnergy Minerals LLC, a Partnership Guarantor ("Minerals LLC"),
developed  and owns the rights to proprietary processes  for  the
extraction  of  zinc from elements in solution in the  geothermal
brine  and  fluids  utilized at its Imperial Valley  plants  (the
"Zinc Recovery Project") as well as the production of power to be
used  in  the extraction process.  A pilot plant has successfully
produced commercial quality zinc at the Company's Imperial Valley
Project.

Minerals LLC is constructing the Zinc Recovery Project which will
recover  zinc  from  the  geothermal brine  (the  "Zinc  Recovery
Project").   Four facilities will be installed near the  Imperial
Valley Project sites to extract a zinc chloride solution from the
brine  through  an ion exchange process.  This solution  will  be
transported to a central processing plant where zinc ingots  will
be   produced  through  solvent  extraction,  electrowinning  and
casting processes.  The Zinc Recovery Project is designed to have
a  capacity of approximately 30,000 metric tonnes per year and is
scheduled to commence commercial operation in mid-2000.

The zinc produced by the Zinc Recovery Project is expected to  be
sold  primarily  to  U.S.  West Coast  customers  such  as  steel
companies, alloyers and galvanizers.
<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: (continued)

The  Zinc Recovery Project is being constructed by Kvaerner  U.S.
Inc.  ("Kvaerner")  pursuant  to  a  date  certain,  fixed-price,
turnkey  engineering, procurement and construction contract  (the
"Zinc  Recovery Project EPC Contract").  Kvaerner  is  a  wholly-
owned  indirect  subsidiary of Kvaerner ASA,  an  internationally
recognized engineering and construction firm experienced  in  the
metals, mining and processing industries. Total project costs  of
the  Zinc  Recovery  Project  are expected  to  be  approximately
$200,900.   Minerals  LLC has incurred approximately  $43,200  of
such costs through June 30, 1999.

Salton  Sea  Power LLC, a Salton Sea Guarantor,  is  constructing
Salton Sea V.  Salton Sea V will be a 49 net MW geothermal  power
plant  which will sell approximately one-third of its net  output
to  the Zinc Recovery Project. The remainder will be sold through
the California Power Exchange ("PX").

Salton  Sea  V  is being constructed pursuant to a date  certain,
fixed  price,  turn-key engineering, procurement and construction
contract  (the  "Salton Sea V EPC Contract") by Stone  &  Webster
Engineering  Corporation ("SWEC").  SWEC is one  of  the  world's
leading  engineering and construction firms for the  construction
of  electric  power plants and, in particular,  geothermal  power
plants.   Salton  Sea  V  is  scheduled  to  commence  commercial
operation in mid-2000.  Total project costs of Salton Sea  V  are
expected to be approximately $119,100.  Salton Sea Power LLC  has
incurred  approximately $32,400 of such costs  through  June  30,
1999.

CE  Turbo  LLC, a Partnership Guarantor, is constructing  the  CE
Turbo  Project.  The CE Turbo Project will have a capacity of  10
net  MW.  The net output of the CE Turbo Project will be sold  to
the Zinc Recovery Project or sold through the PX.

The  Partnership  Projects  are upgrading  the  geothermal  brine
processing  facilities at the Vulcan and Del Ranch Projects  with
the  Region  2  Brine Facilities Construction.   In  addition  to
incorporating  the  pH modification process,  which  has  reduced
operating  costs  at  the  Salton Sea  Projects,  the  new,  more
efficient  facilities  will  achieve economies  through  improved
brine  processing  systems  and the utilization  of  more  modern
equipment.   The  Partnership Projects expect these  improvements
will  reduce brine-handling operating costs at the Vulcan Project
and the Del Ranch Project.

The   CE   Turbo  Project  and  the  Region  2  Brine  Facilities
Construction  are being constructed by SWEC pursuant  to  a  date
certain,  fixed  price,  turnkey  engineering,  procurement   and
construction contract (the "Region 2 Upgrade EPC Contract").  The
obligations   of  SWEC  are  guaranteed  by  Stone   &   Webster,
Incorporated.   The  CE  Turbo Project is scheduled  to  commence
initial  operations in mid-2000 and the Region 2 Brine Facilities
Construction  is scheduled to be completed in early-2000.   Total
project  costs  for both the CE Turbo Project and  the  Region  2
Brine  Facilities  Construction are expected to be  approximately
$63,700.

Total  equity  funding  for  these projects  is  expected  to  be
approximately $122,500.
<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: (continued)

The  operating 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
operating  Partnership Guarantors' primary source of  revenue  is
payments  received pursuant to long term power  sales  agreements
with  Edison. The Royalty Guarantor's only source of  revenue  is
Royalties received pursuant to resource lease agreements with the
Partnership   Projects.   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.

What  is generally known as the year 2000 ("Y2K") computer  issue
arose  because  many  existing  computer  programs  and  embedded
systems  use  only  the  last two digits  to  refer  to  a  year.
Therefore,  those  computer programs do not properly  distinguish
between  a  year that begins with "20" instead of "19".   If  not
corrected,  many  computer  applications  could  fail  or  create
erroneous  results.  The failure to correct a material  Y2K  item
could  result  in  an interruption in, or a failure  of,  certain
normal   business   activities  or   operations   including   the
generation,  distribution,  and  supply  of  electricity.    Such
failures  could  materially and adversely  affect  the  Company's
results of operations, liquidity and financial condition.

The  Y2K issue creates uncertainty for the Company from potential
issues with its own computer systems and from third parties  with
whom  the Company deals on transactions worldwide.  The Company's
operations  utilize  systems  and  equipment  provided  by  other
organizations.  As a result, Y2K readiness of suppliers, vendors,
service   providers  or  customers  could  impact  the  Company's
operations.

The  Company  is  assessing  the readiness  of  such  constituent
entities  and  the impacts on those entities that rely  upon  the
Company's services.  The Company is unable to determine  at  this
time  whether  the consequences of Y2K failures of third  parties
will  have  a  material  impact  on  the  Company's  results   of
operations, liquidity or financial condition.

The Company has commenced, for all of its information systems,  a
Y2K  date  conversion  project  to  address  all  necessary  code
changes, testing and implementation in order to resolve  the  Y2K
issue.   The  Company  created a Y2K project  team  to  identify,
assess and correct all of its information technology (IT) and non-
IT  systems, as well as, identify and assess third party systems.
The  Company has identified and assessed substantially all of its
IT  and  non-IT  systems  and  is currently  in  the  process  of
repairing  or replacing those systems which it believes  are  not
year  2000  compliant.   Through June 30, 1999,  the  Company  is
approximately  100%  complete  in repairing  or  replacing  those
systems.
<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: (continued)

Total  Y2K  expenditures, for both repairing  or  replacing  non-
compliant systems, are expected to total approximately $100.  The
Company  has renovated or replaced several non-compliant  systems
to  gain  enhanced functionalities.  The cost of these  types  of
renovations  and replacements is not reported herein since  their
development  and  installation were not driven by  Y2K  concerns.
The  Company is not aware of any additional material costs needed
to  be  incurred  to  bring all of its systems  into  compliance;
however, there is no assurance that additional costs will not  be
incurred.

A  contingency plan identifying credible worst-case scenarios  is
being  developed.   The  contingency plan is  comprised  of  both
mitigation and recovery aspects.  Mitigation entails planning  to
reduce  the impact of unresolved year 2000 problems, and recovery
entails planning to restore services in the event that year  2000
problems occur.  It is expected that the contingency plan will be
complete by mid-year 1999.

Although  management  believes  that  the  Y2K  project  will  be
substantially  complete before January 1,  2000,  any  unforeseen
failures of the Company's and/or third parties' computer  systems
could  have a material impact on the Company's ability to conduct
its business.

Certain  information  included in this report  contains  forward-
looking  statements  made  pursuant  to  the  Private  Securities
Litigation  Reform Act of 1995 ("Reform Act").   Such  statements
are  based on current expectations and involve a number of  known
and  unknown risks and uncertainties that could cause the  actual
results and performance of the Company to differ materially  from
any expected future results or performance, expressed or implied,
by  the forward-looking statements.  In connection with the  safe
harbor  provisions of the Reform Act, the Company has  identified
important  factors  that  could cause actual  results  to  differ
materially   from   such   expectations,  including   development
uncertainty,   operating  uncertainty,  acquisition  uncertainty,
uncertainties  relating to doing business outside of  the  United
States,   uncertainties   relating   to   geothermal   resources,
uncertainties relating to domestic and international economic and
political  conditions and uncertainties regarding the  impact  of
regulations,  changes in government policy, industry deregulation
and  competition.  Reference is made to all of the Company's  SEC
filings,  incorporated herein by reference, for a description  of
such  factors.  The Company assumes no responsibility  to  update
forward-looking information contained herein.
<PAGE>


                 SALTON SEA FUNDING CORPORATION

                  PART II - OTHER INFORMATION


Item 1 -  Legal proceedings.

    Neither   the   Salton  Sea  Funding  Corporation   nor   the
    Guarantors  are parties to any material legal matters  except
    those  described in Footnote 3 of the Partnership  Guarantors
    financial statements.

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:  August 12, 1999        /s/  Patrick J. Goodman

                                 Patrick J. Goodman
                                 Senior Vice President and
                                 Chief Financial Officer
<PAGE>





                          EXHIBIT INDEX

Exhibit                                                      Page
  No.                                                         No.
_______                                                     ______

  27     Financial Data Schedule                              36