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, 1998
          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, 1998.
<PAGE>
                 SALTON SEA FUNDING CORPORATION

                           Form 10-Q

                         March 31, 1998
                         _____________

                        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, March 31, 1998 and December 31, 1997          5

Statements of Operations for the Three Months Ended
March 31, 1998 and 1997                                       6

Statements of Cash Flows for the Three Months Ended
March 31, 1998 and 1997                                       7

Notes to Financial Statements                                 8

SALTON SEA GUARANTORS

Independent Accountants' Report                               9

Combined Balance Sheets, March 31, 1998 and December 31, 199710

Combined Statements of Operations for the Three Months Ended
March 31, 1998 and 1997                                      11

Combined Statements of Cash Flows for the Three Months Ended
March 31, 1998 and 1997                                      12

Notes to Combined Financial Statements                       13
<PAGE>
PARTNERSHIP GUARANTORS

Independent Accountants' Report                              15

Combined Balance Sheets, March 31, 1998 and December 31, 199716

Combined Statements of Operations for the Three Months Ended
March 31, 1998 and 1997                                      17

Combined Statements of Cash Flows for the Three Months Ended
March 31, 1998 and 1997                                      18

Notes to Combined Financial Statements                       19

SALTON SEA ROYALTY COMPANY

Independent Accountants' Report                              21

Balance Sheets, March 31, 1998 and December 31, 1997         22

Statements of Operations for the Three Months Ended
March 31, 1998 and 1997                                      23

Statements of Cash Flows for the Three Months Ended
March 31, 1998 and 1997                                      24

Notes to Financial Statements                                25

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


                  PART II:  OTHER INFORMATION

Item 1.  Legal Proceedings                                   32
Item 2.  Changes in Securities                               32
Item 3.  Defaults on Senior Securities                       32
Item 4.  Submission of Matters to a Vote of
         Security Holders                                    32
Item 5.  Other Information                                   32
Item 6.  Exhibits and Reports on Form 8-K                    32

Signatures                                                   33

Exhibit Index                                                34


<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  March 31,  1998,  and  the  related
statements  of  operations and cash flows  for  the  three  month
periods   ended  March  31,  1998  and  1997.   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, 1997, and the related  statements
of  operations, stockholders' equity, and cash flows for the year
then  ended  (not  presented herein); and  in  our  report  dated
February  12, 1998, 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,  1997  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 22, 1998
<PAGE>

                SALTON SEA FUNDING CORPORATION

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


                                      March 31,      December 31,
                                         1998            1997
                                     ___________      __________
                                     (unaudited)
ASSETS
Cash                                $     70,155      $  15,568
Prepaid expenses and other assets         11,406          2,823
Secured project notes from Guarantors    448,754        448,754
Investment in 1% of net assets of
  Guarantors                               7,305          7,144
                                      __________     __________
                                       $ 537,620      $ 474,289
                                      ==========     ==========

LIABILITIES AND STOCKHOLDER'S EQUITY
Liabilities:
Accrued liabilities                   $   11,080      $   2,782
Due to affiliates                         67,246         12,598
Senior secured notes and bonds           448,754        448,754
                                      __________     __________
  Total liabilities                      527,080        464,134

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                          5,174          4,789
                                      __________     __________
  Total stockholder's equity              10,540         10,155
                                      __________     __________
                                       $ 537,620      $ 474,289
                                      ==========     ==========

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
                                                   March 31,
                                                1998       1997
Revenues:

Interest income                              $  8,990 $  10,405
Equity in earnings of Guarantors                  161       143
                                             ________  ________
Total revenues                                  9,151    10,548
                                             ________  ________

Expenses:

General  and administrative expenses              238       240
Interest expense                                8,259     9,774
                                             ________  ________
Total expenses                                  8,497    10,014
                                             ________  ________
Income before income taxes                        654       534
Provision for income taxes                        269       220
                                             ________  ________
Net income                                   $    385 $     314
                                             ======== =========

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

                                             Three Months ended
                                                   March 31,
                                               1998     1997

Cash flows from operating activities:
Net income                                 $    385  $    314
Adjustments to reconcile net income to net
  cash flow from operating activities:
Equity in earnings of Guarantors               (161)     (143)
Changes in assets and liabilities:
Prepaid expenses and other assets            (8,583)  (10,145)
Accrued liabilities                           8,298     9,774
                                          __________ _________
  Net cash flows from operating activities      (61)     (200)
                                          __________ _________
Cash flows from investing activities:
Decrease in restricted cash                      ---    1,633
                                          __________ _________
Cash flows from financing activities:
Increase in due to affiliates                 54,648   36,689
                                          __________ _________
Net change in cash                            54,587   38,122
Cash at the beginning of period               15,568   13,218
                                          __________ _________
Cash at the end of period                 $   70,155 $ 51,340
                                          ========== =========
Non-cash investing and financing activities:
  Adjustments resulting from capital transactions
     of Guarantors                        $      --- $    (14)
                                          ========== =========
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 March 31,  1998  and
the  results of operations for the three months ended  March  31,
1998 and 1997 and cash flows for the three months ended March 31,
1998  and  1997.  The results of operations for the three  months
ended  March 31, 1998 and 1997 are not necessarily indicative  of
the results to be expected for the full year.

The  unaudited financial statements should 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, 1997.

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



<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 March 31, 1998,  and  the  related
combined  statements of operations and cash flows for  the  three
month  periods  ended March 31, 1998 and 1997.   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, 1997, 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  February 12, 1998, 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,  1997  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 22, 1998
<PAGE>
                     SALTON SEA GUARANTORS

                    COMBINED BALANCE SHEETS
                     (Dollars in Thousands)


                                      March 31,      December 31,
                                        1998             1997
                                     (unaudited)
ASSETS
Accounts receivable                    $  12,623     $  15,823
Prepaid expenses and other assets         12,177        13,043
Property, plant, contracts and 
 equipment, net                          476,111       478,001
Excess of cost over fair value of 
 net assets acquired, net                 49,160        49,486
                                       _________      _________
                                       $ 550,071     $ 556,353
                                        ========       ========


LIABILITIES AND GUARANTORS' EQUITY
Liabilities:
Accounts payable                      $      578     $     390
Accrued liabilities                       12,690         7,826
Due to affiliates                         30,596        47,741
Senior secured project note              266,208       266,208
                                       _________      _________
  Total liabilities                      310,072       322,165

Total Guarantors' equity                 239,999       234,188
                                       _________      _________
                                       $ 550,071     $ 556,353
                                       =========      =========

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
                                                   March 31
                                            _____________________
                                               1998      1997
                                             ________  ________
Revenues:

Sales of electricity                         $ 20,185 $ 23,254
Interest and other income                          15        9
                                              _______   _______
  Total revenues                               20,200    23,263
                                              _______   _______
Expenses:

Operating, general and
   administrative expenses                      6,747     7,161
Depreciation and amortization                   3,714    3,642
Interest expense                                5,260     5,864
Less capitalized interest                     (1,332)   (1,225)
                                              _______   _______
  Total expenses                               14,389    15,442
                                              _______   _______
Net income                                   $  5,811   $ 7,821
                                              =======   =======

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

               COMBINED STATEMENTS OF CASH FLOWS
                     (Dollars in Thousands)
                          (Unaudited)
                                               Three Months Ended
                                                   March 31,
                                              ____________________
                                                1998      1997
Cash flows from operating activities:
Net income                                   $  5,811  $  7,821
Adjustments to reconcile net income to net
  cash flow from operating activities:
   Depreciation and amortization                3,714     3,642
   Changes in assets and liabilities:
    Accounts receivable                         3,200      (547)
    Prepaid expenses and other assets             866     1,694
    Accounts payable and accrued
     liabilities                                5,052     5,331
                                            _________  _________
Net cash flows from operating activities       18,643    17,941
                                            _________  _________
Cash flows from investing activities:
Capital expenditures                           (1,498)   (2,448)
                                            _________  _________
Cash flows from financing activities:
Decrease in due to affiliates                 (17,145)  (15,493)
                                            _________  _________
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 financial  statements
contain  all  adjustments (consisting only  of  normal  recurring
accruals)  necessary to present fairly the financial position  as
of  March  31, 1998 and the results of operations for  the  three
months ended March 31, 1998 and 1997 and cash flows for the three
months  ended March 31, 1998 and 1997. The results of  operations
for  the  three  months ended March 31, 1998  and  1997  are  not
necessarily indicative of the results to be expected for the full
year.

The  unaudited financial statements should be read in conjunction
with  the financial statements included in the Salton Sea Funding
Corporation's  annual  report of Form 10-K  for  the  year  ended
December 31, 1997.

The  combined  financial statements include the accounts  of  the
partnerships in which the Guarantors have a 100% interest.
<PAGE>
                     SALTON SEA GUARANTORS

             NOTES TO COMBINED FINANCIAL STATEMENTS
                         (in thousands)
                      ____________________


2. Property, Plant, Contracts and Equipment:

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

                                      March 31,     December 31,
                                        1998            1997
                                       ________       ________
                                     (unaudited)
Plant and equipment                  $ 330,471      $ 330,306
Power sale agreements                   64,609         64,609
Mineral extraction                      73,112         71,780
Exploration and development costs       43,628         43,627
                                       ________       ________
                                       511,820        510,322
Less accumulated depreciation
  and amortization                     (35,709)       (32,321)
                                       ________       ________
                                     $ 476,111      $ 478,001
                                       ========       ========




<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 March 31,  1998,  and  the  related
combined  statements of operations and cash flows for  the  three
month  periods  ended March 31, 1998 and 1997.   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, 1997, 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  February 12, 1998, 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,  1997  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 22, 1998
<PAGE>
                     PARTNERSHIP GUARANTORS

                    COMBINED BALANCE SHEETS
                     (Dollars in Thousands)


                                        March 31,    December 31,
                                          1998           1997
                                      (unaudited)
ASSETS
Accounts receivable                    $  23,461      $  23,481
Prepaid expenses and other assets         11,953         13,121
Due from affiliates                      136,457        124,311
Property, plant, contracts and 
 equipment, net                          372,730        370,666
Management fee from affiliates            70,134         70,082
Excess of cost over fair value of 
 net assets acquired, net                134,231        135,122
                                       _________      _________
                                       $ 748,966      $ 736,783
                                       =========      =========


LIABILITIES AND GUARANTORS' EQUITY
Liabilities:
Accounts payable                       $   2,910      $   1,338
Accrued liabilities                       24,145         23,285
Senior secured project notes             143,610        143,610
Deferred income taxes                    110,652        106,851
                                       _________      _________
Total liabilities                        281,317        275,084

Guarantors' equity:
Common stock                                   3              3
Additional paid-in capital               387,663        387,663
Retained earnings                         79,983         74,033
                                       _________      _________
Total Guarantors' equity                 467,649        461,699
                                       _________      _________
                                       $ 748,966      $ 736,783
                                       =========      =========

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
                                                  March 31
                                               1998       1997
Revenues:

Sales of electricity                         $ 34,097  $ 34,746
Interest and other income                         734       545
Total revenues                                 34,831    35,291
                                            _________  _________
Expenses:

Operating, general and
   administrative expenses                     14,090    16,282
Depreciation and amortization                  10,155     9,644
Interest expense                                3,297     3,651
Less capitalized interest                      (2,462)   (2,246)

Total expenses                                 25,080    27,331
                                            _________  _________

Income before income taxes                      9,751     7,960
Provision for income taxes                      3,801     3,103
                                            _________  _________

Net income                                   $  5,950  $  4,857
                                            =========  =========

The accompanying notes are an integral part of these financial  statements.
<PAGE>
                    PARTNERSHIP GUARANTORS
               COMBINED STATEMENTS OF CASH FLOWS
                     (Dollars in Thousands)
                          (Unaudited)
                                            Three Months Ended
                                                 March 31,
                                               1998      1997
Cash flows from operating activities:
Net income                                   $  5,950 $  4,857
Adjustments to reconcile net income to net
  cash flow from operating activities:
   Depreciation and amortization               10,155    9,644
   Deferred income taxes                        3,801    3,103
   Changes in assets and liabilities:
     Accounts receivable                           20      (34)
     Prepaid expenses and other assets          1,168    3,059
     Accounts payable and accrued
      liabilities                               2,432    4,034
Net cash flows from operating activities       23,526   24,663

Cash flows from investing activities:
Capital expenditures                          (10,675) (10,236)
Management fee                                   (705)    (506)
Net cash flows from investing activities      (11,380) (10,742)

Cash flows from financing activities:
Increase in due from affiliates               (12,146) (12,550)
Distributions to parent                           ---   (1,371)
Net cash flows from financing activities      (12,146) (13,921)
                                            _________  _________
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 March 31, 1998 and the results of operations  for
the three months ended March 31, 1998 and 1997 and cash flows for
the  three  months ended March 31, 1998 and 1997. The results  of
operations for the three months ended March 31, 1998 and 1997 are
not  necessarily indicative of the results to be expected for the
full year.

The  unaudited financial statements should be read in conjunction
with  the financial statements included in the Salton Sea Funding
Corporation's  annual  report on Form 10-K  for  the  year  ended
December 31, 1997.

The combined financial statements include the proportionate share
of  the accounts of the partnerships in which the Guarantors have
an interest.
<PAGE>
                     PARTNERSHIP GUARANTORS
             NOTES TO COMBINED FINANCIAL STATEMENTS
                         (in thousands)
                      ____________________

2. Property, Plant, Contracts and Equipment:

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

                                         March 31,    December 31,
                                           1998          1997
                                       (unaudited)
Plant and equipment                    $  77,153      $  73,830
Power sale agreements                    123,588        123,588
Process license                           46,290         46,290
Mineral reserves                         132,984        130,522
Exploration and development costs         80,868         75,978
                                      __________     __________
                                         460,883        450,208
Less accumulated depreciation
  and amortization                      (88,153)       (79,542)
                                      __________     __________
                                       $ 372,730      $ 370,666
                                      ==========     ==========





<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 March 31, 1998, and the related statements
of  operations  and cash flows for the three month periods  ended
March  31,  1998  and 1997.  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, 1997, and the related statements  of
operations, equity, and cash flows for the year then  ended  (not
presented herein); and in our report dated February 12, 1998,  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, 1997 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 22, 1998
<PAGE>
                   SALTON SEA ROYALTY COMPANY

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



                                        March 31,   December 31,
                                          1998          1997
                                      (unaudited)
ASSETS
Due from affiliates                     $  32,134    $   19,114
Royalty stream, net                        29,596        31,818
Excess of cost over fair value of net assets
  acquired, net                            33,869        34,096
Prepaid expenses and other assets             864           981
                                       __________    __________
                                        $  96,463     $  86,009
                                       ==========    ==========


LIABILITIES AND EQUITY
Liabilities:
Accrued liabilities                     $  28,308    $   21,306
Senior secured project note                38,934        38,934
Deferred income taxes                       6,391         7,268
                                       __________    __________
  Total liabilities                        73,633        67,508

Equity:
Common stock, par value $.01 per share; 100
  share authorized, issued and outstanding      -             -
Additional paid-in capital                  1,561         1,561
Retained earnings                          21,269        16,940
                                       __________    __________
Total equity                               22,830        18,501
                                       __________    __________
                                        $  96,463     $  86,009
                                       ==========    ==========

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
                                                                March 31
                                                            1998        1997
Revenues:
Royalty income                                              $ 12,038  $  7,861

Expenses:
Operating, general and administrative expenses                 1,859     1,877
Amortization  of royalty stream and goodwill                   2,449     2,449
Interest expense                                                 776     1,132
                                                            ____________________
Total expenses                                                 5,084     5,458
                                                            ____________________

Income before income taxes                                     6,954     2,403
Provision for income taxes                                     2,625       737
                                                            ____________________

Net income                                                   $ 4,329   $ 1,666
                                                            ====================

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

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


                                              Three Months Ended
                                                   March 31,
                                                1998      1997
Cash flows from operating activities:
Net income                                   $  4,329  $  1,666
Adjustments to reconcile net income to net
  cash flow from operating activities:
   Amortization of royalty stream and goodwill  2,449     2,449
   Changes in assets and liabilities:
   Prepaid expenses and other assets              117       177
   Accrued liabilities and deferred income 
    taxes                                       6,125     1,692
Net cash flows from operating activities       13,020     5,984

Net cash flows from financing activities:
Decrease (increase) in due from affiliates    (13,020)   (5,984)
                                             _________ _________
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  March  31, 1998 and the results of operations for  the  three
months ended March 31, 1998 and 1997 and cash flows for the three
months  ended March 31, 1998 and 1997.  The results of operations
for  the  three  months ended March 31, 1998  and  1997  are  not
necessarily indicative of the results to be expected for the full
year.

The  unaudited financial statements should be read in conjunction
with  the financial statements included in the Salton Sea Funding
Corporation's  annual  report on Form 10-K  for  the  year  ended
December 31, 1997.
<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
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 14.6 cents per kWh in 1998 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 energy payment is calculated using a  Base  Price
which  is  subject  to quarterly adjustments based  on  a  basket
<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)

of  indices.  The time period weighted average energy payment for
Salton Sea I was 5.4 cents per kWh during the three months  ended
March 31, 1998.  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 2000 for Salton Sea II and February 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
September 30, 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, 1998,  Edison's  average
Avoided   Cost  of  Energy  was  3.0  cents  per  kWh  which   is
substantially  below the contract energy prices  earned  for  the
three  months ended March 31, 1998.  Estimates of Edison's future
Avoided Cost of Energy vary substantially from year to year.  The
Company cannot predict the likely level of Avoided Cost of Energy
prices  under the SO4 Agreements and the modified SO4  Agreements
at the expiration of
<PAGE>
               THE SALTON SEA FUNDING CORPORATION
            MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS
              (in thousands, except per kwh data)
              ____________________________________

Results of Operations:  (continued)

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

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

                                              Three Months Ended
                                                   March 31,
                                                  1998     1997
Overall capacity factor                           81.4%    98.8%
Capacity (NMW)(weighted average)                  119.4    119.4
kWh produced (in thousands)                     209,900  254,800

The  overall capacity factor for the Salton Sea Project decreased
for  the  three months ended March 31, 1998 compared to the  same
period in 1997 due to scheduled overhauls in February 1998.

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

                                               Three Months Ended
                                                   March 31,
                                                  1998     1997
Overall capacity factor                          98.38%   101.8%
Capacity NMW (average)                              148      148
kWh produced (in thousands)                     314,500  325,300

The   overall  capacity  factor  for  the  Partnership   Projects
decreased  for the three months ended March 31, 1998 compared  to
the  same  period in 1997 due to scheduled overhauls at  Leathers
and Elmore.

Revenues:

The  Salton  Sea  Guarantors' sales of electricity  decreased  to
$20,185  for  the three months ended March 31, 1998 from  $23,254
for the same period of 1997, a 13.2% decrease.  This decrease was
primarily due to the timing of overhauls. The 1997 overhauls were
performed  in  the second quarter, while the 1998 overhauls  were
performed in the first quarter.

The  Partnership  Guarantors'  sales  of  electricity  marginally
decreased  to $34,097 for the three months ended March  31,  1998
from $34,746 for the same period in 1997.
<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 revenue increased to $12,038 for the three
months ended March 31, 1998 from $7,861 for the same period  last
year.   This  increase was due primarily to an increase  in  East
Mesa royalty  income related to the royalty settlement agreement.

Operating Expenses:

The  Salton  Sea  Guarantors' operating expenses,  which  include
royalty,  operating,  and  general and  administrative  expenses,
decreased  to  $6,747 for the three months ended March  31,  1998
from $7,161 for the same period in 1997. The decrease was due  to
a reduction in operating and maintenance costs.

The  Partnership  Guarantors' operating expenses,  which  include
royalty,  operating,  and  general and  administrative  expenses,
decreased  to $14,090 for the three months ended March  31,  1998
from  $16,282 for the same period in 1997, a 13.5% decrease.  The
decrease  was  due  to a reduction in operating  and  maintenance
costs.

The  Royalty Guarantors' operating expenses marginally  decreased
to  $1,859 for the three months ended March 31, 1998 from  $1,877
for the same period in 1997.

Depreciation and Amortization:

The   Salton   Sea  Guarantors'  depreciation  and   amortization
increased  to  $3,714 for the three months ended March  31,  1998
from $3,642 for the same period of 1997.

The   Partnership   Guarantors'  depreciation  and   amortization
increased  to $10,155 for the three months ended March  31,  1998
from  $9,644 for the same period in 1997.  The increase  was  due
primarily to plant improvements.

The  Royalty  Guarantors' amortization was $2,449 for  the  three
months  ended  March  31, 1998 compared to $2,449  for  the  same
period of 1997.

Interest Expense:

The  Salton  Sea Guarantors' interest expense, net of capitalized
amounts, decreased to $3,928 for the three months ended March 31,
1998  from  $4,639 for the same period in 1997, a 15.3% decrease.
The decrease was a result of reduced indebtedness.

The  Partnership Guarantors' interest expense, net of capitalized
amounts,  decreased to $835 for the three months ended March  31,
1998 from $1,405 for the same period in 1997.  The decrease was a
result of reduced indebtedness.
<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 Guarantors' interest expense decreased to  $776  for
the  three months ended March 31, 1998 from $1,132 for  the  same
period   in   1997.   The  decrease  was  a  result  of   reduced
indebtedness.

Income Tax Provision:

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

The  Partnership  Guarantors income tax  provision  increased  to
$3,801 for the three months ended March 31, 1998 from $3,103  for
the  same  period  in 1997, a 22.5% increase. This  increase  was
primarily  due  to  an  increase in income before  income  taxes.
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 increased to $2,625
for  the three months ended March 31, 1998 from $737 for the same
period in 1997. This increase was primarily due to an increase in
income  before  income  taxes. 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  March 31, 1998 was $385 compared to $314  for  the
same  period  in  1997.   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 $5,811 for the
three months ended March 31, 1998 compared to $7,821 for the same
period of 1997.

The  Partnership Guarantors' net income increased to  $5,950  for
the  three months ended March 31, 1998 compared to $4,857 for the
same period of 1997.

The  Royalty Guarantors' net income increased to $4,329  for  the
three months ended March 31, 1998 compared to $1,666 for the same
period of 1997.
<PAGE>
               THE SALTON SEA FUNDING CORPORATION
            MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS
              (in thousands, except per kwh data)
               _________________________________

Liquidity and Capital Resources:

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

                  PART II - OTHER INFORMATION


Item 1 -  Legal Proceedings.

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

Item 2 -  Changes in Securities.

    Not applicable.

Item 3 -  Default on Senior Securities.

    Not applicable.

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

    Not applicable.

Item 5 -  Other Information.

    Not applicable.

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

    (a)   Exhibits:

          Exhibit 27 - Financial Data Schedule

    (b)   Report on Form 8-K:

     Not applicable.
<PAGE>  
                         SIGNATURES


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


                              SALTON SEA FUNDING CORPORATION

Date:  May 14, 1998           /s/  Craig M. Hammett

                                 Craig M. Hammett
                                 Senior Vice President and
                                 Chief Financial Officer

                                
<PAGE>                                
                                
                          EXHIBIT INDEX

Exhibit                                                    Page
  No.                                                       No.

  27     Financial Data Schedule                            35