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, 1997
          Commission File No.        33-95538

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

                           47-0790493
               (IRS Employer Identification No.)

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

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

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

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

     Yes    X                     No

All  common stock of Salton Sea Funding Corporation is indirectly
held  by  Magma  Power Company. 100 shares of Common  Stock  were
outstanding on June 30, 1997.


                 SALTON SEA FUNDING CORPORATION

                           Form 10-Q

                         June 30, 1997
                         _____________

                        C O N T E N T S


                 PART I:  FINANCIAL INFORMATION


Item 1.  Financial Statements                              Page

SALTON SEA FUNDING CORPORATION

Independent Accountants' Report                               4

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

Statements of Operations for the Three and
 Six Months Ended June 30, 1997 and 1996                      6

Statement of Cash Flows for the
 Six Months Ended June 30, 1997 and 1996                      7

Notes to Financial Statements                                 8

SALTON SEA GUARANTORS

Independent Accountants' Report                               9

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

Combined Statements of Operations for the Three
 and Six Months Ended June 30, 1997 and 1996                 11

Combined Statements of Cash Flows for the
 Six Months Ended June 30, 1997 and 1996                     12

Notes to Combined Financial Statements                       13
PARTNERSHIP GUARANTORS

Independent Accountants' Report                              15

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

Combined Statements of Operations for the Three
 and Six Months Ended June 30, 1997 and 1996                 17

Combined Statements of Cash Flows for the
 Six Months Ended June 30, 1997 and 1996                     18

Notes to Combined Financial Statements                       19

SALTON SEA ROYALTY COMPANY

Independent Accountants' Report                              21

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

Statements of Operations for the Three and
 Six Months Ended June 30, 1997 and 1996                     23

Statements of Cash Flows for the
 Six Months Ended June 30, 1997 and 1996                     24

Notes to Financial Statements                                25

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


                  PART II:  OTHER INFORMATION

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

Signatures                                                   34

Exhibit Index                                                35




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,  1997,  and  the  related
statements  of  operations for the three and  six  month  periods
ended  June  30, 1997 and 1996 and cash flows for the six  months
ended June 30, 1997 and 1996.  These financial statements are the
responsibility of the Company's management.

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

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

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


DELOITTE & TOUCHE LLP
Omaha, Nebraska
August 12, 1997



                SALTON SEA FUNDING CORPORATION

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



                                       June 30,     December 31,
                                         1997           1996
                                     ___________      __________
                                     (unaudited)
ASSETS
Cash                                   $     ---      $  13,218
Restricted cash and short-term
  investments                              6,271         14,044
Prepaid expenses and other assets          3,042          3,452
Secured project notes of Guarantors      493,868        538,982
Investment in 1% of net assets of
  Guarantors                               6,606          6,293
                                      __________     __________
                                       $ 509,787      $ 575,989
                                      ==========     ==========

LIABILITIES AND STOCKHOLDER'S EQUITY
Liabilities:
Accrued liabilities                    $   3,005      $   3,291
Due to affiliates                          3,577         25,022
Senior secured notes and bonds           493,868        538,982
                                      __________     __________
  Total liabilities                      500,450        567,295

Stockholder's equity:
Common stock--authorized 1,000
  shares, par value $.01 per share;
  issued and outstanding 100 shares          ---            ---
Additional paid-in capital                 5,366          5,366
Retained earnings                          3,971          3,328
                                      __________     __________
  Total stockholder's equity               9,337          8,694
                                      __________     __________
                                       $ 509,787      $ 575,989
                                      ==========     ==========

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



                SALTON SEA FUNDING CORPORATION
                   STATEMENTS OF OPERATIONS
                     (Dollars in Thousands)
                          (Unaudited)


                       Three Months Ended   Six Months Ended
                            June 30             June 30
                          1997       1996      1997      1996
Revenues:

Interest income         $  10,342 $   8,707 $  20,747 $  17,660
Equity in earnings of 
  Guarantors                  198       146       341       234
                        _________  ________  ________  ________
Total revenues             10,540     8,853    21,088    17,894
                        _________  ________  ________  ________

Expenses:

General and 
 administrative expenses     219        45       459        226
Interest expense            9,717     7,943    19,491    15,933
                        _________  ________  ________  ________
Total expenses              9,936     7,988    19,950    16,159
                        _________  ________  ________  ________
Income before income taxes    604       865     1,138     1,735
Provision for income taxes    248       355       467       712
                        _________  ________  ________  ________
Net income              $     356 $     510  $    671 $   1,023
                        ========= =========  ======== =========

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



                SALTON SEA FUNDING CORPORATION
                   STATEMENTS OF CASH FLOWS
                     (Dollars in Thousands)
                          (Unaudited)

                                                          Six Months ended
                                                           June 30, 1997
                                                         1997          1996

Cash flows from operating activities:
  Net income                                        $     671       $   1,023
  Adjustments to reconcile net income to net
     cash flow from operating activities:
  Equity in earnings of guarantors                       (341)           (234)
  Changes in assets and liabilities:
     Prepaid expenses and other assets                    410             419
     Accrued liabilities                                 (286)         (1,273)
                                                       __________     _________
  Net cash flows from operating activities                454             (65)
                                                       __________     _________
Cash flows from investing activities:
  Restricted cash                                       7,773          37,806
  Principal repayments of secured project notes
  of Guarantors                                        45,114             ---
                                                     __________       _________
  Net cash flows from investing activities             52,887          37,806
                                                     __________       _________
Cash flows from financing activities:
  Decrease in due to affiliates                       (21,445)        (13,094)
  Repayment of senior secured notes and bonds         (45,114)            ---
                                                     __________      _________
  Net cash flows from financing activities            (66,559)        (13,094)
                                                     __________      _________
  Net change in cash                                  (13,218)         24,647
  Cash at the beginning of period                      13,218           4,393
                                                     __________      _________
  Cash at the end of period                        $      ---       $  29,040
                                                     ==========      =========
Supplemental disclosures:
  Interest paid                                    $   19,777       $  16,158
                                                     ==========     ==========
Non-cash investing and financing activities:
  Adjustments resulting from capital transactions
     of Guarantors                                 $      (28)      $    556
                                                     ==========     =========

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


                 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, 1997 and the
results of operations for the three and six months ended June 30,
1997  and  1996 and cash flows for the six months ended June  30,
1997 and 1996.

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

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

2. Other Footnote Information:

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





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,  1997,  and  the  related
combined  statements of operations for the three  and  six  month
periods  ended June 30, 1997 and 1996 and cash flows for the  six
month  periods  ended  June 30, 1997 and 1996.   These  financial
statements  are the responsibility of the Salton Sea  Guarantors'
management.

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

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

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


DELOITTE & TOUCHE LLP
Omaha, Nebraska
August 12, 1997
                     SALTON SEA GUARANTORS

                    COMBINED BALANCE SHEETS
                     (Dollars in Thousands)


                                       June 30,    December 31,
                                         1997          1996
                                      __________      _________
                                     (unaudited)
ASSETS
Accounts receivable                    $  17,298     $  14,954
Prepaid expenses and other assets         13,543        16,008
Property, plant, contracts and 
 equipment, net                          480,965       484,182
Excess of cost over fair value of net 
  assets acquired, net                    50,138        50,790
                                       _________      _________
                                       $ 561,944     $ 565,934
                                        ========       ========


LIABILITIES AND GUARANTORS' EQUITY
Liabilities:
  Accounts payable                     $     267     $     642
  Accrued liabilities                      7,709         9,989
  Due to affiliates                       61,535        64,091
  Senior secured project note            283,024       299,840
                                       _________      _________
  Total liabilities                      352,535       374,562

Total Guarantors' equity                 209,409       191,372
                                       _________      _________
                                       $ 561,944     $ 565,934
                                       =========      =========

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


                     SALTON SEA GUARANTORS

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




                                  Three Months Ended       Six Months Ended
                                       June 30                  June 30
                                _____________________   _____________________
                                    1997        1996         1997      1996
                                  ________    ________   ________    ________
Revenues:

Sales of electricity             $ 25,169     $ 19,012   $ 48,423   $ 35,233
Interest and other income             152           60        161        128
                                  _______      _______    _______    _______
  Total revenues                   25,321       19,072     48,584     35,361
                                  _______      _______    _______    _______
Expenses:

Operating, general and
   administration                   6,844        5,937     14,005     11,726
Depreciation and amortization       3,647        3,204      7,289      5,886
Interest expense                    5,833        6,262     11,697     12,519
Less capitalized interest          (1,219)      (2,907)    (2,444)    (6,207)
                                   _______      _______    _______    _______
  Total expenses                   15,105       12,496     30,547     23,924
                                   _______      _______    _______    _______
Net income                       $ 10,216     $  6,576   $ 18,037   $ 11,437
                                   =======      =======    =======    =======

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


                     SALTON SEA GUARANTORS

               COMBINED STATEMENTS OF CASH FLOWS
                     (Dollars in Thousands)
                          (Unaudited)
                                                Six Months Ended
                                                    June 30,
                                              ____________________
                                               1997       1996
                                             _________ _________
Cash flows from operating activities:
Net income                                   $ 18,037  $ 11,437
Adjustments to reconcile net income to net
  cash flow from operating activities:
   Depreciation and amortization                7,289     5,886
   Changes in assets and liabilities:
    Accounts receivable                        (2,344)   (5,389)
    Prepaid expenses and other assets           2,465    (1,123)
    Accounts payable and accrued
     liabilities                               (2,655)    2,122
                                            _________ _________
Net cash flows from operating activities       22,792    12,933
                                            _________ _________
Cash flows from investing activities:
Capital expenditures                           (3,420)  (52,430)
                                            _________ _________
Net cash flows from investing activities       (3,420)  (52,430)
                                            _________ _________
Cash flows from financing activities:
 Increase (decrease) in due to affiliates      (2,556)   50,271
 Repayments of senior secured project note    (16,816)  (10,830)
                                            ___________________
Net cash flows from financing activities      (19,372)   39,441
                                            _________ _________
Net change in cash                                ---       (56)
Cash at beginning of period                       ---       454
                                            _________ _________
Cash at end of period                       $     ---$      398
                                            ========= =========
The accompanying notes are an integral part of these financial  statements.


                     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  June 30, 1997 and the results of operations for the three and
six  months ended June 30, 1997 and 1996 and cash flows  for  the
six months ended June 30, 1997 and 1996.

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

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

2. Other Footnote Information:

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

                     SALTON SEA GUARANTORS

             NOTES TO COMBINED FINANCIAL STATEMENTS
                         (in thousands)
                      ____________________


3. Property, Plant, Contracts and Equipment:

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

                                      June  30,     December 31,
                                        1997            1996
                                       ________       ________
Plant and equipment                  $ 328,873      $ 329,458
Power sale agreements                   64,609         64,609
Mineral extraction                      69,275         66,831
Exploration and development costs       43,427         42,220
                                       ________       ________
                                       506,184        503,118
Less accumulated depreciation
  and amortization                     (25,219)       (18,936)
                                       ________       ________
                                     $ 480,965      $ 484,182
                                       ========       ========






INDEPENDENT ACCOUNTANTS' REPORT

Board of Directors and Stockholder
Magma Power Company
Omaha, Nebraska

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

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

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

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


DELOITTE & TOUCHE LLP
Omaha, Nebraska
August 12, 1997
                     PARTNERSHIP GUARANTORS

                    COMBINED BALANCE SHEETS
                     (Dollars in Thousands)


                                     June  30,      December 31,
                                       1997             1996
                                    ____________    ___________
                                     (unaudited)
ASSETS
Accounts receivable                    $  28,008      $  22,766
Due from affiliates                      123,085        129,278
Prepaid expenses and other assets         16,265         19,083
Property, plant, contracts and 
 equipment, net                          367,418        364,849
Management fee                            68,278         67,521
Excess of cost over fair value of 
 net assets acquired, net                136,904        138,686
                                       _________      _________
                                       $ 739,958      $ 742,183
                                       =========      =========


LIABILITIES AND GUARANTORS' EQUITY
Liabilities:
Accounts payable                       $   1,236      $     663
Accrued liabilities                       21,420         22,977
Senior secured project notes             162,907        182,204
Deferred income taxes                    116,386        108,277
                                       _________      _________
Total liabilities                        301,949        314,121

Guarantors' equity:
Common stock                                   3              3
Additional paid-in capital               387,663        387,663
Retained earnings                         50,343         40,396
                                       _________      _________
Total Guarantors' equity                 438,009        428,062
                                       _________      _________
                                       $ 739,958      $ 742,183
                                       =========      =========

The accompanying notes are an integral part of these financial  s
tatements.
                    PARTNERSHIP GUARANTORS

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



                         Three Months Ended    Six Months Ended
                               June 30             June 30
                     _____________________   ______________________
                          1997      1996      1997      1996
                        _________ _________ _________ _________
Revenues:

Sales of electricity     $ 38,165 $ 36,996   $ 72,911  $ 52,155
Interest and other income   1,022    1,929      1,567    4,149
                        _________ _________ _________ _________
Total revenues             39,187   38,925     74,478   56,304
                        _________ _________ _________ _________
Expenses:

Operating, general and
   administration          15,366   16,798     31,648    24,410
Depreciation and 
   amortization             9,686    9,916     19,330    14,289
Interest expense            3,548    3,255      7,199     5,262
Less capitalized interest  (2,302)  (2,462)    (4,548)   (4,469)
                        _________ _________ _________ _________

Total expenses             26,298   27,507     53,629    39,492
                        _________ _________ _________ _________

Income before income taxes 12,889   11,418     20,849    16,812
Provision for income taxes  5,006    4,463      8,109     6,712
                        _________ _________ _________ _________

Net income               $  7,883 $  6,955   $ 12,740  $ 10,100
                        ========= ========= ========= =========

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



                    PARTNERSHIP GUARANTORS
               COMBINED STATEMENTS OF CASH FLOWS
                     (Dollars in Thousands)
                          (Unaudited)
                                             Six Months Ended
                                                  June 30,
                                          ______________________
                                              1997        1996
                                            _________  _________
Cash flows from operating activities:
Net income                                  $  12,740 $  10,100
Adjustments to reconcile net income to net
  cash flow from operating activities:
   Depreciation and amortization               19,330   14,289
   Deferred income taxes                        8,109      874
   Changes in assets and liabilities:
     Accounts receivable                       (5,242)     278
     Prepaid expenses and other assets          2,818   (2,340)
     Accounts payable and accrued
      liabilities                                (985)  (8,134)
                                            _________ _________
Net cash flows from operating activities       36,770   15,067
                                            _________ _________
Cash flows from investing activities:
Capital expenditures                          (19,383) (11,434)
Management fee                                 (1,490)  (1,501)
Restricted cash                                     -   23,085
                                            _________ _________
Net cash flows from investing activities      (20,873)  10,150
                                            _________ _________
Cash flows from financing activities:
Repayments of senior secured project rates    (19,297) (99,809)
Loan proceeds                                       -  135,000
Increase (decrease) in due from affiliates      6,193  (37,071)
Distributions to parent                        (2,793) (34,457)
                                            _________ _________
Net cash flows from financing activities      (15,897) (36,337)
                                            _________ _________
Net change in cash                                  -  (11,120)
Cash at beginning of period                         -   11,146
                                            _________ _________
Cash at end of period                       $       - $     26
                                            ========= =========

During  1996, CalEnergy Company, Inc. contributed $71,000 of  net
assets acquired from Edison Mission Energy, of which $12,956  was
cash, to the Partnership Guarantors.

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


                     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, 1997 and the results of operations  for
the  three and six months ended June 30, 1997 and 1996  and  cash
flows for the six months ended June 30, 1997 and 1996.

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

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

2. Other Footnote Information:

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

3. Property, Plant, Contracts and Equipment:

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

                                      June 30,      December 31,
                                        1997             1996
                                    ____________     ___________
Plant and equipment                    $  66,628     $   60,272
Power sale agreements                    123,588        123,588
Process license                           46,290         46,290
Mineral reserves                         125,747        121,199
Exploration and development costs         68,073         59,303
                                      __________     __________
                                         430,326        410,652
Less accumulated depreciation
  and amortization                       (62,908)       (45,803)
                                      __________     __________
                                       $ 367,418      $ 364,849
                                      ==========     ==========

4. Purchase of Edison Mission Energy's Partnership Interests

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

Unaudited  proforma  combined  revenue  and  net  income  of  the
Guarantors on a purchase, push down basis of accounting, for  the
six  months  ended  June  30, 1996, as  if  the  acquisition  had
occurred  at the beginning of the period after giving  effect  to
certain  pro  forma adjustments related to the acquisitions  were
$74,943 and $11,233, respectively.





INDEPENDENT ACCOUNTANTS' REPORT

Board of Directors and Stockholder
Magma Power Company
Omaha, Nebraska

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

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

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

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



DELOITTE & TOUCHE LLP
Omaha, Nebraska
August 12, 1997
  SALTON SEA ROYALTY COMPANY

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



                                        June 30,    December 31,
                                          1997         1996
                                     ___________     ___________
                                      (unaudited)
ASSETS
Due from affiliates                     $  10,622     $  10,008
Royalty stream, net                        39,929        44,372
Excess of cost over fair value of net assets
  acquired, net                            34,550        35,004
Prepaid expenses and other assets           1,335         1,689
                                       __________    __________
                                        $  86,436     $  91,073
                                       ==========    ==========


LIABILITIES AND EQUITY
Liabilities:
Accrued liabilities                     $  14,846    $  12,070
Senior secured project note                47,935        56,936
Deferred income taxes                      10,472        12,227
                                       __________    __________
  Total liabilities                        73,253        81,233

Equity:
Common stock, par value $.01 per share; 100
  share authorized, issued and outstanding      -            -
Additional paid-in capital                  1,561        1,561
Retained earnings                          11,622        8,279
                                       __________    __________
Total equity                               13,183         9,840
                                       __________    __________
                                        $  86,436     $  91,073
                                       ==========    ==========

The accompanying notes are an integral part of these financial  s
tatements.
                   SALTON SEA ROYALTY COMPANY

                   STATEMENTS OF OPERATIONS
                     (Dollars in Thousands)
                          (Unaudited)



                         Three Months Ended       Six Months Ended
                            June 30                    June 30
                       _____________________    ____________________
                           1997      1996      1997       1996
                         _______    _______  ________    ________
Revenues:
Royalty income            $ 7,922   $ 7,697  $ 15,783  $ 14,638

Expenses:
Operating, general and
  administrative expenses   1,955    1,845      3,832     3,552
Amortization of royalty stream
   and goodwill             2,448    2,570      4,897     5,140
Interest expense            1,094    1,341      2,226     2,699
                        _______________________________________
Total expenses              5,497    5,756     10,955    11,391
                        _______________________________________

Income before income taxes  2,425    1,941      4,828     3,247
Provision for income taxes    748      887      1,485     1,365
                        _______________________________________

Net income                $ 1,677  $ 1,054    $ 3,343   $ 1,882
                        =======================================

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


                   SALTON SEA ROYALTY COMPANY

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

                                               Six Months Ended
                                                   June 30,
                                             _____________________
                                               1997       1996
                                            _________    ________
Cash flows from operating activities:
Net income                                   $  3,343  $  1,882
Adjustments to reconcile net income to net
  cash flow from operating activities:
   Amortization of royalty stream and goodwill  4,897     5,140
   Changes in assets and liabilities:
   Prepaid expenses and other assets              354       445
   Accrued liabilities and deferred 
     income taxes                               1,021     1,321
Net cash flows from operating activities        9,615     8,788

Net cash flows from financing activities:
Decrease (increase) in due from affiliates       (614)    7,896
Repayment of Senior secured project note       (9,001)   (5,473)
Distribution to parent                              -   (11,211)
Net cash flows from financing activities       (9,615)   (8,788)
                                             _________ _________
Net change in cash                                  -         -
Cash at beginning of period                         -         -
                                             _________ _________
Cash at end of period                        $      -  $      -
                                             ========= =========

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


                   SALTON SEA ROYALTY COMPANY

                 NOTES TO FINANCIAL STATEMENTS
                         (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, 1997 and the results of operations for the three and
six  months ended June 30, 1997 and 1996 and cash flows  for  the
six months ended June 30, 1997 and 1996.

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

2. Other Footnote Information:

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

               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 Funding Corporation's
and  Guarantor's  financial condition and results  of  operations
during  the  periods included in the accompanying  statements  of
operations.

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

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

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

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

The Salton Sea I Project sells electricity to Edison pursuant  to
a  30-year  negotiated power purchase agreement, as amended  (the
"Salton  Sea  I  PPA"), which provides for  capacity  and  energy
payments.   The initial contract capacity and contract  nameplate
are  each 10 MW.  The energy payment is calculated using  a  Base
Price which is subject to quarterly adjustments based on a basket
of  indices.  The time period weighted average energy payment for
Salton  Sea  I was 5.3 cents per kWh during the six months  ended
June  30, 1997.  As the Salton Sea I PPA is not an SO4 Agreement,
the  energy  payments do not revert to Edison's Avoided  Cost  of
Energy.
               THE SALTON SEA 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 II and Salton Sea III Projects sell electricity to
Edison pursuant to 30-year modified SO4 Agreements.  The contract
capacities and contract nameplates are 15 MW and 20 MW for Salton
Sea  II and 47.5 MW and 49.8 MW for Salton Sea III, respectively.
The  contracts require Edison to make capacity payments, capacity
bonus  payments  and  energy payments.  The  price  for  contract
capacity  and contract capacity bonus payments is fixed  for  the
life of the modified SO4 Agreements.  The energy payments for the
first ten year period, which expires April 4, 2000 for Salton Sea
II  and February 13, 1999 for Salton Sea III, are levelized at  a
time  period weighted average of 10.6 cents per kWh and 9.8 cents
per  kWh  for  Salton  Sea II and Salton Sea  III,  respectively.
Thereafter,  the  monthly energy payments  will  be  at  Edison's
Avoided  Cost  of  Energy.  For  Salton Sea II  only,  Edison  is
entitled  to  receive, at no cost, 5% of all energy delivered  in
excess of 80% of contract capacity through March 31, 2004.

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

For  the six months ended June 30, 1997, Edison's average Avoided
Cost of Energy was 3.2 cents per kWh which is substantially below
the  contract energy prices earned for the six months ended  June
30,  1997.   Estimates of Edison's future Avoided Cost of  Energy
vary substantially from year to year.  The Company cannot predict
the  likely level of Avoided Cost of Energy prices under the  SO4
Agreements  and the modified SO4 Agreements at the expiration  of
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:

               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)
                          Three Months Ended       Six Months Ended
                               June 30,                June 30,
                         _________________________________________
                            1997       1996      1997     1996
                          ________  _________ __________________
Operating capacity factor    89.4%      78.7%     94.1%    83.8%
Capacity (NMW)
  (weighted average)*        119.4      92.9      119.4     86.3
kWh produced
  (in thousands)           233,100   159,700    487,900  315,900

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

The   following   data  includes  the  aggregate   capacity   and
electricity production of Vulcan, Del Ranch, Elmore and Leathers:
                       Three Months Ended         Six Months Ended
                                June 30,                June 30,
                        _________________________________________
                            1997       1996      1997     1996
                          ________  _________ __________________
Operating capacity factor    98.2%     109.2%    100.0%   103.4%
Capacity NMW (average)         148       148        148      148
kWh produced (in thousands)317,400   353,000    642,700  668,600

The  Salton  Sea  Guarantors' sales of electricity  increased  to
$25,169 for the three months ended June 30, 1997 from $19,012 for
the  same  period of 1996, a 32.4% increase.  For the  six  month
period  ended  June 30, 1997, sales of electricity  increased  to
$48,423  from $35,233 in 1996, a 37.4% increase.  These increases
were  primarily due to the addition of Unit IV production on June
1, 1996 and increased electric production at the other plants.

The  Partnership  Guarantors' sales of electricity  increased  to
$38,165 for the three months ended June 30, 1997 from $36,996 for
the  same  period in 1996, a 3.2% increase.  For  the  six  month
period  ended  June 30, 1997, sales of electricity  increased  to
$72,911  from $52,155 in 1996, a 39.8% increase.  These increases
were primarily due to the purchase of Edison Mission Energy's 50%
partnership interest in the four geothermal operating  facilities
in  April  1996  and a scheduled price increase at  some  of  the
facilities  offset partially by turbine overhauls at  Vulcan  and
Del Ranch in April 1997.

The  Royalty Guarantor revenue increased to $7,922 for the  three
months  ended June 30, 1997 from $7,697 for the same period  last
year.   For  the  six month period ended June 30,  1997,  revenue
increased  to  $15,783  from $14,638 in 1996,  a  7.8%  increase.
These increases were due primarily to higher energy sales at
Del  Ranch,  Elmore and Leathers compared to the same periods  of
1996.
               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  Guarantors' operating expenses,  which  include
royalty,  operating,  and  general and  administrative  expenses,
increased  to  $6,844, for the three months ended June  30,  1997
from $5,937 for the same period in 1996. For the six month period
ended June 30, 1997, operating expenses increased to $14,005 from
$11,726 in 1996.  These increases were primarily due to the start
up of the Salton Sea Unit IV plant in June 1996.

The  Partnership  Guarantors' operating expenses,  which  include
royalty,  operating,  and  general and  administrative  expenses,
decreased  to  $15,366 for the three months ended June  30,  1997
from  $16,798  for  the same period in 1996. For  the  six  month
period  ended  June  30,  1997, operating expenses  increased  to
$31,648 from $24,410 in 1996.  The decrease in the second quarter
was  due  to  a reduction in operating costs.  The year  to  date
increase   was  primarily  due  to  the  Edison  Mission   Energy
acquisition.

The  Royalty Guarantors' operating expenses increased  to  $1,955
for the three months ended June 30, 1997 from $1,845 for the same
period in 1996, a 6.0% increase.  For the six month period  ended
June 30, 1997, operating expenses increased to $3,832 from $3,552
in  1996,  a  7.9%  increase.  These  increases  were  due  to  a
scheduled increase in third party lessor royalties related to the
increase in the Partnership Projects' sales of electricity.

The   Salton   Sea  Guarantors'  depreciation  and   amortization
increased to $3,647 for the three months ended June 30, 1997 from
$3,204  for the same period of 1996, a 13.8% increase.   For  the
six   month   period  ended  June  30,  1997,  depreciation   and
amortization  increased to $7,289 from  $5,886  in  1996.   These
increases  were due primarily to the start up of the  Salton  Sea
Unit IV plant in June 1996.

The   Partnership   Guarantors'  depreciation  and   amortization
decreased to $9,686 for the three months ended June 30, 1997 from
$9,916 for the same period in 1996, a 2.3% decrease.  For the six
month  period  ended June 30, 1997, depreciation and amortization
increased  to  $19,330 from $14,289 in 1996,  a  35.3%  increase.
These  increases were due primarily to the Edison Mission  Energy
acquisition.

The  Royalty Guarantors' amortization decreased to $2,448 for the
three  months ended June 30, 1997 from $2,570 for the same period
of 1996, a 4.7% decrease. For the six month period ended June 30,
1997,  depreciation  and amortization decreased  to  $4,897  from
$5,140  in  1996.   These  decreases were  due  to  decreases  in
allocated purchase price depreciation.

The  Salton  Sea Guarantors' interest expense, net of capitalized
amounts, increased to $4,614 for the three months ended June  30,
1997                from                $3,355                for

               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  same  period in 1996, a 37.5% increase.  For the  six  month
period  ended June 30, 1997, interest expense, net of capitalized
amounts,  increased  to  $9,253  from  $6,312  in  1996.    These
increases  were due primarily to the capitalization  of  interest
related to the mineral reserve project.

The  Partnership Guarantors' interest expense, net of capitalized
amounts, increased to $1,246 for the three months ended June  30,
1997  from  $793 for the same period in 1996.  For the six  month
period  ended June 30, 1997, interest expense, net of capitalized
amounts,  increased to $2,651 from $793 in 1996.  These increases
were a result of increased indebtedness.

The  Royalty Guarantors' interest expense decreased to $1,094 for
the  three months ended June 30, 1997 from $1,341 from  the  same
period  in  1996.  For the six month period ended June 30,  1997,
interest expense decreased to $2,226 from $2,699 in 1996.   These
decreases were a result of reduced indebtedness.

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
$5,006  for the three months ended June 30, 1997 from $4,463  for
the  same  period in 1996, a 12.2% increase.  For the  six  month
period  ended  June  30,  1997, the provision  for  income  taxes
increased to $8,109 from $6,712 in 1996, a 20.8% increase.  These
increases  were  primarily due to an increase  in  income  before
income   taxes   resulting  from  the   Edison   Mission   Energy
acquisition.   Income taxes will be paid by  the  parent  of  the
Guarantors  from  distributions to  the  parent  company  by  the
Guarantors which occur after operating expenses and debt service.

The  Royalty  Guarantor's income tax provision was $748  for  the
three  months ended June 30, 1997 compared to $887 for  the  same
period  in  1996.  For the six month period ended June 30,  1996,
the  income tax provision was $1,485 compared to $1,365  for  the
same  period  in  1996. Tax obligations of the Royalty  Guarantor
will be remitted to the parent company only to the extent of cash
flows available after operating expenses and debt service.

The  Salton  Sea Funding Corporation's net income for  the  three
months ended June 30, 1997 was $356 compared to $510 for the same
period in 1996.  For the six month period ended June 30, 1997 net
income  decreased to $671 compared to $1,023 in  1996.   The  net
income     primarily    represents    interest     income     and

               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)

expense,  net  of  applicable tax, and  the  Salton  Sea  Funding
Corporation's 1% equity in earnings of the Guarantors.

The  Salton  Sea Guarantors' net income increased to $10,216  for
the  three months ended June 30, 1997 compared to $6,576 for  the
same  period  of 1996.  For the six month period ended  June  30,
1997,  net  income increased to $18,037 compared  to  $11,437  in
1996.

The  Partnership Guarantors' net income increased to  $7,883  for
the  three months ended June 30, 1997 compared to $6,955 for  the
same  period  of 1996.  For the six month period ended  June  30,
1997,  net  income increased to $12,740 compared  to  $10,100  in
1996.

The  Royalty Guarantors' net income increased to $1,677  for  the
three months ended June 30, 1997 compared to $1,054 for the  same
period  of  1996.  For the six month period ended June 30,  1997,
net increased to $3,343 compared to $1,882 in 1996.
               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 Guarantors' only source of revenue  is  payments
received  pursuant  to  long  term power  sales  agreements  with
Edison,  other  than interest earned on funds  on  deposit.   The
Partnership  Guarantors' primary source of  revenue  is  payments
received  pursuant  to  long  term power  sales  agreements  with
Edison.   The  Partnership Guarantors'  also  receive  a  special
distribution.  The Royalty Guarantor receives Royalties  pursuant
to  resource  lease agreements with the Partnership Projects  and
the   East  Mesa  Project.   These  payments,  for  each  of  the
Guarantors,  are expected to be sufficient to fund operating  and
maintenance expenses, payments of interest and principal  on  the
Securities,  projected  capital  expenditures  and  debt  service
reserve fund requirements.
                 SALTON SEA FUNDING CORPORATION

                  PART II - OTHER INFORMATION


Item 1 -  Legal proceedings.

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

Item 2 -  Changes in Securities.

    Not applicable.

Item 3 -  Default on Senior Securities.

    Not applicable.

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

    Not applicable.

Item 5 -  Other Information.

    Not applicable.

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

         (a)                    Exhibits:

          Exhibit 27 - Financial Data Schedule

         (b)          Report on Form 8-K:

    Not applicable.
                           SIGNATURES


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


                              SALTON SEA FUNDING CORPORATION


Date:  August 13, 1997        /s/  Gregory E. Abel

                                 Gregory E. Abel
                                 President and Chief Operating Officer,
                                 CalEnergy Europe and Chief Accounting Officer,
                                 CalEnergy Company, Inc.
                                
                                
                              /s/  Craig M. Hammett

                                 Craig M. Hammett
                                 Vice President and
                                 Chief Financial Officer

                                
                                
                                
                          EXHIBIT INDEX

Exhibit                                                    Page
  No.                                                       No.

  27     Financial Data Schedule                            36