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, 1999
          Commission File No.        33-95538

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

                           47-0790493
               (IRS Employer Identification No.)

Salton Sea Brine Processing L.P.  California   33-0601721
Salton Sea Power Generation L.P.  California   33-0567411
Fish Lake Power LLC               Delaware     33-0453364
Vulcan Power Company              Nevada       95-3992087
CalEnergy Operating Corporation   Delaware     33-0268085
Salton Sea Royalty LLC            Delaware     47-0790492
VPC Geothermal LLC                Delaware     91-1244270
San Felipe Energy Company         California   33-0315787
Conejo Energy Company             California   33-0268500
Niguel Energy Company             California   33-0268502
Vulcan/BN Geothermal Power Company Nevada      33-3992087
Leathers, L.P.                    California   33-0305342
Del Ranch, L.P.                   California   33-0278290
Elmore, L.P.                      California   33-0278294
(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, 1999.
<PAGE>
                 SALTON SEA FUNDING CORPORATION

                           Form 10-Q

                         March 31, 1999
                         _____________

                        C O N T E N T S


                 PART I:  FINANCIAL INFORMATION


Item 1.  Financial Statements                              Page

SALTON SEA FUNDING CORPORATION

Independent Accountants' Report                               4

Balance Sheets, March 31, 1999 and December 31, 1998          5

Statements of Operations for the Three Months Ended
 March 31, 1999 and 1998                                      6

Statements of Cash Flows for the Three Months Ended
 March 31, 1999 and 1998                                      7

Notes to Financial Statements                                 8

SALTON SEA GUARANTORS

Independent Accountants' Report                               9

Combined Balance Sheets, March 31, 1999 and December 31, 199810

Combined Statements of Operations for the Three Months Ended
 March 31, 1999 and 1998                                     11

Combined Statements of Cash Flows for the Three Months Ended
 March 31, 1999 and 1998                                     12

Notes to Combined Financial Statements                       13
<PAGE>
PARTNERSHIP GUARANTORS

Independent Accountants' Report                              14

Combined Balance Sheets, March 31, 1999 and December 31, 199815

Combined Statements of Operations for the Three Months Ended
 March 31, 1999 and 1998                                     16

Combined Statements of Cash Flows for the Three Months Ended
 March 31, 1999 and 1998                                     17

Notes to Combined Financial Statements                       18

SALTON SEA ROYALTY COMPANY

Independent Accountants' Report                              19

Balance Sheets, March 31, 1999 and December 31, 1998         20

Statements of Operations for the Three Months Ended
 March 31, 1999 and 1998                                     21

Statements of Cash Flows for the Three Months Ended
 March 31, 1999 and 1998                                     22

Notes to Financial Statements                                23

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


                  PART II:  OTHER INFORMATION

Item 1.  Legal Proceedings                                   34
Item 2.  Changes in Securities                               34
Item 3.  Defaults on Senior Securities                       34
Item 4.  Submission of Matters to a Vote of
         Security Holders                                    34
Item 5.  Other Information                                   34
Item 6.  Exhibits and Reports on Form 8-K                    34

Signatures                                                   35

Exhibit Index                                                36

<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,  1999,  and  the  related
statements  of  operations and cash flows  for  the  three  month
periods   ended  March  31,  1999  and  1998.   These   financial
statements are the responsibility of the Company's management.

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

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

We have previously audited, in accordance with generally accepted
auditing  standards,  the balance sheet  of  Salton  Sea  Funding
Corporation  as of December 31, 1998, and the related  statements
of  operations, stockholder's equity, and cash flows for the year
then  ended  (not  presented herein); and  in  our  report  dated
January  28,  1999, (March 3, 1999 as to Note 4) we expressed  an
unqualified  opinion  on  those  financial  statements.   In  our
opinion,  the  information set forth in the accompanying  balance
sheet  as  of December 31, 1998 is fairly stated, in all material
respects, in relation to the balance sheet from which it has been
derived.


DELOITTE & TOUCHE LLP
Omaha, Nebraska
April 28, 1999
<PAGE>
                SALTON SEA FUNDING CORPORATION

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



                                       March 31,    December 31,
                                         1999           1998
                                     ___________      __________
                                     (unaudited)
ASSETS
Cash                                   $  41,990      $  17,629
Prepaid expenses and other assets         17,129          6,768
Secured project notes from Guarantors    626,816        626,816
Investment in 1% of net assets of
  Guarantors                               8,240          8,124
                                      __________     __________
                                       $ 694,175      $ 659,337
                                      ==========     ==========

LIABILITIES AND STOCKHOLDER'S EQUITY
Liabilities:
Accrued liabilities                    $  15,708      $   3,971
Due to affiliates                         39,541         16,612
Senior secured notes and bonds           626,816        626,816
                                      __________     __________
  Total liabilities                      682,065        647,399

Stockholder's equity:
Common stock--authorized 1,000
  shares, par value $.01 per share;
  issued and outstanding 100 shares          ---            ---
Additional paid-in capital                 5,366          5,366
Retained earnings                          6,744          6,572
                                      __________     __________
  Total stockholder's equity              12,110         11,938
                                      __________     __________
                                       $ 694,175      $ 659,337
                                      ==========     ==========

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


                                     Three Months Ended
                                          March 31,
                                      1999      1998
Revenues:

Interest income                   $  12,129  $  8,990
Equity in earnings of Guarantors        116       161
                                  _    ____  ________
Total revenues                       12,245     9,151
                                  _________  ________

Expenses:

General and administrative expenses     215       238
Interest expense                     11,737     8,259
                                  _________  ________
Total expenses                       11,952     8,497
                                  _________  ________
Income before income taxes              293       654
Provision for income taxes              121       269
                                  _________  ________
Net income                         $    172 $     385
                                  ========= =========

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,
                                                1999     1998

Cash flows from operating activities:
  Net income                                $    172 $    385
  Adjustments to reconcile net income to net
     cash flow from operating activities:
  Equity in earnings of guarantors              (116)     (161)
  Changes in assets and liabilities:
     Prepaid expenses and other assets       (10,361)   (8,583)
     Accrued liabilities                      11,737     8,298
                                           __________ _________
  Net cash flows from operating activities     1,432       (61)
                                           __________ _________
Cash flows from investing activities:
  Principal repayments of secured project notes
    from Guarantors                              ---       ---
                                           __________ _________
  Net cash flows from investing activities       ---       ---
                                           __________ _________
Cash flows from financing activities:
  Increase in due to affiliates               22,929    54,648
  Repayment of senior secured notes and bonds    ---       ---
                                           __________ _________
  Net cash flows from financing activities    22,929    54,648
                                           __________ _________
Net change in cash                            24,361    54,587
Cash at the beginning of period               17,629    15,568
                                           __________ _________
Cash at the end of period                  $  41,990  $ 70,155
                                           ========== =========
Supplemental disclosures:
  Interest paid                            $     ---  $    ---
                                          =========== =========

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,  1999  and
the  results of operations for the three months ended  March  31,
1999 and 1998 and cash flows for the three months ended March 31,
1999  and  1998.  The results of operations for the three  months
ended  March 31, 1999 and 1998 are not necessarily indicative  of
the results to be expected for the full year.

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

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

2.  Disposition of power generation assets:

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

<PAGE>

INDEPENDENT ACCOUNTANTS' REPORT

Board of Directors and Stockholder
Magma Power Company
Omaha, Nebraska

We  have reviewed the accompanying combined balance sheet of  the
Salton  Sea  Guarantors  as of March 31, 1999,  and  the  related
combined  statements of operations and cash flows for  the  three
month  period  ended  March 31, 1999 and 1998.   These  financial
statements  are the responsibility of the Salton Sea  Guarantors'
management.

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

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

We have previously audited, in accordance with generally accepted
auditing standards, the combined balance sheet of the Salton  Sea
Guarantors  as  of  December 31, 1998, and the  related  combined
statements of operations, Guarantors' equity, and cash flows  for
the  year  then ended (not presented herein); and in  our  report
dated  January  28,  1999, (March 3,  1999  as  to  Note  6),  we
expressed  an  unqualified  opinion on those  combined  financial
statements.   In our opinion, the information set  forth  in  the
accompanying combined balance sheet as of December  31,  1998  is
fairly  stated,  in  all material respects, in  relation  to  the
combined balance sheet from which it has been derived.


DELOITTE & TOUCHE LLP
Omaha, Nebraska
April 28, 1999
<PAGE>
                     SALTON SEA GUARANTORS

                    COMBINED BALANCE SHEETS
                     (Dollars in Thousands)


                                       March 31,    December 31,
                                         1999           1998
                                      __________      _________
                                     (unaudited)
ASSETS
Restricted cash                        $  63,913     $  71,673
Accounts receivable                       10,269        15,957
Prepaid expenses and other assets         11,199        12,410
Property, plant, contracts and 
 equipment, net                          486,389       480,293
Excess of cost over fair value of 
 net assets acquired, net                 47,856        48,182
                                       _________      _________
                                       $ 619,626     $ 628,515
                                        ========       ========


LIABILITIES AND GUARANTORS' EQUITY
Liabilities:
Accounts payable                       $     371     $     504
Accrued liabilities                       12,476         7,166
Due to affiliates                         13,260        30,688
Senior secured project note              310,030       310,030
                                       _________      _________
  Total liabilities                      336,137       348,388

Total Guarantors' equity                 283,489       280,127
                                       _________      _________
                                       $ 619,626     $ 628,515
                                       =========      =========

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

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




                                    Three Months Ended
                                        March 31
                                  _____________________
                                     1999      1998
                                   ________  ________
Revenues:

Sales of electricity               $ 18,272  $ 20,185
Interest and other income               792        15
                                    _______   _______
  Total revenues                     19,064    20,200
                                    _______   _______
Expenses:

Operating, general and
   administration                     7,308     6,747
Depreciation and amortization         4,022     3,714
Interest expense                      6,076     5,260
Less capitalized interest            (1,704)   (1,332)
                                    _______   _______
  Total expenses                     15,702    14,389
                                    _______   _______
Net income                         $  3,362  $  5,811
                                    =======   =======

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,
                                              ___________________
                                                1999     1998
                                              _________ _________
Cash flows from operating activities:
Net income                                   $  3,362  $  5,811
Adjustments to reconcile net income to net
  cash flows from operating activities:
   Depreciation and amortization                4,022     3,714
   Changes in assets and liabilities:
    Accounts receivable                         5,688     3,200
    Prepaid expenses and other assets           1,211       866
    Accounts payable and accrued
     liabilities                                5,177     5,052
                                            _________  _________
Net cash flows from operating activities       19,460    18,643
                                            _________ _________
Cash flows from investing activities:
Capital expenditures                           (9,792)   (1,498)
Decrease in restricted cash                     7,760       ---
                                            _________ _________
Net cash flows from investing activities       (2,032)   (1,498)

Cash flows from financing activities:
 Decrease in due to affiliates                (17,428)  (17,145)
 Repayments of senior secured project note        ---       ---
                                            ___________________
Net cash flows from financing activities      (17,428)  (17,145)
                                            _________  _________
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, 1999 and the results of operations for  the  three
months ended March 31, 1999 and 1998 and cash flows for the three
months  ended March 31, 1999 and 1998.  The results of operations
for  the  three  months ended March 31, 1999  and  1998  are  not
necessarily indicative of the results to be expected for the full
year.

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

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

2. Disposition of power generation assets:

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

<PAGE>

INDEPENDENT ACCOUNTANTS' REPORT

Board of Directors and Stockholder
Magma Power Company
Omaha, Nebraska

We  have reviewed the accompanying combined balance sheet of  the
Partnership  Guarantors as of March 31,  1999,  and  the  related
combined  statements of operations and cash flows for  the  three
month  periods  ended March 31, 1999 and 1998.   These  financial
statements  are the responsibility of the Partnership Guarantors'
management.

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

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

We have previously audited, in accordance with generally accepted
auditing standards, the combined balance sheet of the Partnership
Guarantors  as  of  December 31, 1998, and the  related  combined
statements of operations, Guarantors' equity and cash  flows  for
the  year  then ended (not presented herein); and in  our  report
dated  January  28,  1999, (March 3, 1999  as  to  Note  10),  we
expressed  an  unqualified  opinion on those  combined  financial
statements.   In our opinion, the information set  forth  in  the
accompanying combined balance sheet as of December  31,  1998  is
fairly  stated,  in  all material respects, in  relation  to  the
combined balance sheet from which it has been derived.


DELOITTE & TOUCHE LLP
Omaha, Nebraska
April 28, 1999
<PAGE>
                     PARTNERSHIP GUARANTORS

                    COMBINED BALANCE SHEETS
                     (Dollars in Thousands)


                                        March 31,    December 31,
                                          1999           1998
                                     (unaudited)
ASSETS
Restricted cash                        $ 154,403      $ 164,983
Accounts receivable                       21,245         33,404
Prepaid expenses and other assets         22,898         23,088
Due from affiliates                      141,599        121,130
Property, plant, contracts and 
 equipment, net                          412,761        399,817
Management fee                            71,277         71,596
Excess of cost over fair value of net 
 assets acquired, net                    130,667        131,558
                                       _________      _________
                                       $ 954,850      $ 945,576
                                       =========      =========


LIABILITIES AND GUARANTORS' EQUITY
Liabilities:
Accounts payable                       $   2,647      $   1,879
Accrued liabilities                       58,490         53,647
Senior secured project notes             293,576        293,576
Deferred income taxes                     98,758         97,641
                                       _________      _________
Total liabilities                        453,471        446,743

Commitments and Contingencies (Note 3)

Guarantors' equity:
Common stock                                   3              3
Additional paid-in capital               387,663        387,663
Retained earnings                        113,713        111,167
                                       _________      _________
Total Guarantors' equity                 501,379        498,833
                                       _________      _________
                                       $ 954,850      $ 945,576
                                       =========      =========



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

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


                                  Three Months Ended
                                        March 31,
                                     1999      1998
                                  _________ _________
Revenues:

Sales of electricity               $ 22,030  $ 34,097
Interest and other income             2,319       734
                                  _________ _________
Total revenues                       24,349    34,831
                                  _________ _________
Expenses:

Operating, general and
   administration                    11,207    14,090
Depreciation and amortization         6,218    10,155
Interest expense                      5,694     3,297
Less capitalized interest            (2,433)   (2,462)
                                  _________ _________

Total expenses                       20,686    25,080
                                  _________ _________

Income before income taxes            3,663     9,751
Provision for income taxes            1,117     3,801
                                  _________ _________

Net income                        $   2,546 $   5,950
                                  ========= =========



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,
                                                 1999     1998
                                            _________ _________
Cash flows from operating activities:
Net income                                  $   2,546 $   5,950
Adjustments to reconcile net income to net
  cash flow from operating activities:
   Depreciation and amortization                6,218    10,155
   Deferred income taxes                        1,117     3,801
   Changes in assets and liabilities:
     Accounts receivable                       12,159        20
     Prepaid expenses and other assets            190     1,168
     Accounts payable and accrued
      liabilities                              5,611      2,432
                                            _________ _________
Net cash flows from operating activities       27,841    23,526
                                            _________ _________
Cash flows from investing activities:
Capital expenditures                          (17,568)  (10,675)
Decrease in restricted cash                    10,580       ---
Management fee                                   (384)     (705)
                                            _________ _________
Net cash flows from investing activities       (7,372)  (11,380)
                                            _________ _________
Cash flows from financing activities:
Repayments of senior secured project notes        ---       ---
Increase in due from affiliates               (20,469)  (12,146)
                                            _________ _________
Net cash flows from financing activities      (20,469)  (12,146)
                                            _________ _________
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, 1999 and the results of operations  for
the three months ended March 31, 1999 and 1998 and cash flows for
the  three  months ended March 31, 1999 and 1998. The results  of
operations for the three months ended March 31, 1999 and 1998 are
not  necessarily indicative of the results to be expected for the
full year.

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

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

2.  Disposition of power generation assets:

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

3. Contingencies:

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


<PAGE>


INDEPENDENT ACCOUNTANTS' REPORT

Board of Directors and Stockholder
Magma Power Company
Omaha, Nebraska

We have reviewed the accompanying balance sheet of the Salton Sea
Royalty  Company as of March 31, 1999, and the related statements
of  operations  and cash flows for the three month periods  ended
March  31,  1999  and 1998.  These financial statements  are  the
responsibility of the Salton Sea Royalty Company's management.

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

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

We have previously audited, in accordance with generally accepted
auditing  standards, the balance sheet of the Salton Sea  Royalty
Company  as  of December 31, 1998, and the related statements  of
operations, equity, and cash flows for the year then  ended  (not
presented  herein);  and in our report dated  January  28,  1999,
(March 3, 1999 as to Note 5), we expressed an unqualified opinion
on  those  financial statements. In our opinion, the  information
set  forth  in the accompanying balance sheet as of December  31,
1998  is fairly stated, in all material respects, in relation  to
the balance sheet from which it has been derived.



DELOITTE & TOUCHE LLP
Omaha, Nebraska
April 28, 1999
                   SALTON SEA ROYALTY COMPANY

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


                                        March 31,   December 31,
                                          1999          1998
                                      ___________   ___________
                                      (unaudited)
ASSETS
Due from affiliates                     $  53,961     $  50,928
Royalty stream, net                        20,710        22,932
Excess of cost over fair value of net assets
  acquired, net                            32,961        33,188
Prepaid expenses and other assets             443           513
                                       __________    __________
                                       $  108,075    $  107,561
                                       ==========    ==========


LIABILITIES AND EQUITY
Liabilities:
Accrued liabilities                     $  35,332    $   39,584
Senior secured project note                23,210        23,210
Deferred income taxes                       5,891         6,769
                                       __________    __________
  Total liabilities                        64,433        69,563

Equity:
Common stock, par value $.01 per share; 100
  share authorized, issued and outstanding      -             -
Additional paid-in capital                  1,561         1,561
Retained earnings                          42,081        36,437
                                       __________    __________
Total equity                               43,642        37,998
                                       __________    __________
                                       $  108,075    $  107,561
                                       ==========    ==========

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

                   STATEMENTS OF OPERATIONS
                     (Dollars in Thousands)
                          (Unaudited)



                                               Three Months Ended
                                                     March 31,
                                              _____________________
                                                1999         1998
                                              _______      _______
Revenues:
Royalty income                               $  13,459    $ 12,038

Expenses:
Operating, general and
  administrative expenses                        1,108       1,859
Amortization of royalty stream
   and goodwill                                  2,449       2,449
Interest expense                                   468         776
                                             _________  __________
Total expenses                                   4,025       5,084
                                             _________  __________

Income before income taxes                       9,434       6,954
Provision for income taxes                       3,790       2,625
                                             _________  __________

Net income                                     $ 5,644     $ 4,329
                                             =========  ==========

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,
                                            _____________________
                                                1999       1998
                                            _________    ________
Cash flows from operating activities:
Net income                                   $  5,644  $  4,329
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               70       117
    Accrued liabilities and deferred income 
     taxes                                     (5,130)    6,125
Net cash flows from operating activities        3,033    13,020

Net cash flows from financing activities:
Increase in due from affiliates                (3,033)  (13,020)
Repayment of senior secured project note          ---       ---
                                            _________ _________
Net cash flows from financing activities       (3,033)  (13,020)

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, 1999 and the results of operations for  the  three
months ended March 31, 1999 and 1998 and cash flows for the three
months  ended March 31, 1999 and 1998. The results of  operations
for  the  three  months ended March 31, 1999  and  1998  are  not
necessarily indicative of the results to be expected for the full
year.

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

2.  Disposition of power generation assets:

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

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

Results of Operations:

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

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

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

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

For  1999, Vulcan, Hoch and Elmore are receiving Edison's Avoided
Cost of Energy pursuant to their respective SO4 Agreements.   The
SO4  Agreement  for Leathers provides for energy  rates  of  15.6
cents per kWh in 1999.

<PAGE>

               THE SALTON SEA FUNDING CORPORATION

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

Results of Operations:  (continued)

The Salton Sea I Project sells electricity to Edison pursuant  to
a  30-year  negotiated power purchase agreement, as amended  (the
"Salton  Sea  I  PPA"), which provides for  capacity  and  energy
payments.   The energy payment is calculated using a  Base  Price
which  is  subject to quarterly adjustments based on a basket  of
indices.   The  time period weighted average energy  payment  for
Salton Sea I was 5.4 cents per kWh during the three months  ended
March 31, 1999.  As the Salton Sea I PPA is not an SO4 Agreement,
the  energy  payments do not revert to Edison's Avoided  Cost  of
Energy.

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

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

For  the  three  months  ended March 31, 1999,  Edison's  average
Avoided   Cost  of  Energy  was  2.6  cents  per  kWh  which   is
substantially  below the contract energy prices  earned  for  the
three  months ended March 31, 1999.  Estimates of Edison's future
Avoided  Cost  of Energy vary substantially from  year  to  year.
<PAGE>
               THE SALTON SEA FUNDING CORPORATION
            MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS
              (in thousands, except per kwh data)
               _________________________________

Results of Operations:  (continued)

The  Company cannot predict the likely level of Avoided  Cost  of
Energy  prices  under  the SO4 Agreements and  the  modified  SO4
Agreements  at  the expiration of the scheduled payment  periods.
The  revenues  generated by each of the projects operating  under
such  Agreements  will  likely decline  significantly  after  the
expiration of the respective scheduled payment periods.

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

                                     Three Months Ended
                                          March 31,
                                   _____________________
                                       1999      1998
                                     ________ _________
Overall capacity factor                 83.8%     81.4%
Capacity (NMW) (average)                119.4     119.4
kWh produced (in thousands)           216,000   209,900

The overall capacity factor for the Salton Sea Projects increased
for  the  three months ended March 31, 1999 compared to the  same
period in 1998 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,
                                    _____________________
                                       1999      1998
                                     ________ _________
Overall capacity factor                106.8%     98.4%
Capacity (NMW) (average)                  148       148
kWh produced (in thousands)           341,500   314,500

The   overall  capacity  factor  for  the  Partnership   Projects
increased  for the three months ended March 31, 1999 compared  to
the  same  period in 1998 due to scheduled overhauls at  Leathers
and Elmore in 1998.

<PAGE>

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

Results of Operations:  (continued)

Revenues:

The  Salton  Sea  Guarantors' sales of electricity  decreased  to
$18,272  for  the three months ended March 31, 1999 from  $20,185
for  the same period in 1998, a 9.5% decrease. This decrease  was
primarily due to the expiration of the scheduled price period  at
Salton Sea Unit III in February, 1999.

The  Partnership  Guarantors' sales of electricity  decreased  to
$22,030  for  the three months ended March 31, 1999 from  $34,097
for the same period in 1998, a 35.4% decrease.  This decrease was
due to the expiration of the fixed price period at Elmore and Del
Ranch at December 31, 1998.

The  Royalty Guarantor revenue increased to $13,459 for the three
months ended March 31, 1999 from $12,038 for the same period last
year. This increase was due primarily to an increase in East Mesa
royalty income related to a royalty settlement.

Operating Expenses:

The  Salton  Sea  Guarantors' operating expenses,  which  include
royalty,  operating,  and  general and  administrative  expenses,
increased  to $7,308, for the three months ended March  31,  1999
from $6,747 for the same period in 1998.

The  Partnership  Guarantors' operating expenses,  which  include
royalty,  operating,  and  general and  administrative  expenses,
decreased  to $11,207 for the three months ended March  31,  1999
from $14,090 for the same period in 1998. The decrease was due to
a reduction in royalty expenses due to the lower revenues.

The  Royalty Guarantors' operating expenses decreased  to  $1,108
for  the  three months ended March 31, 1999 from $1,859  for  the
same period in 1998, a 40.4% decrease.  This decrease was due  to
lower  royalty costs due to the end of the scheduled price period
at Del Ranch and Elmore.

Depreciation and Amortization:

The   Salton   Sea  Guarantors'  depreciation  and   amortization
increased  to  $4,022 for the three months ended March  31,  1999
from $3,714 for the same period of 1998, an 8.3% increase.
<PAGE>

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

Results of Operations:  (continued)

The   Partnership   Guarantors'  depreciation  and   amortization
decreased  to  $6,218 for the three months ended March  31,  1999
from  $10,155 for the same period in 1998.  The decrease was  due
primarily  to lower step up depreciation amortization  after  the
end of the scheduled price period at Del Ranch and Elmore.

The  Royalty  Guarantors' amortization was $2,449 for  the  three
months  ended  March  31, 1999 compared to $2,449  for  the  same
period of 1998.

Interest Expense:

The  Salton  Sea Guarantors' interest expense, net of capitalized
amounts, increased to $4,372 for the three months ended March 31,
1999  from  $3,928 for the same period in 1998, a 11.3% increase.
The  increase was due to increased indebtedness from the issuance
of the Series F notes in October 1998.

The  Partnership Guarantors' interest expense, net of capitalized
amounts, increased to $3,261 for the three months ended March 31,
1999 from $835 for the same period in 1998.  The increase was due
to increased indebtedness from the issuance of the Series F notes
in October 1998.

The  Royalty Guarantors' interest expense decreased to  $468  for
the  three  months ended March 31, 1999 from $776 from  the  same
period in 1998. The decrease was due to reduced indebtedness.

Income Tax Provision:

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

The  Partnership  Guarantors income tax  provision  decreased  to
$1,117 for the three months ended March 31, 1999 from $3,801  for
the  same  period in 1998, a 70.6% decrease.  This  decrease  was
primarily  due  to a lower pre-tax income. Income taxes  will  be
paid  by the parent of the Guarantors from distributions  to  the
parent  company  by  the Guarantors which occur  after  operating
expenses and debt service.
<PAGE>
               THE SALTON SEA FUNDING CORPORATION
            MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS
              (in thousands, except per kwh data)
               _________________________________

Results of Operations:  (continued)

The  Royalty Guarantor's income tax provision was $3,790 for  the
three months ended March 31, 1999 compared to $2,625 for the same
period in 1998. This increase was primarily due to higher pre-tax
income.   Tax  obligations  of  the  Royalty  Guarantor  will  be
remitted  to the parent company only to the extent of cash  flows
available after operating expenses and debt service.

Net Income:

The  Salton  Sea Funding Corporation's net income for  the  three
months  ended  March 31, 1999 was $172 compared to $385  for  the
same period in 1998. The net income primarily represents interest
income  and  expense, net of applicable tax, and the  Salton  Sea
Funding Corporation's 1% equity in earnings of the Guarantors.

The Salton Sea Guarantors' net income decreased to $3,362 for the
three months ended March 31, 1999 compared to $5,811 for the same
period of 1998.

The  Partnership Guarantors' net income decreased to  $2,546  for
the  three months ended March 31, 1999 compared to $5,950 for the
same period of 1998.

The  Royalty Guarantors' net income increased to $5,644  for  the
three months ended March 31, 1999 compared to $4,329 for the same
period of 1998.

Liquidity and Capital Resources:

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

Minerals LLC is constructing the Zinc Recovery Project which will
recover  zinc  from  the  geothermal brine  (the  "Zinc  Recovery
Project").   Four  facilities  will be  installed  near  Imperial
Valley Project sites to extract a zinc chloride solution from the
brine  through  an ion exchange process.  This solution  will  be
transported to a central processing plant where zinc ingots  will
be   produced  through  solvent  extraction,  electrowinning  and
casting processes.  The Zinc Recovery Project is designed to have
a  capacity of approximately 30,000 metric tonnes per year and is
scheduled to commence commercial operation in mid-2000.
<PAGE>
               THE SALTON SEA FUNDING CORPORATION
            MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS
              (in thousands, except per kwh data)
               _________________________________

Liquidity and Capital Resources: (continued)

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

The  Zinc Recovery Project is being constructed by Kvaerner  U.S.
Inc.  ("Kvaerner")  pursuant  to  a  date  certain,  fixed-price,
turnkey  engineering, procurement and construction contract  (the
"Zinc  Recovery Project EPC Contract").  Kvaerner  is  a  wholly-
owned  indirect  subsidiary of Kvaerner ASA,  an  internationally
recognized engineering and construction firm experienced  in  the
metals, mining and processing industries. Total project costs  of
the  Zinc  Recovery  Project  are expected  to  be  approximately
$200,900.  The Company has incurred $31,500 of such costs through
March 31, 1999.

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

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

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

The  Partnership  Projects  are upgrading  the  geothermal  brine
processing  facilities at the Vulcan and Del Ranch Projects  with
the  Region  2  Brine Facilities Construction.   In  addition  to
incorporating  the  pH modification process,  which  has  reduced
operating  costs  at  the  Salton Sea  Projects,  the  new,  more
efficient  facilities  will  achieve economies  through  improved
brine  processing  systems  and the utilization  of  more  modern
equipment.   The  Partnership Projects expect these  improvements
will  reduce brine-handling operating costs at the Vulcan Project
and the Del Ranch Project.
<PAGE>
               THE SALTON SEA FUNDING CORPORATION
            MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS
              (in thousands, except per kwh data)
               _________________________________

Liquidity and Capital Resources: (continued)

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

Total  equity  funding  for  these projects  is  expected  to  be
approximately $122,500.

The  operating Salton Sea Guarantors' only source of  revenue  is
payments  received pursuant to long term power  sales  agreements
with Edison, other than interest earned on funds on deposit.  The
operating  Partnership Guarantors' primary source of  revenue  is
payments  received pursuant to long term power  sales  agreements
with  Edison. The Royalty Guarantor's only source of  revenue  is
Royalties received pursuant to resource lease agreements with the
Partnership Projects 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.

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

The  Y2K issue creates uncertainty for the Company from potential
issues with its own computer systems and from third parties  with
whom  the Company deals on transactions worldwide.  The Company's
operations  utilize  systems  and  equipment  provided  by  other
organizations.  As a result, Y2K readiness of suppliers, vendors,
service   providers  or  customers  could  impact  the  Company's
operations.
<PAGE>
               THE SALTON SEA FUNDING CORPORATION
            MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS
              (in thousands, except per kwh data)
               _________________________________

Liquidity and Capital Resources: (continued)

The  Company  is  assessing  the readiness  of  such  constituent
entities  and  the impacts on those entities that rely  upon  the
Company's services.  The Company is unable to determine  at  this
time  whether  the consequences of Y2K failures of third  parties
will  have  a  material  impact  on  the  Company's  results   of
operations, liquidity or financial condition.
  
The Company has commenced, for all of its information systems,  a
Y2K  date  conversion  project  to  address  all  necessary  code
changes, testing and implementation in order to resolve  the  Y2K
issue.   The  Company  created a Y2K project  team  to  identify,
assess and correct all of its information technology (IT) and non-
IT  systems, as well as, identify and assess third party systems.
The  Company has identified and assessed substantially all of its
IT  and  non-IT  systems  and  is currently  in  the  process  of
repairing  or replacing those systems which it believes  are  not
year  2000  compliant.  Through March 31, 1999,  the  Company  is
approximately  99%  complete  in  repairing  or  replacing  those
systems.  The Company expects to be 100% complete of  correcting,
testing, and compliance of those systems by June, 1999.
  
Total  Y2K  expenditures, for both repairing  or  replacing  non-
compliant systems, are expected to total approximately $100.  The
Company  has renovated or replaced several non-compliant  systems
to  gain  enhanced functionalities.  The cost of these  types  of
renovations  and replacements is not reported herein since  their
development  and  installation were not driven by  Y2K  concerns.
The  Company is not aware of any additional material costs needed
to  be  incurred  to  bring all of its systems  into  compliance;
however, there is no assurance that additional costs will not  be
incurred.

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

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

Inflation has not had a significant impact on the Guarantors'  
operating revenue and costs.
<PAGE>
               THE SALTON SEA FUNDING CORPORATION
            MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS
              (in thousands, except per kwh data)
               _________________________________

Liquidity and Capital Resources: (continued)

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

<PAGE>
  
                 SALTON SEA FUNDING CORPORATION

                  PART II - OTHER INFORMATION


Item 1 -  Legal proceedings.

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

Item 2 -  Changes in Securities.

    Not applicable.

Item 3 -  Default on Senior Securities.

    Not applicable.

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

    Not applicable.

Item 5 -  Other Information.

    Not applicable.

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

         (a)                    Exhibits:

          Exhibit 27 - Financial Data Schedule

         (b)          Report on Form 8-K:

         Not applicable.
<PAGE>
                           SIGNATURES


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


                              SALTON SEA FUNDING CORPORATION


Date:  May 13, 1999           /s/  Patrick J. Goodman

                                 Patrick J. Goodman
                                 Senior Vice President and
                                 Chief Financial Officer

<PAGE>

                                
                                
                                
                          EXHIBIT INDEX

Exhibit                                                    Page
  No.                                                       No.

  27     Financial Data Schedule                            37