FORM 10-QSB

[As last amended in Release No. 34-32231, April 28, 1993, 58 F.R.26509]

             U.S. SECURITIES AND EXCHANGE COMMISSION

                     WASHINGTON, D.C.  20549

                           FORM 10-QSB

(Mark One)
  [X]QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE 
     SECURITIES EXCHANGE ACT OF 1934 

       For the quarterly period ended:  September 30, 1996

  [ ]      TRANSITION REPORT UNDER SECTION 13 OR 15(d)
                       OF THE EXCHANGE ACT

For the transition period from ________________ to ______________

Commission file number            0-14452                        

               Far West Electric Energy Fund, L.P.
(Exact name of small business issuer as specified in its charter)

                Delaware                    87-0414725   
    State or other jurisdiction of   (I.R.S. Employer
    incorporation or organization  Identification
No.)

921 Executive Park Drive, Suite B, Salt Lake City, Utah   84117  

  (Address of principal executive offices)     

(801) 268-4444                                                   

Issuer's telephone number

                       Not Applicable                            
      (Former name, former address and former fiscal year, 
                  if changed since last report.)

     Check whether the issuer (1) filed all reports required to
be filed by Section 13 or 15(d) of the Exchange Act during the
past 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 ___



                        Part I. FINANCIAL INFORMATION

Item 1.  Financial Statements


                     FAR WEST ELECTRIC ENERGY FUND, L.P.
                              Balance Sheets
                 December 31, 1995 and September 30, 1996
                                 (Unaudited)

       Assets                               09/30/96       12/31/95

Utility plant:
   Plant in service                      $15,999,000   $ 15,999,000 
   Equipment                                 629,000        588,000
   Construction in progress                  118,000        118,000
   Accumulated depreciation               (5,859,000)    (5,377,000)
   
       Net utility plant                  10,887,000     11,328,000

  Restricted Marketable Securities         1,067,000      1,026,000

      Other assets                            93,000        106,000

Current assets:
   Cash                                      207,000        263,000
   Receivables - Trade                       271,000        399,000
   Receivables - Other                             0          6,000
   Prepaid Insurance                          16,000          4,000

      Total current assets                   494,000        672,000

        Total assets                   $  12,541,000   $ 13,132,000



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



                       FAR WEST ELECTRIC ENERGY FUND, L.P.
                                 Balance Sheets
                    December 31, 1995 and September 30, 1996
                                    (Unaudited)

       Partners' Capital and Liabilities      09/30/96     12/31/95

Partners' capital                         $  5,334,000  $ 5,140,000

Long-term debt:
  Long-term debt, excluding 
    current portion                            537,000      537,000
  Notes payable - Related party                152,000      188,000

Partners' capital and Long-term
  Liabilities                                 6,023,000    5,865,000

Current liabilities:
  Current portion - Long-term debt            3,911,000    4,563,000
  Note payable - Related party                1,246,000    1,159,000
    Payable - Related party                     274,000      433,000
  Accrued Liabilities
    Operations                                  295,000      402,000
    Royalties                                    78,000       96,000
    Interest                                    714,000      614,000


     Total current liabilities                6,518,000    7,267,000
     
     Total partners, capital
          and liabilities                $   12,541,000 $ 13,132,000




                     The accompanying notes are an integral
                       part of these financial statements



                        FAR WEST ELECTRIC ENERGY FUND, L.P.
                            Statements of Operations
                                    (Unaudited)

                           For The    For The   For The    For The
                           3 Months   3 Months  9 Months   9 Months
                           Ended      Ended     Ended      Ended
                           09/30/96   09/30/95   09/30/96  09/30/95

Revenues
   Electric power sales    $534,000   494,000  $2,043,000 1,794,000
   Pumping charges           21,000    22,000      46,000    47,000
   Royalty income            22,000    22,000      65,000    63,000
   Interest income           17,000    18,000      43,000    50,000

       Total Revenues       594,000   556,000   2,197,000 1,954,000

Expenses
   Interest                 188,000   143,000     544,000   924,000
   Depreciation             161,000   158,000     481,000   462,000
   Royalty                   88,000    82,000     325,000   290,000
   Professional Services     30,000     1,000     100,000    42,000
   Administrative services -
     general partner         24,000    13,000      78,000    95,000
   Amortization               4,000     4,000      13,000    13,000
   Insurance                 11,000    11,000      36,000    34,000
   Maintenance              128,000   164,000     409,000   443,000
   Travel                         0     7,000           0     7,000
   Taxes                          0     1,000       1,000     1,000
   Other                      8,000     6,000      16,000    21,000

       Total Expenses       642,000   590,000   2,003,000 2,332,000

  Net Income (Loss)
       Before Gain on Sale  (48,000)  (34,000)    194,000  (378,000)

  Gain on Sale of Crystal
      Springs Project             0         0           0   188,000

  Net Income or (Loss)     $(48,000) $(34,000) $  194,000 $(190,000)




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



                        FAR WEST ELECTRIC ENERGY FUND, L.P.
                            Statements of Cash Flows
                  For the Nine Months Ended September 30, 1996
                                    (Unaudited)
                                                           09/30/96

Cash flows from operating activities:
Net income (loss)                                        $  194,000
Adjustments to reconcile net loss to
net cash used in operating activities
     Depreciation and amortization                          494,000
Change in assets and liabilities
     Decrease (increase) in receivables                     134,000
     Decrease (increase) in prepaid insurance               (12,000)
     Decrease (increase) in other assets                          0
     Increase (decrease) in accounts
       payable and accrued expenses                        (175,000)
     Increase (decrease) in amount due to
       general partner                                       78,000

         Total Adjustments                                  519,000 

     Net cash provided by (used in)
       operating activities                                 713,000 

Cash flows from investing activities:
     Purchase of plant and equipment                        (41,000)
     Disposal of plant and equipment                              0

     Net cash provided by (used in)
       investing activities                                 (41,000)

Cash flows from financing activities:
     Payment of principal on long-term debt                (687,000)
     Issuance of Long-term debt                                   0 

     Net cash provided by (used in)
       financing activities                                (687,000)
 
Increase (decrease) in cash                                 (15,000)
Cash at beginning of period                               1,289,000 

Cash and Cash Equivalents
  at the end of the period                               $1,274,000 

Supplemental disclosures of cash flow information:

  Cash paid during the period of interest                $  411,000 


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




                        Far West Electric Energy Fund, L.P.
                               September 30, 1996
                           Notes to Financial Statements


   1.Interim Reporting 

     The accompanying unaudited financial statements have been
     prepared in accordance with generally accepted accounting
     principles and with Form 10-QSB requirements.  Accordingly,
     they do not include all of the information and footnotes
     required by generally accepted accounting principles for
     complete financial statements.  In the opinion of
     management, all adjustments considered necessary for a fair
     presentation have been included.  Operating results for the
     nine month period ended September 30, 1996, are not
     necessarily indicative of the results that may be expected
     for the year ended December 31, 1996.  For further
     information, refer to the financial statements and footnotes
     thereto included in the Partnership's annual report on Form
     10-K for the year ended December 31, 1995.

   2.Related Party Transactions 

     Under the terms of the Partnership Agreement, the General
     Partner is allowed reimbursements of expenses incurred to
     manage the Partnership.  For the nine month periods ended
     September 30, 1995 and 1996, the Partnership accrued, but
     did not pay, fees and reimbursements to the general partner
     of $95,000 and $78,000 respectively.

   3.Long-term Debt

     In January 1990, the Partnership received the proceeds of an
     $8,000,000 non-recourse refinancing of its Steamboat Springs
     Project ("Project" or "Steamboat Springs Plant") with
     Westinghouse Credit Corporation ("WCC").  The WCC loan,
     which is secured by the Project assets including the
     resource lease, plant and equipment and related contract
     rights, bears interest at 11.5% per annum and must be repaid
     over ten years in 40 quarterly payments of principal and
     interest.  This loan is currently in default, primarily
     because the loan reserves have not been maintained at
     required levels.

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

     Overall electric power sales increased about 8% this
     past quarter as compared to the third quarter of 1995.  This
     increase was due primarily to increased geothermal brine
     flows to the plant originating from a test well located on a
     lease adjacent to the lease on which the plant is located. 
     Whether the plant will continue to receive those flows in
     the future is unknown at this time.  Maintenance and repair
     costs this past quarter were about 21% lower than those of
     the third quarter of 1995, due to prior plant upgrades.

     The Steamboat Springs Plant is in compliance with
     environmental and regulatory agencies.


                            PART II - OTHER INFORMATION


 Item 1.Legal Proceedings

     There have been no material changes in the status of legal
proceedings since the Partnership's report on Form 10-Q dated
June 30, 1995.

 Item 5.Other Information

     In a report dated September 4, 1993 the General Partner
reported to the Limited Partners on its efforts to restructure
the business of the Partnership so as to be able to resume
distributions to the Limited Partners.  In summary the General
Partner concluded that the Partnership would be unable to
generate significant positive cash flow or resume distributions
without the infusion of cash sufficient to make capital
improvements in the Steamboat Springs Plant and/or buy out the
Westinghouse loan and certain royalty interests at a discount. 
The Partnership does not have the financial resources to
accomplish these goals.  At present and in the foreseeable future
the Partnership is generating taxable income without any cash
distributions to pay the tax liabilities.  Therefore, it appeared
to the General Partner that it may be advantageous to the
Partnership to consider a sale of all the Partnership assets.

     The General Partner has reported to the Limited Partners
that it subsequently executed a contract on behalf of the
Partnership with U.S. Envirosystems, Inc. (a Delaware
corporation) to sell substantially all assets of the Partnership,
including the Steamboat Springs Power Plant.  The sale was
approved by the Limited Partners.  Sale Documents are currently
being prepared.


     On August 20, 1996, Robison, Hill & Co., the registrant's
independent public accountants, issued its certificate
summarizing the voting by limited partners on the transaction
proposed by the Consent Solicitation mailed to partners on July
23, 1996.  The certificate contains the following information:

       Total outstanding Units:10,306.00
       Total Units participating by vote: 5,675.00
       Percentage of Units participating by vote:    55.07
       Units approving the Proposed Transaction: 5,083.50
       Units disapproving the Proposed Transaction:   361.00
       Units abstaining:   230.50
       Illegible ballots:    35.00
       Percentage approval by Units voted:    89.58

     Accordingly, upon completion of the conditions of the
purchase agreement by purchaser, the registrant will proceed with
the sale of substantially all its assets, distribution of net
proceeds to the limited partners, and termination of the
partnership, as described in the Consent Solicitation.

     This transaction has been delayed pending U.S.
Envirosystems, Inc. raising the necessary funds.  The General
Partner believes that this transaction will either close or fail
within 30 days.

 Item 6.Exhibits and Reports on Form 8-K

     The Partnership filed a report on Form 8-K dated August 21,
1996.



                                   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 duly authorized persons.


              Registrant:  Far West Electric Energy Fund, L.P.

                         By:  Far West Capital, Inc.,
                      General Partner



DATE:    November 14, 1996    By:  /s/                           
                                   Ronald E. Burch
                                   President



DATE:    November 14, 1996    By:   /s/                         
                                    Jody Rolfson
                                    Controller