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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

                     OF THE SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended September 30, 2000

                         Commission File Number 33-83618

                          SELKIRK COGEN PARTNERS, L.P.
       (Exact name of Registrant (Guarantor) as specified in its charter)

              Delaware                                  51-0324332
(State or other jurisdiction of                       (IRS Employer
incorporation or organization)                     Identification No.)


                        SELKIRK COGEN FUNDING CORPORATION
             (Exact name of Registrant as specified in its charter)

               Delaware                                 51-0354675
(State or other jurisdiction of                       (IRS Employer
incorporation or organization)                     Identification No.)


                 One Bowdoin Square, Boston, Massachusetts 02114
          (Address of principal executive offices, including zip code)

                                 (617) 788-3000
              (Registrant's telephone number, including area code)


     SECURITIES REGISTERED PURSUANT TO SECTION 12 (b) OR 12 (g) OF THE ACT:
                                      None

         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 __

         As of  November  13,  2000,  there  were 10 shares  of common  stock of
Selkirk Cogen Funding Corporation, $1 par value outstanding.

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<PAGE>


                                TABLE OF CONTENTS

                                                                           Page
                                                                           ----

                          PART I. FINANCIAL INFORMATION

Item 1.     Financial Statements (unaudited)

            Condensed Consolidated Balance Sheets as of September 30,
            2000 and December 31, 1999...............................        3

            Condensed Consolidated Statements of Operations for the
            three and nine months ended September 30, 2000 and 1999..        4

            Condensed Consolidated Statements of Cash Flows for the
            three and nine months ended September 30, 2000 and 1999..        5

            Notes to Condensed Consolidated Financial Statements.....        6

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

            Results of Operations....................................        8

            Liquidity and Capital Resources..........................       11

Item 3.     Quantitative and Qualitative Disclosures About
            Market Risk..............................................       13


                           PART II. OTHER INFORMATION

Item 6.     Exhibits and Reports on Form 8-K.........................       15

SIGNATURES...........................................................       16


                                       2
<PAGE>
<TABLE>
<CAPTION>
                                              SELKIRK COGEN PARTNERS, L.P.
                                         CONDENSED CONSOLIDATED BALANCE SHEETS
                                                     (in thousands)



<S>                                                                                  <C>                <C>
                                                                                       (unaudited)
                                                                                      September 30,      December 31,
                                                                                          2000               1999
ASSETS                                                                                -------------      ------------
------
Current assets:
    Cash and cash equivalents..................................................       $    1,748         $    1,732
    Restricted funds.       ...................................................           28,372              5,516
    Accounts receivable, net...................................................           18,868             15,505
    Due from affiliates........................................................              934                427
    Fuel inventory and supplies................................................            6,771              6,831
    Other current assets.......................................................              452                195
                                                                                      ----------         ----------
          Total current assets.................................................           57,145             30,206

Plant and equipment, net.......................................................          288,379            297,034
Long-term restricted funds.....................................................           28,003             30,217
Deferred financing charges, net................................................            8,785              9,630
                                                                                      ----------         ----------
                 Total assets                                                         $  382,312         $  367,087
                                                                                      ==========         ==========

LIABILITIES AND PARTNERS' DEFICITS
----------------------------------

Current liabilities:
    Accounts payable............................................................      $      129         $    2,126
    Accrued bond interest payable...............................................           8,736                375
    Accrued expenses............................................................          14,906             11,389
    Due to affiliates...........................................................             673                469
    Current portion of long-term bonds..........................................          10,296              7,307
                                                                                      ----------         ----------
          Total current liabilities.............................................          34,740             21,666

Long-term liabilities:
    Deferred revenue............................................................           5,461              5,981
    Other long-term liabilities.................................................          10,770             16,446
    Long-term bonds, net of current portion.....................................         367,816            373,826
                                                                                      ----------         ----------
          Total liabilities.....................................................         418,787            417,919

Partners' deficits:
    General partners' deficits..................................................           (353)               (497)
    Limited partners' deficits..................................................        (36,122)            (50,335)
                                                                                      ----------         ----------
          Total partners' deficits..............................................        (36,475)            (50,832)
                                                                                      ----------         ----------
                            Total liabilities and partners' deficits                 $  382,312          $  367,087
                                                                                      ==========         ==========
</TABLE>

See notes to condensed consolidated financial statements.


                                       3
<PAGE>
<TABLE>
<CAPTION>
                                               SELKIRK COGEN PARTNERS, L.P.
                                      CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                                      (in thousands)
                                                        (unaudited)

                                                           For the Three Months Ended         For the Nine Months Ended
                                                      ---------------------------------    ---------------------------------
<S>                                                   <C>               <C>                <C>               <C>
                                                        September 30,     September 30,     September 30,    September 30,
                                                           2000              1999               2000              1999
                                                      --------------    --------------     --------------   ----------------
     Operating revenues:
       Electric and steam..........................   $    55,070        $   45,564         $  147,810        $   124,484
       Gas resale..................................         1,111               939              9,146              5,306
                                                      --------------    --------------     --------------   ----------------
            Total operating revenues...............        56,181            46,503            156,956            129,790
     Cost of revenues..............................        37,149            29,299            103,778             84,186
                                                      --------------    --------------     --------------   ----------------
     Gross profit..................................        19,032            17,204             53,178             45,604

     Other operating expenses:
       Administrative services, affiliates.........           409               563              1,762              1,321
       Other general and administrative............           552               323              1,594              1,205
       Amortization of deferred financing charges..           283               287                854                865
                                                      --------------    --------------     --------------   ----------------
            Total other operating expenses.........         1,244             1,173              4,210              3,391
                                                      --------------    --------------     --------------   ----------------

     Operating income..............................        17,788            16,031             48,968             42,213

     Interest (income) expense:
       Interest income.............................          (755)             (549)            (2,223)            (1,629)
       Interest expense                                     8,864             8,492             25,720             25,555
                                                      --------------    --------------     --------------   ----------------
            Total interest expense, net...........          8,109             7,943             23,497             23,926
                                                      --------------    --------------     --------------   ----------------

     Income before cumulative effect of a
       change in accounting principle..............   $     9,679        $    8,088         $   25,471      $      18,287
                                                      ==============    ==============     ==============    ===============

     Cumulative effect of a change in
       accounting principle........................           ---               ---              7,866                ---
                                                      --------------    --------------     --------------   ----------------

     Net income....................................   $     9,679        $    8,088           $ 33,337         $   18,287
                                                      ==============    ==============     ==============    ===============

     Net income allocation:
       General partners............................   $        97        $       81           $    334          $     183
       Limited partners............................         9,582             8,007             33,003             18,104
                                                      --------------    --------------     --------------   ----------------
            Total..................................   $     9,679         $   8,088           $ 33,337          $  18,287
                                                      ==============    ==============     ==============    ===============

</TABLE>

See notes to condensed consolidated financial statements.


                                       4
<PAGE>
<TABLE>
<CAPTION>
                                                 SELKIRK COGEN PARTNERS, L.P.
                                        CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                        (in thousands)
                                                          (unaudited)



                                                                For the Three Months Ended         For the Nine Months Ended
                                                             ----------------------------------  -------------------------------
<S>                                                          <C>               <C>               <C>             <C>
                                                              September 30,     September 30,    September 30,   September 30,
                                                                  2000              1999             2000            1999
                                                             ---------------  -----------------  --------------- ---------------
Net cash provided by operating activities.............        $    23,279        $  20,387         $ 45,581     $   35,777

Cash flows from investing activities:
    Plant and equipment additions.....................                (72)             ---             (729)         (310)
    Plant and equipment disposals.....................                 15              ---               15           ---
                                                             ---------------  ----------------- --------------- ----------------

         Net cash used in investing activities........                (57)             ---             (714)         (310)

Cash flows from financing activities:
    Restricted funds..................................            (22,850)         (19,910)         (22,850)      (19,910)
    Distributions to partners.........................                ---             (970)         (18,980)      (14,204)
    Repayment of long-term debt.......................                ---              ---           (3,021)       (2,023)
                                                             ---------------  ----------------- --------------- ----------------
         Net cash used in financing activities........            (22,850)         (20,880)         (44,851)      (36,137)

Net increase (decrease) in cash and cash equivalents..                372             (493)              16          (670)
Cash and cash equivalents, beginning of period........              1,376            1,662            1,732        18,839
                                                             ---------------  ----------------- --------------- ----------------
Cash and cash equivalents, end of period..............       $      1,748      $     1,169       $    1,748     $   1,169
                                                             ===============  ================= =============== ================
Supplemental cash flow information:

    Cash paid for interest............................       $       ---               ---        $   16,859    $  17,067
                                                             ===============  ================= =============== ================


</TABLE>

See notes to condensed consolidated financial statements.


                                       5
<PAGE>


                          SELKIRK COGEN PARTNERS, L.P.

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)

Note 1. Basis of Presentation

The accompanying  unaudited condensed  consolidated financial statements include
Selkirk Cogen  Partners,  L.P. and its  wholly-owned  subsidiary,  Selkirk Cogen
Funding   Corporation,   (collectively  the   "Partnership").   All  significant
intercompany accounts and transactions have been eliminated.

The  condensed   consolidated  financial  statements  for  the  interim  periods
presented  are  unaudited  and have  been  prepared  pursuant  to the  rules and
regulations of the Securities and Exchange Commission. The information furnished
in the condensed consolidated financial statements reflects all normal recurring
adjustments  which,  in the  opinion of  management,  are  necessary  for a fair
presentation  of such financial  statements.  Certain  information  and footnote
disclosures  normally  included in financial  statements  prepared in accordance
with generally  accepted  accounting  principles  have been condensed or omitted
pursuant to rules and regulations applicable to interim financial statements.

These condensed  consolidated financial statements should be read in conjunction
with the audited consolidated financial statements included in the Partnership's
December 31, 1999 Annual Report on Form 10-K.

Note 2. Cumulative Effect of a Change in Accounting Principle

Effective January 1, 2000, the Partnership  changed its method of accounting for
major  maintenance  and overhaul costs.  Beginning  January 1, 2000, the cost of
major maintenance and overhauls has been accounted for as incurred.  Previously,
the estimated cost of major  maintenance and overhauls was accrued in advance in
a systematic and rational  manner over the period between major  maintenance and
overhauls.   The  change  resulted  in  the  Partnership   recording  income  of
approximately  $7.9 million,  reflecting the cumulative  effect of the change in
accounting  principle.  The effect on results of operations  for the nine months
ended  September 30, 2000 was  immaterial and the pro forma effect on results of
operations for the nine months ended September 30, 1999 was immaterial.

                                       6
<PAGE>

Note 3. New Accounting Pronouncements

In June 1998,  the  Financial  Accounting  Standards  Board issued  Statement of
Financial  Accounting  Standards  ("SFAS") No. 133,  "Accounting  for Derivative
Instruments  and Hedging  Activities" (as amended by SFAS No. 137). SFAS No. 133
establishes  accounting  and  reporting  standards for  derivative  instruments,
including certain derivative  instruments  embedded in other contracts,  and for
hedging activities. SFAS No. 133 is effective for the Partnership's fiscal years
beginning on January 1, 2001.  Management has not completed an evaluation of the
impact on the Partnership's  consolidated  financial statements of adopting this
new standard.

In December  of 1999,  the  Securities  and  Exchange  Commission  issued  Staff
Accounting  Bulletin No. 101,  "Revenue  Recognition  in Financial  Statements."
("SAB 101").  SAB 101 provides  guidance on the  recognition,  presentation  and
disclosure of revenue in financial  statements  and it will be effective  during
the fourth quarter of fiscal year 2001. Management continues to evaluate SAB 101
and it has not determined what impact, if any, will result from its adoption.

Note 4. Subsequent Event

On November 8, 2000, the Partnership  signed a Consent to Field Audit Adjustment
in  settlement  of a gas  import  tax  audit  conducted  by the New  York  State
Department of Taxation and Finance.  The audit  covered all gas import  activity
beginning  March 1, 1992 through August 31, 2000. This audit resulted in a total
assessment  of  approximately  $1.5  million,  comprised of  approximately  $1.0
million of additional tax liability and approximately  $0.5 million of interest.
As of September 30, 2000, the  Partnership  had accrued  reserves  totaling $1.5
million as an estimate of this contingent liability.





                                       7
<PAGE>


ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
          CONDITION AND RESULTS OF OPERATIONS
          ------------------------------------------------------------

Results of Operations
---------------------

Three and Nine Months Ended September 30, 2000 Compared to the Three and
Nine Months Ended September 30, 1999
------------------------------------------------------------------------

Net income for the  quarter  ended  September  30, 2000 was  approximately  $9.7
million as compared to approximately  $8.1 million for the corresponding  period
in the prior year.  The $1.6 million  increase in net income is primarily due to
higher  electric  revenues and lower  operating and  maintenance  expenses.  Net
income for the nine months  ended  September  30, 2000 was  approximately  $33.3
million as compared to approximately $18.3 million for the corresponding  period
in the prior year. The $15.0 million  increase in net income is primarily due to
higher  operating  revenues,  lower operating and  maintenance  expenses and the
Partnership changing its method of accounting for major maintenance and overhaul
costs.

Effective January 1, 2000, the Partnership  changed its method of accounting for
major  maintenance  and overhaul costs.  Beginning  January 1, 2000, the cost of
major maintenance and overhauls has been accounted for as incurred.  Previously,
the estimated cost of major  maintenance and overhauls was accrued in advance in
a systematic and rational  manner over the period between major  maintenance and
overhauls.   The  change  resulted  in  the  Partnership   recording  income  of
approximately  $7.9 million,  reflecting the cumulative  effect of the change in
accounting  principle.  The effect on results of operations  for the quarter and
nine  months  ended  September  30,  2000  was  a  reduction  of  operating  and
maintenance   expenses  of   approximately   $0.5  million  and  $1.4   million,
respectively.

Total  operating  revenues for the quarter ended and nine months ended September
30, 2000 were  approximately  $56.2  million  and $157.0  million as compared to
approximately $46.5 million and $129.8 million for the corresponding  periods in
the prior year.

Electric Revenues (dollars and kWh's in millions):
-------------------------------------------------
<TABLE>
<CAPTION>

                                                     For the Three Months Ended
                                   September 30, 2000                     September 30, 1999
                          ------------------------------------     -------------------------------------
<S>                       <C>       <C>     <C>       <C>          <C>      <C>      <C>        <C>
                          Dollars   kWh's   Capacity  Dispatch     Dollars   kWh's   Capacity   Dispatch
                          -------   -----   --------  --------     -------   -----   --------   --------
Unit 1                     16.6     153.3     86.89%    97.60%       12.4    144.4    84.19%     99.28%
Unit 2                     38.3     541.7     92.59%   100.00%       33.3    539.4    92.20%     96.65%
</TABLE>

<TABLE>
<CAPTION>

                                                  For the Nine Months Ended
                                     September 30, 2000                      September 30, 1999
                          ------------------------------------     -------------------------------------
<S>                       <C>       <C>     <C>       <C>          <C>      <C>      <C>        <C>
                          Dollars   kWh's   Capacity  Dispatch     Dollars   kWh's   Capacity   Dispatch
                          -------   -----   --------  --------     -------   -----   --------   --------
Unit 1                     39.5     442.5     85.11%    94.22%      32.2     423.0     82.84%    96.64%
Unit 2                    106.5   1,404.2     80.58%    91.89%      91.9   1,402.5     80.78%    86.40%


</TABLE>

                                       8
<PAGE>

Unit 1 revenues  increased  approximately  $4.2 million and $7.3 million for the
quarter  and  nine  months  ended   September   30,  2000  as  compared  to  the
corresponding  periods in the prior  year.  During the  quarter  and nine months
ended  September  30,  2000  revenues  from  Niagara  Mohawk  Power  Corporation
("Niagara  Mohawk")  were   approximately   $13.8  million  and  $32.2  million,
respectively,  and revenues from PG&E Energy Trading - Power, L.P. ("PG&E Energy
Trading") were approximately $2.8 million and $7.3 million, respectively. During
the quarter and nine months  ended  September  30, 1999  revenues  from  Niagara
Mohawk were  approximately  $9.3 million and $27.5  million,  respectively,  and
revenues  from PG&E Energy  Trading  were  approximately  $3.1  million and $4.7
million,  respectively. The increase in Unit 1 revenues for the quarter and nine
months  ended  September  30, 2000 was  primarily  due to higher  market  energy
prices.  During the nine months  ended  September  30,  2000 and 1999,  with the
exception of the month of April in each period, the Partnership received Monthly
Contract  Payments and delivered energy up to the monthly  contract  quantity to
Niagara Mohawk ("Contract  Energy").  During the nine months ended September 30,
2000,  Contract  Energy was sold at market  prices  established  by the New York
Independent  System Operator  whereas,  during the  corresponding  period in the
prior year,  Contract Energy was sold at a proxy market price based upon Niagara
Mohawk's tariff for power purchases from Qualifying Facilities.  During the nine
months ended  September 30, 2000,  with the  exception of January,  February and
March,  the  Partnership  sold all of the energy produced by Unit 1 in excess of
the Contract Energy ("Unit 1 Excess Energy") to PG&E Energy Trading.  During the
months of January and March 2000 the  Partnership  sold the Unit 1 Excess Energy
to both Niagara  Mohawk and PG&E Energy Trading and during the month of February
2000 the  Partnership  sold all of the Unit 1 Excess  Energy to Niagara  Mohawk.
During the month of January 1999 the  Partnership  sold all of the Unit 1 Excess
Energy to  Niagara  Mohawk.  During  the  months of  February,  March,  June and
September  1999 the  Partnership  sold all of the Unit 1 Excess  Energy  to PG&E
Energy  Trading.  During the  months of April,  May,  July and  August  1999 the
Partnership  sold Unit 1 Excess  Energy to both  Niagara  Mohawk and PG&E Energy
Trading.  Unit 1 Excess  Energy  delivered  to Niagara  Mohawk  and PG&E  Energy
Trading was sold at negotiated  market prices.  Amortized  deferred  revenues of
approximately $0.5 million are also included in revenues from Niagara Mohawk for
each of the nine months ended September 30, 2000 and 1999.

Unit 2 revenues  increased  approximately $5.0 million and $14.6 million for the
quarter  and  nine  months  ended   September   30,  2000  as  compared  to  the
corresponding  periods in the prior  year.  During the  quarter  and nine months
ended  September  30,  2000 all of the Unit 2  revenues  were from  Consolidated
Edison  Company of New York,  Inc. ("Con  Edison").  During the quarter and nine
months ended September 30, 1999, revenues from Con Edison were $33.3 million and
$91.6  million,  respectively,  and  revenues  from  PG&E  Energy  Trading  were
approximately $0.0 million and $0.3 million,  respectively. The increase in Unit
2  revenues  for the  quarter  and nine  months  ended  September  30,  2000 was
primarily  due to the increase in the Con Edison  contract  price for  delivered
energy  resulting  from higher index fuel  prices.  During the nine months ended
September 30, 1999,  revenues from PG&E Energy Trading resulted from the sale of
other energy-related products.

                                       9

<PAGE>

Steam  revenues  for the  quarter and nine months  ended  September  30, 2000 of
approximately  $0.2  million  and $1.8  million  were  reduced  by a reserve  of
approximately $1.3 thousand and $47.6 thousand, respectively. Steam revenues for
the quarter and nine  months  ended  September  30, 1999 of  approximately  $0.0
million and $0.6 million were reduced by a reserve of approximately $0.1 million
and $0.2 million to reflect the  estimated  annual  true-up.  The reserves  were
recorded to reflect the estimated  annual true-up so that General Electric would
be charged a nominal  amount which is the annual  equivalent of 160,000  lbs/hr.
Delivered  steam for the quarter and nine months  ended  September  30, 2000 was
approximately  382.8 million  pounds and 1,343.1  million  pounds as compared to
approximately   313.6  million  pounds  and  1,126.8   million  pounds  for  the
corresponding  periods in the prior year. The increase in steam revenues for the
quarter and nine  months  ended  September  30,  2000 was  primarily  due to the
increase in the General  Electric  contract price for delivered  steam resulting
from higher index fuel prices.

Gas resale revenues for the quarter ended September 30, 2000 were  approximately
$1.1  million on sales of  approximately  0.2  million  MMBtu's as  compared  to
approximately $0.9 million on sales of approximately 0.3 million MMBtu's for the
corresponding  period in the prior year. Gas resale revenues for the nine months
ended  September  30,  2000  were   approximately   $9.1  million  on  sales  of
approximately  2.4 million MMBtu's as compared to approximately  $5.3 million on
sales of approximately 2.3 million MMBtu's for the  corresponding  period in the
prior year. The increase in gas resale  revenues for the quarter and nine months
ended  September 30, 2000 was primarily due to higher natural gas resale prices.
The increase in natural gas resale prices during the nine months ended September
30, 2000  generally  resulted from higher market pricing for both gas and oil as
well as increased  demand for electric  generation.  Gas resales occurred during
periods when Units 1 and 2 were not operating at full capacity.

Cost of revenues for the quarter  ended  September  30, 2000 were  approximately
$37.1 million on gas purchases of approximately  7.1 million MMBtu's as compared
to $29.3 million on gas purchases of approximately  the same number of units for
the corresponding period in the prior year. Cost of revenues for the nine months
ended September 30, 2000 were  approximately  $103.8 million on gas purchases of
approximately 21.3 million MMBtu's as compared to $84.2 million on gas purchases
of approximately 21.0 million MMBtu's for the corresponding  period in the prior
year.  The largest  component  of the  increase  for the quarter and nine months
ended  September 30, 2000 was fuel costs,  which  increased  approximately  $8.2
million  and $21.5  million  from the  corresponding  periods in the prior year,
respectively.  The increase in the cost of fuel was  primarily due to the higher
price of gas under the firm fuel supply  agreements,  higher  demand costs under
the firm fuel  transportation  agreements  and the recording of a reserve in the
amount of  approximately  $1.0 million  during the quarter to recognize  the tax
associated  with the  settlement  of a gas  import  tax audit (see Note 4 to the
unaudited financial statements). The increase in fuel costs was partially offset
by lower  operating  and  maintenance  expenses.  The decrease in operating  and
maintenance  expenses was  primarily  due to  differences  in the  scheduling of
planned maintenance and the elimination of the accrual for major maintenance and
overhaul costs.  The

                                       10
<PAGE>

Partnership  has  foreign  currency  swap  agreements  to hedge  against  future
exchange  rate  fluctuations  under  fuel  transportation  agreements  which are
denominated in Canadian dollars. During the nine months ended September 30, 2000
and 1999, fuel costs were increased by approximately $1.8 million as a result of
the currency swap agreements.

Total other  operating  expenses for the quarter and nine months ended September
30,  2000 were  approximately  $1.2  million  and $4.2  million as  compared  to
approximately $1.2 million and $3.4 million for the corresponding periods in the
prior year. The increase in other  operating  expenses for the nine months ended
September 30, 2000 was primarily due to higher affiliate administrative services
and higher other general and administrative  expenses.  Additionally,  affiliate
administrative services during the quarter ended March 31, 1999, were reduced by
the write-off of a reserve of  approximately  $0.2 million for amounts no longer
claimed by an affiliate.

Net interest  expense for the quarter and nine months ended  September  30, 2000
was  approximately  $8.1 million and $23.5 million as compared to  approximately
$7.9 million and $23.9 million for the corresponding  periods in the prior year.
The increase in net interest  expense for the quarter  ended  September 30, 2000
was due to the  recording  of a  reserve  in the  amount of  approximately  $0.5
million to recognize the interest associated with the settlement of a gas import
tax audit (see Note 4 to unaudited  financial  statements).  The decrease in net
interest  expense for the nine months ended September 30, 2000 was due to higher
interest income partially offset by higher interest expense  associated with the
settlement  of a gas  import tax audit  (see Note 4 to the  unaudited  financial
statements).

Liquidity and Capital Resources

Net cash provided by operating  activities  for the quarter ended  September 30,
2000 was approximately  $23.3 million as compared to approximately $20.4 million
for the  corresponding  period in the prior  year.  Net cash flows  provided  by
operating   activities  for  the  nine  months  ended  September  30,  2000  was
approximately  $45.6 million as compared to approximately  $35.8 million for the
corresponding  period  in  the  prior  year.  Net  cash  provided  by  operating
activities  primarily  represents  net income  plus the net effect of  recurring
changes in cash receipts and disbursements  within the  Partnership's  operating
assets and liability accounts.

Net cash used in investing  activities for the quarter ended  September 30, 2000
was approximately  $57.0 thousand as compared to approximately $0.0 thousand for
the  corresponding  period  in the  prior  year.  Net  cash  used  in  investing
activities for the nine months ended September 30, 2000 was approximately $714.0
thousand as compared to  approximately  $310.0  thousand  for the  corresponding
period  in the  prior  year.  Net cash used in  investing  activities  primarily
represents additions to plant and equipment.

Net cash used in financing  activities for the quarter ended  September 30, 2000
was approximately  $22.9 million as compared to approximately  $20.9 million for
the

                                       11
<PAGE>

corresponding  period in the prior year.  Net cash used in financing  activities
for the nine months ended September 30, 2000 was approximately  $44.9 million as
compared to  approximately  $36.1  million for the  corresponding  period in the
prior  year.  The  increase  in net cash used in  financing  activities  for the
quarter and nine months ended  September 30, 2000 was primarily due to more cash
becoming  available  to  deposit  into  restricted  funds,  more  cash  becoming
available to  distribute  to the  Partners  and the increase in the  semi-annual
payment of principal on long-term debt.

In 1994 and 1995 Con Edison  claimed the right to acquire  that  portion of Unit
2's firm  natural  gas  supply  not used in  operating  Unit 2,  when  Unit 2 is
dispatched  off-line  or at less  than full  capability  ("non-plant  gas"),  or
alternatively  to be compensated  for 100% of the margins derived from non-plant
gas sales. The Con Edison Power Purchase  Agreement contains no express language
granting  Con  Edison any  rights  with  respect  to such  excess  natural  gas.
Nevertheless,  Con Edison argued that, since payments under the contract include
fixed  fuel  charges  which  are  payable  whether  or not Unit 2 is  dispatched
on-line,  Con Edison is  entitled  to  exercise  such  rights.  The  Partnership
vigorously   disputes  the  position  adopted  by  Con  Edison,  and  since  the
commencement  of Unit  2's  operation  in  1994,  the  Partnership  has made and
continues  to make,  from time to time,  non-plant  gas sales  from Unit 2's gas
supply.  Although  representatives  of Con Edison have  expressly  reserved  all
rights  that Con Edison may have to pursue its  asserted  claim with  respect to
non-plant  gas  sales,   the   Partnership   has  received  no  further   formal
communication  from Con  Edison on this  subject  since  1995.  In the event Con
Edison were to pursue its asserted claim, the Partnership would expect to pursue
all available legal remedies,  but there can be no certainty that the outcome of
such  remedial  action would be favorable to the  Partnership  or, if favorable,
would  provide  for  the  Partnership's  full  recovery  of  its  damages.   The
Partnership's  cash flows from the sale of electric  output would be  materially
and  adversely  affected  if Con Edison were to prevail in its claim to Unit 2's
excess natural gas volumes and the related margins.

On July 21, 1998, the New York Public Service  Commission  ("NYPSC")  approved a
plan  submitted by Con Edison for the  divestiture  of certain of its generating
assets (the "Con Edison Divestiture Plan").  Although the Con Edison Divestiture
Plan  does  not  include  any  proposal  by Con  Edison  for the  sale or  other
disposition of its contractual obligations for purchasing power from non-utility
generators,  like the Partnership,  the NYPSC has ordered Con Edison to submit a
report  regarding  the  feasibility  of  divesting  its  non-utility   generator
entitlements.  At this time, the  Partnership  has  insufficient  information to
determine  whether,  in the course of these proceedings at the NYPSC, Con Edison
may seek to  assign  its  rights  and  obligations  under the Con  Edison  Power
Purchase  Agreement with the  Partnership to a third party or to take some other
action for the purpose of  divesting  itself of the power  purchase  obligations
under such contract;  nor can the Partnership evaluate the impact which any such
assignment or other action,  if proposed,  may ultimately have on the Con Edison
Power Purchase Agreement.

Future  operating  results and cash flows from operations are also dependent on,
among other  things,  the  performance  of  equipment;  levels of dispatch;  the
receipt  of certain  capacity  and other  fixed  payments;  electricity  prices;
natural gas resale prices;  and fuel

                                       12
<PAGE>

deliveries and prices. A significant change in any of these factors could have a
material adverse effect on the results of operations for the Partnership.

The Partnership believes, based on current conditions and circumstances, it will
have sufficient cash flows from operations to fund existing debt obligations and
operating costs.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements included herein are forward-looking statements concerning the
Partnership's  operations,  economic performance and financial  condition.  Such
statements are subject to various risks and uncertainties.  Actual results could
differ  materially from those currently  anticipated due to a number of factors,
including  general  business  and  economic   conditions;   the  performance  of
equipment;  levels of dispatch;  the receipt of certain capacity and other fixed
payments;  electricity  prices;  natural gas resale prices;  fuel deliveries and
prices and  whether  Con Edison  were to prevail in its claim to Unit 2's excess
natural gas volumes, and the related margins.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The  Partnership  is exposed to market risk from  changes in interest  rates and
foreign  currency  exchange  rates,  which  could  affect its future  results of
operations  and financial  condition.  The  Partnership  manages its exposure to
these risks through its regular operating and financing activities.

Interest Rates
--------------

The Partnership's  cash and restricted cash are sensitive to changes in interest
rates.  Interest rate changes would result in a change in interest income due to
the difference  between the current  interest rates on cash and restricted  cash
and the  variable  rate that these  financial  instruments  may adjust to in the
future.  A 10% decrease in interest  rates for the quarter and nine months ended
September  30, 2000 would have  resulted in a negative  impact of  approximately
$75.5 thousand and $222.3 thousand, respectively on the Partnership's net income
for that period.

The  Partnership's  long-term  bonds have fixed interest  rates.  Changes in the
current  market  rates for the bonds  would not  result in a change in  interest
expense due to the fixed coupon rate of the bonds.

Foreign Currency Exchange Rates
-------------------------------

The  Partnership's  currency swap agreements  hedge against future exchange rate
fluctuations  which  could  result  in  additional  costs  incurred  under  fuel
transportation  agreements which are denominated in a foreign  currency.  In the
event  a  counterparty

                                       13
<PAGE>

fails to meet the terms of the agreements, the Partnership's exposure is limited
to the currency exchange rate  differential.  During the quarter and nine months
ended September 30, 2000, the currency exchange rate differential  resulted in a
negative impact of approximately $0.6 million and $1.8 million,  respectively on
the Partnership's net income.







                                       14

<PAGE>

                           PART II. OTHER INFORMATION



ITEM 6.      EXHIBITS AND REPORTS ON FORM 8-K
             --------------------------------

(A)          Exhibits

             Exhibit No.            Description
             -----------            -----------

                  27                Financial Data Schedule
                                    (For electronic filing purposes only)


(B)      Reports on Form 8-K

         Not applicable.

Omitted  from this Part II are items  which are not  applicable  or to which the
answer is negative for the periods covered.









                                       15
<PAGE>



                                   SIGNATURES

Pursuant to the  requirements of Section 13 or 15(d) 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.

                                           SELKIRK COGEN PARTNERS, L.P.

                                           JMC SELKIRK, INC.
                                           General Partner

Date:  November 14, 2000                   /s/ JOHN R. COOPER
                                           ----------------------------
                                           Name:    John R. Cooper
                                           Title:   Senior Vice President and
                                                    Chief Financial Officer






                                       16
<PAGE>


                                   SIGNATURES

Pursuant to the  requirements of Section 13 or 15(d) 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.

                                           SELKIRK COGEN FUNDING
                                           CORPORATION

Date:  November 14, 2000                   /s/  JOHN R. COOPER
                                           ---------------------------------
                                           Name:    John R. Cooper
                                           Title:   Senior Vice President and
                                                    and Chief Financial Officer














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