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                                UNITED STATES
                     SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, DC  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 June 30, 1997
                                   
                       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) 227-8080
            (Registrant's telephone number, including area code)

         SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:
                8.65% First Mortgage Bonds Due 2007, Series A
                8.98% First Mortgage Bonds Due 2012, Series A
                              (Title of class)


	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 
												   ---	 ---
	
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             This document consists of 24 pages of which this page is page 1.

<PAGE>		 




                              TABLE OF CONTENTS




										                                                       Page
						                												                               ----
                       PART I.  FINANCIAL INFORMATION


Item 1.	Financial Statements (unaudited)

		Condensed Consolidated Balance Sheets as of June 30, 1997 
		and December 31, 1996.........................................	   3

		Condensed Consolidated Statements of Operations for the three 
		and six months ended June 30, 1997 and June 30, 1996..........	   4

		Condensed Consolidated Statements of Cash Flows for the three 
		and six months ended June 30, 1997 and June 30, 1996.........	   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.........................................	   7


		Liquidity and Capital Resources...............................	   9


                         PART II.  OTHER INFORMATION


Item 6.		Exhibits and Reports on Form 8-K........................      13

SIGNATURES..........................................................	  14







                                      2

<PAGE>








                        
<TABLE>
                        SELKIRK COGEN PARTNERS, L.P.
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                               (in thousands)
              
<CAPTION>							
											      (unaudited)
                       				     			June 30,    December 31, 
						                              1997		     1996
						                           ----------	 -----------
<S>												      <C>	       	<C>
ASSETS		
------										
Current assets:									
  Cash............................................ $    1,056     $    2,591 
  Restricted funds................................	    4,717          6,284
  Accounts receivable.............................     15,920         19,899 
  Due from affiliates.............................         14             40 
  Fuel inventory and supplies.....................	    4,687          4,401
  Other current assets............................	      634	         449
  				                   					---------	   ---------
    	Total current assets......................     27,028         33,664 
										
  Plant and equipment, net........................    327,861        334,229 
  Long-term restricted funds......................     21,605         20,446 
  Deferred financing charges, net.................     12,529         13,115 
                                     				---------	   ---------

				Total Assets		               $  389,023     $  401,454
   			                                    	---------	   ---------
   			                                       	---------	   ---------
LIABILITIES AND PARTNERS' CAPITAL									
---------------------------------										
Current liabilities:									
  Accounts payable................................ $      233 	  $      588 
  Accrued bond interest payable...................	      377 	         385 
  Accrued expenses................................     11,719         16,239 
  Due to affiliates...............................      2,134  	         937 
  Advances from customer..........................        --- 	          17
  Current portion of long-term bonds..............      2,987 	       2,167 
	  					                        	---------	   ---------
	    Total current liabilities................. 	   17,450         20,333 
										
  Other long-term liabilities.....................	   13,101         10,678 
  Long-term bonds, less current portion........... 	  387,372        389,253 
										
  General partners' capital.......................	     (277) 		    (173)
  Limited partners' capital.......................	  (28,623)       (18,637) 
	   											    ---------	   ---------
	    Total partners' capital...................    (28,900)       (18,810) 
											       	---------	   ---------

				Total Liabilities and
					 Partners' Capital             $  389,023     $  401,454 
												    --------- 	   ---------
												    ---------	   ---------
<FN>
See Notes to Condensed Consolidated Financial Statements.									
</TABLE>
                                      3
<PAGE>
				 																							
<TABLE>
                        SELKIRK COGEN PARTNERS, L.P.
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                               (in thousands)
                                 (unaudited)
											
											
<CAPTION>											
						             For the                  For the 																		
                                Three Months Ended	      Six Months Ended	
                              ---------------------	    --------------------

                               June 30,    June 30,	    June 30,   June 30,
                 		        1997         1996		  1997       1996
               	              ---------   ---------	   ---------   ---------
<S>                              <C>        <C>          <C>          <C>
Operating revenues:								   

 Electric and steam.........  $  35,533      35,996     $ 78,054   $  73,709   
 Gas resale.................      5,317       6,113		   6,721      14,805
						      ---------   ---------	   ---------   ---------
    Total operating 
      revenues..............	 40,850      42,109 	  84,775	  88,514
Cost of revenue.............     29,124      29,833		  60,415	  59,666
							  ---------   ---------	   ---------   ---------
Gross Profit................     11,726      12,276 	  24,360	  28,848
						 	 	   			
Other operating expenses:										
 Administrative services -
   affiliates...............	    729         626        1,338       1,180 	
 Other general and 
   administrative expenses..	    574 		758        1,220       1,826 	
 Amortization of deferred
   financing charges........	    293         294 		 586         587 	
							  ---------   ---------	   ---------   ---------
	Total other operating
	  expenses..............      1,596       1,678 	   3,144	   3,593
							  ---------   ---------	   ---------   ---------
				 
Operating income............     10,130      10,598 	  21,216      25,255
											
Net interest expense........      8,144       8,107       16,386      16,489 	 
							  ---------   ---------	   ---------   ---------
Net income..................  $   1,986   $   2,491	   $   4,830   $   8,766
                              ---------   ---------	   ---------   ---------
       						  ---------   ---------	   ---------   ---------


Allocated to:
  General partners..........  $      20	  $      25    $      49   $      88 
  Limited partners..........	  1,966 	  2,466 	   4,781	   8,678
                              ---------   ---------	   ---------   ---------                  
	Total...................  $   1,986   $   2,491    $   4,830   $   8,766	
                              ---------   ---------	   ---------   ---------
       						  ---------   ---------	   ---------   ---------  			    					 						                                     	
<FN>
See Notes to Condensed Consolidated Financial Statements.										
</TABLE>
                                      4
<PAGE>


<TABLE>
                        SELKIRK COGEN PARTNERS, L.P.
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (in thousands)
                                 (unaudited)
												
<CAPTION>												
                                   									 			 
                                     For the                  For the 																		
                                Three Months Ended	      Six Months Ended	
                              ---------------------	    --------------------

                               June 30,    June 30,	    June 30,   June 30,
                 		        1997         1996		  1997       1996
               	              ---------   ---------	   ---------   ---------
<S>                              <C>        <C>          <C>          <C>
										                                    		 
Net cash provided by (used in) 
 operating activities.......  $   (261)   $  3,333	   $  14,021   $  18,552
												
Cash flows provided by 
 (used in) investing 
  activities:											
   Plant and equipment 
    additions...............       	---         (62)          34	    (503)
   Restricted funds.........     16,507		 15,441		     408	   4,663
							  ---------   ---------	   ---------   ---------
  			                                    	   
	Net cash provided by
	  investing activities..     16,507	     15,379	         442       4,160
												
Cash flows provided by 
 (used in) financing 
  activities:											
   Cash distributions.......    (14,920)    (19,384)     (14,920)	 (23,607)
   Payments of principal on
    long-term debt..........     (1,061)	   (284)      (1,061)	    (284)
   Advances from a 
    customer................	    ---     	---          (17)	    (136)
                               ---------   ---------	---------   ---------
    Net cash used in 
      financing activities..    (15,981)    (19,668)	  (15,998)   (24,027)
												
Net increase (decrease)
 in cash....................      	265        (956)       (1,535)    (1,315)
Cash at beginning 
 of period..................        791 	  2,313		    2,591	   2,672
							  ---------   ---------	    ---------  ---------
Cash at end of period.......  $   1,056   $   1,357     $   1,056   $  1,357
                              ---------   ---------	    ---------  ---------
          					  ---------   ---------	    ---------  ---------
   
Supplemental disclosures of 
 cash flow information:										

  Cash paid for interest....  $  17,303   $  17,328    $  17,320   $  17,620   				
  		                       ---------   ---------   ---------   ---------                                 
							   ---------   ---------   ---------   --------- 

<FN>
See Notes to Condensed Consolidated Financial Statements.										
</TABLE>											
											
																				
                                      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
consolidate 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, 1996 Annual Report on Form 10-K.


Note 2. Contingency

In   connection  with  transactions  in  1994  involving  the  investment  by
affiliates of Cogen Technology, Inc.  in  the Partnership and the purchase of
J. Makowski Company, Inc. by Beale Generating Company, the Partnership  filed
New  York  State real estate transfer and gains tax returns with New York tax
authorities.  The New York tax  authorities have raised certain questions and
issues about such tax returns.

Although the New York tax authorities have assessed no additional tax against
the Partnership or any other transferor at this time, the issue currently  is
under consideration and it is possible that the New York tax authorities will
assert  that  additional tax is owed by the Partnership or one or more of the
other transferors in  connection  with  these  transactions.  The Partnership
presently cannot predict the likelihood  of  the  New  York  tax  authorities
making  such  an  assertion  or,  if  made,  the  amount of tax that might be
asserted.


                                      
                                      6
<PAGE>


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

Results of Operations

Three and Six Months Ended June 30, 1997 Compared to the Three and Six Months
Ended June 30, 1996

Net income for the quarter ended June 30, 1997 was approximately $2.0 million
as compared to $2.5 million for the corresponding period in the  prior  year.
Net  income  for  the  six  months ended June 30, 1997 was approximately $4.8
million compared to $8.8 million  for  the  corresponding period in the prior
year.  The decrease in net income for the quarter  ended  June  30,  1997  is
primarily  due  to  a  $0.8  million  decrease  in  gas resale revenues.  The
decrease in net income for the  six  months  ended June 30, 1997 is primarily
due to a $8.1 million decrease in  gas  resale  revenues  offset  by  a  $4.4
million increase in electric revenues.

Total  revenues  for  the  quarter  and  six  months ended June 30, 1997 were
approximately $40.9 million and  $84.8  million  as compared to $42.1 million
and $88.5 for the corresponding periods in the prior year.

Electric Revenues (dollars and kWh's in millions):
-------------------------------------------------

								 For the Three Months Ended
                      June 30, 1997                  June 30, 1996 
			  ------------------------------- -------------------------------
	          Dollars kWh's Capacity Dispatch Dollars kWh's Capacity Dispatch
			  ------- ----- -------- -------- ------- ----- -------- --------
Niagara Mohawk   6.2   27.5   15.74%   18.32%     7.3  74.4   42.64%   43.91%
Con Edison      29.3  418.8   72.36%   81.91%    28.1 352.9   61.00%   80.33%


                                 For the Six Months Ended
                      June 30, 1997                  June 30, 1996	
			  ------------------------------- -------------------------------
	          Dollars kWh's Capacity Dispatch Dollars kWh's Capacity Dispatch
			  ------- ------ ------- -------- ------- ----- -------- --------
Niagara Mohawk   16.2  135.6  53.43%   58.93%    13.9 120.6   34.56%   43.18%
Con Edison       61.7  904.6  78.59%   90.19%    58.1 799.4   69.08%   88.95%


Revenues from Niagara Mohawk Power Corporation ("Niagara  Mohawk")  decreased
approximately  $1.1  million and increased approximately $2.3 million for the
quarter and six months ended June 30, 1997 when compared to the corresponding
periods in the prior year.  For  the  six months ended June 30, 1997, Niagara
Mohawk dispatched the Unit on-line for the months of January, February, March
and June, at full contract rates except  for  the  month  of  March.   Energy
delivered  in March was sold under special dispatch arrangements which called

	                                  7
<PAGE>



for the pricing of  the  delivered  energy  at  variable rates less than full
contract rates.  For the six months  ended  June  30,  1996,  Niagara  Mohawk
dispatched  the  Unit January, February, April, May and June at full contract
rates.  The decrease for the  quarter  and  increase for the six months ended
June 30, 1997 in delivered energy as evidenced  by  the  26.9%  decrease  and
18.87%  increase, respectively, in the corresponding capacity factors was the
primary contributor for the changes in  Niagar a Mohawk revenue.  Revenue for
energy delivered pursuant to the special dispatch  arrangement  with  Niagara
Mohawk  for the six months ended June 30, 1997 was approximately $1.2 million
as compared to $29.3 thousand for the corresponding period in the prior year.

Revenues from Consolidated Edison  Company  of  New York, Inc. ("Con Edison")
for the quarter and six months ended June 30,  1997  increased  approximately
$1.2  million  and $3.6 million when compared to the corresponding periods in
the prior year.  An increase in  delivered  energy as evidenced by the 11.36%
and 9.51% increase in the capacity factors for the  quarter  and  six  months
ended  June  30,  1997 and higher contract energy rates resulting from higher
index fuel prices were the contributing factors to the increase in revenues.

Pursuant  to  the  Steam  Sales  Agreement  General  Electric  may  implement
productivity  or  energy  efficiency projects in its manufacturing processes,
including projects  involving  the  production  of  steam  within the General
Electric plant commencing in  1996.   General  Electric  has  implemented  an
energy  efficiency  project  in  1997  that will reduce the quantity of steam
required by the General Electric plant.  Under the energy efficiency project,
General Electric anticipates  managing  its  annual  average  steam demand at
160,000lbs/hr.  Steam revenues for the six months ended  June  30,  1997  and
June  30,  1996  were  reduced  by an annual true-up of $0.9 million and $0.2
million, respectively, so that  General  Electric  would be charged a nominal
amount which is the annual equivalent of 160,000lbs/hr.  Steam  revenues  for
the  quarter  and  six  months  ended  June 30, 1997 were approximately $80.1
thousand and $172.5 thousand on 322.337 million and 828.680 million pounds of
steam delivered as compared to approximately $566.4 thousand and $1.7 million
on 435.265 million and 1,021.256  million  pounds  of steam delivered for the
corresponding periods in the prior year.   The  decrease  in  steam  revenues
during  the quarter and six months ended June 30, 1997 was due to lower steam
demand and a reduction in fuel prices.

Gas resale revenues for  the  quarter  ended  June 30, 1997 was approximately
$5.3 million on sales of 2.3 million MMBtu's as compared to $6.1  million  on
sales  of 2.4 million MMBtu's for the corresponding period in the prior year.
Gas resale revenues for the six months ended June 30, 1997 were approximately
$6.7 million  on  2.8  million  MMBtu's  as  compared  to approximately $14.8
million on sales of 4.2 million MMBtu's for the corresponding period  in  the
prior  year.   The  $0.8  million  and  $8.1  million  decrease in gas resale
revenues during the quarter and six  months ended June 30, 1997 was primarily

                                      8
<PAGE>


due to lower natural gas resale prices and higher dispatch of Units 1  or  2,
which resulted in lower volumes of natural gas becoming available for resale.
The  decrease  in natural gas resale prices during the quarter and six months
ended June 30, 1997 generally resulted from more moderate temperatures in the
Northeast region as compared  to  the  colder than normal temperatures, which
caused an increase in the demand for na tural gas and resulted in lower  than
normal  gas storage levels during the corresponding period in the prior year.
The Partnership enters into gas resales during periods when Units 1 and 2 are
not operating at full capacity.

Cost of revenues for the  quarter  and  six  months  ended June 30, 1997 were
approximately $29.1 million and $60.4 million on  purchases  of  7.1  million
MMBtu's  and  14.0 million MMBtu's as compared to approximately $29.8 million
and $ 59.7 million  on  purchases  of  7.1  million  MMBtu's and 14.2 million
MMBtu's for the corresponding  periods  in  the  prior  year.   The  cost  of
revenues  and MMBtu's purchases for the quarter and six months ended June 30,
1997 are comparable to the corresponding periods in the prior year.

Total other operating expenses for the  quarter and six months ended June 30,
1997 were  approximately  $1.6  million  and  $3.1  million  as  compared  to
approximately  $1.7 million and $3.6 million for the corresponding periods in
the prior year.  The decrease in other operating expenses is primarily due to
a decrease in other general and administrative expenses.

Net interest expense for the quarter  and  six  months ended June 30, 1997 of
approximately  $8.1  million  and  $16.4  million  are  comparable   to   the
corresponding periods in the prior year.


Liquidity and Capital Resources

Net  cash flows provided by operating activities decreased from approximately
$3.3 million and $18.6 million for the  quarter and six months ended June 30,
1996 to approximately ($0.3) thousand and $14.0 million for the  quarter  and
six  months  ended June 30, 1997.  The decrease in net cash flows provided by
operating activities is  due  to  the  decrease  in  net  income and normally
recurring cash receipts and disbursements within the Partnership's  operating
asset and liability accounts during the quarter and six months ended June 30,
1997.

Net  cash  flows  used in investing activities for the quarter and six months
ended June 30, 1997  were  approximately  $16.5  million and $0.4 thousand as
compared  to  approximately  $15.4  million  and   $4.2   million   for   the
corresponding  periods  in  the prior year.  Net cash flows used in investing
activities represent monies deposited  into  or  withdrawn from funds created
pursuant  to  the  Partnership's  Depositary  and   Disbursement   Agreement,
administered  by  Bankers  Trust  Company, as depositary agent (the "Funds").
Monies deposited into the Funds for  the  six  months ended June 30, 1997 and

                                      9
<PAGE>


1996 primarily represent monies set aside for interest and principal payments
to Bondholders scheduled for June 26 of each year and Partner  distributions.
Monies  withdrawn from the Funds for the three months ended June 30, 1997 and
1996 represent  the  payment  of  interest  and  principal  on  the Bonds and
distributions to Partners.

Net cash flows used in  financing  activities  decreased  from  approximately
$19.7  million  for  the  quarter  ended June 30, 1996 to approximately $16.0
million for the quarter ended June  30,  1997.  Net cash flows decreased from
approximately $24.0 million for  the  six  months  ended  June  30,  1996  to
approximately  $16.0  million  for  the  six months ended June 30, 1997.  The
decrease in net cash flows for the quarter and six months ended June 30, 1997
is primarily due to a decrease in distributions to Partners.

Con Edison by a letter dated September 19, 1994 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.  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 has 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  take  delivery  of  any  excess  natural  gas.  The
Partnership vigorously disputes the position adopted  by  Con  Edison,  based
notably  on the absence of any contractual provision according Con Edison the
claimed rights but also on the fact that the Partnership has assumed the risk
under the Con Edison Power  Purchase  Agreement that the fuel charges payable
by Con Edison are insufficient to cover the costs actually  incurred  by  the
Partnership.  By  a  letter  dated  May  23,1995,  Con  Edison  indicated its
intention to pursue the claim asserted in the September 19, 1994 letter.   In
the  May  23, 1995 letter, Con Edison reserved the right to claim 100% of the
margins derived from the sales of  Unit  2's firm natural gas supply not used
in operating Unit 2 (non-plant gas sales) and requested that the  Partnership
reduce the monthly amount invoiced to Con Edison by 50% of a calculated value
of  the  non-plant  gas  sales.   The Partnership strenuously objected to Con
Edison's contentions  and,  at  a  meeting  between  the  Partnership and Con
Edison, Con Edison agreed to continue not to deduct any  amount  attributable
to non-plant gas sales from payments made upon monthly invoices but stated it
would  do  so under protest, pending further discussions between the parties.
Since the commencement of  commercial  operations  of Unit 2, the Partnership
made and continues to make, from time to time, excess gas lay-off sales  from
Unit  2's  gas supply.  The Partnership does not intend to adjust the monthly
inv oices issued to Con Edison and continues to assert that Con Edison is not
entitled to any revenues or margins derived from non-plant gas sales.  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.

									  10
<PAGE>


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  October 6, 1995, Niagara Mohawk filed its "PowerChoice" proposal with the
New York State Public  Service  Commission  ("NYPSC").   On October 12, 1995,
Niagara Mohawk filed a Report on Form 8-K with the  Securities  and  Exchange
Commission  (the  "Commission")  explaining  the  PowerChoice  proposal  (the
"PowerChoice  Statement").   In  the  PowerChoice  Statement,  Niagara Mohawk
describes  a  number  of  related  proposals  to  restructure  the  utility's
business, including the reorganization of its assets and the renegotiation of
its contracts with generators which,  like the Partnership, are not regulated
as utilities ("non-utility generators").  On July 10,  1997,  Niagara  Mohawk
filed  a  Report  on Form 8-K with the Commission stating that Niagara Mohawk
had entered into a Master  Restructuring  Agreement ("MRA") pursuant to which
it and the twenty-nine independent power producers which have signed the  MRA
propose  to  terminate,  restate  or  amend  their  respective power purchase
agreements.   The  consideration  for  the  independent  power  p  urchasers'
agreement varies by party, and may  consist of cash, short term notes, shares
of Niagara Mohawk's Common  Stock  or  certain  swap  contracts.   Among  the
contracts  which is proposed to be amended and restated is the Niagara Mohawk
Power Purchase Agreement for the electric  output of Unit 1.  Pursuant to the
MRA and subject to negotiation as described below,  the  parties  propose  to
restructure  the  Niagara  Mohawk Power Purchase Agreement to provide for the
sale of electricity by the  Partnership pursuant to a pre-determined schedule
of output at one or more pricing arrangements for up to 12 years in  lieu  of
the  delivery  and  price  provisions  of  the  Niagara Mohawk Power Purchase
Agreement as currently in effect.

The details of the  price  arrangements  as  well  as other possible contract
modifications continue to  be  the  subject  of  extensive  negotiations  and
implementation  of  the MRA is subject to a number of significant conditions,
including without limitation Niagara  Mohawk  and the Partnership negotiating
the amended and restated Unit 1 Power Purchase Agreement, the receipt of  all
regulatory  approvals, the receipt of all consents by third parties necessary
for the transaction  contemplated  by  the  MRA (including satisfying certain
standards under the Partnership's Trust Indenture relating to the absence  of
material  adverse  changes  and  the  maintenance  of required projected debt
service coverage ratios or receiving  any required approval of bondholders or
other  creditors),  the  Partnership's  entering   into   new   third   party
arrangements  which will enable the Partnership to restructure its project on
a reasonably satisfactory economic basis,  and  the receipt by Niagara Mohawk
and the Partnership of all necessary approvals from the ir respective  boards
of  directors,  shareholders  and  partners.   Should  Niagara Mohawk and the
Partnership satisfy all of  the  conditions  to effectuating the transactions
contemplated by the MRA with respect to the Partnership, Niagara  Mohawk  may
nevertheless terminate the MRA if Niagara Mohawk determines that, as a result
of  the  failure  to  satisfy  the conditions of the MRA by other independent
power producers, the benefits  anticipated  to  be received by Niagara Mohawk
pursuant to the MRA have been materially and adversely affected.

                                     11

<PAGE>

The  Partnership,  as  a party to the MRA, is committed to negotiate to reach
agreement on an amended and  restated  power purchase agreement; however, the
Partnership expresses no opinion with respect to the likelihood that  all  of
the  conditions  to  implementation  of  the  MRA  will be met.  Further, the
Partnership expresses no opinion  with  respect  to  the viability of Niagara
Mohawk's proposed alternatives should the implementation of the  MRA  not  be
completed,   such  as  Niagara  Mohawk's  proposal  in  the  context  of  the
PowerChoice  Statement  to  take  possession  of  independent  power projects
through the power of eminent domain and to thereafter sell such  projects  or
Niagara  Mohawk's position that it has not ruled out the ultimate possibility
of a filing for restructuring under Chapter 11 of the U.S. Bankruptcy Code as
set forth in  the  PowerChoice  Statement.   Nevertheless,  in the absence of
agreement  on  a  definitive  restructured  power  purchase  agreement,   the
Partnership  continues  to  believe  that  the Niagara Mohawk Power Purc hase
Agreement is  a  valid  and  binding  contract  with  Niagara  Mohawk.  Until
negotiations on the restructured power purchase  agreement  advance  further,
the  Partnership  will  not  be  able  to  determine what effect, if any, the
restructured power purchase agreement  or  the PowerChoice proposal will have
on the Partnership, its business or net  operating  revenues.   For  the  six
months  ended  June  30, 1997, electric sales to Niagara Mohawk accounted for
approximately 19.1% of total project revenues.

Previously in connection with Niagara Mohawk's March 10, 1997 announcement of
the agreement in principle,  Standard  &  Poor's  placed  the Bonds on credit
watch "with negative implications," based in part  on  its  analysis  of  the
current  reports  on  Form  8-K filed in March 1997 by Niagara Mohawk and the
Partnership, respectively, and  its  belief  that  the  restructuring has the
potential to erode  cash  flow  coverage  derived  from  long-term  contracts
supporting  the  Bonds.   To  date  Standard  &  Poor's has not changed their
outlook on the Bonds.  Additionally, as  of  the date of this report, Moody's
Investors Service has not  changed  its  rating  or  its  previous  "negative
outlook" on the Bonds as a result of the developments.

Future operating results and cash flows from  operations  are  dependent  on,
among  other  things, the performance of equipment and processes as expected,
level of dispatch, fuel deliveries and price as contracted and the receipt of
certain capacity and other fixed  payments.   A  significant change in any of
these factors could have a material adverse effect on  the  results  for  the
Partnership.

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


	
                                      12
<PAGE>


                         PART II.		OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K
		 --------------------------------
(A)	Exhibits

	Exhibit No.	Description				                 Page No.
	----------  -----------                              -------
	  10.1		Amendment No. 2 to the Credit Agreement	    16
	  			dated as of April 7, 1995 between Selkirk
				Cogen Partners, L.P. (the "Partnership")
				and Dresdenr Bank, AG, New York Branch
				which imposes certain restrictions on the
			    ownership by J. Makowski Company, Inc. of
				interests in JMCS I Investors, L.P., a 
				general partner and limited partner of the 
				Partneership.

	  10.2		Amendment No.3 to the Credit Agreement		19
				dated as of July 1, 1997 between Selkirk
				Cogen Partners, L.P. (the "Partnership")
				and Dresdner Bank, AG, New York Branch
				which amends the amount of the working 
				capital and letter of credit amounts and
				extends the expiration for an additional
				three years.

		27		Financial Data Schedule	
				(For electronic filing purposes only)



(B)	Reports on Form 8-K

On July 18, 1997, the Registrant  filed  a  report on Form 8-K disclosing the
Master Restructuring Agreement entered  into  between  Niagara  Mohawk  Power
Corporation and 16 Independent Power Prodcers.

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

                                      13

<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.

Date: August 14, 1997	                 /s/    JMC SELKIRK, INC.
                                        --------------------------
 	                                    		General Partner


Date: August 14, 1997	                 /s/    JOHN R. COOPER
                                        --------------------------
 	                                     Name:  John R. Cooper
                                         Title:	Senior Vice President and
		                                         and Chief Financial Officer

			

						















                                      14

<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: August 14, 1997	                 /s/    JOHN R. COOPER
                                        --------------------------
 	                                     Name:  John R. Cooper
                                         Title:	Senior Vice President and
		                                         and Chief Financial Officer
			

						




















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