`=====================================================================================================`

UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549FORM 10-Q

              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                For the quarterly period ended March 31, 2002Commission 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
          
          
          
          
          
          
(I.R.S. Employer Identification Number)
          
          
          
incorporation or organization)

SELKIRK COGEN FUNDING CORPORATION
            (Exact name of co-registrant as specified in its charter)

Delaware
          
          
          
          
          
          
          
          
          
51-0354675
          
          
          
(State or other jurisdiction of
          
          
          
          
          
          
(I.R.S. Employer Identification Number)
          
          
          
incorporation or organization)

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 May 10, 2002, there were 10 shares of common stock of Selkirk Cogen Funding
Corporation, $1 par value outstanding.

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`TABLE OF CONTENTS

                                                                         Page
                                                                         ----

                      PART I. FINANCIAL INFORMATION

Item 1.           Financial Statements (unaudited)

                  Consolidated Balance Sheets as of March 31, 2002
                  and December 31, 2001...............................     1

                  Consolidated Statements of Operations for the three
                  months ended March 31, 2002 and 2001................     2

                  Consolidated Statements of Cash Flows for the three
                  months ended March 31, 2002 and 2001................     3

                  Notes to Consolidated Financial Statements..........     4

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

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

                  Liquidity and Capital Resources.....................    10

Item 3.           Quantitative and Qualitative Disclosures About
                  Market Risk ........................................    14


                                PART II. OTHER INFORMATION

Item 5.           Other Items.........................................    15

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

SIGNATURES............................................................    16`

SELKIRK COGEN PARTNERS, L.P.
                           CONSOLIDATED BALANCE SHEETS
                                 (In Thousands)

`March 31,         December 31,
                                                                                2002               2001
                                                                           ---------------    ---------------
ASSETS

CURRENT ASSETS:
    Cash and cash equivalents                                                   $   1,800          $   4,546
    Restricted funds                                                               32,378              7,699
    Accounts receivable, net of allowance of $0 and $32, respectively              17,545             17,789
    Due from affiliates                                                               392              1,127
    Fuel inventory and supplies                                                     8,506             10,228
    Other current assets                                                              410                511
    Asset for derivative contracts                                                    ---                446
                                                                           ---------------    ---------------
               Total current assets                                                61,031             42,346
                                                                           ---------------    ---------------

PLANT AND EQUIPMENT:
    Plant and equipment, at cost                                                  373,642            373,476
    Less: Accumulated depreciation                                                102,684             99,563
                                                                           ---------------    ---------------
               Plant and equipment, net                                           270,958            273,913
                                                                           ---------------    ---------------

LONG-TERM RESTRICTED FUNDS                                                         24,314             24,314

DEFERRED FINANCING CHARGES, net of accumulated

     amortization of $9,173 and $8,901, respectively                                7,118              7,390
                                                                           ---------------    ---------------
TOTAL ASSETS                                                                   $  363,421         $  347,963
                                                                           ===============    ===============

LIABILITIES AND PARTNERS' DEFICITS

CURRENT LIABILITIES:
    Accounts payable                                                             $    182         $    1,729
    Accrued bond interest payable                                                   8,389                357
    Accrued fuel expenses                                                           9,021              8,689
    Accrued property taxes                                                          3,200              2,296
    Other accrued expenses                                                          6,045              5,435
    Due to affiliates                                                                 797              2,008
    Current portion of long-term bonds                                             13,529             13,529
    Current portion of liability for derivative contacts                            3,428              3,688
                                                                           ---------------    ---------------
               Total current liabilities                                           44,591             37,731

LONG-TERM LIABILITIES:
    Deferred revenue                                                                4,420              4,597
    Other long-term liabilities                                                     6,151              7,070
    Long-term bonds - net of current portion                                      349,235            349,235
    Liability for derivative contracts - net of current
    portion                                                                         4,454              5,113
                                                                           ---------------    ---------------
               Total liabilities                                                  408,851            403,746
                                                                           ---------------    ---------------

COMMITMENTS AND CONTINGENCIES

PARTNERS' DEFICITS:
    General partners' deficits                                                      (364)              (458)
    Limited partners' deficits                                                   (37,184)           (46,524)
    Accumulated other comprehensive loss                                          (7,882)            (8,801)
                                                                           ---------------    ---------------
               Total partners' deficits                                          (45,430)           (55,783)
                                                                           ---------------    ---------------
TOTAL LIABILITIES AND PARTNERS' DEFICITS                                       $  363,421         $  347,963
                                                                           ===============    ===============
See notes to consolidated financial statements.


                                       1`

SELKIRK COGEN PARTNERS, L.P.
                              CONSOLIDATED STATEMENTS OF OPERATIONS
                                          (In Thousands)

`For the Three Months Ended
                                                                 ---------------------------------

                                                                     March 31,          March 31,
                                                                       2002                2001
                                                                 --------------     ---------------
OPERATING REVENUES:
     Electric and steam                                             $   49,463          $   61,584
     Fuel revenues                                                       3,492               4,889
                                                                 --------------     ---------------
                 Total operating revenues                               52,955              66,473
                                                                 --------------     ---------------

COST OF REVENUES:
     Fuel and transmission costs                                        24,155              40,454
     Unrealized loss on derivative contracts                               446                 ---
     Other operating and maintenance                                     6,531               3,340
     Depreciation                                                        3,121               3,114
                                                                 --------------     ---------------
                 Total cost of revenues                                 34,253              46,908
                                                                 --------------     ---------------
GROSS PROFIT                                                            18,702              19,565
                                                                 --------------     ---------------

OTHER OPERATING EXPENSES:
     Administrative services, affiliates                                   514                 431
     Other general and administrative                                      657                 605
     Amortization of deferred financing charges                            272                 280
                                                                 --------------     ---------------
                 Total other operating expenses                          1,443               1,316
                                                                 --------------     ---------------

OPERATING INCOME                                                        17,259              18,249
                                                                 --------------     ---------------

INTEREST (INCOME) EXPENSE:
     Interest income                                                     (207)               (638)
     Interest expense                                                    8,032               8,271
                                                                 --------------     ---------------
                 Total interest expense, net                             7,825               7,633
                                                                 --------------     ---------------

NET INCOME                                                           $   9,434          $   10,616
                                                                 ==============     ===============

NET INCOME ALLOCATION:
     General partners                                                 $     94           $     106
     Limited partners                                                    9,340              10,510
                                                                 --------------     ---------------
     TOTAL                                                           $   9,434          $   10,616
                                                                 ==============     ===============

See notes to consolidated financial statements.



                                       2`

SELKIRK COGEN PARTNERS, L.P.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (In Thousands)

`For the Three Months Ended
                                                                      --------------------------

                                                                       March 31,        March 31,
                                                                         2002             2001
                                                                      ---------        ----------

CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income                                                        $  9,434         $  10,616
    Adjustments to reconcile net income to net cash
       provided by operating activities:
       Depreciation and amortization                                     3,393             3,394
       Unrealized loss on derivative contracts                             446               ---
       Deferred revenue                                                   (177)             (177)
       Increase (decrease) in cash resulting from a change in:
          Restricted funds                                              (2,081)           (2,461)
          Accounts receivable                                              244             1,036
          Due from affiliates                                              735             1,575
          Fuel inventory and supplies                                    1,722             (173)
          Other current assets                                             101                91
          Accounts payable                                              (1,547)               88
          Accrued bond interest payable                                  8,032             8,271
          Accrued fuel expenses                                            332           (3,102)
          Accrued property taxes                                           904               100
          Other accrued expenses                                           610               413
          Due to affiliates                                            (1,211)                28
          Other long-term liabilities                                    (919)             (820)
                                                                  -------------   ---------------
               Net cash provided by operating activities                20,018            18,879
                                                                  -------------   ---------------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Plant and equipment additions                                        (166)             (266)
                                                                  -------------   ---------------
               Net cash used in investing activities                     (166)             (266)
                                                                  -------------   ---------------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Restricted funds                                                  (22,598)          (20,103)
                                                                  -------------   ---------------
               Net cash used in financing activities                  (22,598)          (20,103)
                                                                  -------------   ---------------

NET DECREASE IN CASH AND CASH EQUIVALENTS                              (2,746)           (1,490)
                                                                  -------------   ---------------

CASH AND CASH EQUIVALENTS,
    BEGINNING OF YEAR                                                    4,546             3,187
                                                                  -------------   ---------------

CASH AND CASH EQUIVALENTS,
    END OF YEAR                                                   $      1,800       $     1,697
                                                                  =============   ===============

See notes to consolidated financial statements.

                                       3`

SELKIRK COGEN PARTNERS, L.P.

                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               (unaudited)

Note 1.  Basis of Presentation

The accompanying  unaudited  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  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. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with accounting
principles generally accepted in the United States have been omitted pursuant to
rules  and  regulations   applicable  to  interim  financial   statements.   The
information  furnished in the  consolidated  financial  statements  reflects all
normal recurring adjustments, which, in the opinion of management, are necessary
for a fair presentation of such financial statements.  Operating results for the
three months ended March 31, 2002 are not necessarily  indicative of the results
that may be expected for the year ended December 31, 2002.

These consolidated  financial  statements should be read in conjunction with the
audited  consolidated  financial  statements included in the  Partnerships
December 31, 2001 Annual Report on Form 10-K.Comprehensive Income

Comprehensive  income  reports a measure for changes in income of an  enterprise
that result from  transactions and other economic events other than transactions
with partners. The Partnerships  comprehensive income consists principally
of  changes  in  the  market  value  of  certain   financial   hedges  with  the
implementation of Statement of Financial Accounting Standards (SFAS)
No. 133,  Accounting  for  Derivative  Instruments  and Hedging  Activities,  as
amended by SFAS Nos. 137 and 138, on January 1, 2001.

4

The schedule below summarizes the activities affecting  comprehensive income for
the three months ended March 31, 2002 and 2001 (in millions):

`Three Months Ended March 31,
                                                     2002              2001
                                                   ---------        -----------

Net income                                         $    9.4         $    10.6
Cumulative effect of adoption of SFAS No. 133           ---             (9.0)
Net loss from current period hedging transactions
     in accordance with SFAS No. 133                    ---             (1.8)

Net reclassification to earnings                        0.9              0.8
                                                   ---------        -----------
Comprehensive Income                               $   10.3         $    0.6
                                                   =========        ===========`

Note 2.    Significant Accounting Policies

Except as disclosed,  the  Partnership has not adopted or changed any accounting
principles.New Accounting Pronouncements

In June 2001,  the FASB issued SFAS No. 141,  entitled,  Business  Combinations.
This standard prohibits the use of the pooling-of-interests method of accounting
for  business  combinations  initiated  after June 30,  2001 and  applies to all
business combinations accounted for under the purchase method that are completed
after June 30, 2001.  This standard was adopted on January 1, 2002,  and did not
have an  impact on the  Partnerships  consolidated  financial  statements.

Also in June 2001,  the FASB issued SFAS No. 142,  entitled,  Goodwill and Other
Intangible Assets.  This standard  eliminates the amortization of goodwill,  and
requires goodwill to be reviewed periodically for impairment. This standard also
requires  the useful  lives of  previously  recognized  intangible  assets to be
reassessed and the remaining  amortization  periods to be adjusted  accordingly.
This standard is effective for fiscal years  beginning  after December 15, 2001,
for   all   goodwill   and   other   intangible   assets   recognized   on   the
Partnerships  consolidated balance sheets at that date, regardless of when
the assets were  initially  recognized.  This standard was adopted on January 1,
2002,  and  did  not  have  an  impact  on the  Partnerships  consolidated
financial statements.

In August  2001,  the FASB  issued SFAS No. 144,  entitled,  Accounting  for the
Impairment or Disposal of Long-Lived  Assets.  SFAS No. 144 supercedes  SFAS No.
121,  entitled,  Accounting  for the  Impairment  of  Long-Lived  Assets and for
Long-Lived Assets to be Disposed of, but retains its fundamental  provisions for
recognizing and measuring  impairment of long-lived  assets to be held and used.
This standard also requires that all long-lived assets to be disposed of by sale
are carried at the lower of carrying amount or fair value less cost to sell, and
that  depreciation  should  cease to be  recorded on such  assets.  SFAS No. 144
standardizes  the accounting and  presentation  requirements  for all long-lived
assets to be disposed of by sale, superceding previous guidance for discontinued
operations  of business  segments.  This  standard is effective for fiscal years
beginning after December 15, 2001. This standard was adopted on January 1, 2002,
and did not have an  impact  on the  Partnerships  consolidated  financial
statements.

5

Note 3.   Accounting For Derivative Contracts

The Partnership  has two foreign  currency  exchange  contracts to hedge against
fluctuations  in fuel  transportation  costs,  which are denominated in Canadian
dollars.  For the three months ended March 31, 2002 and 2001, amounts charged to
fuel  costs  as a  result  of  losses  realized  from  these  contracts  totaled
approximately  $0.9  million and $0.8  million,  respectively.  The  Partnership
expects that net derivative  losses of approximately  $3.4 million,  included in
accumulated other  comprehensive loss as of March 31, 2002, will be reclassified
into earnings within the next twelve months.

The  schedule  below  summarizes  the  activities  affecting  accumulated  other
comprehensive  loss from  derivative  contracts for the three months ended March
31, 2002 and 2001 (in millions):

`Three Months Ended March 31,
                                                             2002              2001
                                                           ------------   -------------


Beginning accumulated other comprehensive loss
     at January 1, 2002 and 2001                           $   (8.8)       $    (9.0)

Net loss from current period hedging transactions               ---             (1.8)

Net reclassification to earnings                                0.9              0.8
                                                           ------------   -------------
Ending accumulated other comprehensive loss                $   (7.9)       $   (10.0)
                                                           ============   =============`

Note 4.  Concentrations of Credit Risk

Credit risk is the risk of loss the  Partnership  would incur if  counterparties
were to fail to perform their contractual obligations. The Partnership primarily
conducts business with customers in the energy industry,  such as investor-owned
utilities,  energy trading  companies,  financial  institutions,  gas production
companies  and gas  transportation  companies  located in the United  States and
Canada.  This concentration of counterparties may impact the  Partnerships
overall  exposure to credit  risk in that its  counterparties  may be  similarly
affected by changes in economic, regulatory or other conditions. The Partnership
mitigates potential credit losses in accordance with established credit approval
practices and limits by dealing primarily with counterparties it considers to be
of investment grade.

As  of  March  31,  2002,  the  Partnerships   credit  risk  is  primarily
concentrated with the following  customers:  Con Edison,  Niagara Mohawk and the
New  York  Independent  System  Operator,  all of whom are  considered  to be of
investment grade.


Note 5.  Bankruptcy of Affiliated Company

JMC  Selkirk,   Inc.  is  the  managing  general  partner  of  the  Partnership.
Approximately 90% of the ownership  interest in JMC Selkirk,  Inc. is held by an
indirect  subsidiary of PG&E  National  Energy Group,  Inc.  ("NEG").  NEG is an
indirect,  wholly-owned  subsidiary of PG&E  Corporation,  the parent company of
Pacific Gas and Electric Company (the "Utility").

6

In December 2000, and in January and February 2001, PG&E Corporation and NEG
completed a corporate  restructuring of NEG that involved the use or creation of
limited liability companies  (LLCs) as intermediate owners between a
parent  company and its  subsidiaries.  One of these LLCs is  PG&E  National
Energy Group,  LLC, which owns 100% of the stock of NEG. After the restructuring
was completed,  two independent  rating  agencies,  Standard and Poors and
Moodys  Investor  Services  issued  investment  grade  ratings for NEG and
reaffirmed  such  ratings for certain NEG  subsidiaries.  On April 6, 2001,  the
Utility filed a voluntary petition for relief under the provisions of Chapter 11
of the U.S. Bankruptcy Code  (Bankruptcy  Code) in the United States
Bankruptcy  Court for the  Northern  District  of  California  (Bankruptcy
Court).  Pursuant to the Bankruptcy  Code, the Utility  retains control of
its assets and is authorized  to operate its business as a  debtor-in-possession
while being subject to the jurisdiction of the Bankruptcy Court. The Utility and
PG&E  Corporation  have  jointly  filed a plan of  reorganization  with  the
Bankruptcy  Court  that  entails  separating  the  Utility  into  four  distinct
businesses.  The proposed plan of reorganization does not directly affect NEG or
any of its  subsidiaries.  Subsequent to the bankruptcy  filing,  the investment
grade ratings of NEG and its rated  subsidiaries  were reaffirmed on April 6 and
9, 2001.  The  Managing  General  Partner  believes  that NEG and its direct and
indirect subsidiaries, including JMC Selkirk, Inc., Pentagen Investors, L.P. and
the  Partnership,   would  not  be  substantively   consolidated  with  PG&E
Corporation  in any  insolvency  or  bankruptcy  proceeding  involving  PG&E
Corporation or the Utility.

Note 6.  Title V Permit

On November 6, 2001, the Partnership received from the New York State Department
of Environmental  Conservation (the DEC) the Facilitys Title V
operating  permit  endorsed by the DEC on November  2, 2001 (the  Title  V
Permit).  The  Title V Permit  as  received  by the  Partnership  contains
conditions that conflict with the  Partnerships  existing air permits, and
the  Facilitys  compliance with these conditions  under certain  operating
circumstances  would be  problematic.  Further,  the  Partnership  believes that
certain of the conditions  contained in the Title V Permit are inconsistent with
the laws and  regulations  underlying  the Title V program and Title V operating
permits issued by the DEC to comparable  electric  generating  facilities in New
York. By letter dated November 12, 2001, the  Partnership has filed with the DEC
a request  for an  adjudicatory  hearing  to  address  and  resolve  the  issues
presented  by the  Title V  Permit.  The DEC has  confirmed  that the  terms and
conditions of the Title V Permit are stayed  pending a final DEC decision on the
appeal.  Since November 12, 2001, the  Partnership and DEC staff have engaged in
negotiations regarding the Title V Permit. At this time, it is too early for the
Partnership to assess  whether a settlement can be achieved,  the likely outcome
of the adjudicatory  hearing if no settlement is achieved,  or the impact on the
Facility.

7

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                
CONDITION AND RESULTS OF OPERATIONSCautionary 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;  the outcome of the  negotiations  with the New York State Department of
Environmental  Conservation  regarding  the  Facilitys  Title V  operating
permit as described in Regulations and Environmental Matters  below;
and  whether  Con Edison  were to prevail in its claim to Unit  2s  excess
natural gas volumes as  described  in the  Partnerships  December 31, 2001
Annual Report on Form 10-K.Results of OperationsThree Months Ended March 31, 2002 Compared to the Three Months Ended March 31, 2001

The Partnership  earned net income of approximately $9.4 million for the quarter
ended  March  31,  2002 as  compared  to  approximately  $10.6  million  for the
corresponding  period in the prior year. The $1.2 million decrease in net income
is  primarily  due to lower  gross  profit  resulting  from  differences  in the
scheduling  of  planned  maintenance.  The  first  quarter  of 2002  included  a
scheduled  maintenance outage on Unit 2, whereas no maintenance outages occurred
during the first quarter of 2001. 

Total operating revenues for the quarter ended March 31, 2002 were approximately
$53.0 million as compared to approximately  $66.5 million for the  corresponding
period in the prior year.Electric Revenues (dollars and kWh's in millions):

`For the Three Months Ended
                                   March 31, 2002                                  March 31, 2001
                     ------------------------------------------    ---------------------------------------
                        Dollars   kWh's   Capacity  Dispatch     Dollars    kWh's     Capacity   Dispatch
                        -------   -----   --------  --------     -------    ------    --------   --------
Unit 1                 14.9      178.5   100.0%     100.0%          17.9     103.0     59.7%      60.6%
Unit 2                 34.5      452.9    79.1%      97.8%          43.0     518.7     90.6%      95.2%`

8

Unit 1 electric revenues  decreased  approximately  $3.0 million for the quarter
ended March 31, 2002 as compared to the corresponding  period in the prior year.
The decrease in Unit 1 electric  revenues  for the quarter  ended March 31, 2002
was  primarily  due to lower fuel index  pricing in the energy  component of the
Niagara Mohawk Power Corporation  (Niagara  Mohawk) monthly contract
payments and lower market energy prices,  partially  offset by higher volumes of
delivered energy. During the quarter ended March 31, 2002, revenues from Niagara
Mohawk,  PG&E Energy Trading - Power, L.P., an affiliate of JMC Selkirk Inc.
(PG&E  Energy  Trading),  and the New  York  Independent  System
Operator  (ISO)  were approximately  $9.9 million,  $0.0 million and
$5.0 million,  respectively,  as compared to approximately  $12.4 million,  $3.3
million and $2.2  million,  respectively,  for the  corresponding  period in the
prior  year.  Energy  and  capacity  sales  to the ISO were  sold at ISO  market
clearing  prices and energy  sales to PG&E  Energy  were sold at  negotiated
market prices.

Unit 2 electric revenues  decreased  approximately  $8.5 million for the quarter
ended March 31, 2002 as compared to the corresponding  period in the prior year.
The decrease in Unit 2 electric  revenues was  primarily due to lower fuel index
pricing  in the  Consolidated  Edison  Company  of  New  York,  Inc.  (Con
Edison) contract price for delivered energy and lower volumes of delivered
energy resulting from a four week scheduled  maintenance outage in January 2002.
During the  quarter  ended March 31,  2002,  Unit 2 electric  revenues  from Con
Edison,  the ISO and PG&E Energy Trading were  approximately  $33.1 million,
$0.1 million and $1.3 million, respectively.  Revenues from the ISO and PG&E
Energy Trading resulted from sales of other energy-related products.  During the
quarter ended March 31, 2001, all of the Unit 2 electric  revenues were from Con
Edison.

Steam  revenues  for the quarter  ended March 31, 2002 were  approximately  $0.1
million as compared to approximately  $0.6 million for the corresponding  period
in the prior year. The Partnership  charges General Electric a nominal price for
steam delivered in an amount up to the annual  equivalent of 160,000 lbs/hr (the
Discounted  Quantity).  The $0.5 million  decrease in steam revenues
was  primarily  due to a  decrease  in steam  sales in excess of the  Discounted
Quantity to General  Electric.  Delivered  steam for the quarter ended March 31,
2002 was  approximately  367.7 million  pounds or 170,232  lbs/hr as compared to
approximately  432.9  million  pounds or 198,192  lbs/hr  for the  corresponding
period in the prior year.Fuel Revenues (dollars and MMBtu's in millions):

`For the Three Months Ended
                                              March 31, 2002                          March 31, 2001
                                       ------------------------------        ---------------------------------
                                         Dollars         MMBtu's                Dollars          MMBtu's
                                         -------         -------                -------          -------
Gas Resales                                 1.5            0.6                     3.5             0.6
Fuel Optimizations                          1.5            0.6                     0.9             0.1
Peak Shaving Arrangements                   0.5            0.0                     0.5             0.0`

Fuel  revenues  for the quarter  ended March 31,  2002 were  approximately  $3.5
million as compared to approximately  $4.9 million for the corresponding  period
in the prior year.  The $1.4 million  decrease in fuel revenues is primarily due
to lower  market  natural  gas  prices,  partially  offset by higher  volumes of
natural gas sold under fuel optimizations.

9

Fuel and Transmission Costs (dollars and MMBtu's in millions):

`For the Three Months Ended
                                              March 31, 2002                          March 31, 2001
                                       ------------------------------        ---------------------------------
                                         Dollars         MMBtu's                Dollars          MMBtu's
                                         -------         -------                -------          -------
Fuel Supply and
     Transportation*                       20.8            6.7                    37.7             7.0
Fuel Optimizations                          1.5            0.6                     0.9             0.1
Transmission Costs                          1.9            ---                     1.9             ---`

* Includes the cost of fuel  associated  with the production of electricity  and
gas resales.

Fuel  and  transmission  costs  for  the  quarter  ended  March  31,  2002  were
approximately  $24.2 million as compared to approximately  $40.5 million for the
corresponding  period in the prior year. The $16.3 million  decrease in fuel and
transmission  costs is primarily due to the lower price of natural gas under the
firm fuel supply contracts. The Partnership has foreign currency swap agreements
to hedge against future  exchange rate  fluctuations  under fuel  transportation
agreements,  which are  denominated  in  Canadian  dollars.  During  each of the
quarters  ended  March  31,  2002  and  2001,   fuel  costs  were  increased  by
approximately  $0.9 million and $0.8 million,  respectively,  as a result of the
currency swap agreements.

Unrealized loss on derivative contracts for the quarter ended March 31, 2002 was
approximately  $0.4  million as compared to $0.0  million for the  corresponding
period in the prior year. The unrealized  loss reflects the change in fair value
of peak shaving arrangements as of March 31, 2002.

Other  operating and  maintenance  expenses for the quarter ended March 31, 2002
were  approximately  $6.5 million as compared to approximately  $3.3 million for
the  corresponding  period in the prior year. The $3.2 million increase in other
operating  and  maintenance  expenses was primarily  due to  differences  in the
scheduling of planned maintenance.Liquidity and Capital Resources

Net cash provided by operating  activities  for the quarter ended March 31, 2002
was approximately  $20.0 million as compared to approximately  $18.9 million for
the  corresponding  period in the prior year.  Net cash  provided  by  operating
activities  primarily  represents net income,  adjusted by non-cash expenses and
income, plus the net effect of changes within the  Partnerships  operating
assets and liability accounts.

Net cash used in investing  activities  for the quarter ended March 31, 2002 was
approximately  $0.2  million as compared to  approximately  $0.3 million for the
corresponding  period in the prior year.  Net cash used in investing  activities
represents additions to plant and equipment.

10

Net cash used in financing  activities  for the quarter ended March 31, 2002 was
approximately  $22.6 million as compared to approximately  $20.1 million for the
corresponding  period  in the  prior  year.  The  increase  in net cash  used in
financing  activities  for the quarter ended March 31, 2002 was primarily due to
additional cash becoming available to deposit into the Principal Fund.  Pursuant
to the Partnerships Depositary and Disbursement Agreement, administered by
Bankers Trust  Company,  as depositary  agent,  the  Partnership  is required to
maintain certain  Restricted Funds. Net cash flows used in financing  activities
during the quarter  ended March 31, 2002 and 2001  represent  deposits of monies
into the Interest Fund and Principal Fund.

Future operating  results and cash flows from operations are 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 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 during 2002.Market RiskInterest 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 ended
March 31, 2002 would have resulted in a negative impact of  approximately  $21.0
thousand on the Partnerships net income.

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   fails  to  meet  the  terms  of  the  agreements,   the
Partnerships   exposure  is  limited  to  the   currency   exchange   rate
differential.  During the quarter  ended March 31, 2002,  the currency  exchange
rate differential resulted in a negative impact of approximately $0.9 million on
the Partnerships net income.

11

Energy Commodity Prices

The  Partnership  seeks to reduce its  exposure to market risk  associated  with
energy  commodities  such as  electric  power and natural gas through the use of
long-term  purchase  and  sale  contracts.   As  part  of  its  fuel  management
activities,  the Partnership also enters into agreements to resell its long-term
natural gas volumes,  when it is feasible to do so, at favorable prices relative
to the cost of contract volumes and the cost of substitute  fuels. To the extent
the Partnership has open positions,  it is exposed to the risk that  fluctuating
market prices may adversely impact its financial results.Credit Risk

Credit risk is the risk of loss the  Partnership  would incur if  counterparties
were to fail to perform their contractual obligations. The Partnership primarily
conducts business with customers in the energy industry,  such as investor-owned
utilities,  energy trading  companies,  financial  institutions,  gas production
companies  and gas  transportation  companies  located in the United  States and
Canada.  This concentration of counterparties may impact the  Partnerships
overall  exposure to credit  risk in that its  counterparties  may be  similarly
affected by changes in economic, regulatory or other conditions. The Partnership
mitigates potential credit losses in accordance with established credit approval
practices and limits by dealing primarily with counterparties it considers to be
of investment grade.

As  of  March  31,  2002,  the  Partnerships   credit  risk  is  primarily
concentrated with the following  customers:  Con Edison,  Niagara Mohawk and the
New  York  Independent  System  Operator,  all of whom are  considered  to be of
investment grade.Accounting Principles Issued But Not Yet Adopted

The  Partnership  has certain  derivative  commodity  contracts for the physical
delivery of purchase  and sale  quantities  transacted  in the normal  course of
business.  These  derivatives  are exempt from the  requirements of Statement of
Financial Accounting Standards (SFAS) No. 133, Accounting
for  Derivative  Instruments  and Hedging  Activities,  as amended by SFAS
Nos. 137 and 138,  Accounting for Certain Derivative  Instruments and
Certain Hedging  Activities  (collectively,  SFAS No. 133)  under the
normal purchase and sales exception,  and are not reflected on the balance sheet
at  fair  value.  In  June 2001  (as  amended  in   October 2001   and
December 2001), the Financial Accounting Standards Board (FASB)
approved  an  interpretation  issued  by the  Derivatives  Implementation  Group
(DIG),  DIG C15, that changed the definition of normal purchases and
sales for certain power contracts.  Implementation of this  interpretation  will
not result in any contracts  failure to continue qualifying for the normal
purchases and sales exemption under DIG C15. The FASB has also approved  another
DIG interpretation, DIG C16, that disallows normal purchases and sales treatment
for commodity  contracts  (other than power  contracts) that contain  volumetric
variability  or  optionality.  One  of  the  Partnerships  long-term  fuel
contracts no longer  qualifies under the normal purchase  exemption  pursuant to
the  requirements  of DIG  C16.   However,  because the contract has market
based  pricing,  the  Partnership  estimates  its fair  value to always be zero,
resulting in no impact to the consolidated financial statements.

The  FASB  issued  SFAS No.  143,  entitled,  Accounting  for  Asset  Retirement
Obligations.  This standard is effective for fiscal years  beginning  after June
15, 2002, and provides accounting  requirements for asset retirement obligations
associated  with  tangible  long-lived  assets.  Under the  standard,  the asset
retirement  obligation  is  recorded  at fair value in the period in which it is
incurred by increasing the carrying amount of the related  long-lived asset. The
liability  is accreted to its present  value in each  subsequent  period and the
capitalized cost is depreciated over the useful life of the related assets.  The
Partnership has not yet determined the effects of this standard on its financial
reporting.

12

Critical Accounting Policies

Effective  January 1, 2001, the Partnership  adopted SFAS No. 133. This standard
requires  the  Partnership  to  recognize  all  derivatives,  as  defined in the
standard, on the consolidated balance sheets at fair value.Legal Matters

The  Partnership is a party in various legal  proceedings  and potential  claims
arising in the ordinary course of its business. Management does not believe that
the  resolution  of these  matters  will have a material  adverse  effect on the
Partnerships consolidated financial position or results of operations. See
Part I, Item 3 of the Partnerships December 31, 2001 Annual Report on Form
10-K for further discussion of significant pending litigation.Regulations and Environmental Matters

On November 6, 2001, the Partnership received from the New York State Department
of Environmental  Conservation (the DEC) the Facilitys Title V
operating  permit  endorsed by the DEC on November  2, 2001 (the  Title  V
Permit).  The  Title V Permit  as  received  by the  Partnership  contains
conditions that conflict with the  Partnerships  existing air permits, and
the  Facilitys  compliance with these conditions  under certain  operating
circumstances  would be  problematic.  Further,  the  Partnership  believes that
certain of the conditions  contained in the Title V Permit are inconsistent with
the laws and  regulations  underlying  the Title V program and Title V operating
permits issued by the DEC to comparable  electric  generating  facilities in New
York. By letter dated November 12, 2001, the  Partnership has filed with the DEC
a request  for an  adjudicatory  hearing  to  address  and  resolve  the  issues
presented  by the  Title V  Permit.  The DEC has  confirmed  that the  terms and
conditions of the Title V Permit are stayed  pending a final DEC decision on the
appeal.  Since November 12, 2001, the  Partnership and DEC staff have engaged in
negotiations regarding the Title V Permit. At this time, it is too early for the
Partnership to assess  whether a settlement can be achieved,  the likely outcome
of the adjudicatory  hearing if no settlement is achieved,  or the impact on the
Facility.

13

ITEM 3.   QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT
MARKET RISK

The  Partnership  is exposed to market  risk from  changes  in  interest  rates,
foreign currency exchange rates,  energy commodity prices and credit risk, 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.  (See  Market  Risk,  included in Item 2,
Managements  Discussion and Analysis of Financial Condition and Results of
Operations above.)

14

PART II. OTHER INFORMATION

`Selkirk Cogen Funding Corporation:
         ----------------------------------

                  Name                               Position
                  ----                               --------
         John R. Cooper*                             Senior Vice President, Chief Financial
                                                     Officer and Treasurer
         Thomas E. Legro                             Vice President and Controller

         The Managing General Partner:
         -----------------------------

                  Name                               Position
                  ----                               --------
         John R. Cooper*                             Senior Vice President, Chief Financial
                                                     Officer and Treasurer
         Thomas E. Legro                             Vice President and Controller`

* John R.  Cooper has been  elected to the  additional  position  of  Treasurer,
replacing David N. BassettThomas E. Legrois Vice  President and  Controller  of PG&E  National
Energy  Group  Company,  an  affiliate  of the  Partnership,  and has been  with
PG&E  National  Energy Group Company  since July 2001.  From January 1994 to
June 2001,  Mr. Legro  was Vice  President and Controller of Edison Mission
Energy.  Mr. Legro was elected Vice  President  and  Controller  of both Selkirk
Cogen Funding  Corporation  and the Managing  General  Partner on April 1, 2002.
ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

`(A)      Exhibits

         Not applicable.


(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

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: May 13, 2002                         /s/ JOHN R. COOPER
                                           ------------------------------------
                                           Name:    John R. Cooper
                                           Title:   Senior Vice President,
                                                    Chief Financial Officer and
                                                    Treasurer`

16
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:  May 13, 2002                      /s/  JOHN R. COOPER
                                         -----------------------------------
                                         Name:    John R. Cooper
                                         Title:   Senior Vice President,
                                                  Chief Financial Officer and
                                                  Treasurer
17