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SECURITIESAND EXCHANGE COMMISSION

Washington, D.C.20549

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FORM 10-Q(Mark One)

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|--------|---------------------------------------------------------------------------------------|
|   | QUARTERLY REPORT PURSUANTTO SECTION 13 OR 15(d) OF THESECURITIES EXCHANGE ACT OF 1934 |

For the quarterly period ended September 30, 2005

or

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|--------|----------------------------------------------------------------------------------------|
|   | TRANSITION REPORT PURSUANTTO SECTION  13 OR 15(d) OF THESECURITIES EXCHANGE ACT OF1934 |

For the transition period from                                        to                                        

Commission file number: 333-121655

ORMAT FUNDINGCORP.(Exact name of registrant as specified in itscharter)

|                                                              |  |                                       |  |  |  |  |
|--------------------------------------------------------------|--|---------------------------------------|--|--|--|--|
| DELAWARE                                                     |  | 88-0326081                            |
| (State or otherjurisdiction ofincorporation or organization) |  | (I.R.S.EmployerIdentification Number) |
|                                                              |

980 GregStreet, Sparks, Nevada 89431 (Address of principal executiveoffices)

Registrant's telephone number, including areacode: (775) 356-9029

Indicate by check mark whether theregistrant: (1)  has filed all reports required to be filed bySection  13 or 15(d) of the Securities Exchange Act of 1934during the preceding 12 months (or for such shorter period that theregistrant was required to file such reports), and (2)  has beensubject to such filing requirements for the past 90 days.

Yes       No   

Indicate by checkmark whether the registrant is an accelerated filer (as defined inRule  12b-2 of the Exchange Act).

Yes       No   

As of the date ofthis filing the registrant had 500 shares of its common stock, $1.00par value, outstanding (all shares held by an affiliate of theregistrant).

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ORMATFUNDING CORP.

FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30,2005TABLE OFCONTENTS

|                                        |  |                                                                                     |    |         |    |        |  |  |  |  |
|----------------------------------------|--|-------------------------------------------------------------------------------------|----|---------|----|--------|--|--|--|--|
|                                   |  |                                                                                |    | PageNo. |
| **PARTI – FINANCIALINFORMATION** |  |                                                                                | 4  |    |
| ITEM1.                                 |  | CONDENSEDCONSOLIDATED FINANCIALSTATEMENTS                                           |    |    | 4  |   |
| ITEM2.                                 |  | MANAGEMENT'S DISCUSSION AND ANALYSIS OFFINANCIAL CONDITION AND RESULTS OFOPERATIONS |    |    | 14 |   |
| ITEM3.                                 |  | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKETRISK                           |    |    | 27 |   |
| ITEM4.                                 |  | CONTROLS ANDPROCEDURES                                                              |    |    | 27 |   |
| **PARTII – OTHERINFORMATION**    |  |                                                                                | 28 |    |
| ITEM1.                                 |  | LEGALPROCEEDINGS                                                                    |    |    | 28 |   |
| ITEM2.                                 |  | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OFPROCEEDS                          |    |    | 28 |   |
| ITEM3.                                 |  | DEFAULTS UPON SENIORSECURITIES                                                      |    |    | 28 |   |
| ITEM4.                                 |  | SUBMISSION OF MATTERS TO A VOTE OF SECURITYHOLDERS                                  |    |    | 28 |   |
| ITEM5.                                 |  | OTHERINFORMATION                                                                    |    |    | 28 |   |
| ITEM6.                                 |  | EXHIBITS AND REPORTS ON FORM8-K                                                     |    |    | 29 |   |
|                                        |

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CertainDefinitions

Unless the context otherwise requires, allreferences in this quarterly report to "OrmatFunding" refer to Ormat Funding Corp. and not to any ofits subsidiaries or affiliates; "Ormat,""we," "our,""ours", the"Company" and "us"refer to Ormat Funding and its subsidiaries on a consolidated basis;"Ormat Nevada" or"Parent" refers to Ormat Nevada Inc., ourdirect parent company; "Ormat Technologies"and "OTec" refers to Ormat Technologies,Inc., the parent company of Ormat Nevada; and "OrmatIndustries" refers to Ormat Industries Ltd., our ultimateparent company. Unless the context otherwise requires,"plants" refers to the various powergenerating plants owned and/or operated by our subsidiaries or theentities in which they hold equity interests, and"units" refers to particular power generatingunits at those plants. We refer to a group of plants and the geothermalresource associated with them in a certain geographic area as a"project." The "Senior SecuredNotes" refers to our 81⁄4% SeniorSecured Notes due 2020 that were sold in February2004.

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PART I

FINANCIALINFORMATION

ITEM 1.    CONDENSED CONSOLIDATED FINANCIALSTATEMENTS

ORMAT FUNDING CORP. AND SUBSIDIARIES (A WhollyOwned Subsidiary of Ormat Nevada, Inc.) CONDENSED CONSOLIDATEDBALANCE SHEETS(Unaudited)

|                                                                                                |  |                       |         |                  |  |        |         |        |  |  |
|------------------------------------------------------------------------------------------------|--|-----------------------|---------|------------------|--|--------|---------|--------|--|--|
|                                                                                           |  | September30, 2005     |         | December 31,2004 |
|                                                                                           |  | (dollars inthousands) |
| **Assets**                                                                                     |  |                  |    |             |  |   |    |   |
| Currentassets:                                                                                 |  |                  |    |             |  |   |    |   |
| Cash                                                                                           |  | $                     | 3       |             |  | $      | 3       |   |
| Restrictedcash, cash equivalents and marketablesecurities                                      |  |                  | 15,146  |             |  |   | 31      |   |
| Accountsreceivable                                                                             |  |                  | 8,869   |             |  |   | 7,404   |   |
| Prepaidexpenses andother                                                                       |  |                  | — |             |  |   | 41      |   |
| Totalcurrentassets                                                                             |  |                  | 24,018  |             |  |   | 7,479   |   |
| Restrictedcash, cash equivalents and marketablesecurities                                      |  |                  | 712     |             |  |   | 19,339  |   |
| Investment inPartnership                                                                       |  |                  | 35,884  |             |  |   | 36,361  |   |
| Depositsand other                                                                              |  |                  | 2,534   |             |  |   | 2,850   |   |
| Property,plant and equipment,net                                                               |  |                  | 136,265 |             |  |   | 142,468 |   |
| Construction-in-process                                                                        |  |                  | 30,359  |             |  |   | 6,823   |   |
| Deferredfinancing costs,net                                                                    |  |                  | 9,237   |             |  |   | 9,582   |   |
| Intangible assets,net                                                                          |  |                  | 9,673   |             |  |   | 10,281  |   |
| Totalassets                                                                                    |  | $                     | 248,682 |             |  | $      | 235,183 |   |
| **Liabilitiesand Stockholder'sEquity**                                                         |  |                  |    |             |  |   |    |   |
| Currentliabilities:                                                                            |  |                  |    |             |  |   |    |   |
| Accountspayable and accruedexpenses                                                            |  | $                     | 8,963   |             |  | $      | 7,064   |   |
| Currentportion of long-termdebt                                                                |  |                  | 7,814   |             |  |   | 6,090   |   |
| O&Mpayable toParent                                                                        |  |                  | 2,721   |             |  |   | 4,318   |   |
| Totalcurrentliabilities                                                                        |  |                  | 19,498  |             |  |   | 17,472  |   |
| Long-termdebt, net of currentportion                                                           |  |                  | 178,692 |             |  |   | 183,399 |   |
| Long-termsubordinated loan fromParent                                                          |  |                  | 24,445  |             |  |   | 8,216   |   |
| Deferred incometaxes                                                                           |  |                  | 5,935   |             |  |   | 6,052   |   |
| Asset retirementobligation                                                                     |  |                  | 5,709   |             |  |   | 5,429   |   |
| Totalliabilities                                                                               |  |                  | 234,279 |             |  |   | 220,568 |   |
| Commitmentsand contingencies (Note5)                                                           |  |                  |    |             |  |   |    |   |
| Stockholder'sequity:                                                                           |  |                  |    |             |  |   |    |   |
| Common stock, parvalue $1 per share; 1000 shares authorized; 500  shares issued andoutstanding |  |                  | 1       |             |  |   | 1       |   |
| Retainedearnings                                                                               |  |                  | 14,414  |             |  |   | 14,614  |   |
| Accumulatedother comprehensiveloss                                                             |  |                  | (12     | )           |  |   | — |   |
| Totalstockholder'sequity                                                                       |  |                  | 14,403  |             |  |   | 14,615  |   |
| Totalliabilities and stockholder'sequity                                                       |  | $                     | 248,682 |             |  | $      | 235,183 |   |
|                                                                                                |

Theaccompanying notes are an integral part of these condensed consolidatedfinancial statements.

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ORMAT FUNDING CORP. AND SUBSIDIARIES(A Wholly Owned Subsidiary of Ormat Nevada, Inc.) CONDENSEDCONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)

|                                                                                                |  |                                 |         |                                |  |        |         |         |  |        |         |         |  |        |         |         |  |  |
|------------------------------------------------------------------------------------------------|--|---------------------------------|---------|--------------------------------|--|--------|---------|---------|--|--------|---------|---------|--|--------|---------|---------|--|--|
|                                                                                           |  | ThreeMonths Ended September 30, |         | Nine Months Ended September30, |
|                                                                                           |  | 2005                            |         | 2004                           |  | 2005   |         | 2004    |
|                                                                                           |  | (dollarsin thousands)           |         | (dollars inthousands)          |
| Revenues:                                                                                      |  |                            |    |                           |  |   |    |    |  |   |    |    |  |   |    |    |
| Energyandcapacity                                                                              |  | $                               | 13,200  |                           |  | $      | 13,815  |    |  | $      | 35,812  |    |  | $      | 36,532  |    |
| Leaseportion of energy andcapacity                                                             |  |                            | 1,741   |                           |  |   | 2,503   |    |  |   | 7,509   |    |  |   | 6,674   |    |
| Totalrevenues                                                                                  |  |                            | 14,941  |                           |  |   | 16,318  |    |  |   | 43,321  |    |  |   | 43,206  |    |
| Costofrevenues:                                                                                |  |                            |    |                           |  |   |    |    |  |   |    |    |  |   |    |    |
| Energyandcapacity                                                                              |  |                            | 8,946   |                           |  |   | 7,694   |    |  |   | 28,973  |    |  |   | 24,639  |    |
| Leaseportion of energy andcapacity                                                             |  |                            | 1,372   |                           |  |   | 1,332   |    |  |   | 3,805   |    |  |   | 3,195   |    |
| Totalcost ofrevenues                                                                           |  |                            | 10,318  |                           |  |   | 9,026   |    |  |   | 32,778  |    |  |   | 27,834  |    |
| Grossmargin                                                                                    |  |                            | 4,623   |                           |  |   | 7,292   |    |  |   | 10,543  |    |  |   | 15,372  |    |
| Generaland administrativeexpenses                                                              |  |                            | 371     |                           |  |   | 506     |    |  |   | 1,259   |    |  |   | 1,102   |    |
| Operatingincome                                                                                |  |                            | 4,252   |                           |  |   | 6,786   |    |  |   | 9,284   |    |  |   | 14,270  |    |
| Otherincome(expense):                                                                          |  |                            |    |                           |  |   |    |    |  |   |    |    |  |   |    |    |
| Interestincome                                                                                 |  |                            | 288     |                           |  |   | 312     |    |  |   | 625     |    |  |   | 377     |    |
| Interestexpense                                                                                |  |                            | (4,120  | )                         |  |   | (5,373  | )  |  |   | (12,349 | )  |  |   | (13,154 | )  |
| Othernon-operatingincome                                                                       |  |                            | — |                           |  |   | 6       |    |  |   | — |    |  |   | 107     |    |
| Income(loss) before income taxes and equity in income ofinvestee                               |  |                            | 420     |                           |  |   | 1,731   |    |  |   | (2,440  | )  |  |   | 1,600   |    |
| Incometax benefit(expense)                                                                     |  |                            | (161    | )                         |  |   | (659    | )  |  |   | 927     |    |  |   | (608    | )  |
| Equityin income ofinvestee                                                                     |  |                            | 395     |                           |  |   | 421     |    |  |   | 1,313   |    |  |   | 1,156   |    |
| Netincome(loss)                                                                                |  |                            | 654     |                           |  |   | 1,493   |    |  |   | (200    | )  |  |   | 2,148   |    |
| Othercomprehensiveloss:                                                                        |  |                            |    |                           |  |   |    |    |  |   |    |    |  |   |    |    |
| Unrealizedloss on marketable securities (net of tax benefit of $22,000 and$7,000,respectively) |  |                            | (37     | )                         |  |   | — |    |  |   | (12     | )  |  |   | — |    |
| Comprehensiveincome(loss)                                                                      |  | $                               | 617     |                           |  | $      | 1,493   |    |  | $      | (212    | )  |  | $      | 2,148   |    |
|                                                                                                |

Theaccompanying notes are an integral part of these condensed consolidatedfinancial statements.

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ORMAT FUNDING CORP. AND SUBSIDIARIES(A Wholly Owned Subsidiary of Ormat Nevada, Inc.) CONDENSEDCONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY(Unaudited)

|                                                                                       |  |                                     |         |                  |  |                                    |         |        |  |        |         |         |  |        |         |         |  |        |        |         |  |  |
|---------------------------------------------------------------------------------------|--|-------------------------------------|---------|------------------|--|------------------------------------|---------|--------|--|--------|---------|---------|--|--------|---------|---------|--|--------|--------|---------|--|--|
|                                                                                  |  |     CommonStock |         | RetainedEarnings |  | AccumulatedOther ComprehensiveLoss |         | Total  |
| Shares                                                                                |  | Amount                              |         |
|                                                                                  |  | (dollarsin thousands)               |
| **Balance at December 31,2004**                                                       |  |                                | 500     |             |  | $                                  | 1       |   |  | $      | 14,614  |    |  | $      | — |    |  | $      | 14,615 |    |
| Netloss                                                                               |  |                                | — |             |  |                               | — |   |  |   | (200    | )  |  |   | — |    |  |   | (200   | )  |
| Unrealizedloss on marketable securities available-for-sale (net tax benefit of$7,000) |  |                                | — |             |  |                               | — |   |  |   | — |    |  |   | (12     | )  |  |   | (12    | )  |
| **Balanceat September 30,2005**                                                       |  |                                | 500     |             |  | $                                  | 1       |   |  | $      | 14,414  |    |  | $      | (12     | )  |  | $      | 14,403 |    |
|                                                                                       |

Theaccompanying notes are an integral part of these condensed consolidatedfinancial statements.

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ORMAT FUNDING CORP. AND SUBSIDIARIES(A Wholly Owned Subsidiary of Ormat Nevada, Inc.) CONDENSEDCONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)

|                                                                                        |  |                               |         |         |  |        |          |         |  |  |
|----------------------------------------------------------------------------------------|--|-------------------------------|---------|---------|--|--------|----------|---------|--|--|
|                                                                                   |  | NineMonths Ended September30, |
|                                                                                   |  | 2005                          |         | 2004    |
|                                                                                   |  | (dollarsin thousands)         |
| **Cash flows from operatingactivities:**                                               |  |                          |    |    |  |   |     |    |
| Net income(loss)                                                                       |  | $                             | (200    | )  |  | $      | 2,148    |    |
| Adjustmentsto reconcile net income (loss) to net cash provided by operatingactivities: |  |                          |    |    |  |   |     |    |
| Depreciation                                                                           |  |                          | 7,388   |    |  |   | 6,688    |    |
| Amortization                                                                           |  |                          | 1,396   |    |  |   | 1,799    |    |
| Accretionof asset retirementobligation                                                 |  |                          | 280     |    |  |   | 232      |    |
| Equity inincome ofinvestee                                                             |  |                          | (1,313  | )  |  |   | (1,156   | )  |
| DistributionsfromPartnership                                                           |  |                          | 1,480   |    |  |   | 2,140    |    |
| Deferredincome tax provision(benefit)                                                  |  |                          | (920    | )  |  |   | 608      |    |
| Changes inoperating assets and liabilities , net ofacquisitions:                       |  |                          |    |    |  |   |     |    |
| Accountsreceivable                                                                     |  |                          | (1,465  | )  |  |   | (960     | )  |
| Prepaidexpenses andother                                                               |  |                          | 41      |    |  |   | 323      |    |
| Accounts payableand accruedexpenses                                                    |  |                          | 1,899   |    |  |   | 2,104    |    |
| Payableto Parent for operatingactivities                                               |  |                          | (1,597  | )  |  |   | (294     | )  |
| Netcash provided by operatingactivities                                                |  |                          | 6,989   |    |  |   | 13,632   |    |
| **Cashflows from investingactivities:**                                                |  |                          |    |    |  |   |     |    |
| Net changein restricted cash, cash equivalents and marketablesecurities                |  |                          | 3,493   |    |  |   | (37,255  | )  |
| Capitalexpenditures                                                                    |  |                          | — |    |  |   | (9,337   | )  |
| Distributionsfrompartnership                                                           |  |                          | 1,020   |    |  |   | 2,500    |    |
| Repaymentson advances toPartnership                                                    |  |                          | 95      |    |  |   | —  |    |
| Depositsand other                                                                      |  |                          | 316     |    |  |   | (2,238   | )  |
| Cashpaid foracquisition                                                                |  |                          | — |    |  |   | (74,367  | )  |
| Netcash provided by (used in) investingactivities                                      |  |                          | 4,924   |    |  |   | (120,697 | )  |
| **Cashflows from financingactivities:**                                                |  |                          |    |    |  |   |     |    |
| BorrowingsfromParent                                                                   |  |                          | 14,114  |    |  |   | 37,091   |    |
| Repaymentof long-term subordinated loan fromParent                                     |  |                          | (22,616 | )  |  |   | (108,693 | )  |
| Proceedsfrom issuance of long-termdebt                                                 |  |                          | — |    |  |   | 190,000  |    |
| Repaymentsof long-termdebt                                                             |  |                          | (2,983  | )  |  |   | (2,625   | )  |
| Deferreddebt issuancecosts                                                             |  |                          | (438    | )  |  |   | (8,708   | )  |
| Netcash provided by (used in) financingactivities                                      |  |                          | (11,913 | )  |  |   | 107,065  |    |
| Netincrease incash                                                                     |  |                          | — |    |  |   | —  |    |
| Cash atbeginning ofperiod                                                              |  |                          | 3       |    |  |   | 3        |    |
| Cashat end ofperiod                                                                    |  | $                             | 3       |    |  | $      | 3        |    |
| **Supplementalnon-cashactivity:**                                                      |  |                          |    |    |  |   |     |    |
| Payable toParent for capitalexpenditures                                               |  | $                             | 24,721  |    |  | $      | —  |    |
|                                                                                        |

Theaccompanying notes are an integral part of these condensed consolidatedfinancial statements.

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ORMATFUNDING CORP. AND SUBSIDIARIES (A Wholly Owned Subsidiary of OrmatNevada, Inc.) NOTES TO CONDENSED CONSOLIDATED FINANCIALSTATEMENTS (Unaudited)

NOTE 1 –BASIS OF PRESENTATION

These unaudited condensed consolidatedinterim financial statements of Ormat Funding Corp.("OFC") and its subsidiaries (the"Company") have been prepared in accordancewith accounting principles generally accepted in the United States ofAmerica and pursuant to the rules and regulations of the United StatesSecurities and Exchange Commission for interim financial statements.Accordingly, they do not contain all the information and notes requiredby accounting principles generally accepted in the United States ofAmerica for annual financial statements. In the opinion of management,the unaudited condensed consolidated interim financial statementsreflect all adjustments, which include only normal recurringadjustments, necessary for a fair statement of the Company'sconsolidated financial position as of September 30, 2005, consolidatedresults of operations for the three and nine-month periods endedSeptember 30, 2005 and 2004, and condensed consolidated cash flows forthe nine-month periods ended September 30, 2005 and 2004.

Thefinancial data and other information disclosed in these notes to thecondensed consolidated financial statements related to these periodsare unaudited. The results for the three and nine-month periods endedSeptember 30, 2005 are not necessarily indicative of the results to beexpected for the year ending December 31, 2005.

These condensedconsolidated interim financial statements should be read in conjunctionwith the audited consolidated financial statements and notes theretoincluded in the Company's annual report on Form 10-K for the yearended December 31, 2004. The condensed consolidated balance sheet as ofDecember 31, 2004 is derived from the audited consolidated financialstatements for the period ended December 31, 2004.

Dollaramounts in the notes to these financial statements are rounded to theclosest $1,000.

Concentration of credit risk

Financialinstruments that potentially subject the Company to a concentration ofcredit risk consist principally of temporary cash investments andaccounts receivable.

The Company places its temporary cashinvestments with high credit quality financial institutions located inthe U.S. At September 30, 2005 and December 31, 2004, the Company haddeposits in one U.S. financial institution, in which deposits werefederally insured up to $100,000 per account.

All of theCompany's revenues, and the related receivable balances, areearned from two power companies: Southern California Edison Company("SCE") and Sierra Pacific Power Company("SPPC"). SCE accounted for 63% and52% of the Company's revenues for the three and nine-monthperiods ended September 30, 2005 compared to 63% and 57%of the Company's revenues for the three and nine-month periodsended September 30, 2004. SPPC accounted for 37% and 48%of the Company's revenues for the three and nine-month periodsended September 30, 2005 compared to 37% and 43% of theCompany's revenues for the three and nine-month periods endedSeptember 30, 2004. The Company performs ongoing credit evaluations ofits customers' financial condition. The Company has historicallybeen able to collect on all of its receivable balances, andaccordingly, no provision for doubtful accounts has been made.

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES

Marketablesecurities

Marketable securities consist of debt securities(preferred auction rated securities). The Company accounts for suchsecurities in accordance with Statement of Financial AccountingStandards ("SFAS") No. 115, Accounting forCertain Investments in Debt and Equity Securities. The Company

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ORMATFUNDING CORP. AND SUBSIDIARIES (A Wholly Owned Subsidiary of OrmatNevada, Inc.) NOTES TO CONDENSED CONSOLIDATED FINANCIALSTATEMENTS (Unaudited)

determines the appropriate classification ofall marketable securities as held-to-maturity, available-for-sale ortrading at the time of the purchase and re-evaluates suchclassification at each balance sheet date. At September 30, 2005, allof the Company's investments in marketable securities wereclassified as available-for-sale securities and as a result, werereported at their fair value upon the quoted market prices of suchsecurities at quarter end. Net unrealized gains or losses are reportedas a component of accumulated other comprehensive income or loss instockholder's equity. Net realized gains or losses on tradingsecurities are reported in interest income. The net unrealized gains atSeptember 30, 2005 were $12,000, net of related taxes of $7,000.

Comprehensive income reporting

The Company accounts forcomprehensive income in accordance with SFAS No. 130, ReportingComprehensive Income, which requires comprehensive income and itscomponents to be reported when a company has items of othercomprehensive income. Comprehensive income includes net income plusother comprehensive income, which for the Company consists ofunrealized gains or losses on marketable securities available-for-sale,net of related taxes.

New accounting pronouncements

SFAS No. 153 – Exchange of Nonmonetary Assets

InDecember 2004, the Financial Accounting Standards Board("FASB") issued SFAS No. 153, Exchanges ofNonmonetary Assets – An Amendment of APB Opinion No. 29. SFASNo. 153 amends APB Opinion No. 29, Accounting for NonmonetaryTransactions. The amendments made by SFAS No. 153 are based on theprinciple that exchanges of nonmonetary assets should be measured basedon the fair value of the assets exchanged. Further, the amendmentseliminate the exception for nonmonetary exchanges of similar productiveassets and replace it with a general exception for exchanges ofnonmonetary assets that do not have commercial substance. Theprovisions in SFAS No. 153 are effective for nonmonetary assetexchanges occurring in fiscal periods beginning after June 15, 2005(July 1, 2005 for the Company). Early application of SFAS No. 153 ispermitted. The provisions of SFAS No. 153 shall be appliedprospectively. The Company does not expect SFAS No. 153 to have amaterial impact on its results of operations and financial position infuture periods.

FIN No. 47 – Accounting for ConditionalRetirement Obligations, an Interpretation of FASBStatement No .143

In March of 2005, FASB issued FASB InterpretationNo.  47, Accounting for Conditional RetirementObligations, and an Interpretation of FASB Statement No.143("FIN No.  47"), which requirescompanies to recognize a liability for the fair value of a legalobligation to perform asset-retirement activities that are conditionalon a future event, if the amount can be reasonably estimated. FIN No.47 is effective no later than the end of fiscal years ending afterDecember 15, 2005 (December 31, 2005 for the Company). Retrospectiveapplication for interim financial information is permitted but is notrequired. The Company must adopt FIN  No. 47 by the end of 2005.Early adoption of FIN No. 47 is encouraged. The Company does not expectFIN No. 47 to have an impact on its results of operations and financialposition in future periods.

SFAS No. 154 – AccountingChanges and Error Corrections

In June 2005, the FASB issuedSFAS No. 154, Accounting Changes and Error Corrections. SFAS No.154 replaces APB Opinion No. 20, Accounting Changes and FAS No. 3,Reporting Accounting Changes in Interim Financial Statements. SFASNo. 154 requires that a voluntary change in accounting 

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ORMATFUNDING CORP. AND SUBSIDIARIES (A Wholly Owned Subsidiary of OrmatNevada, Inc.) NOTES TO CONDENSED CONSOLIDATED FINANCIALSTATEMENTS (Unaudited)

principle be applied retrospectively with allprior period financial statements presented on the new accountingprinciple. SFAS No. 154 also requires that a change in method ofdepreciating or amortizing a long-lived non-financial asset beaccounted for prospectively as a change in estimate, and correction oferrors in previously issued financial statements should be termed arestatement. SFAS No. 154 is effective for accounting changes andcorrection of errors made in fiscal years beginning after December 15,2005 (January 1, 2006 for the Company). The Company does not expectSFAS No. 154 to have a material impact on its results of operations andfinancial position in future periods.

NOTE 3 –INVESTMENT IN PARTNERSHIP

The Company has a 50% interestin the Mammoth Project, which is comprised of three geothermal powerplants located near the city of Mammoth, California. A $9.3 millionbasis difference is amortized over the remaining useful life of theproperty, plant and equipment and the power purchase agreements, whichrange from 12 to 17 years. The Company's Parent operates andmaintains the geothermal power plants under an operating andmaintenance ("O&M") agreement. TheCompany's 50% ownership interest in Mammoth is accountedfor under the equity method of accounting as the Company has theability to exercise significant influence, but not control, overMammoth.

The condensed financial position and results ofoperations of Mammoth are summarized below:

|                          |  |                   |        |                  |  |        |        |        |  |  |
|--------------------------|--|-------------------|--------|------------------|--|--------|--------|--------|--|--|
|                     |  | September30, 2005 |        | December 31,2004 |
|                     |  | (inthousands)     |
| Condensed balancesheets: |  |              |   |             |  |   |   |   |
| Currentassets            |  | $                 | 11,761 |             |  | $      | 11,088 |   |
| Non-currentassets        |  |              | 82,526 |             |  |   | 83,944 |   |
| Currentliabilities       |  |              | 1,765  |             |  |   | 924    |   |
| Non-currentliabilities   |  |              | 3,844  |             |  |   | 3,774  |   |
| Partners'Capital         |  |              | 88,678 |             |  |   | 90,334 |   |
|                     |  |              |   |             |  |   |   |   |
|                          |

|                                                |  |                               |        |         |  |        |        |         |  |  |
|------------------------------------------------|--|-------------------------------|--------|---------|--|--------|--------|---------|--|--|
|                                           |  | NineMonths Ended September30, |
|                                           |  | 2005                          |        | 2004    |
|                                           |  | (inthousands)                 |
| Condensed statements ofoperations:             |  |                          |   |    |  |   |   |    |
| Revenues                                       |  | $                             | 12,207 |    |  | $      | 12,071 |    |
| Grossmargin                                    |  |                          | 3,486  |    |  |   | 3,049  |    |
| Netincome                                      |  |                          | 3,344  |    |  |   | 2,840  |    |
| Company'sequity in income ofMammoth:           |  |                          |   |    |  |   |   |    |
| 50% ofMammoth netincome                        |  | $                             | 1,672  |    |  | $      | 1,420  |    |
| Plusamortization of the equity basisdifference |  |                          | 445    |    |  |   | 445    |    |
|                                           |  |                          | 2,117  |    |  |   | 1,865  |    |
| Lessincometaxes                                |  |                          | (804   | )  |  |   | (709   | )  |
| Total                                          |  | $                             | 1,313  |    |  | $      | 1,156  |    |
|                                                |

NOTE4 – SENIOR SECURED NOTES

On February 13, 2004, theCompany completed the issuance of $190.0 million81⁄4% senior secured notes (the"Notes" or "Senior SecuredNotes") pursuant to an exempt offering under Rule 144A andRegulation S of the Securities Act of 1933, as amended (the"Offering"), from which it received the

10

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ORMATFUNDING CORP. AND SUBSIDIARIES (A Wholly Owned Subsidiary of OrmatNevada, Inc.) NOTES TO CONDENSED CONSOLIDATED FINANCIALSTATEMENTS (Unaudited)

net cash proceeds of approximately $179.7million after deduction of deferred bond issuance costs ofapproximately $10.3 million. Such net proceeds have been included indeferred financing costs at December 31, 2004. The Notes have a finalmaturity date of December 30, 2020. Principal and interest on the Notesare payable in semi-annual payments that commenced on June 30, 2004.The Notes are collateralized by substantially all of the assets of theCompany and fully and unconditionally guaranteed by all of the whollyowned subsidiaries of the Company, and (with certain exceptions) by allreal property, contractual rights, revenues and bank accounts,intercompany notes, certain insurance policies and guarantees of theCompany. There are various restrictive covenants under the Notes, whichinclude limitations on additional indebtedness and payment ofdividends.

The Company may redeem the Notes, in whole or inpart, at any time at redemption price equal to the principal amount ofthe Notes to be redeemed plus accrued interest, premium and liquidateddamages, if any, plus a "make-whole" premium.Upon certain events, as defined in the indenture governing the Notes,the Company may be required to redeem a portion of the Notes at aredemption price ranging from 100% to 101% of theprincipal amount of the Notes being redeemed plus accrued interest,premium and liquidated damages, if any.

A registration statementon Form S-4 relating to the Notes was declared effective by theSecurities and Exchange Commission on February 9, 2005. Pursuant to theregistration statement, the Company made an offer to the holders of theNotes to exchange them for publicly registered exchange notes withsubstantially identical terms until March 11, 2005. On March 16, 2005the exchange offer was completed.

As required under the terms ofthe Notes, the Company has restricted cash accounts, consisting of thefollowing:

Galena's constructionreserve

As required under the terms of the Notes,the Company set aside approximately $25.8 million (the balance atSeptember 30, 2005 is $0.7 million), to replace the existing equipmentat the Steamboat 1/1A project with more efficient equipment, in orderto optimize the geothermal resources available. After such replacement,the Company will rename the Steamboat 1/1A project as the Galenaproject. The Company has completed the construction and expects theproject to achieve commercial operations by the end of 2005.

Debt service reserve

The Companymaintains an account, which may be funded by cash or backed by lettersof credit (see Note 5), to fund an amount sufficient to pay scheduleddebt service amounts, including principal and interest, due under theterms of the Notes in the following six months. As of September 30,2005, the balance of such account was $10.8 million in cash.

Revenue reserve

The Companydeposits all revenues received into the revenue account. Such amountsare used to pay operating expenses and fund the debt service reserveaccount, but the funds are only available to the Company uponsubmission of draw requests by the Company to the bank. As such amountsare not fully unrestricted to use by the Company, they have beenclassified as restricted (current) in the balance sheets. As ofSeptember 30, 2005, the balance of such account was $4.3 million.

The payment obligation under the Notes are guaranteed by ORNI 1 LLC("ORNI 1"), ORNI 2 LLC ("ORNI2"), ORNI 7 LLC ("ORNI 7"),OrMammoth Inc. ("OrMammoth"), and Ormesa LLC

11

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ORMATFUNDING CORP. AND SUBSIDIARIES (A Wholly Owned Subsidiary of OrmatNevada, Inc.) NOTES TO CONDENSED CONSOLIDATED FINANCIALSTATEMENTS (Unaudited)

("Ormesa"), allwholly-owned subsidiaries of the Company, as of September 30, 2005.Such guarantees are full, unconditional and joint and several. TheCompany's sole purpose is to hold 100% ownership interestin ORNI 1, ORNI 2, ORNI 7, Ormesa, and OrMammoth, and the Company doesnot have any independent assets or operations. ORNI 1 and ORNI2's sole purpose is to each hold a 50% ownership interestin Brady Power Partners. ORNI 7's sole purpose is to hold100% ownership interest in Steamboat Geothermal LLC andSteamboat Development Corp. OrMammoth's sole purpose is to hold a50% ownership interest in Mammoth-Pacific L.P.

NOTE 5– COMMITMENTS AND CONTINGENCIES

LOCAgreement

The Parent has a letter of credit and loanagreement ("LOC Agreement") with HudsonUnited Bank pursuant to which the bank agreed to issue one or moreletters of credit for an aggregate amount of up to $15.0 million. TheLOC Agreement expires on June 30, 2007, which expiry date shall beextended for successive one-year periods unless notice is provided byeither the Parent or the bank to the contrary. In the event that thebank is required to pay on a letter of credit drawn by the beneficiarythereof, such letter of credit converts to a loan, bearing interest atLIBOR plus 4.0%, to be repaid in equal installments at the endof each of the next four quarters. There are various restrictivecovenants in the LOC Agreement, which include maintaining certainlevels of tangible net worth, leverage ratio, and minimum coverageratio. At December 31, 2004, letters of credit amounting to $10.8million were issued under the LOC Agreement, which were used to replacecash on deposit in reserve funds as a pledge against the Notes. As ofSeptember 30, 2005, such letters of credit have not been renewed by theParent.

Contingencies

In response to an orderissued by a California State Court of Appeals, the California PublicUtilities Commission ("CPUC") has commencedan administrative proceeding in order to address short run avoided cost("SRAC") pricing for Qualifying Facilitiesfor the period spanning from December 2000 to March 2001. The courtdirected that the CPUC modify SRAC pricing on a retroactive basis tothe extent that the CPUC determined that SRAC prices were notsufficiently "accurate" or"correct." On February 15, 2005, the CPUCissued a draft decision affirming that SRAC pricing during the disputedperiod were corrected and compliant with the Public Utility RegulatedPolicies Act ("PURPA") requirements and thatno retroactive adjustments are warranted. Comments on the draft may befiled and a final decision from the CPUC has not yet been issued. Ifthe SRAC prices charged during the period in question were determinedby the CPUC to not be "accurate" or"correct," retroactive price adjustmentscould be required for any of the Company's Qualifying Facilitiesin California whose payments are tied to SRAC pricing, including theMammoth and Ormesa projects. Currently it is not possible to predictthe final outcome of such proceeding; however, any retroactive priceadjustments required to be made in relation to any of theCompany's projects may require such projects to make refundpayments or charge less for future sales, which could materially andadversely affect the business, financial condition, future results andcash flow of the Company.

In connection with the power purchaseagreements for the Ormesa project, Southern California Edison Company("SCE") has challenged the contract rate forthe power supplied by the GEM 2 and GEM 3 plants to the Ormesa projectfor auxiliary purposes. SCE contends that California ISO real-timeprices should apply, while management believes that SP-15 prices quotedby NYMEX should apply. According to SCE's estimation, the amountunder dispute is approximately $2.5 million. The parties reached averbal understanding to resolve the dispute. As part of theunderstanding the parties entered into an interim agreement effectiveNovember 1, 2005, pursuant to which SCE agreed to 

12

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ORMATFUNDING CORP. AND SUBSIDIARIES (A Wholly Owned Subsidiary of OrmatNevada, Inc.) NOTES TO CONDENSED CONSOLIDATED FINANCIALSTATEMENTS (Unaudited)

purchase all the power generated by GEM 2 andGEM 3 at a rate of 5.37 cents per kWh, which is the same rate as theOrmesa energy rate. The Company is still negotiating a final settlementagreement and anticipates signing such agreement in the near future.Management believes that such settlement agreement will not have amaterial financial impact on the Company. Steamboat Geothermal LLC("SG") is a defendant in litigation relatingto a dispute over amounts owed to the plaintiffs under certainoperating agreements. SG has initiated settlement discussions with theplaintiff and the Company believes that any outcome will not have amaterial impact on the Company's results of operations.

The Company is a defendant in various other legal suits in theordinary course of business. It is the opinion of the Company'smanagement that the expected outcome of these matters, individually orin the aggregate, will not have a material effect on the results ofoperations and financial condition of the Company.

Certain ofthe Company's projects are subject to contested Federal EnergyRegulatory Commission ("FERC") rulingswhereby an adverse outcome could result in the refunding of a portionof previously recognized revenues to customers and/or a reduction infuture revenues from those projects. The outcome of these matterscannot be predicted at this time.

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ITEM2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIALCONDITION AND RESULTS OF OPERATIONS

This quarterly report onForm l0-Q contains forward-looking statements within the meaning of thePrivate Securities Litigation Reform Act of 1995. These forward lookingstatements are based upon our current expectations and projectionsabout future events. When used in this report, the words"believe","anticipate","intend","estimate","expect", "should","may" and similar expressions, or thenegative of such words and expressions, are intended to identifyforward-looking statements, although not all forward-looking statementscontain such words or expressions. The forward-looking statements inthis report are primarily located in this Item 2:"Management's Discussion and Analysis of FinancialCondition and Results of Operations", but may be found inother locations as well. Such statements reflect our judgment as of thedate of this quarterly report with respect to future events, theoutcome of which is subject to certain risks and uncertainties,including but not limitedto:

|              |                                                                                        |
|--------------|----------------------------------------------------------------------------------------|
| •  | significant considerations, risksand uncertainties discussed in this quarterly report; |

|              |                                                                                                   |
|--------------|---------------------------------------------------------------------------------------------------|
| •  | operating risks, including equipmentfailures and the amounts and timing of revenues and expenses; |

|              |                                                                                                           |
|--------------|-----------------------------------------------------------------------------------------------------------|
| •  | geothermal resource risk (such as theheat content of the reservoir, useful life and geologicalformation); |

|              |                                                                                                                |
|--------------|----------------------------------------------------------------------------------------------------------------|
| •  | environmentalconstraints on operations and environmental liabilities arising out ofpast or present operations; |

|              |                                 |
|--------------|---------------------------------|
| •  | projectdelays or cancellations; |

|              |                                                                  |
|--------------|------------------------------------------------------------------|
| •  | financialmarket conditions and the results of financing efforts; |

|              |                                                                                                                         |
|--------------|-------------------------------------------------------------------------------------------------------------------------|
| •  | political, legal, regulatory,governmental, administrative and economic conditions and developmentsin the United States; |

|              |                                                                               |
|--------------|-------------------------------------------------------------------------------|
| •  | theenforceability of the long-term power purchase agreements for ourprojects; |

|              |                            |
|--------------|----------------------------|
| •  | contract counterpartyrisk; |

|              |                                     |
|--------------|-------------------------------------|
| •  | weather and other naturalphenomena; |

|              |                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | the impact of recent andfuture federal and state regulatory proceedings and changes, includinglegislative and regulatory initiatives regarding deregulation andrestructuring of the electric utility industry and incentives for theproduction of renewable energy, changes in environmental and other lawsand regulations to which our company is subject, as well as changes inthe application of existing laws and regulations; |

|              |                                |
|--------------|--------------------------------|
| •  | current and future litigation; |

|              |                                                                                                                                                                                             |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | competition from other similargeothermal energy projects, including any such new geothermal energyprojects developed in the future, and from alternative electricityproducing technologies; |

|              |                                                                                  |
|--------------|----------------------------------------------------------------------------------|
| •  | the effectof and changes in economic conditions in the areas in which weoperate; |

|              |                                                                                                                   |
|--------------|-------------------------------------------------------------------------------------------------------------------|
| •  | market or businessconditions and fluctuations in demand for energy or capacity in themarkets in which we operate; |

|              |                                                                                                                                                                                                |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | thedirect or indirect impact on our company's business resultingfrom terrorist incidents or responses to such incidents, including theeffect on the availability of and premiums on insurance; |

|              |                                                                                                                                                                                                                                |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | the risk factors set forth in our annualreport on Form 10-K for the year ended December 31, 2004 and anyupdates contained herein which may have a significant impact on ourbusiness, operating results or financial condition; |

|              |                                                                                                                                                                                                                  |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | other uncertainties which are difficultto predict or beyond our control and the risk that we incorrectlyanalyze these risks and forces or that the strategies we develop toaddress them could be successful; and |

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|              |                                                                                                                    |
|--------------|--------------------------------------------------------------------------------------------------------------------|
| •  | other risksand uncertainties detailed from time to time in our filings with theSecurities and Exchange Commission. |

Investors are cautioned thatthese forward-looking statements are inherently uncertain. Should oneor more of these risks or uncertainties materialize, or shouldunderlying assumptions prove incorrect, actual results or outcomes mayvary materially from those described herein. We undertake no obligationto update forward-looking statements even though our situation maychange in the future. Given these risks and uncertainties, readers arecautioned not to place undue reliance on such forward-lookingstatements.

The following discussion and analysis of ourfinancial condition and results of operations should be read togetherwith our condensed consolidated financial statements and related notesincluded elsewhere in this report and the "ManagementDiscussion and Analysis of Financial Conditions of Results ofOperations – Risk Factors" section of our annualreport on Form 10-K for the year ended December 31, 2004 as well asthose set forth in our press releases, reports and other filings madewith Securities and Exchange Commission.

General

Overview

We are engaged in the geothermal energypower business. We were formed in December 2001, to develop, constructand own, through certain direct and indirect subsidiaries, clean,environmentally friendly geothermal power projects in the UnitedStates. Our business currently consists of our investment in powerplants producing electricity from geothermal resources. Our business ischaracterized by relatively predictable revenues generated by our powerplants pursuant to long-term power purchase agreements, with termswhich are generally up to 20 years.

During the three andnine-month periods ended September 30, 2005, our total revenuesgenerated by our wholly-owned power plants were $14.9 million and $43.3million, respectively. In addition, our 50% share in the Mammothproject's revenues in these periods was $2.2 million and $6.1million, respectively.

During the three and nine-month periodsended September 30, 2005, our projects generated 188,155 MWh and667,133 MWh, respectively, which includes our 50% share in theMammoth project.

When making decisions about potentialacquisitions or the development of new projects, our managementtypically focuses on the internal rate of return of the relevantinvestment, relevant technical and geological matters and otherrelevant business considerations. Additionally, our managementevaluates our operating projects based on the performance of suchprojects in terms of revenues and expenses in contrast to projects thatare under development, which our management evaluates based on costsattributable to each such project.

As a result of theacquisition of Steamboat 2/3 Project which was completed in February2004, our results for the nine months ended September 30, 2005 may notbe comparable with our results for the same period in 2004.

Recent Developments

In connection with the powerpurchase agreements for the Ormesa project, Southern California EdisonCompany ("SCE") has challenged the contractrate for the power supplied by the GEM 2 and GEM 3 plants to the Ormesaproject for auxiliary purposes. SCE contends that California ISOreal-time prices should apply, while management believes that SP-15prices quoted by NYMEX should apply. According to SCE'sestimation, the amount under dispute is approximately $2.5 million. Theparties reached a verbal understanding to resolve the dispute. As partof the understanding the parties entered into an interim agreementeffective November 1, 2005, pursuant to which SCE agreed to purchaseall the power generated by GEM 2 and GEM 3 at a rate of 5.37 cents perkWh, which is the same rate as the Ormesa energy rate. We are stillnegotiating a final settlement agreement and anticipate signing suchagreement in the near future. Management believes that such settlementagreement will not have a material financial impact on us.

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On May 6, 2005, we completed negotiationsfor a new 25-year power purchase agreement with Southern CaliforniaPublic Power Authority ("SCPPA") for thepurchase of energy from our Ormesa project The parties initiallyexpected that 10 MW of power will be delivered from Ormesa to SCPPA fora fixed price of $57.50/MWh, but the parties have not signed adefinitive agreement. While we originally expected to supply 10 MW fromthe Ormesa project, we have advised SCPPA that we will probably need tolocate an alternative source of supply for purposes of this powerpurchase agreement.

On March 16, 2005, we completed an offeringto exchange $1,000 principal amount of our Senior Secured Notes thatwere registered under the Securities Act of 1933, as amended, for each$1,000 principal amount of our then outstanding Senior Secured Notesthat were issued on February 13, 2004 in a capital markets offeringsubject to Rule 144A and Regulation S of the Securities Act of 1933, asamended. As of September 30, 2005, there were $186.5 million inaggregate principal amount of Senior Secured Notes outstanding.

Trends and Uncertainties

The geothermal industry inthe United States has historically experienced significant growthfollowed by a consolidation of owners and operators of geothermal powerplants. During the 1990s, growth and development in the geothermalindustry occurred primarily in foreign markets and only minimal growthand development occurred in the United States. Since 2001, there hasbeen increased demand for energy generated from geothermal resources inthe United States as production costs for electricity generated fromgeothermal resources have become more competitive relative to fossilfuel generation due to increasing gas prices and as a result of newlyenacted legislative and regulatory incentives, such as state renewableportfolio standards and such as the production tax credit bill, thatallow owners of geothermal power plants to claim credits on electricitysold during the first five or 10 years after a project achievescommercial operation, depending on when the project is put intoservice. We see the increasing demand for energy generated fromgeothermal and other renewable resources in the United States and thefurther introduction of renewable portfolio standards and theproduction tax credit as the most significant trends affecting ourindustry today and in the immediate future. Our operations and thetrends that from time to time impact our operations are subject tomarket cycles.

Although other trends, factors and uncertaintiesmay impact our operations and financial condition, including many thatwe do not or cannot foresee, we believe that our results of operationsand financial condition for the foreseeable future will be affected bythe following trends, factors anduncertainties:

|              |                                                                                                                                                                                                                                                      |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | We expect to continueto generate all of our revenues from the sale of electricity from ourpower plants. All of our current revenues from the sale of electricityare derived from fully-contracted payments under long-term powerpurchase agreements. |

|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | The enactment ofthe Energy Policy Act of 2005, which authorizes FERC to revise PURPA soas to terminate the obligation of electric utilities to enter into newcontracts to purchase the output of a Qualifying Facility if FERC findsthat there is an accessible competitive marked for energy and capacityfrom the Qualifying Facility. The legislation does not affect existingpower purchase agreements. We do not expect this change in law toaffect our U.S. projects significantly, as all except one of thecontracts (our Steamboat 1 project, which has a contract with SierraPacific Power Company expiring in 2006) are long-term |

|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | The viability of the geothermalresources utilized by our power plants depends on various factors suchas the heat content of the geothermal reservoir, useful life of thereservoir (the term during which such geothermal reservoir hassufficient extractable fluids for our operations) and operationalfactors relating to the extraction of the geothermal fluids. Ourgeothermal power plants may experience an unexpected decline in thecapacity of their respective geothermal wells. Such factors, togetherwith the possibility that we may fail to find commercially viablegeothermal resources in the future, represent significant uncertaintieswe face in connection with our operations. |

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|              |                                                                                                                                                                                                                                                                 |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | We haveexperienced significant growth through the acquisition of the Steamboat2/3 project on February 11, 2004 and we expect to experience additionalgrowth due to the enhancement of the Mammoth and Ormesa projects andthe construction of the Galenaproject. |

|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | We expect to continue tobenefit from the increasing demand for renewable energy as a result offavorable legislation adopted by California and Nevada (where all ofour projects are located). In both states, relevant legislationcurrently requires that an increasing percentage of the electricitysupplied by electric utility companies operating in such states bederived from renewable energy resources until certain pre-establishedgoals are met. We expect that the additional demand for renewableenergy from utilities in such states will create additionalopportunities for us to expand existingprojects. |

|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | The United States extendeda tax subsidy and increased the amount for companies that usegeothermal steam or fluid to generate electricity as part of the EnergyPolicy Act of 2005 that became law on August 8, 2005. The tax subsidyis a "production tax credit" of 1.9 cents perkWh. It may be claimed on the electricity output of new geothermalpower plants put into service during a "windowperiod" that runs from October 23, 2004 through December31, 2007. The window had been scheduled to close at the end of thisyear, but the new act extended it. Credit may be claimed for five yearson the output from any geothermal power plant put into service duringthe first part of the window period from October 23, 2004 to August 8,2005. Plants put into service during the remaining of the"window period" qualify for 10 years of taxcredits. Production tax credits may improve our financial results. We,as the owner of any new projects that might be put into service duringthis window period, will have to choose between this production taxcredit and a 10% investment tax credit. The power purchaseagreements in connection with our projects allow the power purchaser tobenefit from part of such production tax credits, if and when theybecome available to us. |

Revenues

All of ourrevenues are, and will continue to be, derived from payments under oursubsidiaries' power purchase agreements. Equity distributions dueto us from our 50% interest in the Mammoth project are dependentupon payments under its power purchase agreements. Such revenues aresubject to seasonal variations, as more fully described below in thesection entitled "Seasonality".

Mostof our power purchase agreements provide for the payment of capacityand energy payments. Generally, capacity payments are paymentscalculated based on the amount of time that our power plants areavailable to generate electricity. Some of our power purchaseagreements provide for bonus capacity payments in the event that we areable to exceed certain target levels and the potential forfeiture ofpayments if we fail to meet minimum target levels. Energy payments, onthe other hand, are payments calculated based on the amount ofelectrical energy delivered to the relevant power purchaser at adesignated delivery point. The rates applicable to such payments areeither fixed (subject, in certain cases, to certain adjustments) or arebased on the relevant power purchaser's short run avoided costs(the incremental costs that the power purchaser avoids by not having togenerate such electrical energy itself or purchase it from others).

As required by Emerging Issues Task Force No. 01-8, DeterminingWhether an Arrangement Contains a Lease, we assessed all of ourpower purchase agreements acquired since July 1, 2003, and concludedthat the agreements related to our Steamboat 2/3 project contained alease element requiring lease accounting. Accordingly, revenues relatedto the lease element of the agreements are presented as"lease portion of energy and capacity"revenue, with the remaining revenue related to the production anddelivery of the energy presented as "energy andcapacity" revenue in our financial statements. As thelease revenue and the energy and capacity revenues are derived from thesame arrangement, we analyze such revenues, and related costs, on acombined basis for management purposes.

Seasonality

The demand for the electricity generated by our projects and theprices paid for such electricity pursuant to our power purchaseagreements are subject to seasonal variations. The demand for

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electricity from the Mammoth project and theOrmesa project is the highest in the summer months of June throughSeptember, because the power purchaser for those projects, SouthernCalifornia Edison Company, delivers more electricity to its Californiamarkets during such period in order to meet demand for air conditioningand other energy-intensive cooling systems utilized during such summermonths. The demand for electricity from the Steamboat complex and theBrady project is more balanced, consisting of both summer and winterpeaks that reflect the greater temperature variation in Nevada. InCalifornia, the capacity rates payable pursuant to the applicable powerpurchase agreement are higher in the summer months and as a result wereceive higher revenues during such months. In contrast, there are nosignificant changes in prices during the year payable pursuant to ourpower purchase agreement for the Nevada projects. In the winter, dueprincipally to the lower ambient temperature, our power plants producemore energy and as a result we receive higher energy revenues. However,the higher capacity payments payable by the power purchaser inCalifornia in the summer months as a result of the increase in demandand in prices has a more significant impact on our revenues than thatof the higher energy revenues generally generated in winter due toincreased efficiency, and as a result our revenues are generally higherin the summer than in the winter.

Expenses

Theprincipal expenses attributable to each of our operating projectsinclude expenses under the operations and maintenance agreementsbetween each project and Ormat Nevada, such as salaries, leaseexpenses, royalties, geothermal fluid supply, startup and auxiliaryelectricity purchases, property tax and insurance, and, for theCalifornia projects, transmission charges, scheduling charges and sweetwater purchases for plant cooling towers.

The principal projectexpenses under the operations and maintenance agreementinclude:

|              |                                                                                                                                                                                                                                                                                                                                                                                               |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | For each project other thanthe Mammoth project, a fixed monthly fee, subject to adjustments basedon the Consumer Price Index, Urban Consumers-West based on January 1 ofeach year, which covers all costs associated with staffing,administration, ordinary maintenance and certain incidental costs ateach plant and routine replacement of parts and consumables (other thanfor the wells). |

|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | For each projectother than the Mammoth project, actual cost and expenses plus a10% mark-up for certain "extraordinary operationexpenses". These extraordinary operation expenses includeall major corrective maintenance work, any modifications, additions, ordeletions to the projects' equipment, any cost incurred as aresult of any change in law, authorizations, power purchase agreements,plant connection agreement or in exercise of emergency managementpowers, any cost incurred by Ormat Nevada with respect to ourenvironmental responsibilities, and work in connection with thegeothermal fields and wells described in the operations and maintenanceagreement. |

|              |                                                                                                                                                                                                                                                                                               |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | Payments to governmentagencies and private parties for the use of geothermal resources andsite leases where plants are situated are recorded as a component ofcost of revenues. For the three and nine-month periods ended September30, 2005, such expenses were approximately 3% ofrevenues. |

|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | Royalty payments arepayments made as compensation for the right to use certain geothermalresources and are included as a component of cost of revenues and arepaid as a percentage of the revenues derived from the associatedgeothermal rights. For the three and nine- month periods endedSeptember 30, 2005, royalties were approximately 2.8% and3.5% of revenues, respectively. Under a fluid supply agreement,Brady pays to Western States a royalty payment of 1% of the netrevenues of the Desert Peak 1 plant derived from the sale ofelectricity under the Brady project's power purchase agreementand reimburses Western States for certain costs. These payments areincluded as a component of cost of revenues. |

CriticalAccounting Policies

A comprehensive discussion of ourcritical accounting policies is included in the"Management's Discussion and Analysis of FinancialCondition and Results of Operations" section of our annualreport on Form 10-K for the year ended December 31, 2004.

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Marketable Securities

We investour excess cash in marketable securities, which consist of debtsecurities (preferred auction rated securities), and account for suchsecurities in accordance with Statement of Financial AccountingStandards ("SFAS") No. 115, Accounting forCertain Investments in Debt and Equity Securities. We determine theappropriate classification of all marketable securities asheld-to-maturity, available-for-sale or trading at the time of thepurchase and re-evaluate such classification at each balance sheetdate. At September 30, 2005, all of our investments in marketablesecurities were classified as available-for-sale securities and as aresult, were reported at their fair value upon the quoted market pricesof such securities at quarter end. Net unrealized gains or losses onmarketable securities classified as available-for-sale are reported asa component of accumulated other comprehensive income instockholder's equity. Net realized gains or losses on tradingsecurities are reported in interest income.

New AccountingPronouncements

Exchange of Nonmonetary Assets

InDecember 2004, the Financial Accounting Standards Board("FASB") issued SFAS No. 153, Exchanges ofNonmonetary Assets – An Amendment of APB Opinion No. 29. SFASNo. 153 amends APB Opinion No. 29, Accounting for NonmonetaryTransactions. The amendments made by SFAS No. 153 are based on theprinciple that exchanges of nonmonetary assets should be measured basedon the fair value of the assets exchanged. Further, the amendmentseliminate the exception for nonmonetary exchanges of similar productiveassets and replace it with a general exception for exchanges ofnonmonetary assets that do not have commercial substance. Theprovisions in SFAS No. 153 are effective for nonmonetary assetexchanges occurring in fiscal periods beginning after June 15, 2005(July 1, 2005 for us). Early application of SFAS No. 153 is permitted.The provisions of SFAS No. 153 shall be applied prospectively. We donot expect SFAS No. 153 to have a material impact on our results ofoperations and financial position in future periods.

Accountingfor Conditional Retirement Obligations

In March of 2005, FASBissued FASB Interpretation No.  47, Accounting for ConditionalRetirement Obligations, an Interpretation of FASB Statement No.143("FIN No.  47"), which requirescompanies to recognize a liability for the fair value of a legalobligation to perform asset-retirement activities that are conditionalon a future event, if the amount can be reasonably estimated. FIN No.47 is effective no later than the end of fiscal years ending afterDecember 15, 2005 (December 31, 2005 for us). Retrospective applicationfor interim financial information is permitted but is not required.Early adoption of FIN No. 47 is encouraged. We not expect FIN No. 47 tohave an impact on our results of operations and financial position infuture periods.

Accounting Changes and Error Corrections

In June 2005, the FASB issued SFAS No. 154, Accounting Changesand Error Corrections. SFAS No. 154 replaces APB Opinion No. 20,Accounting Changes and FAS No. 3, Reporting Accounting Changes inInterim Financial Statements. SFAS No. 154 requires that avoluntary change in accounting principle be applied retrospectivelywith all prior period financial statements presented on the newaccounting principle. SFAS No. 154 also requires that a change inmethod of depreciating or amortizing a long-lived non-financial assetbe accounted for prospectively as a change in estimate, and correctionof errors in previously issued financial statements should be termed arestatement. SFAS No. 154 is effective for accounting changes andcorrection of errors made in fiscal years beginning after December 15,2005 (January 1, 2006 for us). We do not expect SFAS No. 154 to have amaterial impact on our results of operations and financial position infuture periods.

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Results of Operations

Ourunaudited historical operating results in dollars and as a percentageof total revenues are presented in the tablesbelow.

|                                                                   |  |                                |         |                              |  |        |        |         |  |        |         |         |  |        |         |         |  |  |
|-------------------------------------------------------------------|--|--------------------------------|---------|------------------------------|--|--------|--------|---------|--|--------|---------|---------|--|--------|---------|---------|--|--|
|                                                              |  | ThreeMonths EndedSeptember 30, |         | Nine MonthsEndedSeptember30, |
|                                                              |  | 2005                           |         | 2004                         |  | 2005   |        | 2004    |
|                                                              |  | (inthosands)                   |         | (inthosands)                 |
| **Statements of OperationsHistoricalData:**                       |  |                           |    |                         |  |   |   |    |  |   |    |    |  |   |    |    |
| Revenues:                                                         |  |                           |    |                         |  |   |   |    |  |   |    |    |  |   |    |    |
| EnergyandCapacity                                                 |  | $                              | 13,200  |                         |  | $      | 13,815 |    |  | $      | 35,812  |    |  | $      | 36,532  |    |
| Leaseportion of energy andcapacity                                |  |                           | 1,741   |                         |  |   | 2,503  |    |  |   | 7,509   |    |  |   | 6,674   |    |
| Totalrevenues                                                     |  |                           | 14,941  |                         |  |   | 16,318 |    |  |   | 43,321  |    |  |   | 43,206  |    |
|                                                              |  |                           |    |                         |  |   |   |    |  |   |    |    |  |   |    |    |
| Costofrevenues:                                                   |  |                           |    |                         |  |   |   |    |  |   |    |    |  |   |    |    |
| EnergyandCapacity                                                 |  |                           | 8,946   |                         |  |   | 7,694  |    |  |   | 28,973  |    |  |   | 24,639  |    |
| Leaseportion of energy andcapacity                                |  |                           | 1,372   |                         |  |   | 1,332  |    |  |   | 3,805   |    |  |   | 3,195   |    |
| Totalcost ofrevenues                                              |  |                           | 10,318  |                         |  |   | 9,026  |    |  |   | 32,778  |    |  |   | 27,834  |    |
|                                                              |  |                           |    |                         |  |   |   |    |  |   |    |    |  |   |    |    |
| Grossmargin                                                       |  |                           | 4,623   |                         |  |   | 7,292  |    |  |   | 10,543  |    |  |   | 15,372  |    |
|                                                              |  |                           |    |                         |  |   |   |    |  |   |    |    |  |   |    |    |
| Generaland administrativeexpenses                                 |  |                           | 371     |                         |  |   | 506    |    |  |   | 1,259   |    |  |   | 1,102   |    |
|                                                              |  |                           |    |                         |  |   |   |    |  |   |    |    |  |   |    |    |
| OperatingIncome                                                   |  |                           | 4,252   |                         |  |   | 6,786  |    |  |   | 9,284   |    |  |   | 14,270  |    |
|                                                              |  |                           |    |                         |  |   |   |    |  |   |    |    |  |   |    |    |
| Otherincome(expense):                                             |  |                           |    |                         |  |   |   |    |  |   |    |    |  |   |    |    |
| Interestincome                                                    |  |                           | 288     |                         |  |   | 312    |    |  |   | 625     |    |  |   | 377     |    |
| Interestexpense                                                   |  |                           | (4,120  | )                       |  |   | (5,373 | )  |  |   | (12,349 | )  |  |   | (13,154 | )  |
| Othernon-operatingincome                                          |  |                           | — |                         |  |   | 6      |    |  |   | — |    |  |   | 107     |    |
|                                                              |  |                           |    |                         |  |   |   |    |  |   |    |    |  |   |    |    |
| Income(loss ) before income taxes and equity in income ofinvestee |  |                           | 420     |                         |  |   | 1,731  |    |  |   | (2,440  | )  |  |   | 1,600   |    |
|                                                              |  |                           |    |                         |  |   |   |    |  |   |    |    |  |   |    |    |
| Incometax benefit(expense)                                        |  |                           | (161    | )                       |  |   | (659   | )  |  |   | 927     |    |  |   | (608    | )  |
| Equityin income ofinvestee                                        |  |                           | 395     |                         |  |   | 421    |    |  |   | 1,313   |    |  |   | 1,156   |    |
|                                                              |  |                           |    |                         |  |   |   |    |  |   |    |    |  |   |    |    |
|                                                              |  |                           |    |                         |  |   |   |    |  |   |    |    |  |   |    |    |
| Netincome(loss)                                                   |  | $                              | 654     |                         |  | $      | 1,493  |    |  | $      | (200    | )  |  | $      | 2,148   |    |
|                                                                   |

20

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|                                                                  |  |                                |        |                              |  |        |        |         |  |        |        |          |  |        |        |         |  |  |
|------------------------------------------------------------------|--|--------------------------------|--------|------------------------------|--|--------|--------|---------|--|--------|--------|----------|--|--------|--------|---------|--|--|
|                                                             |  | ThreeMonths EndedSeptember 30, |        | Nine MonthsEndedSeptember30, |
|                                                             |  | 2005                           |        | 2004                         |  | 2005   |        | 2004    |
| **Statementsof Operations PercentageData:**                      |  |                           |   |                         |  |   |   |    |  |   |   |     |  |   |   |    |
| Revenues:                                                        |  |                           |   |                         |  |   |   |    |  |   |   |     |  |   |   |    |
| EnergyandCapacity                                                |  |                           | 88.3   | %                       |  |   | 84.7   | %  |  |   | 82.7   | %   |  |   | 84.6   | %  |
| Leaseportion of energy andcapacity                               |  |                           | 11.7   |                         |  |   | 15.3   |    |  |   | 17.3   |     |  |   | 15.4   |    |
| Totalrevenues                                                    |  |                           | 100.0  |                         |  |   | 100.0  |    |  |   | 100.0  |     |  |   | 100.0  |    |
|                                                             |  |                           |   |                         |  |   |   |    |  |   |   |     |  |   |   |    |
| Costofrevenues:                                                  |  |                           |   |                         |  |   |   |    |  |   |   |     |  |   |   |    |
| EnergyandCapacity                                                |  |                           | 67.8   |                         |  |   | 55.7   |    |  |   | 80.9   |     |  |   | 67.4   |    |
| Leaseportion of energy andcapacity                               |  |                           | 78.8   |                         |  |   | 53.2   |    |  |   | 50.7   |     |  |   | 47.9   |    |
| Totalcost ofrevenues                                             |  |                           | 69.1   |                         |  |   | 55.3   |    |  |   | 75.7   |     |  |   | 64.4   |    |
|                                                             |  |                           |   |                         |  |   |   |    |  |   |   |     |  |   |   |    |
| Grossmargin                                                      |  |                           | 30.9   |                         |  |   | 44.7   |    |  |   | 24.3   |     |  |   | 35.6   |    |
|                                                             |  |                           |   |                         |  |   |   |    |  |   |   |     |  |   |   |    |
| Generaland administrativeexpenses                                |  |                           | 2.5    |                         |  |   | 3.1    |    |  |   | 2.9    |     |  |   | 2.6    |    |
|                                                             |  |                           |   |                         |  |   |   |    |  |   |   |     |  |   |   |    |
| OperatingIncome                                                  |  |                           | 28.5   |                         |  |   | 41.6   |    |  |   | 21.4   |     |  |   | 33.0   |    |
|                                                             |  |                           |   |                         |  |   |   |    |  |   |   |     |  |   |   |    |
| Otherincome(expense):                                            |  |                           |   |                         |  |   |   |    |  |   |   |     |  |   |   |    |
| Interestincome                                                   |  |                           | 1.9    |                         |  |   | 1.9    |    |  |   | 1.4    |     |  |   | 0.9    |    |
| Interestexpense                                                  |  |                           | (27.6  | )                       |  |   | (32.9  | )  |  |   | (28.5  | )   |  |   | (30.4  | )  |
| Othernon-operatingincome                                         |  |                           | 0.0    |                         |  |   | 0.0    |    |  |   | 0.0    |     |  |   | 0.2    |    |
|                                                             |  |                           |   |                         |  |   |   |    |  |   |   |     |  |   |   |    |
| Income(loss) before income taxes and equity in income ofinvestee |  |                           | 2.8    |                         |  |   | 10.6   |    |  |   | (5.6   | )   |  |   | 3.7    |    |
|                                                             |  |                           |   |                         |  |   |   |    |  |   |   |     |  |   |   |    |
| Incometax benefit(expense)                                       |  |                           | (1.1   | )                       |  |   | (4.0   | )  |  |   | 2.1    |     |  |   | (1.4   | )  |
| Equityin income ofinvestee                                       |  |                           | 2.6    |                         |  |   | 2.6    |    |  |   | 3.0    |     |  |   | 2.7    |    |
|                                                             |  |                           |   |                         |  |   |   |    |  |   |   |     |  |   |   |    |
| Netincome(loss)                                                  |  |                           | 4.4    | %                       |  |   | 9.2    | %  |  |   | (0.5   | %)  |  |   | 5.0    | %  |
|                                                                  |

Comparisonof the Three Months Ended September 30, 2005 and the Three Months EndedSeptember 30, 2004.

Total Revenues

Totalrevenues for the three months ended September 30, 2005 were $14.9million, which represented an 8.4% or $1.4 million decrease overtotal revenues of $16.3 million for the three months ended September30, 2004. This decrease was principally due to the Ormesa project,whose revenues for the three months ended September 30, 2005, amountedto $9.5 million, as compared with $10.3 million for the three monthsended September 30, 2004, due to a lower availability of Ormesa'swell field and due to the Steamboat project, whose revenues for thethree months ended September 30, 2005, amounted to $2.8 million, ascompared with $3.5 million for the three months ended September 30,2004, due to its production pumps failures. Such decrease was offset,partially, by an increase in the Brady project's revenues whoserevenues for the three months ended September 30, 2005, amounted to$2.7 million, as compared with $2.5 million for the three months endedSeptember 30, 2004, primarily as a result of higher energy rates.

21

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Total Cost of Revenues

Total cost of revenues for the three months ended September 30, 2005was $10.3 million, which represented a 14.3% increase over totalcost of revenues of $9.0 million for the three months ended September30, 2004. Such increase of $1.3 million is principally due to theallocation of certain general and administrative expenses to cost ofrevenues in the quarter ended September 30, 2004, as a result of newacquisitions in 2004 and 2003 and due to an increase in case of majormaintenance conducted as part of our regular operations.

General and Administrative Expenses

General andadministrative expenses for the three months ended September 30, 2005were $0.4 million compared to $0.5 million for the three months endedSeptember 30, 2004. Such decrease of $0.1 million is principally due tothe allocation of certain general and administrative expenses to costof revenues in the quarter ended September 30, 2004, the decrease waspartially offset by an increase in professional services fees as aresult of our new compliance obligations following the filing of aRegistration Statement on Form S-4.

InterestExpense

Interest expense for the three months ended September30, 2005 was $4.1 million, compared to $5.4 million for the threemonths ended September 30, 2004. The decrease was primarily due to: (i)a decrease in interest expense on the Ormesa loan as a result ofrepayment on December 31, 2004 which resulted in no interest expensefor that item for the three months ended September 30, 2005, comparedto $0.7 million for the three months ended September 30, 2004, and (ii)a decrease in interest expense as a result of capitalization ofinterest expenses of the Galena project in the amount of $0.5million.

Income Taxes

Income tax expense for thethree months ended September 30, 2005 was $0.2 million as compared withincome tax expense of $0.7 million for the three months ended September30, 2004. The effective tax rates for each of the three months endedSeptember 30, 2005 and 2004 were 38.3% and 38.0%,respectively.

Equity in Income of Investee

Equity in income of investee was $0.4 million for the three monthsended September 30, 2005 and September 30, 2004, respectively,representing our 50% ownership interest in the income ofMammoth-Pacific L.P.

Net Income

Net income forthe three months ended September 30, 2005 was $0.7 million, as comparedwith $1.5 million for the three months ended September 30, 2004. Thenet decrease of $0.8 million in net income was primarily as a result ofthe following: (i) a decrease of $2.5 million in operating incomeresulting, primarily, from the lower gross margins, (ii) a decrease of$1.2 million in net interest expenses, and (iii) a decrease of $0.5million in income tax expense resulting from the decrease in incomebefore income taxes.

Comparison of the Nine Months EndedSeptember 30, 2005 and the Nine Months Ended September 30, 2004.

Total Revenues

Total revenues for the nine monthsended September 30, 2005 were $43.3 million, which represented a0.3% or $0.1 million increase over total revenues of $43.2million for the nine months ended September 30, 2004. The increase wasprincipally due to: (i) the acquisition of the Steamboat 

22

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2/3 project on February 11, 2004, whoserevenues for the nine months ended September 30, 2005 amounted to $10.0million, as compared with $8.6 million for the nine months endedSeptember 30, 2004, and (ii) an increase in the Brady project'srevenues whose revenues for the nine months ended September 30, 2005,amounted to $8.8 million, as compared with $8.1 million for the ninemonths ended September 30, 2004, as a result of higher energy rates andadditional revenues from the sale of the project's renewableenergy credits. The increase was offset by a $1.9 million decrease inthe Ormesa project's revenues for the nine months ended September30, 2005, which amounted to $22.7 million, as compared with $24.6million for the nine months ended September 30, 2004 due to a loweravailability of the well field in the Ormesa project, as describedunder "Total Cost of Revenues".

Total Cost of Revenues

Total cost of revenues forthe nine months ended September 30, 2005 were $32.8 million, whichrepresented a 17.8% increase over total cost of revenues of$27.8 million for the nine months ended September 30, 2004. Theincrease was principally due to the acquisition of the Steamboat 2/3project, as cost of revenues for the nine months ended September 30,2005 included $6.3 million of expenses related to Steamboat 2/3project, while for the nine months ended September 30, 2004, $4.9million from the Steamboat 2/3 project were included. The remaining$3.6 million increase in cost of revenues for the nine months endedSeptember 30, 2005 was mainly due to additional costs relating to fieldmaintenance in the Ormesa project. Gross margins were 24.3% forthe nine months ended September 30, 2005 compared to 35.6% forthe nine months ended September 30, 2004. Such decrease was principallydue to a significant increase in the geothermal field costs within theOrmesa project during the second quarter of 2005 due to ahigher-than-average rate of failure of production pumps and wells. Thisfailure required us to replace a relatively large number of pumpsduring the second quarter of 2005 and to abandon one production well.We have also experienced a decrease in the gross margin of theSteamboat 2/3 project, which resulted from the timing of maintenancecosts incurred in the first quarter of 2005.

General andAdministrative Expenses

General and administrative expenses forthe nine months ended September 30, 2005 were $1.3 million as comparedwith $1.1 million for the nine months ended September 30, 2004. Theincrease of $0.2 million is due to the increased general andadministrative activity due to the acquisition of the Steamboat 2/3project on February 11, 2004 and due to an increase in professionalservices fees as a result of our new compliance obligations followingthe filing of a Registration Statement on Form S-4.

Interest Expense

Interest expense for the ninemonths ended September 30, 2005 was $12.3 million, compared to $13.2million for the nine months ended September 30, 2004. The decrease wasprimarily due to: (i) a decrease of $0.6 million in interest expense onthe note payable to our parent to $0.6 million for the nine monthsended September 30, 2005, from $1.2 million for the nine months endedSeptember 30, 2004, (ii) a decrease in the interest expense on theOrmesa loan as a result of repayment on December 31, 2004 that resultedin no interest expense for that item for the nine months endedSeptember 30, 2005, compared to $1.3 million for the nine months endedSeptember 30, 2004, and (iii) a decrease in interest expense as aresult of capitalization of interest expenses on the Galena and Bradyprojects, in the amount of $0.9 million. The decrease was offset by a$1.9 million increase in the interest expense on the Senior SecuredNotes, which was $12.6 million for the nine months ended September 30,2005 compared to $10.7 million for the period from February 13, 2004 toSeptember 30, 2004.

Income Taxes

Income taxbenefit for the nine months ended September 30, 2005 was $0.9 ascompared with income tax expense of $0.6 million for the nine monthsended September 30, 2004. The effective tax rates for each of the ninemonths ended September 30, 2005 and 2004 were 38%.

23

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Equity in Income of Investee

Equity in income of investee was $1.3 million for the nine monthsended September 30, 2005 as compared with $1.2 million for the ninemonths ended September 30, 2004, representing our 50% ownershipinterest in the income of Mammoth-Pacific L.P.

NetIncome (Loss)

Net loss was $0.2 million for the nine monthsended September 30, 2005, as compared with net income of $2.1 millionfor the nine months ended September 30, 2004. The net decrease of $2.3million in net income was, primarily, the result of the following: (i)a decrease of $5.0 million in operating income resulting, primarily,from the lower gross margins as discussed above, (ii) a net decrease of$1.1 million in net interest expenses, (iii) a decrease of $1.5 millionin income tax expense resulting from the decrease in income beforeincome taxes, and (iv) an increase of $0.1 million in equity income ofinvestee.

Liquidity and Capital Resources

Ourprincipal sources of liquidity are derived from a combination ofinternally generated cash and our parent's subordinated loans,supplemented with third party debt.

Our estimated uses of fundsare for planned capital expenditures, described below, and for therepayment of the debt services related to the issuance of the SeniorSecured Notes.

On December 1, 2003, we entered into a loanagreement with Ormat Nevada pursuant to which we may borrow up to $55million from time to time. The loan is due in 2021 and is payable onlyfrom available cash flow, is subordinated to other debt and has beenclassified as non-current. Interest accrues on the unpaid principal ofthe loan amount at a rate per annum equal to the higher of 5% orthe applicable Federal rate 4.52% and 4.68% at September30, 2005 and December 31, 2004, respectively), is added to theprincipal and is also due in 2021 from available cash flow.

Ourthird-party debt is composed of project finance debt for the purpose ofrefinancing projects or for the acquisition of our projects. OnFebruary 13, 2004, we issued the Senior Secured Notes in a capitalmarkets offering subject to Rule 144A and Regulation S of theSecurities Act of 1933, as amended, for the purpose of refinancing theacquisition cost of the Brady, Ormesa and Steamboat 1/1A projects, andthe financing of the acquisition cost of the Steamboat 2/3 project andMammoth project. On March 16, 2005, we exchanged these unregisterednotes for Senior Secured Notes with substantially identical terms thathave been registered under the Securities Act of 1933, as amended. Asof September 30, 2005, there was $186.5 million of Senior Secured Notesoutstanding. The Senior Secured Notes are collateralized bysubstantially all of our assets and the assets of our subsidiaries andis jointly and severally fully and unconditionally guaranteed by all ofour wholly owned subsidiaries. The collateral securing the SeniorSecured Notes consists of (with certain exceptions) all of our and ourwholly owned subsidiaries' real and personal property,contractual rights, revenues and bank accounts, intercompany notes andinsurance policies.

On December 31, 2004, Ormesa LLC, oursubsidiary, repaid in its entirety a senior secured loan in the amountof $13.1 million under its credit facility with United Capital, adivision of Hudson United Bank. The loan was secured by a firstpriority lien on the Ormesa project and this lien was releasedcontemporaneously with the repayment of the loan. In accordance withthe terms of our indenture governing the Senior Secured Notes,immediately upon the repayment of the loan, Ormesa executed a guaranteeof the Senior Secured Notes and granted a first priority lien on theOrmesa project and all other Ormesa assets in favor of the collateralagent for the benefit of the holders of the Senior Secured Notes. Werepaid the loan with amounts set aside in a cash escrow account thatwas funded from proceeds from the sale of the Senior Secured Notes.

Our management believes that the above projects' generatedcash will be sufficient to address our liquidity. Additionally, as ofSeptember 30, 2005, we had an outstanding balance of $24.4 million fromour subordinated loan with Ormat Nevada, out of a total of $55.0million, as described above. Therefore, we may borrow, if required, upto $30.6 million from Ormat Nevada in order to address other investmentrequirements.

24

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Historical Cash Flow

Thefollowing table set forth the components of our cash flows for therelevant periodsindicated:

|                                                   |  |                               |         |         |  |        |          |         |  |  |
|---------------------------------------------------|--|-------------------------------|---------|---------|--|--------|----------|---------|--|--|
|                                              |  | NineMonths Ended September30, |
|                                              |  | 2005                          |         | 2004    |
| Netcash provided by operatingactivities           |  | $                             | 6,989   |    |  | $      | 13,632   |    |
| Net cashprovided by (used in) investingactivities |  |                          | 4,924   |    |  |   | (120,697 | )  |
| Net cashprovided by (used in) financingactivities |  |                          | (11,913 | )  |  |   | 107,065  |    |
|                                                   |

Forthe Nine Months ended September 30, 2005

Net cash provided byoperating activities for the nine months ended September 30, 2005 was$7.0 million as compared with $13.6 million for the nine months endedSeptember 30, 2004. Such decrease was primarily due to: (i) an increaseof $0.3 million in accounts payable and accrued expenses (includingthose payable to our parent) for the nine months ended September 30,2005 as compared to an increase of $1.8 million for the nine monthsended September 30, 2004, (ii) an increase of $1.5 million in accountsreceivable the nine months ended September 30, 2005 as compared with anincrease of $1.0 million for the nine months ended September 30, 2004,(iii) a decrease of $2.3 million in net income as a result of thedecrease of $5.0 million in operating income, (iv) a decrease of $1.5million in deferred income tax provision, and (v) a decrease of $0.7million in distributions from Mammoth Pacific. The increase was offsetby an increase of $0.3 million in depreciation and amortization from$8.5 million to $8.8 million as a result of the acquisition ofSteamboat 2/3 in February 2004.

Net cash provided by investingactivities for the nine months ended September 30, 2005 was $4.9million as compared with net cash used in investing activities of$120.7 million for the nine months ended September 30, 2004. Investingactivities in the nine months ended September 30, 2005 reflect adecrease of $3.5 million in restricted cash that will be used for thesemi-annual principal and interest payment scheduled for December 30,2005 related to the Senior Secured Notes, a distribution of $1.0million from Mammoth Pacific. Investing activities for the nine monthsended September 30, 2004 reflect the use of funds for the acquisitionof the Steamboat 2/3 project for a total of $74.4 million, a depositpayment of $2.2 million for the use of the Meyberg property and a netincrease in restricted cash of $37.3 million originated from theproceeds from the issuance of the Senior Secured Notes in February2004, which were earmarked for capital expenditure and debt servicereserve account established pursuant to the terms of our Senior SecuredNotes.

Net cash used in financing activities for the nine monthsended September 30, 2005 was $11.9 million as compared with net cashprovided by financing activities for the nine months ended September30, 2004 of $107.1 million. The principal element of the cash flow fromfinancing activities for the nine months ended September 30, 2005 wasthe net $8.5 million repayment of a long-term subordinated loan fromOrmat Nevada compared to net repayment of $71.6 million for the ninemonths ended September 30, 2004 and a repayment of $3.0 million of theSenior Secured Notes. The cash flow from financing activities in thenine months ended September 30, 2004 also includes the issuance of theSenior Secured Notes amounting to $190.0 million, less debt issuancecosts of $8.7 million and a repayment of long-term debt of $2.6million.

Capital Expenditures

Our capital expendituresprimarily relate to the enhancement of existing power plants and theconstruction of new power plants.

MammothProject.    We completed the drilling activities at the Mammothproject under an approximately $8.3 million enhancement program ($4.2million to be funded by us), which we believe will result in anincrease in the output of the project by 4 MW. The new well will beconnected to the plant at some point during 2006 depending on weatherconditions. A substantial portion of the funds required for suchenhancement have been earmarked from the project's fund by us andour partners in such program.

25

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Ormesa Project.    In connectionwith the Ormesa project, we have drilled two additional wells, plan toadd additional Ormat Energy Converter ("OEC")units and replace existing units in order to increase the output of theproject by an estimated 10 MW. We estimate that the costs of suchenhancements shall be up to $40.3 million and will be funded by us frominternally generated cash or through advances from our subordinatedloan with our parent and that the project will be completed by the endof the fourth quarter of 2006. As of September 30, 2005, approximately$4.6 million in costs had been incurred related to the enhancementprogram. We initially projected to sell the additional 10 MW to SCPPA,but we have advised SCPPA that we will probably need to locate analternative source of supply.

Galena Project.    Wecompleted the construction of the Galena project in October 2005 and weexpect to reach commercial operations by the end of 2005. Constructioncosts of $26.1 million are being funded from the proceeds of theoffering of the Senior Secured Notes, $8.9 million of which arecurrently deposited in an escrow account, and will be released inaccordance with the progress of the construction phase for suchenhancement. Additional costs of construction in the amount of $2.0million will be funded out of available cash flow. As of September 30,2005, approximately $25.0 million in costs had been incurred related tothe Galena project. Based on the final design of the project, we planto increase the entire steamboat complex's output by a totalincrease of 13 MW.

We do not anticipate any other materialcapital expenditures in the near term, other than ordinary maintenancerequirements.

Exposure to Market Risks

Onemarket risk to which power plants are typically exposed is thevolatility of electricity prices. We do not have significant exposureto such market risk principally because our long-term power purchaseagreements have fixed or escalating rate provisions that limit our riskof exposure to changes in electricity prices. However, beginning in May2007, the energy payments under the Ormesa and Mammoth project powerpurchase agreements will be determined by reference to thepurchaser's short-run avoided costs. The energy prices ofSteamboat 1/1A are also dependent on Sierra Pacific PowerCompany's short-run avoided costs. We estimate that energypayments will represent approximately two-thirds of thoseprojects' revenues after 2007 and there may be some volatility intheir revenues as a result.

We anticipate that the majority ofour long-term financing will be in the form of fixed rate securities,such as the Senior Secured Notes, and therefore we will not be exposedto changes in interest rates.

Off-Balance SheetArrangements

On September 30, 2004, Ormat Nevada entered into aLetter of Credit Agreement with Hudson United Bank pursuant to whichHudson United Bank agreed to issue one or more letters of credit in theaggregate amount of $15.0 million, and expiring on June 30, 2007, whichshall be extended for successive one-year periods unless notice isprovided by either Ormat Nevada or the bank not to extend suchexpiration date. At December 31, 2004, letters of credit amounting to$10.8 million were issued and outstanding under this agreement, whichwere used to replace cash on deposit as reserve funds that were held asa pledge against the Senior Secured Notes. As of September 30, 2005,such letters of credit have not been renewed by the Parent.

Concentration of Credit Risk

Our credit risk iscurrently concentrated with two major customers, Sierra Pacific PowerCompany and Southern California Edison Company.

SouthernCalifornia Edison Company accounted for 63% and 52% ofour revenues for the three and nine-month periods ended September 30,2005 compared to 63% and 57% of our revenues for thethree and nine-month periods ended September 30, 2004. SouthernCalifornia Edison Company is also the sole purchase agreementcounterparty and revenue source for the Mammoth project. Based on

26

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publicly available information, SouthernCalifornia Edison Company's issuer rating is BBB+ (stableoutlook) by S&P and Baa1 (stable outlook) by Moody's.

Sierra Pacific Power Company accounted for 37% and 48%of our revenues for the three and nine-month periods ended September30, 2005 compared to 37% and 43% of our revenues for thethree and nine-month periods ended September 30, 2004. Based onpublicly available information, Sierra Pacific Power Company'sissuer rating is B+ (positive outlook) by S&P and Ba3 (stableoutlook) by Moody's.

If Sierra Pacific Power Company orSouthern California Edison Company fail to make payments under theirpower purchase agreements with us, such failure would have a materialadverse impact on our financial condition and results ofoperations.

Risk Factors

A comprehensivediscussion of our risk factors is included in the"Management's Discussion and Analysis of FinancialCondition and Results of Operations" section ofour annual report on Form 10-K for the year ended December 31,2004.

ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURESABOUT MARKET RISK

Information responding to Part I, Item 3 isincluded in Part I, Item 2 of this Form 10-Q,"Management's Discussion and Analysis of FinancialCondition and Results of Operations", under theheading "Exposure to MarketRisk".

ITEM 4.    CONTROLS AND PROCEDURES

|          |                                                 |
|----------|-------------------------------------------------|
| a.  | Evaluation of disclosure controls andprocedures |

Our management, with the participation of our ChiefExecutive Officer and Chief Financial Officer, evaluated theeffectiveness of our disclosure controls and procedures pursuant toRule 13a-15 under the Securities and Exchange Act of 1934, as amended,as of the end of the period covered by this quarterly report. Theevaluation included certain control areas in which we have made, andare continuing to make, changes to improve and enhance controls. Basedon that evaluation as of September 30, 2005, our President and ChiefFinancial Officer have concluded that our disclosure controls andprocedures (as defined in Rules 13a-15(e) and 15d-15(e) under theSecurities Exchange Act of 1934, as amended) were effective to ensurethat the information required to be disclosed by us in this quarterlyreport on Form 10-Q was recorded, processed, summarized and reportedaccurately and within the time periods specified within the SEC'srules and instructions for Form 10-Q. In designing and evaluating thedisclosure controls and procedures, management recognized that anycontrols and procedures, no matter how well designed and operated, canprovide only reasonable assurance of achieving the desired controlobjectives, and management is required to apply its judgment inevaluating the cost benefit relationship of possible controls andprocedures.

|          |                                                      |
|----------|------------------------------------------------------|
| b.  | Changes in internal controlsover financial reporting |

There were no changes in our internalcontrols over financial reporting in the first nine months of 2005 thathave materially affected or are reasonably likely to materially affectour internal controls over financial reporting.

We arecontinuing to enhance our documentation and analyze our system ofinternal controls. We have identified areas of our internal controlsrequiring improvement, and have made progress designing enhancedprocesses and controls to address issues identified through thisreview. Areas of improvement include enhancing and streamlining ourfinancial reporting procedures. We plan to continue this initiative, aswell as prepare for our first management report on internal controlover financial reporting, as required by Section 404 of theSarbanes-Oxley Act of 2002, on December 31,2005.

27

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PART II

OTHER INFORMATION

ITEM 1.    LEGAL PROCEEDINGS

During the nine months offiscal year 2005, there were no material developments in any legalproceedings to which we are a party from those previously reported inPart I, Item 3 of our annual report on Form 10-K for the year endedDecember 31, 2004.

From time to time, we (and our subsidiaries)are a party to various other lawsuits, claims and other legal andregulatory proceedings that arise in the ordinary course of our (andtheir) business. These actions typically seek, among other things,compensation for alleged personal injury, breach of contract, propertydamage, punitive damages, civil penalties or other losses, orinjunctive or declaratory relief. With respect to such lawsuits, claimsand proceedings, we accrue reserves in accordance with U.S. generallyaccepted accounting principles. We do not believe that any of theseproceedings, individually or in the aggregate, would materially andadversely affect our business, financial condition, future results andcash flow.

ITEM 2.    UNREGISTERED SALES OF EQUITY SECURITIESAND USE OF PROCEEDS

None.

ITEM 3.    DEFAULTS UPONSENIOR SECURITIES

None.

ITEM 4.    SUBMISSION OFMATTERS TO A VOTE OF SECURITY HOLDERS

None.

ITEM5.    OTHER INFORMATION.

None.

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ITEM6.    EXHIBITS

|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |  |  |  |
|---------------|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 4.1           |  | Indenture,dated as of February 13, 2004, among Ormat Funding Corp., Brady PowerPartners, Steamboat Development Corp., Steamboat Geothermal LLC,OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI 7 LLC, Ormesa LLC, andUnion Bank of California, N.A., incorporated by reference to Exhibit10.1.7 to Ormat Technologies, Inc. Registration Statement on Form S-1(File No. 333-117527) to the Securities and Exchange Commission on July21, 2004.                                      |
| 4.2           |  | Form of Exchange Note(included in Exhibit 4.1).                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 4.3           |  | FirstSupplemental Indenture, dated as of May 14, 2004, among Ormat FundingCorp., Brady Power Partners, Steamboat Development Corp., SteamboatGeothermal LLC, OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI 7 LLC,Ormesa LLC, and Union Bank of California, N.A., incorporated byreference to Exhibit 10.1.8 to Ormat Technologies, Inc. RegistrationStatement on Amendment No. 1 to Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on September 28,2004. |
| 4.4           |  | Second Supplemental Indenture,dated as of December 21, 2004, among Ormat Funding Corp., Brady PowerPartners, Steamboat Development Corp., Steamboat Geothermal LLC,OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI 7 LLC, Ormesa LLC, andUnion Bank of California, N.A., incorporated by reference to Exhibit4.4 to Ormat Funding Corp. Registration Statement on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on December 23,2004.                      |
| 4.5           |  | Guarantee, dated as of February13, 2004, by ORNI 1 LLC in favor of Union Bank of California, N.A.,incorporated by reference to Exhibit 4.5 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                                                                                                                                                                                          |
| 4.6           |  | Guarantee, dated as of February13, 2004, by ORNI 2 LLC in favor of Union Bank of California, N.A.,incorporated by reference to Exhibit 4.6 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                                                                                                                                                                                          |
| 4.7           |  | Guarantee, dated as of February13, 2004, by ORNI 7 LLC in favor of Union Bank of California, N.A.incorporated by reference to Exhibit 4.7 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                                                                                                                                                                                           |
| 4.8           |  | Guarantee, dated as of February13, 2004, by Steamboat Geothermal LLC in favor of Union Bank ofCalifornia, N.A., incorporated by reference to Exhibit 4.8 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities and Exchange Commission on December 23,2004.                                                                                                                                                                            |
| 4.9           |  | Guarantee, dated as of February13, 2004, by Steamboat Development Corp. in favor of Union Bank ofCalifornia, N.A., incorporated by reference to Exhibit 4.9 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities and Exchange Commission on December 23,2004.                                                                                                                                                                         |
| 4.10          |  | Guarantee, dated as of February13, 2004, by Brady Power Partners in favor of Union Bank of California,N.A., incorporated by reference to Exhibit 4.10 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                                                                                                                                                                               |
|               |

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|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |  |  |  |
|---------------|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4.11          |  | Guarantee, dated as ofFebruary 13, 2004, by OrMammoth Inc. in favor of Union Bank ofCalifornia, N.A., incorporated by reference to Exhibit 4.11 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities and Exchange Commission on December 23,2004.                                                                                                                                                                             |
| 4.12          |  | Deposit and DisbursementAgreement, dated as of February 13, 2004, among Ormat Funding Corp.,Brady Power Partners, Steamboat Development Corp., Steamboat GeothermalLLC, OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI 7 LLC, and Union Bankof California, N.A., incorporated by reference to Exhibit 4.12 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities and Exchange Commission on December 23,2004.                    |
| 4.13          |  | Collateral Agency Agreement,dated as of February 13, 2004, among Ormat Funding Corp., Brady PowerPartners, Steamboat Development Corp., Steamboat Geothermal LLC,OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI 7 LLC, Ormesa LLC, andUnion Bank of California, N.A., incorporated by reference to Exhibit4.13 to Ormat Funding Corp. Registration Statement Amendment No. 1 onForm S-4 (File No. 333-121655) to the Securities and ExchangeCommission on February 7,2005. |
| 4.14          |  | Registration Rights Agreement,dated as of February 13, 2004, by and among Ormat Funding Corp, BradyPower Partners, Steamboat Geothermal LLC, Steamboat Development Corp,OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI 7 LLC, and Lehman BrothersInc., incorporated by reference to Exhibit 4.14 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                              |
| 4.15          |  | Pledge and Security Agreement,dated as of February 13, 2004, by and between Ormat Nevada Inc. andUnion Bank of California, N.A., incorporated by reference to Exhibit4.5 to Ormat Funding Corp. Registration Statement on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on December 23,2004.                                                                                                                                                   |
| 4.16          |  | Pledge and Security Agreement,dated as of February 13, 2004, by and between Ormat Funding Corp. andUnion Bank of California, N.A., incorporated by reference to Exhibit4.16 to Ormat Funding Corp. Registration Statement on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on December23, 2004.                                                                                                                                                |
| 4.17          |  | First Amendment to Pledge andSecurity Agreement, dated as of October 12, 2004, by and between OrmatFunding Corp. and Union Bank of California, N.A., incorporated byreference to Exhibit 4.17 to Ormat Funding Corp. Registration Statementon Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on December 23, 2004.                                                                                                                              |
| 4.18          |  | Pledgeand Security Agreement, dated as of February 13, 2004, by and betweenBrady Power Partners and Union Bank of California, N.A., incorporatedby reference to Exhibit 4.18 to Ormat Funding Corp. RegistrationStatement on Form S-4 (File No. 333-121655) to the Securities andExchange Commission on December 23, 2004.                                                                                                                                               |
|               |

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|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  |  |  |  |
|---------------|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.19          |  | Pledge and SecurityAgreement, dated as of February 13, 2004, by and between SteamboatGeothermal LLC and Union Bank of California, N.A., incorporated byreference to Exhibit 4.19 to Ormat Funding Corp. Registration Statementon Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on December 23, 2004.                                                                                                                                             |
| 4.20          |  | Pledgeand Security Agreement, dated as of February 13, 2004, by and betweenSteamboat Development Corp. and Union Bank of California, N.A.,incorporated by reference to Exhibit 4.20 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                                                                                                                                           |
| 4.21          |  | Pledge and Security Agreement,dated as of February 13, 2004, by and between ORNI 1 LLC and Union Bankof California, N.A., incorporated by reference to Exhibit 4.21 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities and Exchange Commission on December 23,2004.                                                                                                                                                           |
| 4.22          |  | Pledge and Security Agreement,dated as of February 13, 2004, by and between ORNI 2 LLC and Union Bankof California, N.A., incorporated by reference to Exhibit 4.22 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities and Exchange Commission on December 23,2004.                                                                                                                                                           |
| 4.23          |  | Pledge and Security Agreement,dated as of February 13, 2004, by and between ORNI 7 LLC and Union Bankof California, N.A., incorporated by reference to Exhibit 4.23 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities and Exchange Commission on December 23,2004.                                                                                                                                                           |
| 4.24          |  | Third Supplemental Indenture,dated as of December 31, 2004, among Ormesa LLC, Ormat Funding Corp.,Brady Power Partners, Steamboat Development Corp., Steamboat GeothermalLLC, OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI 7 LLC, and Union Bankof California, N.A., incorporated by reference to Exhibit 4.24 to OrmatFunding Corp. Registration Statement Amendment No. 1 on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on February7, 2005. |
| 4.25          |  | Guarantee, dated as ofDecember 31, 2004, by Ormesa LLC in favor of Union Bank of California,N.A., incorporated by reference to Exhibit 4.25 to Ormat Funding Corp.Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005.                                                                                                                                                                    |
| 4.26          |  | Pledge and Security Agreement,dated as of December 31, 2004, by and between Ormesa LLC and Union Bankof California, N.A., incorporated by reference to Exhibit 4.26 to OrmatFunding Corp. Registration Statement Amendment No. 1 on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on February7, 2005.                                                                                                                                            |
| 10.1          |  | FinancingAgreements                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.1.1        |  | Letter of Credit and LoanAgreement, dated as of June 30, 2004, by and between Ormat Nevada, Inc.and Hudson United Bank, incorporated by reference to Exhibit 10.1.16 toOrmat Technologies, Inc. Registration Statement on Amendment No. 2 toForm S-1 (File No. 333-117527) to the Securities and ExchangeCommission on October 22, 2004.                                                                                                                                   |
|               |

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|               |  |                                                                                                                                                                                                                                                                                                                                                            |  |  |  |  |
|---------------|--|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                |
| 10.1.2        |  | First Amendment toLetter of Credit and Loan Agreement, dated as of June 30, 2004, by andbetween Ormat Nevada, Inc. and Hudson United Bank, incorporated byreference to Exhibit 10.1.17 to Ormat Technologies, Inc. RegistrationStatement on Amendment No. 2 to Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on October 22,2004. |
| 10.2          |  | PurchaseAgreements                                                                                                                                                                                                                                                                                                                                         |
| 10.2.1        |  | Purchase Agreement, datedas of July 15, 2004, by and between Ormat Industries Ltd. and OrmatSystems Ltd., incorporated by reference to Exhibit 10.2.2 to OrmatTechnologies, Inc. Registration Statement on Form S-1 (File No.333-117527) to the Securities and Exchange Commission on July 21,2004.                                                        |
| 10.3          |  | Power PurchaseAgreements                                                                                                                                                                                                                                                                                                                                   |
| 10.3.1        |  | Power Purchase Contract,dated as of July 18, 1984, between Southern California Edison Companyand Republic Geothermal, Inc., incorporated by reference to Exhibit10.3.1 to Ormat Technologies, Inc. Registration Statement on Form S-1(File No. 333-117527) to the Securities and Exchange Commission on July21, 2004.                                      |
| 10.3.2        |  | Amendment No. 1, to thePower Purchase Contract, dated as of December 23, 1988, betweenSouthern California Edison Company and Ormesa Geothermal, incorporatedby reference to Exhibit 10.3.2 to Ormat Technologies, Inc. RegistrationStatement on Form S-1 (File No. 333-117527) to the Securities andExchange Commission on July 21,2004.                   |
| 10.3.3        |  | Power Purchase Contract, datedas of June 13, 1984, between Southern California Edison Company andOrmat Systems, Inc., incorporated by reference to Exhibit 10.3.3 toOrmat Technologies, Inc. Registration Statement on Form S-1 (File No.333-117527) to the Securities and Exchange Commission on July 21,2004.                                            |
| 10.3.4        |  | Power Purchase Contract, datedas of April 15, 1985, by and between Mammoth-Pacific LP and SouthernCalifornia Edison Company, incorporated by reference to Exhibit 10.3.13to Ormat Technologies, Inc. Registration Statement on Form S-1 (FileNo. 333-117527) to the Securities and Exchange Commission on July 21,2004.                                    |
| 10.3.5        |  | Amendment No. 1 to PowerPurchase Contract, dated as of October 27, 1989, by and betweenMammoth-Pacific LP and Southern California Edison Company, incorporatedby reference to Exhibit 10.3.14 to Ormat Technologies, Inc.Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.                |
| 10.3.6        |  | Amendment No. 2 to PowerPurchase Contract, dated as of December 20, 1989, by and betweenMammoth-Pacific LP and Southern California Edison Company, incorporatedby reference to Exhibit 10.3.15 to Ormat Technologies, Inc.Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.               |
| 10.3.7        |  | Amended and Restated PowerPurchase and Sales Agreement, dated as of December 2, 1986, by andbetween Mammoth-Pacific LP and Southern California Edison Company,incorporated by reference to Exhibit 10.3.11 to Ormat Technologies,Inc. Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.   |
|               |

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|               |  |                                                                                                                                                                                                                                                                                                                                                                         |  |  |  |  |
|---------------|--|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                             |
| 10.3.8        |  | Amendment No. 1, toAmended and Restated Power Purchase and Sale Agreement, dated as of May18, 1990, by and between Mammoth-Pacific LP and Southern CaliforniaEdison Company, incorporated by reference to Exhibit 10.3.12 to OrmatTechnologies, Inc. Registration Statement on Form S-1 (File No.333-117527) to the Securities and Exchange Commission on July 21,2004. |
| 10.3.9        |  | Power Purchase Contract, datedas of April 16, 1985, by and between Southern California Edison Companyand Santa Fe Geothermal, Inc., incorporated by reference to Exhibit10.3.16 to Ormat Technologies, Inc. Registration Statement on Form S-1(File No. 333-117527) to the Securities and Exchange Commission on July21, 2004.                                          |
| 10.3.10       |  | Amendment No. 1 to PowerPurchase Contract, dated as of October 25, 1985, by and betweenSouthern California Edison Company and Mammoth-Pacific LP, incorporatedby reference to Exhibit 10.3.17 to Ormat Technologies, Inc.Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.                             |
| 10.3.11       |  | Amendment No. 2 to PowerPurchase Contract, dated as of December 20, 1989, by and betweenSouthern California Edison Company and Pacific Lighting Energy Systems,incorporated by reference to Exhibit 10.3.18 to Ormat Technologies,Inc. Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.               |
| 10.3.12       |  | Interconnection FacilitiesAgreement, dated as of October 20, 1989, by and between SouthernCalifornia Edison Company and Mammoth-Pacific LP, incorporated byreference to Exhibit 10.3.19 to Ormat Technologies, Inc. RegistrationStatement on Form S-1 (File No. 333-117527) to the Securities andExchange Commission on July 21,2004.                                   |
| 10.3.13       |  | Interconnection FacilitiesAgreement, dated as of October 13, 1985, by and between SouthernCalifornia Edison Company and Mammoth-Pacific LP (II), incorporated byreference to Exhibit 10.3.20 to Ormat Technologies, Inc. RegistrationStatement on Form S-1 (File No. 333-117527) to the Securities andExchange Commission on July 21,2004.                              |
| 10.3.14       |  | Plant Connection Agreement forthe Ormesa Geothermal Plant, dated as of October 1, 1985, by andbetween Imperial Irrigation District and Ormesa Geothermal,incorporated by reference to Exhibit 10.3.26 to Ormat Technologies,Inc. Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.                     |
| 10.3.15       |  | Plant Connection Agreement forthe Ormesa IE Geothermal Plant, dated as of October 21, 1988, by andbetween Imperial Irrigation District and Ormesa IE, incorporated byreference to Exhibit 10.3.27 to Ormat Technologies, Inc. RegistrationStatement on Form S-1 (File No. 333-117527) to the Securities andExchange Commission on July 21,2004.                         |
| 10.3.16       |  | Plant Connection Agreement forthe Ormesa IH Geothermal Plant, dated as of October 3, 1989, by andbetween Imperial Irrigation District and Ormesa IH, incorporated byreference to Exhibit 10.3.28 to Ormat Technologies, Inc. RegistrationStatement on Form S-1 (File No. 333-117527) to the Securities andExchange Commission on July 21, 2004.                         |
|               |

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|               |  |                                                                                                                                                                                                                                                                                                                                                                                     |  |  |  |  |
|---------------|--|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                         |
| 10.3.17       |  | Transmission ServiceAgreement for the Ormesa I, Ormesa IE and Ormesa IH Geothermal PowerPlants, dated October 3, 1989, by and between Imperial IrrigationDistrict and Ormesa Geothermal, incorporated by reference to Exhibit10.3.31 to Ormat Technologies, Inc. Registration Statement on Form S-1(File No. 333-117527) to the Securities and Exchange Commission on July21, 2004. |
| 10.3.18       |  | Energy Services Agreement,dated as of February 2003, by and between Imperial Irrigation Districtand Ormesa, LLC, incorporated by reference to Exhibit 10.3.43 to OrmatTechnologies, Inc. Registration Statement on Amendment No. 1 Form S-1(File No. 333-117527) to the Securities and Exchange Commission onSeptember 28, 2004.                                                    |
| 10.3.19       |  | Agreement forthe Purchase and Sale of Electricity, dated as of November 18, 1983, byand between Geothermal Development Associates and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.19 to Ormat FundingCorp. Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005.         |
| 10.3.20       |  | Amendment to Agreement for thePurchase and Sale of Electricity, dated as of March 6, 1987, by andbetween Geothermal Development Associates and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.20 to Ormat FundingCorp. Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.               |
| 10.3.21       |  | Long-Term Agreement for thePurchase and Sale of Electricity, dated as of October 29, 1988, by andbetween Sierra Pacific Power Company and Far West Capital, Inc.,incorporated by reference to Exhibit 10.3.21 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                          |
| 10.3.22       |  | Long-Term Agreement for thePurchase and Sale of Electricity, dated as of January 24, 1991, by andbetween Far West Capital, Inc. and Sierra Pacific Power Company,incorporated by reference to Exhibit 10.3.22 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                          |
| 10.3.23       |  | Amendment to Long-TermAgreement for the Purchase and Sale of Electricity, dated as of October29, 1991, between Steamboat Development and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.23 to Ormat FundingCorp. Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                     |
| 10.3.24       |  | Amendment to Long-TermAgreement for the Purchase and Sale of Electricity, dated as of October29, 1992, between Steamboat Development and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.24 to Ormat FundingCorp. Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                     |
| 10.3.25       |  | Long-Term Agreement for thePurchase and Sale of Electricity, dated as of January 18, 1991, by andbetween Sierra Pacific Power Company and Far West Capital, Inc.,incorporated by reference to Exhibit 10.3.25 to Ormat Funding Corp.Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005.           |
|               |

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|               |  |                                                                                                                                                                                                                                                                                                                                                                                         |  |  |  |  |
|---------------|--|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                             |
| 10.3.26       |  | InterconnectionFacilities Agreement, dated as of October 20, 1989, by and betweenSouthern California Edison Company and Pacific Lighting Energy Systems,incorporated by reference to Exhibit 10.3.21 to Ormat Technologies,Inc. Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.                                      |
| 10.3.27       |  | Plant Operating ServicesAgreement, dated as of January 1, 1995, by and between Mammoth-PacificLP and Pacific Power Plant Operations, incorporated by reference toExhibit 10.3.27 to Ormat Funding Corp. Registration Statement on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004.                                                          |
| 10.3.28       |  | AssignmentAgreement, dated as of December 18, 2003, by and between Covanta PowerPlant Operations and Ormat Nevada, Inc., incorporated by reference toExhibit 10.3.28 to Ormat Funding Corp. Registration Statement AmendmentNo. 1 on Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on February 7, 2005.                                                       |
| 10.3.29       |  | IID- Edison Transmission Service Agreement for Alternative Resources,dated, September 26, 1985, by and between Imperial Irrigation Districtand Southern California Edison Company, incorporated by reference toExhibit 10.3.34 to Ormat Technologies, Inc. Registration Statement onForm S-1 (File No. 333-117527) to the Securities and ExchangeCommission on July 21,2004.            |
| 10.3.30       |  | Long-Term Firm Power PurchaseAgreement, dated June 28, 2004, between ORNI 7 and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.30 Ormat FundingCorp. Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005.                                                                      |
| 10.3.31       |  | Long Term Agreement for thePurchase and Sale of Electricity, dated as of October 5, 1990, by andbetween Nevada Geothermal Power Partners and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.31 to Ormat FundingCorp. Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                     |
| 10.3.32       |  | Amendment No. 1 to Long TermAgreement for the Purchase and Sale of Electricity, dated July 12,1991, by and between Brady Power Partners and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.32 to Ormat FundingCorp. Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005.       |
| 10.3.33       |  | Amendment No. 2 to Long TermAgreement for the Purchase and Sale of Electricity, dated as of June24, 2002, by and between Brady Power Partners and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.33 to Ormat FundingCorp. Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005. |
| 10.4          |  | Leases                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.4.1        |  | OrmesaBLM Geothermal Resources Lease CA 966, incorporated by reference toExhibit 10.4.1 to Ormat Technologies, Inc. Registration Statement onForm S-1 (File No. 333-117527) to the Securities and ExchangeCommission on July 21, 2004.+                                                                                                                                                 |
|               |

35

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|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |  |  |  |
|---------------|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.4.2        |  | Ormesa BLM Licensefor Electric Power Plant Site CA 24678, incorporated by reference toExhibit 10.4.2 to Ormat Technologies, Inc. Registration Statement onForm S-1 (File No. 333-117527) to the Securities and ExchangeCommission on July 21,2004.++                                                                                                                                                                                                                                                     |
| 10.4.3        |  | Geothermal Resources Lease,dated as of November 18, 1983, by and between Sierra Pacific PowerCompany, as Lessor, and Geothermal Development Associates, as Lessee,and amended by the amendments dated January 7, 1985, October 29, 1988,and October 2, 1989, incorporated by reference to Exhibit 10.4.6 toOrmat Technologies, Inc. Registration Statement on Form S-1 (File No.333-117527) to the Securities and Exchange Commission on July 21,2004.*                                                  |
| 10.4.4        |  | Unprotected Lease Agreement,dated as of July 15, 2004, by and between Ormat Industries Ltd. andOrmat Systems Ltd., incorporated by reference to Exhibit 10.4.25 toOrmat Technologies, Inc. Registration Statement on Form S-1 (File No.333-117527) to the Securities and Exchange Commission on July 21,2004.                                                                                                                                                                                            |
| 10.4.5        |  | Geothermal Resources Lease,dated as of June 27, 1988, by and between Bernice Guisti, Judith Harveyand Karen Thompson, Trustees and Beneficiaries of the Guisti Trust asLessor and Far West Capital Inc. as Lessee, incorporated by referenceto Exhibit 10.4.26 to Ormat Technologies, Inc. Registration Statementon Amendment No. 1 to Form S-1 (File No. 333-117527) to the Securitiesand Exchange Commission on September 28,2004.*                                                                    |
| 10.4.6        |  | Amendment to GeothermalResources Lease, dated January, 1992, by and between Bernice Guisti,Judith Harvey and Karen Thompson, Trustees and Beneficiaries of theGuisti Trust, as Lessor and Far West Capital, Inc., as Lessee,incorporated by reference to Exhibit 10.4.27 to Ormat Technologies,Inc. Registration Statement on Amendment No. 1 to Form S-1 (File No.333-117527) to the Securities and Exchange Commission on September 28,2004.*                                                          |
| 10.4.7        |  | Second Amendment to GeothermalResources Lease, dated as of June 25, 1993, by and between BerniceGuisti, Judith Harvey and Karen Thompson, Trustees and Beneficiaries ofthe Guisti Trust, as Lessor and Far West Capital, Inc. and itsAssignee, Steamboat Development Corp., as Lessee, incorporated byreference to Exhibit 10.4.28 to Ormat Technologies, Inc. RegistrationStatement on Amendment No. 1 to Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on September 28,2004. |
| 10.4.8        |  | Geothermal Resources Sublease,dated as of May 31, 1991, by and between Fleetwood Corporation, asLessor, and Far West Capital, Inc., incorporated by reference toExhibit 10.4.29 to Ormat Technologies, Inc. Registration Statement onAmendment No. 1 to Form S-1 (File No. 333-117527) to the Securities andExchange Commission on September 28,2004.*                                                                                                                                                   |
| 10.4.9        |  | Geothermal Resources Lease,dated as of May 31, 1991, by and between Dorothy A. Towne, the Trust ofDorothy A. Towne and Fleetwood Corporation, incorporated by referenceto Exhibit 10.4.9 to Ormat Funding Corp. Registration StatementAmendment No. 1 on Form S-4 (File No. 333-121655) to the Securities andExchange Commission on February 7, 2005.                                                                                                                                                    |
|               |

36

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|               |  |                                                                                                                                                                                                                                                                                                                                                            |  |  |  |  |
|---------------|--|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                |
| 10.4.10       |  | Mammoth GeothermalLease, dated as of August 31, 1983, by and between Magma Energy, Inc.and Holt Geothermal Company, incorporated by reference to Exhibit10.4.10 to Ormat Funding Corp. Registration Statement Amendment No. 1on Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on February 7,2005.                                |
| 10.4.11       |  | First Amendment to MammothGeothermal Lease, dated as of April 30, 1987, by and between MagmaEnergy, Inc. and Holt Geothermal Company, incorporated by reference toExhibit 10.4.11 to Ormat Funding Corp. Registration Statement AmendmentNo. 1 on Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on February 7,2005.              |
| 10.4.12       |  | Second Amendment to MammothGeothermal Lease, dated as of January 1, 1990, by and between MagmaEnergy, Inc. and Holt Geothermal Company, incorporated by reference toExhibit 10.4.12 to Ormat Funding Corp. Registration Statement AmendmentNo. 1 on Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on February 7,2005.            |
| 10.4.13       |  | Third Amendment to MammothGeothermal Lease, dated as of April 12, 1991, by and between MagmaEnergy, Inc. and Holt Geothermal Company, incorporated by reference toExhibit 10.4.13 to Ormat Funding Corp. Registration Statement AmendmentNo. 1 on Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on February 7,2005.              |
| 10.4.14       |  | Grant of Easement Agreement,dated as of March 27, 1998, by David. P. Frase, Timothy D. Frase andJames W. Roberts in favor of Brady Power Partners, incorporated byreference to Exhibit 10.4.14 to Ormat Funding Corp. RegistrationStatement Amendment No. 1 on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on February 7,2005. |
| 10.4.15       |  | Sublease, dated as of January14, 2004, by and between Western States Geothermal Company and BradyPower Partners, incorporated by reference to Exhibit 10.4.15 to OrmatFunding Corp. Registration Statement Amendment No. 1 on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on February7, 2005.                                  |
| 10.5          |  | Operation and MaintenanceAgreements                                                                                                                                                                                                                                                                                                                        |
| 10.5.1        |  | Amended and RestatedOperation and Maintenance Agreement, dated as of December 8, 2003, byand among ORNI 7 LLC, Steamboat Geothermal LLC, and Ormat Nevada Inc.,incorporated by reference to Exhibit 10.5.1 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.    |
| 10.5.2        |  | Operation and MaintenanceAgreement, dated as of April 15, 2002, by and between Ormesa LLC andOrmat Nevada, Inc., incorporated by reference to Exhibit 10.5.2 toOrmat Funding Corp. Registration Statement on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on December 23,2004.                                                  |
| 10.5.3        |  | Operation and MaintenanceAgreement, dated as of January 1, 2002, by and between Brady PowerPartners and Ormat Nevada, Inc., incorporated by reference to Exhibit10.5.3 to Ormat Funding Corp. Registration Statement on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on December23, 2004.                                       |
|               |

37

----

|               |  |                                                                                                                                                                                                                                                                                                                                                                          |  |  |  |  |
|---------------|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                              |
| 10.5.4        |  | First Amendment toBrady Operation and Maintenance Agreement, dated as of February 13,2004, by and between Brady Power Partners and Ormat Nevada, Inc.,incorporated by reference to Exhibit 10.5.4 to Ormat Funding Corp.Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005.            |
| 10.6          |  | InterconnectionAgreements                                                                                                                                                                                                                                                                                                                                                |
| 10.6.1        |  | Special FacilitiesAgreement, dated as of October 29, 1988, by and between Sierra PacificPower Company and Far West Capital, Inc., incorporated by reference toExhibit 10.6.1 to Ormat Funding Corp. Registration Statement AmendmentNo. 1 on Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on February 7,2005.                                 |
| 10.6.2        |  | Special Facilities Agreement,dated as of April 24, 1992, by and between Sierra Pacific Power Companyand Far West Capital, Inc., incorporated by reference to Exhibit 10.6.2to Ormat Funding Corp. Registration Statement Amendment No. 1 on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onFebruary 7, 2005.                                  |
| 10.7          |  | Location andOccupancy Agreements                                                                                                                                                                                                                                                                                                                                         |
| 10.7.1        |  | FacilityLocation and Occupancy Agreement, dated as of December 31, 1985, by andbetween Sierra Pacific Power Company and Far West Hydroelectric Fund,Ltd., incorporated by reference to Exhibit 10.7.1 to Ormat FundingCorp. Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                       |
| 10.8          |  | AcquisitionAgreements                                                                                                                                                                                                                                                                                                                                                    |
| 10.8.1        |  | Interest PurchaseAgreement, dated as of June 30, 2003, and among ORNI 7 LLC, U.S. EnergySystems, Inc., and Ormat Nevada, Inc., incorporated by reference toExhibit 10.8.1 to Ormat Funding Corp. Registration Statement on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004.                                                  |
| 10.8.2        |  | Interest PurchaseAgreement, dated June 30, 2003, by and among ORNI 7 LLC, Far WestCapital, Inc., and 1-A Enterprises, incorporated by reference toExhibit 10.8.2 to Ormat Funding Corp. Registration Statement on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004.                                                           |
| 10.8.3        |  | Sale and PurchaseAgreement, dated November 19, 2003, by and among Far West Capital,Inc., FW Consulting Services, L.C., Geo Energy, LLC, SB Geo, Inc., andORNI 7, incorporated by reference to Exhibit 10.8.3 to Ormat FundingCorp. Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005. |
| 10.8.4        |  | Purchase and Sale Agreement,dated as of June 1, 2004, by and between The Burlington Northern andSanta Fe Railway Company and Brady Power Partners, incorporated byreference to Exhibit 10.8.4 to Ormat Funding Corp. RegistrationStatement on Form S-4 (File No. 333-121655) to the Securities andExchange Commission on December 23, 2004.                              |
|               |

38

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|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
|---------------|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.8.5        |  | Sale and PurchaseAgreement, dated February 28, 2001, by and among ESI BH LimitedPartnership, TPC Brady, Inc., ORNI 1 LLC, and ORNI 2 LLC, incorporatedby reference to Exhibit 10.8.5 to Ormat Funding Corp. RegistrationStatement on Form S-4 (File No. 333-121655) to the Securities andExchange Commission on December 23,2004.                                                                                                                                    |
| 10.8.6        |  | Sale and Purchase Agreement,dated April 4, 2002, by and among CH Ormesa, Inc., CH Ormesa LP, Inc.,ORNI 8 LLC, and Ormat Funding Corp., incorporated by reference toExhibit 10.8.6 to Ormat Funding Corp. Registration Statement on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004.                                                                                                                                      |
| 10.8.7        |  | Sale and PurchaseAgreement, dated January 31, 2002, by and among CD Ormesageo II-A,Inc., CD Ormesageo II-B, Inc., CD Ormesageo II-C, Inc., Bell AtlanticTriCon Leasing Corporation, Constellation Power, Inc. and VerizonCapital Corp., ORNI 8 LLC, and Ormat Funding Corp., incorporated byreference to Exhibit 10.8.7 to Ormat Funding Corp. RegistrationStatement on Form S-4 (File No. 333-121655) to the Securities andExchange Commission on December 23,2004. |
| 10.8.8        |  | Sale and Purchase Agreement,dated April 4, 2002, by and among the Selling Entities and ORNI 7 LLC,ORNI 8 LLC, and Ormat Funding Corp., incorporated by reference toExhibit 10.8.8 to Ormat Funding Corp. Registration Statement on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004.                                                                                                                                      |
| 10.9          |  | Engineering,Procurement, and ConstructionContracts                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.9.1        |  | Engineering, Procurement,and Construction Contract, dated as of August 2, 2004, by and betweenORNI 7 LLC and Ormat Nevada Inc., incorporated by reference to Exhibit10.9.1 to Ormat Funding Corp. Registration Statement Amendment No. 1 onForm S-4 (File No. 333-121655) to the Securities and ExchangeCommission on February 7,2005.                                                                                                                               |
| 10.9.2        |  | Change in Work Order, dated asof August 9, 2004, for Engineering, Procurement, and ConstructionContract by and between ORNI 7 LLC and Ormat Nevada Inc., incorporatedby reference to Exhibit 10.9.2 to Ormat Funding Corp. RegistrationStatement Amendment No. 1 on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on February 7,2005.                                                                                                      |
| 10.9.3        |  | Engineering, Procurement, andConstruction Agreement Guaranty, dated as of August 2, 2004, by OrmatTechnologies Inc. in favor of ORNI 7 LLC, incorporated by reference toExhibit 10.9.3 to Ormat Funding Corp. Registration Statement on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onDecember 23,2004.                                                                                                                                  |
| 10.10         |  | General                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.10.1       |  | Amendedand Restated Agreement of Limited Partnership of Mammoth-Pacific LP,dated as of January 26, 1990, incorporated by reference to Exhibit10.10.1 to Ormat Funding Corp. Registration Statement on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on December23, 2004.                                                                                                                                                                   |
|               |

39

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|               |  |                                                                                                                                                                                                                                                                                                                                                              |  |  |  |  |
|---------------|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                  |
| 10.10.2       |  | Amendment No. 1 toAmend ed and Restated Agreement of Limited Partnership ofMammoth-Pacific LP. dated as of January 26, 1990, incorporated byreference to Exhibit 10.10.2 to Ormat Funding Corp. RegistrationStatement on Form S-4 (File No. 333-121655) to the Securities andExchange Commission on December 23,2004.                                        |
| 10.10.3       |  | Authorization, Direction andTermination Agreement, dated as of October 16, 2004, by and among BNYWestern Trust Company, SRT, Inc., and Steamboat Development Corp.,incorporated by reference to Exhibit 10.10.3 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004. |
| 13.1          |  | Form 10-K for the year endedDecember 31, 2004, incorporated by reference to Ormat FundingCorporation Annual Report on Form 10-K (File No. 333-121655) to theSecurities and Exchange Commissions on March 29,2005.                                                                                                                                            |
| 31.1          |  | Certification of the ChiefExecutive Officer pursuant to 18 U.S.C. Section 1350, as adoptedpursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filedherewith.                                                                                                                                                                                          |
| 31.2          |  | Certification of the ChiefFinancial Officer pursuant to 18 U.S.C. Section 1350, as adoptedpursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filedherewith.                                                                                                                                                                                          |
| 32.1          |  | Certification of the ChiefExecutive Officer pursuant to 18 U.S.C. Section 1350, as adoptedpursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filedherewith.                                                                                                                                                                                          |
| 32.2          |  | Certification of the ChiefFinancial Officer pursuant to 18 U.S.C. Section 1350, as adoptedpursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filedherewith.                                                                                                                                                                                          |
| 99.1          |  | Material terms with respectto BLM geothermal resources leases, incorporated by reference toExhibit 99.1 to Ormat Funding Corp. Registration Statement on Form S-4(File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004.                                                                                                        |
| 99.2          |  | Material terms withrespect to BLM site leases, incorporated by reference to Exhibit 99.2to Ormat Technologies, Inc. Registration Statement on Form S-1 (FileNo. 333-117527) to the Securities and Exchange Commission on July 21,2004.                                                                                                                       |
| 99.3          |  | Material terms with respect toagreements addressing renewable energy pricing and payment issues,incorporated by reference to Exhibit 99.3 to Ormat Technologies, Inc.Registration Statement on Amendment No. 1 to Form S-1 (File No.333-117527) to the Securities and Exchange Commission on September 28,2004.                                              |
|               |

*Portions of this exhibit have been omittedand filed separately under an application for confidential treatmentwhich was granted by the Securities and Exchange Commission on January24, 2005 in connection with Ormat Funding Corp. Regulation Statementson Form S-4 (File No. 333-121655).

+We have entered into otherBLM geothermal resources leases that are substantially similar in termswith this exhibit. Any deviation in terms with this exhibit has beendescribed in Exhibit 99.1.

++ We have entered into other BLMsite leases that are substantially similar in terms with this exhibit.Any deviation in terms with this exhibit has been described in Exhibit99.2.

40

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SIGNATURES

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

|  | ORMATFUNDING CORP. |
|--|--------------------|

Date: November 10,2005

|        |  |        |  |                                                    |  |  |  |  |  |  |
|--------|--|--------|--|----------------------------------------------------|--|--|--|--|--|--|
|   |  | By:    |  | /s/CONNIE STECHMAN                                 |
|   |  |   |  | Name: ConnieStechman Title: Chief FinancialOfficer |
|        |

41

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EXHIBITINDEX

|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |  |  |  |
|---------------|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 4.1           |  | Indenture,dated as of February 13, 2004, among Ormat Funding Corp., Brady PowerPartners, Steamboat Development Corp., Steamboat Geothermal LLC,OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI 7 LLC, Ormesa LLC, andUnion Bank of California, N.A., incorporated by reference to Exhibit10.1.7 to Ormat Technologies, Inc. Registration Statement on Form S-1(File No. 333-117527) to the Securities and Exchange Commission on July21, 2004.                                      |
| 4.2           |  | Form of Exchange Note(included in Exhibit 4.1).                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 4.3           |  | FirstSupplemental Indenture, dated as of May 14, 2004, among Ormat FundingCorp., Brady Power Partners, Steamboat Development Corp., SteamboatGeothermal LLC, OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI 7 LLC,Ormesa LLC, and Union Bank of California, N.A., incorporated byreference to Exhibit 10.1.8 to Ormat Technologies, Inc. RegistrationStatement on Amendment No. 1 to Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on September 28,2004. |
| 4.4           |  | Second Supplemental Indenture,dated as of December 21, 2004, among Ormat Funding Corp., Brady PowerPartners, Steamboat Development Corp., Steamboat Geothermal LLC,OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI 7 LLC, Ormesa LLC, andUnion Bank of California, N.A., incorporated by reference to Exhibit4.4 to Ormat Funding Corp. Registration Statement on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on December 23,2004.                      |
| 4.5           |  | Guarantee, dated as of February13, 2004, by ORNI 1 LLC in favor of Union Bank of California, N.A.,incorporated by reference to Exhibit 4.5 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                                                                                                                                                                                          |
| 4.6           |  | Guarantee, dated as of February13, 2004, by ORNI 2 LLC in favor of Union Bank of California, N.A.,incorporated by reference to Exhibit 4.6 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                                                                                                                                                                                          |
| 4.7           |  | Guarantee, dated as of February13, 2004, by ORNI 7 LLC in favor of Union Bank of California, N.A.incorporated by reference to Exhibit 4.7 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                                                                                                                                                                                           |
| 4.8           |  | Guarantee, dated as of February13, 2004, by Steamboat Geothermal LLC in favor of Union Bank ofCalifornia, N.A., incorporated by reference to Exhibit 4.8 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities and Exchange Commission on December 23,2004.                                                                                                                                                                            |
| 4.9           |  | Guarantee, dated as of February13, 2004, by Steamboat Development Corp. in favor of Union Bank ofCalifornia, N.A., incorporated by reference to Exhibit 4.9 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities and Exchange Commission on December 23,2004.                                                                                                                                                                         |
| 4.10          |  | Guarantee, dated as of February13, 2004, by Brady Power Partners in favor of Union Bank of California,N.A., incorporated by reference to Exhibit 4.10 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                                                                                                                                                                               |
|               |

42

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|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |  |  |  |
|---------------|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4.11          |  | Guarantee, dated as ofFebruary 13, 2004, by OrMammoth Inc. in favor of Union Bank ofCalifornia, N.A., incorporated by reference to Exhibit 4.11 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities and Exchange Commission on December 23,2004.                                                                                                                                                                             |
| 4.12          |  | Deposit and DisbursementAgreement, dated as of February 13, 2004, among Ormat Funding Corp.,Brady Power Partners, Steamboat Development Corp., Steamboat GeothermalLLC, OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI 7 LLC, and Union Bankof California, N.A., incorporated by reference to Exhibit 4.12 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities and Exchange Commission on December 23,2004.                    |
| 4.13          |  | Collateral Agency Agreement,dated as of February 13, 2004, among Ormat Funding Corp., Brady PowerPartners, Steamboat Development Corp., Steamboat Geothermal LLC,OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI 7 LLC, Ormesa LLC, andUnion Bank of California, N.A., incorporated by reference to Exhibit4.13 to Ormat Funding Corp. Registration Statement Amendment No. 1 onForm S-4 (File No. 333-121655) to the Securities and ExchangeCommission on February 7,2005. |
| 4.14          |  | Registration Rights Agreement,dated as of February 13, 2004, by and among Ormat Funding Corp, BradyPower Partners, Steamboat Geothermal LLC, Steamboat Development Corp,OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI 7 LLC, and Lehman BrothersInc., incorporated by reference to Exhibit 4.14 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                              |
| 4.15          |  | Pledge and Security Agreement,dated as of February 13, 2004, by and between Ormat Nevada Inc. andUnion Bank of California, N.A., incorporated by reference to Exhibit4.5 to Ormat Funding Corp. Registration Statement on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on December 23,2004.                                                                                                                                                   |
| 4.16          |  | Pledge and Security Agreement,dated as of February 13, 2004, by and between Ormat Funding Corp. andUnion Bank of California, N.A., incorporated by reference to Exhibit4.16 to Ormat Funding Corp. Registration Statement on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on December23, 2004.                                                                                                                                                |
| 4.17          |  | First Amendment to Pledge andSecurity Agreement, dated as of October 12, 2004, by and between OrmatFunding Corp. and Union Bank of California, N.A., incorporated byreference to Exhibit 4.17 to Ormat Funding Corp. Registration Statementon Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on December 23, 2004.                                                                                                                              |
| 4.18          |  | Pledgeand Security Agreement, dated as of February 13, 2004, by and betweenBrady Power Partners and Union Bank of California, N.A., incorporatedby reference to Exhibit 4.18 to Ormat Funding Corp. RegistrationStatement on Form S-4 (File No. 333-121655) to the Securities andExchange Commission on December 23, 2004.                                                                                                                                               |
|               |

43

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|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  |  |  |  |
|---------------|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.19          |  | Pledge and SecurityAgreement, dated as of February 13, 2004, by and between SteamboatGeothermal LLC and Union Bank of California, N.A., incorporated byreference to Exhibit 4.19 to Ormat Funding Corp. Registration Statementon Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on December 23, 2004.                                                                                                                                             |
| 4.20          |  | Pledgeand Security Agreement, dated as of February 13, 2004, by and betweenSteamboat Development Corp. and Union Bank of California, N.A.,incorporated by reference to Exhibit 4.20 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                                                                                                                                           |
| 4.21          |  | Pledge and Security Agreement,dated as of February 13, 2004, by and between ORNI 1 LLC and Union Bankof California, N.A., incorporated by reference to Exhibit 4.21 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities and Exchange Commission on December 23,2004.                                                                                                                                                           |
| 4.22          |  | Pledge and Security Agreement,dated as of February 13, 2004, by and between ORNI 2 LLC and Union Bankof California, N.A., incorporated by reference to Exhibit 4.22 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities and Exchange Commission on December 23,2004.                                                                                                                                                           |
| 4.23          |  | Pledge and Security Agreement,dated as of February 13, 2004, by and between ORNI 7 LLC and Union Bankof California, N.A., incorporated by reference to Exhibit 4.23 to OrmatFunding Corp. Registration Statement on Form S-4 (File No. 333-121655)to the Securities and Exchange Commission on December 23,2004.                                                                                                                                                           |
| 4.24          |  | Third Supplemental Indenture,dated as of December 31, 2004, among Ormesa LLC, Ormat Funding Corp.,Brady Power Partners, Steamboat Development Corp., Steamboat GeothermalLLC, OrMammoth Inc., ORNI 1 LLC, ORNI 2 LLC, ORNI 7 LLC, and Union Bankof California, N.A., incorporated by reference to Exhibit 4.24 to OrmatFunding Corp. Registration Statement Amendment No. 1 on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on February7, 2005. |
| 4.25          |  | Guarantee, dated as ofDecember 31, 2004, by Ormesa LLC in favor of Union Bank of California,N.A., incorporated by reference to Exhibit 4.25 to Ormat Funding Corp.Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005.                                                                                                                                                                    |
| 4.26          |  | Pledge and Security Agreement,dated as of December 31, 2004, by and between Ormesa LLC and Union Bankof California, N.A., incorporated by reference to Exhibit 4.26 to OrmatFunding Corp. Registration Statement Amendment No. 1 on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on February7, 2005.                                                                                                                                            |
| 10.1          |  | FinancingAgreements                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.1.1        |  | Letter of Credit and LoanAgreement, dated as of June 30, 2004, by and between Ormat Nevada, Inc.and Hudson United Bank, incorporated by reference to Exhibit 10.1.16 toOrmat Technologies, Inc. Registration Statement on Amendment No. 2 toForm S-1 (File No. 333-117527) to the Securities and ExchangeCommission on October 22, 2004.                                                                                                                                   |
|               |

44

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|               |  |                                                                                                                                                                                                                                                                                                                                                            |  |  |  |  |
|---------------|--|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                |
| 10.1.2        |  | First Amendment toLetter of Credit and Loan Agreement, dated as of June 30, 2004, by andbetween Ormat Nevada, Inc. and Hudson United Bank, incorporated byreference to Exhibit 10.1.17 to Ormat Technologies, Inc. RegistrationStatement on Amendment No. 2 to Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on October 22,2004. |
| 10.2          |  | PurchaseAgreements                                                                                                                                                                                                                                                                                                                                         |
| 10.2.1        |  | Purchase Agreement, datedas of July 15, 2004, by and between Ormat Industries Ltd. and OrmatSystems Ltd., incorporated by reference to Exhibit 10.2.2 to OrmatTechnologies, Inc. Registration Statement on Form S-1 (File No.333-117527) to the Securities and Exchange Commission on July 21,2004.                                                        |
| 10.3          |  | Power PurchaseAgreements                                                                                                                                                                                                                                                                                                                                   |
| 10.3.1        |  | Power Purchase Contract,dated as of July 18, 1984, between Southern California Edison Companyand Republic Geothermal, Inc., incorporated by reference to Exhibit10.3.1 to Ormat Technologies, Inc. Registration Statement on Form S-1(File No. 333-117527) to the Securities and Exchange Commission on July21, 2004.                                      |
| 10.3.2        |  | Amendment No. 1, to thePower Purchase Contract, dated as of December 23, 1988, betweenSouthern California Edison Company and Ormesa Geothermal, incorporatedby reference to Exhibit 10.3.2 to Ormat Technologies, Inc. RegistrationStatement on Form S-1 (File No. 333-117527) to the Securities andExchange Commission on July 21,2004.                   |
| 10.3.3        |  | Power Purchase Contract, datedas of June 13, 1984, between Southern California Edison Company andOrmat Systems, Inc., incorporated by reference to Exhibit 10.3.3 toOrmat Technologies, Inc. Registration Statement on Form S-1 (File No.333-117527) to the Securities and Exchange Commission on July 21,2004.                                            |
| 10.3.4        |  | Power Purchase Contract, datedas of April 15, 1985, by and between Mammoth-Pacific LP and SouthernCalifornia Edison Company, incorporated by reference to Exhibit 10.3.13to Ormat Technologies, Inc. Registration Statement on Form S-1 (FileNo. 333-117527) to the Securities and Exchange Commission on July 21,2004.                                    |
| 10.3.5        |  | Amendment No. 1 to PowerPurchase Contract, dated as of October 27, 1989, by and betweenMammoth-Pacific LP and Southern California Edison Company, incorporatedby reference to Exhibit 10.3.14 to Ormat Technologies, Inc.Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.                |
| 10.3.6        |  | Amendment No. 2 to PowerPurchase Contract, dated as of December 20, 1989, by and betweenMammoth-Pacific LP and Southern California Edison Company, incorporatedby reference to Exhibit 10.3.15 to Ormat Technologies, Inc.Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.               |
| 10.3.7        |  | Amended and Restated PowerPurchase and Sales Agreement, dated as of December 2, 1986, by andbetween Mammoth-Pacific LP and Southern California Edison Company,incorporated by reference to Exhibit 10.3.11 to Ormat Technologies,Inc. Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.   |
|               |

45

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|               |  |                                                                                                                                                                                                                                                                                                                                                                         |  |  |  |  |
|---------------|--|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                             |
| 10.3.8        |  | Amendment No. 1, toAmended and Restated Power Purchase and Sale Agreement, dated as of May18, 1990, by and between Mammoth-Pacific LP and Southern CaliforniaEdison Company, incorporated by reference to Exhibit 10.3.12 to OrmatTechnologies, Inc. Registration Statement on Form S-1 (File No.333-117527) to the Securities and Exchange Commission on July 21,2004. |
| 10.3.9        |  | Power Purchase Contract, datedas of April 16, 1985, by and between Southern California Edison Companyand Santa Fe Geothermal, Inc., incorporated by reference to Exhibit10.3.16 to Ormat Technologies, Inc. Registration Statement on Form S-1(File No. 333-117527) to the Securities and Exchange Commission on July21, 2004.                                          |
| 10.3.10       |  | Amendment No. 1 to PowerPurchase Contract, dated as of October 25, 1985, by and betweenSouthern California Edison Company and Mammoth-Pacific LP, incorporatedby reference to Exhibit 10.3.17 to Ormat Technologies, Inc.Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.                             |
| 10.3.11       |  | Amendment No. 2 to PowerPurchase Contract, dated as of December 20, 1989, by and betweenSouthern California Edison Company and Pacific Lighting Energy Systems,incorporated by reference to Exhibit 10.3.18 to Ormat Technologies,Inc. Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.               |
| 10.3.12       |  | Interconnection FacilitiesAgreement, dated as of October 20, 1989, by and between SouthernCalifornia Edison Company and Mammoth-Pacific LP, incorporated byreference to Exhibit 10.3.19 to Ormat Technologies, Inc. RegistrationStatement on Form S-1 (File No. 333-117527) to the Securities andExchange Commission on July 21,2004.                                   |
| 10.3.13       |  | Interconnection FacilitiesAgreement, dated as of October 13, 1985, by and between SouthernCalifornia Edison Company and Mammoth-Pacific LP (II), incorporated byreference to Exhibit 10.3.20 to Ormat Technologies, Inc. RegistrationStatement on Form S-1 (File No. 333-117527) to the Securities andExchange Commission on July 21,2004.                              |
| 10.3.14       |  | Plant Connection Agreement forthe Ormesa Geothermal Plant, dated as of October 1, 1985, by andbetween Imperial Irrigation District and Ormesa Geothermal,incorporated by reference to Exhibit 10.3.26 to Ormat Technologies,Inc. Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.                     |
| 10.3.15       |  | Plant Connection Agreement forthe Ormesa IE Geothermal Plant, dated as of October 21, 1988, by andbetween Imperial Irrigation District and Ormesa IE, incorporated byreference to Exhibit 10.3.27 to Ormat Technologies, Inc. RegistrationStatement on Form S-1 (File No. 333-117527) to the Securities andExchange Commission on July 21,2004.                         |
| 10.3.16       |  | Plant Connection Agreement forthe Ormesa IH Geothermal Plant, dated as of October 3, 1989, by andbetween Imperial Irrigation District and Ormesa IH, incorporated byreference to Exhibit 10.3.28 to Ormat Technologies, Inc. RegistrationStatement on Form S-1 (File No. 333-117527) to the Securities andExchange Commission on July 21, 2004.                         |
|               |

46

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|               |  |                                                                                                                                                                                                                                                                                                                                                                                     |  |  |  |  |
|---------------|--|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                         |
| 10.3.17       |  | Transmission ServiceAgreement for the Ormesa I, Ormesa IE and Ormesa IH Geothermal PowerPlants, dated October 3, 1989, by and between Imperial IrrigationDistrict and Ormesa Geothermal, incorporated by reference to Exhibit10.3.31 to Ormat Technologies, Inc. Registration Statement on Form S-1(File No. 333-117527) to the Securities and Exchange Commission on July21, 2004. |
| 10.3.18       |  | Energy Services Agreement,dated as of February 2003, by and between Imperial Irrigation Districtand Ormesa, LLC, incorporated by reference to Exhibit 10.3.43 to OrmatTechnologies, Inc. Registration Statement on Amendment No. 1 Form S-1(File No. 333-117527) to the Securities and Exchange Commission onSeptember 28, 2004.                                                    |
| 10.3.19       |  | Agreement forthe Purchase and Sale of Electricity, dated as of November 18, 1983, byand between Geothermal Development Associates and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.19 to Ormat FundingCorp. Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005.         |
| 10.3.20       |  | Amendment to Agreement for thePurchase and Sale of Electricity, dated as of March 6, 1987, by andbetween Geothermal Development Associates and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.20 to Ormat FundingCorp. Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.               |
| 10.3.21       |  | Long-Term Agreement for thePurchase and Sale of Electricity, dated as of October 29, 1988, by andbetween Sierra Pacific Power Company and Far West Capital, Inc.,incorporated by reference to Exhibit 10.3.21 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                          |
| 10.3.22       |  | Long-Term Agreement for thePurchase and Sale of Electricity, dated as of January 24, 1991, by andbetween Far West Capital, Inc. and Sierra Pacific Power Company,incorporated by reference to Exhibit 10.3.22 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                          |
| 10.3.23       |  | Amendment to Long-TermAgreement for the Purchase and Sale of Electricity, dated as of October29, 1991, between Steamboat Development and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.23 to Ormat FundingCorp. Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                     |
| 10.3.24       |  | Amendment to Long-TermAgreement for the Purchase and Sale of Electricity, dated as of October29, 1992, between Steamboat Development and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.24 to Ormat FundingCorp. Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                     |
| 10.3.25       |  | Long-Term Agreement for thePurchase and Sale of Electricity, dated as of January 18, 1991, by andbetween Sierra Pacific Power Company and Far West Capital, Inc.,incorporated by reference to Exhibit 10.3.25 to Ormat Funding Corp.Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005.           |
|               |

47

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|               |  |                                                                                                                                                                                                                                                                                                                                                                                         |  |  |  |  |
|---------------|--|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                             |
| 10.3.26       |  | InterconnectionFacilities Agreement, dated as of October 20, 1989, by and betweenSouthern California Edison Company and Pacific Lighting Energy Systems,incorporated by reference to Exhibit 10.3.21 to Ormat Technologies,Inc. Registration Statement on Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on July 21,2004.                                      |
| 10.3.27       |  | Plant Operating ServicesAgreement, dated as of January 1, 1995, by and between Mammoth-PacificLP and Pacific Power Plant Operations, incorporated by reference toExhibit 10.3.27 to Ormat Funding Corp. Registration Statement on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004.                                                          |
| 10.3.28       |  | AssignmentAgreement, dated as of December 18, 2003, by and between Covanta PowerPlant Operations and Ormat Nevada, Inc., incorporated by reference toExhibit 10.3.28 to Ormat Funding Corp. Registration Statement AmendmentNo. 1 on Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on February 7, 2005.                                                       |
| 10.3.29       |  | IID- Edison Transmission Service Agreement for Alternative Resources,dated, September 26, 1985, by and between Imperial Irrigation Districtand Southern California Edison Company, incorporated by reference toExhibit 10.3.34 to Ormat Technologies, Inc. Registration Statement onForm S-1 (File No. 333-117527) to the Securities and ExchangeCommission on July 21,2004.            |
| 10.3.30       |  | Long-Term Firm Power PurchaseAgreement, dated June 28, 2004, between ORNI 7 and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.30 Ormat FundingCorp. Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005.                                                                      |
| 10.3.31       |  | Long Term Agreement for thePurchase and Sale of Electricity, dated as of October 5, 1990, by andbetween Nevada Geothermal Power Partners and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.31 to Ormat FundingCorp. Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                     |
| 10.3.32       |  | Amendment No. 1 to Long TermAgreement for the Purchase and Sale of Electricity, dated July 12,1991, by and between Brady Power Partners and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.32 to Ormat FundingCorp. Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005.       |
| 10.3.33       |  | Amendment No. 2 to Long TermAgreement for the Purchase and Sale of Electricity, dated as of June24, 2002, by and between Brady Power Partners and Sierra Pacific PowerCompany, incorporated by reference to Exhibit 10.3.33 to Ormat FundingCorp. Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005. |
| 10.4          |  | Leases                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.4.1        |  | OrmesaBLM Geothermal Resources Lease CA 966, incorporated by reference toExhibit 10.4.1 to Ormat Technologies, Inc. Registration Statement onForm S-1 (File No. 333-117527) to the Securities and ExchangeCommission on July 21, 2004.+                                                                                                                                                 |
|               |

48

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|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |  |  |  |
|---------------|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.4.2        |  | Ormesa BLM Licensefor Electric Power Plant Site CA 24678, incorporated by reference toExhibit 10.4.2 to Ormat Technologies, Inc. Registration Statement onForm S-1 (File No. 333-117527) to the Securities and ExchangeCommission on July 21,2004.++                                                                                                                                                                                                                                                     |
| 10.4.3        |  | Geothermal Resources Lease,dated as of November 18, 1983, by and between Sierra Pacific PowerCompany, as Lessor, and Geothermal Development Associates, as Lessee,and amended by the amendments dated January 7, 1985, October 29, 1988,and October 2, 1989, incorporated by reference to Exhibit 10.4.6 toOrmat Technologies, Inc. Registration Statement on Form S-1 (File No.333-117527) to the Securities and Exchange Commission on July 21,2004.*                                                  |
| 10.4.4        |  | Unprotected Lease Agreement,dated as of July 15, 2004, by and between Ormat Industries Ltd. andOrmat Systems Ltd., incorporated by reference to Exhibit 10.4.25 toOrmat Technologies, Inc. Registration Statement on Form S-1 (File No.333-117527) to the Securities and Exchange Commission on July 21,2004.                                                                                                                                                                                            |
| 10.4.5        |  | Geothermal Resources Lease,dated as of June 27, 1988, by and between Bernice Guisti, Judith Harveyand Karen Thompson, Trustees and Beneficiaries of the Guisti Trust asLessor and Far West Capital Inc. as Lessee, incorporated by referenceto Exhibit 10.4.26 to Ormat Technologies, Inc. Registration Statementon Amendment No. 1 to Form S-1 (File No. 333-117527) to the Securitiesand Exchange Commission on September 28,2004.*                                                                    |
| 10.4.6        |  | Amendment to GeothermalResources Lease, dated January, 1992, by and between Bernice Guisti,Judith Harvey and Karen Thompson, Trustees and Beneficiaries of theGuisti Trust, as Lessor and Far West Capital, Inc., as Lessee,incorporated by reference to Exhibit 10.4.27 to Ormat Technologies,Inc. Registration Statement on Amendment No. 1 to Form S-1 (File No.333-117527) to the Securities and Exchange Commission on September 28,2004.*                                                          |
| 10.4.7        |  | Second Amendment to GeothermalResources Lease, dated as of June 25, 1993, by and between BerniceGuisti, Judith Harvey and Karen Thompson, Trustees and Beneficiaries ofthe Guisti Trust, as Lessor and Far West Capital, Inc. and itsAssignee, Steamboat Development Corp., as Lessee, incorporated byreference to Exhibit 10.4.28 to Ormat Technologies, Inc. RegistrationStatement on Amendment No. 1 to Form S-1 (File No. 333-117527) to theSecurities and Exchange Commission on September 28,2004. |
| 10.4.8        |  | Geothermal Resources Sublease,dated as of May 31, 1991, by and between Fleetwood Corporation, asLessor, and Far West Capital, Inc., incorporated by reference toExhibit 10.4.29 to Ormat Technologies, Inc. Registration Statement onAmendment No. 1 to Form S-1 (File No. 333-117527) to the Securities andExchange Commission on September 28,2004.*                                                                                                                                                   |
| 10.4.9        |  | Geothermal Resources Lease,dated as of May 31, 1991, by and between Dorothy A. Towne, the Trust ofDorothy A. Towne and Fleetwood Corporation, incorporated by referenceto Exhibit 10.4.9 to Ormat Funding Corp. Registration StatementAmendment No. 1 on Form S-4 (File No. 333-121655) to the Securities andExchange Commission on February 7, 2005.                                                                                                                                                    |
|               |

49

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|               |  |                                                                                                                                                                                                                                                                                                                                                            |  |  |  |  |
|---------------|--|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                |
| 10.4.10       |  | Mammoth GeothermalLease, dated as of August 31, 1983, by and between Magma Energy, Inc.and Holt Geothermal Company, incorporated by reference to Exhibit10.4.10 to Ormat Funding Corp. Registration Statement Amendment No. 1on Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on February 7,2005.                                |
| 10.4.11       |  | First Amendment to MammothGeothermal Lease, dated as of April 30, 1987, by and between MagmaEnergy, Inc. and Holt Geothermal Company, incorporated by reference toExhibit 10.4.11 to Ormat Funding Corp. Registration Statement AmendmentNo. 1 on Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on February 7,2005.              |
| 10.4.12       |  | Second Amendment to MammothGeothermal Lease, dated as of January 1, 1990, by and between MagmaEnergy, Inc. and Holt Geothermal Company, incorporated by reference toExhibit 10.4.12 to Ormat Funding Corp. Registration Statement AmendmentNo. 1 on Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on February 7,2005.            |
| 10.4.13       |  | Third Amendment to MammothGeothermal Lease, dated as of April 12, 1991, by and between MagmaEnergy, Inc. and Holt Geothermal Company, incorporated by reference toExhibit 10.4.13 to Ormat Funding Corp. Registration Statement AmendmentNo. 1 on Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on February 7,2005.              |
| 10.4.14       |  | Grant of Easement Agreement,dated as of March 27, 1998, by David. P. Frase, Timothy D. Frase andJames W. Roberts in favor of Brady Power Partners, incorporated byreference to Exhibit 10.4.14 to Ormat Funding Corp. RegistrationStatement Amendment No. 1 on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on February 7,2005. |
| 10.4.15       |  | Sublease, dated as of January14, 2004, by and between Western States Geothermal Company and BradyPower Partners, incorporated by reference to Exhibit 10.4.15 to OrmatFunding Corp. Registration Statement Amendment No. 1 on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on February7, 2005.                                  |
| 10.5          |  | Operation and MaintenanceAgreements                                                                                                                                                                                                                                                                                                                        |
| 10.5.1        |  | Amended and RestatedOperation and Maintenance Agreement, dated as of December 8, 2003, byand among ORNI 7 LLC, Steamboat Geothermal LLC, and Ormat Nevada Inc.,incorporated by reference to Exhibit 10.5.1 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.    |
| 10.5.2        |  | Operation and MaintenanceAgreement, dated as of April 15, 2002, by and between Ormesa LLC andOrmat Nevada, Inc., incorporated by reference to Exhibit 10.5.2 toOrmat Funding Corp. Registration Statement on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on December 23,2004.                                                  |
| 10.5.3        |  | Operation and MaintenanceAgreement, dated as of January 1, 2002, by and between Brady PowerPartners and Ormat Nevada, Inc., incorporated by reference to Exhibit10.5.3 to Ormat Funding Corp. Registration Statement on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on December23, 2004.                                       |
|               |

50

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|               |  |                                                                                                                                                                                                                                                                                                                                                                          |  |  |  |  |
|---------------|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                              |
| 10.5.4        |  | First Amendment toBrady Operation and Maintenance Agreement, dated as of February 13,2004, by and between Brady Power Partners and Ormat Nevada, Inc.,incorporated by reference to Exhibit 10.5.4 to Ormat Funding Corp.Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005.            |
| 10.6          |  | InterconnectionAgreements                                                                                                                                                                                                                                                                                                                                                |
| 10.6.1        |  | Special FacilitiesAgreement, dated as of October 29, 1988, by and between Sierra PacificPower Company and Far West Capital, Inc., incorporated by reference toExhibit 10.6.1 to Ormat Funding Corp. Registration Statement AmendmentNo. 1 on Form S-4 (File No. 333-121655) to the Securities and ExchangeCommission on February 7,2005.                                 |
| 10.6.2        |  | Special Facilities Agreement,dated as of April 24, 1992, by and between Sierra Pacific Power Companyand Far West Capital, Inc., incorporated by reference to Exhibit 10.6.2to Ormat Funding Corp. Registration Statement Amendment No. 1 on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onFebruary 7, 2005.                                  |
| 10.7          |  | Location andOccupancy Agreements                                                                                                                                                                                                                                                                                                                                         |
| 10.7.1        |  | FacilityLocation and Occupancy Agreement, dated as of December 31, 1985, by andbetween Sierra Pacific Power Company and Far West Hydroelectric Fund,Ltd., incorporated by reference to Exhibit 10.7.1 to Ormat FundingCorp. Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004.                       |
| 10.8          |  | AcquisitionAgreements                                                                                                                                                                                                                                                                                                                                                    |
| 10.8.1        |  | Interest PurchaseAgreement, dated as of June 30, 2003, and among ORNI 7 LLC, U.S. EnergySystems, Inc., and Ormat Nevada, Inc., incorporated by reference toExhibit 10.8.1 to Ormat Funding Corp. Registration Statement on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004.                                                  |
| 10.8.2        |  | Interest PurchaseAgreement, dated June 30, 2003, by and among ORNI 7 LLC, Far WestCapital, Inc., and 1-A Enterprises, incorporated by reference toExhibit 10.8.2 to Ormat Funding Corp. Registration Statement on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004.                                                           |
| 10.8.3        |  | Sale and PurchaseAgreement, dated November 19, 2003, by and among Far West Capital,Inc., FW Consulting Services, L.C., Geo Energy, LLC, SB Geo, Inc., andORNI 7, incorporated by reference to Exhibit 10.8.3 to Ormat FundingCorp. Registration Statement Amendment No. 1 on Form S-4 (File No.333-121655) to the Securities and Exchange Commission on February 7,2005. |
| 10.8.4        |  | Purchase and Sale Agreement,dated as of June 1, 2004, by and between The Burlington Northern andSanta Fe Railway Company and Brady Power Partners, incorporated byreference to Exhibit 10.8.4 to Ormat Funding Corp. RegistrationStatement on Form S-4 (File No. 333-121655) to the Securities andExchange Commission on December 23, 2004.                              |
|               |

51

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|               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
|---------------|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.8.5        |  | Sale and PurchaseAgreement, dated February 28, 2001, by and among ESI BH LimitedPartnership, TPC Brady, Inc., ORNI 1 LLC, and ORNI 2 LLC, incorporatedby reference to Exhibit 10.8.5 to Ormat Funding Corp. RegistrationStatement on Form S-4 (File No. 333-121655) to the Securities andExchange Commission on December 23,2004.                                                                                                                                    |
| 10.8.6        |  | Sale and Purchase Agreement,dated April 4, 2002, by and among CH Ormesa, Inc., CH Ormesa LP, Inc.,ORNI 8 LLC, and Ormat Funding Corp., incorporated by reference toExhibit 10.8.6 to Ormat Funding Corp. Registration Statement on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004.                                                                                                                                      |
| 10.8.7        |  | Sale and PurchaseAgreement, dated January 31, 2002, by and among CD Ormesageo II-A,Inc., CD Ormesageo II-B, Inc., CD Ormesageo II-C, Inc., Bell AtlanticTriCon Leasing Corporation, Constellation Power, Inc. and VerizonCapital Corp., ORNI 8 LLC, and Ormat Funding Corp., incorporated byreference to Exhibit 10.8.7 to Ormat Funding Corp. RegistrationStatement on Form S-4 (File No. 333-121655) to the Securities andExchange Commission on December 23,2004. |
| 10.8.8        |  | Sale and Purchase Agreement,dated April 4, 2002, by and among the Selling Entities and ORNI 7 LLC,ORNI 8 LLC, and Ormat Funding Corp., incorporated by reference toExhibit 10.8.8 to Ormat Funding Corp. Registration Statement on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004.                                                                                                                                      |
| 10.9          |  | Engineering,Procurement, and ConstructionContracts                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.9.1        |  | Engineering, Procurement,and Construction Contract, dated as of August 2, 2004, by and betweenORNI 7 LLC and Ormat Nevada Inc., incorporated by reference to Exhibit10.9.1 to Ormat Funding Corp. Registration Statement Amendment No. 1 onForm S-4 (File No. 333-121655) to the Securities and ExchangeCommission on February 7,2005.                                                                                                                               |
| 10.9.2        |  | Change in Work Order, dated asof August 9, 2004, for Engineering, Procurement, and ConstructionContract by and between ORNI 7 LLC and Ormat Nevada Inc., incorporatedby reference to Exhibit 10.9.2 to Ormat Funding Corp. RegistrationStatement Amendment No. 1 on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on February 7,2005.                                                                                                      |
| 10.9.3        |  | Engineering, Procurement, andConstruction Agreement Guaranty, dated as of August 2, 2004, by OrmatTechnologies Inc. in favor of ORNI 7 LLC, incorporated by reference toExhibit 10.9.3 to Ormat Funding Corp. Registration Statement on FormS-4 (File No. 333-121655) to the Securities and Exchange Commission onDecember 23,2004.                                                                                                                                  |
| 10.10         |  | General                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.10.1       |  | Amendedand Restated Agreement of Limited Partnership of Mammoth-Pacific LP,dated as of January 26, 1990, incorporated by reference to Exhibit10.10.1 to Ormat Funding Corp. Registration Statement on Form S-4 (FileNo. 333-121655) to the Securities and Exchange Commission on December23, 2004.                                                                                                                                                                   |
|               |

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|               |  |                                                                                                                                                                                                                                                                                                                                                              |  |  |  |  |
|---------------|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                  |
| 10.10.2       |  | Amendment No. 1 toAmend ed and Restated Agreement of Limited Partnership ofMammoth-Pacific LP. dated as of January 26, 1990, incorporated byreference to Exhibit 10.10.2 to Ormat Funding Corp. RegistrationStatement on Form S-4 (File No. 333-121655) to the Securities andExchange Commission on December 23,2004.                                        |
| 10.10.3       |  | Authorization, Direction andTermination Agreement, dated as of October 16, 2004, by and among BNYWestern Trust Company, SRT, Inc., and Steamboat Development Corp.,incorporated by reference to Exhibit 10.10.3 to Ormat Funding Corp.Registration Statement on Form S-4 (File No. 333-121655) to theSecurities and Exchange Commission on December 23,2004. |
| 13.1          |  | Form 10-K for the year endedDecember 31, 2004, incorporated by reference to Ormat FundingCorporation Annual Report on Form 10-K (File No. 333-121655) to theSecurities and Exchange Commissions on March 29,2005.                                                                                                                                            |
| 31.1          |  | Certification of the ChiefExecutive Officer pursuant to 18 U.S.C. Section 1350, as adoptedpursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filedherewith.                                                                                                                                                                                          |
| 31.2          |  | Certification of the ChiefFinancial Officer pursuant to 18 U.S.C. Section 1350, as adoptedpursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filedherewith.                                                                                                                                                                                          |
| 32.1          |  | Certification of the ChiefExecutive Officer pursuant to 18 U.S.C. Section 1350, as adoptedpursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filedherewith.                                                                                                                                                                                          |
| 32.2          |  | Certification of the ChiefFinancial Officer pursuant to 18 U.S.C. Section 1350, as adoptedpursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filedherewith.                                                                                                                                                                                          |
| 99.1          |  | Material terms with respectto BLM geothermal resources leases, incorporated by reference toExhibit 99.1 to Ormat Funding Corp. Registration Statement on Form S-4(File No. 333-121655) to the Securities and Exchange Commission onDecember 23, 2004.                                                                                                        |
| 99.2          |  | Material terms withrespect to BLM site leases, incorporated by reference to Exhibit 99.2to Ormat Technologies, Inc. Registration Statement on Form S-1 (FileNo. 333-117527) to the Securities and Exchange Commission on July 21,2004.                                                                                                                       |
| 99.3          |  | Material terms with respect toagreements addressing renewable energy pricing and payment issues,incorporated by reference to Exhibit 99.3 to Ormat Technologies, Inc.Registration Statement on Amendment No. 1 to Form S-1 (File No.333-117527) to the Securities and Exchange Commission on September 28,2004.                                              |
|               |

*Portions of this exhibit have been omittedand filed separately under an application for confidential treatmentwhich was granted by the Securities and Exchange Commission on January24, 2005 in connection with Ormat Funding Corp. Regulation Statementson Form S-4 (File No. 333-121655).

+We have entered into otherBLM geothermal resources leases that are substantially similar in termswith this exhibit. Any deviation in terms with this exhibit has beendescribed in Exhibit 99.1.

++ We have entered into other BLMsite leases that are substantially similar in terms with this exhibit.Any deviation in terms with this exhibit has been described in Exhibit99.2.

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