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

                                    FORM 10-Q

             [x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF
                      THE SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 2003

                                       Or

     [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

 For the transition period from ___________________ to _______________________

                           Commission File No. 0-13510


      ZOND-PANAERO WINDSYSTEM PARTNERS I, A CALIFORNIA LIMITED PARTNERSHIP


State or other jurisdiction of incorporation or organization:  California

I.R.S. Employer Identification No:  77-0035358

Address of principal executive offices:  1221 Lamar Street, Suite 1600, Houston,
Texas 77010

Registrant's telephone number, including area code:  (713) 345-3582

Securities registered pursuant to Section 12(b) of the Act:  None

Securities  registered  pursuant to Section  12(g) of the Act:  Units of Limited
Partnership Interest

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. YES             NO X

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act). YES    NO X

<PAGE>

                                Explanatory Note


Zond-PanAero Windsystem Partners I ("the Partnership") has been delinquent in
the filing of certain periodic reports required by the Securities Exchange Act
of 1934, as amended (the "Exchange Act"). The reasons for this delinquency are
more fully described in the Current Report on Form 8-K filed by the Partnership
with the Securities and Exchange Commission (the "SEC") on November 5, 2003.
This Quarterly Report on Form 10-Q contains unaudited business and financial
information for the six months ended June 30, 2003 and subsequent event
disclosures through August 15, 2003. Concurrent with the filing of this
Quarterly Report, the Partnership is filing with the SEC its Annual Report on
Form 10-K for the three years ended December 31, 2001, 2002 and 2003.


                                       2

<PAGE>

                       Zond-PanAero Windsystem Partners I,
                        A California Limited Partnership
                    For the three months ended June 30, 2003

                                TABLE OF CONTENTS

                                     PART I
                              FINANCIAL INFORMATION

Item 1.  Financial Statements

     Condensed Balance Sheets at June 30, 2003 (Unaudited) and December 31,
     2002.

     Unaudited Condensed Statements of Operations for the six months ended June
     30, 2003 and June 30, 2002.

     Unaudited Condensed Statements of Operations for the three months ended
     June 30, 2003 and June 30, 2002.

     Unaudited Condensed Statements of Changes in Partners' Capital (Deficit) at
     June 30, 2003 and December 31, 2002.

     Unaudited Condensed Statements of Cash Flows for the six months ended June
     30, 2003 and June 30, 2002.

     Notes to Unaudited Condensed Financial Statements.

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

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Item 4. Controls and Procedures

                                     PART II
                                OTHER INFORMATION

Item 1. Legal Proceedings

Item 2. Changes in Securities, Use of Proceeds and Issuer Purchases of Equity
        Securities

Item 3. Defaults Upon Senior Securities

Item 4. Submission of Matters to a Vote of Security Holders

Item 5. Other Information

Item 6. Exhibits and Reports on Form 8-K


                                       3
<PAGE>

                       ZOND-PANAERO WINDSYSTEM PARTNERS I,
                        A CALIFORNIA LIMITED PARTNERSHIP
                            CONDENSED BALANCE SHEETS
                             (Dollars in thousands)

<TABLE>

<CAPTION>

<S>                                                    <C>                                 <C>

                                                           June 30, 2003                    December 31, 2002
                                                       ------------------------           -----------------------
                                                             (Unaudited)
 Assets
 Current assets:
   Cash and cash equivalents                            $           1,559                   $               472
   Accounts receivable                                                -                                     105
   Accounts receivable from related party                           1,705                                   813
   Other current assets                                               168                                    39
                                                       ------------------------             ----------------------
 Total current assets                                               3,432                                 1,429
                                                       ------------------------             ----------------------

 Property, Plant and Equipment
   Buildings                                                           98                                    98
   Plant and Equipment                                             49,561                                49,561
   Less - accumulated depreciation                                (45,971)                              (44,723)
                                                       ------------------------           --------------------------
 Property, Plant and Equipment, net                                 3,688                                 4,936
                                                       ------------------------           --------------------------
      Total assets                                     $            7,120                 $               6,365
                                                       ========================           ==========================

 Liabilities and partners' deficit
 Current liabilities:
   Accounts payable and accrued expenses               $              292                 $                  68
   Accounts payable to related party                                  739                                   547
   Current portion of notes payable
      to related party                                              1,008                                 1,008
   Accrued interest to related party                                5,773                                 5,718
                                                       ------------------------           --------------------------
 Total current liabilities                                          7,812                                 7,341
                                                       ------------------------           --------------------------

Partners' deficit
  General partner                                                      (3)                                   (4)
  Limited partners                                                 (1,267)                               (1,549)
  Substituted limited partner (Note 1)                                 (3)                                   (4)
  Contributed capital                                                 581                                   581
                                                       ------------------------           --------------------------
     Total partners' deficit                                         (692)                                 (976)
                                                       ------------------------           --------------------------

     Total liabilities and partners'                   ------------------------           --------------------------
       deficit                                         $            7,120                 $               6,365
                                                       ========================           ==========================
</TABLE>

The accompanying notes are an integral part of the unaudited condensed financial
statements.


                                       4
<PAGE>
                       ZOND-PANAERO WINDSYSTEM PARTNERS I,
                        A CALIFORNIA LIMITED PARTNERSHIP
                  UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
    (Dollars in thousands, except per Unit value, which is in whole dollars)
                                   (Unaudited)


<TABLE>

<CAPTION>






                                                                      For the three months ended
<S>                                                    <C>                             <C>

                                                             June 30, 2003                  June 30, 2002
                                                     ----------------------------    ------------------------------
            Revenue:
              Sale of electricity                     $                 1,706         $                   1,939
              Other income                                                  -                                 -
                                                     ----------------------------    ------------------------------
              Total revenue                                             1,706                             1,939

            Costs and expenses:
              Depreciation                                                624                               624
              Interest expense                                             28                                99
              Property taxes                                               19                                21
              Easement fees to related party                               44                                25
              Management fees to
                 related party                                             18                                10
              Maintenance and other operating costs
                 to related and other parties                             253                               103
              Insurance costs                                              68                                55
              Other operating costs                                        14                                 1
                                                     ----------------------------    ------------------------------
            Total costs and expenses                                    1,068                               938
                                                     ----------------------------    ------------------------------

            Net income                                $                   638        $                    1,001
                                                     ============================    ==============================

            Net income per Unit                       $                   536        $                      841
                                                     ============================    ==============================

            Number of outstanding Limited
               Partner Units                                            1,190                             1,190
                                                     ============================    ==============================


The accompanying notes are an integral part of the unaudited condensed financial
statements.

</TABLE>

                                       5
<PAGE>


                       ZOND-PANAERO WINDSYSTEM PARTNERS I,
                        A CALIFORNIA LIMITED PARTNERSHIP
                  UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
    (Dollars in thousands, except per Unit value, which is in whole dollars)
                                   (Unaudited)


<TABLE>

<CAPTION>






                                                                       For the six months ended
<S>                                                    <C>                             <C>

                                                             June 30, 2003                  June 30, 2002
                                                     ----------------------------    ------------------------------
            Revenue:
              Sale of electricity                     $                 2,381         $                   2,746
              Other income                                                  -                                40
                                                     ----------------------------    ------------------------------
              Total revenue                                             2,381                             2,786

            Costs and expenses:
              Depreciation                                              1,248                             1,248
              Interest expense                                             55                               221
              Property taxes                                               39                                33
              Easement fees to related party                               74                               101
              Management fees to
                 related party                                             30                                40
              Maintenance and other operating costs
                 to related and other parties                             502                               418
              Insurance costs                                             135                               112
              Other operating costs                                        14                                 1
                                                     ----------------------------    ------------------------------
            Total costs and expenses                                    2,097                             2,174
                                                     ----------------------------    ------------------------------

            Net income                                $                   284        $                      612
                                                     ============================    ==============================

            Net income per Unit                         $                   239        $                      514
                                                     ============================    ==============================

            Number of outstanding Limited
               Partner Units                                            1,190                             1,190
                                                     ============================    ==============================


</TABLE>



The accompanying notes are an integral part of the unaudited condensed financial
statements.

                                       6
<PAGE>


                       ZOND-PANAERO WINDSYSTEM PARTNERS I,
                        A CALIFORNIA LIMITED PARTNERSHIP
         UNAUDITED CONDENSED STATEMENTS OF CHANGES IN PARTNERS' DEFICIT
                             (Dollars in thousands)
                                   (Unaudited)



<TABLE>

<CAPTION>



<S>                                                    <C>               <C>            <C>            <C>             <C>


                                                                                                     Substituted
                                                                                                       Limited      Contributed
                                                                         General        Limited        Partner        Capital
                                                           Total         Partner       Partners       (Note 1)       (Note 4)
                                                       -------------- -------------- -------------- -------------- --------------
            Profit and loss allocation                       100.00%          0.50%         99.00%          0.50%
                                                       -------------- -------------- -------------- -------------- --------------

            Balance at December 31, 2001                     (1,442)            (6)         (2,011)           (6)            581

            Net income                                          466              2             462             2               -
                                                       -------------- -------------- -------------- -------------- --------------

            Balance at December 31, 2002                       (976)            (4)         (1,549)           (4)            581

            Net income                                          284              1             282             1               -
                                                       -------------- -------------- -------------- -------------- --------------

            Balance at June 30, 2003                    $      (692)            (3)     $   (1,267)           (3)    $       581
                                                       ==========================================================================

</TABLE>


The accompanying notes are an integral part of the unaudited condensed financial
statements.

                                       7
<PAGE>

                       ZOND-PANAERO WINDSYSTEM PARTNERS I,
                        A CALIFORNIA LIMITED PARTNERSHIP
                  UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
                             (Dollars in thousands)
                                   (Unaudited)

<TABLE>

<CAPTION>






                                                                      For the six months Ended
<S>                                                    <C>                             <C>

                                                             June 30, 2003                  June 30, 2002
                                                     ----------------------------    ------------------------------
Cash Flow From Operating Activities:

Net income                                            $                   284         $                      612

Reconciliation of net loss to net cash
  provided by operating activities:


Depreciation                                                            1,248                              1,248

Changes in operating assets and liabilities
Accounts receivable                                                       105                              1,262
Acccounts receivable from related party                                  (892)                            (1,939)
Prepaid insurance and other                                              (129)                               (38)
Accounts payable and accrued expenses                                     224                                106
Amount payable to related party                                           192                                (25)
Accrued interest payable to related party                                  55                                221
                                                     ----------------------------    ------------------------------
Net cash provided by operating activities                               1,087                              1,447

Cash flows used in financing activities:

Principal payments on notes payable to related party                        -                             (1,007)
                                                     ----------------------------    ------------------------------
Net increase in cash and cash equivalents                               1,087                                440

Cash and cash equivalents at beginning of the period                      472                                 83
                                                     ----------------------------    ------------------------------

Cash and cash equivalents at end of period            $                 1,559        $                       523
                                                     ============================    ==============================

Supplemental disclosure of cash flow information:
  Cash paid during the period for interest            $                     -        $                        -

</TABLE>



The accompanying notes are an integral part of the unaudited condensed financial
statements.

                                       8
<PAGE>

                       ZOND-PANAERO WINDSYSTEM PARTNERS I,
                        A CALIFORNIA LIMITED PARTNERSHIP


                NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS


NOTE 1 - BASIS OF PRESENTATION

The financial statements included herein for the quarterly periods ended June
30, 2003 and 2002 have been prepared by Zond-PanAero Windsystem Partners I, a
California Limited Partnership (the "Partnership") without audit pursuant to the
rules and regulations of the SEC. Accordingly, these statements reflect all
adjustments (consisting only of normal recurring entries), which are, in the
opinion of the Partnership, necessary for a fair statement of the financial
results for the interim periods. Certain information and notes normally included
in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such rules and
regulations, although the Partnership believes that the disclosures are adequate
to make the information presented not misleading

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.

NOTE 2 - THE PARTNERSHIP

Introduction

The Partnership was formed on June 29, 1984 to purchase, own and operate a
system of 300 Vestas Energy A/S Model V-15 wind turbine electric generators (the
"Turbines"). The Turbines, together with certain infrastructural improvements
(the "Infrastructural Improvements") which are owned by Mesa Wind Developers
("Mesa"), a joint venture between Enron Wind Systems, Inc. ("EWSI") and an
affiliate of PanAero Corporation ("PanAero"), form an integrated electric power
generating facility (the "Windsystem") with a rated capacity of 19.5 megawatts
in the San Gorgonio Pass area of the San Bernardino Mountains near Palm Springs,
California (the "Operating Site"). EWSI is a developer and operator of
commercial wind-powered electric generating facilities and PanAero is a wind
resources development company. On January 3, 1997, EWSI's parent, Zond
Corporation, became a wholly-owned subsidiary of Enron Renewable Energy Corp.,
which is wholly-owned by Enron Corp. ("Enron"). In May 1997, the name of Zond
Corporation was changed to Enron Wind Corp. ("EWC").

The general partner (the "General Partner") of the Partnership is Zond
Windsystems Management LLC ("ZWM"), a California limited liability company
wholly-owned by Enron Wind Systems, LLC ("EWS"). See "Bankruptcy and Mergers"
regarding certain affiliated mergers and name changes affecting ZWM, EWS and
EWC. The business of the Partnership and the respective rights of its partners,
including the Partnership's limited partners (the "Limited Partners"), are

                                       9
<PAGE>

governed by the First Amended and Restated Certificate and Agreement of Limited
Partnership of Zond-PanAero Windsystem Partners I, a California Limited
Partnership, entered into on November 29, 1984, as amended (the "Partnership
Agreement").

The Partnership Agreement states that the Partnership will terminate on December
31, 2005, unless earlier terminated in accordance with the provisions of the
Partnership Agreement. The Windsystem, which became operational in November
1984, was constructed by Mesa Construction Company ("MCC"), a joint venture
between an affiliate of EWSI and an affiliate of PanAero. The Partnership paid
MCC a total of $48.9 million for the purchase, construction and installation of
the Turbines, comprised of $22.4 million in cash and $26.5 million in the form
of eighteen-year, 13% notes payable in equal semi-annual installments of
principal and interest totaling $1.9 million (the "Purchase Notes"). As of the
date of filing of this report, the Partnership is in default of the Purchase
Notes. See Notes 3 and 4 below.

Bankruptcy and Mergers

Commencing on December 2, 2001, and periodically thereafter, Enron and certain
of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the
United States Bankruptcy Code (the "Bankruptcy Code"). On February 20, 2002, EWC
and EWSI each filed a voluntary petition for relief under Chapter 11 of the
Bankruptcy Code. Additionally, two California limited liability companies formed
on February 19, 2002 for the purposes of merging with EWC and EWSI in
anticipation of the sale of Enron's wind business also filed voluntary petitions
for relief under Chapter 11 of the Bankruptcy Code.

EWC merged with and into one of such limited liability companies on April 19,
2002 and the surviving limited liability company changed its name to Enron Wind
LLC ("EW"). EWSI merged with and into the other limited liability company, also
on April 19, 2002, and the surviving limited liability company changed its name
to Enron Wind Systems, LLC.

On April 12, 2002, Zond Windsystems Management Corporation ("ZWMC"), the general
partner of the Partnership at such time, merged with and into a third California
limited liability company, formed on March 12, 2002, and the surviving limited
liability company changed its name to Zond Windsystems Management LLC. On May 3,
2002, Zond Construction Corp. merged with and into a fourth California limited
liability company, formed on March 21, 2002, and the surviving limited liability
company changed its name to Zond Construction LLC ("ZC").

Substituted Limited Partner

PanAero Management Corporation ("PAMC"), a California corporation wholly-owned
by PanAero, formerly served as a general partner of the Partnership (together
with ZWMC, the "Former General Partners"). In June 1988, the Partnership
solicited a vote by proxy of the Limited Partners to remove PAMC as a general
partner. Pursuant to that vote, PAMC was converted to a substituted limited
partner. Although the term "Substituted Limited Partner" is defined in the
Partnership Agreement as any individual, partnership, corporation, trust or
other entity admitted to the Partnership as a Limited Partner pursuant to
transfer provisions under the Partnership Agreement, the term substituted
limited partner is used in the Unaudited Condensed Balance Sheets at June 30,
2003 and December 31, 2002 and the Unaudited Condensed Statements of Changes in
Partners' Capital (Deficit) for the three and six months ended June 30, 2003 and
for the year ended December 31, 2002 only in reference to the substituted
limited partner interest created by the removal of PAMC as a general partner.
Under an Agreement of Settlement and Mutual Releases (the "Settlement
Agreement") executed on June 26, 2000, PAMC agreed to transfer its substituted
limited partner interest in the Partnership to ZWMC.

                                       10
<PAGE>

Sale to General Electric

On April 10, 2002, Enron, EWC and certain of its subsidiaries, including EWSI,
entered into an Amended and Restated Purchase and Sale Agreement in which such
entities agreed to sell in an asset sale (the "GE Sale") their wind turbine
manufacturing, operation and maintenance and construction businesses to General
Electric Company, acting through its GE power systems business ("GEPS"). The GE
Sale was consummated on May 10, 2002. EW and its subsidiary companies retained
its existing wind power projects including the indirect ownership of the general
partnership interest in the Partnership. However, effective as of the sale,
substantially all of the employees who had been involved in the management of
the Partnership transferred to GEPS.

Following the sale to GEPS, new management was appointed to manage and operate
the Partnership, and ZWM's principal executive offices were moved to 1400 Smith
Street, Houston, Texas 77002. Eric D. Gadd was appointed President and Chief
Executive Officer of ZWM on September 26, 2002.

New Management and Financial Reports

Until its appointment, the new management of the Partnership had no material
involvement with the business and operations of the Partnership. In the process
of reviewing the Partnership's books and records and through conversations with
prior management, it appeared to new management that the Partnership had
attempted, but failed, to file with the SEC certain Partnership Exchange Act
reports for certain time periods preceding the Enron bankruptcy. The submissions
of such reports into the EDGAR filing system were not accepted although prior
management apparently believed the filings were made successfully. These reports
consist of the Partnership's Form 10-K for the year ended December 31, 1999, the
Partnership's Forms 10-Q for each of the three quarters of 2000, the
Partnership's Form 10-K for the year ended December 31, 2000, and the
Partnership's Forms 10-Q for the first and second quarters of 2001. These
reports appear to have been prepared by prior management of the Partnership and
audited or reviewed, as the case may be, by Arthur Andersen LLP. The Partnership
has copies of the EDGARized version of each of such reports as well as most of
the cover sheets reflecting the attempted EDGAR submissions. To date, the
Partnership has not filed any of these reports with the SEC.

During the second quarter of 2003, current management of the Partnership
continued its review of the current and historical financial information
available to it, but was unable to prepare quarterly and annual reports that
complied with Exchange Act requirements because the Partnership had not been
able to retain an independent auditor. Management believed that the fact that
EWS is a debtor-in-possession under Chapter 11 of the Bankruptcy Code and the
fact that it and ZWM are indirect wholly owned subsidiaries of Enron made it
extraordinarily difficult for the Partnership to find an independent auditor to
replace Arthur Andersen LLP. As of August 15, 2003, in addition to the reports
disclosed in the previous paragraph, the Partnership had not filed the
Partnership's Form 10-K for the year ended December 31, 2001, the Partnership's
Forms 10-Q for each of the three quarters of 2002, the Partnership's Form 10-K
for the year ended December 31, 2002, or the Partnership's Forms 10-Q for the
first and second quarter of 2003.


                                       11
<PAGE>

Operation and Maintenance Services

EWS manages the Windsystem pursuant to a windsystem management agreement with
the Partnership executed on July 27, 1988 (the "Management Agreement"). The
Management Agreement terminates by its terms on December 31, 2004. Prior to May
10, 2002, Enron Wind Maintenance LLC, an affiliate of EWS, provided operations
and maintenance services for the Windsystem. On May 10, 2002, in connection with
the GE Sale, EWS contracted with GE Wind Energy, LLC to perform certain
operations and maintenance services relating to the Windsystem for a period of
one year ending on May 10, 2003.

In April 2003, EWS entered into an agreement (the "O&M Agreement") with SeaWest
Asset Management Services, LLC ("SeaWest") to provide certain operation and
maintenance services relating to the Windsystem for a 5 year period ending on
May 10, 2008. If EWS terminates the O&M Agreement prior to the end of its stated
term, EWS may be required to pay certain agreed demobilization fees to SeaWest.
If EWS is required to pay such fees, EWS may seek recovery from the Partnership
of some or all of the amount of such fees pursuant to the terms of the
Management Agreement. Management currently estimates that the amount of the
demobilization fee, if any, for which EWS would seek recovery from the
Partnership would not be in excess of approximately $100,000, with the amount of
such demobilization fee declining as of May 10 of each subsequent year until
contract expiration.

Substantial Transactions and Operating Agreements

The accompanying unaudited condensed financial statements include substantial
transactions with related parties. These transactions are further described in
Notes 4 and 5.

A summary of the major operating agreements entered into by the Partnership,
directly or indirectly, is set forth below:

(1)  The Partnership sells the electricity produced by the Turbines to Southern
     California Edison Company ("SCE"), pursuant to a power purchase and sales
     agreement (the "Power Agreement"). The Power Agreement was originally
     entered into between SCE and PanAero in April 1982 and covers an aggregate
     of 29.9 megawatts of generating capacity. PanAero assigned the Power
     Agreement to Mesa in July 1984. Mesa subsequently assigned the portion of
     the Power Agreement that covers the aggregate rated capacity of the
     Turbines (19.5 megawatts), to the Partnership until December 31, 2004. The
     remaining 10.4 megawatts of generating capacity available under the Power
     Agreement was assigned by Mesa to Zond-PanAero Windsystem Partners II, a
     California Limited Partnership ("ZPII"), whose general partner is an
     affiliate of the General Partner. SCE purchases electricity produced by the
     Turbines at a price equal to the greater of 89% of SCE's "Cost of Energy"
     (as defined in the Power Agreement) or a fixed minimum price of $.102 per
     kilowatt hour ("kWh"), with the limitation that when 89% of SCE's Cost of
     Energy exceeds $.20 kWh, the price per kWh paid by SCE will be limited to
     $.20 per kWh plus 70% of the difference between 89% of SCE's Cost of Energy
     and $.20 per kWh. During the six month period ended June 30, 2003, the
     Partnership earned $.102 per kWh of electricity delivered to SCE. Absent an
     extension of the Power Agreement, the Partnership will not have the ability
     to sell power subsequent to December 31, 2004. See Note 3 for additional
     information.

(2)  Since July 1988, the Partnership has contracted with EWS (or its
     predecessor) for the operation and maintenance of the Turbines and the

                                       12
<PAGE>

     performance of certain ancillary management services, such as collection of
     revenues from SCE and the administration and payment of all Partnership
     expenses. Under the provisions of the Management Agreement, the Partnership
     pays a management fee of 2% of "Gross Operating Proceeds", which are
     defined as all gross receipts from the sale of electricity generated by the
     Turbines and all amounts paid in lieu of receipts from the sale of
     electricity, including, without limitation, any proceeds of systems
     performance or wind resource insurance, casualty loss and business
     interruption insurance paid in reimbursement of lost revenues and warranty
     payments in reimbursement of lost revenues. Under the Management Agreement,
     EWS is entitled to be reimbursed for 115% of the maintenance costs,
     including labor and material costs that it incurs in the performance of
     services including services performed by third parties. See Note 5 for
     additional information.

(3)  The Operating Site is situated on two adjoining parcels of land, consisting
     of approximately 440 acres, located in the San Gorgonio Pass area of the
     San Bernardino Mountains approximately 16 miles northwest of Palm Springs,
     California. The Partnership uses the Infrastructural Improvements and a
     portion of the Operating Site pursuant to a 20-year easement granted by
     Mesa under the terms of a Wind Park Easement Agreement dated as of
     September 7, 1984, as amended (the "Wind Park Easement Agreement"). Mesa
     has rights to develop wind energy resources at the Operating Site, which
     includes the Infrastructural Improvements, under a right-of-way grant (the
     "Right-of-Way Grant") from the United States Bureau of Land Management
     ("BLM"). The primary term of the Right-of-Way Grant expired on January 26,
     2003. On December 19, 2002, the Right-of-Way Grant was extended for a
     ten-year period commencing on January 27, 2003; however, the Wind Park
     Easement Agreement still expires on December 31, 2004. See Note 3 for
     additional information.

     EWSI, PanAero, and their affiliates have developed and sold additional wind
     turbines on the Operating Site to ZPII and Mesa has granted a similar
     easement to ZPII.

     Under the Wind Park Easement Agreement, Mesa charges the Partnership rental
     fees in an amount equal to the greater of 5% of Gross Operating Proceeds or
     the Partnership's pro rata share (with the other producers of electric
     energy from wind power on the Operating Site) of the payments due the BLM
     under the Right-of-Way Grant. Effective January 1, 1996, the BLM changed
     the annual rental payment due under the Right-of-Way Grant to a flat rent
     of $79,000. ZPI and ZPII are each charged a pro rata share of the $79,000
     in accordance with the Wind Park Easement Agreement based on their ratios
     of aggregated rated capacity of the turbines installed on the Operating
     Site as described above. Rental payments may be adjusted by the BLM
     annually to reflect any change in the fair rental value of the Operating
     Site, which could result in revised easement payments by the Partnership to
     Mesa.

Cash Distributions

The Partnership distributes cash in accordance with the terms of the Partnership
Agreement. Due to less-than-projected operating results, the Partnership has not
distributed any cash to the General Partner, Limited Partners, Dean Witter
Reynolds Inc. as a special limited partner, the Former General Partners or the
substituted limited partners during any fiscal year other than 1985, in which
the Partnership distributed an aggregate of approximately $158,000 to the
Limited Partners and $2,000 to the Former General Partners. Under the Purchase
Notes, the Partnership cannot make cash distributions to its partners unless
certain cash reserve balances are maintained, no events of default exist, and
certain ratio tests are met. The Partnership did not meet these criteria since

                                       13
<PAGE>

1985 and did not make cash distributions to its partners in the six month period
ended June 30, 2002 or June 30, 2003.

NOTE 3 - GOING CONCERN

The following matters raise substantial doubt about the Partnership's ability to
continue as a going concern:

     1.   As discussed in Note 4 below, the Partnership has not had sufficient
          cash flows from operations to make scheduled payments of principal and
          interest on the outstanding Purchase Notes. Accordingly, the
          Partnership is in default of the Purchase Notes. Upon notice of
          default, MCC has a right to foreclose against its security interests
          in the assets of the Partnership. As of the date of filing of this
          report, MCC has not notified the Partnership of its intent to
          foreclose on its security interest. Any such foreclosure by MCC on its
          security interests in the assets of the Partnership would have a
          material adverse effect on the Partnership.

     2.   The Partnership's assignment of rights under the Power Agreement
          expires on December 31, 2004 and the Power Agreement expires in June
          2005. Additionally, the Wind Park Easement Agreement expires on
          December 31, 2004. The Partnership will have no ability to sell the
          power it generates after December 31, 2004 without an extension of the
          assignment of rights under the Power Agreement and an extension of the
          Wind Park Easement Agreement. Additionally, if the Partnership were to
          obtain an extension of its assignment of rights under the Power
          Agreement, it could only be effective until June 2005, unless the
          Power Agreement itself were extended beyond that date or some other
          arrangements were made.

NOTE 4 - PURCHASE NOTES

Under an agreement reached in April 1989, MCC reduced the interest rate on the
Purchase Notes from 13% to 11% per annum effective in January 1990. The
Partnership secured its payment obligations under the Purchase Notes by granting
MCC security interests in the Turbines and other intangible collateral including
the rights, title and interests of the Partnership under several of the
Partnership's major operating agreements.

As of June 30, 2003 there was $1.0 million and $5.8 million of principal and
interest in arrears, respectively on the Purchase Notes.

The Partnership's cash flows have been insufficient to pay all scheduled
principal and interest associated with the Purchase Notes. The Purchase Notes
matured on December 31, 2002. The Partnership's failure to make timely payments
on the Purchase Notes gave MCC the right to foreclose against its security
interest in the assets of the Partnership. MCC has not notified the Partnership
of its intent to foreclose on its security interests.

NOTE 5 - AMOUNTS PAYABLE TO RELATED PARTIES, NET

In addition to the Purchase Notes (See Note 4 above) the Partnership had amounts
payable to Mesa (See Note 2) and EWS, respectively as of June 30, 2003. Amounts
payable to Mesa include easement fees and other miscellaneous expenses related

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<PAGE>

to Windsystem operations. Amounts payable to EWS include management fees and
other miscellaneous expenses related to Windsystem operations. Such amounts are
unsecured and non-interest bearing.
The Partnership has the following related party transactions and relationships:

(1)  Mesa assigned easement rights to a portion of the Operating Site and
     granted rights to use the Infrastructural Improvements to the Partnership
     under the Wind Park Easement Agreement (See Note 2 above). The Partnership
     incurred $0.04 million in easement fees during the second quarter of 2003,
     pursuant to the Wind Park Easement Agreement and $.07 million during the
     six month period ended June 30, 2003.

(2)  The Partnership contracted with EWSI to operate and maintain the Turbines
     and to perform certain management and administrative services under the
     Management Agreement (See Note 2 above). The Partnership incurred expenses
     of $0.3 million during the second quarter of 2003 pursuant to the
     Management Agreement and $0.5 million during the six month period ended
     June 30, 2003

In 1988, Mesa assigned $581,000 of receivables from the Partnership to each of
its partners, EWSI and an affiliate of PanAero. EWSI subsequently forgave its
$581,000 of receivables from the Partnership. This forgiveness was treated as a
capital contribution in the accompanying financial statements.

NOTE 6 - LITIGATION

SCE Dispute

Market conditions in the California energy sector during 2000 and 2001 created a
significant cash flow problem for SCE. At the end of January 2001, SCE advised
the Partnership that SCE would not make payments for power deliveries in
November and December 2000. The Partnership, along with other renewable source
generators, engaged in discussions with SCE seeking payment from SCE for past
due amounts under applicable power agreements entered into with SCE.

The Partnership continued to operate the Windsystem and deliver power to SCE
believing that eventually a solution would be negotiated. SCE continued to
default on its contractual obligations by missing payments due for January,
February, and March 2001 power deliveries.

On March 27, 2001, the California Public Utilities Commission (the "CPUC")
issued an order (the "CPUC Order") obligating SCE to begin payments for power
delivered on a prospective basis. Following the issuance of the CPUC Order, SCE
initiated discussions with renewable source generators, including the
Partnership, to agree on a payment plan for power delivered on a prospective
basis. The Partnership and SCE agreed that SCE would pay for delivered power
twice a month. This payment plan was effective from March 27, 2001, the date of
the CPUC Order through December 31, 2004. The CPUC Order did not address the
issue of payments due for the period from November 1, 2000 to March 26, 2001.

By the end of April 2001, the Partnership and SCE were not able to resolve SCE's
non-payment for power delivered for the period between November 1, 2000 and
March 26, 2001. The Partnership, along with other renewable source generators
(collectively, the "Power Generators"), assisted by outside counsel, explored
various legal alternatives to enforce the contractual rights of the Power
Generators. On May 2, 2001, certain Power Generators, including the Partnership,
filed suit against SCE in Los Angeles Superior Court (the "SCE Litigation"). The
suit sought to recover compensation from SCE for power delivered, or at the
option of the plaintiffs, relief from the obligation to deliver power under the
existing contracts with SCE coupled with the right to sell power in the open
market across the SCE transmission grid.

In June 2001, SCE offered to settle all amounts past due, including a payment
for the past due amounts, with the Power Generators. The offer provided for the
payment of all amounts past due with interest accruing at 7% through the date of
payment. On August 22, 2001, Mesa, for the benefit of the Partnership, entered
into a settlement agreement with SCE that, among other things, set forth the
terms for payment of past due amounts to Mesa, and ultimately the Partnership
(the "SCE Payment Agreement").

The SCE Payment Agreement provides that past due amounts be paid in three
installments, 10% of the amount outstanding plus interest on all the past due
amounts to the date of the installment payment to be paid shortly after
execution of the SCE Payment Agreement, another 10% of the amount outstanding to
be paid when the SCE Payment Agreement becomes effective (after CPUC approval
and certain other conditions are satisfied), and the final 80% to be paid when
the California State Legislature approves a plan that will restore SCE's credit.
SCE paid the first installment due under the SCE Payment Agreement on August 31,
2001. All remaining amounts outstanding from SCE under the SCE Payment Agreement
were collected from SCE by the end of March 2002. See Note 7 below.

FERC Investigation

In May 2003, the Federal Energy Regulatory Commission (the "FERC"), pursuant to
FERC Docket No. EL03-47-000, began investigating whether the Windsystem and
certain other power projects owned by Enron or its affiliates failed to meet the
ownership criteria for qualifying facility ("QF") status under the Public
Utility Regulatory Policy Act of 1978 ("PURPA"). Under PURPA, and the applicable
FERC regulations, a power project is not a QF if more than 50% of the equity
interest in the project is owned by an electric utility or electric utility
holding company.  See Note 7 below.

NOTE 7 - SUBSEQUENT EVENTS

SCE Dispute

The Partnership, along with the other Power Generators party to the SCE
Litigation, dismissed the SCE Litigation in August 2003.

FERC Investigation

On July 11, 2003, the investigation of the QF status of the Windsystem by the
FERC was set for hearing by the FERC. On July 22, 2003, the FERC investigation
relating to the Windsystem was assigned to a FERC settlement judge.
Representatives of the Partnership and the FERC have held several settlement
meetings, and settlement discussions relating to the investigation are ongoing.

                                       15
<PAGE>
Purchase Notes

The Partnership is in default of the Purchase Notes. As of May 10, 2004, the
total amount in default is $4.3 million, which is totally comprised of interest
in arrears. The principal was paid off in January of 2004. See Notes 3 and 4 for
additional information.

                                       16
<PAGE>

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

Going Concern

The following matters raise substantial doubt about the Partnership's ability to
continue as a going concern:

     1.   The Partnership has not had sufficient cash flows from operations to
          make scheduled payments of principal and interest on the outstanding
          Purchase Notes. Accordingly, the Partnership is in default of the
          Purchase Notes. Upon notice of default, MCC has a right to foreclose
          against its security interests in the assets of the Partnership. As of
          the date of filing of this report, MCC has not notified the
          Partnership of its intent to foreclose on its security interest. Any
          such foreclosure by MCC on its security interests in the assets of the
          Partnership would have a material adverse effect on the Partnership.

     2.   The Partnership's assignment of rights under the Power Agreement
          expires on December 31, 2004 and the Power Agreement expires in June
          2005. Additionally, the Wind Park Easement Agreement expires on
          December 31, 2004. The Partnership will have no ability to sell the
          power it generates after December 31, 2004 without an extension of the
          assignment of rights under the Power Agreement and an extension of the
          Wind Park Easement Agreement. Additionally, if the Partnership were to
          obtain an extension of its assignment of rights under the Power
          Agreement, it could only be effective until June 2005, unless the
          Power Agreement itself were extended beyond that date or some other
          arrangements were made.

Liquidity and Capital Resources

The Partnership experienced a lack of liquidity throughout the second quarter of
2003, primarily due to an ongoing shortfall in revenues from operations in
comparison to the costs and expenses of operations. As a result, principal
payments on the Purchase Notes in the aggregate amount of $1.0 million were in
arrears, and interest payments in the amount of $5.8 million, were in arrears at
June 30, 2003. The Partnership's failure to make timely payments on the Purchase
Notes gave MCC the right to foreclose against the collateral of its loans as set
forth in the Purchase Notes. As of June 30, 2003, MCC had not exercised its
right to foreclosure under the Purchase Notes.

The Partnership's primary source of revenues and liquidity to fund operations of
the Windsystem, repay debt, administer the Partnership, and make distributions
to its partners is the production and sale of electricity from the Windsystem.
The Partnership's sole customer is SCE. The price paid by SCE for the
electricity is contractually defined under the Power Agreement.

As of June 30, 2003, the Partnership had no current or planned commitments for
capital expenditures.

Results of Operations for the Six Months Ended June 30, 2003 Compared to the Six
Months Ended June 30, 2002.

For the first six months of 2003, revenues from power sales were $2.4 million,
and the Windsystem produced 23.3 million kWh of electricity for sale to SCE.

                                       17
<PAGE>

This was a decrease of $0.4 million or 13% in revenue and a decrease of 3.6
million kWh of electricity produced or 13% as compared to the same period in
2002.

Costs and expenses in the first six months of 2003 were $2.1 million. This was a
decrease of $0.1 million or 4%, as compared to the first six months of 2002.
This decrease can mainly be attributed to the decrease in interest expense of
$0.2 million, as compared to the 2002 period. Interest expense decreased due to
lower average principal balances on the Purchase Notes outstanding during 2003.
This decrease was partially offset by a $0.1 million increase in operating
maintenance during the 2003 period as compared to the 2002 period.

Overall, the Partnership reported net income of $0.3 million for the first six
months of 2003, which is a decrease of $0.3 million or 54% as compared to 2002.
During the first six months of 2003, total partners' deficit decreased by $0.3
million or 29% to ($0.7) million. Net income per Unit was $239 for the first six
months of 2003 compared with a net income per Unit of $514 for the first six
months of 2002.

Cash flows from operations decreased $0.4 million in the first six months of
2003 as compared to 2002. This decrease was primarily due to a net impact of
unfavorable changes in working capital during 2003 and reduced earnings in 2003.
These decreases were offset by a decrease in principal payments on the Purchase
Notes. Cash flows used in financing activities decreased by $1.0 million due to
no payments being made on the Purchase Notes during the six months ended June
30, 2003.

Results of Operations for the Three Months Ended June 30, 2003 Compared to the
Three Months Ended June 30, 2002.

For the three months ending June 30, 2003, revenues from power sales were $1.7
million, and the Windsystem produced 16.7 million kWh of electricity for sale to
SCE for the second quarter of 2003. This was a decrease of $0.2 million or 12%
in revenue and a decrease of 2.3 million kWh of electricity produced or 12% as
compared to the same period in 2002.

Costs and expenses for the second quarter of 2003 were $1.1 million. This was an
increase of $0.1 million or 14%, as compared to the second quarter of 2002.

Overall, the Partnership reported net income of $0.6 million for the second
quarter of 2003, which is a decrease of $0.4 million or 36% as compared to the
second quarter of 2002. Net income per Unit was $536 for the second quarter of
2003 compared with a net income per Unit of $841 for the second quarter of 2002.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The financial performance of the Partnership is affected by, among other things,
general economic, financial, competitive, legislative, legal, regulatory and
other factors that are beyond management's control. Changes in these factors
could make it more expensive to operate the Windsystem, or require additional
capital expenditures, or reduce certain benefits currently available to the
Partnership. There are a variety of other risks that affect the financial
performance of the Partnership, some of which are beyond management's control,
including but not limited to:

                                       18
<PAGE>

     o    The Partnership could perform below expected levels of output or
          efficiency, which would reduce revenue;
     o    Changes or modifications to the rules and regulations of the Western
          energy markets, and particularly the regulatory environment in
          California, may negatively impact SCE's financial viability and the
          Partnership's status as a QF;
     o    Operating and royalty costs could increase;
     o    Energy prices paid by SCE could decrease or terminate;
     o    Delivery of electrical energy to SCE could be curtailed, disrupted or
          otherwise terminated;
     o    Environmental problems or regulation changes could arise which could
          lead to fines or a shutdown of the Windsystem;
     o    Windsystem units and equipment have broken down or failed in the past
          and could break down or fail in the future;
     o    The operators of the Windsystem could suffer labor disputes;
     o    The government could change permit or governmental approval
          requirements restricting operations;
     o    Third parties could fail to perform their contractual obligations to
          the Partnership; and
     o    Catastrophic events, such as fires, earthquakes, explosions, floods,
          severe declines in wind volume, severe storms or other occurrences
          including terrorism or war, could affect the Windsystem or SCE.

Item 4. CONTROLS AND PROCEDURES

The term "disclosure controls and procedures" is defined in Rules 13a-15(e) and
15d-15(e) of the Exchange Act. This term means controls and other procedures of
a company that are designed to ensure that information required to be disclosed
by the company in the reports that it files or submits under the Exchange Act is
recorded, processed, summarized and reported, within the time periods specified
in the SEC's rules and forms. Disclosure controls and procedures include,
without limitation, controls and procedures designed to ensure that information
required to be disclosed by a company in the reports that it files or submits
under the Exchange Act is accumulated and communicated to the company's
management, including its principal executive and principal financial officers,
or persons performing similar functions, as appropriate to allow timely
decisions regarding required disclosure.

During 2002, following the resignation of Arthur Andersen LLP effective February
5, 2002, the Partnership did not have an independent accountant and did not file
periodic reports required by the Exchange Act. The Partnership has been actively
seeking to retain an independent accountant. In addition, during the second
quarter of 2003, the Partnership continued its efforts to put into place
procedures for gathering, analyzing, communicating to management and disclosing
the information the Partnership is required to disclose in the periodic report
required by the Exchange Act. However, the Partnership was unable to file the
periodic report for the three months ended June 30, 2003 required under the
Exchange Act, within the time period specified in the SEC's rules and forms.

The Partnership's management, with the participation of the General Partner's
Chief Executive Officer and Chief Financial Officer, has evaluated the
effectiveness of the Partnership's disclosure controls and procedures as of June
30, 2003. Based on these evaluations, the General Partner's Chief Executive
Officer and Chief Financial Officer concluded that the Partnership's disclosure
controls and procedures were not effective as of June 30, 2003 because (i)

                                       19
<PAGE>

disclosure controls and procedures were not fully implemented by June 30, 2003
and (ii) the Partnership did not timely file its required periodic report for
the quarterly period ended June 30, 2003. During the three months ended June 30,
2003, the Partnership made no change in its internal controls over financial
reporting that materially affected, or is reasonably likely to materially
affect, its internal controls over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal proceedings.

Litigation is discussed in Note 6 of the Condensed Financial Statements.

Item 2. Changes in securities and use of proceeds.

Not applicable to the Partnership.

Item 3. Defaults upon senior securities.

The Partnership is in default of the Purchase Notes. As of May 10, 2004, the
total amount in default is $4.3 million, which is totally comprised of interest
in arrears. The principal was paid off in January of 2004. See Notes 3, 4 and 7
to the Financial Statements for additional information.

Item 4. Submission of matters to a vote of security holders.

Not applicable to the Partnership.

Item 5. Other information.

This report contains statements that are forward-looking within the meaning of
Section 27(a) of the Securities Act of 1933 and Section 21(e) of the Exchange
Act. Investors are cautioned that any such forward-looking statements are not
guarantees of future performance and that actual results could differ materially
as a result of known and unknown risks and uncertainties, including general
economic conditions, future trends, and other risks, uncertainties and factors
disclosed in this operating report.

Item 6. Exhibits and reports of Form 8-K

Exhibits

     31.1 Rule 13a-14(a) Certification of Eric D. Gadd

     31.2 Rule 13a-14(a) Certification of Mary H. Cilia

     32.1 Section 1350 Certification of Eric D. Gadd

     32.2 Section 1350 Certification of Mary H. Cilia


                                       20
<PAGE>


SIGNATURES

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


                                    Zond-PanAero Windsystem Partners I
Date: May 10, 2004
      ------------
                                    By:  Zond Windsystems Management LLC,
                                    General Partner


                                    By:       /s/ Eric D. Gadd
                                        --------------------------------
                                    Eric D. Gadd
                                    Chief Executive Officer



                                    By:    /s/ Mary H. Cilia
                                        --------------------------------
                                    Mary H. Cilia
                                    Chief Financial Officer of Zond Windsystems
                                    Management LLC,
                                    the General Partner of Zond-PanAero
                                    Windsystem Partners I


                                       21
<PAGE>

                                  Exhibit Index

   Number                   Description


   31.1*          Rule 13a-14(a) Certification of Eric D. Gadd

   31.2*          Rule 13a-14(a) Certification of Mary H. Cilia

   32.1*          Section 1350 Certification of Eric D. Gadd

   32.2*          Section 1350 Certification of Mary H. Cilia

* Filed with this report






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