FORM 10-Q

           SECURITIES AND EXCHANGE COMMISSION
                Washington, D.C. 20549

   [ X ] Quarterly Report Under Section 13 or 15(d) of the
             Securities Exchange Act of 1934

     For the quarterly period ended: September 30, 1998

                         OR

   [   ] Transition Report Under Section 13 or 15(d) of the
         Securities Exchange Act of 1934

    For the transition period from                   to           
       

        Commission File Number:  0-13510

         ZOND-PANAERO WINDSYSTEM PARTNERS I
          A CALIFORNIA LIMITED PARTNERSHIP
   (Exact name of Registrant as specified in its charter)

          CALIFORNIA                           77-003535
(State or other jurisdiction of            (I.R.S. Employer
incorporation or organization)             Identification No.)

         13000 Jameson St., Tehachapi, California 93561
       (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
                    (ZIP CODE)

                    (805) 822-6835
   (Registrant's telephone number, including area code)

                                                                 
  (Former name, former address and former fiscal year,
  if changed since last report)

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

                   YES  X     NO    
<PAGE>
<PAGE>
PART I -- FINANCIAL INFORMATION


Item 1.

Balance Sheets at September 30, 1998 and December 31, 1997.

Statement of Operations for the
  Three Months Ended September 30, 1998, and
  September 30, 1997.

Statement of Operations for the
  Nine Months Ended September 30, 1998, and
  September 30, 1997.

Statement of Changes in Partners' Capital
  Accounts at September 30, 1998, and December 31, 1997.

Statement of Cash Flows for the Nine Months 
  Ended September 30, 1998, and September 30, 1997.

Notes to Interim Financial Statements.
<PAGE>
<PAGE>
<TABLE>
ZOND-PANAERO WINDSYSTEM PARTNERS I
(A California Limited Partnership)
BALANCE SHEET
(Amounts in thousands)
<CAPTION>
                                        December 31,   September 30,
                                          1997            1998
                                        (Audited)     (Unaudited)
<S>                                      <C>          <C>
ASSETS
Current assets:
  Cash                                   $      183   $    1,699
  Accounts receivable                           368          683 
  Other current assets                           36          104
                                         -----------  -----------
   Total current assets                         587        2,486
                                         -----------  -----------
Noncurrent assets:
  Building                                       98           98
  Wind turbines                              49,561       49,561
  Less - Accumulated depreciation           (32,240)     (34,113)
                                         -----------  -----------
   Total noncurrent assets                   17,419       15,546
                                         -----------  -----------
Total assets                             $   18,006   $   18,032
                                         ===========  ===========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
  Current portion of
    notes payable to related party       $    2,114   $    2,251
  Accounts payable                               29           21
  Interest payable to related party           4,103        4,781
  Amounts payable to related parties            160          298 
                                         -----------  -----------
   Total current liabilities                  6,406        7,351
                                         -----------  -----------
  Notes payable to related party, less
    current portion                          11,700       10,539
                                         -----------  -----------
Partners' capital:
  Limited partners                             (683)        (443)
  General partner                                 1            2
  Substituted limited partner                     1            2
  Special limited partner                        --           --  
  Contributed capital                           581          581
                                         -----------  -----------
   Total partners' capital                     (100)         142 
                                         -----------  -----------
Total liabilities and partners' capital  $   18,006   $   18,032
                                         ===========  ===========
<FN>
See accompanying notes to interim financial statements
</TABLE>
<PAGE>
<TABLE>
ZOND-PANAERO WINDSYSTEM PARTNERS I
(A California Limited Partnership)

STATEMENT OF OPERATIONS
(Amounts in thousands except limited partnership units)
<CAPTION>
                                      For the Three Months Ended
                                               September 30, 
                                             1997         1998
<S>                                      <C>          <C>
Revenues:
  Sales of electricity                   $    1,043   $    1,102
  Other income                                   11            7
                                         -----------  -----------
                                              1,054        1,109
                                         -----------  -----------
Costs and Expenses:
  Depreciation                                  625          625
  Interest expense                              406          352
  Property taxes                                  4           32
  Management fees and land lease 
     to related parties                         114          146
  Maintenance and other operating 
     costs to related parties                   242          318
  Other operating costs                           4            4
  Insurance expense                              32            5
                                         -----------  -----------
                                              1,427        1,482
                                         -----------  -----------
Net income                               $     (373)  $     (373)
                                         ===========  ===========

Net income per limited
   partnership unit                      $   (0.313)  $   (0.313)
                                         ===========  ===========
Number of limited partnership
   units outstanding                          1,190        1,190
                                         ===========  ===========

<FN>
See accompanying notes to interim financial statements
</TABLE>










<PAGE>
<TABLE>
ZOND-PANAERO WINDSYSTEM PARTNERS I
(A California Limited Partnership)

STATEMENT OF OPERATIONS
(Amounts in thousands except limited partnership units)
<CAPTION>
                                        For the Nine Months Ended
                                               September 30, 
                                             1997         1998
<S>                                      <C>          <C>
Revenues:
  Sales of electricity                   $    3,782   $    4,321
  Other income                                   26           21
                                         -----------  -----------
                                              3,808        4,342
                                         -----------  -----------
Costs and Expenses:
  Depreciation                                1,873        1,873
  Interest expense                            1,265        1,108
  Property taxes                                 16           41
  Management fees and land lease 
     to related parties                         267          280
  Maintenance and other operating 
     costs to related parties                   695          724
  Other operating costs                          10           12
  Insurance expense                              97           62
                                         -----------  -----------
                                              4,223        4,100
                                         -----------  -----------
Net (loss) income                        $     (415)  $      242 
                                         ===========  ===========

Net (loss) income per limited
   partnership unit                      $   (0.349)  $    0.203 
                                         ===========  ===========
Number of limited partnership
   units outstanding                          1,190        1,190
                                         ===========  ===========

<FN>
See accompanying notes to interim financial statements
</TABLE>











<PAGE>


<TABLE>
ZOND-PANAERO WINDSYSTEM PARTNERS I
(A California Limited Partnership)

STATEMENT OF CHANGES IN PARTNERS' CAPITAL

(Amounts in thousands)
<CAPTION>
<CAPTION>                                         
                                                          Substit.           
                                       General Limited    Limited   Contrib.
                              Total    Partner Partners   Partner   Capital
<S>                           <C>      <C>     <C>        <C>       <C>
Profit and loss allocation 
 percentage                    100%       .5%       99%      .5%
Capital contributions, net 
 of private placement costs 
 and cash distributions       $27,000  $ 273   $26,146    $    -    $ 581
Conversion to 
Substituted Limited 
Partner                            -     (83)        -       83        -

Loss for the period from 
 June 29, 1984(inception)
 through December 31, 1995    (25,496)  (181)  (25,241)     (74)       -

Balance at December 31, 1995    1,504      9       905        9       581

Net loss                         (543)    (3)     (537)      (3)       -

Balance at December 31, 1996      961      6       368        6       581

Net loss                       (1,061)    (5)    (1,051)     (5)       -

Balance at December 31, 1997     (100)     1      (683)       1       581

Net income                        242      1       240        1        -

Balance at September 30, 1998  $  142  $   2   $  (443)   $   2     $ 581   

<FN>        
                 See accompanying notes to financial statements.
</FN>
<PAGE>
<PAGE>

</TABLE>
<TABLE>
ZOND-PANAERO WINDSYSTEM PARTNERS I
(A California Limited Partnership)

STATEMENT OF CASH FLOWS
INCREASE (DECREASE) IN CASH

(Amounts in thousands)
<CAPTION>
                                       For the Nine Months Ended
                                               September 30,       
                                             1997         1998
<S>                                          <C>          <C>
Cash flows from operating activities:
  Net (loss) income                      $     (415)   $    242 

  Adjustments to reconcile net loss to cash
   provided by (used in) operating activities -
     Depreciation                             1,873       1,873
  Changes in assets and liabilities -
     Accounts receivable                        153        (315)
     Prepaid insurance and other                 89         (68)
     Accounts payable and accrued expenses      (69)         (8)
     Amounts payable to related party           (84)        138
     Accrued interest payable 
       to related party                         660         678
                                         -----------   ---------
        Net cash provided (used)              2,207       2,540

Cash flows from financing activities:
  Principal payments on notes payable 
       to related party                        (903)     (1,024)
                                         -----------   ---------
   Net increase in cash and cash equivalents  1,304       1,516

Cash & cash equivalents beginning of period     142         183
                                         -----------   ---------
Cash and cash equivalents end of period  $    1,446   $   1,699
                                         ===========   =========
Supplemental disclosure of cash flow information:
  Cash paid during the year for interest $      606    $    430
                                         ===========   =========
<FN>

See accompanying notes to interim financial statements
</TABLE>
<PAGE>
<PAGE>
ZOND-PANAERO WINDSYSTEM PARTNERS I
(A California Limited Partnership)

NOTES TO INTERIM FINANCIAL STATEMENTS
(Unaudited)

1.   The accompanying unaudited financial statements reflect
     all adjustments which are, in the opinion of the 
     Partnership's general partner, necessary to a fair statement
     of the results for the periods presented.  The results of 
     operations for interim periods are not necessarily           
     indicative of results for the full year.

2.   The Partnership's limited partnership agreement allows the
     Partnership's general partner to determine the method for
     maintaining the Partnership's accounting records.  Until
     1987, the records were maintained on a cash basis.  However,
     Section 481 of the Tax Reform Act of 1986 (the "Act")
     prescribed a change, effective January 1, 1987, in the
     accounting method for certain tax shelters having corporate
     general partners, including the Partnership, to require
     tax-basis accrual accounting.  In accordance with Section
     481 of the Act, differences between the two bases were
     recognized for federal income tax purposes ratably by the  
     Partnership over a three-year period.  Below are
     reconciliations between the Partnership's tax-basis accrual
     financial statements and its GAAP basis accrual financial
     statements included herein for both results of operations,
     partners' capital balances and total assets.

    Taxable income year to date                 $    2,106,000

    Less: Depreciation less for tax than GAAP       (1,870,000)
       
    Other, net                                           6,000
                                                ---------------
       GAAP basis income                        $      242,000
                                                ===============

    Tax basis partners' capital
    at September 30, 1998                       $   (9,147,000)

    Plus:
    GAAP basis loss less than taxable loss net,
        June 24, 1984 (inception)
        through December 31, 1997                   11,153,000

    GAAP basis loss versus taxable income
     January 1, 1998 through September 30, 1998     (1,864,000)
                                                ---------------
    GAAP basis partners' capital               $       142,000 
                                                ===============

<PAGE>

3. Reconciliation of GAAP Basis and Tax Basis Financial
Statements:

    Tax basis total assets                      $     8,720,000
    
    Cumulative tax depreciation in excess of
    GAAP depreciation                                 9,312,000
                                                ---------------
    GAAP basis total assets
      at September 30, 1998                     $    18,032,000
                                                ===============

4.   During all periods presented in these financial statements,
     1,190 units of limited partnership interests were
     outstanding.

5.   As a "Special Limited Partner" of the Partnership, Dean
     Witter Reynolds, Inc. is entitled to receive 5% of all
     Partnership distributions made after the date on which the 
     cumulative aggregate distributions to the Partnership's      
     limited partners exceed $10,000,000.

6.   Following its removal as a general partner of the
     Partnership effective June 24, 1988, PanAero Management
     Corporation became a substituted limited partner of the
     Partnership with the same capital account and interest in
     profits and losses as it had as a general partner.

7.   No provision has been made for income taxes in the
     accompanying financial statements.  The Partnership, as an
     entity, is not assessed taxes based upon income generated by
     its operations. Income taxes, if any, are the
     liability of the individual partners.
<PAGE>
<PAGE>
Item 2.   Management's Discussion and Analysis of Financial
          Condition and Results of Operations.

    Zond-PanAero Windsystem Partners I, a California Limited
Partnership (the "Partnership") was formed in 1984 to purchase,
own, and operate a wind-driven electric power generating facility
located near Palm Springs, California (the "Windsystem"). The
Partnership's payment for the purchase, construction, and
installation of the Windsystem was comprised of $22,430,000 in
cash and $26,500,000 in the form of eighteen-year notes payable
(the "Purchase Notes").  The electricity generated by the
Windsystem is sold to Southern California Edison Company.  The
general partner of the Partnership is Zond Windsystems Management
Corporation, a wholly-owned subsidiary of Zond Systems, Inc.
("Zond").

 On January 3, 1997 Zond's parent, Zond Corporation, became a
wholly-owned subsidiary of Enron Renewable Energy Corporation,
which is majority owned by Enron Corp. In May 1997, the name of
Zond Corporation was changed to Enron Wind Corp.  Enron Corp.,
headquartered in Houston, Texas, is one of the world's leading
integrated energy company. Enron Corp., which owns approximately
$23 billion in energy related assets, delivers physical
commodities and risk management and financial services to provide
energy solutions to customers around the world. 

Liquidity and Capital Resources

    The Partnership continues to experience a lack of liquidity
primarily due to a continued short-fall in revenues from
operations in comparison to the costs and expenses of operations. 
Accordingly, interest payments on the Purchase Notes were in
arrears at September 30, 1998 in the aggregate amount of
$4,380,000.  The Partnership expects that it will continue to
experience poor liquidity and to defer certain payments on the
Purchase Notes.  See "Results of Operations."

Results of Operations

Three Months Ended September 30, 1998, Compared to Three
Months Ended September 30, 1997.   

    Revenues from power sales in the three months ended September
30, 1998 were 5.7% higher than for the corresponding 1997 period. 
As reported by Southern California Edison Company, the Windsystem
produced 10,805 megawatt hours in the three months ended
September 30, 1998, in comparison to production of 10,206
megawatt hours  in the corresponding 1997 period, representing an
increase in production of approximately 5.9%.


<PAGE>
    The Partnership received approximately $7,000 in "other
income" from interest earned on cash balances in the three months
ended September 30, 1998, and approximately $11,000 in the
corresponding 1997 period. 

    Total expenses for the three months ended September 30, 1998
were approximately 3.8% lower than the corresponding 1997 period. 
Interest expense decreased due to lower average principal
balances on the Purchase Notes outstanding.  Property Taxes
increased by $28,000 due to a higher valuation of wind turbines
by the property tax assessor.  Management fees and land lease
expenses increased 28%.  Management fees are 2% of sales receipts
and land lease is 5% of sales receipts.  Sales receipts lag
behind the accrued sales revenue by about two months. 
Maintenance and other operating costs increased 30.9%,
substantially due to increased yaw parts replacement and crane
rental expense.  Insurance expense decreased 84%, which is
attributable to historical low loss experience, asset
devaluation, and the packaging of all turbine projects Zond
operates under one policy with Enron Corp.

    Overall, the Partnership reported loss of $373,000 for the
three months ended September 30, 1998, in comparison to loss of
$373,000 for the corresponding 1997 period.

    The Partnership's financial condition worsened during the
three months ended September 30, 1998.  The change in overall
financial condition is primarily due to the loss during the
quarter.  During the three months ended September 30, 1998, total
partners' capital decreased $373,000 from $515,000 at June  30,
1998, to $142,000.  Limited Partners' capital decreased $369,000
from ($74,000) at June 30, 1998, to ($443,000).  This represents
a total decrease of approximately $313 per unit of partnership. 
Based on historical average wind energy and current cost levels,
the Partnership expects to continue to suffer net annual
operating losses and expects that its overall financial condition
will worsen annually for the foreseeable future.

Nine Months Ended September 30, 1998, Compared to Nine
Months Ended September 30, 1997.   

    Revenues from power sales in the nine months ended September
30, 1998 were 14.2% higher than for the corresponding 1997
period.  As reported by Southern California Edison Company, the
Windsystem produced 42,265 megawatt hours in the nine months
ended September 30, 1998, in comparison to production of 37,062
megawatt hours in the corresponding 1997 period, representing an
increase in production of approximately 14%.

    The Partnership received approximately $21,000 in "other
income" from interest earned on cash balances in the nine months
ended September 30, 1998, and approximately $26,000 in the
corresponding 1997 period. 



<PAGE>
    Total expenses for the nine months ended September 30, 1998
were approximately 2.9% lower than the corresponding 1997 period. 
Interest expense decreased due to lower average principal
balances on the Purchase Notes outstanding.  Property taxes
increased by $25,000 due to a higher valuation of wind turbines
by the tax assessor.  Management fees and land lease expenses,
which are based on gross proceeds from power sales, increased
4.9%.  Management fees are 2% of sales receipts and land lease is
5% of sales receipts.  Sales receipts lag behind the accrued
sales revenue by about two months.  Maintenance and other
operating costs increased 4.4%, substantially due to increased
yaw parts replacement and crane rental expense.  Insurance
expense decreased 36%, which is attributable to historical low
loss experience, asset devaluation, and the packaging of all
turbine projects Zond operates under one policy with Enron Corp.

    Overall, the Partnership reported income of $242,000 for the
nine months ended September 30, 1998, in comparison to a loss of
$415,000 for the corresponding 1997 period.

    The Partnership's financial condition improved during the
nine months ended September 30, 1998.  The change in overall
financial condition is primarily due to the income earned during
the nine month period.  During the nine months ended September
30, 1998, total partners' capital increased $242,000 from
($100,000) at December 31, 1997, to $142,000.  Limited Partners'
capital increased $240,000 from ($683,000) at December 31, 1997,
to ($443,000).  This represents a total increase of approximately
$203 per unit of partnership.  Although the Partnership's
financial condition improved during this interim period, based on
historical average wind energy and current cost levels, the
Partnership expects to continue to suffer net annual operating
losses and expects that its overall financial condition will
worsen annually for the foreseeable future.

PART II -- OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K
a. Exhibits:  Exhibit 27. Financial Data Schedule.
b. Reports on Form 8-K:  No reports on Form 8-K
   have been filed by the Registrant.
<PAGE>
<PAGE>
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
           A CALIFORNIA LIMITED PARTNERSHIP

                        By: Zond Windsystems Management
                           Corporation, General Partner


Date: November 13, 1998      By:/S/ KENNETH C. KARAS              
 
        
                           Kenneth C. Karas
                           President and
                           Chief Financial Officer

Date: November 13, 1998      By:/S/ D. MICHAEL WESTBELD           
 
     
                           D. Michael Westbeld
                           Vice President-Controller