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

(Mark One)
[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
     SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 1998

                             or

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


              Commission File Number:  1-12473
                              
                              
                    ENRON CAPITAL TRUST I
   (Exact name of registrant as specified in its charter)
                                 
            Delaware                        76-0518948
(State or other jurisdiction of          (I.R.S. Employer
 incorporation or organization)        Identification No.)
                                 
                                                 
                                 
          Enron Bldg.                            
       1400 Smith Street                         
         Houston, Texas                       77002
(Address of principal executive             (Zip code)
            offices)

                       (713) 853-6161
    (Registrant's telephone number, including area code)
                              
                              
   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.

             [X] Yes                  [ ] No

   As of March 31, 1998, the Registrant had an aggregate of
8,000,000 8.30% Trust Preferred Securities and 247,440 8.30%
Trust Common Securities outstanding.
                              
<PAGE>                              
                    ENRON CAPITAL TRUST I
                              
                          FORM 10-Q
                              
                            INDEX
                              
                                                          Page No.

PART I  -  FINANCIAL INFORMATION

ITEM 1. Financial Statements (see Note below)                 3

ITEM 2. Management's Discussion and Analysis of Financial
        Condition and Results of Operations (see Note below)  3


PART II  -  OTHER INFORMATION

ITEM 1. Legal Proceedings                                      4

ITEM 2. Changes in Securities                                  4

ITEM 3. Defaults upon Senior Securities                        4

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

ITEM 6. Exhibits and Reports on Form 8-K                       4


SIGNATURES                                                     5



<PAGE>

Part I  Financial Information

Item 1. Financial Statements (see Note below)

Item 2. Management's  Discussion and Analysis  of  Financial
        Condition and Results of Operations (see Note below)

     Enron Capital Trust I (the "Trust") is a statutory
business trust created under the Delaware Business Trust
Act, as amended (the "Trust Act"), pursuant to an amended
and restated declaration of trust (the "Declaration") and
the filing of a certificate of trust with the Secretary of
State of the State of Delaware.  The Trust's sole assets are
8,247,440 8.30% Partnership Preferred Securities ($25
liquidation amount per security) representing an 85% limited
partnership interest in Enron Preferred Funding, L.P., a
Delaware limited partnership (the "Partnership").  Ownership
of the assets of the Trust is evidenced by an aggregate of
8,000,000 8.30% Trust Preferred Securities (the "Trust
Preferred Securities"), which are listed and traded on the
New York Stock Exchange under the symbol "ENE PrT", and
247,440 Trust Common Securities (the "Trust Common
Securities," and, together with the Trust Preferred
Securities, the "Trust Securities"), all of which are owned
by Enron Corp., an Oregon corporation ("Enron").  The Trust
makes distributions on the Trust Securities to the extent it
receives distributions from the Partnership on the
Partnership Preferred Securities.  Payments on the
Partnership Preferred Securities represent the sole source
of revenue for the Trust.  Distributions on the Trust
Securities are guaranteed by Enron, but only to the extent
that the Trust has available funds to pay such
distributions.  The Trust was created for the sole purpose
of issuing the Trust Securities, investing the proceeds of
such issuance in the Partnership Preferred Securities and
engaging in only those other activities necessary or
incidental thereto.  The Trust Securities are subject to
redemption at any time on or after March 31, 2002 and
earlier in the event of certain tax law changes or other
events.

     The general partner of the Partnership is Enron, which
owns a 15% general partnership interest in the Partnership.
Since completion of the offering of the Trust Preferred
Securities on November 21, 1996, the assets of the
Partnership have been invested primarily in a $181,926,000
principal amount 7.75% Subordinated Debenture due 2016 of
Enron (the "Enron Debenture") and $29,108,000 principal
amount 7.75% Debentures due 2016 of each of Enron Capital &
Trade Resources Corp. and Enron Pipeline Company (the
"Subsidiary Debentures" and, together with the Enron
Debenture, the "Debentures"), each of which is a wholly
owned subsidiary of Enron. The obligations under the
Subsidiary Debentures are guaranteed by Enron.  The
respective issuers of the Debentures have certain rights to
elect to defer any payments of principal and interest on the
Debentures for up to five years at a time.  In addition to
the Debentures, the Partnership owns an aggregate of
approximately $2,456,000 in short-term, investment grade
debt securities (the "Eligible Debt Securities").  Under
certain circumstances, upon repayment of one or more of the
Debentures, the assets of the Partnership may be reinvested
in one or more debt securities of Enron or its subsidiaries.
Payments of interest and principal on the Enron Debenture
and the Subsidiary Debentures (or the guarantees thereof)
and the Eligible Debt Securities are the sole source of
revenue for the Partnership.  The Partnership pays
distributions to the Trust as holder of the Partnership
Preferred Securities when, as and if Enron, as the general
partner, determines to do so, although Enron has no
obligation to do so.
     
   NOTE:  Because the Trust and the Partnership are special
purpose financing entities with no separate business
operations, the only assets of the Trust are the Partnership
Preferred Securities, and substantially all of the assets of
the Partnership consist of a debt security of Enron and debt
securities of subsidiaries of Enron that are guaranteed by
Enron, the Trust does not believe that financial statements
for the Trust or the Partnership are meaningful.
Accordingly, financial statements and related financial
information have not been included in this Form 10-Q. For
further information concerning Enron and its subsidiaries,
including financial statements and other financial
information, see the Enron Annual Report on Form 10-K for
the year ended December 31, 1997, and Enron Quarterly Report
on Form 10-Q for the quarterly period ended March 31, 1998,
as filed with the Securities and Exchange Commission, copies
of which may be obtained from the Corporate Secretary of
Enron at the address listed on the cover of this Form 10-Q.


<PAGE>

Part II Other Information

Item 1. Legal Proceedings

        None.

Item 2. Changes in Securities

        None.

Item 3. Defaults upon Senior Securities

        None.

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

        None.

Item 6. Exhibits and Reports on Form 8-K

   (a)  Exhibits.

     4.1 Certificate of Trust (incorporated by reference to
         Exhibit 4(a) of the Registration Statement on Form
         S-3 of the Trust (No. 333-14967)).
     4.2 Amended and Restated Declaration of Trust dated as
          of November 18, 1996 (incorporated by reference to
          Exhibit 4.2 to Enron Capital Trust I Form 10-K for
          the year ended December 31, 1996 ("Form 10-K").
     4.3 Amended and Restated Agreement of Limited
         Partnership of Enron Preferred Funding L.P. dated
         as of November 21, 1996 (incorporated by reference
         to Exhibit 4.3 to Form 10-K).
     4.4 Trust Preferred Guarantee Agreement dated as of
         November 21, 1996 (incorporated by reference to
         Exhibit 4.4 to Form 10-K).
     4.5 Partnership Preferred Guarantee Agreement dated as
         of November 21, 1996 (incorporated by reference to
         Exhibit 4.5 to Form 10-K).
     4.6 Indenture dated as of November 21, 1996 relating
         to the Enron's 7.75% Subordinated Debentures due
         2016  (incorporated by reference to Exhibit 4.6 to
         Form 10-K).
     4.7 Indenture dated as of November 21, 1996 relating
         to Enron Pipeline Company's 7.75% Debentures due
         2016 (incorporated by reference to Exhibit 4.7 to
         Form 10-K).
     4.8 Indenture dated as of November 21, 1996 relating
         to the Enron Capital & Trade Resources Corp. 7.75%
         Debentures due 2016 (incorporated by reference to
         Exhibit 4.8 to Form 10-K).
     4.9 Guarantee Agreement of Enron dated as of November
         21, 1996 relating to Enron Pipeline Company's
         7.75% Debentures due 2016 (incorporated by
         reference to Exhibit 4.9 to Form 10-K).
     4.10 Guarantee Agreement of Enron dated as of
         November 21, 1996 relating to Enron Capital &
         Trade Resources Corp. 7.75% Debentures due 2016
         (incorporated by reference to Exhibit 4.10 to Form
         10-K).
     4.11 Form of certificate representing Trust
          Preferred Securities (included in Exhibit 4.2).
     27.1 Financial Data Schedule.

   (b)  Reports on Form 8-K.

        None.



<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.

                              ENRON CAPITAL TRUST I
                                    (Registrant)



Date: May 13, 1998            By: /s/  KEITH A. CRANE
                                  Name:  Keith A. Crane
                                  Title: Regular Trustee




                                  /s/  PHILLIP M. SISNEROS
                                  Name:  Phillip M. Sisneros
                                  Title: Regular Trustee



<PAGE>

                       INDEX TO EXHIBITS

   EXHIBIT
     NO.                  DESCRIPTION

     4.1 Certificate of Trust (incorporated by reference to
         Exhibit 4(a) of the Registration Statement on Form
         S-3 of the Trust (No. 333-14967)).
     4.2 Amended and Restated Declaration of Trust dated as
          of November 18, 1996 (incorporated by reference to
          Exhibit 4.2 to Enron Capital Trust I Form 10-K for
          the year ended December 31, 1996 ("Form 10-K").
     4.3 Amended and Restated Agreement of Limited
         Partnership of Enron Preferred Funding L.P. dated
         as of November 21, 1996 (incorporated by reference
         to Exhibit 4.3 to Form 10-K).
     4.4 Trust Preferred Guarantee Agreement dated as of
         November 21, 1996 (incorporated by reference to
         Exhibit 4.4 to Form 10-K).
     4.5 Partnership Preferred Guarantee Agreement dated as
         of November 21, 1996 (incorporated by reference to
         Exhibit 4.5 to Form 10-K).
     4.6 Indenture dated as of November 21, 1996 relating
         to the Enron's 7.75% Subordinated Debentures due
         2016  (incorporated by reference to Exhibit 4.6 to
         Form 10-K).
     4.7 Indenture dated as of November 21, 1996 relating
         to Enron Pipeline Company's 7.75% Debentures due
         2016 (incorporated by reference to Exhibit 4.7 to
         Form 10-K).
     4.8 Indenture dated as of November 21, 1996 relating to
         the Enron Capital & Trade Resources Corp. 7.75%
         Debentures due 2016 (incorporated by reference to
         Exhibit 4.8 to Form 10-K).
     4.9 Guarantee Agreement of Enron dated as of November
         21, 1996 relating to Enron Pipeline Company's 7.75%
         Debentures due 2016 (incorporated by reference to
         Exhibit 4.9 to Form 10-K).
     4.10  Guarantee Agreement of Enron dated as of
         November 21, 1996 relating to Enron Capital &
         Trade Resources Corp. 7.75% Debentures due 2016
         (incorporated by reference to Exhibit 4.10 to Form
         10-K).
     4.11 Form of certificate representing Trust
          Preferred Securities (included in Exhibit 4.2).
     27.1 Financial Data Schedule.