Ronald P. Baldwin
1043 North Bundy Drive
Los Angeles, CA 90049
Ph/Fax 310-476-0168
September 20, 1993
Far West Electric Energy Fund, L.P.
921 Executive Park Drive
Suite B
Salt Lake City, Utah 84117
Attention:     General Partner
Re: Appraisal Report
Steamboat Springs 1 Thermal Hydroelectric Project
Washoe County, Nevada
In accordance with the agreement dated June 24, 1993, I am pleased
to present this Appraisal Report for the Steamboat I Geothermal
Power Plant, the associated Sierra Pacific Power company ("Sierra")
Agreement for the Purchase and Sale of Electricity and Geothermal
Resource Lease (collectively, "SB#1 or the "Facility").  SB#l is
located ten miles south of Reno, Nevada and sells electricity to
Sierra.
This report concludes that the appraised value of SB#l is
$5,000,000 estimated on the basis of the expected current sale
price for the Facility that would be agreed between a willing buyer
and a willing seller.  This value would not be currently obtainable
upon sale of the Facility unless the existing default dated October
23, 1992 on the Westinghouse Electric Corporation ("Westinghouse")
loan secured on the SB#l assets is eliminated.  The current
Westinghouse loan balance due is approximately $5 million net of
debt reserves.  Accordingly, there is no present value of SB#l net
of secured debt.
Background
Par West Electric Energy Fund, L.P. ("Fund"), a Delaware limited
partnership (formerly Far West Hydroelectric Fund, Ltd., a Utah
limited partnership formed on September 19, 1984) is the owner of
SB#l.  The Fund raised $8,467,000, net of underwriting costs, in a
public offering of limited partnership interests registered with
the Securities and Exchange Commission on January 18, 1985.
The SB#l Facility was purchased by Far West Capital, Inc.(IIFWCII),
general partner of the Fund, on behalf of the Fund from Bonneville
Pacific Corporation (IIBPCII) under the terms of a purchase
agreement dated September 16, 1985.  The purchase price was
$14,850,000 plus the assumption of certain royalty and net profits
obligations.  BPC provided $600,000 of its own financing and agreed
to arrange permanent long-term financing for an additional
$7,100,000.  The construction contractor provided an additional
$1,500,000 of financing.  The Fund provided equity funding for the
remaining $5,650,000.
Further SB#l acquisition costs incurred included a FWC fee of
$684,000 for acquiring the Facility.  Later additions of gathering
system piping of $400,000 and miscellaneous other costs of $60,683
have resulted in the total cost of the SB#I Facility of
$15,994,683.
The SB#l power plant assets consist of seven binary Ormat Energy
Converter Units designed to produce 5 MWs, net saleable
electricity, utilizing geothermal fluids in conjunction with
N-Pentane, the gas activating the turbines.  The plant was
originally designed to use a water cooled condensing process.  The
plant was later changed to an air cooled system due to limited
accessibility of cooling water.
SB#l fuel is provided from three down hole pumped hot water
geothermal wells.  After utilization by SB#l, the geothermal fluids
are transferred for additional use to a 1.7 MWs net, adjacent
geothermal power plant not owned by the Fund.  The geothermal
fluids are returned to SB#l for injection at the site using two
injector wells.  The adjacent geothermal power plant pays a fee to
the Fund equal to that plant's electricity value of 150 KWH, net of
associated royalty costs, as reimbursement for the costs associated
with moving the geothermal fluids.  In addition, the Fund obtained
a net profits interest in the cash flow of the adjacent geothermal
power plant currently at 15% but rising to 40% in 1999 and 45% in
the year 2011.
Initially, SB#l was designed to be supplied with 1.3 million pounds
of geothermal fluid per hour at an average temperature of 335
degrees F. from two production wells but, after changing the plant
design to an air cooled system, it was necessary to increase the
fluid supply to 1.7 million pounds per hour and an additional
production well was added.  Currently, the three production wells
supply 1.7 million pounds of geothermal fluid per hour (4,000
gallons per minute) at an average temperature of 334 degrees F. All
extracted fluid is injected back into the reservoir after
utilization.  Production and injection data to date indicate that
the geothermal field will be able to continue to provide fuel for
the plant at least for the life of the Sierra Agreement for the
Purchase and Sale of Electricity.
The construction contractor provided a ten year performance
guaranty that SB#l would earn annually at least $2,000,000 of net
operating revenue on a cash flow basis after all costs except debt
service and income taxes.  This guaranty was subsequently
eliminated in consideration for the elimination of a note payable
to the contractor (see Financing section below).
SB#l is sited on land leased to the Facility under the terms of a
geothermal resource lease dated November 18, 1983 from Sierra
subsequently assigned to FWC and the Fund as part of the September
16, 1985 purchase agreement with BPC.  Site consent is contained in
the Location and Occupancy Agreement dated December 31, 1985
between Sierra and the Fund.  The Sierra geothermal resource lease
continues as long as commercial quantities of geothermal fluid are
produced from the property.
SB#l sells electricity to Sierra under the terms of the Agreement
for the Purchase and Sale of Electricity dated November 18, 1983
("Power Sales Contract") subsequently assigned to FWC and the Fund
as part of the September 16, 1985 purchase agreement with BPC.  The
Power Sales Contract was amended on March 6, 1987 primarily to
extend the term of the agreement.  The Power Sales Contract, as
amended, expires on December 6, 2006 but, continues year to year
thereafter unless terminated by either Sierra or the Fund.
For the initial ten year period of the Power Sales Contract ending
December 5, 1996, the combined non-time differentiated energy and
capacity selling price for all electricity provided up to
43,800,000 KWH per calendar year is $.0717 per KWH.  The selling
price for electricity for 1997 and subsequent years is dependent on
Sierras non-time differentiated short-term avoided cost rates for
both energy and capacity as approved by the Public Service
Commission of Nevada for the first quarter of 1997 but, no higher
than $.09 per KWH.  Current estimates indicate that this 1997 rate
may be significantly lower than the present $.0717 per KWH.  The
Fund is currently in negotiation to achieve a satisfactory rate for
1997 and beyond.
Royalty and Net Profits Interests
The Fund purchase of SB#l included the assumption of obligations to
pay monthly royalties aggregating 14.05% of the gross revenue
received from the sale of electricity to Sierra.  Most of these
royalties, 10 of the 14.05%, are payable to Sierra in consideration
for the geothermal resource lease.  In addition, the Fund assumed
an obligation to pay a fixed royalty of $4,167 per month.  These
royalties are not subordinated to the Westinghouse Facilities loan.
The initial acquisition of the Facility also included the
assumption of several net profits interest obligations.  In the
first ten years of operation, the net profits interests only apply
to net operating cash flow before debt service and income taxes in
excess of $2,000,000 per year; therefore, no payments have been
required.
Commencing in 1997, various parties retain an aggregate of 30% net
profits interests in the cash flow of the Facility, rising to 50%
after the year 2,007.
Financing
The Fund refinanced SB#l on January 17, 1990 with Westinghouse,
formerly Westinghouse Credit Corporation.  The refinancing was a
$8,000,000 non-recourse loan repayable in forty quarterly
installments of interest and principal at 11% interest per annum. 
The interest rate was later raised to 11.5% per annum. $1,100,000
of the proceeds were held in an interest bearing debt reserve
account by Westinghouse.  Loan repayments are current.  The unpaid
balance of the loan as of July 20, 1993 is $6,140,685 and
$1,082,000 is being held in the debt reserve account.  As
previously noted, the Westinghouse loan is presently in default
primarily due to the Fund's failure to keep the debt reserve
account at the proper level.  The debt reserve balance as of the
end of July, 1993 should be $1,380,000.  Westinghouse declared a
default on the loan on October 23, 1992 but has not accelerated the
debt repayment at this date.
The construction contractor provided $1,500,000 of unsecured
funding upon sale of SB#l to the Fund that was later subordinated
to Westinghouse.  As previously noted, the construction contractor
had also, provided a performance guaranty that the Facility would
earn annual net operating cash flow of at lease $2,000,000.  Net
cash flow in excess of the annual guaranty was to be shared with
the construction contractor and failure to meet the guaranty
resulted in reductions in the amount due on the $1,500,000
construction contractors note.  The Facility has never produced net
operating revenue of $2,000,000 per year thereby resulting in
continual reductions in the $1,500,000 construction contractor's
note.  In 1992, as part of negotiations for settlement of various
issues relating to performance of the Facility, the remaining
amount due on this construction contractor's note was eliminated.
BPC provided $600,000 of unsecured financing upon sale of SB#l to
the Fund that was later subordinated to Westinghouse.  BPC
simultaneously entered into a Offset Agreement that also permitted
the Fund to offset amounts due on the BPC note for failure of SB#l
to meet the construction contractor's performance guaranty.  Due to
the lack of performance by SB#l, as well as certain fraud and other
claims filed by the Fund against BPC in the BPC bankruptcy
proceeding, this note is not payable.
operations
SB#l commenced commercial operations in December, 1985 but had
immediate operating problems which delayed commissioning until
March of 1987.  The Fund self-certified the Facility as a
"Qualifying Facility" before the Federal Energy Regulatory
Commission on April 27, 1987.  Although the Facility was designed
to produce 5 MWs of net electricity for sale to Sierra, the
Facility has only been producing a average maximum of 4.1 MWs net,
per annum or a total of 35,900,000 KWH per year.  In addition, the
Facility has had numerous and continual equipment failures.
As a consequence, the Facility operating cash flow has only been
sufficient to pay the annual Westinghouse debt service payment
which approximates $1,300,000 annually and the required $70,000 per
year additions to the debt reserve account.  In 1992, the
Westinghouse debt service payment could only be met by utilizing
funds from the debt reserve which gave rise to the loan default. 
The Fund is in the process of restoring the reserve from operations
in 1993.  Cash flow before debt service is expected to continue at
about $1,400,000 per year through 1996, the final year of Sierra
fixed KWH rates.
The Fund has attempted to improve the operations including changing
operators.  Presently, the Fund engages SB GEO, Inc., a Utah
corporation owned by the principals of FWC, to operate the
Facility.  The operating agreement provides that SB GEO, Inc. will
only charge the Fund the actual cost of operations.
Book Value
For financial accounting purposes, SB#l is primarily depreciated
over 30 years.  Accumulated depreciation as of July 31, 1993 will
be approximately $3,900,000.  As described above, the original cost
of the Facility was $15,994,683.  Therefore, the net book value of
the Facility is about $12,100,000 as of July 31, 1993.  However,
$2,100,000 of original cost consisting of the notes to BPC and the
construction contractor have been canceled by negotiation. 
Accordingly, a more accurate, revised net book value amount would
be $10,000,000.
Tax Matters
The Fund, as a limited partnership, is not subject to federal or
state income taxes.  The Fund's taxable income or loss on an annual
basis is includible on the income tax returns of the general and
limited partners-'in proportion to the taxable income and loss
sharing ratios of the partners as provided in the limited
partnership agreement.
The Fund has utilized allowable accelerated amortization of the
Facility for income tax purposes and the Facility was eligible for
various income tax credits at the date of commercial start-up. 
These tax benefits have reduced the tax basis of the Facility at
July 31, 1993 to zero.
Appraised Value
In order to arrive at an appraised value, the undersigned visited
the SB#l site as well as the offices where the financial records of
the Facility are maintained.  Discussions were held with Mr. Alan
0. Melchior, representing the general partner of the Fund, the
geothermal reservoir consultant and with several other operating
and administrative employees of FWC and SB GEO, Inc. involved with
SB#l.  All key contracts and agreements affecting SB#l were
reviewed as well as accounting and tax records including the Fund
partnership tax returns for 1991 and 1992 and the annual Form 10-K
filed by the Fund with the Securities and Exchange Commission for
the years 1985 through 1992.
At the current level of operations of net saleable electricity
produced at an average of 4.1 NW per annum, the Facility should
yield cash flow through 1996, the last year of fixed payments for
delivered KWH on the sale of electricity to Sierra, sufficient to
continue scheduled debt service and debt reserve payments through
1996.  At that time, the remaining amount owed to Westinghouse
should be approximately $3,500,000 and Westinghouse should be
holding a debt reserve of about $1,590,000.  Therefore, the
Facility will require operations at substantially improved levels
of efficiency, royalty reductions or continued ability to sell
electricity to Sierra at near current prices in 1997 and 1998 just
to amortize the Westinghouse loan in accordance with the existing
loan repayment schedule.  Further, the operations will be
additionally burdened with net profits interests aggregating about
30% of net cash flow.
Alternatively, the used equipment value of the Facility must be
worth at least $2,000,000, and be realizable from a willing buyer,
as of the end of 1996 in order to repay the Westinghouse loan in
accordance with the existing loan repayment schedule.

one or a combination of these alternatives appears feasible. 
Therefore, it is concluded that SB#l, in its present operating
condition, would be valued at $5,000,000 as of July 31, 1993 by a
willing buyer and seller.  The Facilities' probable low electricity
sale price after 1996 and the net profits interests that commence
in 1997 contribute to this valuation.  This valuation approximates
the current balance due on the Westinghouse loan secured on the
Facility net of the cash debt service reserves held by
Westinghouse.
Please advise if you require any further information.
Yours very truly,
/s/
Ronald P. Baldwin