FORM 10-QSB
[As last amended in Release No. 34-32231, April 28, 1993, 58 F.R.26509]
U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(Mark One)
[X]QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: September 30, 1996
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d)
OF THE EXCHANGE ACT
For the transition period from ________________ to ______________
Commission file number 0-14452
Far West Electric Energy Fund, L.P.
(Exact name of small business issuer as specified in its charter)
Delaware 87-0414725
State or other jurisdiction of (I.R.S. Employer
incorporation or organization Identification
No.)
921 Executive Park Drive, Suite B, Salt Lake City, Utah 84117
(Address of principal executive offices)
(801) 268-4444
Issuer's telephone number
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report.)
Check whether the issuer (1) filed all reports required to
be filed by Section 13 or 15(d) of the Exchange Act during the
past 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 ___
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
FAR WEST ELECTRIC ENERGY FUND, L.P.
Balance Sheets
December 31, 1995 and September 30, 1996
(Unaudited)
Assets 09/30/96 12/31/95
Utility plant:
Plant in service $15,999,000 $ 15,999,000
Equipment 629,000 588,000
Construction in progress 118,000 118,000
Accumulated depreciation (5,859,000) (5,377,000)
Net utility plant 10,887,000 11,328,000
Restricted Marketable Securities 1,067,000 1,026,000
Other assets 93,000 106,000
Current assets:
Cash 207,000 263,000
Receivables - Trade 271,000 399,000
Receivables - Other 0 6,000
Prepaid Insurance 16,000 4,000
Total current assets 494,000 672,000
Total assets $ 12,541,000 $ 13,132,000
The accompanying notes are an integral
part of these financial statements.
FAR WEST ELECTRIC ENERGY FUND, L.P.
Balance Sheets
December 31, 1995 and September 30, 1996
(Unaudited)
Partners' Capital and Liabilities 09/30/96 12/31/95
Partners' capital $ 5,334,000 $ 5,140,000
Long-term debt:
Long-term debt, excluding
current portion 537,000 537,000
Notes payable - Related party 152,000 188,000
Partners' capital and Long-term
Liabilities 6,023,000 5,865,000
Current liabilities:
Current portion - Long-term debt 3,911,000 4,563,000
Note payable - Related party 1,246,000 1,159,000
Payable - Related party 274,000 433,000
Accrued Liabilities
Operations 295,000 402,000
Royalties 78,000 96,000
Interest 714,000 614,000
Total current liabilities 6,518,000 7,267,000
Total partners, capital
and liabilities $ 12,541,000 $ 13,132,000
The accompanying notes are an integral
part of these financial statements
FAR WEST ELECTRIC ENERGY FUND, L.P.
Statements of Operations
(Unaudited)
For The For The For The For The
3 Months 3 Months 9 Months 9 Months
Ended Ended Ended Ended
09/30/96 09/30/95 09/30/96 09/30/95
Revenues
Electric power sales $534,000 494,000 $2,043,000 1,794,000
Pumping charges 21,000 22,000 46,000 47,000
Royalty income 22,000 22,000 65,000 63,000
Interest income 17,000 18,000 43,000 50,000
Total Revenues 594,000 556,000 2,197,000 1,954,000
Expenses
Interest 188,000 143,000 544,000 924,000
Depreciation 161,000 158,000 481,000 462,000
Royalty 88,000 82,000 325,000 290,000
Professional Services 30,000 1,000 100,000 42,000
Administrative services -
general partner 24,000 13,000 78,000 95,000
Amortization 4,000 4,000 13,000 13,000
Insurance 11,000 11,000 36,000 34,000
Maintenance 128,000 164,000 409,000 443,000
Travel 0 7,000 0 7,000
Taxes 0 1,000 1,000 1,000
Other 8,000 6,000 16,000 21,000
Total Expenses 642,000 590,000 2,003,000 2,332,000
Net Income (Loss)
Before Gain on Sale (48,000) (34,000) 194,000 (378,000)
Gain on Sale of Crystal
Springs Project 0 0 0 188,000
Net Income or (Loss) $(48,000) $(34,000) $ 194,000 $(190,000)
The accompanying notes are an integral
part of these financial statements.
FAR WEST ELECTRIC ENERGY FUND, L.P.
Statements of Cash Flows
For the Nine Months Ended September 30, 1996
(Unaudited)
09/30/96
Cash flows from operating activities:
Net income (loss) $ 194,000
Adjustments to reconcile net loss to
net cash used in operating activities
Depreciation and amortization 494,000
Change in assets and liabilities
Decrease (increase) in receivables 134,000
Decrease (increase) in prepaid insurance (12,000)
Decrease (increase) in other assets 0
Increase (decrease) in accounts
payable and accrued expenses (175,000)
Increase (decrease) in amount due to
general partner 78,000
Total Adjustments 519,000
Net cash provided by (used in)
operating activities 713,000
Cash flows from investing activities:
Purchase of plant and equipment (41,000)
Disposal of plant and equipment 0
Net cash provided by (used in)
investing activities (41,000)
Cash flows from financing activities:
Payment of principal on long-term debt (687,000)
Issuance of Long-term debt 0
Net cash provided by (used in)
financing activities (687,000)
Increase (decrease) in cash (15,000)
Cash at beginning of period 1,289,000
Cash and Cash Equivalents
at the end of the period $1,274,000
Supplemental disclosures of cash flow information:
Cash paid during the period of interest $ 411,000
The accompanying notes are an integral
part of these financial statements.
Far West Electric Energy Fund, L.P.
September 30, 1996
Notes to Financial Statements
1.Interim Reporting
The accompanying unaudited financial statements have been
prepared in accordance with generally accepted accounting
principles and with Form 10-QSB requirements. Accordingly,
they do not include all of the information and footnotes
required by generally accepted accounting principles for
complete financial statements. In the opinion of
management, all adjustments considered necessary for a fair
presentation have been included. Operating results for the
nine month period ended September 30, 1996, are not
necessarily indicative of the results that may be expected
for the year ended December 31, 1996. For further
information, refer to the financial statements and footnotes
thereto included in the Partnership's annual report on Form
10-K for the year ended December 31, 1995.
2.Related Party Transactions
Under the terms of the Partnership Agreement, the General
Partner is allowed reimbursements of expenses incurred to
manage the Partnership. For the nine month periods ended
September 30, 1995 and 1996, the Partnership accrued, but
did not pay, fees and reimbursements to the general partner
of $95,000 and $78,000 respectively.
3.Long-term Debt
In January 1990, the Partnership received the proceeds of an
$8,000,000 non-recourse refinancing of its Steamboat Springs
Project ("Project" or "Steamboat Springs Plant") with
Westinghouse Credit Corporation ("WCC"). The WCC loan,
which is secured by the Project assets including the
resource lease, plant and equipment and related contract
rights, bears interest at 11.5% per annum and must be repaid
over ten years in 40 quarterly payments of principal and
interest. This loan is currently in default, primarily
because the loan reserves have not been maintained at
required levels.
Item 2.Management's Discussion and Analysis of Results of
Operations and Financial Condition.
Overall electric power sales increased about 8% this
past quarter as compared to the third quarter of 1995. This
increase was due primarily to increased geothermal brine
flows to the plant originating from a test well located on a
lease adjacent to the lease on which the plant is located.
Whether the plant will continue to receive those flows in
the future is unknown at this time. Maintenance and repair
costs this past quarter were about 21% lower than those of
the third quarter of 1995, due to prior plant upgrades.
The Steamboat Springs Plant is in compliance with
environmental and regulatory agencies.
PART II - OTHER INFORMATION
Item 1.Legal Proceedings
There have been no material changes in the status of legal
proceedings since the Partnership's report on Form 10-Q dated
June 30, 1995.
Item 5.Other Information
In a report dated September 4, 1993 the General Partner
reported to the Limited Partners on its efforts to restructure
the business of the Partnership so as to be able to resume
distributions to the Limited Partners. In summary the General
Partner concluded that the Partnership would be unable to
generate significant positive cash flow or resume distributions
without the infusion of cash sufficient to make capital
improvements in the Steamboat Springs Plant and/or buy out the
Westinghouse loan and certain royalty interests at a discount.
The Partnership does not have the financial resources to
accomplish these goals. At present and in the foreseeable future
the Partnership is generating taxable income without any cash
distributions to pay the tax liabilities. Therefore, it appeared
to the General Partner that it may be advantageous to the
Partnership to consider a sale of all the Partnership assets.
The General Partner has reported to the Limited Partners
that it subsequently executed a contract on behalf of the
Partnership with U.S. Envirosystems, Inc. (a Delaware
corporation) to sell substantially all assets of the Partnership,
including the Steamboat Springs Power Plant. The sale was
approved by the Limited Partners. Sale Documents are currently
being prepared.
On August 20, 1996, Robison, Hill & Co., the registrant's
independent public accountants, issued its certificate
summarizing the voting by limited partners on the transaction
proposed by the Consent Solicitation mailed to partners on July
23, 1996. The certificate contains the following information:
Total outstanding Units:10,306.00
Total Units participating by vote: 5,675.00
Percentage of Units participating by vote: 55.07
Units approving the Proposed Transaction: 5,083.50
Units disapproving the Proposed Transaction: 361.00
Units abstaining: 230.50
Illegible ballots: 35.00
Percentage approval by Units voted: 89.58
Accordingly, upon completion of the conditions of the
purchase agreement by purchaser, the registrant will proceed with
the sale of substantially all its assets, distribution of net
proceeds to the limited partners, and termination of the
partnership, as described in the Consent Solicitation.
This transaction has been delayed pending U.S.
Envirosystems, Inc. raising the necessary funds. The General
Partner believes that this transaction will either close or fail
within 30 days.
Item 6.Exhibits and Reports on Form 8-K
The Partnership filed a report on Form 8-K dated August 21,
1996.
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 duly authorized persons.
Registrant: Far West Electric Energy Fund, L.P.
By: Far West Capital, Inc.,
General Partner
DATE: November 14, 1996 By: /s/
Ronald E. Burch
President
DATE: November 14, 1996 By: /s/
Jody Rolfson
Controller