Securities and Exchange Commission
                                 
                       Washington, DC  20549
                                 
                             Form 8-K
                                 
                          Current Report
                                 
              Pursuant to Section 13 or 15(d) of the
                   Securities Exchange Act 1934
                                 
                                 
                  Date of Report October 13, 1998
                 (Date of earliest event reported)
                                 
                                 
                                 
                  Salton Sea Funding Corporation
      (Exact name of registrant as specified in its charter)
                                 


  Delaware                   33-95538              47-0790493
(State of other          (Commission File       (IRS  Employer
 jurisdiction of              Number)         Identification No.)
 incorporation)



 302 South 36th Street, Suite 400,  Omaha, NE         68131
   (Address of principal executive offices)         Zip Code




Registrant's Telephone Number, including area code:    (402) 341-4500




                              N/A
 (Former name or former address, if changed since last report)


Item 5.  Other Events

     On October 13, 1998, the Registrant completed an institutional
placement  of  $285 million principal amount of  its  7.45%  Senior
Secured  Series  F Bonds due November 30, 2018.   These  Bonds  are
secured by the stock of the Registrant.

      Proceeds from the issuance of Funding Corporation Bonds  will
be  used to fund construction of two new geothermal projects at the
Salton   Sea  totaling  59MW,  to  partially  fund  the  costs   of
construction of the related 30,000 metric tonne/year Zinc  Recovery
Project, to fund a portion of the costs associated with the upgrade
of  certain  brine  processing facilities  and  for  other  capital
improvements  to  the  steamfield and  related  facilities  at  the
existing Salton Sea projects.

      The  Funding Corporation Bonds have received investment grade
ratings from Standard & Poor's and Moody's Investor Service of BBB-
and Baa2, respectively.

     Certain information included in this report contains forward-
looking statements made pursuant to the Private Securities
Litigation Reform Act of 1995 ("Reform Act").  Such statements are
based on current expectations and involve a number of known and
unknown risks and uncertainties that could cause the actual results
and performance of the Registrant to differ materially from any
expected future results or performance, expressed or implied , by
the forward-looking statements.


                           SIGNATURE


     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 hereunto duly authorized.

                                   Salton Sea Funding Corporation




                              By:   \s\ Douglas L. Anderson
                                        Douglas L. Anderson
                                        Assistant Secretary and
                                        Assistant General Counsel




Dated: October 13, 1998