SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
Date of Report December 14, 2001
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(Date of earliest event reported)
Commission File No. 33-95538
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SALTON SEA FUNDING CORPORATION
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(Exact name of registrant as specified in its charter)
47-0790493
(IRS Employer Identification No.)
(State or other jurisdiction (I.R.S. Employer
(Exact name of Registrants of incorporation Identification
as specified in their charters) or organization) No.)
- ------------------------------- ---------------------------- ----------------
Salton Sea Brine Processing L.P. California 33-0601721
Salton Sea Power Generation L.P. California 33-0567411
Fish Lake Power LLC Delaware 33-0453364
Vulcan Power Company Nevada 95-3992087
CalEnergy Operating Corporation Delaware 33-0268085
Salton Sea Royalty LLC Delaware 47-0790492
VPC Geothermal LLC Delaware 91-1244270
San Felipe Energy Company California 33-0315787
Conejo Energy Company California 33-0268500
Niguel Energy Company California 33-0268502
Vulcan/BN Geothermal Power Company Nevada 33-3992087
Leathers, L.P. California 33-0305342
Del Ranch, L.P. California 33-0278290
Elmore, L.P. California 33-0278294
Salton Sea Power LLC Delaware 47-0810713
CalEnergy Minerals LLC Delaware 47-0810718
CE Turbo LLC Delaware 47-0812159
CE Salton Sea Inc. Delaware 47-0810711
Salton Sea Minerals Corp. Delaware 47-0811261
302 S. 36th Street, Suite 400-A, Omaha, NE 68131
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(Address of principal executive offices and Zip Code
of Salton Sea Funding Corporation)
Salton Sea Funding Corporation's Telephone Number,
including area code: (402) 341-4500
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N/A
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(Former name or former address, if changed since last report)
Item 5. Other Events.
On December 10, 2001 Moody's Investors Service, Inc. ("Moody's")
announced that it had upgraded its rating on the senior secured debt of Salton
Sea Funding Corporation ("Salton Sea Funding") to Ba3 from Caa2. A copy of
Moody's press release announcing the rating upgrade is included as Exhibit 1 to
this report.
Salton Sea Funding also reports today that its affiliates that operate
geothermal plants in California filed suit on December 10, 2001 in Imperial
County Superior Court seeking to force Edison to meet the terms of agreements it
signed to purchase electricity from the plants. The suit seeks capacity bonus
payments which are required to be paid by Edison under the terms of the
agreements.
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 Registrants to differ materially from any
expected future results or performance, expressed or implied, by the
forward-looking statements including expectations regarding the future results
of operations of Registrants. In connection with the safe harbor provisions of
the Reform Act, the Registrants have identified important factors that could
cause actual results to differ materially from such expectations, including
development and construction uncertainty, operating uncertainty, acquisition
uncertainty, uncertainties relating to geothermal resources, uncertainties
relating to economic and political conditions and uncertainties regarding the
impact of regulations, changes in government policy, industry deregulation and
competition. Reference is made to all of the Registrants' SEC Filings,
incorporated herein by reference, for a description of such factors. The
Registrants assume no responsibility to update forward-looking information
contained herein.
Item 7. Financial Statements and Exhibits
Exhibit 1 - Moody's Press Release dated December 10, 2001
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 thereunto duly authorized.
SALTON SEA FUNDING CORPORATION
Date: December 14, 2001 By: /s/ Paul J. Leighton
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Paul J. Leighton
Secretary
EXHIBIT 1
CORRECTED - (OFFICIAL)-TEXT-Moody's raises CE Generation ratings
CORRECTION TO TEXT: MOODY'S UPGRADES THE RATINGS FOR BOTH CE GENERATION
LLC AND SALTON SEA FUNDING CORPORATION (CE GENERATION AND SALTON SEA FUNDING
ARE NOT WHOLLY-OWNED SUBSIDIARIES OF MIDAMERICAN ENERGY HOLDINGS COMPANY, THEY
ARE 50% OWNED.)
(Press release provided by Moody's Investor Service)
NEW YORK, Dec 10 - Moody's Investors Service today raised the rating of
CE Generation, LLC (CEGen) senior secured debt to Ba2 from B1 and the rating
of Salton Sea Funding Corporation senior secured debt to Ba3 from Caa2. Both
ratings are removed from review for further upgrade and the rating outlook for
both CEGen and Salton Sea debt is positive. The rating action reflects a
number of positive developments relating to the financial outlook for Southern
California Edison Company (SCE: Issuer Rating - Caa2; On Review for Possible
Upgrade) following the October 2001 settlement with the California Public
Utility Commission (CPUC) which allows recovery of past wholesale power
procurement costs. The rating action acknowledges the recent announcement that
SCE and nearly all of the qualifying facilities (QFs) had successfully agreed
to modifications to the terms of certain purchase power agreements between SCE
and QFs. Key elements of these five-year agreements include a fixed energy
payment amount of 5.37 cents payable to the renewable QFs and resolution
around the timing for repayment of past amounts owed to the QFs. Moody's
expects that the modifications to these contracts will require CPUC approval,
which should follow given the similar terms of these contracts to the original
agreements. The rating action further considers the very liquid position of
SCE, and the fact that SCE has resumed payments to the QFs since April 2001
(following a March 27th order from the CPUC). Moody's notes the continued
existence of a funded debt service reserve and the fact that the projects
remained current on debt service even while SCE was not making required
payments to the projects. The rating action further notes the importance of
these assets to the generating mix in California and incorporates in the CEGen
upgrade the fact that 40% of CEGen's cash flow is derived from non-California
sources. While today's rating action clearly considers the liquidity position
of SCE, the rating action is tempered by the current Caa2 issuer rating of
SCE. The positive outlook for both CEGen and Salton Sea reflects the improved
longer-term prospects for SCE if all elements of the settlement agreement with
the CPUC are implemented. CEGen and Salton Sea are 50% owned by Mid-American
Energy Holding Company.
REUTERS
Rtr 16:07 12-10-01
:SUBJECT: SRTG COBO ENER UTIL USA
Copyright (c) 2001 Reuters
Received By NewsEDGE/LAN:Mon Dec 10 16:09:16 2001