<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEETS AND CONSOLIDATED STATEMENTS OF OPERATIONS FOUND ON
PAGES 3 AND 4 OF THE PARTNERSHIP'S FORM 10Q FOR THE YEAR-TO-DATE, AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000899281
<NAME> SITHE/INDEPENDENCE FUNDING CORP.
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               SEP-30-1998
<CASH>                                             714
<SECURITIES>                                         0
<RECEIVABLES>                                   26,635
<ALLOWANCES>                                         0
<INVENTORY>                                      3,845
<CURRENT-ASSETS>                               147,437
<PP&E>                                         772,338
<DEPRECIATION>                                (72,134)
<TOTAL-ASSETS>                                 860,038
<CURRENT-LIABILITIES>                           61,375
<BONDS>                                        655,639
<PREFERRED-MANDATORY>                                0
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<OTHER-SE>                                     137,810
<TOTAL-LIABILITY-AND-EQUITY>                   860,038
<SALES>                                        262,946
<TOTAL-REVENUES>                               262,946
<CGS>                                          204,693
<TOTAL-COSTS>                                  204,693
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                              46,045
<INCOME-PRETAX>                                 17,246
<INCOME-TAX>                                         0
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<NET-INCOME>                                    17,246
<EPS-PRIMARY>                                        0
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