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: June 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 June 30, 1996
(Unaudited)
Assets 06/30/96 12/31/95
Utility plant:
Plant in service $ 15,999,000 $ 15,999,000
Equipment 616,000 588,000
Construction in progress 118,000 118,000
Accumulated depreciation (5,697,000) (5,377,000)
Net utility plant 11,036,000 11,328,000
Restricted Marketable Securities 1,054,000 1,026,000
Other assets 97,000 106,000
Current assets:
Cash 245,000 263,000
Receivables - Trade 317,000 399,000
Receivables - Other 0 6,000
Prepaid Insurance 27,000 4,000
Total current assets 589,000 672,000
Total assets $ 12,776,000 $ 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 June 30, 1996
(Unaudited)
Partners' Capital and Liabilities 06/30/96 12/31/95
Partners' capital $ 5,381,000 $ 5,140,000
Long-term debt:
Long-term debt, excluding
current portion 537,000 537,000
Notes payable - Related party 164,000 188,000
Partners' capital and Long-term
Liabilities 6,082,000 5,865,000
Current liabilities:
Current portion - Long-term debt 4,139,000 4,563,000
Note payable - Related party 1,201,000 1,159,000
Payable - Related party 275,000 433,000
Accrued Liabilities
Operations 317,000 402,000
Royalties 84,000 96,000
Interest 678,000 614,000
Total current liabilities 6,694,000 7,267,000
Total partners' capital
and liabilities $ 12,776,000 $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 6 Months 6 Months
Ended Ended Ended Ended
06/30/96 06/30/95 06/30/96 06/30/95
Revenues
Electric power sales $ 671,000 635,000 $1,509,000 1,300,000
Pumping charges 14,000 14,000 25,000 25,000
Royalty income 21,000 18,000 43,000 41,000
Interest income 15,000 20,000 26,000 32,000
Other income 0 0 0 0
Total Revenues 721,000 687,000 1,603,000 1,398,000
Expenses
Interest 165,000 504,000 356,000 781,000
Depreciation 161,000 158,000 320,000 304,000
Royalty 107,000 102,000 237,000 208,000
Professional Services 47,000 20,000 70,000 41,000
Administrative services -
general partner 27,000 16,000 54,000 82,000
Amortization 5,000 5,000 9,000 9,000
Insurance 12,000 12,000 25,000 23,000
Maintenance 137,000 127,000 281,000 279,000
Production Expenses 1,000 0 1,000 0
Other 3,000 4,000 8,000 15,000
Total Expenses 665,000 948,000 1,361,000 1,742,000
Net Income (Loss)
Before Gain on Sale 56,000 (261,000) 242,000 (344,000)
Gain on Sale of Crystal
Springs Project 0 0 0 188,000
Net Income or (Loss) $ 56,000 $(261,000)$ 242,000 $ (156,000)
The accompanying notes are an integral
part of these financial statements.
FAR WEST ELECTRIC ENERGY FUND, L.P.
Statements of Cash Flows
For the Six Months Ended June 30, 1996
(Unaudited)
06/30/96
Cash flows from operating activities:
Net income (loss) $ 242,000
Adjustments to reconcile net loss to
net cash used in operating activities
Depreciation and amortization 329,000
Change in assets and liabilities
Decrease (increase) in receivables 87,000
Decrease (increase) in prepaid insurance (23,000)
Decrease (increase) in other assets (28,000)
Increase (decrease) in accounts
payable and accrued expenses (33,000)
Increase (decrease) in amount due to
general partner (140,000)
Total Adjustments 192,000
Net cash provided by (used in)
operating activities 434,000
Cash flows from investing activities:
Purchase of plant and equipment (28,000)
Disposal of plant and equipment 0
Net cash provided by (used in)
investing activities (28,000)
Cash flows from financing activities:
Payment of principal on long-term debt (424,000)
Issuance of Long-term debt 0
Net cash provided by (used in)
financing activities (424,000)
Increase (decrease) in cash (18,000)
Cash at beginning of period 263,000
Cash and Cash Equivalents
at the end of the period $ 245,000
Supplemental disclosures of cash flow information:
Cash paid during the period of interest $ 79,000
The accompanying notes are an integral
part of these financial statements.
Far West Electric Energy Fund, L.P.
June 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 six month period ended June 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 six month
periods ended June 30, 1995 and 1996, the Partnership
accrued, but did not pay, fees and reimbursements to
the general partner of $86,000 and $54,000
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 16%
this past quarter as compared to the second quarter of
1995. This increase was due to a combination of
factors; (1) fewer generator failures; (2) improvement
in condensor fans; (3) the computer operating programs
and (4) 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 8% higher
than those of the second quarter of 1995 due to plant
repairs which included fire protection, overhaul of a
pump bowl assembly and submersible pump test.
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 March
31, 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 is conditioned on the approval of the
Limited Partners. That Contract was attached to a draft proxy
statement describing the details of the transaction, its tax effect
and an opinion as to the fairness of the proposed transaction, which
was submitted to the Securities and Exchange Commission for its
review. After SEC review these materials were mailed to the Limited
Partners on July 23, 1996 for their review and vote by August 14,
1996. If the proposed sale of Partnership assets is approved the
General Partner proposes to distribute all proceeds of the sale to
Limited Partners (after payment of debts and accounts to third
parties) and to terminate the Partnership. The voting to date appears
to be overwhelmingly in favor of approval of the sale. The vote
tabulation will be verified by Robison, Hill and Co., an independent
accounting firm, and the Limited Partners will be notified of the
final voting results.
Item 6. Exhibits and Reports on Form 8-K
The Partnership did not file a report on Form 8-K during the
three months ended June 30, 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: August 15, 1996 By: /s/__________________________
Ronald E. Burch
President
DATE: August 15, 1996 By: /s/
Jody Rolfson
Controller
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET OF FAR WEST ELECTRIC ENERGY FUND, L.P. AS OF JUNE 30, 1996 AND THE RELATED
STATEMENTS OF OPERATIONS AND CASH FLOWS FOR THE SIX MONTHS THEN ENDED AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENT.
</LEGEND>
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0
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<OTHER-SE> 5381
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<SALES> 1509
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