FORM 10-Q

(Mark One)
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 For the quarterly period ended    September 30, 2003
                                              ------------------

                                       or

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 For the transition period from _______________to________________

Commission File Number:         333-83815
                                ---------

                          Caithness Coso Funding Corp.
                          ----------------------------
             (Exact name of registrant as specified in its charter)

              Delaware                                  94-3328762
              --------                                  ----------
    (State or other jurisdiction of                  (I.R.S. Employer
     incorporation or organization)                 Identification No.)

   Coso Finance Partners              California               68-0133679
   Coso Energy Developers             California               94-3071296
   Coso Power Developers              California               94-3102796
   ---------------------              ----------               ----------
 (Exact names of Registrants        (State or other         (I.R.S. Employer
as specified in their charters)     jurisdiction of        Identification No.)
                                    incorporation or
                                      organization)


565 Fifth Avenue, 29th Floor, New York, New York             10017-2478
-------------------------------------------------            ----------
   (Address of principal executive offices)                  (Zip Code)

                                 (212) 921-9099
                                 --------------
              (Registrant's telephone number, including area code)

                                 Not Applicable
                                 --------------
                    (Former name, former address and former
                   fiscal year, if changed since last report.)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 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.
[X] Yes [ ] No

                     APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date.

       300 shares in Caithness Coso Funding Corp. as of November 13, 2003
       ------------------------------------------------------------------


<PAGE>

                          CAITHNESS COSO FUNDING CORP.
                                    Form 10-Q
                    For the Quarter Ended September 30, 2003


PART I.  FINANCIAL INFORMATION                                          Page No.

ITEM 1.  Financial Statements

   Caithness Coso Funding Corp.
   Unaudited condensed balance sheets at September 30, 2003 and
     December 31, 2002                                                         4
   Unaudited condensed statements of operations for the three-months
     ended September 30, 2003, the three-months ended September 30,
     2002, the nine-months ended September 30, 2003, and the nine-
     months ended September 30, 2002                                           5
   Unaudited condensed statements of cash flows for the nine-months
     ended September 30, 2003, and the nine-months ended
     September 30, 2002                                                        6
   Notes to the unaudited condensed financial statements                       7

   Coso Finance Partners
   Unaudited condensed balance sheets at September 30, 2003 and
     December 31, 2002                                                         8
   Unaudited condensed statements of operations for the three-months
     ended September 30, 2003, the three-months ended September 30,
     2002, the nine-months ended September 30, 2003, and the nine-
     months ended September 30, 2002                                           9
   Unaudited condensed statements of cash flows for the nine-months
     ended September 30, 2003, and the nine-months ended
     September 30, 2002                                                       10
   Notes to the unaudited condensed financial statements                      11

   Coso Energy Developers
   Unaudited condensed balance sheets at September 30, 2003 and
     December 31, 2002                                                        13
   Unaudited condensed statements of operations for the three-months
     ended September 30, 2003, the three-months ended September 30,
     2002, the nine-months ended September 30, 2003, and the nine-
     months ended September 30, 2002                                          14
   Unaudited condensed statements of cash flows for the nine-months
     ended September 30, 2003, and the nine-months ended
     September 30, 2002                                                       15
   Notes to the unaudited condensed financial statements                      16

                                       2

   Coso Power Developers
   Unaudited condensed balance sheets at September 30, 2003 and
     December 31, 2002                                                        18
   Unaudited condensed statements of operations for the three-months
     ended September 30, 2003, the three-months ended September 30,
     2002, the nine-months ended September 30, 2003, and the nine-
     months ended September 30, 2002                                          19
   Unaudited condensed statements of cash flows for the nine-months
     ended September 30, 2003, and the nine-months ended
     September 30, 2002                                                       20
   Notes to the unaudited condensed financial statements                      21

ITEM 2.     Management's Discussion and Analysis of Financial Condition
             and Results of Operations                                        22

ITEM 3.     Controls and Procedures                                           32

PART II.    OTHER INFORMATION

ITEM 1.     Legal Proceedings                                                 32
ITEM 2.     Change in Securities and Use of Proceeds                          32
ITEM 3.     Defaults upon Senior Securities                                   32
ITEM 4.     Submission of Matters to a Vote of Security Holders               33
ITEM 5.     Other Information                                                 33
           Supplemental condensed combined financial information for the
             Coso Partnerships
           Unaudited condensed combined balance sheets at September 30,
             2003 and December 31, 2002                                       34
           Unaudited  condensed combined statements of operations for the
             three-months ended September 30, 2003, the three-months ended
           September 30, 2002, the nine-months ended September 30, 2003,
             and the nine-months ended September 30, 2002                     35
           Unaudited condensed combined statements of cash flows for the
             nine-months ended September 30, 2003, and the nine-months
             ended September 30, 2002                                         36
           Notes to the unaudited condensed combined financial statements     37

ITEM 6.     Exhibits and Reports on Form 8-K                                  39

                                       3
<PAGE>
<TABLE>
<CAPTION>
                                CAITHNESS COSO FUNDING CORP.
                             UNAUDITED CONDENSED BALANCE SHEETS
                                   (Dollars in thousands)


                                                                 September 30,    December 31,
                                                                     2003            2002
                                                                                    (Note)
<S>                                                              <C>              <C>
Assets:
  Accrued interest receivable.......................                $   7,165       $   1,130
  Project loan to Coso Finance Partners.............                  105,560         110,955
  Project loan to Coso Energy Developers............                   87,853          89,875
  Project loan to Coso Power Developers.............                   76,739          80,401
                                                                       ------          ------

                                                                    $ 277,317       $ 282,361
                                                                      =======         =======


Liabilities and Stockholders' Equity:
  Senior secured notes:
    Accrued interest payable.......................                 $   7,165       $   1,130
    9.05% notes due 2009...........................                   270,152         281,231
                                                                      -------         -------
                                                                      277,317         282,361
Stockholders' equity.................................                     ---             ---
                                                                      -------         -------

                                                                    $ 277,317       $ 282,361
                                                                      =======         =======
</TABLE>




Note:The condensed  balance sheet at December 31, 2002 has been derived from the
     audited  financial  statements at that date but does not include all of the
     information  and  footnotes  required by  accounting  principles  generally
     accepted in the United States of America for complete financial statements.





     See accompanying notes to the unaudited condensed financial statements









                                       4

<PAGE>
<TABLE>
<CAPTION>
                                                 CAITHNESS COSO FUNDING CORP.
                                         UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
                                                    (Dollars in thousands)


                                               Three-Months       Three-Months        Nine-Months        Nine-Months
                                                   Ended              Ended              Ended              Ended
                                               September 30,      September 30,      September 30,      September 30,
                                                   2003               2002               2003               2002
<S>                                            <C>                <C>               <C>                <C>
Interest income................                  $  6,144           $  6,659          $  18,761          $  20,369
Interest expense...............                    (6,144)            (6,659)           (18,761)           (20,369)
                                                   -------            -------           --------           --------

    Net income.................                  $    ---           $    ---          $     ---          $     ---
                                                   =======            =======           ========           ========
</TABLE>





     See accompanying notes to the unaudited condensed financial statements









                                       5
<PAGE>
<TABLE>
<CAPTION>
                                   CAITHNESS COSO FUNDING CORP.
                           UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
                                      (Dollars in thousands)


                                                                        Nine-Months          Nine-Months
                                                                           Ended                Ended
                                                                       September 30,        September 30,
                                                                           2003                 2002
<S>                                                                    <C>                  <C>
Net cash provided by (used in) investing activities.......               $  5,044             $  2,051
Net cash provided by (used in) financing activities.......                 (5,044)              (2,051)
                                                                            -----                -----
Net change in cash and cash equivalents...................               $    ---             $    ---
                                                                            =====                =====

Supplemental cash flow disclosure:
     Cash paid for interest...............................               $ 12,726             $ 13,710
                                                                           ======               ======
</TABLE>





     See accompanying notes to the unaudited condensed financial statements









                                       6
<PAGE>


                          CAITHNESS COSO FUNDING CORP.
              NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS
                             (Dollars in thousands)


(1)      Organization and Operations

Caithness Coso Funding Corp.  (Funding  Corp.),  which was incorporated on April
22,  1999,  is a  single-purpose  Delaware  corporation  formed to issue  senior
secured  notes  (Notes) for its own account and as an agent  acting on behalf of
Coso  Finance  Partners  (CFP),  Coso Energy  Developers  (CED),  and Coso Power
Developers (CPD),  collectively,  the "Coso Partnerships." The Coso Partnerships
are California general partnerships.

On May 28, 1999,  Funding  Corp.  sold  $413,000 of Notes.  Pursuant to separate
credit agreements  between Funding Corp. and each partnership,  the net proceeds
from the  offering of  $110,000  of 6.80%  Notes due 2001 and  $303,000 of 9.05%
Notes due 2009 were loaned to the Coso  Partnerships,  and the Coso Partnerships
have jointly and severally  guaranteed  repayment on a senior basis.  Payment of
the Notes is provided for by payments made by the Coso Partnerships  under their
respective project loans.

Funding  Corp.  has no  material  assets  other than the loans,  and the accrued
interest thereon,  that have been made to the Coso  Partnerships.  Also, Funding
Corp. does not conduct any business, other than issuing the senior secured notes
and making the loans to the Coso Partnerships.

(2)      Basis of Presentation

The accompanying  unaudited condensed financial statements have been prepared in
accordance with accounting principles generally accepted in the United States of
America for interim financial information.  Accordingly, certain information and
footnote  disclosures  normally  included in  financial  statements  prepared in
accordance with accounting principles generally accepted in the United States of
America  have been  condensed  or omitted  pursuant  to such  rules.  Management
believes that the disclosures are adequate to make the information presented not
misleading when read in conjunction  with the audited  financial  statements and
the notes thereto for the year ended December 31, 2002.

The financial information herein presented reflects all adjustments,  consisting
only of normal recurring  adjustments,  which are, in the opinion of management,
necessary for a fair statement of the results for interim periods presented. The
results for the interim periods are not necessarily  indicative of results to be
expected for the full year.









                                       7

<PAGE>
<TABLE>
<CAPTION>
                                             COSO FINANCE PARTNERS
                                      UNAUDITED CONDENSED BALANCE SHEETS
                                            (Dollars in thousands)


                                                                                  September 30,       December 31,
                                                                                      2003               2002
                                                                                                        (Note)
<S>                                                                                <C>                <C>
Assets:
   Cash and cash equivalents..................................................      $  11,786          $   4,215
   Restricted cash and investments............................................         27,094             28,692
   Accounts receivable, net...................................................         11,978              7,431
   Prepaid expenses & other assets............................................          1,276              1,068
   Amounts due from related parties...........................................          1,169              1,190
   Property, plant & equipment, net...........................................        137,237            136,313
   Power purchase agreement, net..............................................          9,084              9,945
   Advances to New CLPSI Company, LLC.........................................          4,099              4,010
   Deferred financing costs, net..............................................          1,971              2,208
                                                                                        -----              -----

                                                                                    $ 205,694          $ 195,072
                                                                                      =======            =======

Liabilities and Partners' Capital:
   Accounts payable and accrued liabilities...................................      $   4,294          $   5,764
   Amounts due to related parties.............................................          3,162                467
   Other liabilities..........................................................         15,274             12,478
   Project loans..............................................................        105,560            110,955
                                                                                      -------            -------
                                                                                      128,290            129,664
Partners' capital.............................................................         77,404             65,408
                                                                                      -------            -------

                                                                                    $ 205,694          $ 195,072
                                                                                      =======            =======
</TABLE>





Note:The condensed  balance sheet at December 31, 2002 has been derived from the
     audited  financial  statements at that date but does not include all of the
     information  and  footnotes  required by  accounting  principles  generally
     accepted in the United States of America for complete financial statements.





     See accompanying notes to the unaudited condensed financial statements









                                       8

<PAGE>
<TABLE>
<CAPTION>
                                                    COSO FINANCE PARTNERS
                                        UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
                                                   (Dollars in thousands)


                                                         Three-Months        Three-Months        Nine-Months        Nine-Months
                                                             Ended               Ended              Ended              Ended
                                                         September 30,       September 30,      September 30,      September 30,
                                                             2003                2002               2003               2002
<S>                                                      <C>                 <C>                <C>                <C>
Revenue:
   Energy revenues................................        $  11,643           $  11,571          $  34,698          $  64,683
   Capacity revenues..............................            8,190               8,190             13,011             14,904
                                                              -----               -----             ------             ------
          Total revenue...........................           19,833              19,761             47,709             79,587

Operating expenses:
   Plant operating expenses.......................            2,291               2,811              6,875              7,379
   Royalty expense................................            4,982               5,762             11,603             11,393
   Depreciation and amortization..................            2,720               3,049              7,997              8,126
                                                              -----               -----              -----              -----
          Total operating expenses................            9,993              11,622             26,475             26,898

          Operating income........................            9,840               8,139             21,234             52,689

Other (income)/expenses:
   Interest and other income......................              (41)               (136)              (155)            (1,655)
   Interest expense...............................            2,402               2,668              7,376              8,216
   Amortization of deferred financing costs.......               79                  79                237                237
                                                              -----               -----              -----              -----
          Total other expenses....................            2,440               2,611              7,458              6,798
                                                              -----               -----              -----              -----

 Income before cumulative effect of change
   in accounting principle........................            7,400               5,528             13,776             45,891

Cumulative effect of change in
   accounting principle...........................              ---                 ---              1,780                ---
                                                              -----               -----             ------             ------

          Net income..............................        $   7,400           $   5,528          $  11,996          $  45,891
                                                              =====               =====             ======             ======
</TABLE>





     See accompanying notes to the unaudited condensed financial statements









                                       9

<PAGE>
<TABLE>
<CAPTION>
                                       COSO FINANCE PARTNERS
                           UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
                                      (Dollars in thousands)


                                                                     Nine-Months         Nine-Months
                                                                        Ended               Ended
                                                                    September 30,       September 30,
                                                                         2003                2002
<S>                                                                 <C>                 <C>


Net cash provided by (used in) operating activities ..........       $  19,017           $  54,861
Net cash provided by (used in) investing activities ..........          (6,051)             (4,546)
Net cash provided by (used in) financing activities...........          (5,395)            (40,568)
                                                                         -----              ------
Net change in cash and cash equivalents ......................       $   7,571           $   9,747
                                                                         =====              ======
Supplemental cash flow disclosure:
       Cash paid for interest ................................       $   5,021           $   5,545
                                                                         =====              ======
</TABLE>





     See accompanying notes to the unaudited condensed financial statements









                                       10

<PAGE>

                              COSO FINANCE PARTNERS
              NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS
                             (Dollars in thousands)


(1)      Organization and Operation

Coso Finance Partners (CFP), a general partnership,  is engaged in the operation
of a 80 MW power generation facility located at the China Lake Naval Air Weapons
Station,  China Lake California.  CFP sells all electricity produced to Southern
California Edison (Edison) under a power purchase contract that expires in 2011.

(2)      Basis of Presentation

The accompanying  unaudited  condensed combined  financial  statements have been
prepared in accordance  with  accounting  principles  generally  accepted in the
United States of America for interim financial information. Accordingly, certain
information and footnote  disclosures  normally included in financial statements
prepared in accordance  with  accounting  principles  generally  accepted in the
United States of America have been condensed or omitted  pursuant to such rules.
Management  believes that the  disclosures  are adequate to make the information
presented not  misleading  when read in conjunction  with the audited  financial
statements and the notes thereto for the year ended December 31, 2002.

The financial information herein presented reflects all adjustments,  consisting
only of normal recurring  adjustments,  which are, in the opinion of management,
necessary for a fair statement of the results for interim periods presented. The
results for the interim periods are not necessarily  indicative of results to be
expected  for  the  full  year.  CFP  has  experienced   significant   quarterly
fluctuations  in  operating  results and it expects that these  fluctuations  in
energy revenues, expenses and net income will continue.

(3)      Accounts Receivable and Revenue Recognition

Due to the uncertainty  surrounding Edison's ability to make payment on past due
amounts,  collection  was not  reasonably  assured  and  CFP had not  recognized
revenue  from  Edison for energy  delivered  during the period  November 1, 2000
through  March 26, 2001.  On March 1, 2002,  Edison  reached  certain  financing
milestones and paid CFP for revenue generated, but not recognized for the period
November 1, 2000 through March 26, 2001.  During the nine-months ended September
30, 2002,  CFP  recognized  revenue for energy  delivered  from November 1, 2000
through March 26, 2001 of $37.3 million.

(4)     Reclassifications

Certain  balances  in prior  years  have been  reclassified  to  conform  to the
presentation adopted in the current year.

(5)      New Accounting Pronouncements

In June 2001, the Financial  Accounting  Standards Board (FASB) issued Statement
of  Financial   Accounting  Standards  (SFAS)  No.  143,  Accounting  for  Asset
Retirement  Obligations.  This  Statement  addresses  financial  accounting  and
reporting for obligations  associated with the retirement of tangible long-lived
assets  and the  associated  asset  retirement  costs and  amends  SFAS No.  19,
Financial  Accounting  and  Reporting by Oil and Gas  Producing  Companies.  The
Statement  requires that the fair value of a liability  for an asset  retirement
obligation  be  recognized in the period in which it is incurred if a reasonable
estimate of fair value can be made,  and that the  associated  asset  retirement
costs be capitalized as part of the carrying amount of the long-lived asset. The
Statement  is  effective  for  financial  statements  issued  for  fiscal  years
beginning  after June 15, 2002. As a result of the adoption of SFAS No. 143, CFP
was required to recognize a liability of $2,039,  a net asset of $259 and a loss

                                       11

from the cumulative  effect of a change in accounting  principle of $1,780 as of
January 1, 2003.  Annual  depreciation  and  accretion  expense  resulting  from
adoption of SFAS No. 143 is estimated to be $218.

In January 2003, the FASB issued  Interpretation  No. 46, (FIN 46) Consolidation
of  Variable  Interest   Entities,   an  interpretation  of  ARB  No.  51.  This
Interpretation  addresses the consolidation by business  enterprises of variable
interest  entities  as defined in the  Interpretation.  The  Interpretation  was
originally  intended to be applied immediately to variable interests in variable
interest  entities  created after January 31, 2003, and in the first fiscal year
or interim  period  beginning  after June 15,  2003 to  enterprises  that hold a
variable interest in variable interest entities created before February 1, 2003.
On September  17,  2003,  the FASB  instructed  the FASB staff to prepare a FASB
Staff Position to defer the effective date of Interpretation 46 until the end of
the first interim or annual period ending after  December 15, 2003,  for certain
interests held by a public entity in certain variable interest entities. At that
FASB meeting, the FASB also decided to address proposed  modifications to FIN 46
in an  Interpretation  of that  document.  Those  modifications  would alter how
companies  identify  variable  interest entities and modify the determination of
which party should consolidate them (the primary beneficiary). The effect of the
application of this  Interpretation  on CFP's financial  statements is currently
being evaluated and the expected impact has not yet been determined.

                                       12
<PAGE>
<TABLE>
<CAPTION>
                                     COSO ENERGY DEVELOPERS
                               UNAUDITED CONDENSED BALANCE SHEETS
                                     (Dollars in thousands)


                                                                 September 30,       December 31,
                                                                     2003               2002
                                                                                       (Note)
<S>                                                              <C>                 <C>
Assets:
   Cash and cash equivalents ................................     $  15,651           $   1,423
   Restricted cash and investments ..........................         7,244               6,646
   Accounts receivable, net .................................        10,947               6,681
   Prepaid expenses and other assets ........................         1,613               1,370
   Amounts due from related parties .........................           437                 421
   Property, plant and equipment, net .......................       132,402             135,853
   Power purchase agreement, net ............................        16,561              17,365
   Investment in Coso Transmission Line Partners.............         2,584               2,653
   Advances to New CLPSI Company, LLC .......................           556                 674
   Deferred financing costs, net ............................         1,594               1,785
                                                                    -------             -------

                                                                  $ 189,589           $ 174,871
                                                                    =======             =======

Liabilities and Partners' Capital:
   Accounts payable and accrued liabilities..................     $   2,037           $   1,644
   Amounts due to related parties............................        28,958              26,317
   Other liabilities.........................................         1,638                 432
   Project loans.............................................        87,853              89,875
                                                                    -------             -------
                                                                    120,486             118,268
Partners' capital............................................        69,103              56,603
                                                                     ------              ------

                                                                  $ 189,589           $ 174,871
                                                                    =======             =======
</TABLE>




Note:The condensed  balance sheet at December 31, 2002 has been derived from the
     audited  financial  statements at that date but does not include all of the
     information  and  footnotes  required by  accounting  principles  generally
     accepted in the United States of America for complete financial statements.





     See accompanying notes to the unaudited condensed financial statements









                                       13
<PAGE>
<TABLE>
<CAPTION>
                                                     COSO ENERGY DEVELOPERS
                                          UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
                                                     (Dollars in thousands)


                                                       Three-Months        Three-Months        Nine-Months        Nine-Months
                                                           Ended               Ended              Ended              Ended
                                                       September 30,       September 30,      September 30,      September 30,
                                                           2003                2002               2003               2002
<S>                                                    <C>                 <C>                <C>                <C>
Revenue:
   Energy revenues..................................     $   8,220           $   8,589           $ 24,453           $ 56,724
   Capacity revenues................................         8,002               8,002             12,713             14,537
                                                            ------              ------             ------             ------
          Total revenue.............................        16,222              16,591             37,166             71,261

Operating expenses:
   Plant operating expenses.........................         3,421               3,328              9,185              8,581
   Royalty expense..................................         1,339               1,482              2,028              2,157
   Depreciation and amortization....................         2,371               3,903              7,055             12,135
                                                             -----               -----             ------             ------
          Total operating expenses..................         7,131               8,713             18,268             22,873

          Operating income..........................         9,091               7,878             18,898             48,388

Other (income)/expenses:
   Interest and other income........................          (236)               (267)              (749)            (1,169)
   Interest expense.................................         1,998               2,120              6,032              6,477
   Amortization of deferred financing costs.........            64                  64                191                191
                                                             -----               -----              -----              -----
          Total other expenses......................         1,826               1,917              5,474              5,499
                                                             -----               -----              -----              -----

Income before cumulative effect of change
   in accounting principle..........................         7,265               5,961             13,424             42,889

Cumulative effect of change in
   accounting principle.............................           ---                 ---                924                ---
                                                             -----               -----             ------             ------

           Net income...............................     $   7,265           $   5,961           $ 12,500           $ 42,889
                                                             =====               =====             ======             ======
</TABLE>







     See accompanying notes to the unaudited condensed financial statements









                                       14

<PAGE>
<TABLE>
<CAPTION>
                                     COSO ENERGY DEVELOPERS
                          UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
                                     (Dollars in thousands)


                                                                  Nine-Months          Nine-Months
                                                                     Ended                Ended
                                                                 September 30,        September 30,
                                                                     2003                 2002
<S>                                                              <C>                  <C>

Net cash provided by (used in) operating activities.....          $  19,366            $  41,610
Net cash provided by (used in) investing activities.....             (3,116)              (1,674)
Net cash provided by (used in) financing activities.....             (2,022)             (29,520)
                                                                     ------               ------
Net change in cash and cash equivalents.................          $  14,228            $  10,416
                                                                     ======               ======
Supplemental cash flow disclosure:
     Cash paid for interest.............................          $   4,067            $   4,355
                                                                     ======               ======
</TABLE>







     See accompanying notes to the unaudited condensed financial statements









                                       15

<PAGE>

                             COSO ENERGY DEVELOPERS
              NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS
                             (Dollars in thousands)


(1)      Organization and Operation

Coso Energy Developers (CED), a general partnership, is engaged in the operation
of a 80 MW power generation facility located at the Coso Hot Springs, China Lake
California.  CED sells all electricity  produced to Southern  California  Edison
(Edison) under a power purchase contract that expires in 2019.

(2)      Basis of Presentation

The accompanying  unaudited condensed financial statements have been prepared in
accordance with accounting principles generally accepted in the United States of
America for interim financial information.  Accordingly, certain information and
footnote  disclosures  normally  included in  financial  statements  prepared in
accordance with accounting principles generally accepted in the United States of
America  have been  condensed  or omitted  pursuant  to such  rules.  Management
believes that the disclosures are adequate to make the information presented not
misleading when read in conjunction  with the audited  financial  statements and
the notes thereto for the year ended December 31, 2002.

The financial information herein presented reflects all adjustments,  consisting
only of normal recurring  adjustments,  which are, in the opinion of management,
necessary for a fair statement of the results for interim periods presented. The
results for the interim periods are not necessarily  indicative of results to be
expected  for  the  full  year.  CED  has  experienced   significant   quarterly
fluctuations  in  operating  results and it expects that these  fluctuations  in
energy revenues, expenses and net income will continue.

(3)      Accounts Receivable and Revenue Recognition

Due to the uncertainty  surrounding Edison's ability to make payment on past due
amounts,  collection  was not  reasonably  assured  and  CED had not  recognized
revenue  from  Edison for energy  delivered  during the period  November 1, 2000
through  March 26, 2001.  On March 1, 2002,  Edison  reached  certain  financing
milestones and paid CED for revenue generated, but not recognized for the period
November 1, 2000 through March 26, 2001.  During the nine-months ended September
30, 2002,  CED  recognized  revenue for energy  delivered  from November 1, 2000
through March 26, 2001 of $37.1 million.

(4)     Reclassifications

Certain  balances  in prior  years  have been  reclassified  to  conform  to the
presentation adopted in the current year.

(5)      New Accounting Pronouncements

In June 2001,  the  Financial  Accounting  Standards  Board (FASB)  Statement of
Financial  Accounting  Standards (SFAS) No. 143, Accounting for Asset Retirement
Obligations.  This Statement  addresses  financial  accounting and reporting for
obligations associated with the retirement of tangible long-lived assets and the
associated asset  retirement costs and amends SFAS No. 19, Financial  Accounting
and Reporting by Oil and Gas Producing  Companies.  The Statement  requires that
the fair value of a liability for an asset  retirement  obligation be recognized
in the period in which it is incurred if a reasonable estimate of fair value can
be made, and that the associated  asset  retirement costs be capitalized as part
of the carrying amount of the long-lived  asset.  The Statement is effective for
financial statements issued for fiscal years beginning after June 15, 2002. As a
result  of the  adoption  of SFAS No.  143,  CED was  required  to  recognize  a
liability of $1,122,  a net asset of $198 and a loss from the cumulative  effect
of a change in  accounting  principle  of $924 as of  January  1,  2003.  Annual
depreciation  and accretion  expense  resulting from adoption of SFAS No. 143 is
estimated to be $120.

                                       16

In January 2003, the FASB issued  Interpretation  No. 46, (FIN 46) Consolidation
of  Variable  Interest   Entities,   an  interpretation  of  ARB  No.  51.  This
Interpretation  addresses the consolidation by business  enterprises of variable
interest  entities  as defined in the  Interpretation.  The  Interpretation  was
originally  intended to be applied immediately to variable interests in variable
interest  entities  created after January 31, 2003, and in the first fiscal year
or interim  period  beginning  after June 15,  2003 to  enterprises  that hold a
variable interest in variable interest entities created before February 1, 2003.
On September  17,  2003,  the FASB  instructed  the FASB staff to prepare a FASB
Staff Position to defer the effective date of Interpretation 46 until the end of
the first interim or annual period ending after  December 15, 2003,  for certain
interests held by a public entity in certain variable interest entities. At that
FASB meeting, the FASB also decided to address proposed  modifications to FIN 46
in an  Interpretation  of that  document.  Those  modifications  would alter how
companies  identify  variable  interest entities and modify the determination of
which party should consolidate them (the primary beneficiary). The effect of the
application of this  Interpretation  on CED's financial  statements is currently
being evaluated and the expected impact has not yet been determined.

                                       17
<PAGE>
<TABLE>
<CAPTION>
                                             COSO POWER DEVELOPERS
                                      UNAUDITED CONDENSED BALANCE SHEETS
                                            (Dollars in thousands)


                                                                                September 30,       December 31,
                                                                                    2003               2002
                                                                                                      (Note)

<S>                                                                               <C>                 <C>
Assets:
   Cash and cash equivalents................................................      $    9,537          $      824
   Restricted cash and investments..........................................           9,492              10,855
   Accounts receivable, net.................................................          12,177               7,234
   Prepaid expenses and other assets........................................           1,214               1,111
   Amounts due from related parties.........................................           6,251               5,902
   Property, plant and equipment, net.......................................         115,550             116,192
   Power purchase agreement, net............................................          17,930              20,026
   Investment in Coso Transmission Line Partners............................           3,177               3,260
   Advances to New CLPSI Company, LLC.......................................           1,870               1,911
   Deferred financing costs, net............................................           1,356               1,519
                                                                                     -------             -------

                                                                                  $  178,554          $  168,834
                                                                                     =======             =======


Liabilities and Partners' Capital:
   Accounts payable and accrued liabilities.................................      $    3,158          $    1,948
   Amounts due to related parties...........................................           3,135                 758
   Other liabilities........................................................           2,291                 366
   Project loans............................................................          76,739              80,401
                                                                                      ------              ------
                                                                                      85,323              83,473
Partners' capital...........................................................          93,231              85,361
                                                                                      ------              ------

                                                                                  $  178,554          $  168,834
                                                                                     =======             =======
</TABLE>





Note:The condensed  balance sheet at December 31, 2002 has been derived from the
     audited  financial  statements at that date but does not include all of the
     information  and  footnotes  required by  accounting  principles  generally
     accepted in the United States of America for complete financial statements.





     See accompanying notes to the unaudited condensed financial statements









                                       18


<PAGE>
<TABLE>
<CAPTION>
                                                        COSO POWER DEVELOPERS
                                            UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
                                                       (Dollars in thousands)


                                                         Three-Months        Three-Months        Nine-Months         Nine-Months
                                                             Ended               Ended              Ended               Ended
                                                         September 30,       September 30,      September 30,       September 30,
                                                             2003                2002               2003                2002
<S>                                                      <C>                 <C>                <C>                 <C>
Revenue:
   Energy revenues..................................      $   8,466           $   7,791          $  23,064           $  55,428
   Capacity revenues................................          8,047               8,047             12,786              14,603
                                                             ------              ------             ------              ------
          Total revenue.............................         16,513              15,838             35,850              70,031

Operating expenses:
   Plant operating expenses.........................          2,401               2,918              7,249               7,408
   Royalty expense..................................          2,655               2,588              5,830               5,337
   Depreciation and amortization....................          2,527               1,848              7,787               9,507
                                                              -----               -----             ------              ------
          Total operating expenses..................          7,583               7,354             20,866              22,252

          Operating income..........................          8,930               8,484             14,984              47,779

Other (income)/expenses:
   Interest and other income........................            (44)               (237)              (177)               (888)
   Interest expense.................................          1,745               1,870              5,351               5,683
   Amortization of deferred financing costs.........             55                  55                163                 163
                                                              -----               -----              -----               -----
          Total other expenses......................          1,756               1,688              5,337               4,958
                                                              -----               -----              -----               -----
Income before cumulative effect of change
    in accounting principle.........................          7,174               6,796              9,647              42,821

Cumulative effect of change in
   accounting principle.............................            ---                 ---              1,777                 ---
                                                              -----               -----              -----              ------

          Net income................................      $   7,174           $   6,796          $   7,870           $  42,821
                                                              =====               =====              =====              ======
</TABLE>








     See accompanying notes to the unaudited condensed financial statements









                                       19

<PAGE>
<TABLE>
<CAPTION>
                                          COSO POWER DEVELOPERS
                              UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
                                         (Dollars in thousands)


                                                                          Nine-Months          Nine-Months
                                                                             Ended                Ended
                                                                         September 30,        September 30,
                                                                             2003                 2002
<S>                                                                      <C>                  <C>

  Net cash provided by (used in) operating activities.............        $  15,547            $  26,138
  Net cash provided by (used in) investing activities.............           (3,172)              (1,337)
  Net cash provided by (used in) financing activities.............           (3,662)             (17,775)
                                                                              -----               ------
  Net change in cash and cash equivalents.........................        $   8,713            $   7,026
                                                                              =====               ======

  Supplemental cash flow disclosure:
         Cash paid for interest...................................        $   3,638            $   3,810
                                                                              =====               ======
</TABLE>










     See accompanying notes to the unaudited condensed financial statements









                                       20

<PAGE>

                              COSO POWER DEVELOPERS
              NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS
                             (Dollars in thousands)


(1)      Organization and Operation

Coso Power Developers (CPD), a general partnership,  is engaged in the operation
of a 80 MW power generation facility located at the Coso Hot Springs, China Lake
California.  CPD sells all electricity  produced to Southern  California  Edison
(Edison) under a power purchase contract that expires in 2010.

(2)      Basis of Presentation

The accompanying  unaudited condensed financial statements have been prepared in
accordance with accounting principles generally accepted in the United States of
America for interim financial information.  Accordingly, certain information and
footnote  disclosures  normally  included in  financial  statements  prepared in
accordance with accounting principles generally accepted in the United States of
America  have been  condensed  or omitted  pursuant  to such  rules.  Management
believes that the disclosures are adequate to make the information presented not
misleading when read in conjunction  with the audited  financial  statements and
the notes thereto for the year ended December 31, 2002.

The financial information herein presented reflects all adjustments,  consisting
only of normal recurring  adjustments,  which are, in the opinion of management,
necessary for a fair statement of the results for interim periods presented. The
results for the interim periods are not necessarily  indicative of results to be
expected  for  the  full  year.  CPD  has  experienced   significant   quarterly
fluctuations  in  operating  results and it expects that these  fluctuations  in
energy revenues, expenses and net income will continue.

(3)      Accounts Receivable and Revenue Recognition

Due to the uncertainty  surrounding Edison's ability to make payment on past due
amounts,  collection  was not  reasonably  assured  and  CPD had not  recognized
revenue  from  Edison for energy  delivered  during the period  November 1, 2000
through  March 26, 2001.  On March 1, 2002,  Edison  reached  certain  financing
milestones and paid CPD for revenue generated, but not recognized for the period
November 1, 2000 through March 26, 2001.  During the nine-months ended September
30, 2002,  CPD  recognized  revenue for energy  delivered  from November 1, 2000
through March 26, 2001 of $38.0 million.

(4)      Reclassifications

Certain  balances  in prior  years  have been  reclassified  to  conform  to the
presentation adopted in the current year.

(5)      New Accounting Pronouncements

In June 2001, the Financial  Accounting  Standards Board (FASB) issued Statement
of  Financial   Accounting  Standards  (SFAS)  No.  143,  Accounting  for  Asset
Retirement  Obligations.  This  Statement  addresses  financial  accounting  and
reporting for obligations  associated with the retirement of tangible long-lived
assets  and the  associated  asset  retirement  costs and  amends  SFAS No.  19,
Financial  Accounting  and  Reporting by Oil and Gas  Producing  Companies.  The
Statement  requires that the fair value of a liability  for an asset  retirement
obligation  be  recognized in the period in which it is incurred if a reasonable
estimate of fair value can be made,  and that the  associated  asset  retirement
costs be capitalized as part of the carrying amount of the long-lived asset. The
Statement  is  effective  for  financial  statements  issued  for  fiscal  years
beginning  after June 15, 2002. As a result of the adoption of SFAS No. 143, CPD
was required to recognize a liability of $2,131,  a net asset of $354 and a loss
from the cumulative  effect of a change in accounting  principle of $1,777 as of
January 1, 2003.  Annual  depreciation  and  accretion  expense  resulting  from
adoption of SFAS No. 143 is estimated to be $334.

                                       21

In January 2003, the FASB issued  Interpretation  No. 46, (FIN 46) Consolidation
of  Variable  Interest   Entities,   an  interpretation  of  ARB  No.  51.  This
Interpretation  addresses the consolidation by business  enterprises of variable
interest  entities  as defined in the  Interpretation.  The  Interpretation  was
originally  intended to be applied immediately to variable interests in variable
interest  entities  created after January 31, 2003, and in the first fiscal year
or interim  period  beginning  after June 15,  2003 to  enterprises  that hold a
variable interest in variable interest entities created before February 1, 2003.
On September  17,  2003,  the FASB  instructed  the FASB staff to prepare a FASB
Staff Position (FSP) to defer the effective date of  Interpretation 46 until the
end of the first interim or annual period  ending after  December 15, 2003,  for
certain interests held by a public entity in certain variable interest entities.
At that FASB meeting, the FASB also decided to address proposed modifications to
FIN 46 in an Interpretation of that document.  Those  modifications  would alter
how companies  identify  variable interest entities and modify the determination
of which party should consolidate them (the primary beneficiary).  The effect of
the  application  of  this  Interpretation  on  CPD's  financial  statements  is
currently being evaluated and the expected impact has not yet been determined.

                                       22
<PAGE>
ITEM 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operations

     Except for financial information contained herein, the matters discussed in
this quarterly report may be considered  forward-looking  statements  within the
meaning of Section 27A of the  Securities  Act of 1933, as amended,  and Section
21E of the Securities Exchange Act of 1934, as amended,  and subject to the safe
harbor created by the Securities  Litigation Reform Act of 1995. Such statements
include  declarations  regarding the intent,  belief or current  expectations of
Caithness Coso Funding Corp. ("Funding Corp."), Coso Finance Partners ("the Navy
I Partnership"),  Coso Energy Developers ("the BLM Partnership"), and Coso Power
Developers ("the Navy II Partnership"),  collectively, (the "Coso Partnerships")
and their respective management. Such statements may be identified by terms such
as expected,  anticipated,  may,  will,  believe or other terms or variations of
such words.  Any such  forward-looking  statements  are not guarantees of future
performance  and  involve a number of risks and  uncertainties;  actual  results
could differ materially from those indicated by such forward-looking statements.
Among the important factors that could cause actual results to differ materially
from those  indicated  by such  forward-looking  statements  include but are not
limited to: (i) risks relating to the  uncertainties  in the  California  energy
market, (ii) the financial viability of Southern California Edison,  ("Edison"),
(iii) the  information is of a preliminary  nature and may be subject to further
adjustment,  (iv) risks  related to the operation of power plants (v) the impact
of avoided  cost  pricing  along  with other  pricing  variables,  (vi)  general
operating risks, including resource availability and regulatory oversight, (vii)
the dependence on third parties  including public and private  entities,  (viii)
changes in  government  regulation,  (ix) the  effects of  competition,  (x) the
dependence on senior  management,  (xi) fluctuations in quarterly results due in
part to  seasonality,  (xii) effects of September 11, 2001,  including U.S. Navy
activity and (xiii) the alleged manipulation of the California energy market.

General

     Each  Coso  Partnership  owns  an  80MW  geothermal  power  plant,  and its
respective  transmission  lines,  wells,  gathering  systems  and other  related
facilities.  The Coso  Partnerships  are located  near one another at the United
States  Naval  Air  Weapons  Center  at  China  Lake,  California.  The  Navy  I
Partnership owns Navy I and its related facilities. The BLM Partnership owns BLM
and its related facilities. The Navy II Partnership owns Navy II and its related
facilities.  Affiliates of Caithness  Corporation  and CalEnergy  Company,  Inc.
("CalEnergy"), which is now known as MidAmerican Energy Holdings Company, formed
the Coso  Partnerships in the 1980s to develop,  construct,  own and operate the
Coso Partnerships.  On February 25, 1999, Caithness  Acquisition  Company,  LLC,
(CAC) purchased all of CalEnergy's interests in the Coso Partnerships.

     Each Coso partnership  sells 100% of the electrical energy generated at its
plant to Edison under a long-term Standard Offer No.4 power purchase  agreement.
Each power purchase agreement expires after the final maturity date of the 9.05%
Series B Senior Secured Notes issued by Funding Corp.

     Each Coso partnership is entitled to the following payments under its power
purchase agreement:

*    Capacity payments for being able to produce  electricity at certain levels.
     Capacity  payments  are fixed  throughout  the life of each power  purchase
     agreement;

*    Capacity  bonus  payments  if the  Coso  partnership  is  able  to  produce
     electricity  above a specified  level.  The maximum  annual  capacity bonus
     payment  available is also fixed throughout the life of each power purchase
     agreement; and

*    Energy  payments  which are based on the  amount  of  electricity  the Coso
     Partnership's plant actually produces.

     Energy  payments were fixed for the first ten years of firm operation under
each power purchase  agreement.  After the first ten years of firm operation and
until  January 1, 2002,  Edison  made energy  payments to the Coso  Partnerships
based on its avoided cost of energy. Edison's avoided cost of energy is Edison's
cost to generate  electricity if Edison were to produce it itself or buy it from
another power producer rather than buy it from the Coso Partnerships.  The fixed
energy price period expired in August 1997 for the Navy I Partnership,  in March
1999 for the BLM Partnership and in January 2000 for the Navy II Partnership.

                                       23

     Edison entered into an agreement  ("Agreement")  with the Coso Partnerships
on June 19, 2001 that addressed  renewable energy pricing and issues  concerning
California's  energy crisis.  The  Agreement,  which was amended on November 30,
2001,  established May 1, 2002 as the date the Coso Partnerships began receiving
a fixed energy rate of 5.37 cents per kWh for five (5) years in lieu of the rate
calculated  based on the avoided  cost of energy.  Subsequent  to the  five-year
period, Edison will be required to make energy payments to the Coso Partnerships
based on its avoided  cost of energy  until each  partnership's  power  purchase
agreement expires.  The power purchase agreement for the Navy I Partnership will
expire in August 2011, the power purchase agreement for the BLM Partnership will
expire  in  March  2019,  and the  power  purchase  agreement  for  the  Navy II
Partnership  will expire in January 2010.  Estimates of Edison's  future avoided
cost of energy may vary  significantly  and it is not  possible to predict  with
accuracy the likely level of future avoided cost of energy prices.

     From January 1, 2002 through April 30, 2002, the Coso Partnerships  elected
to receive from Edison a fixed  energy rate of 3.25 cents per kWh.  Starting May
1, 2002,  the Coso  Partnerships  received  5.37 cents per kWh,  pursuant to the
agreement discussed above.

     In 1994, the Coso Partnerships  implemented a steam-sharing  program, under
the Coso Geothermal Exchange Agreement. The purpose of the steam-sharing program
is to enhance the management of the Coso geothermal resource and to optimize the
resource's overall benefits to the Coso Partnerships by transferring steam among
the  Coso  Partnerships.  Under  the  steam  sharing  program,  the  partnership
receiving the steam transfer  splits revenue earned from  electricity  generated
with the partnership that transferred the steam.

     The Coso  Partnerships  are required to make  royalty  payments to the U.S.
Navy and the Bureau of Land  Management.  The Navy I Partnership  pays a royalty
for Unit I through  reimbursement  of  electricity  supplied to the U.S. Navy by
Edison from  electricity  generated at the Navy I plant.  The  reimbursement  is
based on a  pricing  formula  that is  included  in the U.S.  Navy  Contract  as
amended.  This formula is primarily based on the tariff rates charged by Edison,
which were  increased  in 2001 by the  California  Public  Utilities  Commission
(CPUC), and is subject to future revision.  On July 10, 2003, the CPUC adopted a
settlement  between  Edison and other  parties to lower  retail  electric  rates
effective  as of August 1, 2003.  These rates are in effect for one year,  after
which new rates will be established in accordance with CPUC guidelines.  Indices
utilized in the calculation of the royalties under the Navy I Partnership Unit 1
contract remained unchanged  historically based on an agreement between the U.S.
Navy  and  the  Navy  I   Partnership.   In  November  2001  and  October  2002,
modifications to the calculation of the reimbursement  pricing formula were made
to the U.S. Navy Contract  resulting in a reduction of accrued royalties of $6.5
million and $1.3 million for those periods, respectively, which was agreed to by
the U.S.  Navy.  The parties have  currently  agreed to a replacement  index and
true-up  calculation in favor of the Navy I Partnership.  For Units 2 and 3, the
Navy I Partnership's royalty expense paid to the U.S. Navy is a fixed percentage
of  electricity  sales at 15% of  revenue  received  by the  Navy I  Partnership
through 2003 and will increase to 20% from 2004 through  2009. In addition,  the
Navy I  Partnership  is required to pay the U.S.  Navy $25.0 million in December
2009, the date its contract  expires.  The payment is secured by funds placed on
deposit monthly,  which funds plus accrued interest are anticipated to aggregate
$25.0 million by the  expiration  date of the contract.  Currently,  the monthly
amount  deposited  is  approximately  $60,000.  The BLM  Partnership  pays a 10%
royalty  to the  Bureau  of Land  Management  based  on the net  value  of steam
produced.  The Navy II  partnership  pays a royalty to the U.S.  Navy based on a
fixed  percentage of  electricity  sales to Edison.  The royalty rate was 10% of
electricity  sales through 1999,  and increased to 18% for 2000 through 2004 and
will  increase to 20% from 2005 through the end of the contract  term.  The Coso
Partnerships  also pay other royalties,  at various rates which in the aggregate
are not material.

     Funding Corp is a special purpose corporation and a wholly owned subsidiary
of the Coso  Partnerships.  It was formed for the  purpose of issuing the senior
secured  notes  (Notes)  on behalf of the Coso  Partnerships  who have  jointly,
severally, and unconditionally guaranteed repayment of the Notes.

     On May 28, 1999,  Funding Corp.  issued $110.0  million of 6.80% Notes that
were due in 2001,  and were paid off on December 15, 2001, and $303.0 million of
9.05%  Notes due in 2009.  The  proceeds  from the Notes were loaned to the Coso
Partnerships  and are payable to Funding  Corp from  payments of  principal  and
interest on the Notes. Funding Corp. does not conduct any other operations apart
from serving as the issuer of the Notes.

                                       24

     Under the  depository  agreement  with the trustee for the Notes,  the Coso
Partnerships  established  accounts with a depository and pledged those accounts
as security for the benefit of the holders of the Notes.  All amounts  deposited
with the depository are, at the direction of the Coso Partnerships,  invested by
the depository in permitted investments. All revenues or other proceeds actually
received  by the Coso  Partnerships  are  deposited  in a  revenue  account  and
withdrawn upon receipt by the depository of a certificate from the relevant Coso
Partnerships  detailing  the  amounts  to be paid from  funds in its  respective
revenue account.

     Periodic  increases in natural gas prices and imbalances between supply and
demand,  among other  factors,  have at times led to  significant  increases  in
wholesale  electricity  prices in California.  During those periods,  Edison had
fixed  tariffs with their retail  customers  that were  significantly  below the
wholesale   prices  it  paid  in   California.   This  resulted  in  significant
under-recoveries  by Edison of its  electricity  purchase  costs. On January 16,
2001,  Edison announced that it was temporarily  suspending  payments for energy
provided,  including  the energy  provided by the Coso  Partnerships,  pending a
permanent solution to its liquidity crisis.  This cash flow shortfall  adversely
affected Edison's liquidity and in turn it did not pay the Coso Partnerships for
energy  delivered  from November 2000 through March 26, 2001. As of December 31,
2001, the Coso Partnerships were unable to determine the time frame during which
any  future  payments  would be  received.  Due to the  uncertainty  surrounding
Edison's  ability  to make  payment  on past  due  amounts,  collection  was not
reasonably  assured  and the  Navy  I,  BLM and  Navy  II  Partnerships  had not
recognized   revenue  of  $22.0  million,   $21.8  million  and  $22.7  million,
respectively, from Edison for Energy delivered during the period January 1, 2001
through March 26, 2001.

     Pursuant  to a CPUC  order,  Edison  resumed  making  payments  to the Coso
Partnerships  beginning with power generated on March 27, 2001. Edison also made
a payment equal to 10% of the unpaid  balance for power  generated from November
1, 2000 to March 26, 2001, and paid interest on the outstanding amount at 7% per
annum.  That payment was made pursuant to the Agreement  between  Edison and the
Coso  Partnerships  described  above.  On March 1, 2002,  Edison reached certain
financing  milestones  and paid  Navy I, BLM and  Navy II $37.3  million,  $37.1
million  and  $38.0  million,   respectively,  for  revenue  generated  but  not
recognized for the period November 1, 2000 through March 26, 2001.

     On  September  23, 2002,  the United  States Court of Appeals for the Ninth
Circuit issued an opinion and order on appeal from a district court's stipulated
judgment,  which affirmed the stipulated judgment in part and referred questions
based on California state law to the California Supreme Court. The appeals court
stated that if the  Agreement  violated  California  state law, then the appeals
court would be required to void the stipulated judgment.  The California Supreme
Court has accepted  the Ninth  Circuit  Court of Appeals  request to address the
issues referred to it in the September 23, 2002 ruling.  The California  Supreme
Court  found  that  the   stipulated   judgment  did  not  violate  state  laws.
Consequently,  the Agreement  remains in full force and effect and it is unknown
if any additional appeals are planned.

     Edison  filed a  petition  for a writ of  review  of a  January  2001  CPUC
decision,  claiming  that the  "floor"  line loss  factor of 0.95 for  renewable
generators  violated the Public Utility Regulatory Policies Act of 1978 (PURPA).
Subsequently,  the  California  Court of Appeals issued a decision on August 20,
2002 in response to the writs  affirming the January 2001 CPUC decision,  except
for the 0.95  "floor",  which it rejected as an abuse of discretion by the CPUC.
While this matter was appealed to the California Supreme Court, the petition for
review was denied.  The Coso  Partnerships  are currently  evaluating  potential
actions to redress this issue.  Their Agreements set the line loss factor at 1.0
for all energy sold between May 2002 through April 2007.  After April 2007,  the
Coso  Partnerships  will have a line loss  factor of less than 1.0,  effectively
decreasing revenues if Edison's challenge to the CPUC ruling stands.

     The  Coso  Partnerships   cannot  predict  whether  any  subsequent  action
regarding this matter will be successful.


Capacity Utilization

     For purposes of consistency in financial  presentation,  the plant capacity
factor for each of the Coso  Partnerships is based on a nominal  capacity amount
of 80MW (240MW in the aggregate).  The Coso  Partnerships have a gross operating
capacity  that  allows  for the  production  of  electricity  in excess of their
nominal capacity  amounts.  Utilization of this operating margin is based upon a
number of factors and can be expected to vary  throughout  the year under normal
operating conditions.

                                       25

     The following  data includes the operating  capacity  factor,  capacity and
electricity  production  (in kWh) for each  Coso  Partnership  on a  stand-alone
basis:
<TABLE>
<CAPTION>
                                                       Three-Months Ended                  Nine-Months Ended
                                                          September 30                       September 30

                                                      2003            2002               2003            2002
                                                      ----            ----               ----            ----
<S>                                                      <C>             <C>                <C>             <C>
Navy I Partnership (stand alone)
  Operating capacity factor                          102.6%          104.8%             102.4%          104.6%
  Capacity (MW) (average)                             82.05           83.81              81.93           83.69
  kWh produced (000s)                                181,165         185,058            536,809         548,312

BLM Partnership (stand alone)
  Operating capacity factor                           88.2%           92.6%              88.5%           93.5%
  Capacity (MW) (average)                             70.59           74.09              70.76           74.83
  kWh produced (000s)                                155,865         163,586            463,627         490,280

Navy II Partnership (stand alone)
  Operating capacity factor                          106.9%           96.4%             100.6%           99.8%
  Capacity (MW) (average)                             85.53           77.13              80.47           79.86
  kWh produced (000s)                                188,849         170,295            527,250         523,261
</TABLE>

     Total energy  production for the Navy II Partnership  for the  three-months
ended  September  30,  2003,  as compared to the same period in 2002,  increased
10.9%. The increase was from an effort to increase  production overall, in which
the  Coso  Partnerships  have  implemented  a  capital  program  including  well
workovers   on  various   wells  to  regain   production   limited  by  wellbore
obstructions.  These efforts, along with modifications to steam-field piping and
gas removal systems,  improved  production at the Navy II Partnership during the
second and third quarters of 2003.

     Total energy  production for the BLM Partnership for the nine-months  ended
September 30, 2003, as compared to the same period in 2002,  decreased 5.4%. The
decrease was primarily due to a decline in steam, which management is attempting
to remediate  through well  maintenance and capital  improvements, including the
addition  of  a  new   production   well  and  additional   steam-field   piping
modifications.   The  BLM  Partnership  along  with  the  Navy  I  and  Navy  II
Partnerships  expect to further enhance the steam  utilization and efficiency of
the projects through a turbine  enhancement  program and additional  steam-field
piping modifications.  With respect to the reservoir,  an injection augmentation
program,  aimed at improving reservoir pressure and minimizing resource decline,
is currently in the engineering  design phase.  The funds necessary to implement
the capital improvement program is available from reserves established under the
Notes  and from  excess  cash flow  generated  after  debt  service  during  the
nine-month period ending September 30, 2003.

Results of Operations for the three and nine-months ended September 30, 2003 and
2002

     The following  discusses the results of operations of the Coso Partnerships
for the three and nine-months  ended September 30, 2003 and 2002 (dollar amounts
in tables are in thousands, except per kWh data):

                                       26

Revenue
<TABLE>
<CAPTION>
                                   Three-Months              Three-Months               Nine-Months               Nine-Months
                                       Ended                     Ended                     Ended                     Ended
                                September 30, 2003        September 30, 2002        September 30, 2003        September 30, 2002
<S>                              <C>    <C>                <C>    <C>                <C>    <C>                <C>    <C>
                                  $     Cents/kWh           $     Cents/kWh           $     Cents/kWh           $     Cents/kWh
                                  -     ---------           -     ---------           -     ---------           -     ---------
Total Operating Revenues
  Navy I Partnership            19,833     10.9           19,761     10.7           47,709      8.9           79,587     14.5
  BLM Partnership               16,222     10.4           16,591     10.1           37,166      8.0           71,261     14.5
  Navy II Partnership           16,513      8.7           15,838      9.3           35,850      6.8           70,031     13.4

Capacity & Capacity Bonus
Revenues
  Navy I Partnership             8,190      4.5            8,190      4.4           13,011      2.4           14,904      2.7
  BLM Partnership                8,002      5.1            8,002      4.9           12,713      2.7           14,537      3.0
  Navy II Partnership            8,047      4.3            8,047      4.7           12,786      2.4           14,603      2.8

Energy Revenues,
including steam transfers
  Navy I Partnership            11,643      6.4           11,571      6.3           34,698      6.5           64,683     11.8
  BLM Partnership                8,220      5.3            8,589      5.3           24,453      5.3           56,724     11.6
  Navy II Partnership            8,466      4.5            7,791      4.6           23,064      4.4           55,428     10.6
</TABLE>

     Total  energy   revenues,   including  steam  transfers  for  the  Navy  II
Partnership  for the  three-months  ended September 30, 2003, as compared to the
same period in 2002,  increased  9.0%.  The  increase was  primarily  due to the
increase in energy production discussed above.

     Total operating  revenues,  including steam transfers,  for the Navy I, BLM
and Navy II  Partnerships,  which consist of capacity  payments,  capacity bonus
payments and energy  payments for the  nine-months  ended September 30, 2003, as
compared  to the  same  period  in  2002,  decreased  40.1%,  47.8%  and  48.7%,
respectively.  Capacity and capacity  bonus revenues for each of the Navy I, BLM
and Navy II  Partnerships  for the  nine-months  ended  September  30, 2003,  as
compared  to for the same  period in 2002,  decreased  12.8%,  12.4% and  12.3%,
respectively.  Total energy revenues including steam transfers,  for the Navy I,
BLM and Navy II Partnerships  for the  nine-months  ended September 30, 2003, as
compared  to the  same  period  in  2002,  decreased  46.4%,  56.8%  and  58.3%,
respectively. Each of the Coso Partnership's decreases were primarily due to the
recognition  of  revenues  generated  but not  recognized  for the  period  from
November 1, 2000 through March 26, 2001 discussed  above.  On March 1, 2002, the
Navy I, BLM and Navy II Partnerships  received payment and recognized revenue of
$37.3 million,  $37.1 million and $38.0 million,  respectively.  These decreases
were partially offset by the increase in the fixed energy rate to 5.37 cents per
kWh paid during the  nine-months  ended  September  30, 2003, as compared to the
average fixed energy rate of 4.43 cents per kWh for the same period in 2002.


Plant Operations
<TABLE>
<CAPTION>
                              Three-Months               Three-Months                Nine-Months                Nine-Months
                                  Ended                      Ended                      Ended                      Ended
                           September 30, 2003         September 30, 2002         September 30, 2003         September 30, 2002
<S>                         <C>    <C>                 <C>    <C>                 <C>    <C>                 <C>    <C>
                             $     Cents/kWh            $     Cents/kWh            $     Cents/kWh            $     Cents/kWh
                             -     ---------            -     ---------            -     ---------            -     ---------
Navy I Partnership         2,291      1.3             2,811      1.5             6,875      1.3             7,379      1.3
BLM Partnership            3,421      2.2             3,328      2.0             9,185      2.0             8,581      1.8
Navy II Partnership        2,401      1.3             2,918      1.7             7,249      1.4             7,408      1.4
</TABLE>

                                       27

     The  Navy I  Partnership's  operating  expenses,  including  operating  and
general  and  administrative  expenses  for  the  three  and  nine-months  ended
September 30, 2003, as compared to the same periods in 2002, decreased 17.9% and
6.8%,  respectively.  The decrease was primarily due to decreased property taxes
and well  maintenance  costs  partially  offset by increased  plant  maintenance
costs.

     The BLM Partnership's  operating expenses,  including operating and general
and  administrative  expenses for the  nine-months  ended September 30, 2003, as
compared to the same period in 2002,  increased 7.0%. The increase was primarily
due to increased well workover and plant maintenance costs,  partially offset by
decreased property taxes.

     The Navy II  Partnership's  operating  expenses,  including  operating  and
general and  administrative  expenses for the  three-months  ended September 30,
2003, as compared to the same period in 2002,  decreased 17.2%. The decrease was
due to decreased  property taxes partially  offset by increased well maintenance
costs.


Royalty Expense
<TABLE>
<CAPTION>
                              Three-Months               Three-Months                Nine-Months                Nine-Months
                                  Ended                      Ended                      Ended                      Ended
                           September 30, 2003         September 30, 2002         September 30, 2003         September 30, 2002
<S>                         <C>    <C>                 <C>    <C>                 <C>    <C>                 <C>    <C>
                             $     Cents/kWh            $     Cents/kWh            $     Cents/kWh            $     Cents/kWh
                             -     ---------            -     ---------            -     ---------            -     ---------
Navy I Partnership         4,982      2.7             5,762      3.1            11,603      2.2            11,393      2.1
BLM Partnership            1,339      0.9             1,482      0.9             2,028      0.4             2,157      0.4
Navy II Partnership        2,655      1.4             2,588      1.5             5,830      1.1             5,337      1.0
</TABLE>

     The  Navy I  Partnership's  royalty  expenses  for the  three-months  ended
September 30, 2003, as compared to the same period in 2002, decreased 13.8%. The
decrease was primarily due to decreased royalties paid for Unit I resulting from
lower retail electric rates paid to Edison by the U.S. Navy discussed above.

     The BLM Partnership's  royalty expenses for the three and nine-months ended
September 30, 2003, as compared to the same periods in 2002, decreased 13.3% and
9.1%,  respectively.  The decreases were  primarily due to decreased  production
partially  offset by an increase in the fixed  energy rate to 5.37 cents per kWh
for the  nine-months  ended  September  30, 2003 from 4.43 cents per kWh for the
nine-months ended September 30, 2002.

     The  Navy II  Partnership's  royalty  expenses  for the  nine-months  ended
September 30, 2003 as compared to the same period in 2002,  increased  9.4%. The
increase was primarily due to increased production and the increase in the fixed
energy rate to 5.37 cents per kWh for the  nine-months  ended September 30, 2003
from 4.43 cents per kWh for the nine-months ended September 30, 2002.


Depreciation and Amortization
<TABLE>
<CAPTION>
                              Three-Months               Three-Months                Nine-Months                Nine-Months
                                  Ended                      Ended                      Ended                      Ended
                           September 30, 2003         September 30, 2002         September 30, 2003         September 30, 2002
<S>                         <C>    <C>                 <C>    <C>                 <C>    <C>                 <C>   <C>
                             $     Cents/kWh            $     Cents/kWh            $     Cents/kWh            $     Cents/kWh
                             -     ---------            -     ---------            -     ---------            -     ---------
Navy I Partnership         2,720      1.5             3,049      1.6             7,997      1.5             8,126      1.5
BLM Partnership            2,371      1.5             3,903      2.4             7,055      1.5            12,135      2.5
Navy II Partnership        2,527      1.3             1,848      1.1             7,787      1.5             9,507      1.8
</TABLE>
                                       28

     The Navy I  Partnership's  depreciation  and  amortization  expense for the
three-months  ended  September 30, 2003, as compared to the same period in 2002,
decreased  10.0%.  The decrease was primarily due to plant overhauls costs being
fully depreciated.

     The BLM Partnership's  depreciation and amortization  expense for the three
and  nine-months  ended  September  30, 2003, as compared to the same periods in
2002, decreased 38.5% and 41.3%, respectively.  The decreases were primarily due
to older well costs being fully depreciated during the second half of 2002.

     The Navy II Partnership's  depreciation  and amortization  expenses for the
three and  nine-months  ended September 30, 2003 as compared to the same periods
in 2002,  increased 38.9% and decreased  17.9%,  respectively.  The increase was
primarily  due to an increase in  capitalized  assets  during that  period.  The
decrease was due to older wells being fully  depreciated  during the second half
of 2002, partially offset by the increase in capitalized assets.


Interest and Other Income
<TABLE>
<CAPTION>
                              Three-Months               Three-Months                Nine-Months                Nine-Months
                                  Ended                      Ended                      Ended                      Ended
                           September 30, 2003         September 30, 2002         September 30, 2003         September 30, 2002
<S>                         <C>    <C>                 <C>    <C>                 <C>    <C>                 <C>    <C>
                             $     Cents/kWh            $     Cents/kWh            $     Cents/kWh            $     Cents/kWh
                             -     ---------            -     ---------            -     ---------            -     ---------
Navy I Partnership           41       0.0               136      0.1               155      0.0             1,655      0.3
BLM Partnership             236       0.2               267      0.2               749      0.2             1,169      0.2
Navy II Partnership          44       0.0               237      0.1               177      0.0               888      0.2
</TABLE>

     The Navy I  Partnership's  interest  and  other  income  for the  three and
nine-months  ended  September 30, 2003, as compared to the same periods in 2002,
decreased  60.0% and 88.2%,  respectively.  The BLM  Partnership's  interest and
other income for the three and nine-months ended September 30, 2003, as compared
to the same periods in 2002, decreased 33.3% and 41.7% respectively. The Navy II
Partnership's  interest  and other  income for the three and  nine-months  ended
September 30, 2003, as compared to the same periods in 2002, decreased 80.0% and
77.8%,  respectively.  These  decreases  were primarily due to a decrease in the
rate of return  on  investments  due to lower  market  rates  for  fixed  income
investments  during  those  periods  in 2003 and  decreased  interest  income on
amounts in arrears, owed by Edison in 2001, that were settled and paid by Edison
on March 1, 2002.


Interest Expense
<TABLE>
<CAPTION>
                              Three-Months               Three-Months                Nine-Months                Nine-Months
                                  Ended                      Ended                      Ended                      Ended
                           September 30, 2003         September 30, 2002         September 30, 2003         September 30, 2002
<S>                         <C>    <C>                 <C>    <C>                 <C>    <C>                 <C>    <C>
                             $     Cents/kWh            $     Cents/kWh            $     Cents/kWh            $     Cents/kWh
                             -     ---------            -     ---------            -     ---------            -     ---------
Navy I Partnership         2,402      1.3             2,668      1.4             7,376      1.4             8,216      1.5
BLM Partnership            1,998      1.3             2,120      1.3             6,032      1.3             6,477      1.3
Navy II Partnership        1,745      0.9             1,870      1.1             5,351      1.0             5,683      1.1
</TABLE>

     The Navy I  Partnership's  interest  expense for the three and  nine-months
ended  September  30, 2003,  as compared to the same periods in 2002,  decreased
11.1% and 9.8%,  respectively.  The BLM  Partnership's  interest expense for the
three and nine-months  ended September 30, 2003, as compared to the same periods
in  2002,  decreased  4.8% and  7.7%,  respectively.  The Navy II  Partnership's
interest  expense for the three and  nine-months  ended  September  30, 2003, as
compared to the same periods in 2002,  decreased  10.5% and 5.3%,  respectively.
These  decreases were due to reductions in the principal  amount  outstanding of
the project loan from Funding Corp.

                                       29

Change in Accounting Principle

     On  January  1,  2003,  as a result  of the  adoption  of SFAS  No.  143 as
described in the notes to the financial statements,  the Navy I, BLM and Navy II
Partnerships  recorded a loss on the  cumulative  effect of change in accounting
principle  in the  amounts  of $1.8  million,  $0.9  million  and $1.8  million,
respectively.


Liquidity and Capital Resources

     Each of the  Navy I  Partnership,  the  BLM  Partnership  and  the  Navy II
Partnership derive  substantially all of their cash flow from Edison under their
power purchase  agreements and from interest  income earned on funds on deposit.
The Coso  Partnerships  have used their cash primarily for capital  expenditures
for power plant  improvements,  resource and operating  costs,  distributions to
partners and payments with respect to the project debt.

     The Coso  Partnerships  ability to meet their  obligations as they come due
will depend upon the ability of Edison to meet its  obligations  under the terms
of the standard offer No. 4 power purchase agreements and the Coso Partnership's
ability to continue to generate electricity.  Edison's shortfall in collections,
coupled  with its near  term  capital  requirements,  materially  and  adversely
affected its liquidity during 2000 and 2001. In resolution of that issue, Edison
settled  with the CPUC on  October  2,  2001,  enabling  it to recover in retail
electric rates its historical shortfall in electric purchase costs. On September
23, 2002,  the United  States Court of Appeals for the Ninth  Circuit  issued an
opinion and order on appeal from the district court's stipulated judgment, which
affirmed  the  stipulated  judgment  in part  and  referred  questions  based on
California  state law to the California  Supreme Court. The appeals court stated
that if the Agreement violated California state law then the appeals court would
be required to void the stipulated  judgment.  The California  Supreme Court has
accepted  the Ninth  Circuit  Court of Appeals  request  to  address  the issues
referred to it in the September 23, 2002 ruling.  The  California  Supreme Court
found that the stipulated judgment did not violate state laws. Consequently, the
Agreement  remains in full force and effect and it is unknown if any  additional
appeals are planned.

     Immediately after the Edison-CPUC  settlement,  Edison and each of the Coso
Partnerships entered into an amendment of their respective Agreement (referenced
above)  pertaining to partial payment and interest payments relating to Edison's
past due  obligations  for the period from  November 1, 2000  through  March 26,
2001.  The Agreement,  as amended,  was approved by the CPUC in January of 2002,
and established the fixed energy rates discussed above and set payment terms for
the past due amounts owed to the Coso  Partnerships by Edison.  Edison's failure
to pay its future  obligations  may have a material  adverse  effect on the Coso
Partnerships  ability to make debt service  payments to Funding  Corp.,  as they
come due under the Funding Corp. notes.

     On March 1, 2002, Edison reached certain financing  milestones and paid the
Coso  Partnerships for revenue  generated but not recognized for the period from
November 1, 2000 through March 26, 2001. In the first quarter of 2002,  the Navy
I, BLM and Navy II Partnerships  recognized  revenue for energy delivered during
that period of $37.3  million,  $37.1 million and $38.0  million,  respectively.
Since,  March 27,  2001  Edison  has been  current  with  payments  for  revenue
generated.

     The  following  table sets  forth a summary of each the Coso  Partnership's
cash flows for the nine-months ended September 30, 2003 and September 30, 2002.

                                       30
<TABLE>
<CAPTION>
                                                                   Nine-Months             Nine-Months
                                                                      Ended                   Ended
                                                                  September 30,           September 30,
                                                                      2003                    2002
<S>                                                                <C>                     <C>
Navy I Partnership (stand alone)
  Net cash provided by (used in) operating activities               $  19,017               $  54,861
  Net cash provided by (used in) investing activities                  (6,051)                 (4,546)
  Net cash provided by (used in) financing activities                  (5,395)                (40,568)
                                                                        -----                  ------
      Net change in cash and cash equivalents                       $   7,571               $   9,747
                                                                        =====                  ======

BLM Partnership (stand alone)
  Net cash provided by (used in) operating activities               $  19,366               $  41,610
  Net cash provided by (used in) investing activities                  (3,116)                 (1,674)
  Net cash provided by (used in) financing activities                  (2,022)                (29,520)
                                                                        -----                  ------
      Net change in cash and cash equivalents                       $  14,228               $  10,416
                                                                       ======                  ======


Navy II Partnership (stand alone)
  Net cash provided by (used in) operating activities              $   15,547               $  26,138
  Net cash provided by (used in) investing activities                  (3,172)                 (1,337)
  Net cash provided by (used in) financing activities                  (3,662)                (17,725)
                                                                        -----                  ------
      Net change in cash and cash equivalents                      $    8,713               $   7,076
                                                                        =====                  ======
</TABLE>

     The Navy I Partnership's cash flows from operating  activities decreased by
$35.8 million for the  nine-months  ended September 30, 2003, as compared to the
same  period  in 2002,  primarily  due to the  increase  in net  income  in 2002
resulting from Edison's payment received on March 1, 2002 for revenue  generated
but not recognized for the period  November 1, 2000 through March 26, 2001 and a
decrease in amounts due from related parties.

     Cash used in investing  activities at the Navy I  Partnership  increased by
$1.5 million for the  nine-months  ended  September 30, 2003, as compared to the
same period in 2002, primarily due to an increase in capital expenditures during
that  period  in  2003,  partially  offset  by a  decrease  in  restricted  cash
requirements associated with the project loan from Funding Corp.

     The Navy I  Partnership's  cash used in financing  activities  decreased by
$35.2 million for the  nine-months  ended September 30, 2003, as compared to the
same period in 2002,  due to decreased  partner  distributions  paid during that
period in 2003.

     The BLM  Partnership's  cash flows from operating  activities  decreased by
$22.2 million for the  nine-months  ended September 30, 2003, as compared to the
same period in 2002,  primarily due to the increase in net income resulting from
Edison's  payment  received  on March  1,  2002 for  revenue  generated  but not
recognized for the period November 1, 2000 through March 26, 2001.

     Cash used in investing activities at the BLM Partnership  increased by $1.4
million for the  nine-months  ended  September 30, 2003, as compared to the same
period in 2002, primarily due to an increase in capital expenditures during that
period in 2003 partially  offset by a decrease in restricted  cash  requirements
associated with the project loan from Funding Corp.

     The BLM Partnership's cash used in financing  activities decreased by $27.5
million for the  nine-months  ended  September 30, 2003, as compared to the same
period in 2002, due to decreased partner  distributions  paid during that period
in 2003.
                                       31

     The Navy II Partnership's cash flows from operating activities decreased by
$10.6 million for the  nine-months  ended September 30, 2003, as compared to the
same period in 2002,  primarily due to the increase in net income resulting from
Edison's  payment  received  on March  1,  2002 for  revenue  generated  but not
recognized  for the period  November 1, 2000 through  March 26, 2001,  partially
offset by a decrease in trade payables.

     Cash used in investing  activities at the Navy II Partnership  increased by
$1.8 million for the  nine-months  ended  September 30, 2003, as compared to the
same  period in 2002,  primarily  due to an  increase  in  capital  expenditures
partially offset by a decrease in restricted cash  requirements  associated with
the project loan from Funding Corp.

     The Navy II Partnership's  cash used in financing  activities  decreased by
$14.1 million for the  nine-months  ended September 30, 2003, as compared to the
same period in 2002,  due to decreased  partner  distributions  paid during that
period in 2003.


Item 3.  Control and Procedures

     The Registrant's  Chief Executive  Officer and Chief Financial Officer (the
Registrant's  principal  executive  officer  and  principal  financial  officer,
respectively)  have  concluded,  based on their  evaluation  as of September 30,
2003, that the design and operation of the Registrant's "disclosure controls and
procedures" (as defined in Rules 13a-15(e) under the Securities  Exchange Act of
1934,  as amended  ("Exchange  Act") are  effective  to ensure that  information
required to be disclosed by the  Registrant in the reports filed or submitted by
the  Registrant  under the Exchange  Act is  accumulated,  recorded,  processed,
summarized  and  reported  to  the   Registrant's   management,   including  the
Registrant's  principal  executive officer and principal  financial officer,  as
appropriate  to allow timely  decisions  regarding  whether or not disclosure is
required.

     During the quarter ended  September 30, 2003,  there were no changes in the
Registrant's  "internal  controls over financial  reporting" (as defined in Rule
13a-15(f)  under  the  Exchange  Act)  that  have  materially  affected,  or are
reasonably likely to materially affect, the Registrant's  internal controls over
financial reporting.


PART II.   OTHER INFORMATION


ITEM 1.    Legal Proceedings

General

     The Coso  Partnerships are currently parties to various items of litigation
relating to day-to-day operations, none of which, if determined adversely, would
be material to the  financial  condition  and results of  operations of the Coso
Partnerships, either individually or taken as a whole.


ITEM 2.    Change in Securities and Use of Proceeds

           None.

ITEM 3.    Defaults Upon Senior Securities

           None.

                                       32

ITEM 4.    Submission of Matters to a Vote of Security Holders

           None.

ITEM 5.    Other Information

          Supplemental  Condensed  Combined  Financial  Information for the Coso
          Partnerships

     The following  information  presents unaudited condensed combined financial
statements of the Coso  Partnerships.  These  financial  statements  represent a
combination of the financial  statements of Caithness  Coso Funding Corp.,  Coso
Finance  Partners,  Coso Energy  Developers  and Coso Power  Developers  for the
periods indicated.  This supplemental  financial  information is not required by
accounting principles generally accepted in the United States of America and has
been provided to facilitate a more comprehensive  understanding of the financial
position,  operating results and cash flows of the Coso Partnerships as a whole,
which  jointly and severally  guarantee the repayment of Caithness  Coso Funding
Corp's  senior notes.  The unaudited  condensed  combined  financial  statements
should be read in conjunction with each individual Coso Partnership's  financial
statements and their accompanying notes.

     The  financial  information  herein  presented  reflects  all  adjustments,
consisting only of normal  recurring  adjustments,  which are, in the opinion of
management,  necessary for a fair  statement of the results for interim  periods
presented. The results for the interim periods are not necessarily indicative of
results to be expected for the full year.

                                       33
<PAGE>
<TABLE>
<CAPTION>
                                                  COSO PARTNERSHIPS
                                      UNAUDITED CONDENSED COMBINED BALANCE SHEETS
                                                (Dollars in thousands)


                                                                                      September 30,        December 31,
                                                                                          2003                2002
<S>                                                                                   <C>                  <C>
Assets:
   Cash and cash equivalents....................................................      $   36,974           $    6,462
   Restricted cash and investments..............................................          43,830               46,193
   Accounts receivable, net.....................................................          35,102               21,346
   Prepaid expenses and other assets............................................           4,103                3,549
   Amounts due from related parties.............................................           6,308                6,516
   Property, plant and equipment, net...........................................         385,189              388,358
   Power purchase agreements, net...............................................          43,575               47,336
   Investments and advances.....................................................          12,286               12,508
   Deferred financing costs, net................................................           4,921                5,512
                                                                                         -------              -------

                                                                                      $  572,288           $  537,780
                                                                                         =======              =======


Liabilities and Partners' Capital:
   Accounts payable and accrued liabilities.....................................      $    9,489           $   10,486
   Amounts due to related parties...............................................          33,706               25,415
   Other liabilities............................................................          19,203               13,276
   Project loans................................................................         270,152              281,231
                                                                                         -------              -------
                                                                                         332,550              330,408
Partners' capital...............................................................         239,738              207,372
                                                                                         -------              -------

                                                                                      $  572,288           $  537,780
                                                                                         =======              =======
</TABLE>




See accompanying notes to the unaudited condensed combined financial statements.









                                       34

<PAGE>
<TABLE>
<CAPTION>
                                                         COSO PARTNERSHIPS
                                       UNAUDITED CONDENSED COMBINED STATEMENTS OF OPERATIONS
                                                      (Dollars in thousands)


                                                           Three-Months       Three-Months       Nine-Months        Nine-Months
                                                               Ended              Ended             Ended              Ended
                                                           September 30,      September 30,      September 30,      September 30,
                                                               2003               2002               2003               2002

<S>                                                         <C>                <C>               <C>                 <C>
Revenue:
   Energy revenues....................................      $   28,329         $   27,951        $   82,215          $  176,835
   Capacity revenues..................................          24,239             24,239            38,510              44,044
                                                                ------             ------           -------             -------
          Total revenue...............................          52,568             52,190           120,725             220,879

Operating expenses:
   Plant operating expenses...........................           8,113              9,057            23,309              23,368
   Royalty expense....................................           8,976              9,832            19,461              18,887
   Depreciation and amortization......................           7,618              8,800            22,839              29,768
                                                                 -----             ------            ------              ------
          Total operating expenses....................          24,707             27,689            65,609              72,023

          Operating income............................          27,861             24,501            55,116             148,856

Other (income)/expenses:
   Interest and other income..........................            (321)              (640)           (1,081)             (3,712)
   Interest expense...................................           6,145              6,658            18,759              20,376
   Amortization of deferred financing costs...........             198                198               591                 591
                                                                 -----              -----            ------              ------
          Total other expenses........................           6,022              6,216            18,269              17,255
                                                                 -----              -----            ------              ------
Income before cumulative effect of change in
   accounting principle...............................          21,839             18,285            36,847             131,601

Cumulative effect of change in accounting
   principle..........................................             ---                ---             4,481                 ---
                                                                ------             ------            ------             -------

          Net income..................................      $   21,839         $   18,285        $   32,366          $  131,601
                                                                ======             ======            ======             =======
</TABLE>




See accompanying notes to the unaudited condensed combined financial statements.









                                       35
<PAGE>
<TABLE>
<CAPTION>

                                         COSO PARTNERSHIPS
                       UNAUDITED CONDENSED COMBINED STATEMENTS OF CASH FLOWS
                                      (Dollars in thousands)


                                                                   Nine-Months           Nine-Months
                                                                      Ended                 Ended
                                                                  September 30,         September 30,
                                                                      2003                  2002
<S>                                                               <C>                   <C>


Net cash provided by (used in) operating activities....           $   53,930             $  122,607
Net cash provided by (used in) investing activities....              (12,339)                (7,557)
Net cash provided by (used in) financing activities....              (11,079)               (87,861)
                                                                      ------                 ------
Net change in cash and cash equivalents................           $   30,512             $   27,189
                                                                      ======                 ======

Supplemental cash flow disclosure:
     Cash paid for interest............................           $   12,726             $   13,710
                                                                      ======                 ======
</TABLE>




See accompanying notes to the unaudited condensed combined financial statements.









                                       36
<PAGE>
                                COSO PARTNERSHIPS
                    NOTES TO THE UNAUDITED CONDENSED COMBINED
                              FINANCIAL STATEMENTS
                             (Dollars in thousands)


(1)      Basis of Presentation

The accompanying  unaudited condensed combined financial statements were derived
from the stand alone unaudited condensed financial  statements of Caithness Coso
Funding  Corp.,  Coso Finance  Partners,  Coso Energy  Developers and Coso Power
Developers ("the Coso Partnerships"). All intercompany accounts and transactions
were  eliminated.  This financial  information has been provided to facilitate a
more comprehensive  understanding of the financial  position,  operating results
and cash flows of the Coso  Partnerships  as a whole.  The  unaudited  condensed
combined financial statements should be read in conjunction with each individual
Partnership's unaudited condensed financial statements.

(2)      Accounts Receivable and Revenue Recognition

Due to the uncertainty  surrounding Edison's ability to make payment on past due
amounts, collection was not reasonably assured and the Coso Partnerships had not
recognized  revenue from Edison for energy  delivered during the period November
1, 2000  through  March 26,  2001.  On March 1,  2002,  Edison  reached  certain
financing  milestones and paid the Coso Partnerships for revenue generated,  but
not recognized  for the period  November 1, 2000 through March 26, 2001. For the
nine-months ended September 30, 2002, the Coso Partnerships  recognized  revenue
for energy  delivered  from  November 1, 2000  through  March 26, 2001 of $112.4
million.

(3)     Reclassifications

Certain  balances  in prior  years  have been  reclassified  to  conform  to the
presentation adopted in the current year.

(4)      New Accounting Pronouncements

In June 2001,  the  Financial  Accounting  Standards  Board issued  Statement of
Financial  Accounting  Standards (SFAS) No. 143, Accounting for Asset Retirement
Obligations.  This Statement  addresses  financial  accounting and reporting for
obligations associated with the retirement of tangible long-lived assets and the
associated asset  retirement costs and amends SFAS No. 19, Financial  Accounting
and Reporting by Oil and Gas Producing  Companies.  The Statement  requires that
the fair value of a liability for an asset  retirement  obligation be recognized
in the period in which it is incurred if a reasonable estimate of fair value can
be made, and that the associated  asset  retirement costs be capitalized as part
of the carrying amount of the long-lived  asset.  The Statement is effective for
financial statements issued for fiscal years beginning after June 15, 2002. As a
result of the  adoption of SFAS No. 143, the Coso  Partnerships  was required to
recognize  a  liability  of  $5,292,  a net  asset of $811  and a loss  from the
cumulative effect of a change in accounting principle of $4,481 as of January 1,
2003. In 2003  additional  depreciation  and accretion  expense  resulting  from
adoption of SFAS No. 143 is estimated to be $675.

In January 2003, the FASB issued  Interpretation  No. 46, (FIN 46) Consolidation
of  Variable  Interest   Entities,   an  interpretation  of  ARB  No.  51.  This
Interpretation  addresses the consolidation by business  enterprises of variable
interest  entities  as defined in the  Interpretation.  The  Interpretation  was
originally  intended to be applied immediately to variable interests in variable
interest  entities  created after January 31, 2003, and in the first fiscal year
or interim  period  beginning  after June 15,  2003 to  enterprises  that hold a
variable interest in variable interest entities created before February 1, 2003.
On September  17,  2003,  the FASB  instructed  the FASB staff to prepare a FASB
Staff Position to defer the effective date of Interpretation 46 until the end of
the first interim or annual period ending after  December 15, 2003,  for certain
interests held by a public entity in certain variable interest entities.

                                       37

At that FASB meeting, the FASB also decided to address proposed modifications to
FIN 46 in an Interpretation of that document.  Those  modifications  would alter
how companies  identify  variable interest entities and modify the determination
of which party should consolidate them (the primary beneficiary).  The effect of
the  application  of  this   Interpretation  on  Coso  Partnership's   financial
statements is currently being evaluated and the expected impact has not yet been
determined.

                                       38
<PAGE>
ITEM 6.     Exhibits and Reports on Form 8-K

(a)         Exhibits

            27.1 Financial Data Schedule--Form SX--Caithness Coso Funding Corp.
            27.2 Financial Data Schedule--Form SX--Coso Finance Partners
            27.3 Financial Data Schedule--Form SX--Coso Energy Developers
            27.4 Financial Data Schedule--Form SX--Coso Power Developers
            Certification of Chief Executive Officer
            Certification of Chief Financial Officer
            99.1 Certification of Chief Executive Officer
            99.2 Certification of Chief Financial Officer

(b)         Reports on Form 8-K

            None




                                       39
<PAGE>
                                  EXHIBIT 27.1

                                    Form S-X
                       Commercial and Industrial Companies


Financial Data Schedule Worksheet for:      CAITHNESS COSO FUNDING CORP.
                                            ----------------------------
Review the following  list of tags for Article 5 and fill in the correct data in
the  column(s)  provided.  Generally,  only one  column of  information  will be
required,  however,  two columns are provided if required in the Financial  Data
Schedule.

Unless otherwise  noted, all tags are required.  A response is required for each
item within the schedule. Use the value "0" (zero) if information is immaterial,
inapplicable or unknown. Decimals may not be used to state financial data except
as indicated.  Values not provided will be entered as "0" (zero).  Missing dates
will be entered as "TO COME".  Please be sure to verify all  information  in the
EDGARized exhibit.

To  include  a  footnote,  place a number in  parentheses  next to the value and
provide  the text of each  corresponding  footnote  at the end of the  worksheet
form.

Do you wish to include a LEGEND?       This schedule  contains summary financial
                      Yes  X No        information extracted from *_____________
                   ---    ---          and is equalified in its entirety by
                                       reference to such financial statements.
                                       *Identify the financial statement(s) to
                                       be referenced in the legend:


RESTATED

Are your financials being "restated"          (NO VALUE REQUIRED)
from a previously file period?
                      Yes  X No
                   ---    ---
CIK                                       Use this section only for coregistrant
Does this data apply to a coregistrant    filings.
                      Yes  X No
                   ---    ---             COREGISTRANT CIK:

NAME                                      Use this section only for coregistrant
Does this data apply to a coregistrant    filings.
                      Yes  X No
                   ---    ---             COREGISTRANT NAME:

MULTIPLIER
Do the financials require a multiplier        X 1,000       1,000,000,000
                                             ---         ----
other than 1 (one)?
                    X Yes    No                 1,000,000    1,000,000,000,000
                   ---    ---                ---         ----

CURRENCY                                       CURRENCY OF FINANCIAL DATA:
Is the currency used other than US
Dollars? Use in conjunction with
EXCHANGE RATE tag.
                      Yes  X No
                   ---    ---
PERIOD TYPE                                       - MOS    X   9 - MOS
                                           --- ---        --- ---
                                              X  YEAR           YEAR
                                             ---           ---
                                            (for annual report filings)
                                                 OTHER          OTHER
                                            ----           ----
FISCAL YEAR END
(example: DEC-31-1997)                      Dec - 31 - 2002      DEC - 31 - 2003
                                            ---------------      ---------------
                                            mmm - dd - yyyy      mmm - dd - yyyy

PERIOD START
(example: JAN-01-1997)                      Jan - 01 - 2002      JAN - 01 - 2003
                                            ---------------      ---------------
                                            mmm - dd - yyyy      mmm - dd - yyyy

PERIOD END
(example: SEP-30-1997)                      Dec - 31 - 2002      SEP - 30 - 2003
                                            ---------------      ---------------
                                            mmm - dd - yyyy      mmm - dd - yyyy

EXCHANGE RATE                               EXCHANGE RATE:       EXCHANGE RATE:

Is the exchange rate other than 1
(one)? Value may contain up to 5
decimal places) Use in conjunction
with CURRENCY tag.
                      Yes  X No
                   ---    ---
<PAGE>

<TABLE>
<CAPTION>
                                         PERIOD TYPE Year            PERIOD TYPE 9 MOS
                                                     ----                        -----
<S>                                                     <C>                       <C>
CASH                                                         0                           0
SECURITIES                                                   0                           0
RECEIVABLES                                            282,361                     277,317
ALLOWANCES                                                   0                           0
INVENTORY                                                    0                           0
CURRENT ASSETDS                                          1,130                       7,165
PP&E                                                         0                           0
DEPRECIATION                                                 0                           0
TOTAL ASSETS                                           282,361                     277,317
CURRENT LIABILITIES                                      1,130                       7,165
BONDS                                                  281,231                     270,152
PREFERRED MANDATORY                                          0                           0
PREFERRED                                                    0                           0
COMMON                                                       0                           0
OTHER SE                                                     0                           0
TOTAL LIABILITY AND EQUITY                             282,361                     277,317
SALES                                                        0                           0
TOTAL REVENUES                                          26,931                      18,761
CGS                                                          0                           0
TOTAL COSTS                                                  0                           0
OTHER EXPENSES                                               0                           0
LOSS PROVISION                                               0                           0
INTEREST EXPENSES                                       26,931                      18,761
INCOME PRETAX                                                0                           0
INCOME TAX                                                   0                           0
INCOME CONTINUING                                            0                           0
DISCONTINUED                                                 0                           0
EXTRAORDINARY                                                0                           0
CHANGES                                                      0                           0
NET INCOME                                                   0                           0
EPS BASIC                                                    0                           0
(Value may contain up to 3 decimal places)
EPS DILUTED                                                  0                           0
(Value may contain up to 3 decimal places)

                    Footnote Text: (Note: Each footnote cannot exceed 256 characters, including spaces)
</TABLE>


<PAGE>
                                  EXHIBIT 27.2

                                    Form S-X
                       Commercial and Industrial Companies


Financial Data Schedule Worksheet for:      COSO FINANCE PARTNERS
                                            ---------------------
Review the following  list of tags for Article 5 and fill in the correct data in
the  column(s)  provided.  Generally,  only one  column of  information  will be
required,  however,  two columns are provided if required in the Financial  Data
Schedule.

Unless otherwise  noted, all tags are required.  A response is required for each
item within the schedule. Use the value "0" (zero) if information is immaterial,
inapplicable or unknown. Decimals may not be used to state financial data except
as indicated.  Values not provided will be entered as "0" (zero).  Missing dates
will be entered as "TO COME".  Please be sure to verify all  information  in the
EDGARized exhibit.

To  include  a  footnote,  place a number in  parentheses  next to the value and
provide  the text of each  corresponding  footnote  at the end of the  worksheet
form.

Do you wish to include a LEGEND?       This schedule  contains summary financial
                     Yes  X No         information extracted from *_____________
                  ---    ---           and is equalified in its entirety by
                                       reference to such financial statements.
                                       *Identify the financial statement(s) to
                                       be referenced in the legend:


RESTATED

Are your financials being "restated"          (NO VALUE REQUIRED)
from a previously file period?
                      Yes  X No
                   ---    ---
CIK                                       Use this section only for coregistrant
Does this data apply to a coregistrant    filings.
                      Yes  X No
                   ---    ---             COREGISTRANT CIK:

NAME                                      Use this section only for coregistrant
Does this data apply to a coregistrant    filings.
                      Yes  X No
                   ---    ---             COREGISTRANT NAME:

MULTIPLIER
Do the financials require a multiplier        X 1,000        1,000,000,000
                                             ---         ----
other than 1 (one)?
                    X Yes    No                 1,000,000    1,000,000,000,000
                   ---    ---                ---         ----

CURRENCY                                       CURRENCY OF FINANCIAL DATA:
Is the currency used other than US
Dollars? Use in conjunction with
EXCHANGE RATE tag.
                      Yes  X No
                   ---    ---
PERIOD TYPE                                      - MOS     X   9 - MOS
                                          --- ---         --- ---
                                             X  YEAR           YEAR
                                            ---            ---
                                            (for annual report filings)
                                                OTHER          OTHER
                                            ----           ----
FISCAL YEAR END
(example: DEC-31-1997)                      Dec - 31 - 2002      DEC - 31 - 2003
                                            ---------------      ---------------
                                            mmm - dd - yyyy      mmm - dd - yyyy

PERIOD START
(example: JAN-01-1997)                      Jan - 01 - 2002      JAN - 01 - 2003
                                            ---------------      ---------------
                                            mmm - dd - yyyy      mmm - dd - yyyy

PERIOD END
(example: SEP-30-1997)                      Dec - 31 - 2002      SEP - 30 - 2003
                                            ---------------      ---------------
                                            mmm - dd - yyyy      mmm - dd - yyyy

EXCHANGE RATE                               EXCHANGE RATE:       EXCHANGE RATE:

Is the exchange rate other than 1
(one)? Value may contain up to 5
decimal places) Use in conjunction
with CURRENCY tag.
                      Yes  X No
                   ---    ---
<PAGE>

<TABLE>
<CAPTION>
                                         PERIOD TYPE Year            PERIOD TYPE  9 MOS
                                                     ----                         -----
<S>                                                     <C>                        <C>
CASH                                                     4,215                      11,786
SECURITIES                                              28,692                      27,094
RECEIVABLES                                              8,621                      13,147
ALLOWANCES                                                   0                           0
INVENTORY                                                    0                           0
CURRENT ASSETS                                          13,904                      26,209
PP&E                                                   234,442                     242,563
DEPRECIATION                                            98,129                     105,326
TOTAL ASSETS                                           195,072                     205,694
CURRENT LIABILITIES                                      6,231                       7,456
BONDS                                                  110,955                     105,560
PREFERRED MANDATORY                                          0                           0
PREFERRED                                                    0                           0
COMMON                                                       0                           0
OTHER SE                                                     0                           0
TOTAL LIABILITY AND EQUITY                             195,072                     205,694
SALES                                                   92,065                      47,709
TOTAL REVENUES                                          93,639                      47,864
CGS                                                          0                           0
TOTAL COSTS                                                  0                           0
OTHER EXPENSES                                          33,376                      26,475
LOSS PROVISION                                               0                           0
INTEREST EXPENSES                                       11,151                       7,613
INCOME PRETAX                                                0                           0
INCOME TAX                                                   0                           0
INCOME CONTINUING                                            0                           0
DISCONTINUED                                                 0                           0
EXTRAORDINARY                                                0                           0
CHANGES                                                      0                       1,780
NET INCOME                                              49,112                      11,996
EPS BASIC                                                    0                           0
(Value may contain up to 3 decimal places)
EPS DILUTED                                                  0                           0
(Value may contain up to 3 decimal places)

                    Footnote Text: (Note: Each footnote cannot exceed 256 characters, including spaces)
</TABLE>


<PAGE>

                                  EXHIBIT 27.3

                                    Form S-X
                       Commercial and Industrial Companies

Financial Data Schedule Worksheet for:      COSO ENERGY DEVELOPERS
                                            ----------------------
Review the following  list of tags for Article 5 and fill in the correct data in
the  column(s)  provided.  Generally,  only one  column of  information  will be
required,  however,  two columns are provided if required in the Financial  Data
Schedule.

Unless otherwise  noted, all tags are required.  A response is required for each
item within the schedule. Use the value "0" (zero) if information is immaterial,
inapplicable or unknown. Decimals may not be used to state financial data except
as indicated.  Values not provided will be entered as "0" (zero).  Missing dates
will be entered as "TO COME".  Please be sure to verify all  information  in the
EDGARized exhibit.

To  include  a  footnote,  place a number in  parentheses  next to the value and
provide  the text of each  corresponding  footnote  at the end of the  worksheet
form.

Do you wish to include a LEGEND?       This schedule  contains summary financial
                      Yes  X No        information extracted from *_____________
                   ---    ---          and is equalified in its entirety by
                                       reference to such financial statements.
                                       *Identify the financial statement(s) to
                                       be referenced in the legend:


RESTATED

Are your financials being "restated"          (NO VALUE REQUIRED)
from a previously file period?
                      Yes  X No
                   ---    ---
CIK                                       Use this section only for coregistrant
Does this data apply to a coregistrant    filings.
                      Yes  X No
                   ---    ---             COREGISTRANT CIK:

NAME                                      Use this section only for coregistrant
Does this data apply to a coregistrant    filings.
                      Yes  X No
                   ---    ---             COREGISTRANT NAME:

MULTIPLIER
Do the financials require a multiplier        X 1,000        1,000,000,000
                                             ---         ----
other than 1 (one)?
                    X Yes    No                 1,000,000    1,000,000,000,000
                   ---    ---                ---         ----

CURRENCY                                       CURRENCY OF FINANCIAL DATA:
Is the currency used other than US
Dollars? Use in conjunction with
EXCHANGE RATE tag.
                      Yes  X No
                   ---    ---
PERIOD TYPE                                     - MOS     X   9 - MOS
                                         --- ---         --- ---
                                             X  YEAR           YEAR
                                            ---            ---
                                            (for annual report filings)
                                                OTHER          OTHER
                                            ----           ----
FISCAL YEAR END
(example: DEC-31-1997)                      Dec - 31 - 2002      DEC - 31 - 2003
                                            ---------------      ---------------
                                            mmm - dd - yyyy      mmm - dd - yyyy

PERIOD START
(example: JAN-01-1997)                      Jan - 01 - 2002      JAN - 01 - 2003
                                            ---------------      ---------------
                                            mmm - dd - yyyy      mmm - dd - yyyy

PERIOD END
(example: SEP-30-1997)                      Dec - 31 - 2002      SEP - 30 - 2003
                                            ---------------      ---------------
                                            mmm - dd - yyyy      mmm - dd - yyyy

EXCHANGE RATE                               EXCHANGE RATE:       EXCHANGE RATE:

Is the exchange rate other than 1
(one)? Value may contain up to 5
decimal places) Use in conjunction
with CURRENCY tag.
                      Yes  X No
                   ---    ---
<PAGE>

<TABLE>
<CAPTION>
                                         PERIOD TYPE Year            PERIOD TYPE 9 MOS
                                                     ----                        -----
<S>                                                     <C>                         <C>
CASH                                                     1,423                      15,651
SECURITIES                                               6,646                       7,244
RECEIVABLES                                              7,102                      11,384
ALLOWANCES                                                   0                           0
INVENTORY                                                    0                           0
CURRENT ASSETS                                           9,895                      28,648
PP&E                                                   247,912                     250,732
DEPRECIATION                                           112,059                     118,330
TOTAL ASSETS                                           174,871                     189,589
CURRENT LIABILITIES                                     27,961                      30,995
BONDS                                                   89,875                      87,853
PREFERRED MANDATORY                                          0                           0
PREFERRED                                                    0                           0
COMMON                                                       0                           0
OTHER SE                                                     0                           0
TOTAL LIABILITY AND EQUITY                             174,871                     189,589
SALES                                                   81,252                      37,166
TOTAL REVENUES                                          82,707                      37,915
CGS                                                          0                           0
TOTAL COSTS                                                  0                           0
OTHER EXPENSES                                          28,526                      18,268
LOSS PROVISION                                               0                           0
INTEREST EXPENSES                                        8,822                       6,223
INCOME PRETAX                                                0                           0
INCOME TAX                                                   0                           0
INCOME CONTINUING                                            0                           0
DISCONTINUED                                                 0                           0
EXTRAORDINARY                                                0                           0
CHANGES                                                      0                         924
NET INCOME                                              45,359                      12,500
EPS BASIC                                                    0                           0
(Value may contain up to 3 decimal places)
EPS DILUTED                                                  0                           0
(Value may contain up to 3 decimal places)

                    Footnote Text: (Note: Each footnote cannot exceed 256 characters, including spaces)
</TABLE>

<PAGE>
                                  EXHIBIT 27.4

                                    Form S-X
                       Commercial and Industrial Companies

Financial Data Schedule Worksheet for:      COSO POWER DEVELOPERS
                                            ---------------------
Review the following  list of tags for Article 5 and fill in the correct data in
the  column(s)  provided.  Generally,  only one  column of  information  will be
required,  however,  two columns are provided if required in the Financial  Data
Schedule.

Unless otherwise  noted, all tags are required.  A response is required for each
item within the schedule. Use the value "0" (zero) if information is immaterial,
inapplicable or unknown. Decimals may not be used to state financial data except
as indicated.  Values not provided will be entered as "0" (zero).  Missing dates
will be entered as "TO COME".  Please be sure to verify all  information  in the
EDGARized exhibit.

To  include  a  footnote,  place a number in  parentheses  next to the value and
provide  the text of each  corresponding  footnote  at the end of the  worksheet
form.

Do you wish to include a LEGEND?       This schedule  contains summary financial
                      Yes  X No        information extracted from *_____________
                   ---    ---          and is equalified in its entirety by
                                       reference to such financial statements.
                                       *Identify the financial statement(s) to
                                       be referenced in the legend:


RESTATED

Are your financials being "restated"          (NO VALUE REQUIRED)
from a previously file period?
                      Yes  X No
                   ---    ---
CIK                                       Use this section only for coregistrant
Does this data apply to a coregistrant    filings.
                      Yes  X No
                   ---    ---             COREGISTRANT CIK:

NAME                                      Use this section only for coregistrant
Does this data apply to a coregistrant    filings.
                      Yes  X No
                   ---    ---             COREGISTRANT NAME:

MULTIPLIER
Do the financials require a multiplier        X 1,000        1,000,000,000
                                             ---         ----
other than 1 (one)?
                    X Yes    No                 1,000,000    1,000,000,000,000
                   ---    ---                ---         ----

CURRENCY                                       CURRENCY OF FINANCIAL DATA:
Is the currency used other than US
Dollars? Use in conjunction with
EXCHANGE RATE tag.
                      Yes  X No
                   ---    ---
PERIOD TYPE                                     - MOS      X   9 - MOS
                                         --- ---          --- ---
                                             X  YEAR           YEAR
                                            ---            ---
                                            (for annual report filings)
                                                OTHER          OTHER
                                            ----           ----
FISCAL YEAR END
(example: DEC-31-1997)                      Dec - 31 - 2002      DEC - 31 - 2003
                                            ---------------      ---------------
                                            mmm - dd - yyyy      mmm - dd - yyyy

PERIOD START
(example: JAN-01-1997)                      Jan - 01 - 2002      JAN - 01 - 2003
                                            ---------------      ---------------
                                            mmm - dd - yyyy      mmm - dd - yyyy

PERIOD END
(example: SEP-30-1997)                      Dec - 31 - 2002      SEP - 30 - 2003
                                            ---------------      ---------------
                                            mmm - dd - yyyy      mmm - dd - yyyy

EXCHANGE RATE                               EXCHANGE RATE:       EXCHANGE RATE:

Is the exchange rate other than 1
(one)? Value may contain up to 5
decimal places) Use in conjunction
with CURRENCY tag.
                      Yes  X No
                   ---    ---
<PAGE>

<TABLE>
<CAPTION>
                                         PERIOD TYPE Year            PERIOD TYPE 9 MOS
                                                     ----                        -----
<S>                                                     <C>                         <C>
CASH                                                       824                       9,537
SECURITIES                                              10,855                       9,492
RECEIVABLES                                             13,136                      18,428
ALLOWANCES                                                   0                           0
INVENTORY                                                    0                           0
CURRENT ASSETS                                          15,071                      29,179
PP&E                                                   210,548                     215,706
DEPRECIATION                                            94,356                     100,156
TOTAL ASSETS                                           168,834                     178,554
CURRENT LIABILITIES                                      2,706                       6,293
BONDS                                                   80,401                      76,739
PREFERRED MANDATORY                                          0                           0
PREFERRED                                                    0                           0
COMMON                                                       0                           0
OTHER SE                                                     0                           0
TOTAL LIABILITY AND EQUITY                             168,834                     178,554
SALES                                                   79,592                      35,850
TOTAL REVENUES                                          80,486                      36,027
CGS                                                          0                           0
TOTAL COSTS                                                  0                           0
OTHER EXPENSES                                          29,428                      20,866
LOSS PROVISION                                               0                           0
INTEREST EXPENSES                                        7,755                       5,514
INCOME PRETAX                                                0                           0
INCOME TAX                                                   0                           0
INCOME CONTINUING                                            0                           0
DISCONTINUED                                                 0                           0
EXTRAORDINARY                                                0                           0
CHANGES                                                      0                       1,777
NET INCOME                                              43,303                       7,870
EPS BASIC                                                    0                           0
(Value may contain up to 3 decimal places)
EPS DILUTED                                                  0                           0
(Value may contain up to 3 decimal places)

                    Footnote Text: (Note: Each footnote cannot exceed 256 characters, including spaces)
</TABLE>
<PAGE>


          CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION
                    302(a) OF THE SARBANES-OXLEY ACT OF 2002

I, James D. Bishop, Sr., certify that:

1.   I have  reviewed  this  quarterly  report  on Form 10-Q of  Caithness  Coso
     Funding Corp.,  Coso Finance  Partners,  Coso Energy  Developers,  and Coso
     Power Developers (collectively, the "Registrant");

2.   Based on my knowledge,  this  quarterly  report does not contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements  were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in this  quarterly  report,  fairly  present  in all
     material respects the financial  condition,  results of operations and cash
     flows of the  Registrant  as of, and for,  the  periods  presented  in this
     quarterly report;

4.   The  Registrant's  other  certifying  officers  and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the Registrant and we have:

     a)   designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  Registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

     b)   evaluated the  effectiveness of the Registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c)   presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The Registrant's other certifying  officers and I have disclosed,  based on
     our most recent  evaluation,  to the  Registrant's  auditors  and the audit
     committee of  Registrant's  board of directors (or persons  performing  the
     equivalent function):

     a)   all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  Registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  Registrant's  auditors any material  weaknesses in
          internal controls; and

     b)   any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  Registrant's  internal
          controls; and

6.   The  Registrant's  other  certifying  officers and I have indicated in this
     quarterly report whether or not there were significant  changes in internal
     controls  or in other  factors  that could  significantly  affect  internal
     controls  subsequent to the date of our most recent  evaluation,  including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.



Date:  November 13, 2003                Caithness Coso Funding Corp.
                                        a Delaware Corporation

                                         By: /S/ JAMES D. BISHOP, SR.
                                             ------------------------
                                                 James D. Bishop, Sr.
                                                 Director, Chairman &
                                                 Chief Executive Officer

<PAGE>

          CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO SECTION
                    302(a) OF THE SARBANES-OXLEY ACT OF 2002

I, Christopher T. McCallion, certify that:

1.   I have  reviewed  this  quarterly  report  on Form 10-Q of  Caithness  Coso
     Funding Corp.,  Coso Finance  Partners,  Coso Energy  Developers,  and Coso
     Power Developers (collectively, the "Registrant");

2.   Based on my knowledge,  this  quarterly  report does not contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements  were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in this  quarterly  report,  fairly  present  in all
     material respects the financial  condition,  results of operations and cash
     flows of the  Registrant  as of, and for,  the  periods  presented  in this
     quarterly report;

4.   The  Registrant's  other  certifying  officers  and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the Registrant and we have:

     a)   designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  Registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

     b)   evaluated the  effectiveness of the Registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c)   presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The Registrant's other certifying  officers and I have disclosed,  based on
     our most recent  evaluation,  to the  Registrant's  auditors  and the audit
     committee of  Registrant's  board of directors (or persons  performing  the
     equivalent function):

     a)   all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  Registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  Registrant's  auditors any material  weaknesses in
          internal controls; and

     b)   any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  Registrant's  internal
          controls; and

6.   The  Registrant's  other  certifying  officers and I have indicated in this
     quarterly report whether or not there were significant  changes in internal
     controls  or in other  factors  that could  significantly  affect  internal
     controls  subsequent to the date of our most recent  evaluation,  including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.



Date:  November 13, 2003                Caithness Coso Funding Corp.
                                        a Delaware Corporation

                                         By: /S/CHRISTOPHER T. MCCALLION
                                             ---------------------------
                                                Christopher T. McCallion
                                                Executive Vice President
                                                & Chief Financial Officer
                                                Principal Financial &
                                                Accounting Officer
<PAGE>


                                  Exhibit 99.1

                    CERTIFICATION OF CHIEF EXECUTIVE OFFICER
                       PURSUANT TO 18 U.S.C. SECTION 1350,
                             AS ADOPTED PURSUANT TO
                 SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection  with the Quarterly  Report of Caithness Coso Funding Corp.,  Coso
Finance   Partners,   Coso  Energy   Developers,   and  Coso  Power   Developers
(collectively,  the  "Registrant")  on Form 10-Q for the period ending September
30, 2003 as filed with the Securities and Exchange Commission on the date hereof
(the  "Report"),  I,  James D.  Bishop,  Sr.,  Chief  Executive  Officer  of the
Registrant,  certify,  to the best of my  knowledge  and belief,  pursuant to 18
U.S.C.  ss. 1350, as adopted  pursuant to ss. 906 of the  Sarbanes-Oxley  Act of
2002, that:

     (1)  The Report fully  complies with the  requirements  of section 13(a) or
          15(d) of the Securities Exchange Act of 1934; and

     (2)  The  information  contained  in the  Report  fairly  presents,  in all
          material respects, the financial condition and result of operations of
          the Registrant.



Date:  November 13, 2003                Caithness Coso Funding Corp.
                                        a Delaware Corporation

                                         By: /S/ JAMES D. BISHOP, SR.
                                             ------------------------
                                                 James D. Bishop, Sr.
                                                 Director, Chairman &
                                                 Chief Executive Officer
<PAGE>


                                  Exhibit 99.2

                    CERTIFICATION OF CHIEF FINANCIAL OFFICER
                       PURSUANT TO 18 U.S.C. SECTION 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection  with the Quarterly  Report of Caithness Coso Funding Corp.,  Coso
Finance   Partners,   Coso  Energy   Developers,   and  Coso  Power   Developers
(collectively,  the  "Registrant")  on Form 10-Q for the period ending September
30, 2003 as filed with the Securities and Exchange Commission on the date hereof
(the  "Report"),  I,  Christopher T. McCallion,  Chief Financial  Officer of the
Registrant,  certify,  to the best of my  knowledge  and belief,  pursuant to 18
U.S.C.  ss. 1350, as adopted  pursuant to ss. 906 of the  Sarbanes-Oxley  Act of
2002, that:

     (1)  The Report fully  complies with the  requirements  of section 13(a) or
          15(d) of the Securities Exchange Act of 1934; and

     (2)  The  information  contained  in the  Report  fairly  presents,  in all
          material respects, the financial condition and result of operations of
          the Registrant.



Date:  November 13, 2003                Caithness Coso Funding Corp.
                                        a Delaware Corporation

                                         By: /S/ CHRISTOPHER T. MCCALLION
                                             ----------------------------
                                                 Christopher T. McCallion
                                                 Executive Vice President
                                                 & Chief Financial Officer
                                                 Principal Financial &
                                                 Accounting Officer
<PAGE>


                                   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 thereunto duly authorized.


                                CAITHNESS COSO FUNDING CORP.,
                                a Delaware corporation

Date:  November 13, 2003         By: /S/ CHRISTOPHER T. MCCALLION
                                     ----------------------------
                                         Christopher T. McCallion
                                         Executive Vice President &
                                         Chief Financial Officer
                                         (Principal Financial and
                                         Accounting Officer)


                                COSO FINANCE PARTNERS
                                a California general Partnership

                                 By: New CLOC Company, LLC,
                                      its Managing General Partner

Date:  November 13, 2003         By: /S/ CHRISTOPHER T. MCCALLION
                                     ----------------------------
                                         Christopher T. McCallion
                                         Executive Vice President &
                                         Chief Financial Officer
                                         (Principal Financial and
                                         Accounting Officer)


                                COSO ENERGY DEVELOPERS
                                a California general Partnership

                                 By: New CHIP Company, LLC,
                                      its Managing General Partner

Date:  November 13, 2003         By: /S/ CHRISTOPHER T. MCCALLION
                                     ----------------------------
                                         Christopher T. McCallion
                                         Executive Vice President &
                                         Chief Financial Officer
                                         (Principal Financial and
                                         Accounting Officer)


                                COSO POWER DEVELOPERS
                                a California general Partnership

                                 By: New CTC Company, LLC,
                                      its Managing General Partner

Date:  November 13, 2003         By: /S/ CHRISTOPHER T. MCCALLION
                                     ----------------------------
                                         Christopher T. McCallion
                                         Executive Vice President &
                                         Chief Financial Officer
                                         (Principal Financial and
                                         Accounting Officer)