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, 2002
                                                  ------------------

                                       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 12, 2002
       ------------------------------------------------------------------

<PAGE>

                          CAITHNESS COSO FUNDING CORP.
                                    Form 10-Q
                    For the Quarter Ended September 30, 2002


PART I.   FINANCIAL INFORMATION                                         Page No.

ITEM 1.   Financial Statements

   Caithness Coso Funding Corp.
   Unaudited condensed balance sheets at September 30, 2002 and
     December 31, 2001                                                         4
   Unaudited condensed statements of operations for the three-months
     ended September 30, 2002, the three-months ended September 30,
     2001, the nine-months ended September 30, 2002, and the nine-
     months ended September 30, 2001                                           5
   Unaudited condensed statements of cash flows for the nine-months
     ended September 30, 2002, and the nine-months ended
     September 30, 2001                                                        6
   Notes to the unaudited condensed financial statements                       7

   Coso Finance Partners
   Unaudited condensed balance sheets at September 30, 2002 and
     December 31, 2001                                                         8
   Unaudited condensed statements of operations for the three-months
     ended September 30, 2002, the three-months ended September 30,
     2001, the nine-months ended September 30, 2002, and the nine-
     months ended September 30, 2001                                           9
   Unaudited condensed statements of cash flows for the nine-months
     ended September 30, 2002, and the nine-months ended
     September 30, 2001                                                       10
   Notes to the unaudited condensed financial statements                      11

   Coso Energy Developers
   Unaudited condensed balance sheets at September 30, 2002 and
     December 31, 2001                                                        12
   Unaudited condensed statements of operations for the three-months
     ended September 30, 2002, the three-months ended September 30,
     2001, the nine-months ended September 30, 2002, and the nine-
     months ended September 30, 2001                                          13
   Unaudited condensed statements of cash flows for the nine-months
     ended September 30, 2002, and the nine-months ended
     September 30, 2001                                                       14
   Notes to the unaudited condensed financial statements                      15

                                       2

   Coso Power Developers
   Unaudited condensed balance sheets at September 30, 2002 and
     December 31, 2001                                                        16
   Unaudited condensed statements of operations for the three-months
     ended September 30, 2002, the three-months ended September 30,
     2001, the nine-months ended September 30, 2002, and the nine-
     months ended September 30, 2001                                          17
   Unaudited condensed statements of cash flows the nine-months
     ended September 30, 2002, and the nine-months ended
     September 30, 2001                                                       18
   Notes to the unaudited condensed financial statements                      19

ITEM 2.    Management's Discussion and Analysis of Financial Condition and
            Results of Operations                                             20

PART II.   OTHER INFORMATION

ITEM 1.    Legal Proceedings                                                  30
ITEM 2.    Change in Securities and Use of Proceeds                           30
ITEM 3.    Defaults upon Senior Securities                                    30
ITEM 4.    Submission of Matters to a Vote of Security Holders                30
ITEM 5.    Other Information                                                  30
   Supplemental condensed combined financial information for the
   Coso Partnerships
   Unaudited condensed combined balance sheets at September 30,
     2002 and December 31, 2001                                               31
   Unaudited condensed combined statements of operations for the
     three-months ended September 30, 2002, the three-months ended
     September 30, 2001, the nine-months ended September 30, 2002,
     and the nine-months ended September 30, 2001                             32
   Unaudited condensed combined statements of cash flows for the
     nine-months ended September 30, 2002, and the nine-months
     ended September 30, 2001                                                 33
   Notes to the unaudited condensed combined financial statements             34

ITEM 6.   Exhibits and Reports on Form 8-K                                    35

                                       3

<PAGE>

                          CAITHNESS COSO FUNDING CORP.
                       UNAUDITED CONDENSED BALANCE SHEETS
                             (Dollars in thousands)
<TABLE>
<CAPTION>
                                                            September 30,          December 31,
                                                                2002                  2001
                                                                                     (Note)
<S>                                                         <C>                   <C>

Assets:
  Accrued interest receivable.......................         $    7,883            $    1,225
  Project loan to Coso Finance Partners.............            117,911               122,550
  Project loan to Coso Energy Developers............             93,700                96,250
  Project loan to Coso Power Developers.............             82,680                84,200
                                                                -------               -------

                                                             $  302,174            $  304,225
                                                                =======               =======

Liabilities and Stockholders' Equity:
  Senior secured notes:
    Accrued interest payable........................         $    7,883            $    1,225
    9.05% notes due 2009............................            294,291               303,000
                                                                -------               -------
                                                                302,174               304,225
Stockholders' Equity................................                ---                   ---
                                                                -------               -------

                                                             $  302,174            $  304,225
                                                                =======               =======

</TABLE>




Note:     The  condensed  balance  sheet at December  31, 2001 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>

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


                                                  Three-Months        Three-Months        Nine-Months        Nine-Months
                                                      Ended               Ended              Ended              Ended
                                                  September 30,       September 30,      September 30,      September 30,
                                                      2002                2001               2002               2001
<S>                                               <C>                 <C>                <C>                <C>

Interest income................                     $  6,659            $  7,105           $  20,369          $  21,703
Interest expense...............                       (6,659)             (7,105)            (20,369)           (21,703)
                                                      -------             -------            --------           --------

    Net income.................                     $     ---           $     ---          $      ---         $      ---
                                                      =======             =======            ========           ========

</TABLE>







    See accompanying notes to the unaudited condensed financial statements


                                       5

<PAGE>


                          CAITHNESS COSO FUNDING CORP.
                  UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
                             (Dollars in thousands)
<TABLE>
<CAPTION>
                                                               Nine-Months         Nine-Months
                                                                  Ended               Ended
                                                              September 30,       September 30,
                                                                  2002                2001


<S>                                                           <C>                 <C>
Net cash provided by (used in) investing activities.......     $   2,051           $   4,136
Net cash provided by (used in) financing activities.......        (2,051)             (4,136)
                                                                  ------              ------
Net change in cash and cash equivalents..................      $     ---           $     ---
                                                                  ======              ======

Supplemental cash flow disclosure:
     Cash paid for interest.................................   $  13,710           $  14,631
                                                                  ======              ======
</TABLE>






     See accompanying notes to the unaudited condensed financial statements


                                       6
<PAGE>

                          CAITHNESS COSO FUNDING CORP.
             NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS


(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  "Partnerships."  The  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  Partnerships,  and the  Partnerships  have
jointly and severally  guaranteed  repayment on a senior  basis.  Payment of the
Notes  is  provided  for by  payments  made  by  the  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 Partnerships.  Also, Funding Corp.
does not conduct any business,  other than issuing the senior  secured notes and
making the loans to the 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 financial  statements and the notes
thereto in the audited  financial  statements  for the year ended  December  31,
2001.

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>

                             COSO FINANCE PARTNERS
                       UNAUDITED CONDENSED BALANCE SHEETS
                             (Dollars in thousands)
<TABLE>
<CAPTION>
                                                                                   September 30,       December 31,
                                                                                       2002                2001
                                                                                                          (Note)
<S>                                                                                <C>                 <C>
Assets:
   Cash and cash equivalents................................................         $  10,011          $     264
   Restricted cash and investments..........................................            24,239             21,325
   Accounts receivable, net.................................................            12,108              3,454
   Prepaid expenses & other assets..........................................             1,546                650
   Amounts due from related parties.........................................             2,023              9,362
   Property, plant & equipment, net.........................................           134,804            140,437
   Power purchase agreement, net............................................            10,232             11,093
   Investment in New CLPSI Company, LLC.....................................             3,960              4,005
   Deferred financing costs, net............................................             2,287              2,524
                                                                                         -----              -----

                                                                                     $ 201,210          $ 193,114
                                                                                       =======            =======

Liabilities and Partners' Capital:
   Accounts payable and accrued liabilities.................................         $  17,714          $  17,578
   Amounts due to related parties...........................................             3,198                561
   Project loans............................................................           117,911            122,550
                                                                                       -------            -------
                                                                                       138,823            140,689
                                                                                        62,387             52,425
                                                                                       -------            -------

Partners' capital...........................................................         $ 201,210          $ 193,114
                                                                                       =======            =======
</TABLE>






Note:     The  condensed  balance  sheet at December  31, 2001 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>

                             COSO FINANCE PARTNERS
                  UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
                             (Dollars in thousands)
<TABLE>
<CAPTION>
                                                        Three-Months       Three-Months       Nine-Months        Nine-Months
                                                           Ended              Ended              Ended              Ended
                                                        September 30,      September 30,     September 30,      September 30,
                                                            2002               2001              2002               2001
<S>                                                      <C>                <C>                <C>                <C>
Revenue:
   Energy revenues..............................         $ 11,571           $  7,666           $ 64,683           $ 33,746
   Capacity revenues............................            8,190              8,190             14,904             11,955
   Interest and other income....................              136                977              1,655              2,155
                                                           ------             ------             ------             ------
          Total revenue.........................           19,897             16,833             81,242             47,856

Operating expenses:
   Plant operating expenses.....................            2,811              2,055              7,379              6,629
   Royalty expense..............................            5,762              7,005             11,393             13,759
   Depreciation and amortization................            3,049              2,647              8,126              7,687
                                                           ------             ------             ------             ------
          Total operating expenses..............           11,622             11,707             26,898             28,075

          Operating income......................            8,275              5,126             54,344             19,781

Other expenses:
   Interest expense.............................            2,668              2,896              8,216              8,851
   Amortization of deferred financing costs.....               79                130                237                390
                                                           ------             ------             ------             ------
          Total other expenses..................            2,747              3,026              8,453              9,241

          Net income............................         $  5,528           $  2,100           $ 45,891           $ 10,540
                                                           ======             ======             ======             ======
</TABLE>






     See accompanying notes to the unaudited condensed financial statements


                                       9

<PAGE>

                             COSO FINANCE PARTNERS
                  UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
                             (Dollars in thousands)
<TABLE>
<CAPTION>
                                                               Nine-Months          Nine-Months
                                                                  Ended                Ended
                                                              September 30,        September 30,
                                                                  2002                 2001

<S>                                                             <C>                  <C>
Net cash provided by (used in) operating activities....         $ 54,861             $ 20,461
Net cash provided by (used in) investing activities....           (4,546)              (1,867)
Net cash provided by (used in) financing activities....          (40,568)              (8,381)
                                                                  ------               ------
Net change in cash and cash equivalents................         $  9,747             $ 10,213
                                                                  ======               ======

Supplemental cash flow disclosure:
       Cash paid for interest..........................         $  5,545             $  5,968
                                                                  ======               ======

</TABLE>





       See accompanying notes to the unaudited condensed financial statements


                                     10
<PAGE>

                             COSO FINANCE PARTNERS
             NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS


(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 24-year power purchase  contract expiring 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 financial  statements
and the notes  thereto in the audited  financial  statements  for the year ended
December 31, 2001.

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. The provision for doubtful accounts  previously recorded
by CFP of $21.6 million for the  nine-months  ended September 30, 2001, has been
reclassified as a reduction of revenue to conform with the 2002 presentation.

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.  For the  nine-month  period  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 reclassifications have been made to the 2001 statements of operations to
conform to the 2002 presentation.


                                       11

<PAGE>

                             COSO ENERGY DEVELOPERS
                       UNAUDITED CONDENSED BALANCE SHEETS
                             (Dollars in thousands)
<TABLE>
<CAPTION>
                                                                               September 30,       December 31,
                                                                                   2002               2001
                                                                                                     (Note)
<S>                                                                             <C>                <C>
Assets:
   Cash and cash equivalents..............................................      $  10,416          $     ---
   Restricted cash and investments........................................          8,420              7,368
   Accounts receivable, net...............................................         11,172              2,939
   Prepaid expenses and other assets......................................          1,946                849
   Amounts due from related parties.......................................            426                401
   Property, plant and equipment, net.....................................        137,708            148,417
   Power purchase agreement, net..........................................         17,633             18,437
   Investment in Coso  Transmission Line  Partners........................          2,701              2,738
   Investment in New CLPSI Company, LLC...................................            665                789
   Deferred financing costs, net..........................................          1,849              2,040
                                                                                  -------            -------

                                                                                $ 192,936          $ 183,978
                                                                                  =======            =======

Liabilities and Partners' Capital:
   Accounts payable and accrued liabilities...............................      $   2,164          $   7,699
   Amounts due to related  parties........................................         28,391             27,267
   Project loans..........................................................         93,700             96,250
                                                                                   ------             ------
                                                                                  124,255            131,216
                                                                                   68,681             52,762
Partners' capital.........................................................         ------             ------

                                                                                $ 192,936          $ 183,978
                                                                                  =======            =======
</TABLE>





Note:     The  condensed  balance  sheet at December  31, 2001 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


                                     12
<PAGE>

                             COSO ENERGY DEVELOPERS
                  UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
                             (Dollars in thousands)
<TABLE>
<CAPTION>
                                                      Three-Months      Three-Months      Nine-Months       Nine-Months
                                                          Ended             Ended            Ended             Ended
                                                      September 30,     September 30,    September 30,     September 30,
                                                          2002              2001             2002              2001
<S>                                                    <C>               <C>               <C>               <C>

Revenue:
   Energy revenues..............................       $  8,589          $  6,053          $ 56,724          $ 25,510
   Capacity revenues............................          8,002             8,002            14,537            11,682
   Interest and other income....................            267             1,040             1,169             2,877
                                                         ------            ------            ------            ------
          Total revenue.........................         16,858            15,095            72,430            40,069

Operating expenses:
   Plant operating expenses.....................          3,328             2,384             8,581             7,592
   Royalty expense..............................          1,482               967             2,157             4,993
   Depreciation and amortization................          3,903             4,009            12,135            11,884
                                                         ------            ------            ------            ------
          Total operating expenses..............          8,713             7,360            22,873            24,469

          Operating income......................          8,145             7,735            49,557            15,600

Other expenses:
   Interest expense.............................          2,120             2,225             6,477             6,733
   Amortization of deferred financing costs.....             64                79               191               238
                                                         ------            ------            ------            ------
          Total other expenses..................          2,184             2,304             6,668             6,971


          Net income............................       $  5,961          $  5,431          $ 42,889          $  8,629
                                                         ======            ======            ======            ======

</TABLE>






    See accompanying notes to the unaudited condensed financial statements


                                     13
<PAGE>

                             COSO ENERGY DEVELOPERS
                  UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
                             (Dollars in thousands)
<TABLE>
<CAPTION>
                                                               Nine-Months          Nine-Months
                                                                  Ended                Ended
                                                              September 30,        September 30,
                                                                  2002                 2001
<S>                                                             <C>                  <C>

Net cash provided by (used in) operating activities....         $ 41,610             $ 21,413
Net cash provided by (used in) investing activities....           (1,674)              (3,174)
Net cash provided by (used in) financing activities....          (29,520)              (5,885)
                                                                  ------               ------
                                                                $ 10,416             $ 12,354
Net change in cash and cash equivalents................           ======               ======


Supplemental cash flow disclosure:
     Cash paid for interest............................         $  4,355             $  4,514
                                                                  ======               ======
</TABLE>







     See accompanying notes to the unaudited condensed financial statements


                                       14

<PAGE>

                             COSO ENERGY DEVELOPERS
             NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS


(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 30-year power purchase contract expiring 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 financial  statements and the notes
thereto in the audited  financial  statements  for the year ended  December  31,
2001.

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. The provision for doubtful accounts  previously recorded
by CED of $21.8 million for the  nine-months  ended September 30, 2001, has been
reclassified as a reduction of revenue to conform with the 2002 presentation.

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.  For the  nine-month  period  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 reclassifications have been made to the 2001 statements of operations to
conform to the 2002 presentation.


                                     15

<PAGE>

                             COSO POWER DEVELOPERS
                       UNAUDITED CONDENSED BALANCE SHEETS
                             (Dollars in thousands)
<TABLE>
<CAPTION>
                                                                                  September 30,      December 31,
                                                                                      2002              2001
                                                                                                       (Note)
<S>                                                                                <C>                <C>

Assets:
   Cash and cash equivalents................................................       $   7,026          $     ---
   Restricted cash and investments..........................................           6,251              5,517
   Accounts receivable, net.................................................          11,486              3,210
   Prepaid expenses and other assets........................................           1,648                660
   Amounts due from related parties.........................................           6,352              6,139
   Property, plant and equipment, net.......................................         117,856            124,665
   Power purchase agreement, net............................................          20,725             22,820
   Investment in Coso Transmission Line Partners............................           3,316              3,398
   Investment in New CLPSI Company, LLC.....................................           1,903              1,913
   Deferred financing costs, net............................................           1,573              1,736
                                                                                       -----              -----

                                                                                   $ 178,136          $ 170,058
                                                                                     =======            =======


Liabilities and Partners' Capital:
   Accounts payable and accrued liabilities.................................       $   2,842          $  15,860
   Amounts due to related parties...........................................           3,828              7,778
   Project loans............................................................          82,680             84,200
                                                                                      ------             ------
                                                                                      89,350            107,838
Partners' capital...........................................................          88,786             62,220
                                                                                      ------             ------

                                                                                   $ 178,136          $ 170,058
                                                                                     =======            =======
</TABLE>




Note:     The  condensed  balance  sheet at December  31, 2001 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


                                     16

<PAGE>

                             COSO POWER DEVELOPERS
                  UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
                             (Dollars in thousands)
<TABLE>
<CAPTION>
                                                         Three-Months       Three-Months       Nine-Months        Nine-Months
                                                             Ended              Ended             Ended              Ended
                                                         September 30,      September 30,     September 30,      September 30,
                                                             2002               2001              2002               2001
<S>                                                       <C>                <C>                <C>                <C>

Revenue:
   Energy revenues.................................       $  7,791           $  5,006           $ 55,428           $ 17,991
   Capacity revenues...............................          8,047              8,047             14,603             11,745
   Interest and other income.......................            237                881                888              2,135
                                                            ------             ------             ------             ------
          Total revenue............................         16,075             13,934             70,919             31,871

Operating expenses:
   Plant operating expenses........................          2,918              2,360              7,408              7,210
   Royalty expense.................................          2,588              2,316              5,337              8,209
   Depreciation and amortization...................          1,848              3,870              9,507             11,454
                                                            ------             ------             ------             ------
          Total operating expenses.................          7,354              8,546             22,252             26,873

          Operating income.........................          8,721              5,388             48,667              4,998

Other expenses:
   Interest expense................................          1,870              2,003              5,683              6,140
   Amortization of deferred financing costs........             55                192                163                577
                                                            ------             ------             ------             ------
          Total other expenses.....................          1,925              2,195              5,846              6,717

          Net income (loss)........................       $  6,796           $  3,193           $ 42,821           $ (1,719)
                                                            ======             ======             ======             ======
</TABLE>












      See accompanying notes to the unaudited condensed financial statements


                                       17

<PAGE>

                             COSO POWER DEVELOPERS
                  UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
                             (Dollars in thousands)
<TABLE>
<CAPTION>
                                                                       Nine-Months         Nine-Months
                                                                          Ended               Ended
                                                                      September 30,       September 30,
                                                                          2002                2001
<S>                                                                     <C>                 <C>

Net cash provided by (used in) operating activities.............        $ 26,138            $ 19,184
Net cash provided by (used in) investing activities.............          (1,337)               (817)
Net cash provided by (used in) financing activities.............         (17,775)            (14,762)
                                                                          ------              ------
Net change in cash and cash equivalents.........................        $  7,026            $  3,605
                                                                          ======              ======


Supplemental cash flow disclosure:
     Cash paid for interest.....................................        $  3,810            $  4,149
                                                                          ======              ======
</TABLE>













     See accompanying notes to the unaudited condensed financial statements


                                       18

<PAGE>

                             COSO POWER DEVELOPERS
             NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS


(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 20-year power purchase contract expiring 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 financial  statements and the notes
thereto in the audited  financial  statements  for the year ended  December  31,
2001.

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. The provision for doubtful accounts  previously recorded
by CPD of $22.7 million for the  nine-months  ended September 30, 2001, has been
reclassified as a reduction of revenue to conform with the 2002 presentation.

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.  For the  nine-month  period  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 reclassifications have been made to the 2001 statements of operations to
conform to the 2002 presentation.


                                       19

<PAGE>

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

     Except for historical 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,
(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) affects of September 11, 2001, including U.S. Navy
activity and (xiii) the alleged manipulation of the California energy market.

General

     The Coso Partnerships  consist of three 80MW geothermal power plants, which
are referred to as Navy I, BLM and Navy II, and their 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 for $205.0 million in cash, plus the assumption of CalEnergy's
and its affiliates'  share of debt  outstanding at the Coso  Partnerships  which
then totaled approximately $67.0 million.

     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  higher level.  The maximum annual  capacity
     bonus  payment  available is also fixed  throughout  the life of each power
     purchase agreement; and


                                       20


*    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 a Coso Partnership's power purchase agreement expires, Edison makes energy
payments  to the Coso  Partnership  based on  Edison's  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. This avoided cost has now been fixed for
a set period as described  below.  The power purchase  agreements will expire as
follows:  Navy I Partnership in August 2011, the BLM  Partnership in March 2019,
and the Navy II  Partnership  in January  2010.  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.

     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 receive a fixed
avoided cost of energy rate of 5.37 cents per kWh for five (5) years. 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.  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  avoided  cost of 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.  The average avoided cost of energy
paid to the Coso Partnerships for the nine-month period ended September 30, 2002
was 4.43 cents per kWh, as  compared  to 8.94 cents per kWh for the  nine-months
ended September 30, 2001.

     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.  This
formula is largely  based upon the tariff  rates  charged by Edison,  which have
recently been increased by the California  Public Utilities  Commission  (CPUC),
and is subject to future revision. The Navy I Partnership Unit 1 contract energy
pricing has remained  unchanged  for several  years based on a mutual  agreement
between the U.S. Navy and the Navy I Partnership  since one of indecies utilized
in the  calculation  no  longer  existed.  Discussions  with the  U.S.  Navy are
continuing to re-adjust the formula for subsequent  periods. In November 2001, a
modification to the calculation of the reimbursement pricing formula was made to
the U.S.  Navy  Contract  resulting in a reduction of accrued  royalties of $6.5
million,  which was agreed to by the U.S. Navy. The parties have now agreed to a
replacement  index and a true-up  calculation has been developed 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 their 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


                                       21


$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 on behalf of the Coso  Partnerships  who have jointly,  severally,
and unconditionally guaranteed repayment of the senior secured notes.

     On May 28,  1999,  Funding  Corp.  issued  $110.0  million of 6.80%  senior
secured  notes,  which were paid off on December 15, 2001, and $303.0 million of
9.05% senior  secured  notes,  which have  payments due at various dates through
December  15,  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  material
operations apart from issuing the notes.

     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 senior  secured  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  Partnership  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  has
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  did not
recognize  revenue  from  Edison for  energy  delivered  during the period  from
November 1, 2000 through March 26, 2001.  The  provision  for doubtful  accounts
previously  recorded  by the  Navy I,  BLM and  Navy II  Partnerships  of  $21.6
million,  $21.8 million and $22.7  million,  respectively,  for the  nine-months
ended  September  30, 2001 has been  reclassified  as a reduction  of revenue to
conform with the 2002 presentation.

     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  continued  to pay  interest on the  outstanding
amount at 7% per annum. That payment,  which was received during the nine-months
ended September 30, 2001, was made pursuant to the Agreement  between Edison and
the Coso  Partnerships  described above and was also  reclassified as additional
revenue to conform with the 2002 presentation.  On March 1, 2002, Edison reached
certain  financing  milestones and paid the Coso Partnerships in full for energy
generated  between  November 1, 2000 and March 26, 2001 for which no revenue was
recognized  during that period.  For the nine-month  period ended  September 30,
2002,  the Navy I, BLM and Navy II  Partnerships  recognized  revenue for energy
delivered from November 1, 2000 through March 26, 2001 of $37.3  million,  $37.1
million and $38.0 million, respectively.


                                       22


     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 Supreme Court of  California.  The appeals
court stated that if the settlement  Agreement  violated  California  state law,
then the  appeals  court  would be  required  to void the  stipulated  judgment.
Pending a response from the California  Supreme Court the  settlement  Agreement
remains in full force and effect.

     On March 27, 2001,  the CPUC  instituted a new formula to measure  Edison's
short run  avoided  costs  ("SRAC"),  which is the  basis  for a portion  of the
payments that Edison makes to the Coso Partnerships under their respective power
purchase agreement.  In a decision dated September 4, 2002, the California Court
of Appeal ruled that the CPUC erred in not considering the possible  retroactive
application  of the revised SRAC formula to deliveries  beginning on December 1,
2000.  The  California  Court of Appeal  remanded the matter back to the CPUC to
make such a consideration.

     Edison  filed a  petition  for a writ of  review of the  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 Appeal  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.
The Coso  Partnerships  plan to appeal this decision in the California  Court of
Appeal.

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.

     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                    Nine-Months
                                                        Ended                           Ended
                                                     September 30                    September 30
   <S>                                          <C>             <C>             <C>             <C>

                                                2002            2001            2002            2001
                                                ----            ----            ----            ----

   Navy I Partnership (stand alone)
     Operating capacity factor                 104.8%          110.1%          104.6%          107.9%
     Capacity (MW) (average)                    83.81           88.10           83.69           86.29
     kWh produced (000s)                       185,058         194,525         548,312         565,345

   BLM Partnership (stand alone)
     Operating capacity factor                  92.6%           99.3%           93.5%          103.2%
     Capacity (MW) (average)                    74.09           79.45           74.83           82.55
     kWh produced (000s)                       163,586         175,417         490,280         540,837

   Navy II Partnership (stand alone)
     Operating capacity factor                  96.4%          102.0%           99.8%          103.5%
     Capacity (MW) (average)                    77.13           81.64           79.86           82.83
     kWh produced (000s)                       170,295         180,257         523,261         542,677
</TABLE>

                                       23

     The declines in total energy  production for the Navy I Partnership for the
three and  nine-months  ended September 30, 2002 as compared to the same periods
in 2001, were not significant.  Total energy  production for the BLM Partnership
was 163.6 million kWh and 490.3 million kWh for the three and nine-months  ended
September  30, 2002,  respectively,  as compared to 175.4  million kWh and 540.8
million  kWh  for  the  same  periods  in  2001,  decreases  of  6.7%  and  9.3%
respectively.  Total energy  production  for the Navy II  Partnership  was 170.3
million kWh for the  three-months  ended September 30, 2002 as compared to 180.3
million kWh for the same period in 2001, a decrease of 5.5%.  These decreases in
energy  production for the Navy I, BLM and Navy II  Partnerships  were primarily
due to a decline in steam which they are  attempting  to remediate  through well
maintenance and capital improvements.

Results of Operations for the three and nine-months ended September 30, 2002 and
2001

     The following  discusses the results of operations of the Coso Partnerships
for the three and nine-months  ended September 30, 2002 and 2001 (dollar amounts
in tables are in thousands, except per kWh data):

Revenue
<TABLE>
<CAPTION>


                                   Three-Months         Three-Months         Nine-Months          Nine-Months
                                       Ended                Ended               Ended                Ended
                                   September 30,        September 30,       September 30,        September 30,
                                       2002                 2001                2002                 2001
<S>                               <C>       <C>        <C>       <C>        <C>       <C>        <C>       <C>

                                   $     Cents/kWh      $     Cents/kWh      $     Cents/kWh      $     Cents/kWh
                                   -     ---------      -     ---------      -     ---------      -     ---------
Total Operating Revenues
  Navy I Partnership             19,761     10.7      15,856      8.1      79,587     14.5      45,701      8.1
  BLM Partnership                16,591     10.2      14,055      8.1      71,261     14.6      37,192      6.9
  Navy II Partnership            15,838      9.3      13,053      7.3      70,031     13.4      29,736      5.5

Capacity & Capacity Bonus
Revenues
  Navy I Partnership              8,190      4.4       8,190      4.2      14,904      2.7      11,955      2.1
  BLM Partnership                 8,002      4.9       8,002      4.6      14,537      3.0      11,682      2.2
  Navy II Partnership             8,047      4.7       8,047      4.5      14,603      2.8      11,745      2.2

Energy Revenues
  Navy I Partnership             11,571      6.3       7,666      3.9      64,683     11.8      33,746      6.0
  BLM Partnership                 8,589      5.3       6,053      3.5      56,724     11.6      25,510      4.7
  Navy II Partnership             7,791      4.6       5,006      2.8      55,428     10.6      17,991      3.3

</TABLE>

     Total  operating  revenues  for the Navy I,  BLM and Navy II  Partnerships,
which consist of capacity payments, capacity bonus payments and energy payments,
were $19.8  million,  $16.6  million and $15.8  million,  respectively,  for the
three-months  ended  September  30, 2002,  as compared to $15.9  million,  $14.1
million and $13.1 million,  respectively, for the same period in 2001, increases
of 24.5%, 17.7%, and 20.6%, respectively.  Total energy revenues for the Navy I,
BLM and Navy II Partnerships were $11.6 million,  $8.6 million and $7.8 million,
respectively, for the three-months ended September 30, 2002, as compared to $7.7
million,  $6.1 million and $5.0  million,  respectively,  for the same period in
2001,   increases  of  50.6%,   41.0%,  and  56.0%,   respectively.   Each  Coso
Partnership's  increase in energy revenues for the three-months  ended September
30,  2002,  as  compared  to the same period in 2001,  was  primarily  due to an
increase in the average avoided cost of energy of 5.37 cents per kWh paid during
the  three-months  ended  September  30, 2002, as compared to 3.60 cents per kWh
paid for the  three-months  ended September 30, 2001. The increase in price was,
partially offset by a decrease in production.

     Total  operating  revenues  for the Navy I,  BLM and Navy II  Partnerships,
which consist of capacity payments, capacity bonus payments and energy payments,
were $79.6  million,  $71.3  million and $70.0  million,  respectively,  for the
nine-months  ended  September  30,  2002,  as compared to $45.7  million,  $37.2
million and $29.7 million,  respectively, for the same period in 2001, increases
of $33.9 million,  $34.1 million and $40.3 million,  respectively.  Capacity and
capacity  bonus revenues  for each  of the Navy I, BLM and Navy II Partnerships


                                       24


were $14.9  million,  $14.5  million and $14.6  million,  respectively,  for the
nine-months  ended  September  30,  2002,  as compared to $12.0  million,  $11.7
million and $11.7 million,  respectively, for the same period in 2001, increases
of 24.2%,  23.9%, and 24.8%,  respectively.  Energy revenues for the Navy I, BLM
and Navy II  Partnerships  were $64.7 million,  $56.7 million and $55.4 million,
respectively,  for the  nine-months  ended  September  30, 2002,  as compared to
$33.7million, $25.5 million and $18.0 million, respectively, for the same period
in  2001,  increases  of  $31.0  million,   $31.2  million  and  $37.4  million,
respectively.  Each Coso Partnership's increase in capacity,  capacity bonus and
energy revenues for the nine-months ended September 30, 2002, as compared to the
same period in 2001, was due to Edison's payment,  on March 1, 2002, for revenue
generated but not  recognized for the period from November 1, 2000 through March
26,  2001  discussed  above.  The Navy I, BLM and Navy II  Partnerships  had not
recognized  revenues  of  $21.6  million,   $21.8  million  and  $22.7  million,
respectively,  for the nine-months ended September 30, 2001.  Revenues generated
but not recognized for the period November 1, 2000 through March 1, 2002 for the
Navy I, BLM and Navy II Partnerships  of $37.3 million,  $37.1 million and $38.0
million,  respectively,  were paid and recognized  during the nine-months  ended
September  30, 2002.  These  increases  were  partially  offset by a decrease in
production  during the  nine-months  ended September 30, 2002 as compared to the
same period in 2001.

Interest and Other Income
<TABLE>
<CAPTION>

                              Three-Months             Three-Months              Nine-Months              Nine-Months
                                  Ended                    Ended                    Ended                    Ended
                           September 30, 2002       September 30, 2001       September 30, 2002       September 30, 2001
 <S>                        <C>       <C>            <C>        <C>           <C>        <C>           <C>        <C>

                             $     Cents/kWh          $      Cents/kWh         $      Cents/kWh         $      Cents/kWh
                             -     ---------          -      ---------         -      ---------         -      ---------
  Navy I Partnership         136       0.1            977        0.5         1,655        0.3         2,155        0.4
  BLM Partnership            267       0.2          1,040        0.6         1,169        0.2         2,877        0.5
  Navy II Partnership        237       0.1            881        0.5           888        0.2         2,135        0.4

</TABLE>
     Interest and other income for the Navy I, BLM and Navy II Partnerships were
$.1 million,  $.3 million and $.2 million,  respectively,  for the  three-months
ended  September  30, 2002,  as compared to $1.0  million,  $1.0 million and $.9
million, respectively for the same period in 2001, decreases of $.9 million, $.7
million  and $.7  million,  respectively.  Each Coso  Partnership's  decrease in
interest and other income for the  three-months  ended  September  30, 2002,  as
compared to the same period in 2001, was primarily due to interest on amounts in
arrears that were settled and paid by Edison on March 1, 2002.

     The Navy I Partnership's interest and other income was $1.7 million for the
nine-months  ended  September 30, 2002, as compared to $2.2 million for the same
period in 2001,  a decrease of 22.7%.  The decrease in interest and other income
for the nine-months  ended September 30, 2002, as compared to the same period in
2001,  was primarily due to interest on amounts in arrears that were settled and
paid by Edison on March 1,  2002,  partially  offset by the  collection  of $0.8
million  of  insurance  proceeds  in 2002 for lost  revenue  in 1999  caused  by
equipment failure.

     The BLM and Navy II  Partnerships  interest  and  other  income  were  $1.2
million  and  $.9  million  for  the  nine-months   ended  September  30,  2002,
respectively, as compared to $2.9 million and $2.1 million, respectively for the
same periods in 2001, decreases of 58.6% and 57.1%, respectively.  The decreases
for the BLM and Navy II  Partnerships  in  interest  and  other  income  for the
nine-month  period ended  September  30, 2002, as compared to the same period in
2001, were primarily due to interest on amounts in arrears that were settled and
paid by Edison on March 1, 2002.


                                       25


Plant Operations
<TABLE>
<CAPTION>
                               Three-Months            Three-Months             Nine-Months             Nine-Months
                                   Ended                   Ended                   Ended                   Ended
                            September 30, 2002      September 30, 2001      September 30, 2002      September 30, 2001
  <S>                        <C>      <C>            <C>      <C>            <C>      <C>            <C>      <C>

                              $     Cents/kWh         $      Cents/kWh        $      Cents/kWh        $      Cents/kWh
                              -     ---------         -      ---------        -      ---------        -      ---------
  Navy I Partnership        2,811      1.5          2,055       1.1         7,379       1.3         6,629       1.1
  BLM Partnership           3,328      2.0          2,384       1.4         8,581       1.8         7,592       1.4
  Navy II Partnership       2,918      1.7          2,360       1.3         7,408       1.4         7,210       1.3
</TABLE>

     Plant   operating   expenses,   including   operating   and   general   and
administrative  for the Navy I, BLM and Navy II Partnerships  were $2.8 million,
$3.3  million  and  $2.9  million,  respectively,  for  the  three-months  ended
September 30, 2002, as compared to $2.1 million,  $2.4 million and $2.4 million,
respectively,  for the same period in 2001,  increases of 33%,  37.5% and 20.8%,
respectively.  Plant  operating  expenses,  including  operating and general and
administrative  for the Navy I, BLM and Navy II Partnerships  were $7.4 million,
$8.6 million and $7.4 million, respectively, for the nine-months ended September
30,  2002,  as  compared  to  $6.6  million,  $7.6  million  and  $7.2  million,
respectively,  for the same period in 2001,  increases of 12.1%, 13.2% and 2.8%,
respectively.  Each Coso Partnership's increase in operating expenses, including
operating and general and  administrative  for the three and nine-month  periods
ended  September 30, 2002, as compared to the same periods in 2001,  were due to
increases in insurance costs, property taxes and repair and maintenance projects
that had been deferred in 2001 due to Edison's non-payment,  partially offset by
a reduction in legal costs.  The  increased  property  taxes for Navy I, BLM and
Navy  II  Partnerships  primarily  resulted  from a  correction  to  their  2001
assessment of $670,000, $720,000 and $610,000, respectively, billed to each Coso
Partnership in 2002.

Royalty Expense
<TABLE>
<CAPTION>
                              Three-Months            Three-Months             Nine-Months             Nine-Months
                                  Ended                   Ended                   Ended                   Ended
                           September 30, 2002      September 30, 2001      September 30, 2002      September 30, 2001
  <S>                       <C>      <C>            <C>      <C>              <C>      <C>          <C>       <C>

                             $     Cents/kWh         $     Cents/kWh         $     Cents/kWh         $      Cents/kWh
                             -     ---------         -     ---------         -     ---------         -      ---------
  Navy I Partnership       5,762      3.1          7,005      3.6         11,393      2.1         13,759       2.4
  BLM Partnership          1,482      0.9            967      0.6          2,157      0.4          4,993       0.9
  Navy II Partnership      2,588      1.5          2,316      1.3          5,337      1.0          8,209       1.5
</TABLE>

     The  Navy I  Partnership's  royalty  expenses  were  $5.8  million  for the
three-months  ended September 30, 2002, as compared to $7.0 million for the same
period in 2001, a decrease of 17.1%.  The  decrease in royalty  expenses for the
Navy I Partnership for the three-months ended September 30, 2002, as compared to
the same period in 2001, was primarily due to an adjustment  booked in 2001 that
increased  prior period  royalty  expense for Unit 1 by $1.8 million,  partially
offset by current period  increases in Units 2 and 3 royalty  expenses due to an
increase in avoided  cost of energy from 3.60 cents per kWh for the three months
ending September 30, 2001 to 5.37 cents per kWh for the same period in 2002.

     The Navy I  Partnership's  royalty  expenses  were  $11.4  million  for the
nine-months  ended  September 30, 2002, as compared to $13.8 for the same period
in 2001,  a decrease of 17.4%.  The  decrease in royalty  expense for the Navy I
Partnership  for the nine-month  period ended September 30, 2002, as compared to
the same period in 2001,  was  primarily due to the decrease in the avoided cost
of energy from 8.94 cents per kWh for the  nine-months  ended September 30, 2001
to 4.43  cents  per kWh for the same  period  in 2002,  partially  offset by the
increase in Unit 1 royalty expense in 2001 discussed above.


                                       26


     The BLM  Partnership's  royalty expenses were $1.5 million and $2.2 million
for the three  and  nine-months  ended  September  30,  2002,  respectively,  as
compared to $1.0  million  and $5.0  million  for the same  periods in 2001,  an
increase  of  50.0%  and  a  decrease  of  56.0%   respectively.   The  Navy  II
Partnership's  royalty expenses were $2.6 million and $5.3 million for the three
and  nine-months  ended  September 30, 2002,  respectively,  as compared to $2.3
million and $8.2 million for the same periods in 2001,  an increase of 13.0% and
a decrease of 35.4%,  respectively.  The  increases  in royalty  expense for the
three-month  period ended  September  30, 2002 as compared to the same period in
2001 were due to the  increase in avoided cost of energy from 3.60 cents per kWh
or the three months ending September 30, 2001 to 5.37 cents per kWh for the same
period in 2002. The decreases in the nine-month  period ended September 30, 2002
as  compared  to the same  period in 2001 were due to a decrease  in the avoided
cost of energy from 8.94 cents per kWh for the  nine-months  ended September 30,
2001 to 4.43 cents per kWh for the same period in 2002.

Depreciation and Amortization
<TABLE>
<CAPTION>
                                  Three-Months            Three-Months             Nine-Months             Nine-Months
                                      Ended                   Ended                   Ended                   Ended
                               September 30, 2002      September 30, 2001      September 30, 2002      September 30, 2001
  <S>                          <C>     <C>             <C>     <C>            <C>      <C>            <C>      <C>

                                 $     Cents/kWh         $     Cents/kWh         $     Cents/kWh         $     Cents/kWh
                                 -     ---------         -     ---------         -     ---------         -     ---------
  Navy I Partnership           3,049      1.6          2,647      1.4          8,126      1.5          7,687      1.4
  BLM Partnership              3,903      2.4          4,009      2.3         12,135      2.5         11,884      2.2
  Navy II Partnership          1,848      1.1          3,870      2.1          9,507      1.8         11,454      2.1
</TABLE>


The Navy I  Partnership's  depreciation  and  amortization  expenses  were  $3.0
million  and $8.1  million,  respectively  for the three and  nine-months  ended
September  30,  2002,  as compared to $2.6 million and $7.7 million for the same
period in 2001, increases of 15.4% and 5.2%, respectively.  These increases were
due to an increase in capitalized assets during the three and nine-month periods
ended September 30, 2002.

The Navy II  Partnership's  depreciation  and  amortization  expense  were  $1.8
million  and $9.5  million,  respectively  for the three and  nine-months  ended
September  30, 2002,  as compared to $3.9 million and $11.5 million for the same
period in 2001, decreases of 53.8% and 17.4%, respectively. These decreases were
due to certain  wells being fully  depreciated  during the three and  nine-month
periods ending September 30, 2002.

Interest Expense
<TABLE>
<CAPTION>
                                    Three-Months            Three-Months             Nine-Months             Nine-Months
                                        Ended                   Ended                   Ended                   Ended
                                 September 30, 2002      September 30, 2001      September 30, 2002      September 30, 2001
  <S>                             <C>      <C>            <C>      <C>            <C>      <C>             <C>     <C>

                                   $     Cents/kWh         $     Cents/kWh         $     Cents/kWh         $     Cents/kWh
                                   -     ---------         -     ---------         -     ---------         -     ---------
  Navy I Partnership             2,668      1.4          2,896      1.5          8,216      1.5          8,851      1.6
  BLM Partnership                2,120      1.3          2,225      1.3          6,477      1.3          6,733      1.2
  Navy II Partnership            1,870      1.1          2,003      1.1          5,683      1.1          6,140      1.1
</TABLE>

     The Navy I Partnership's interest expense was $2.7 million and $8.2 million
for the three  and  nine-months  ended  September  30,  2002,  respectively,  as
compared  to $2.9  million  and  $8.9  million  for the  same  periods  in 2001,
decreases  of 6.9% and 7.9%  respectively.  The Navy II  Partnership's interest


                                       27


expense was $1.9  million and $5.7 million for the three and  nine-months  ended
September 30, 2002,  respectively,  as compared to $2.0 million and $6.1 million
for the same  periods  in 2001,  decreases  of 5.0% and 6.6%  respectively.  The
decreases in interest  expense for the Navy I and Navy II  Partnerships  for the
three and nine-month  periods ended  September 30, 2002, as compared to the same
periods in 2001,  were due to reductions in the principal  amount of the project
loan from Funding Corp.

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.
As of December 2001, the 6.8% notes were repaid,  subsequently  leaving the Coso
Partnerships  with increased annual cash flow. The Coso  Partnerships  have used
their cash  primarily  for capital  expenditures  for power  plant and  resource
improvements,  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.  Edison's  shortfall in
collections,  coupled with its near term capital  requirements,  materially  and
adversely  affected its liquidity.  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 Supreme  Court of  California.  The appeals  court stated that if the
Agreement violated California state law then the appeals court would be required
to void the stipulated judgment.  Pending a response from the California Supreme
Court the  Agreement  remains in full force and effect.  Immediately  after this
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  2000 through  March 26, 2001.  The  Agreement,  as amended,  was
approved by 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.

     The following  table sets forth a summary of each Coso  Partnership's  cash
flows for the nine-months ended September 30, 2002 and September 30, 2001.
<TABLE>
<CAPTION>
                                                                  Nine-Months           Nine-Months
                                                                     Ended                 Ended
                                                                 September 30,         September 30,
                                                                     2002                  2001
<S>                                                               <C>                   <C>


Navy I Partnership (stand alone)
  Net cash provided by (used in) operating activities             $  54,861             $  20,461
  Net cash provided by (used in) investing activities                (4,546)               (1,867)
  Net cash provided by (used in) financing activities               (40,568)               (8,381)
                                                                     ------                ------
      Net change in cash and cash equivalents                     $   9,747             $  10,213
                                                                     ======                ======
</TABLE>

                                       28
<TABLE>
<CAPTION>
<S>                                                               <C>                   <C>
BLM Partnership (stand alone)
  Net cash provided by (used in) operating activities             $  41,610             $  21,413
  Net cash provided by (used in) investing activities                (1,674)               (3,174)
  Net cash provided by (used in) financing activities               (29,520)               (5,885)
                                                                     ------                ------
      Net change in cash and cash equivalents                     $  10,416             $  12,354
                                                                     ======                ======

Navy II Partnership (stand alone)
  Net cash provided by (used in) operating activities             $  26,138             $  19,184
  Net cash provided by (used in) investing activities                (1,337)                 (817)
  Net cash provided by (used in) financing activities               (17,725)              (14,762)
                                                                     ------                ------
      Net change in cash and cash equivalents                     $   7,026             $   3,605
                                                                     ======                ======
</TABLE>
     The Navy I Partnership's cash flows from operating  activities increased by
$34.4 million for the  nine-months  ended September 30, 2002, as compared to the
same period in 2001,  primarily  due to the increase in net income from the cash
received for Edison's  payment for revenue  generated but not recognized for the
period from November 1, 2000 through March 26, 2001.

     Cash used in investing  activities at the Navy I  Partnership  increased by
$2.7 million for the  nine-months  ended  September 30, 2002, as compared to the
same  period  in  2001,   primarily  due  to  an  increase  in  restricted  cash
requirements  associated  with the project loan from Funding Corp. and increases
in capital expenditures.

     The Navy I  Partnership's  cash used in financing  activities  increased by
$32.2 million for the  nine-months  ended September 30, 2002, as compared to the
same period in 2001,  due to increased  partner  distributions  paid during that
period in 2002.

     The BLM  Partnership's  cash flows from operating  activities  increased by
$20.2 million for the  nine-months  ended September 30, 2002, as compared to the
same period in 2001,  primarily  due to the increase in net income from the cash
received for Edison's  payment for revenue  generated but not recognized for the
period from November 1, 2000 through March 26, 2001.

     Cash used in investing activities at the BLM Partnership  decreased by $1.5
million for the  nine-months  ended  September 30, 2002, as compared to the same
period in 2001,  primarily due to a decrease in capital  expenditures  partially
offset by an  increase  in  restricted  cash  requirements  associated  with the
project loan from Funding Corp.

     The BLM Partnership's cash used in financing  activities increased by $23.6
million for the  nine-months  ended  September 30, 2002, as compared to the same
period in 2001, due to increased partner  distributions  paid during that period
in 2002.

     The Navy II Partnership's cash flows from operating activities increased by
$7.0 million for the  nine-months  ended  September 30, 2002, as compared to the
same period in 2001,  primarily  due to the increase in net income from the cash
received for Edison's  payment for revenue  generated but not recognized for the
period from November 1, 2000 through March 26, 2001.

     Cash used in investing  activities at the Navy II Partnership  increased by
$.5 million for the  nine-months  ended  September  30, 2002, as compared to the
same  period  in  2001,   primarily  due  to  an  increase  in  restricted  cash
requirements  associated  with the project loan from Funding Corp. and increases
in capital expenditures.

     The Navy II Partnership's  cash used in financing  activities  increased by
$3.0 million for the  nine-months  ended  September 30, 2002, as compared to the
same period in 2001,  due to increased  partner  distributions  paid during that
period in 2002.


                                       29


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.

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.


                                       30


<PAGE>
                               COSO PARTNERSHIPS
                  UNAUDITED CONDENSED COMBINED BALANCE SHEETS
                             (Dollars in thousands)
<TABLE>
<CAPTION>
                                                                                      September 30,       December 31,
                                                                                          2002               2001
<S>                                                                                   <C>                 <C>
Assets:
   Cash and cash equivalents....................................................       $  27,453          $     264
   Restricted cash and investments..............................................          38,910             34,210
   Accounts receivable, net.....................................................          34,766              9,603
   Prepaid expenses and other assets............................................           5,140              2,159
   Amounts due from related parties.............................................           6,648              6,488
   Property, plant and equipment, net...........................................         390,368            413,519
   Power purchase agreement, net................................................          48,590             52,350
   Investments..................................................................          12,545             12,843
   Deferred financing costs, net................................................           5,709              6,300
                                                                                         -------            -------
                                                                                       $ 570,129          $ 537,736
                                                                                         =======            =======

Liabilities and Partners' Capital:
   Accounts payable and accrued liabilities.....................................       $  22,720          $  42,362
   Amounts due to related parties...............................................          33,266             24,967
   Project loans................................................................         294,289            303,000
                                                                                         -------            -------
                                                                                         350,275            370,329
Partners' capital...............................................................         219,854            167,407
                                                                                         -------            -------
                                                                                       $ 570,129          $ 537,736
                                                                                         =======            =======
</TABLE>







See accompanying notes to the unaudited condensed combined financial statements.


                                       31

<PAGE>

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

<TABLE>
<CAPTION>
                                                         Three-Months      Three-Months       Nine-Months      Nine-Months
                                                             Ended             Ended             Ended            Ended
                                                         September 30,     September 30,     September 30,    September 30,
                                                             2002              2001              2002             2001

<S>                                                       <C>               <C>               <C>              <C>
Revenue:
   Energy revenues..................................      $ 27,951          $ 18,725          $ 176,835        $ 77,233
   Capacity revenues................................        24,239            24,239             44,044          35,396
   Interest and other income........................           640             2,898              3,712           7,167
                                                            ------            ------             ------          ------
          Total revenue.............................        52,830            45,862            224,591         119,796

Operating expenses:
   Plant operating expenses.........................         9,057             6,799             23,368          21,431
   Royalty expense..................................         9,832            10,288             18,887          26,961
   Depreciation and amortization....................         8,800            10,526             29,768          31,025
                                                            ------            ------             ------          ------
          Total operating expenses..................        27,689            27,613             72,023          79,417

          Operating income..........................        25,141            18,249            152,568          40,379

Other expenses:
   Interest expense.................................         6,658             7,124             20,376          21,724
   Amortization of deferred financing costs.........           198               401                591           1,205
                                                            ------            ------             ------          ------
          Total other expenses......................         6,856             7,525             20,967          22,929


          Net income.................................     $ 18,285          $ 10,724          $ 131,601        $ 17,450
                                                            ======            ======            =======          ======
</TABLE>







See accompanying notes to the unaudited condensed combined financial statements.


                                       32

<PAGE>

                                COSO PARTNERSHIPS
              UNAUDITED CONDENSED COMBINED STATEMENTS OF CASH FLOWS
                             (Dollars in thousands)
<TABLE>
<CAPTION>
                                                                 Nine-Months          Nine-Months
                                                                    Ended                Ended
                                                                September 30,        September 30,
                                                                    2002                 2001

<S>                                                               <C>                  <C>
Net cash provided by (used in) operating activities...            $ 122,607            $  61,058
Net cash provided by (used in) investing activities...               (7,557)              (5,858)
Net cash provided by (used in) financing activities...              (87,861)             (29,028)
                                                                     ------               ------
Net change in cash and cash equivalents...............            $  27,189            $  26,172
                                                                     ======               ======

Supplemental cash flow disclosure:
    Cash paid for interest............................            $  13,710            $  14,631
                                                                     ======               ======
</TABLE>








See accompanying notes to the unaudited condensed combined financial statements.


                                       33

<PAGE>

                                COSO PARTNERSHIPS
                    NOTES TO THE UNAUDITED CONDENSED COMBINED
                              FINANCIAL STATEMENTS


(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

The Coso  Partnerships  sell all  electricity  produced to  Southern  California
Edison (Edison) under long-term power purchase contracts. 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.  The  provision  for  doubtful  accounts  previously  recorded by the Coso
Partnerships of $66.1 million for the nine-months  ended September 30, 2001, has
been   reclassified  as  a  reduction  of  revenue  to  conform  with  the  2002
presentation.

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-month period 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 reclassifications have been made to the 2001 statements of operations to
conform to the 2002 presentation.


                                       34

<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

The Coso  Partnerships  filed a current  report on Form 8-K dated  September 23,
2002 reporting issues  surrounding the settlement  agreement  between Edison and
the CPUC, the court of appeals  decision on line loss factors,  and the court of
appeals decision regarding retroactive application of SRAC rates.


                                       35

<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-31-2001           DEC-31-2002
                                             -----------           -----------
                                             mmm-dd-yyyy           mmm-dd-yyyy
PERIOD START
(example: JAN-01-1997)                       Jan-01-2001           JAN-01-2002
                                             -----------           -----------
                                             mmm-dd-yyyy           mmm-dd-yyyy
PERIOD END
(example: SEP-30-1997)                       Dec-31-2001           SEP-30-2002
                                             -----------           -----------
                                             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                                            304,225                     302,174
ALLOWANCES                                                   0                           0
INVENTORY                                                    0                           0
CURRENT ASSETDS                                          1,225                       7,883
PP&E                                                         0                           0
DEPRECIATION                                                 0                           0
TOTAL ASSETS                                           304,225                     302,174
CURRENT LIABILITIES                                      1,225                       7,883
BONDS                                                  303,000                     294,291
PREFERRED MANDATORY                                          0                           0
PREFERRED                                                    0                           0
COMMON                                                       0                           0
OTHER SE                                                     0                           0
TOTAL LIABILITY AND EQUITY                             304,225                     302,174
SALES                                                        0                           0
TOTAL REVENUES                                          28,820                      20,369
CGS                                                          0                           0
TOTAL COSTS                                                  0                           0
OTHER EXPENSES                                               0                           0
LOSS PROVISION                                               0                           0
INTEREST EXPENSES                                       28,820                      20,369
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-31-2001          DEC-31-2002
                                            -----------          -----------
                                            mmm-dd-yyyy          mmm-dd-yyyy
PERIOD START
(example: JAN-01-1997)                      Jan-01-2001          JAN-01-2002
                                            -----------          -----------
                                            mmm-dd-yyyy          mmm-dd-yyyy
PERIOD END
(example: SEP-30-1997)                      Dec-31-2001          SEP-30-2002
                                            -----------          -----------
                                            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                                                       264                      10,011
SECURITIES                                              21,325                      24,239
RECEIVABLES                                             12,816                      14,131
ALLOWANCES                                                   0                           0
INVENTORY                                                    0                           0
CURRENT ASSETS                                          13,730                      25,688
PP&E                                                   229,084                     230,664
DEPRECIATION                                            88,647                      95,860
TOTAL ASSETS                                           193,114                     201,210
CURRENT LIABILITIES                                     18,139                      20,912
BONDS                                                  122,550                     117,911
PREFERRED MANDATORY                                          0                           0
PREFERRED                                                    0                           0
COMMON                                                       0                           0
OTHER SE                                                     0                           0
TOTAL LIABILITY AND EQUITY                             193,114                     201,210
SALES                                                   53,400                      79,587
TOTAL REVENUES                                          56,328                      81,242
CGS                                                          0                           0
TOTAL COSTS                                                  0                           0
OTHER EXPENSES                                          29,182                      26,898
LOSS PROVISION                                               0                           0
INTEREST EXPENSES                                       12,437                       8,453
INCOME PRETAX                                                0                           0
INCOME TAX                                                   0                           0
INCOME CONTINUING                                            0                           0
DISCONTINUED                                                 0                           0
EXTRAORDINARY                                                0                           0
CHANGES                                                      0                           0
NET INCOME                                              14,709                      45,891
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-31-2001          DEC-31-2002
                                            -----------          -----------
                                            mmm-dd-yyyy          mmm-dd-yyyy
PERIOD START
(example: JAN-01-1997)                      Jan-01-2001          JAN-01-2002
                                            -----------          -----------
                                            mmm-dd-yyyy          mmm-dd-yyyy
PERIOD END
(example: SEP-30-1997)                      Dec-31-2001          SEP-30-2002
                                            -----------          -----------
                                            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                      10,416
SECURITIES                                               7,368                       8,420
RECEIVABLES                                              3,340                      11,598
ALLOWANCES                                                   0                           0
INVENTORY                                                    0                           0
CURRENT ASSETS                                           4,189                      23,960
PP&E                                                   247,203                     247,708
DEPRECIATION                                            98,786                     110,000
TOTAL ASSETS                                           183,978                     192,936
CURRENT LIABILITIES                                     34,966                      30,555
BONDS                                                   96,250                      93,700
PREFERRED MANDATORY                                          0                           0
PREFERRED                                                    0                           0
COMMON                                                       0                           0
OTHER SE                                                     0                           0
TOTAL LIABILITY AND EQUITY                             183,978                     192,936
SALES                                                   44,041                      71,261
TOTAL REVENUES                                          47,807                      72,430
CGS                                                          0                           0
TOTAL COSTS                                                  0                           0
OTHER EXPENSES                                          31,396                      22,873
LOSS PROVISION                                               0                           0
INTEREST EXPENSES                                        9,398                       6,668
INCOME PRETAX                                                0                           0
INCOME TAX                                                   0                           0
INCOME CONTINUING                                            0                           0
DISCONTINUED                                                 0                           0
EXTRAORDINARY                                                0                           0
CHANGES                                                      0                           0
NET INCOME                                               7,013                      42,889
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
                                          --- ---         --- ---
                                                  YEAR            YEAR
                                              ---             ---
                                            (for annual report filings)
                                                  OTHER           OTHER
                                              ---             ---
FISCAL YEAR END
(example: DEC-31-1997)                      Dec-31-2001          DEC-31-2002
                                            -----------          -----------
                                            mmm-dd-yyyy          mmm-dd-yyyy
PERIOD START
(example: JAN-01-1997)                      Jan-01-2001          JAN-01-2002
                                            -----------          -----------
                                            mmm-dd-yyyy          mmm-dd-yyyy
PERIOD END
(example: SEP-30-1997)                      Dec-31-2001          SEP-30-2002
                                            -----------          -----------
                                            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                       7,026
SECURITIES                                               5,517                       6,251
RECEIVABLES                                              9,349                      17,838
ALLOWANCES                                                   0                           0
INVENTORY                                                    0                           0
CURRENT ASSETS                                          10,009                      26,512
PP&E                                                   209,652                     210,103
DEPRECIATION                                            84,987                      92,247
TOTAL ASSETS                                           170,058                     178,136
CURRENT LIABILITIES                                     23,638                       6,670
BONDS                                                   84,200                      82,680
PREFERRED MANDATORY                                          0                           0
PREFERRED                                                    0                           0
COMMON                                                       0                           0
OTHER SE                                                     0                           0
TOTAL LIABILITY AND EQUITY                             170,058                     178,136
SALES                                                   36,389                      70,031
TOTAL REVENUES                                          39,272                      70,919
CGS                                                          0                           0
TOTAL COSTS                                                  0                           0
OTHER EXPENSES                                          34,408                      22,252
LOSS PROVISION                                               0                           0
INTEREST EXPENSES                                        9,247                       5,846
INCOME PRETAX                                                0                           0
INCOME TAX                                                   0                           0
INCOME CONTINUING                                            0                           0
DISCONTINUED                                                 0                           0
EXTRAORDINARY                                                0                           0
CHANGES                                                      0                           0
NET INCOME                                             (4,383)                      42,821
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

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

1.   I have  reviewed  this  quarterly  report  on Form 10-Q of  Caithness  Coso
     Funding Corp.;

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 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 the 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 12, 2002                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

I, Christopher T. McCallion, certify that:

1.   I have  reviewed  this  quarterly  report  on Form 10-Q of  Caithness  Coso
     Funding Corp.;

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 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 the 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 12, 2002                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.  (the
Company) on Form 10-Q for the period ending September 30, 2002 as filed with the
Securities and Exchange  Commission on the date hereof (the "Report"),  I, James
D. Bishop, Sr., Chief Executive Officer of the Company,  certify, pursuant to 18
U.S.C.  Section 1350, as adopted  pursuant to Section 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
Company.



Date: November 12, 2002                 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.  (the
Company) on Form 10-Q for the period ended  September 30, 2002 as filed with the
Securities  and  Exchange  Commission  on the date  hereof  (the  "Report"),  I,
Christopher  T.  McCallion,  Chief  Financial  Officer of the Company,  certify,
pursuant to 18 U.S.C.  Section 1350,  as adopted  pursuant to Section 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
Company.



Date: November 12, 2002                 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.



Date:  November 12, 2002        CAITHNESS COSO FUNDING CORP.,
                                a Delaware corporation

                                 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

                                 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

                                 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

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