+                 FORM 10-Q -- QUARTERLY REPORT UNDER SECTION 13
                 OR 15(d) OF THE SECURITES EXCHANGE ACT OF 1934

(MarkOne)
[X]  Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
     Act of 1934 For the quarterly period ended    September 30, 2001
                                                   ------------------

                                       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)

 1114 Avenue of the Americas, 41st Floor, New York, New York      10036-7790
 -----------------------------------------------------------      ----------
       (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 7, 2001
       ------------------------------------------------------------------


<PAGE>


                          CAITHNESS COSO FUNDING CORP.
                                    Form 10-Q
                    For the Quarter Ended September 30, 2001


PART I.  FINANCIAL INFORMATION                                          Page No.

ITEM 1.  Financial Statements

   Caithness Coso Funding Corp.
   Unaudited condensed balance sheets at September 30, 2001 and
     December 31, 2000                                                        4
   Unaudited condensed statements of operations for the three-months
     ended September 30, 2001, the three-months ended September 30, 2000,
     the nine-months ended September 30, 2001, and the nine-months ended
     September 30, 2000                                                       5
   Unaudited condensed statements of cash flows for the nine-months
     ended September 30, 2001 and the nine-months ended September 30, 2000    6
   Notes to the unaudited condensed financial statements                      7

   Coso Finance Partners
   Unaudited condensed balance sheets at September 30, 2001 and
     December 31, 2000                                                        8
   Unaudited condensed statements of operations for the three-months
     ended September 30, 2001, the three-months ended September 30, 2000,
     the nine-months ended September 30, 2001, and the nine-months ended
     September 30, 2000                                                       9
   Unaudited condensed statements of cash flows for the nine-months
     ended September 30, 2001 and the nine-months ended September 30, 2000   10
   Notes to the unaudited condensed financial statements                     11

   Coso Energy Developers
   Unaudited condensed balance sheets at September 30, 2001 and
     December 31, 2000                                                       12
   Unaudited condensed statements of operations for the three-months
     ended September 30, 2001, the three-months ended September 30, 2000,
     the nine-months ended September 30, 2001, and the nine-months ended
     September 30, 2000                                                      13
   Unaudited condensed statements of cash flows for the nine-months
     ended September 30, 2001 and the nine-months ended September 30, 2000   14
   Notes to the unaudited condensed financial statements                     15

                                       2

   Coso Power Developers
   Unaudited condensed balance sheets at September 30, 2001 and
     December 31, 2000                                                       16
   Unaudited condensed statements of operations for the three-months
     months ended September 30, 2001, the three-months ended September 30,
     2000, the nine-months ended September 30, 2001, and the nine-months
     ended September 30, 2000                                                17
   Unaudited condensed statements of cash flows for the nine-months
     ended September 30, 2001 and the nine-months ended September 30, 2000   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                                                   31
   Supplemental condensed combined financial information for the
   Coso Partnerships
   Unaudited condensed combined balance sheets at September 30, 2001
     and December 31, 2000                                                   32
   Unaudited condensed combined statements of operations for the three-
     months ended September 30, 2001, the three-months ended September
     30, 2000, the nine-months ended September 30, 2001, and the nine-
     months ended September 30, 2000                                         33
   Unaudited condensed combined statements of cash flows for the nine-
     months ended September 30, 2001 and the nine-months ended
     September 30, 2000                                                      34
   Notes to the unaudited condensed combined financial statements            35

ITEM 6.  Exhibits and Reports on Form 8-K                                    36

                                       3
<PAGE>




                          CAITHNESS COSO FUNDING CORP.
                       UNAUDITED CONDENSED BALANCE SHEETS
                             (Dollars in thousands)
<TABLE>
<CAPTION>
                                                           September 30,       December 31,
                                                               2001                2000
                                                                                  (Note)

<S>                                                         <C>                <C>
Assets:
   Accrued interest receivable.......................       $   8,359          $   1,286
   Project loan to Coso Finance Partners.............         129,893            134,984
   Project loan to Coso Energy Developers............          99,040            100,907
   Project loan to Coso Power Developers.............          89,925             94,176
                                                               ------             ------

                                                            $ 327,217          $ 331,353
                                                              =======            =======


Liabilities and Stockholders' Equity:
   Senior secured notes:
      Accrued interest payable.......................       $   8,359          $   1,286
      6.80% notes due 2001...........................          15,858             27,067
      9.05% notes due 2009...........................         303,000            303,000
                                                              -------            -------
                                                              327,217            331,353
Stockholders' equity.................................             ---                ---
                                                              -------            -------

                                                            $ 327,217          $ 331,353
                                                              =======            =======
</TABLE>

Note:     The condensed balance sheet at December 31, 2000 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,
                                    2001               2000             2001                2000

<S>                              <C>                <C>                <C>                <C>
Interest income..........        $  7,105           $  7,671          $  21,703           $  24,600
Interest expense.........          (7,105)            (7,671)           (21,703)            (24,600)
                                    ------             -----             ------              ------

      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)



                                                 Nine-Months       Nine-Months
                                                   Ended             Ended
                                                September 30,     September 30,
                                                    2001              2000


Cash flows from investing activities.......      $   4,136         $  57,298
Cash flows from financing activities.......         (4,136)          (57,298)
                                                     -----            ------
Net change in cash and cash equivalents....      $     ---         $     ---
                                                     =====            ======

 Supplemental cash flow disclosure:
      Cash paid for interest...............      $  14,631         $  15,660
                                                    ======            ======





     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 senior secured notes.  Pursuant
to separate credit agreements  between Funding Corp. and each  partnership,  the
net proceeds  from the offering of $110,000 of 6.80%  senior  secured  notes due
2001 and  $303,000  of 9.05%  senior  secured  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,
2000.

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.

(3)      New Accounting Pronouncements

In June 1998, the Financial  Accounting  Standards Board (FASB) issued Financial
Accounting Standards No. (FAS) 133,  "Accounting for Derivative  Instruments and
Hedging  Activities."  In June 2000,  FASB issued FAS No. 138,  "Accounting  for
Certain  Derivative  Instruments and Hedging  Activities," which amended FAS No.
133 and addressed  certain  implementation  issues.  The  statement  establishes
accounting  and  reporting  standards  requiring  every  derivative   instrument
(including  certain  derivative  instruments  embedded  in other  contracts)  be
recorded in the balance  sheet as either an asset or  liability  measured at its
fair value. The statement requires the changes in the derivative's fair value be
recognized  currently in earnings unless specific hedge accounting  criteria are
met. Funding Corp. has adopted FAS 133, as amended,  and assessed that it has no
material effect on its financial statements.



                                       7
<PAGE>


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


                                                                                    September 30,        December 31,
                                                                                        2001                 2000
                                                                                                            (Note)

<S>                                                                                  <C>                 <C>
Assets:
   Cash and cash equivalents..................................................       $  13,719           $   3,506
   Restricted cash and investments............................................          24,414              22,996
   Accounts receivable, net...................................................           5,178                 521
   Prepaid expenses & other assets............................................             942                 809
   Amounts due from related parties...........................................           7,115               1,960
   Property, plant & equipment, net...........................................         142,697             149,076
   Power purchase agreement, net..............................................          11,380              12,240
   Investment in China Lake Plant Services, Inc...............................           4,046               4,072
   Deferred financing costs, net..............................................           2,840               3,229
                                                                                       -------             -------

                                                                                     $ 212,331           $ 198,409
                                                                                       =======             =======

Liabilities and Partners' Capital:
   Accounts payable and accrued liabilities...................................       $  24,100           $  15,857
   Amounts due to related parties.............................................           4,217                 697
   Project loans..............................................................         129,893             134,984
                                                                                       -------             -------
                                                                                       158,210             151,538
   Partners' capital..........................................................          54,121              46,871
                                                                                       -------             -------

                                                                                     $ 212,331           $ 198,409
                                                                                       =======             =======

</TABLE>





Note:     The condensed balance sheet at December 31, 2000 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,
                                                            2001               2000              2001             2000

<S>                                                      <C>                <C>               <C>              <C>
Revenue:
   Energy revenues..............................         $  7,666           $ 14,322          $ 54,303         $ 31,505
   Capacity revenues............................            8,190              8,190            13,011           13,011
   Interest and other income....................              977                417             2,155            1,199
                                                           ------             ------            ------           ------
          Total revenue.........................           16,833             22,929            69,469           45,715

Operating expenses:
   Plant operating expenses.....................            2,055              2,167             6,629            6,513
   Royalty expense..............................            7,005              4,484            13,759            7,689
   Provision for doubtful accounts..............              ---                ---            21,613              ---
   Depreciation and amortization................            2,647              2,497             7,687            7,085
                                                           ------             ------            ------           ------
          Total operating expenses..............           11,707              9,148            49,688           21,287

          Operating income......................            5,126             13,781            19,781           24,428

Other expenses:
    Interest expense............................            2,896              3,094             8,851            9,387
    Amortization on deferred financing..........              130                131               390              390
                                                           ------             ------            ------           ------
          Total other expenses..................            3,026              3,225             9,241            9,777

          Net income............................         $  2,100           $ 10,556          $ 10,540         $ 14,651
                                                           ======             ======            ======           ======

</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,
                                                                      2001               2000

<S>                                                                <C>                <C>
Net cash provided by operating activities....................      $ 20,461           $ 14,752
Net cash provided by (used in) investing activities..........        (1,867)               614
Net cash provided by (used in) financing activities..........        (8,381)           (10,048)
                                                                     ------             ------
Net change in cash and cash equivalents......................      $ 10,213           $  5,318
                                                                     ======             ======

Supplemental cash flow disclosure:
    Cash paid for interest...................................      $  5,968           $  6,342
                                                                     ======             ======

</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 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, 2000.

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)      New Accounting Pronouncements

In June 1998, the Financial  Accounting  Standards Board (FASB) issued Financial
Accounting Standards No. (FAS) 133,  "Accounting for Derivative  Instruments and
Hedging  Activities."  In June 2000,  FASB issued FAS No. 138,  "Accounting  for
Certain  Derivative  Instruments and Hedging  Activities," which amended FAS No.
133 and addressed  certain  implementation  issues.  The  statement  establishes
accounting  and  reporting  standards  requiring  every  derivative   instrument
(including  certain  derivative  instruments  embedded  in other  contracts)  be
recorded in the balance  sheet as either an asset or  liability  measured at its
fair value. The statement requires the changes in the derivative's fair value be
recognized  currently in earnings unless specific hedge accounting  criteria are
met. CFP has adopted FAS 133, as amended,  and assessed  that it has no material
effect on its financial statements.



                                       11


<PAGE>


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


                                                                                September 30,      December 31,
                                                                                    2001               2000
                                                                                                      (Note)

<S>                                                                              <C>               <C>
Assets:
   Cash and cash equivalents..............................................       $  18,216         $   5,862
   Restricted cash and investments........................................           8,160            14,502
   Accounts receivable, net...............................................           4,239                40
   Prepaid expenses and other assets......................................           1,226             1,013
   Amounts due from related parties.......................................           1,200               365
   Property, plant and equipment, net.....................................         152,055           153,618
   Power purchase agreement, net..........................................          18,705            19,510
   Investment in Coso Transmission Line Partners..........................           2,874             2,871
   Investment in China Lake Plant Services, Inc...........................             871             1,051
   Deferred financing costs, net..........................................           2,242             2,480
                                                                                   -------           -------

                                                                                 $ 209,788         $ 201,312
                                                                                   =======           =======

Liabilities and Partners' Capital:
   Accounts payable and accrued liabilities...............................       $   8,871         $   6,839
   Amounts due to related parties.........................................          28,021            24,321
   Project loans..........................................................          99,040           100,907
                                                                                   -------           -------
                                                                                   135,932           132,067
Partners' capital.........................................................          73,856            69,245
                                                                                   -------           -------

                                                                                 $ 209,788         $ 201,312
                                                                                   =======           =======


</TABLE>



Note:     The  condensed  balance  sheet at December  31, 2000 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,
                                                       2001              2000              2001               2000

<S>                                                <C>               <C>                <C>                <C>
Revenue:
   Energy revenues...........................      $  6,039          $ 11,828           $ 46,294           $ 25,559
   Capacity revenues.........................         8,016             8,017             12,728             12,728
   Interest and other income.................         1,040               466              2,877              6,147
                                                     ------            ------             ------             ------
          Total revenue......................        15,095            20,311             61,899             44,434

Operating expenses:
   Plant operating expenses..................         2,384             2,605              7,592              8,022
   Royalty expense...........................           967             1,813              4,993              2,391
   Provisions for doubtful accounts..........           ---               ---             21,830                ---
   Depreciation and amortization.............         4,009             4,013             11,884             11,427
                                                     ------            ------             ------             ------
          Total operating expenses...........         7,360             8,431             46,299             21,840

          Operating income...................         7,735            11,880             15,600             22,594

Other expenses:
    Interest expense.........................         2,225             2,287              6,733              6,870
    Amortization of deferred financing.......            79                79                238                238
                                                     ------            ------             ------             ------
          Total other expenses...............         2,304             2,366              6,971              7,108


          Net income........................       $  5,431          $  9,514           $  8,629           $ 15,486
                                                     ======            ======             ======             ======

</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,
                                                                      2001               2000

<S>                                                                <C>                <C>
Net cash provided by operating activities....................      $ 21,413           $ 19,739
Net cash provided by (used in) investing activities..........        (3,174)             1,895
Net cash provided by (used in) financing activities..........        (5,885)            (5,182)
                                                                     ------             ------
Net change in cash and cash equivalents......................      $ 12,354           $ 16,452
                                                                     ======             ======

Supplemental cash flow disclosure:
     Cash paid for interest..................................      $  4,514           $  4,612
                                                                     ======             ======

</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
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,
2000.

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)      New Accounting Pronouncements

In June 1998, the Financial  Accounting  Standards Board (FASB) issued Financial
Accounting Standards No. (FAS) 133,  "Accounting for Derivative  Instruments and
Hedging  Activities."  In June 2000,  FASB issued FAS No. 138,  "Accounting  for
Certain  Derivative  Instruments and Hedging  Activities," which amended FAS No.
133 and addressed  certain  implementation  issues.  The  statement  establishes
accounting  and  reporting  standards  requiring  every  derivative   instrument
(including  certain  derivative  instruments  embedded  in other  contracts)  be
recorded in the balance  sheet as either an asset or  liability  measured at its
fair value. The statement requires the changes in the derivative's fair value be
recognized  currently in earnings unless specific hedge accounting  criteria are
met. CED has adopted FAS 133, as amended,  and assessed  that it has no material
effect on its financial statements.



                                       15


<PAGE>


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


                                                                                September 30,      December 31,
                                                                                    2001               2000
                                                                                                      (Note)

<S>                                                                              <C>               <C>
Assets:
   Cash and cash equivalents..............................................       $  11,346         $   7,741
   Restricted cash and investments........................................          10,728            10,214
   Accounts receivable, net...............................................           1,982                29
   Prepaid expenses and other assets......................................             948               849
   Amounts due from related parties.......................................           5,633             5,953
   Property, plant and equipment, net.....................................         127,898           136,947
   Power purchase agreement, net..........................................          23,519            25,614
   Investment in Coso Transmission Line Partners..........................           3,531             3,528
   Investment in China Lake Plant Services, Inc...........................           1,954             1,963
   Deferred financing costs, net..........................................           2,278             2,855
                                                                                   -------           -------

                                                                                 $ 189,817         $ 195,693
                                                                                   =======           =======

Liabilities and Partners' Capital:
   Accounts payable and accrued liabilities...............................       $  16,211         $  12,278
   Amounts due to related parties.........................................           8,488             1,816
   Project loans..........................................................          89,925            94,176
                                                                                   -------           -------
                                                                                   114,624           108,270
   Partners' capital......................................................          75,193            87,423
                                                                                   -------           -------

                                                                                 $ 189,817         $ 195,693
                                                                                   =======           =======

</TABLE>



Note:    The condensed balance sheet at December 31, 2000 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,
                                                      2001              2000              2001               2000

<S>                                                <C>               <C>                <C>                <C>
Revenue:
   Energy revenues........................         $  5,006          $ 11,600           $ 39,684           $ 27,589
   Capacity revenues......................            8,047             8,047             12,785             12,785
   Interest and other income..............              881               560              2,135              1,962
                                                      -----            ------             ------             ------
          Total revenue...................           13,934            20,207             54,604             42,336

Operating expenses:
   Plant operating expenses...............            2,360             2,230              7,210              6,876
   Royalty expense........................            2,316             3,267              8,209              7,028
   Provision for doubtful accounts........              ---               ---             22,733                ---
   Depreciation and amortization..........            3,870             3,883             11,454             11,289
                                                      -----            ------             ------             ------
          Total operating expenses........            8,546             9,380             49,606             25,193

          Operating income................            5,388            10,827              4,998             17,143

Other expenses:
   Interest expense.......................            2,003             2,286              6,140              6,947
   Amortization on deferred financing.....              192               192                577                577
                                                      -----            ------             ------            -------
          Total other expenses............            2,195             2,478              6,717              7,524

          Net income (loss)...............         $  3,193          $  8,349           $ (1,719)          $  9,619
                                                      =====            ======             ======             ======


</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,
                                                                      2001                2000

<S>                                                                <C>                <C>
Net cash provided by operating activities....................      $  19,184           $  26,052
Net cash provided by (used in) investing activities..........           (817)             37,714
Net cash provided by (used in) financing activities..........        (14,762)            (49,616)
                                                                      ------              ------
Net change in cash and cash equivalents......................      $   3,605           $  14,150
                                                                      ======              ======

Supplemental cash flow disclosure:
     Cash paid for interest..................................      $   4,149           $   4,706
                                                                      ======              ======


</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
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,
2000.

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)      New Accounting Pronouncements

In June 1998, the Financial  Accounting  Standards Board (FASB) issued Financial
Accounting Standards No. (FAS) 133,  "Accounting for Derivative  Instruments and
Hedging  Activities."  In June 2000,  FASB issued FAS No. 138,  "Accounting  for
Certain  Derivative  Instruments and Hedging  Activities," which amended FAS No.
133 and addressed  certain  implementation  issues.  The  statement  establishes
accounting  and  reporting  standards  requiring  every  derivative   instrument
(including  certain  derivative  instruments  embedded  in other  contracts)  be
recorded in the balance  sheet as either an asset or  liability  measured at its
fair value. The statement requires the changes in the derivative's fair value be
recognized  currently in earnings unless specific hedge accounting  criteria are
met. CPD has adopted FAS 133, as amended,  and assessed  that it has no material
effect on its financial statements.



                                       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"),
respectively,  (the "Coso  Partnerships")  or  collectively  ("Coso")  and their
respective management. 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 are:
(i) risks relating to the  uncertainties in the California  energy market,  (ii)
the financial  viability of Southern California Edison,  ("Edison"),  (iii) that
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,  (vi) general operating risks,  (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 and (xii) seasonality.


General

     The Coso projects 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 projects 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  projects.  On February 25, 1999  Caithness
Acquisition  Company,  LLC, (CAC) purchased all of CalEnergy's  interests in the
Coso projects for $205.0 million in cash plus the assumption of CalEnergy's  and
its  affiliates'  share of debt  outstanding  at the Coso  projects  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 6.8%
Senior Secured Notes and the 9.05% 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.  The power  purchase  agreement for the
Navy I Partnership will expire in August 2011, the power purchase  agreement for
the BLM Partnership will expire in March 2019, and the power purchase  agreement
for the Navy II Partnership  will expire in January 2010. 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.

     For the three months ended  September 30, 2001,  Edison's  average  avoided
cost of energy paid to the Coso  Partnerships was 3.6 cents per kWh, as compared
to 6.2 cents per kWh for the three months ended  September 30, 2000. On June 19,
2001,  Edison  entered into an agreement with the Coso  Partnerships  that would
establish an average  short run avoided cost of 5.37  cents/kWh for energy sales
to Edison for five years. The agreement  requires the approval by the California
legislature,  which  is now not  expected  to be  received.  Subsequent  to that
agreement with the Coso Partnerships, Edison entered into a settlement agreement
with the CPUC on October 2, 2001 whereby Edison will recover in retail  electric
rates their historical  shortfall in electricity purchase costs with interest by
December  31,  2005.  That  settlement  which was  approved in federal  court on
October 5, 2001,  was  stayed,  by an appeals  court on October 30, 2001 so that
certain  intervenors  can  provide  opposition  briefs  to the  court.  The Coso
Partnerships and Edison are now in discussion  regarding the  implementation  of
average  short run avoided  cost of 5.37  cents/kWh  for the five year period in
light of the  developments  that occurred  after the June 19, 2001 agreement was
reached.  There  can  be no  assurances  as to the  ultimate  outcome  of  these
discussions.

     The Coso  Partnerships  implemented  a  steam-sharing  program,  which they
established  under the Coso Geothermal  Exchange  Agreement they entered into in
1994. 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 projects.  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  CPUC.  Negotiations  with the  U.S.  Navy are
continuing  to  re-adjust  the formula to reflect  recent  activity in the local
energy market. 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. The BLM Partnership  pays a 10% royalty to the Bureau of Land
Management based on the 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, which are not material at various rates.

                                       21


     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 million of 6.80% senior secured
notes due in 2001 and $303  million of 9.05% senior  secured  notes due in 2009.
The proceeds from the notes were loaned to the Coso Partnerships and are payable
to Funding Corp from  payments of principal  and interest on the notes.  Funding
Corp. does not conduct any other operations apart from issuing the notes.

     Under a  depositary  agreement  with the  trustee  for the notes,  the Coso
Partnerships  established  accounts with a depositary and pledged those accounts
as  security  for the benefit of the holders of the senior  secured  notes.  All
amounts  deposited  with  the  depositary  are,  at the  direction  of the  Coso
Partnerships,  invested by the depositary 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  depositary of a certificate
from the relevant Coso Partnerships  detailing the amounts to be paid from funds
in its respective revenue account.

     Periodic  increases in natural gas prices and imbalances between supply and
demand,  among other  factors,  have at times led to  significant  increases  in
wholesale  electricity  prices in California.  During those periods,  Edison had
fixed  tariffs with their retail  customers  that were  significantly  below the
wholesale   prices  it  pays  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.  Subsequently,  pursuant  to  a
California  Public  Utilities  Commission  (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 continues to pay interest
on the outstanding amount at 7% per annum. That payment was made pursuant to the
June 19,  2001  agreement  between  Edison and the Coso  Partnerships  described
above.  Subsequent to that agreement with the Coso Partnerships,  Edison entered
into the settlement  agreement discussed above. The Coso Partnerships and Edison
are now in  discussions  regarding the timing and amounts of payments to be made
to the Coso  Partnerships in light of the developments  that occurred after June
19, 2001  agreement  was reached.  There can be no assurances as to the ultimate
outcome of these discussions.


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 capacity is based upon a
number of factors and can be expected to vary  throughout  the year under normal
operating conditions.



                                       22


     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

                                                 2001             2000              2001               2000
                                                 ----             ----              ----               ----

   <S>                                           <C>              <C>               <C>                <C>
   Navy I Partnership (stand alone)
     Operating capacity factor                  110.1%           113.0%            107.9%             111.9%
     Capacity (MW) (average)                     88.10            90.39             86.29              89.49
     kWh produced (000s)                        194,525          199,573           565,345            588,479

   BLM Partnership (stand alone)
     Operating capacity factor                   99.3%           111.7%            103.2%             108.8%
     Capacity (MW) (average)                     79.45            89.39             82.55              87.02
     kWh produced (000s)                        175,417          197,369           540,837            572,251

   Navy II Partnership (stand alone)
     Operating capacity factor                  102.0%           112.3%            103.5%             110.8%
     Capacity (MW) (average)                     81.64            89.86             82.83              88.66
     kWh produced (000s)                        180,257          198,402           542,677            583,061

</TABLE>


     The BLM  Partnership's  energy  production  was 175.4 million kWh and 540.8
million  kWh  for  the  three  and   nine-months   ended   September  30,  2001,
respectively,  as  compared to 197.4  million kWh and 572.3  million kWh for the
same  periods in 2000,  decreases of 11.1% and 5.5%,  respectively.  The Navy II
Partnership's  energy production was 180.3 million kWh and 542.7 million kWh for
the three and nine-months ended September 30, 2001, respectively, as compared to
198.4 million kWh and 583.1 million kWh for the same periods in 2000,  decreases
of 9.1%  and  6.9%,  respectively.  The  decreases  in  energy  production  were
primarily due to the deferment of certain  capital and  maintenance  projects by
the Coso  Partnerships,  due to non-payment by Edison during the period November
1, 2000 through March 26, 2001.  These  projects have been resumed as Edison has
resumed payment for production starting in late March 2001.


Results of Operations for the three and nine-months ended September 30, 2001 and
2000

     The following  discusses the results of operations of the Coso Partnerships
for the three and nine-months ending September 30, 2001 and 2000 (dollar amounts
in tables are in thousands, except per kWh data):



                                       23


Revenue
<TABLE>
<CAPTION>

                                  Three-Months           Three-Months           Nine-Months            Nine-Months
                                      Ended                  Ended                 Ended                  Ended
                                  September 30,          September 30,          September 30,          September 30,
                                      2001                   2000                   2001                   2000

                                  $     Cents/kWh        $     Cents/kWh        $     Cents/kWh        $      Cents/kWh
                                  -     ---------        -     ---------        -     ---------        -      ---------

<S>                             <C>         <C>        <C>        <C>         <C>        <C>         <C>         <C>
Total Operating Revenues
  Navy I Partnership            15,856      8.2        22,512     11.3        67,314     11.9        44,516      7.6
  BLM Partnership               14,055      8.0        19,845     10.1        59,022     10.9        38,287      6.7
  Navy II Partnership           13,053      7.2        19,647      9.9        52,469      9.7        40,374      6.9

Capacity & Capacity Bonus
Revenues
  Navy I Partnership             8,190      4.2         8,190      4.1        13,011      2.3        13,011      2.2
  BLM Partnership                8,016      4.6         8,017      4.1        12,728      2.4        12,728      2.2
  Navy II Partnership            8,047      4.5         8,047      4.1        12,785      2.4        12,785      2.2

Energy Revenues
  Navy I Partnership             7,666      3.9        14,322      7.2        54,303      9.6        31,505      5.4
  BLM Partnership                6,039      3.4        11,828      6.0        46,294      8.6        25,559      4.5
  Navy II Partnership            5,006      2.8        11,600      5.8        39,684      7.3        27,589      4.7

</TABLE>

     Total  operating  revenues  for the Navy I  Partnership,  which  consist of
capacity  payments,  capacity  bonus  payments and energy  payments,  were $15.9
million and $67.3  million for the three and  nine-months  ended  September  30,
2001, respectively,  as compared to $22.5 million and $44.5 million for the same
periods in 2000, a decrease of 29.3% and an increase of 51.2%, respectively. The
Navy I Partnership's energy revenues were $7.7 million and $54.3 million for the
three and  nine-months  ended September 30, 2001,  respectively,  as compared to
$14.3  million  and $31.5  million for the same  periods in 2000,  a decrease of
46.2% and an increase of 72.4%, respectively.

     Total operating revenues for the BLM Partnership, which consist of capacity
payments,  capacity bonus payments and energy  payments,  were $14.1 million and
$59.0  million  for  the  three  and  nine-months   ended  September  30,  2001,
respectively,  as  compared  to $19.8  million  and $38.3  million  for the same
periods in 2000, a decrease of 28.8% and an increase of 54.0%, respectively. The
BLM  Partnership's  energy  revenues were $6.0 million and $46.3 million for the
three and  nine-months  ended September 30, 2001,  respectively,  as compared to
$11.8  million  and $25.6  million for the same  periods in 2000,  a decrease of
49.2% and an increase of 80.9%, respectively.

     Total  operating  revenues for the Navy II  Partnership,  which  consist of
capacity  payments,  capacity  bonus  payments and energy  payments,  were $13.1
million and $52.5  million for the three and  nine-months  ended  September  30,
2001, respectively,  as compared to $19.6 million and $40.4 million for the same
periods in 2000, a decrease of 33.2% and an increase of 30.0%, respectively. The
Navy II  Partnership's  energy  revenues were $5.0 million and $39.7 million for
the three and nine-months ended September 30, 2001, respectively, as compared to
$11.6  million  and $27.6  million for the same  periods in 2000,  a decrease of
56.9% and an increase of 43.8%, respectively.

     Each Coso  Partnership's  decrease in operating and energy revenues for the
three-month  period ended  September 30, 2001, as compared to the same period in
2000,  were due to decreases  in the average  avoided cost of energy paid to the
respective partnership, as well as previously discussed decreases in generation.
The  average  avoided  cost of energy  decreased  from 6.2 cents per kWh for the
three-month  period ended  September 30, 2000, to 3.6 cents per kWh for the same
period  in 2001.  Each Coso  Partnership's  increase  in  operating  and  energy
revenues for the nine-month  period ended September 30, 2001, as compared to the
same period in 2000, were due to increases in the average avoided cost of energy
paid to the respective  partnerships,  offset,  somewhat by previously discussed
decreases in generation.  The average avoided cost of energy  increased from 4.6
cents per kWh for the nine-month  period ended  September 30, 2000, to 8.9 cents
per kWh for the same period in 2001.  Estimates of Edison's  future avoided cost
of  energy,   which   fluctuate  with  the  prices  of  natural  gas,  may  vary
significantly, and no one can predict the likely level of future avoided cost of
energy prices.

                                       24


Interest and Other Income
<TABLE>
<CAPTION>

                                    Three-Months          Three-Months          Nine-Months           Nine-Months
                                       Ended                 Ended                Ended                 Ended
                                 September 30, 2001    September 30, 2000   September 30, 2001     September 30, 2000

<S>                               <C>    <C>             <C>   <C>             <C>   <C>             <C>   <C>
                                   $     Cents/kWh        $    Cents/kWh       $     Cents/kWh       $     Cents/kWh
                                   -     ---------        -    ---------       -     ---------       -     ---------
  Navy I Partnership               977      0.5          417      0.2        2,155      0.4        1,199      0.2
  BLM Partnership                1,040      0.6          466      0.2        2,877      0.5        6,147      1.1
  Navy II Partnership              881      0.5          560      0.3        2,135      0.4        1,962      0.3

</TABLE>



     The Navy I  Partnership's  interest  and other  income was $1.0 million and
$2.2  million  for  the  three  and   nine-months   ended  September  30,  2001,
respectively,  as compared to $0.4 million and $1.2 million for the same periods
in 2000,  increases of $0.6 million and 83.3%,  respectively.  The increases for
the three and  nine-months  ended  September  30, 2001,  as compared to the same
periods in 2000,  were  primarily  due to interest on amounts in arrears owed by
Edison in 2001.

     The BLM  Partnership's  interest and other income was $1.0 million and $2.9
million for the three and nine-months ended September 30, 2001, respectively, as
compared to $0.5  million  and $6.1  million  for the same  periods in 2000,  an
increase of 100% and a decrease of 52.5%,  respectively.  The  increase  for the
three-month  period ended  September 30, 2001, as compared to the same period in
2000,  was  primarily  due to interest  on amounts in arrears  owed by Edison in
2001. The decrease for the nine-months  ended September 30, 2001, as compared to
the same period in 2000,  was primarily due to a legal  settlement of $5 million
with Dow  Chemical  Company  paid to the BLM  Partnership  in  January  of 2000,
partially offset by an increase in interest income on amounts in arrears owed by
Edison in 2001.

     The Navy II  Partnership's  interest  and other income was $0.9 million and
$2.1  million  for  the  three  and   nine-months   ended  September  30,  2001,
respectively,  as compared to $0.6 million and $2.0 million for the same periods
in 2000, increases of 50.0% and 5.0%, respectively.  The increases for the three
and  nine-months  ended  September  30, 2001, as compared to the same periods in
2000,  were  primarily  due to interest on amounts in arrears  owed by Edison in
2001.


                                       25


Plant Operations
<TABLE>
<CAPTION>

                                    Three-Months          Three-Months          Nine-Months           Nine-Months
                                       Ended                 Ended                 Ended                 Ended
                                 September 30, 2001    September 30, 2000   September 30, 2001     September 30, 2000

<S>                                <C>   <C>             <C>   <C>             <C>   <C>            <C>    <C>
                                    $    Cents/kWh        $    Cents/kWh       $     Cents/kWh       $     Cents/kWh
                                    -    ---------        -    ---------       -     ---------       -     ---------
  Navy I Partnership              2,055     1.1         2,167     1.1        6,629      1.2        6,513      1.1
  BLM Partnership                 2,384     1.4         2,605     1.3        7,592      1.4        8,022      1.4
  Navy II Partnership             2,360     1.3         2,230     1.1        7,210      1.3        6,876      1.2

</TABLE>

     The BLM Partnership's  operating expenses,  including operating and general
and  administrative  expenses,  were $2.4 million and $7.6 million for the three
and  nine-months  ended  September 30, 2001,  respectively,  as compared to $2.6
million and $8.0  million for the same  periods in 2000,  decreases  of 7.7% and
5.0%  respectively.  The decreases for the three and nine-months ended September
30, 2001,  as compared to the same  periods in 2000,  were  primarily  due to an
offset of current property taxes from a partial refund of an appealed amount and
lower well maintenance and workover costs during those periods in 2001.

     The Navy II  Partnership's  operating  expenses,  including  operating  and
general and administrative expenses, was $2.4 million for the three-months ended
September  30, 2001, as compared to $2.2 million for the same period in 2000, an
increases of 9.1%. The increase for the  three-months  ended September 30, 2001,
as compared to the same periods in 2000,  was  primarily  due to increased  well
maintenance  and  workover  costs,  partially  reduced  by an offset of  current
property taxes from a partial refund of an appealed amount.


Royalty Expense
<TABLE>
<CAPTION>

                                    Three-Months          Three-Months          Nine-Months           Nine-Months
                                        Ended                 Ended                Ended                 Ended
                                 September 30, 2001    September 30, 2000   September 30, 2001     September 30, 2000

<S>                                <C>   <C>             <C>   <C>             <C>   <C>             <C>   <C>
                                    $    Cents/kWh        $    Cents/kWh       $     Cents/kWh       $     Cents/kWh
                                    -    ---------        -    ---------       -     ---------       -     ---------
  Navy I Partnership              7,005     3.6         4,484     2.2       13,759      2.4        7,689      1.3
  BLM Partnership                   967     0.6         1,813     0.9        4,993      0.9        2,391      0.4
  Navy II Partnership             2,316     1.3         3,267     1.6        8,209      1.5        7,028      1.2

</TABLE>

     The Navy I  Partnership's  royalty  expenses  were $7.0  million  and $13.8
million for the three and nine-months ended September 30, 2001, respectively, as
compared  to $4.5  million  and  $7.7  million  for the  same  periods  in 2000,
increases of 55.6% and 79.2%,  respectively.  The  increase for the  three-month
period ended September 30, 2001, as compared to the same period in 2000, was due
to the increase in electricity  price used to calculate the Navy I Partnership's
Unit 1 royalty.  The increase for the nine-month period ended September 30, 2001
as compared to the same period in 2000,  was due to the  increase in the average
avoided  cost of energy  paid to the Navy I  Partnership  during  that period in
2001.

     The BLM  Partnership's  royalty expenses were $1.0 million and $5.0 million
for the three  and  nine-months  ended  September  30,  2001,  respectively,  as
compared  to $1.8  million  and $2.4  million  for the same  periods in 2000,  a
decrease of $0.8  million and an increase  of $2.6  million,  respectively.  The
decrease for the three-month  period ended September 30, 2001 as compared to the
same period in 2000,  was due to the  decrease in the  average  avoided  cost of
energy paid to the BLM Partnership  during that period in 2001. The increase for
the nine-month period ended September 30, 2001 as compared to the same period in
2000, was due to the increase in the average  avoided cost of energy paid to the
BLM Partnership during that period in 2001.

                                       26


     The Navy II  Partnership's  royalty  expenses  were $2.3  million  and $8.2
million for the three and nine-months ended September 30, 2001, respectively, as
compared  to $3.3  million  and $7.0  million  for the same  periods in 2000,  a
decrease of 30.3% and an increase of 17.1%,  respectively.  The decrease for the
three-month  period ended  September  30, 2001 as compared to the same period in
2000, was due to the decrease in the average  avoided cost of energy paid to the
Navy II Partnership  during that period in 2001. The increase for the nine-month
period ended  September 30, 2001 as compared to the same period in 2000, was due
to the  increase  in the  average  avoided  cost of  energy  paid to the Navy II
partnership during that period in 2001.


Depreciation and Amortization
<TABLE>
<CAPTION>

                                    Three-Months          Three-Months          Nine-Months           Nine-Months
                                       Ended                  Ended                Ended                 Ended
                                 September 30, 2001    September 30, 2000   September 30, 2001     September 30, 2000

<S>                                <C>   <C>             <C>   <C>            <C>    <C>            <C>    <C>
                                    $    Cents/kWh        $    Cents/kWh       $     Cents/kWh       $     Cents/kWh
                                    -    ---------        -    ---------       -     ---------       -     ---------
  Navy I Partnership              2,647     1.4         2,497     1.3        7,687      1.4        7,085      1.2
  BLM Partnership                 4,009     2.3         4,013     2.0       11,884      2.2       11,427      2.0
  Navy II Partnership             3,870     2.1         3,883     2.0       11,454      2.1       11,289      1.9

</TABLE>

     The Navy I Partnership's  depreciation  and  amortization  expense was $7.7
million  for the  nine-months  ended  September  30,  2001,  as compared to $7.1
million  for  the  same  period  in  2000,  an  increase  of  8.5%.  The  Navy I
Partnership's   increase  in  depreciation  and  amortization  expense  for  the
nine-months  ended  September  30, 2001, as compared to the same period in 2000,
was primarily due to an increase in capitalized assets in 2001.


Interest Expense
<TABLE>
<CAPTION>

                                    Three-Months          Three-Months          Nine-Months           Nine-Months
                                        Ended                 Ended                Ended                 Ended
                                 September 30, 2001    September 30, 2000   September 30, 2001     September 30, 2000

<S>                                <C>   <C>             <C>   <C>             <C>   <C>             <C>   <C>
                                    $    Cents/kWh        $    Cents/kWh       $     Cents/kWh       $     Cents/kWh
                                    -    ---------        -    ---------       -     ---------       -     ---------

  Navy I Partnership              2,896     1.5         3,094     1.6        8,851      1.6        9,387      1.6
  BLM Partnership                 2,225     1.3         2,287     1.2        6,733      1.2        6,870      1.2
  Navy II Partnership             2,003     1.1         2,286     1.2        6,140      1.1        6,947      1.2

</TABLE>


     The Navy I Partnership's interest expense was $2.9 million and $8.9 million
for the three  and  nine-months  ended  September  30,  2001,  respectively,  as
compared  to $3.1  million  and  $9.4  million  for the  same  periods  in 2000,
decreases of 6.5% and 5.3%,  respectively.  The Navy II  Partnership's  interest
expense was $2.0  million and $6.1 million for the three and  nine-months  ended
September 30, 2001,  respectively,  as compared to $2.3 million and $6.9 million
for the same periods in 2000, decreases of 13.0% and 11.6%, respectively.  These
decreases in interest expense for the three and nine-months  ended September 30,
2001,  as compared  to the same  periods in 2000 were due to  reductions  in the
principal amount of the project loan from Funding Corp.


                                       27


Provision for Doubtful Accounts

     Edison experienced  significant cash flow problems earlier this year due in
part to the  difference  between  revenues  received from its customers  through
frozen  electric  rates  and the cost of  producing  service  to its  customers,
including  the  cost to  acquire  electricity.  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. The
Navy I,  BLM and  Navy II  Partnerships  fully  reserved  their  receivables  of
$15,234,  $15,279 and $15,312,  respectively,  from Edison for energy  delivered
during this period.  On June 19, 2001, Edison entered into an agreement with the
Coso  Partnerships that addressed energy pricing and payment issues. On June 21,
2001, the Navy I, BLM, and Navy II Partnerships received their first payments of
$4,139, $4,118 and $4,227, respectively, for partial payment of amounts due from
November 2000 through March 26, 2001. Any future payments are subject to further
negotiations  with Edison  subsequent to its settlement with the CPUC on October
2, 2001.  That  settlement,  which was  approved in federal  court on October 5,
2001, allows Edison to recover in retail electric rates its historical shortfall
in electricity  purchase  costs with interest by December 31, 2005.  Despite the
partial  payment of 10% of the  uncollected  amount on June 21,  2001,  the Coso
Partnerships  are unable to  determine  the time frame  during  which any future
payments may be received.


Liquidity and Capital Resources

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

     The Coso  Partnership's  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.  Accordingly,  that
will eliminate some of the uncertainty of collection of current receivables owed
to the Navy I, BLM and Navy II  Partnerships  of $15,234,  $15,279 and  $15,312,
respectively,  for revenues  generated from November 2000 through March 26, 2001
and forward.  Edison's failure to pay its future obligations may have a material
adverse effect on the Coso  Partnership's  ability to make debt service payments
to Funding Corp. as they come due under the Funding  Corp.  notes.  Current year
cash flow from operations  should be sufficient to fully retire the $110 million
senior secured note due on December 15, 2001.

     On March 27,  2001 the CPUC  ordered  Edison to  resume  paying  qualifying
facilities such as the Coso  Partnerships at rates stipulated by the CPUC. Since
April,  Edison has resumed full  payments to the Coso  Partnerships  for current
purchases of  electricity  generated.  On June 21, 2001,  Edison paid 10% of its
unpaid liabilities to the Coso  Partnerships,  for power generated from November
2000 through March 26, 2001,  amounting to $12,485 and continues to pay interest
on the  outstanding  amount at 7% per annum.

     The following  table sets forth a summary of each Coso  Partnership's  cash
flows for the nine-months ended September 30, 2001 and September 30, 2000.


                                       28
<TABLE>
<CAPTION>


                                                                    Nine-Months            Nine-Months
                                                                       Ended                  Ended
                                                                    September 30,          September 30,
                                                                        2001                   2000

<S>                                                                  <C>                   <C>
Navy I Partnership (stand alone)
  Net cash provided by operating activities                          $  20,461             $   14,752
  Net cash provided by (used in) investing activities                   (1,867)                   614
  Net cash provided by (used in) financing activities                   (8,381)               (10,048)
                                                                        ------                 ------
      Net change in cash and cash equivalents                        $  10,213             $    5,318
                                                                        ======                 ======

BLM Partnership (stand alone)
  Net cash provided by operating activities                          $  21,413             $   19,739
  Net cash provided by (used in) investing activities                   (3,174)                 1,895
  Net cash provided by (used in) financing activities                   (5,885)                (5,182)
                                                                        ------                 ------
      Net change in cash and cash equivalents                        $  12,354             $   16,452
                                                                        ======                 ======

Navy II Partnership (stand alone)
  Net cash provided by operating activities                          $  19,184             $   26,052
  Net cash provided by (used in) investing activities                     (817)                37,714
  Net cash provided by (used in) financing activities                  (14,762)               (49,616)
                                                                        ------                 ------
      Net change in cash and cash equivalents                        $   3,605             $   14,150
                                                                        ======                 ======
</TABLE>


     The Navy I Partnership's cash flows from operating  activities increased by
$5.7 million for the  nine-months  ended  September 30, 2001, as compared to the
same period in 2000,  primarily  due to  increases in trade  payables  partially
offset by an increase in amounts due from related parties.

     Cash used in investing  activities at the Navy I  Partnership  increased by
$2.5 million for the  nine-months  ended  September 30, 2001, as compared to the
same  period  in  2000,   primarily  due  to  an  increase  in  restricted  cash
requirements  associated  with the project  loan from Funding  Corp.,  partially
offset by a decrease in capital expenditures in 2001.

     The Navy I  Partnership's  cash used in financing  activities  decreased by
$1.7 million for the  nine-months  ended  September 30, 2001, as compared to the
same period in 2000, due to a decrease in the payment amount on the project loan
from Funding Corp., partially offset by increased distributions in 2001.

     The BLM  Partnership's  cash flows from operating  activities  increased by
$1.7 million for the  nine-months  ended  September 30, 2001, as compared to the
same period in 2000, primarily due to increases in trade payables.

     Cash used in investing activities at the BLM Partnership  increased by $5.1
million for the  nine-months  ended  September 30, 2001, as compared to the same
period in 2000, primarily due to an increase in capital expenditures in 2001.

     The BLM Partnership's cash used in financing  activities  increased by $0.7
million for the  nine-months  ended  September 30, 2001, as compared to the same
period in 2000, due to an increase in distributions in 2001, partially offset by
a decrease in the payment amount on the project loan from Funding Corp.


                                       29


     The Navy II Partnership's cash flows from operating activities decreased by
$6.9 million for the  nine-months  ended  September 30, 2001, as compared to the
same period in 2000, primarily due to an increases in trade payables and amounts
due to related parties in 2001.

     Cash from  investing  activities  at the Navy II  Partnership  increased by
$38.5 million for the  nine-months  ended September 30, 2001, as compared to the
same  period  in  2000,  primarily  due  to  the  decrease  in  restricted  cash
requirements associated with the project loan from Funding Corp.

     The Navy II Partnership's  cash used in financing  activities  decreased by
$34.9 million for the  nine-months  ended September 30, 2001, as compared to the
same period in 2000, due to a decrease in the payment amount on the project loan
from Funding Corp., partially offset by increased distributions in 2001.


New Accounting Pronouncements

     In June 1998,  the  Financial  Accounting  Standards  Board  (FASB)  issued
Financial  Accounting  Standards  No.  (FAS)  133,  "Accounting  for  Derivative
Instruments  and  Hedging  Activities."  In June 2000,  FASB issued FAS No. 138,
"Accounting for Certain  Derivative  Instruments and Hedging  Activities," which
amended FAS No. 133 and addressed certain  implementation  issues. The statement
establishes  accounting  and  reporting  standards  requiring  every  derivative
instrument   (including  certain  derivative   instruments   embedded  in  other
contracts)  be  recorded in the  balance  sheet as either an asset or  liability
measured  at  its  fair  value.  The  statement  requires  the  changes  in  the
derivative's  fair value be  recognized  currently in earnings  unless  specific
hedge accounting  criteria are met. The Coso  Partnerships have adopted FAS 133,
as  amended,  and  assessed  that it has no material  effect on their  financial
statements.

PART II.  OTHER INFORMATION


ITEM 1.  Legal Proceedings

General

     Except as otherwise  described above,  the Coso  Partnerships are currently
parties to various  minor  items of  litigation,  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.


                                       30


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.


                                       31


<PAGE>

                                COSO PARTNERSHIPS
                   UNAUDITED CONDENSED COMBINED BALANCE SHEETS
                             (Dollars in thousands)

<TABLE>
<CAPTION>


                                                              September 30,      December 31,
                                                                  2001               2000

<S>                                                            <C>               <C>
Assets:
   Cash and cash equivalents.........................          $  43,281         $  17,109
   Restricted cash and investments...................             43,302            47,712
   Accounts receivable, net..........................             11,399               590
   Prepaid expenses and other assets.................              3,116             2,671
   Amounts due from related parties..................              6,152             6,191
   Property, plant and equipment, net................            422,650           439,641
   Power purchase agreement, net.....................             53,604            57,364
   Investments.......................................             13,276            13,485
   Deferred financing costs, net.....................              7,360             8,564
                                                                 -------           -------

                                                               $ 604,140         $ 593,327
                                                                 =======           =======

Liabilities and Partners' Capital:
   Accounts payable and accrued liabilities..........          $  57,541         $  36,260
   Amounts due to related parties....................             24,571            23,460
   Project loans.....................................            318,858           330,067
                                                                 -------           -------
                                                                 400,970           389,787

Partners' capital....................................            203,170           203,540
                                                                 -------           -------

                                                               $ 604,140         $ 593,327
                                                                 =======           =======

</TABLE>



See accompanying notes to the unaudited condensed combined financial statements.



                                       32


<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,
                                                                2001            2000             2001             2000

<S>                                                          <C>             <C>               <C>              <C>
Revenue:
   Energy revenues...............................            $  18,711       $  37,750         $ 140,281        $  84,653
   Capacity revenues.............................               24,253          24,254            38,524           38,524
   Interest and other income.....................                2,898           1,443             7,167            9,308
                                                                ------          ------           -------          -------
          Total revenue..........................               45,862          63,447           185,972          132,485

Operating expenses:
   Plant operating expenses......................                6,799           7,002            21,431           21,411
   Royalty expense...............................               10,288           9,564            26,961           17,108
   Provision for doubtful accounts...............                  ---             ---            66,176              ---
   Depreciation and amortization.................               10,526          10,393            31,025           29,801
                                                                ------          ------           -------          -------
          Total operating expenses...............               27,613          26,959           145,593           68,320

          Operating income.......................               18,249          36,488            40,379           64,165

Other expenses:
   Interest expense..............................                7,124           7,667            21,724           23,204
   Amortization on deferred financing............                  401             402             1,205            1,205
                                                                ------          ------           -------          -------
          Total other expenses...................                7,525           8,069            22,929           24,409


          Net income.............................            $  10,724       $  28,419         $  17,450         $ 39,756
                                                                ======          ======            ======           ======

</TABLE>




See accompanying notes to the unaudited condensed combined financial statements.



                                       33


<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,
                                                                       2001                 2000

    <S>                                                              <C>                  <C>
    Net cash provided by (used in) operating activities....          $  61,058            $  60,543
    Net cash provided by (used in) investing activities....             (5,858)              40,223
    Net cash provided by (used in) financing activities....            (29,028)             (64,846)
                                                                        ------               ------
    Net change in cash and cash equivalents................          $  26,172            $  35,920
                                                                        ======               ======

    Supplemental cash flow disclosure:
        Cash paid for interest.............................          $  14,631            $  15,660
                                                                        ======               ======

</TABLE>




See accompanying notes to the unaudited condensed combined financial statements.



                                       34


<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)      New Accounting Pronouncements

In June 1998, the Financial  Accounting  Standards Board (FASB) issued Financial
Accounting Standards No. (FAS) 133,  "Accounting for Derivative  Instruments and
Hedging  Activities."  In June 2000,  FASB issued FAS No. 138,  "Accounting  for
Certain  Derivative  Instruments and Hedging  Activities," which amended FAS No.
133 and addressed  certain  implementation  issues.  The  statement  establishes
accounting  and  reporting  standards  requiring  every  derivative   instrument
(including  certain  derivative  instruments  embedded  in other  contracts)  be
recorded in the balance  sheet as either an asset or  liability  measured at its
fair value. The statement requires the changes in the derivative's fair value be
recognized  currently in earnings unless specific hedge accounting  criteria are
met. The Coso  Partnership's  have adopted FAS 133, as amended and assessed that
it has no material effect on their financial statements.



                                       35


<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


(b)      Reports on Form 8-K

                 None


<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-31-2000           DEC-31-2001
                                            -----------           -----------
                                            mmm-dd-yyyy           mmm-dd-yyyy
PERIOD START
(example: JAN-01-1997)                      Jan-01-2000           JAN-01-2001
                                            -----------           -----------
                                            mmm-dd-yyyy           mmm-dd-yyyy
PERIOD END
(example: SEP-30-1997)                      Dec-31-2000           SEP-30-2001
                                            -----------           -----------
                                            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                                            331,353                     327,217
ALLOWANCES                                                   0                           0
INVENTORY                                                    0                           0
CURRENT ASSETDS                                          1,286                       8,359
PP&E                                                         0                           0
DEPRECIATION                                                 0                           0
TOTAL ASSETS                                           331,353                     327,217
CURRENT LIABILITIES                                      1,286                       8,359
BONDS                                                  300,067                     318,858
PREFERRED MANDATORY                                          0                           0
PREFERRED                                                    0                           0
COMMON                                                       0                           0
OTHER SE                                                     0                           0
TOTAL LIABILITY AND EQUITY                             331,353                     327,217
SALES                                                        0                           0
TOTAL REVENUES                                          30,799                      21,703
CGS                                                          0                           0
TOTAL COSTS                                                  0                           0
OTHER EXPENSES                                               0                           0
LOSS PROVISION                                               0                           0
INTEREST EXPENSES                                       30,799                      21,703
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-31-2000          DEC-31-2001
                                            -----------          -----------
                                            mmm-dd-yyyy          mmm-dd-yyyy
PERIOD START
(example: JAN-01-1997)                      Jan-01-2000          JAN-01-2001
                                            -----------          -----------
                                            mmm-dd-yyyy          mmm-dd-yyyy
PERIOD END
(example: SEP-30-1997)                      Dec-31-2000          SEP-30-2001
                                            -----------          -----------
                                            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                                                     3,506                      13,719
SECURITIES                                              22,996                      24,414
RECEIVABLES                                             17,715                      49,140
ALLOWANCES                                              15,234                      36,847
INVENTORY                                                    0                           0
CURRENT ASSETS                                           6,796                      26,954
PP&E                                                   228,718                     229,552
DEPRECIATION                                            79,642                      86,855
TOTAL ASSETS                                           198,409                     212,331
CURRENT LIABILITIES                                     16,554                      28,317
BONDS                                                  134,984                     129,893
PREFERRED MANDATORY                                          0                           0
PREFERRED                                                    0                           0
COMMON                                                       0                           0
OTHER SE                                                     0                           0
TOTAL LIABILITY AND EQUITY                             198,409                     212,331
SALES                                                   67,653                      67,314
TOTAL REVENUES                                          70,159                      69,469
CGS                                                          0                           0
TOTAL COSTS                                                  0                           0
OTHER EXPENSES                                          44,358                      49,688
LOSS PROVISION                                               0                           0
INTEREST EXPENSES                                       13,013                       9,241
INCOME PRETAX                                                0                           0
INCOME TAX                                                   0                           0
INCOME CONTINUING                                            0                           0
DISCONTINUED                                                 0                           0
EXTRAORDINARY                                                0                           0
CHANGES                                                      0                           0
NET INCOME                                              12,788                      10,540
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-31-2000          DEC-31-2001
                                            -----------          -----------
                                            mmm-dd-yyyy          mmm-dd-yyyy
PERIOD START
(example: JAN-01-1997)                      Jan-01-2000          JAN-01-2001
                                            -----------          -----------
                                            mmm-dd-yyyy          mmm-dd-yyyy
PERIOD END
(example: SEP-30-1997)                      Dec-31-2000          SEP-30-2001
                                            -----------          -----------
                                            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                                                     5,862                      18,216
SECURITIES                                              14,502                       8,160
RECEIVABLES                                             15,684                      42,548
ALLOWANCES                                              15,279                      37,109
INVENTORY                                                    0                           0
CURRENT ASSETS                                           7,280                      24,881
PP&E                                                   238,244                     247,265
DEPRECIATION                                            84,626                      95,210
TOTAL ASSETS                                           201,312                     209,788
CURRENT LIABILITIES                                     31,160                      36,892
BONDS                                                  100,907                      99,040
PREFERRED MANDATORY                                          0                           0
PREFERRED                                                    0                           0
COMMON                                                       0                           0
OTHER SE                                                     0                           0
TOTAL LIABILITY AND EQUITY                             201,312                     209,788
SALES                                                   57,453                      59,022
TOTAL REVENUES                                          65,578                      61,899
CGS                                                          0                           0
TOTAL COSTS                                                  0                           0
OTHER EXPENSES                                          46,693                      46,299
LOSS PROVISION                                               0                           0
INTEREST EXPENSES                                        9,492                       6,971
INCOME PRETAX                                                0                           0
INCOME TAX                                                   0                           0
INCOME CONTINUING                                            0                           0
DISCONTINUED                                                 0                           0
EXTRAORDINARY                                                0                           0
CHANGES                                                      0                           0
NET INCOME                                               9,393                       8,629
(Value may contain up to 3 decimal places)
EPS DILUTED                                                  0                           0
(Value may contain up to 3 decimal places)

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



<PAGE>

                                  EXHIBIT 27.4

                                    Form S-X

                       Commercial and Industrial Companies

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

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

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

Do you wish to include a LEGEND?       This schedule  contains summary financial
                      Yes X  No        information extracted from *_____________
                   ---   ---           and is equalified in its entirety by
                                       reference to such financial statements.
                                       *Identify the financial statement(s) to
                                       be referenced in the legend:
RESTATED
Are your financials being "restated"          (NO VALUE REQUIRED)
from a previously file period?
                      Yes  X No
                   ---    ---
CIK                                       Use this section only for coregistrant
Does this data apply to a coregistrant    filings.
                      Yes  X No
                   ---    ---             COREGISTRANT CIK:

NAME                                      Use this section only for coregistrant
Does this data apply to a coregistrant    filings.
                      Yes  X No
                   ---    ---             COREGISTRANT NAME:
MULTIPLIER
Do the financials require a multiplier        X 1,000        1,000,000,000
other than 1 (one)?                          ---         ----
                    X Yes    No                 1,000,000    1,000,000,000,000
                   ---    ---                ---         ----

CURRENCY                                       CURRENCY OF FINANCIAL DATA:
Is the currency used other than US
Dollars? Use in conjunction with
EXCHANGE RATE tag.
                      Yes  X No
                   ---    ---
PERIOD TYPE                                     - MOS     X   9  - MOS
                                         -- ----         -- ----
                                                X YEAR            YEAR
                                               ---             ---
                                            (for annual report filings)
                                                  OTHER           OTHER
                                              ----            ----
FISCAL YEAR END
(example: DEC-31-1997)                      Dec-31-2000          DEC-31-2001
                                            -----------          -----------
                                            mmm-dd-yyyy          mmm-dd-yyyy
PERIOD START
(example: JAN-01-1997)                      Jan-01-2000          JAN-01-2001
                                            -----------          -----------
                                            mmm-dd-yyyy          mmm-dd-yyyy
PERIOD END
(example: SEP-30-1997)                      Dec-31-2000          SEP-30-2001
                                            -----------          -----------
                                            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                                                     7,741                      11,346
SECURITIES                                              10,214                      10,728
RECEIVABLES                                             21,294                      45,660
ALLOWANCES                                              15,312                      38,045
INVENTORY                                                    0                           0
CURRENT ASSETS                                          14,572                      19,909
PP&E                                                   209,605                     210,230
DEPRECIATION                                            72,658                      82,332
TOTAL ASSETS                                           195,693                     189,817
CURRENT LIABILITIES                                     14,094                      24,699
BONDS                                                  94,176                       89,925
PREFERRED MANDATORY                                          0                           0
PREFERRED                                                    0                           0
COMMON                                                       0                           0
OTHER SE                                                     0                           0
TOTAL LIABILITY AND EQUITY                             195,639                     189,817
SALES                                                   58,366                      52,469
TOTAL REVENUES                                          61,234                      54,604
CGS                                                          0                           0
TOTAL COSTS                                                  0                           0
OTHER EXPENSES                                          49,895                      49,606
LOSS PROVISION                                               0                           0
INTEREST EXPENSES                                        9,899                       6,717
INCOME PRETAX                                                0                           0
INCOME TAX                                                   0                           0
INCOME CONTINUING                                            0                           0
DISCONTINUED                                                 0                           0
EXTRAORDINARY                                                0                           0
CHANGES                                                      0                           0
NET INCOME                                               1,440                      (1,719)
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>


                                   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 7, 2001             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)