FORM 10-Q

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

                                       or

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

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

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

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

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


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

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

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


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.
[X] Yes [ ] No

                     APPLICABLE ONLY TO CORPORATE ISSUERS:

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

        300 shares in Caithness Coso Funding Corp. as of August 14, 2003
        ----------------------------------------------------------------

<PAGE>


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


PART I.    FINANCIAL INFORMATION                                        Page No.

ITEM 1.    Financial Statements


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

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

   Coso Energy Developers
   Unaudited condensed balance sheets at June 30, 2003 and
     December 31, 2002                                                        12
   Unaudited condensed statements of operations for the three-months
     ended June 30, 2003, the three-months ended June 30, 2002,
     the six-months ended June 30, 2003, and the six-months
     ended June 30, 2002                                                      13
   Unaudited condensed statements of cash flows for the six-months
     ended June 30, 2003, and the six-months ended June 30, 2002              14
   Notes to the unaudited condensed financial statements                      15

   Coso Power Developers
   Unaudited condensed balance sheets at June 30, 2003 and
     December 31, 2002                                                        16
   Unaudited condensed statements of operations for the three-months
     ended June 30, 2003, the three-months ended June 30, 2002,
     the six-months ended June 30, 2003, and the six-months
     ended June 30, 2002                                                      17
   Unaudited condensed statements of cash flows the six-months
     ended June 30, 2003, and the six-months ended June 30, 2002              18
   Notes to the unaudited condensed financial statements                      19

                                       2

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

PART II.  OTHER INFORMATION

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

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

                                       3

<PAGE>




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



                                                           June 30,           December 31,
                                                             2003                2002
                                                                                (Note)
<S>                                                      <C>                  <C>
Assets:
   Accrued interest receivable.......................    $   1,021            $   1,130
   Project loan to Coso Finance Partners.............      105,560              110,955
   Project loan to Coso Energy Developers............       87,854               89,875
   Project loan to Coso Power Developers.............       76,739               80,401
                                                            ------               ------

                                                         $ 271,174            $ 282,361
                                                           =======              =======


Liabilities and Stockholders' Equity:
   Senior secured notes:
      Accrued interest payable.......................    $   1,021            $   1,130
      9.05% notes due 2009...........................      270,153              281,231
                                                           -------              -------
                                                           271,174              282,361
                                                                 -                    -
Stockholders' equity.................................      -------              -------

                                                         $ 271,174            $ 282,361
                                                           =======              =======
</TABLE>




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




     See accompanying notes to the unaudited condensed financial statements

                                       4

<PAGE>


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

<S>                                    <C>               <C>               <C>             <C>
                                       Three-Months      Three-Months      Six-Months      Six-Months
                                           Ended             Ended           Ended           Ended
                                          June 30,          June 30,        June 30,        June 30,
                                            2003              2002            2003            2002

Interest income................         $  6,323          $  6,856        $  12,617       $  13,710
Interest expense...............           (6,323)           (6,856)         (12,617)        (13,710)
                                          -------           -------         --------        --------

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




     See accompanying notes to the unaudited condensed financial statements

                                        5

<PAGE>

                                   CAITHNESS COSO FUNDING CORP.
                           UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
                                      (Dollars in thousands)
<TABLE>
<CAPTION>
                                                                   Six-Months          Six-Months
                                                                     Ended               Ended
                                                                    June 30,            June 30,
                                                                      2003                2002


<S>                                                               <C>                 <C>
Net cash provided by (used in) investing activities......         $   11,187          $   8,710
Net cash provided by (used in) financing activities......            (11,187)            (8,710)
                                                                     --------            -------
Net change in cash and cash equivalents..................         $      ---          $     ---
                                                                     ========            =======

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




     See accompanying notes to the unaudited condensed financial statements

                                        6

<PAGE>


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


(1)  Organization and Operations

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

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

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

(2)  Basis of Presentation

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

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

                                       7
<PAGE>

                                           COSO FINANCE PARTNERS
                                    UNAUDITED CONDENSED BALANCE SHEETS
                                          (Dollars in thousands)
<TABLE>
<CAPTION>
                                                                                June 30,          December 31,
                                                                                 2003                 2002
                                                                                                     (Note)
<S>                                                                           <C>                 <C>
Assets:
   Cash and cash equivalents..............................................    $   2,144           $   4,215
   Restricted cash and investments........................................       31,399              28,692
   Accounts receivable, net...............................................        9,671               7,431
   Prepaid expenses & other assets........................................          251               1,068
   Amounts due from related parties.......................................        1,535               1,190
   Property, plant & equipment, net.......................................      133,855             136,313
   Power purchase agreement, net..........................................        9,371               9,945
   Advances to New CLPSI Company, LLC.....................................        4,152               4,010
   Deferred financing costs, net..........................................        2,051               2,208
                                                                                -------             -------

                                                                              $ 194,429           $ 195,072
                                                                                =======             =======


Liabilities and Partners' Capital:
   Accounts payable and accrued liabilities...............................    $   3,276           $   5,764
   Amounts due to related parties.........................................          488                 467
   Other liabilities......................................................       15,102              12,478
   Project loans..........................................................      105,558             110,955
                                                                                -------             -------
                                                                                124,424             129,664
Partners' capital.........................................................       70,005              65,408
                                                                                -------             -------

                                                                              $ 194,429           $ 195,072
                                                                                =======             =======
</TABLE>




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




     See accompanying notes to the unaudited condensed financial statements

                                        8

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


                                                           Three-Months       Three-Months       Six-Months       Six-Months
                                                               Ended              Ended            Ended            Ended
                                                              June 30,           June 30,         June 30,         June 30,
                                                                2003               2002             2003             2002
<S>                                                         <C>                <C>              <C>              <C>
Revenue:
   Energy revenues................................          $  11,757          $  10,762        $  23,055        $  53,112
   Capacity revenues..............................              3,566              3,566            4,821            6,714
                                                               ------             ------           ------           ------
          Total revenue...........................             15,323             14,328           27,876           59,826

Operating expenses:
   Plant operating expenses.......................              2,317              2,261            4,584            4,568
   Royalty expense................................              3,940              3,419            6,621            5,631
   Depreciation and amortization..................              2,715              2,541            5,277            5,077
                                                               ------             ------           ------           ------
          Total operating expenses................              8,972              8,221           16,482           15,276

          Operating income........................              6,351              6,107           11,394           44,550

Other (income)/expenses:
    Interest and other income.....................                (55)            (1,045)            (114)          (1,519)
    Interest expense..............................              2,491              2,773            4,974            5,548
    Amortization of deferred financing costs......                 79                 79              158              158
                                                               ------             ------           ------           ------
          Total other expenses....................              2,515              1,807            5,018            4,187
                                                               ------             ------           ------           ------

 Income before cumulative effect of change
    in accounting principle.......................              3,836              4,300            6,376           40,363

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

           Net income.............................          $   3,836          $   4,300        $   4,596        $  40,363
                                                               ======             ======           ======           ======
</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>
                                                                 Six-Months          Six-Months
                                                                   Ended               Ended
                                                                  June 30,            June 30,
                                                                    2003                2002

<S>                                                             <C>                  <C>
Net cash provided by (used in) operating activities.....        $   8,390            $  44,724
Net cash provided by (used in) investing activities.....           (5,064)              (2,835)
Net cash provided by (used in) financing activities.....           (5,397)             (40,570)
                                                                   -------             --------
Net change in cash and cash equivalents.................        $  (2,071)           $   1,319
                                                                   =======             ========

Supplemental cash flow disclosure:
    Cash paid for interest..............................        $   5,021            $   5,545
                                                                   =======             ========
</TABLE>





     See accompanying notes to the unaudited condensed financial statements

                                       10


<PAGE>


                              COSO FINANCE PARTNERS
              NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS


(1)  Organization and Operation

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

(2)  Basis of Presentation

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

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

(3)  Accounts Receivable and Revenue Recognition

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

(4)  Reclassifications

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

(5)  New Accounting Pronouncements

In June 2001,  the  Financial  Accounting  Standards  Board issued  Statement of
Financial  Accounting  Standards (SFAS) No. 143, Accounting for Asset Retirement
Obligations.  This Statement  addresses  financial  accounting and reporting for
obligations associated with the retirement of tangible long-lived assets and the
associated asset  retirement costs and amends SFAS No. 19, Financial  Accounting
and Reporting by Oil and Gas Producing  Companies.  The Statement  requires that
the fair value of a liability for an asset  retirement  obligation be recognized
in the period in which it is incurred if a reasonable estimate of fair value can
be made, and that the associated  asset  retirement costs be capitalized as part
of the carrying amount of the long-lived  asset.  The Statement is effective for
financial statements issued for fiscal years beginning after June 15, 2002. As a
result  of the  adoption  of SFAS No.  143,  CFP was  required  to  recognize  a
liability of $2,039,  a net asset of $259 and a loss from the cumulative  effect
of a change in  accounting  principle  of $1,780 as of January  1, 2003.  Annual
depreciation  and accretion  expense  resulting from adoption of SFAS No. 143 is
estimated to be $218.

                                       11


<PAGE>


                                               COSO ENERGY DEVELOPERS
                                         UNAUDITED CONDENSED BALANCE SHEETS
                                               (Dollars in thousands)
<TABLE>
<CAPTION>
                                                                                  June 30,          December 31,
                                                                                    2003                2002
                                                                                                       (Note)
<S>                                                                            <C>                  <C>
Assets:
   Cash and cash equivalents..............................................     $    6,650           $    1,423
   Restricted cash and investments........................................          7,573                6,646
   Accounts receivable, net...............................................          9,084                6,681
   Prepaid expenses and other assets......................................            228                1,370
   Amounts due from related parties.......................................            431                  421
   Property, plant and equipment, net.....................................        133,784              135,853
   Power purchase agreement, net..........................................         16,829               17,365
   Investment in Coso Transmission Line Partners..........................          2,597                2,653
   Advances to New CLPSI Company, LLC.....................................            592                  674
   Deferred financing costs, net..........................................          1,657                1,785
                                                                                  -------              -------

                                                                               $  179,425           $  174,871
                                                                                  =======              =======


Liabilities and Partners' Capital:
   Accounts payable and accrued liabilities...............................     $    1,636           $    1,644
   Amounts due to related parties.........................................         26,488               26,317
   Other liabilities......................................................          1,610                  432
   Project loans..........................................................         87,853               89,875
                                                                                  -------              -------
                                                                                  117,587              118,268
Partners' capital.........................................................         61,838               56,603
                                                                                  -------              -------

                                                                               $  179,425           $  174,871
                                                                                  =======              =======
</TABLE>



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





     See accompanying notes to the unaudited condensed financial statements

                                       12

<PAGE>
<TABLE>
<CAPTION>

                                                      COSO ENERGY DEVELOPERS
                                           UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
                                                      (Dollars in thousands)


                                                       Three-Months       Three-Months       Six-Months       Six-Months
                                                           Ended              Ended            Ended            Ended
                                                          June 30,           June 30,         June 30,         June 30,
                                                            2003               2002             2003             2002
<S>                                                    <C>                <C>               <C>              <C>
Revenue:
   Energy revenues..............................       $   8,126          $   7,706         $  16,233        $  48,135
   Capacity revenues............................           3,484              3,484             4,711            6,535
                                                          ------             ------            ------           ------
          Total revenue.........................          11,610             11,190            20,944           54,670

Operating expenses:
   Plant operating expenses.....................           3,026              2,648             5,764            5,253
   Royalty expense..............................             664                664               689              675
   Depreciation and amortization................           2,344              4,173             4,684            8,232
                                                          ------             ------            ------           ------
          Total operating expenses..............           6,034              7,485            11,137           14,160

          Operating income......................           5,576              3,705             9,807           40,510

Other (income)/expenses:
   Interest and other income....................            (231)              (260)             (513)            (902)
   Interest expense.............................           2,023              2,177             4,034            4,357
   Amortization of deferred financing costs.....              63                 63               127              127
                                                          ------             ------            ------           ------
          Total other expenses..................           1,855              1,980             3,648            3,582
                                                          ------             ------            ------           ------

Income before cumulative effect of change
   in accounting principle......................           3,721              1,725             6,159           36,928

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

           Net income...........................       $   3,721          $   1,725         $   5,235        $  36,928
                                                          ======             ======            ======           ======
</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>
                                                                   Six-Months           Six-Months
                                                                     Ended                Ended
                                                                    June 30,             June 30,
                                                                      2003                 2002
<S>                                                               <C>                  <C>

Net cash provided by (used in) operating activities..........     $  10,303            $  31,657
Net cash provided by (used in) investing activities..........        (3,054)              (1,747)
Net cash provided by (used in) financing activities..........        (2,022)             (29,519)
                                                                     -------             --------
Net change in cash and cash equivalents......................         5,227                  391
                                                                     =======             ========
Supplemental cash flow disclosure:
    Cash paid for interest...................................     $   4,067            $   4,355
                                                                     =======             ========
</TABLE>






     See accompanying notes to the unaudited condensed financial statements

                                       14

<PAGE>


                             COSO ENERGY DEVELOPERS
              NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS


(1)  Organization and Operation

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

(2)  Basis of Presentation

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

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

(3)  Accounts Receivable and Revenue Recognition

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

(4)  Reclassifications

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

(5)  New Accounting Pronouncements

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

                                       15

<PAGE>

                                             COSO POWER DEVELOPERS
                                      UNAUDITED CONDENSED BALANCE SHEETS
                                            (Dollars in thousands)
<TABLE>
<CAPTION>
                                                                                     June 30,       December 31,
                                                                                       2003             2002
                                                                                                       (Note)
<S>                                                                                <C>               <C>
Assets:
   Cash and cash equivalents................................................       $     599         $     824
   Restricted cash and investments..........................................          10,545            10,855
   Accounts receivable, net.................................................           9,293             7,234
   Prepaid expenses and other assets........................................             229             1,111
   Amounts due from related parties.........................................           6,293             5,902
   Property, plant and equipment, net.......................................         116,747           116,192
   Power purchase agreement, net............................................          18,629            20,026
   Investment in Coso Transmission Line Partners............................           3,194             3,260
   Advances to New CLPSI Company, LLC.......................................           1,884             1,911
   Deferred financing costs, net............................................           1,410             1,519
                                                                                     -------           -------

                                                                                   $ 168,823         $ 168,834
                                                                                     =======           =======


Liabilities and Partners' Capital:
   Accounts payable and accrued liabilities.................................       $   1,959         $   1,948
   Amounts due to related parties...........................................           1,465               758
   Other liabilities........................................................           2,604               366
   Project loans............................................................          76,739            80,401
                                                                                     -------           -------
                                                                                      82,767            83,473
Partners' capital...........................................................          86,056            85,361
                                                                                     -------           -------

                                                                                   $ 168,823         $ 168,834
                                                                                     =======           =======
</TABLE>





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




     See accompanying notes to the unaudited condensed financial statements

                                       16

<PAGE>
<TABLE>
<CAPTION>

                                                    COSO POWER DEVELOPERS
                                        UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
                                                   (Dollars in thousands)


                                                         Three-Months        Three-Months        Six-Months         Six-Months
                                                             Ended               Ended             Ended              Ended
                                                            June 30,            June 30,          June 30,           June 30,
                                                              2003                2002              2003               2002
<S>                                                       <C>                 <C>                <C>                <C>
Revenue:
   Energy revenues................................        $   7,321           $   6,266          $  14,599          $  47,637
   Capacity revenues..............................            3,504               3,505              4,738              6,556
                                                             ------              ------             ------             ------
          Total revenue...........................           10,825               9,771             19,337             54,193

Operating expenses:
   Plant operating expenses.......................            2,493               2,519              4,848              4,490
   Royalty expense................................            1,703               1,692              3,715              2,749
   Depreciation and amortization..................            2,492               3,830              5,260              7,659
                                                             ------              ------             ------             ------
          Total operating expenses................            6,688               8,041             13,283             14,898

          Operating income........................            4,137               1,730              6,054             39,295

Other (income)/expenses:
   Interest and other income......................              (54)               (169)              (133)              (651)
   Interest expense...............................            1,806               1,905              3,605              3,813
   Amortization of deferred financing costs.......               55                  54                109                108
                                                             ------              ------             ------             ------
          Total other expenses....................            1,807               1,790              3,581              3,270
                                                             ------              ------             ------             ------

Income before cumulative effect of change
    in accounting principle.......................            2,330                 (60)             2,473             36,025

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

           Net income (loss)......................        $   2,330           $     (60)         $     696          $  36,025
                                                             ======              =======            ======             ======
</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>
                                                                           Six-Months        Six-Months
                                                                             Ended             Ended
                                                                            June 30,          June 30,
                                                                              2003              2002
<S>                                                                       <C>               <C>

  Net cash provided by (used in) operating activities.............        $   7,707         $  18,948
  Net cash provided by (used in) investing activities.............           (4,270)           (1,041)
  Net cash provided by (used in) financing activities.............           (3,662)          (17,776)
                                                                             -------          --------
  Net change in cash and cash equivalents.........................        $    (225)        $     131
                                                                             =======          ========
  Supplemental cash flow disclosure:
      Cash paid for interest......................................        $   3,638         $   3,810
                                                                             =======          ========
</TABLE>






     See accompanying notes to the unaudited condensed financial statements

                                       18
<PAGE>
                              COSO POWER DEVELOPERS
              NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS


(1)  Organization and Operation

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

(2)  Basis of Presentation

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

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

(3)  Accounts Receivable and Revenue Recognition

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

(4)  Reclassifications

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

(5)      New Accounting Pronouncements

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

                                       19
<PAGE>

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

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


General

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

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

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

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

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

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


     Energy  payments were fixed for the first ten years of firm operation under
each power purchase  agreement.  After the first ten years of firm operation and
until  January 1, 2002,  Edison  made energy  payments to the Coso  Partnerships
based on its avoided cost of energy. Edison's avoided cost of energy is Edison's

                                       20

cost to generate  electricity if Edison were to produce it itself or buy it from
another power producer rather than buy it from the Coso Partnerships.  The fixed
energy price period expired in August 1997 for the Navy I Partnership,  in March
1999 for the BLM Partnership and in January 2000 for the Navy II Partnership.

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

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

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

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

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

     On May 28, 1999,  Funding Corp.  issued $110.0  million of 6.80% Notes that
were due in 2001,  and were paid off on December 15, 2001, and $303.0 million of
9.05%  Notes due in 2009.  The  proceeds  from the Notes were loaned to the Coso

                                     21

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

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

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

     On  September  23, 2002,  the United  States Court of Appeals for the Ninth
Circuit issued an opinion and order on appeal from a district court's stipulated
judgment,  which affirmed the stipulated judgment in part and referred questions
based on California state law to the California Supreme Court. The appeals court
stated that if the  Agreement  violated  California  state law, then the appeals
court would be required to void the stipulated judgment.  The California Supreme
Court has accepted  the Ninth  Circuit  Court of Appeals  request to address the
issues  referred to it in the  September  23, 2002  ruling.  On May 27, 2003 the
California  Supreme  Court  heard  oral  arguments  related to state law on this
matter.  Pending the findings of the  California  Supreme  Court,  the Agreement
remains in full force and effect.

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

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

                                       22

Capacity Utilization

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


     The following  data includes the operating  capacity  factor,  capacity and
electricity  production  (in kWh) for each  Coso  Partnership  on a  stand-alone
basis:
<TABLE>
<CAPTION>
                                                  Three-Months Ended                    Six-Months Ended
                                                        June 30                             June 30
<S>                                           <C>                <C>                <C>               <C>
                                               2003               2002               2003              2002
                                               ----               ----               ----              ----
Navy I Partnership (stand alone)
     Operating capacity factor                104.1%             102.5%             102.3%            104.5%
     Capacity (MW) (average)                   83.30              81.97              81.87             83.62
     kWh produced (000s)                      181,938            179,014            355,644           363,254

BLM Partnership (stand alone)
     Operating capacity factor                 88.5%              95.3%              88.6%             94.0%
     Capacity (MW) (average)                   70.78              76.25              70.85             75.21
     kWh produced (000s)                      154,585            166,533            307,762           326,694

Navy II Partnership (stand alone)
     Operating capacity factor                 96.5%              94.2%              97.4%            101.6%
     Capacity (MW) (average)                   77.20              75.34              77.90             81.25
     kWh produced (000s)                      168,606            164,552            338,401           352,966
</TABLE>

     Total energy  production for the BLM  Partnership was 154.6 million kWh and
307.8  million  kWh  for  the  three  and   six-months   ended  June  30,  2003,
respectively,  as  compared to 166.5  million kWh and 326.7  million kWh for the
same periods in 2002, decreases of 7.1% and 5.8%, respectively.  The decrease in
energy  production was primarily due to a decline in steam,  which management is
attempting  to  remediate  through  well  maintenance  and capital  improvements
including  the  addition of a new  production  well during the third  quarter of
2003. In an effort to increase  production  overall,  the Coso Partnerships have
implemented a capital program  including  drilling two new productions wells and
performing  workovers on various existing wells to regain production  limited by
wellbore  obstructions.  These efforts,  along with  modifications  to wellfield
piping and gas removal  systems,  improved  production at the Navy I and Navy II
Partnerships  during the second quarter of 2003. The Coso Partnerships expect to
further enhance the steam  utilization and efficiency of the projects  through a
turbine enhancement program and additional wellfield piping modifications.  With
respect to the reservoir,  an injection augmentation program, aimed at improving
reservoir  pressure  and  minimizing  resource  decline,  is  currently  in  the
engineering  design phase. The funds necessary to implement the well maintenance
and capital improvement  programs are available from reserves  established under
the Notes and from  excess cash flow  generated  after debt  service  during the
six-month period ending June 30, 2003.


Results of Operations for the three and six-months ended June 30, 2003 and 2002

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

                                       23

Revenue
<TABLE>
<CAPTION>
                                     Three-Months            Three-Months            Six-Months                 Six-Months
                                        Ended                   Ended                   Ended                      Ended
                                    June 30, 2003           June 30, 2002          June 30, 2003              June 30, 2002

                                    $      Cents/kWh        $      Cents/kWh       $      Cents/kWh           $      Cents/kWh
                                    -      ---------        -      ---------       -      ---------           -      ---------
<S>                              <C>          <C>        <C>          <C>       <C>          <C>           <C>          <C>
Total Operating Revenues
  Navy I Partnership             15,323       8.4        14,328       8.0       27,876       7.8           59,826       16.5
  BLM Partnership                11,610       7.5        11,190       6.7       20,944       6.8           54,670       16.7
  Navy II Partnership            10,825       6.4         9,771       5.9       19,337       5.7           54,193       15.4

Capacity & Capacity Bonus
Revenues
  Navy I Partnership              3,566       2.0         3,566       2.0        4,821       1.4            6,714        1.8
  BLM Partnership                 3,484       2.3         3,484       2.1        4,711       1.5            6,535        2.0
  Navy II Partnership             3,505       2.1         3,505       2.1        4,738       1.4            6,556        1.9

Energy Revenues, net
of steam transfers
  Navy I Partnership             11,757       6.5        10,762       6.0       23,055       6.5           53,112       14.6
  BLM Partnership                 8,126       5.3         7,706       4.6       16,233       5.3           48,135       14.7
  Navy II Partnership             7,320       4.3         6,266       3.8       14,599       4.3           47,637       13.5
</TABLE>


     Total  operating  revenues  for the Navy I,  BLM and Navy II  Partnerships,
which consist of capacity payments, capacity bonus payments and energy payments,
were $15.3  million,  $11.6  million and $10.8  million,  respectively,  for the
three-months  ended June 30, 2003, as compared to $14.3  million,  $11.2 million
and $9.8 million,  respectively, for the same period in 2002, increases of 7.0%,
3.6% and 10.2%,  respectively.  Total energy revenues, net of steam transfer for
the Navy I, BLM and Navy II  Partnerships  were $11.8 million,  $8.1 million and
$7.3  million,  respectively,  for the  three-months  ended  June 30,  2003,  as
compared to $10.8 million, $7.7 million and $6.3 million,  respectively, for the
same period in 2002, increases of 9.3%, 5.2% and 15.9%, respectively.  Each Coso
Partnership's  increase  in  operating  revenues,  and energy  revenues  for the
three-months  ended June 30, 2003, as compared to the same period in 2002,  were
primarily  due to the  increase  in the fixed  energy rate of 5.37 cents per kWh
during the  three-months  ended June 30, 2003,  as compared to the average fixed
energy rate of 4.66 cents per kWh paid for the same period in 2002.

     Total  operating  revenues  for the Navy I,  BLM and Navy II  Partnerships,
which consist of capacity payments, capacity bonus payments and energy payments,
were $27.9  million,  $20.9  million and $19.3  million,  respectively,  for the
six-months ended June 30, 2003, as compared to $59.8 million,  $54.7 million and
$54.2 million,  respectively,  for the same period in 2002,  decreases of 53.3%,
61.8% and 64.4%, respectively.  Capacity and capacity bonus revenues for each of
the Navy I, BLM and Navy II  Partnerships  were $4.8  million,  $4.7 million and
$4.7 million,  respectively, for the six-months ended June 30, 2003, as compared
to $6.7  million,  $6.5  million and $6.6  million,  respectively,  for the same
period in 2002, decreases of 28.4%, 27.7% and 28.8%, respectively.  Total energy
revenues,  net of steam  transfer  for the Navy I, BLM and Navy II  Partnerships
were $23.1  million,  $16.2  million and $14.6  million,  respectively,  for the
six-months ended June 30, 2003, as compared to $53.1 million,  $48.1 million and
$47.6 million,  respectively,  for the same period in 2002,  decreases of 56.5%,
66.3% and  69.3%,  respectively.  Each of the Coso  Partnerships'  decreases  in
operating revenues, capacity and capacity bonus revenues and energy revenues for
the six-months ended June 30, 2003, as compared to the same period in 2002, were
primarily due to the  recognition  of revenues  generated but not recognized for
the period from  November 1, 2000 through  March 26, 2001  discussed  above.  On
March 1, 2002,  the Navy I, BLM and Navy II  Partnerships  received  payment and
recognized   revenue  of  $37.3  million,   $37.1  million  and  $38.0  million,
respectively. These decreases were partially offset by the increase in the fixed
energy rate to 5.37 cents per kWh paid during the six-months ended June 30, 2003
as compared to the average  fixed energy rate of 3.96 cents per kWh for the same
period in 2002.

                                       24

Plant Operations
<TABLE>
<CAPTION>
                                 Three-Months             Three-Months              Six-Months               Six-Months
                                    Ended                    Ended                    Ended                    Ended
                                June 30, 2003            June 30, 2002            June 30, 2003            June 30, 2002

                                $      Cents/kWh         $      Cents/kWh         $      Cents/kWh         $      Cents/kWh
                                -      ---------         -      ---------         -      ---------         -      ---------
<S>                           <C>         <C>          <C>         <C>          <C>         <C>          <C>         <C>
  Navy I Partnership          2,317       1.3          2,261       1.3          4,584       1.3          4,568       1.3
  BLM Partnership             3,026       2.0          2,648       1.6          5,764       1.9          5,253       1.6
  Navy II Partnership         2,493       1.5          2,519       1.5          4,848       1.4          4,490       1.3
</TABLE>

     The BLM Partnership's  operating expenses,  including operating and general
and  administrative  expenses,  were $3.0 million and $5.8 million for the three
and six-months  ended June 30, 2003,  respectively,  as compared to $2.6 million
and $5.3  million  for the same  periods in 2002,  increases  of 15.4% and 9.4%,
respectively.  The increase in the BLM  Partnership's  operating  expenses  were
primarily due to increased  property taxes and maintenance costs incurred during
the three and  six-month  periods  ended June 30, 2003,  as compared to the same
period in 2002.

     The Navy II  Partnership's  operating  expenses,  including  operating  and
general and administrative  expenses, were $4.8 million for the six-months ended
June 30,  2003,  as  compared to $4.5  million for the same period in 2002,  and
increase of 6.7%. The increase in the Navy II Partnership's  operating  expenses
were due to increased  property taxes and well  maintenance cost incurred during
the six-month period ended June 30, 2003 as compared to the same period in 2002.
The change in the Navy II Partnerships  operating expenses,  including operating
and general and administrative  expenses were insignificant for the three-months
ended June 30, 2003 due to the increased  property taxes being partially  offset
by decreased maintenance costs during that period as compared to 2002.

     The  change  in the  Navy I  Partnership's  operating  expenses,  including
operating and general and  administrative  expenses were  insignificant  for the
three and six-months ended June 30, 2003 due to the increased property tax costs
being  partially  offset by  decreased  drilling  costs  during  that  period as
compared to 2002.


Royalty Expense
<TABLE>
<CAPTION>
                                 Three-Months             Three-Months              Six-Months               Six-Months
                                    Ended                    Ended                    Ended                    Ended
                                June 30, 2003            June 30, 2002            June 30, 2003            June 30, 2002

                                $      Cents/kWh         $      Cents/kWh         $      Cents/kWh         $      Cents/kWh
                                -      ---------         -      ---------         -      ---------         -      ---------
<S>                           <C>         <C>          <C>         <C>          <C>         <C>          <C>         <C>
  Navy I Partnership          3,940       2.2          3,419       1.9          6,621       1.9          5,631       1.6
  BLM Partnership               664       0.4            664       0.4            689       0.2            675       0.2
  Navy II Partnership         1,703       1.0          1,692       1.0          3,175       0.9          2,749       0.8
</TABLE>

     The Navy I  Partnership's  royalty  expenses  were  $3.9  million  and $6.6
million  for the three and  six-months  ended June 30,  2003,  respectively,  as
compared  to $3.4  million  and  $5.6  million  for the  same  periods  in 2002,
increases of 14.7% and 17.9%, respectively.  The increase in royalty expense for
the Navy I  Partnership  for the three and  six-months  ended June 30, 2003,  as
compared to the same periods in 2002,  were primarily due to the increase in the
fixed energy rate to 5.37 cents per kWh for the three and six-months  ended June
30, 2003 from 4.66 cents per kWh and 3.96 cents per kWh,  respectively,  for the
three and six-months ended June 30, 2002.

     The change in the BLM Partnership's royalty expenses was insignificant, for
the three and six-months ended June 30, 2003, as compared to the same periods in
2002.
     The  Navy  II  Partnership's  royalty  expense  was  $3.2  million  for the
six-months  ended June 30, 2003 as compared to $2.7  million for the same period
in 2002, an increase of 18.5%.  The increase in royalty  expense for the Navy II
Partnerships for the six-months ended June 30, 2003, as compared to the same

                                       25

period in 2002 was  primarily  due to the  increase in the fixed  energy rate to
5.37 cents per kWh for the  six-months  ended June 30,  2003 from 3.96 cents per
kWh for the six-months  ended June 30, 2002. The change in Navy II Partnership's
royalty expenses were insignificant for the three-months ended June 30, 2003, as
compared to the same period in 2002.


Depreciation and Amortization
<TABLE>
<CAPTION>
                               Three-Months             Three-Months              Six-Months               Six-Months
                                  Ended                    Ended                    Ended                    Ended
                              June 30, 2003            June 30, 2002            June 30, 2003            June 30, 2002

                              $      Cents/kWh         $      Cents/kWh         $      Cents/kWh         $      Cents/kWh
                              -      ---------         -      ---------         -      ---------         -      ---------
<S>                         <C>         <C>          <C>         <C>          <C>         <C>          <C>         <C>
  Navy I Partnership        2,715       1.5          2,541       1.4          5,277       1.5          5,077       1.4
  BLM Partnership           2,344       1.5          4,173       2.5          4,684       1.5          8,232       2.5
  Navy II Partnership       2,492       1.5          3,830       2.3          5,260       1.6          7,659       2.2
</TABLE>


     The Navy I Partnership's  depreciation and  amortization  expenses was $2.7
million for the  three-months  ended June 30, 2003,  as compared to $2.5 million
for the same period in 2002, an increase of 8.0%.  The increase in  depreciation
and amortization  for the  three-months  ended June 30, 2003, as compared to the
same period in 2002,  was due to an increase in  capitalized  assets during that
period in 2002.

     The BLM  Partnership's  depreciation  and  amortization  expenses were $2.3
million and $4.7 million,  respectively, for the three and six-months ended June
30, 2003 as compared to $4.2 million and $8.2  million,  for the same periods in
2002,  decreases  of 45.2% and  42.7%  respectively.  The Navy II  Partnership's
depreciation  and  amortization  expenses  were $2.5  million and $5.3  million,
respectively,  for the three and  six-months  ended June 30, 2003 as compared to
$3.8 million and $7.7 million,  for the same periods in 2002, decreases of 34.2%
and 31.2%,  respectively.  These  decreases in the BLM and Navy II  Partnerships
depreciation  and  amortization  expense for the three and six-months ended June
30,  2003,  as compared to the same period in 2002 were due to older wells being
fully depreciated during the second half of 2002.


Interest and Other Income
<TABLE>
<CAPTION>
                                   Three-Months             Three-Months              Six-Months               Six-Months
                                      Ended                     Ended                   Ended                    Ended
                                  June 30, 2003            June 30, 2002            June 30, 2003            June 30, 2002

                                  $      Cents/kWh         $      Cents/kWh         $      Cents/kWh         $      Cents/kWh
                                  -      ---------         -      ---------         -      ---------         -      ---------
<S>                               <C>       <C>          <C>         <C>            <C>       <C>          <C>         <C>
  Navy I Partnership               55       0.0          1,045       0.6            114       0.0          1,519       0.4
  BLM Partnership                 231       0.1            260       0.2            513       0.2            902       0.3
  Navy II Partnership              54       0.0            169       0.1            133       0.0            651       0.2
</TABLE>


     The Navy I Partnership's interest and other income was $0.1 million for the
three-months  ended June 30,  2003,  as  compared  to $1.0  million for the same
period in 2002,  a decrease of 90.0%.  The  decrease  was  primarily  due to the
collection of $0.8 million of insurance proceeds for lost revenue in 1999 caused
by equipment  failure during the three-months  ended June 30, 2002, as well as a
decrease  in the rate of return on  investments  due to lower  market  rates for
fixed income investments during that period in 2003.

                                       26

     The BLM  Partnership's  interest  and other income was $0.2 million for the
three-months  ended June 30,  2003,  as  compared  to $0.3  million for the same
period in 2002,  a decrease of 33.3%.  The Navy II  Partnership's  interest  and
other  income was $0.1  million for the  three-months  ended June 30,  2003,  as
compared to $0.2 million for the same period in 2002,  a decrease of 50.0%.  The
decreases in interest and other income for the BLM and Navy II Partnerships  for
the  three-months  ended June 30, 2003 were  primarily  due to a decrease in the
rate of return  on  investments  due to lower  market  rates  for  fixed  income
investments during that period in 2003.

     The Navy I, BLM and Navy II  Partnerships'  interest  and other income were
$0.1 million,  $0.5 million and $0.1 million,  respectively,  for the six-months
ended June 30, 2003 as compared to $1.5 million,  $0.9 million and $0.7 million,
for the same period in 2002, decreases of 93.3%, 44.4% and 85.7%,  respectively.
The  decreases  in  interest  and other  income  for the Navy I, BLM and Navy II
Partnerships  were  primarily  due to interest  on amounts in  arrears,  owed by
Edison in 2001, that were settled and paid by Edison on March 1, 2002.


Interest Expense
<TABLE>
<CAPTION>
                                     Three-Months             Three-Months              Six-Months               Six-Months
                                        Ended                    Ended                    Ended                    Ended
                                    June 30, 2003            June 30, 2002            June 30, 2003            June 30, 2002

                                    $      Cents/kWh         $      Cents/kWh         $      Cents/kWh         $      Cents/kWh
                                    -      ---------         -      ---------         -      ---------         -      ---------
<S>                               <C>         <C>          <C>         <C>          <C>         <C>          <C>         <C>
  Navy I Partnership              2,491       1.4          2,773       1.5          4,974       1.4          5,548       1.5
  BLM Partnership                 2,023       1.3          2,177       1.3          4,034       1.3          4,357       1.3
  Navy II Partnership             1,807       1.1          1,905       1.2          3,605       1.1          3,813       1.1
</TABLE>


     The Navy I Partnership's interest expense was $2.5 million and $5.0 million
for the three and six-months ended June 30, 2003,  respectively,  as compared to
$2.8 million and $5.5  million for the same periods in 2002,  decreases of 10.7%
and 9.1%, respectively.  The BLM Partnership's interest expense was $2.0 million
and $4.0 million for the three and six-months ended June 30, 2003, respectively,
as compared  to $2.2  million  and $4.4  million  for the same  periods in 2002,
decreases of 9.1% and 9.1%,  respectively.  The Navy II  Partnership's  interest
expense was $1.8  million and $3.6  million for the three and  six-months  ended
June 30,  2003,  respectively,  as compared to $1.9 million and $3.8 million for
the  same  periods  in  2002,  decreases  of 5.3% and  5.3%,  respectively.  The
decreases in interest  expense for the Navy I, BLM and Navy II Partnerships  for
the three and six-months ended June 30, 2003, as compared to the same periods in
2002,  were due to reductions  in the principal  amount of the project loan from
Funding Corp.


Change in Accounting Principle

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


Liquidity and Capital Resources

     Each of the  Navy I  Partnership,  the  BLM  Partnership  and  the  Navy II
Partnership derive  substantially all of their cash flow from Edison under their
power purchase  agreements and from interest  income earned on funds on deposit.
As of December 2001, the 6.8% notes were repaid,  subsequently  leaving the Coso
Partnerships with more cash flow annually. The Coso Partnerships have used their

                                       27

cash primarily for capital  expenditures for power plant improvements,  resource
and operating costs,  distributions to partners and payments with respect to the
project debt.

     The Coso  Partnerships  ability to meet their  obligations as they come due
will depend upon the ability of Edison to meet its  obligations  under the terms
of the standard offer No. 4 power purchase agreements and ability to continue to
generate electricity.  Edison's shortfall in collections,  coupled with its near
term capital  requirements,  materially  and  adversely  affected its  liquidity
during 2000 and 2001. In resolution of that issue,  Edison settled with the CPUC
on  October  2,  2001,  enabling  it to  recover  in retail  electric  rates its
historical  shortfall in electric  purchase  costs.  On September 23, 2002,  the
United States Court of Appeals for the Ninth Circuit issued an opinion and order
on appeal from the district  court's  stipulated  judgment,  which  affirmed the
stipulated judgment in part and referred questions based on California state law
to the  Supreme  Court of  California.  The  appeals  court  stated  that if the
Agreement violated California state law then the appeals court would be required
to void the stipulated  judgment.  The California Supreme Court has accepted the
Ninth Circuit Court of Appeals  request to address the issues  referred to it in
the  September  23, 2002 ruling.  On May 27, 2003 the  California  Supreme Court
heard oral arguments  related to state law on this matter.  Pending the findings
of the California Supreme Court, the Agreement remains in full force and effect.
It is unclear what effect an adverse ruling would have on the Coso Partnerships,
but  could  result  in a  modification  to  the  Agreement.

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

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


     The  following  table sets  forth a summary of each the Coso  Partnership's
cash flows for the six-months ended June 30, 2003 and June 30, 2002.
<TABLE>
<CAPTION>
                                                                      Six-Months               Six-Months
                                                                        Ended                    Ended
                                                                    June 30, 2003            June 30, 2002
<S>                                                                  <C>                        <C>
Navy I Partnership (stand alone)
  Net cash provided by (used in) operating activities                $   8,390                 $  44,722
  Net cash provided by (used in) investing activities                   (5,064)                   (2,835)
  Net cash provided by (used in) financing activities                   (5,397)                  (40,568)
                                                                        -------                  --------
      Net change in cash and cash equivalents                        $  (2,071)                $   1,319
                                                                        =======                  ========

BLM Partnership (stand alone)
  Net cash provided by (used in) operating activities                $  10,303                 $  31,657
  Net cash provided by (used in) investing activities                   (3,054)                   (1,747)
  Net cash provided by (used in) financing activities                   (2,022)                  (29,519)
                                                                        -------                  --------
      Net change in cash and cash equivalents                        $   5,227                 $     391
                                                                        =======                  ========

Navy II Partnership (stand alone)
  Net cash provided by (used in) operating activities                $   7,707                 $  18,948
  Net cash provided by (used in) investing activities                   (4,270)                   (1,041)
  Net cash provided by (used in) financing activities                   (3,662)                  (17,776)
                                                                        -------                  --------
      Net change in cash and cash equivalents                        $    (225)                $     131
                                                                        =======                  ========
</TABLE>
                                       28

     The Navy I Partnership's cash flows from operating  activities decreased by
$36.3  million for the  six-months  ended June 30, 2003, as compared to the same
period in 2002,  primarily  due to the increase in net income in 2002  resulting
from Edison's  payment  received on March 1, 2002 for revenue  generated but not
recognized for the period November 1, 2000 through March 26, 2001 and a decrease
in amounts due from related parties.

     Cash used in investing  activities at the Navy I  Partnership  increased by
$2.3 million for the  six-months  ended June 30,  2003,  as compared to the same
period in 2002, primarily due to an increase in capital expenditures during that
period in 2003.

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

     The BLM  Partnership's  cash flows from operating  activities  decreased by
$21.4  million for the  six-months  ended June 30, 2003, as compared to the same
period in 2002,  primarily  due to the  increase  in net income  resulting  from
Edison's  payment  received  on March  1,  2002 for  revenue  generated  but not
recognized  for the period  November 1, 2000 through  March 26, 2001,  partially
offset by an increase in trade payables.

     Cash used in investing activities at the BLM Partnership  increased by $1.4
million for the  six-months  ended June 30, 2003, as compared to the same period
in 2002, primarily due to an increase in capital expenditures during that period
in 2003.

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

     The Navy II Partnership's cash flows from operating activities decreased by
$11.2  million for the  six-months  ended June 30, 2003, as compared to the same
period in 2002,  primarily  due to the  increase  in net income  resulting  from
Edison's  payment  received  on March  1,  2002 for  revenue  generated  but not
recognized  for the period  November 1, 2000 through  March 26, 2001,  partially
offset by an increase in trade payables.

     Cash used in investing  activities at the Navy II Partnership  increased by
$3.3 million for the  six-months  ended June 30,  2003,  as compared to the same
period in 2002, primarily due to an increase in capital  expenditures  partially
offset by a decrease in restricted cash requirements associated with the project
loan from Funding Corp. during 2003.

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

                                       29

PART II.  OTHER INFORMATION


ITEM 1.   Legal Proceedings

General

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


ITEM 2.  Change in Securities and Use of Proceeds

                  None.

ITEM 3.  Defaults Upon Senior Securities

                  None.

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

                  None.

ITEM 5.  Other Information

 Supplemental Condensed Combined Financial Information for the Coso Partnerships

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

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

                                       30

<PAGE>


                                                COSO PARTNERSHIPS
                                   UNAUDITED CONDENSED COMBINED BALANCE SHEETS
                                             (Dollars in thousands)
<TABLE>
<CAPTION>
                                                                                          June 30,          December 31,
                                                                                           2003                2002

<S>                                                                                      <C>                 <C>
Assets:
   Cash and cash equivalents....................................................         $   9,393           $   6,462
   Restricted cash and investments..............................................            49,517              46,193
   Accounts receivable, net.....................................................            28,048              21,346
   Prepaid expenses and other assets............................................               708               3,549
   Amounts due from related parties.............................................             8,259               6,516
   Property, plant and equipment, net...........................................           384,386             388,358
   Power purchase agreement, net................................................            44,829              47,336
   Investments and advances.....................................................            12,419              12,508
   Deferred financing costs, net................................................             5,118               5,512
                                                                                           -------             -------

                                                                                         $ 542,677           $ 537,780
                                                                                           =======             =======

Liabilities and Partners' Capital:
   Accounts payable and accrued liabilities.....................................         $   6,871           $  10,486
   Amounts due to related parties...............................................            28,441              25,415
   Other liabilities............................................................            19,316              13,276
   Project loans................................................................           270,150             281,231
                                                                                           -------             -------
                                                                                           324,778             330,408
Partners' capital...............................................................           217,899             207,372
                                                                                           -------             -------

                                                                                         $ 542,677           $ 537,780
                                                                                           =======             =======
</TABLE>




See accompanying notes to the unaudited condensed combined financial statements.

                                       31

<PAGE>
<TABLE>
<CAPTION>

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



                                                         Three-Months       Three-Months       Six-Months       Six-Months
                                                            Ended              Ended             Ended            Ended
                                                           June 30,           June 30,          June 30,         June 30,
                                                             2003               2002              2003             2002
<S>                                                      <C>                <C>                <C>              <C>

Revenue:
   Energy revenues..................................     $  27,204          $  24,734          $  53,887        $ 148,884
   Capacity revenues................................        10,554             10,555             14,270           19,805
                                                            ------             ------             ------          -------
          Total revenue.............................        37,758             35,289             68,157          168,689

Operating expenses:
   Plant operating expenses.........................         7,836              7,428             15,196           14,311
   Royalty expense..................................         6,307              5,775             10,485            9,055
   Depreciation and amortization....................         7,551             10,544             15,221           20,968
                                                            ------             ------             ------          -------
          Total operating expenses..................        21,694             23,747             40,902           44,334

          Operating income..........................        16,064             11,542             27,255          124,355

Other (income)/expenses:
   Interest and other income........................          (340)            (1,474)              (760)          (3,072)
   Interest expense.................................         6,321              6,855             12,613           13,718
   Amortization of deferred financing costs.........           196                196                394              393
                                                            ------             ------             ------          -------
          Total other expenses......................         6,177              5,577             12,247           11,039
                                                            ------             ------             ------          -------

Income before cumulative effect of change in
   accounting principle.............................         9,887              5,965             15,008          113,316

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

           Net income...............................     $   9,887          $   5,965          $  10,527        $ 113,316
                                                            ======             ======             ======          =======
</TABLE>






See accompanying notes to the unaudited condensed combined financial statements.

                                       32

<PAGE>


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

                                                                      Six-Months           Six-Months
                                                                        Ended                Ended
                                                                       June 30,             June 30,
                                                                         2003                 2002
<S>                                                                <C>                    <C>

    Net cash provided by (used in) operating activities...         $    26,400            $   95,329
    Net cash provided by (used in) investing activities...             (12,388)               (5,623)
    Net cash provided by (used in) financing activities...             (11,081)              (87,865)
                                                                       --------              --------
    Net change in cash and cash equivalents...............         $     2,931            $    1,841
                                                                       ========              ========
    Supplemental cash flow disclosure:
       Cash paid for interest.............................         $    12,726            $   13,710
                                                                       ========              ========
</TABLE>



See accompanying notes to the unaudited condensed combined financial statements.

                                       33

<PAGE>


                                COSO PARTNERSHIPS
                    NOTES TO THE UNAUDITED CONDENSED COMBINED
                              FINANCIAL STATEMENTS


(1)  Basis of Presentation

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

(2)  Accounts Receivable and Revenue Recognition

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

(3)  Reclassifications

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

(4)  New Accounting Pronouncements

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

                                       34
<PAGE>

ITEM 6.  Exhibits and Reports on Form 8-K

(a)      Exhibits

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

(b)      Reports on Form 8-K

         None

                                       35


<PAGE>
                                  EXHIBIT 27.1

                                    Form S-X
                       Commercial and Industrial Companies


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

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

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

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


RESTATED

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

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

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

CURRENCY                                       CURRENCY OF FINANCIAL DATA:
Is the currency used other than US
Dollars? Use in conjunction with
EXCHANGE RATE tag.
                      Yes  X No
                   ---    ---
PERIOD TYPE                                       - MOS    X   6 - MOS
                                           --- ---        --- ---
                                              X  YEAR           YEAR
                                             ---           ---
                                            (for annual report filings)
                                                 OTHER          OTHER
                                            ----           ----
FISCAL YEAR END
(example: DEC-31-1997)                      Dec - 31 - 2002      DEC - 31 - 2003
                                            ---------------      ---------------
                                            mmm - dd - yyyy      mmm - dd - yyyy

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

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

EXCHANGE RATE                               EXCHANGE RATE:       EXCHANGE RATE:

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

<TABLE>
<CAPTION>
                                         PERIOD TYPE Year            PERIOD TYPE 6 MOS
                                                     ----                        -----
<S>                                                     <C>                       <C>
CASH                                                         0                           0
SECURITIES                                                   0                           0
RECEIVABLES                                            282,361                     271,174
ALLOWANCES                                                   0                           0
INVENTORY                                                    0                           0
CURRENT ASSETS                                           1,130                       1,021
PP&E                                                         0                           0
DEPRECIATION                                                 0                           0
TOTAL ASSETS                                           282,361                     271,174
CURRENT LIABILITIES                                      1,130                       1,021
BONDS                                                  281,231                     270,153
PREFERRED MANDATORY                                          0                           0
PREFERRED                                                    0                           0
COMMON                                                       0                           0
OTHER SE                                                     0                           0
TOTAL LIABILITY AND EQUITY                             282,361                     271,174
SALES                                                        0                           0
TOTAL REVENUES                                          26,931                      12,617
CGS                                                          0                           0
TOTAL COSTS                                                  0                           0
OTHER EXPENSES                                               0                           0
LOSS PROVISION                                               0                           0
INTEREST EXPENSES                                       26,931                      12,617
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   6 - MOS
                                          --- ---         --- ---
                                             X  YEAR           YEAR
                                            ---            ---
                                            (for annual report filings)
                                                OTHER          OTHER
                                            ----           ----
FISCAL YEAR END
(example: DEC-31-1997)                      Dec - 31 - 2002      DEC - 31 - 2003
                                            ---------------      ---------------
                                            mmm - dd - yyyy      mmm - dd - yyyy

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

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

EXCHANGE RATE                               EXCHANGE RATE:       EXCHANGE RATE:

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

<TABLE>
<CAPTION>
                                         PERIOD TYPE Year            PERIOD TYPE  6 MOS
                                                     ----                         -----
<S>                                                     <C>                        <C>
CASH                                                     4,215                       2,144
SECURITIES                                              28,692                      31,399
RECEIVABLES                                              8,621                      11,206
ALLOWANCES                                                   0                           0
INVENTORY                                                    0                           0
CURRENT ASSETS                                          13,904                      13,601
PP&E                                                   234,442                     236,799
DEPRECIATION                                            98,129                     102,944
TOTAL ASSETS                                           195,072                     194,429
CURRENT LIABILITIES                                      6,231                       3,764
BONDS                                                  110,955                     105,558
PREFERRED MANDATORY                                          0                           0
PREFERRED                                                    0                           0
COMMON                                                       0                           0
OTHER SE                                                     0                           0
TOTAL LIABILITY AND EQUITY                             195,072                     194,429
SALES                                                   92,065                      27,876
TOTAL REVENUES                                          93,639                      27,990
CGS                                                          0                           0
TOTAL COSTS                                                  0                           0
OTHER EXPENSES                                          33,376                      16,482
LOSS PROVISION                                               0                           0
INTEREST EXPENSES                                       11,151                       5,132
INCOME PRETAX                                                0                           0
INCOME TAX                                                   0                           0
INCOME CONTINUING                                            0                           0
DISCONTINUED                                                 0                           0
EXTRAORDINARY                                                0                           0
CHANGES                                                      0                       1,780
NET INCOME                                              49,112                       4,596
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   6 - MOS
                                         --- ---         --- ---
                                             X  YEAR           YEAR
                                            ---            ---
                                            (for annual report filings)
                                                OTHER          OTHER
                                            ----           ----
FISCAL YEAR END
(example: DEC-31-1997)                      Dec - 31 - 2002      DEC - 31 - 2003
                                            ---------------      ---------------
                                            mmm - dd - yyyy      mmm - dd - yyyy

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

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

EXCHANGE RATE                               EXCHANGE RATE:       EXCHANGE RATE:

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

<TABLE>
<CAPTION>
                                         PERIOD TYPE Year            PERIOD TYPE 6 MOS
                                                     ----                        -----
<S>                                                     <C>                         <C>
CASH                                                     1,423                       6,650
SECURITIES                                               6,646                       7,573
RECEIVABLES                                              7,102                       9,515
ALLOWANCES                                                   0                           0
INVENTORY                                                    0                           0
CURRENT ASSETS                                           9,895                      16,393
PP&E                                                   247,912                     250,039
DEPRECIATION                                           112,059                     116,255
TOTAL ASSETS                                           174,871                     179,425
CURRENT LIABILITIES                                     27,961                      28,124
BONDS                                                   89,875                      87,853
PREFERRED MANDATORY                                          0                           0
PREFERRED                                                    0                           0
COMMON                                                       0                           0
OTHER SE                                                     0                           0
TOTAL LIABILITY AND EQUITY                             174,871                     179,425
SALES                                                   81,252                      20,944
TOTAL REVENUES                                          82,707                      21,457
CGS                                                          0                           0
TOTAL COSTS                                                  0                           0
OTHER EXPENSES                                          28,526                      11,137
LOSS PROVISION                                               0                           0
INTEREST EXPENSES                                        8,822                       4,161
INCOME PRETAX                                                0                           0
INCOME TAX                                                   0                           0
INCOME CONTINUING                                            0                           0
DISCONTINUED                                                 0                           0
EXTRAORDINARY                                                0                           0
CHANGES                                                      0                         924
NET INCOME                                              45,359                       5,235
EPS BASIC                                                    0                           0
(Value may contain up to 3 decimal places)
EPS DILUTED                                                  0                           0
(Value may contain up to 3 decimal places)

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

<PAGE>
                                  EXHIBIT 27.4

                                    Form S-X
                       Commercial and Industrial Companies

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

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

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

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


RESTATED

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

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

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

CURRENCY                                       CURRENCY OF FINANCIAL DATA:
Is the currency used other than US
Dollars? Use in conjunction with
EXCHANGE RATE tag.
                      Yes  X No
                   ---    ---
PERIOD TYPE                                     - MOS      X   6 - MOS
                                         --- ---          --- ---
                                             X  YEAR           YEAR
                                            ---            ---
                                            (for annual report filings)
                                                OTHER          OTHER
                                            ----           ----
FISCAL YEAR END
(example: DEC-31-1997)                      Dec - 31 - 2002      DEC - 31 - 2003
                                            ---------------      ---------------
                                            mmm - dd - yyyy      mmm - dd - yyyy

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

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

EXCHANGE RATE                               EXCHANGE RATE:       EXCHANGE RATE:

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

<TABLE>
<CAPTION>
                                         PERIOD TYPE Year            PERIOD TYPE 6 MOS
                                                     ----                        -----
<S>                                                     <C>                         <C>
CASH                                                       824                         599
SECURITIES                                              10,855                      10,545
RECEIVABLES                                             13,136                      15,586
ALLOWANCES                                                   0                           0
INVENTORY                                                    0                           0
CURRENT ASSETS                                          15,071                      16,414
PP&E                                                   210,548                     215,128
DEPRECIATION                                            94,356                      98,381
TOTAL ASSETS                                           168,834                     168,823
CURRENT LIABILITIES                                      2,706                       3,424
BONDS                                                   80,401                      76,739
PREFERRED MANDATORY                                          0                           0
PREFERRED                                                    0                           0
COMMON                                                       0                           0
OTHER SE                                                     0                           0
TOTAL LIABILITY AND EQUITY                             168,834                     168,823
SALES                                                   79,592                      19,337
TOTAL REVENUES                                          80,486                      19,470
CGS                                                          0                           0
TOTAL COSTS                                                  0                           0
OTHER EXPENSES                                          29,428                      13,283
LOSS PROVISION                                               0                           0
INTEREST EXPENSES                                        7,755                       3,714
INCOME PRETAX                                                0                           0
INCOME TAX                                                   0                           0
INCOME CONTINUING                                            0                           0
DISCONTINUED                                                 0                           0
EXTRAORDINARY                                                0                           0
CHANGES                                                      0                       1,777
NET INCOME                                              43,303                         696
EPS BASIC                                                    0                           0
(Value may contain up to 3 decimal places)
EPS DILUTED                                                  0                           0
(Value may contain up to 3 decimal places)

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

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

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

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

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

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

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

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

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

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

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

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

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

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


Date:  August 14, 2003                  Caithness Coso Funding Corp.
                                        a Delaware Corporation

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

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

I, Christopher T. McCallion, certify that:

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

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

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

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

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

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

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

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

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

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

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


Date: August 14, 2003                   Caithness Coso Funding Corp.
                                        a Delaware Corporation

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

<PAGE>

                                  Exhibit 99.1

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


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

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

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



Date:  August 14, 2003                  Caithness Coso Funding Corp.
                                        a Delaware Corporation

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


<PAGE>

                                  Exhibit 99.2

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


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

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

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



Date: August 14, 2003                   Caithness Coso Funding Corp.
                                        a Delaware Corporation

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


                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                                       CAITHNESS COSO FUNDING CORP.,
                                       a Delaware corporation

Date:  August 14, 2003                  By:  /S/ CHRISTOPHER T. MCCALLION
                                             ----------------------------
                                             Christopher T. McCallion
                                             Executive Vice President &
                                             Chief Financial Officer
                                             (Principal Financial and
                                             Accounting Officer)


                                       COSO FINANCE PARTNERS
                                       a California general Partnership

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

Date:  August 14, 2003                  By:  /S/ CHRISTOPHER T. MCCALLION
                                             ----------------------------
                                             Christopher T. McCallion
                                             Executive Vice President &
                                             Chief Financial Officer
                                             (Principal Financial and
                                             Accounting Officer)


                                       COSO ENERGY DEVELOPERS
                                       a California general Partnership

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

Date:  August 14, 2003                 By:  /S/ CHRISTOPHER T. MCCALLION
                                            ----------------------------
                                            Christopher T. McCallion
                                            Executive Vice President &
                                            Chief Financial Officer
                                            (Principal Financial and
                                            Accounting Officer)


                                       COSO POWER DEVELOPERS
                                       a California general Partnership

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

Date:  August 14, 2003                 By:  /S/ CHRISTOPHER T. MCCALLION
                                            ----------------------------
                                            Christopher T. McCallion
                                            Executive Vice President &
                                            Chief Financial Officer
                                            (Principal Financial and
                                            Accounting Officer)