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    March 31, 2004
                                              --------------

                                       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 May 17, 2004
          -------------------------------------------------------------

<PAGE>



                          CAITHNESS COSO FUNDING CORP.
                                    Form 10-Q
                      For the Quarter Ended March 31, 2004


PART I.    FINANCIAL INFORMATION                                        Page No.

ITEM 1.    Financial Statements


   Caithness Coso Funding Corp.
   Unaudited balance sheets at March 31, 2004 and December 31, 2003            4
   Unaudited statements of operations for the three-months
     ended March 31, 2004 and the three-months ended March 31, 2003            5
   Unaudited condensed statements of cash flows for the three-months
     ended March 31, 2004 and the three-months ended March 31, 2003            6
   Notes to the unaudited financial statements                                 7

   Coso Finance Partners and Subsidiary
   Unaudited consolidated balance sheets at March 31, 2004 and
     December 31, 2003                                                         8
   Unaudited consolidated statements of operations for the three-months
     ended March 31, 2004 and the three-months ended March 31, 2003            9
   Unaudited consolidated condensed statements of cash flows for the
     three-months ended March 31, 2004 and the three-months
     ended March 31, 2003                                                     10
   Notes to the unaudited consolidated financial statements                   11

   Coso Energy Developers
   Unaudited balance sheets at March 31, 2003 and December 31, 2002           13
   Unaudited statements of operations for the three-months
     ended March 31, 2004 and the three-months ended March 31, 2003           14
   Unaudited condensed statements of cash flows for the three-months
     ended March 31, 2004 and the three-months ended March 31, 2003           15
   Notes to the unaudited financial statements                                16

   Coso Power Developers and Subsidiary
   Unaudited consolidated balance sheets at March 31, 2004 and
     December 31, 2003                                                        17
   Unaudited consolidated statements of operations for the three-months
     ended March 31, 2004 and the three-months ended March 31, 2003           18
   Unaudited consolidated condensed statements of cash flows for the
     three-months ended March 31, 2004 and the three-months
     ended March 31, 2003                                                     19
   Notes to the unaudited consolidated financial statements                   20

                                        2

ITEM 2.     Management's Discussion and Analysis of Financial Condition and
             Results of Operations                                            21

ITEM 3.     Control and Procedures                                            27

PART II.    OTHER INFORMATION

ITEM 1.     Legal Proceedings                                                 28
ITEM 2.     Change in Securities and Use of Proceeds                          28
ITEM 3.     Defaults upon Senior Securities                                   28
ITEM 4.     Submission of Matters to a Vote of Security Holders               28
ITEM 5.     Other Information                                                 28
   Supplemental consolidated and combined financial information for the
   Coso Partnerships and Subsidiaries
   Unaudited consolidated combined balance sheets at March 31, 2004
     and December 31, 2003                                                    29
   Unaudited consolidated combined statements of operations for the
     three-months ended March 31, 2004 and the three-months ended
     March 31, 2003                                                           30
   Unaudited consolidated and condensed combined statements of
     cash flows for the three-months ended March 31, 2004
     and the three-months ended March 31, 2003                                31
   Notes to the consolidated unaudited combined financial statements          32

ITEM 6.    Exhibits and Reports on Form 8-K                                   34


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


                                                                                         March 31,        December 31,
                                                                                           2004               2003
<S>                                                                                     <C>               <C>
                            Assets:
Current Assets:
  Accrued interest receivable...................................................        $   6,683         $    1,008
   Current portion of project loan from Coso Finance Partners...................           10,694             10,694
   Current portion of project loan from Coso Energy Developers..................            9,920              9,920
   Current portion of project loan from Coso Power Developers...................           10,718             10,718
                                                                                           ------             ------
                                     Total current assets                                  38,015             32,340



 Project loan from Coso Finance Partners........................................           86,853             86,853
 Project loan from Coso Energy Developers.......................................           74,901             74,901
 Project loan from Coso Power Developers........................................           60,528             60,528
                                                                                          -------            -------

                                     Total assets                                       $ 260,297          $ 254,622
                                                                                          =======            =======



                            Liabilities and Stockholders' Equity:

Current Liabilities:
   Senior secured notes:
    Accrued interest payable....................................................        $   6,683          $   1,008
    Current portion on project loans............................................           31,332             31,332
                                                                                           ------             ------
                                     Total current liabilities                             38,015             32,340

9.05% notes due December 15, 2009...............................................          222,282            222,282

Stockholders' equity............................................................                -                  -
                                                                                          -------            -------

                                     Total liabilities & stockholders' equity           $ 260,297          $ 254,622
                                                                                          =======            =======






                          See accompanying notes to the unaudited financial statements

                                                    4
</TABLE>
<PAGE>

                          CAITHNESS COSO FUNDING CORP.
                       UNAUDITED STATEMENTS OF OPERATIONS
                             (Dollars in thousands)


                                              Three-Months          Three-Months
                                                  Ended                 Ended
                                                 March 31,             March 31,
                                                   2004                  2003

Interest income........................        $   5,675             $   6,294
Interest expense.......................           (5,675)               (6,294)
                                                   -----                 -----

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







          See accompanying notes to the unaudited financial statements

                                       5

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


                                                                                  Three-Months        Three-Months
                                                                                      Ended               Ended
                                                                                    March 31,           March 31,
                                                                                      2004                2003
<S>                                                                                <C>                 <C>

Cash flows from investing activities - repayment of project loans......            $   5,675           $   6,294
Cash flows from financing activities - repayment of 9.05% notes........               (5,675)             (6,294)
                                                                                       -----               -----

Net changes in cash....................................................            $       -           $       -
                                                                                       =====               =====








                       See accompanying notes to the unaudited condensed financial statements

                                                      6
</TABLE>
<PAGE>


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


(1)      Organization and Operations

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

On May 28, 1999,  Funding  Corp.  sold  $413,000 of Notes.  Pursuant to separate
credit agreements  between Funding Corp. and each Partnership,  the net proceeds
from the offering Notes were loaned to the Partnerships. Payment of the Notes is
provided for by payments made by the Partnerships under their respective project
loans.  Funding Corp. has no material  assets other than the project loans,  and
does not conduct any  operations  apart from having  issued the Notes and making
the project loans to the Partnerships.

(2)      Basis of Presentation

The accompanying  unaudited condensed financial statements have been prepared in
accordance with accounting principles generally accepted in the United States of
America for interim financial information.  Accordingly, certain information and
footnote  disclosures  normally  included in  financial  statements  prepared in
accordance with accounting principles generally accepted in the United States of
America  have been  condensed  or omitted  pursuant  to such  rules.  Management
believes that the disclosures are adequate to make the information presented not
misleading when read in conjunction with the financial  statements and the notes
thereto in the audited  financial  statements  for the year ended  December  31,
2003.

The preparation of unaudited financial  statements in accordance with accounting
principles  generally  accepted in the United States  requires  Funding Corp. to
make certain  estimates and assumptions for the reporting periods covered by the
financial  statements.  These  estimates  and  assumptions  affect the  reported
amounts of assets, liabilities, income and expenses during the reporting period.
Actual  results could differ from these  estimates.  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
                                                 AND SUBSIDIARY
                                      UNAUDITED CONSOLIDATED BALANCE SHEETS
                                              (Dollars in thousands)
<TABLE>
<CAPTION>

                                                                                     March 31,          December 31,
                                                                                       2004                2003
<S>                                                                               <C>                  <C>
                              Assets:
 Current Assets:
    Cash and cash equivalents...............................................       $    8,477          $    1,454
    Restricted cash and cash equivalents....................................           10,541              11,408
    Accounts receivable, net................................................            7,135               6,925
    Prepaid expenses & other assets.........................................              484                 872
    Inventory...............................................................            5,324               5,270
    Amounts due from related parties........................................            1,619               1,525
                                                                                        -----               -----
                                         Total current assets                          33,580              27,454


 Restricted cash and cash equivalents........................................          13,746              13,249
 Property, plant & equipment, net............................................         133,706             135,871
 Purchase power contract, net................................................           8,511               8,798
 Deferred financing costs, net...............................................           1,814               1,893
                                                                                        -----               -----

                                         Total assets                              $  191,357          $  187,265
                                                                                      =======             =======


                              Liabilities and Partners' Capital:

 Current Liabilities:
    Accounts payable and accrued liabilities.................................           2,514               4,503
    Amounts due to related parties...........................................           2,878                 474
    Current portion of project loan..........................................          10,694              10,694
                                                                                       ------              ------
                                         Total current liabilities                     16,086              15,671

 Other liabilities...........................................................          16,157              15,603
 Project loan................................................................          86,853              86,853
                                                                                       ------              ------
                                         Total liabilities                            119,096             118,127

 Minority interest............................................................          2,455               2,462
 Partners' capital............................................................         69,806              66,676
                                                                                       ------              ------

                                         Total liabilities & partners' capital     $  191,357          $  187,265
                                                                                      =======             =======







                               See accompanying notes to the unaudited consolidated financial statements

                                                                  8
</TABLE>
<PAGE>
<TABLE>
<CAPTION>


                                        COSO FINANCE PARTNERS
                                            AND SUBSIDIARY
                            UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
                                        (Dollars in thousands)


                                                                   Three-Months            Three-Months
                                                                       Ended                   Ended
                                                                      March 31,               March 31,
                                                                        2004                    2003
   <S>                                                             <C>                     <C>
   Revenue:
      Energy revenues.....................................         $   11,856              $   11,298
      Capacity revenues...................................              1,255                   1,255
                                                                       ------                  ------
             Total revenue................................             13,111                  12,553

   Operating expenses:
      Plant operating expenses............................              2,679                   2,267
      Royalty expense.....................................              2,226                   2,681
      Depreciation and amortization.......................              2,848                   2,566
                                                                        -----                   -----
             Total operating expenses.....................              7,753                   7,514

             Operating income.............................              5,358                   5,039

   Other (income)/expenses:
       Interest and other income..........................                (91)                   (114)
       Interest expense...................................              2,184                   2,483
       Noncash interest expense...........................                135                     130
                                                                        -----                   -----
             Total other expenses.........................              2,228                   2,499
                                                                        -----                   -----
   Income before cumulative effect of
     change in accounting principle.......................              3,130                   2,540

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

             Net income...................................         $    3,130               $     760
                                                                        =====                   =====






                See accompanying notes to the unaudited consolidated financial statements

                                                  9
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                        COSO FINANCE PARTNERS
                                           AND SUBSIDIARY
                                UNAUDITED CONSOLIDATED AND CONDENSED
                                     STATEMENTS OF CASH FLOWS
                                      (Dollars in thousands)


                                                                  Three-Months            Three-Months
                                                                      Ended                   Ended
                                                                    March 31,               March 31,
                                                                      2004                    2003


 <S>                                                               <C>                     <C>
 Net cash provided by (used in) operating activities.....          $   7,056               $   4,664
 Net cash provided by (used in) investing activities.....                (26)                 (2,112)
 Net cash provided by (used in) financing activities.....                 (7)                     24
                                                                       -----                   -----

 Net change in cash and cash equivalents.................          $   7,023               $   2,576
                                                                       =====                   =====






        See accompanying notes to the unaudited consolidated and condensed financial statements

                                                 10
</TABLE>
<PAGE>


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


(1)      Organization and Operation

Coso Finance Partners (CFP), a general partnership,  is engaged in the operation
of a 80 MW power generation facility located at the China Lake Naval Air Weapons
Station,  China Lake California.  CFP sells all electricity produced to Southern
California  Edison (Edison) under a 24-year power purchase  contract expiring in
2011.

(2)      Basis of Presentation

The accompanying  unaudited condensed financial statements have been prepared in
accordance with accounting principles generally accepted in the United States of
America for interim financial information.  Accordingly, certain information and
footnote  disclosures  normally  included in  financial  statements  prepared in
accordance with accounting principles generally accepted in the United States of
America  have been  condensed  or omitted  pursuant  to such  rules.  Management
believes that the disclosures are adequate to make the information presented not
misleading when read in conjunction with the financial  statements and the notes
thereto in the audited financial statements for the year ended December 31,
2003.

The preparation of unaudited financial  statements in accordance with accounting
principles  generally accepted in the United States requires CFP to make certain
estimates and  assumptions  for the reporting  periods  covered by the financial
statements.  These  estimates  and  assumptions  affect the reported  amounts of
assets,  liabilities,  revenues and expenses during the reporting period. Actual
results  could differ from these  estimates.  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.

The data for the balance sheets presented herein for March 31, 2004 and December
31, 2003 were derived from CFP's financial statements for the interim period and
fiscal  year then  ended and  includes  the  effect of  consolidating  New CLPSI
Company,  LLC  ("CLPSI"),  but does not  include  all  disclosures  required  by
accounting principles generally accepted in the United States.

(3)      New Accounting Pronouncements

The consolidated financial statements of CFP include the accounts of CPLSI, as a
result  of  the  adoption  of  Financial  Accounting  Standards  Board  ("FASB")
Interpretation No. 46. ("FIN 46") (Consolidation of Variable Interest Entities),
an  interpretation  of  Accounting  Research  Bulletin  No. 51. FIN 46  required
certain variable interest entities to be consolidated by the primary beneficiary
of the entity even though the equity  investors do not have the  characteristics
of a controlling  financial  interest,  or do not have sufficient equity at risk
for the  entity  to  finance  its  activities  without  additional  subordinated
financial  support from other parties.  In December 2003, the FASB issued FIN 46
(R),  which  clarified and replaced FIN 46 that  required all variable  interest
entities,  regardless of when they were created to be evaluated under Fin 46 (R)
no later than the period  ending March 15,  2004.  An entity shall be subject to
consolidation  according to the provisions of this Interpretation if, by design,
the following conditions exist. As a group, the holders of the equity investment
at risk lack any one of the  following  three  characteristics  of a controlling
financial  interest:  (1) the direct or indirect ability to make decisions about
an  entity's  activities  through  voting  rights  or  similar  rights;  (2) the
obligation to absorb the expected losses of the entity if they occur; or (3) the
right to receive the expected  residual returns of the entity if they occur. CFP
believes  that  CLPSI,  the  entity  that  holds the  inventory  for Coso  Power
Developers,  Coso Energy  Developer  and CFP is a variable  interest  entity and
under FIN 46 (R) should be consolidated. The inventory, related physical assets,
and  payables  will be recorded as CFP's assets and  liabilities.  The impact to
CFP's future statement of operations will be increased  depreciation,  partially
offset by other income.

                                       11

The  consolidated  financial  statements  related  to prior  periods  have  been
restated to consolidate the accounts of CLPSI as a direct result of the adoption
of FIN 46 (R). There was no cumulative  effect recorded upon the adoption of the
Interpretation.

(4)      Accounts Receivable and Revenue Recognition

Accounts receivable primarily consist of receivables from Edison for electricity
delivered  and sold under a power  purchase  contract.  Operating  revenues  are
recognized  as income  during the period in which  electricity  is  delivered to
Edison.

(5)      Reclassifications

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

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


                                                                                March 31,          December 31,
                                                                                  2004                2003
<S>                                                                             <C>                 <C>
                              Assets:

 Current Assets:
    Cash and cash equivalents...........................................       $    7,378          $      603
    Restricted cash and cash equivalents................................            9,549              10,013
    Accounts receivable, net............................................            6,318               6,830
    Prepaid expenses and other assets...................................              597               1,094
    Amounts due from related parties....................................              447                 442
                                                                                   ------              ------
                                       Total current assets                        24,289              18,982


 Restricted cash........................................................              142                 142
 Investment in Coso Transmission Line Partners..........................            2,514               2,542
 Advances to New CLPSI Company, LLC.....................................              538                 548
 Property, plant and equipment, net.....................................          128,621             130,519
 Power purchase agreement, net..........................................           16,025              16,293
 Deferred financing costs, net..........................................            1,466               1,530
                                                                                  -------             -------

                                       Total assets                            $  173,595          $  170,556
                                                                                  =======             =======


                              Liabilities and Partners' Capital:

 Current Liabilities:
    Accounts payable and accrued liabilities............................       $    1,272          $    2,114
    Amounts due to related parties......................................            3,671               1,473
    Current portion of project loan.....................................            9,920               9,920
                                                                                   ------              ------
                                       Total current liabilities                   14,863              13,507

  Other liabilities and related parties.................................           27,327              27,331
  Project loan..........................................................           74,901              74,901
                                                                                  -------             -------
                                       Total liabilities                          117,091             115,739

 Partners' capital......................................................           56,504              54,817
                                                                                  -------             -------

                                       Total liabilities & partners' capital   $  173,595          $  170,556
                                                                                  =======             =======






                            See accompanying notes to the unaudited financial statements

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


                                                                 Three-Months            Three-Months
                                                                     Ended                   Ended
                                                                   March 31,               March 31,
                                                                     2004                    2003
<S>                                                               <C>                    <C>
Revenue:
   Energy revenues....................................            $   7,872               $   8,107
   Capacity revenues..................................                1,227                   1,227
                                                                      -----                   -----
          Total revenue...............................                9,099                   9,334

Operating expenses:
   Plant operating expenses...........................                3,406                   2,785
   Royalty expense....................................                  (33)                     25
   Depreciation and amortization......................                2,357                   2,312
                                                                      -----                   -----
          Total operating expenses....................                5,730                   5,122

          Operating income............................                3,369                   4,212

Other (income)/expenses:
   Interest and other income..........................                 (311)                   (329)
   Interest expense...................................                1,898                   2,011
   Noncash interest expense...........................                   95                      92
                                                                      -----                   -----
          Total other expenses........................                1,682                   1,774
                                                                      -----                   -----

Income before cumulative effect of change in
    accounting principle..............................                1,687                   2,438

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

          Net income..................................            $   1,687               $   1,514
                                                                      =====                   =====






                 See accompanying notes to the unaudited financial statements

                                             14
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                    COSO ENERGY DEVELOPERS
                         UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
                                    (Dollars in thousands)


                                                               Three-Months              Three-Months
                                                                   Ended                     Ended
                                                                 March 31,                 March 31,
                                                                   2004                      2003

 <S>                                                            <C>                       <C>
 Net cash provided by (used in) operating activities.....       $   6,474                 $   8,371
 Net cash provided by (used in) investing activities.....             301                    (1,526)
 Net cash provided by (used in) financing activities.....              --                        --
                                                                    -----                     -----

 Net change in cash and cash equivalents.................       $   6,775                 $   6,845
                                                                    =====                     =====






                 See accompanying notes to the unaudited condensed financial statements

                                               15
</TABLE>
<PAGE>


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


(1)      Organization and Operation

Coso Energy Developers (CED), a general partnership, is engaged in the operation
of a 80 MW power generation facility located at the Coso Hot Springs, China Lake
California.  CED sells all electricity  produced to Southern  California  Edison
(Edison) under a 30-year power purchase contract expiring in 2019.

(2)      Basis of Presentation

The accompanying  unaudited condensed financial statements have been prepared in
accordance with accounting principles generally accepted in the United States of
America for interim financial information.  Accordingly, certain information and
footnote  disclosures  normally  included in  financial  statements  prepared in
accordance with accounting principles generally accepted in the United States of
America  have been  condensed  or omitted  pursuant  to such  rules.  Management
believes that the disclosures are adequate to make the information presented not
misleading when read in conjunction with the financial  statements and the notes
thereto in the audited  financial  statements  for the year ended  December  31,
2003.

The preparation of unaudited financial  statements in accordance with accounting
principles  generally accepted in the United States requires CED to make certain
estimates and  assumptions  for the reporting  periods  covered by the financial
statements.  These  estimates  and  assumptions  affect the reported  amounts of
assets,  liabilities,  revenues and expenses during the reporting period. Actual
results  could differ from these  estimates.  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

Accounts receivable primarily consist of receivables from Edison for electricity
delivered  and sold under a power  purchase  contract.  Operating  revenues  are
recognized  as income  during the period in which  electricity  is  delivered to
Edison.

(4)      Reclassifications

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

                                       16
<PAGE>
<TABLE>
<CAPTION>
                                        COSO POWER DEVELOPERS
                                           AND SUBSIDIARY
                                UNAUDITED CONSOLIDATED BALANCE SHEETS
                                       (Dollars in thousands)


                                                                                    March 31,          December 31,
                                                                                      2004                2003

 <S>                                                                               <C>                <C>
                              Assets:
 Current Assets:
    Cash and cash equivalents..............................................        $    6,587         $       78
    Restricted cash and cash equivalents...................................             7,844              8,146
    Accounts receivable, net...............................................             7,439              7,985
    Prepaid expenses and other assets......................................               456                830
    Amounts due from related parties.......................................             6,402              6,412
                                                                                       ------             ------
                                       Total current assets                            28,728             23,451


 Restricted cash...........................................................               135                135
 Advances to New CLPSI Company, LLC........................................             1,917              1,914
 Property, plant and equipment, net........................................           118,731            120,509
 Power purchase agreement, net.............................................            16,533             17,232
 Deferred financing costs, net.............................................             1,248              1,302
                                                                                      -------            -------

                                       Total assets                                $  167,292         $  164,543
                                                                                      =======            =======



                              Liabilities and Partners' Capital:

 Current Liabilities:
    Accounts payable and accrued liabilities...............................        $    1,534         $    1,891
    Amounts due to related parties.........................................             3,140              1,191
    Current portion of project loan........................................            10,718             10,718
                                                                                       ------             ------
                                       Total current liabilities                       15,392             13,800


 Other liabilities.........................................................             2,647              2,589
 Project loan..............................................................            60,528             60,528
                                                                                       ------             ------
                                       Total liabilities                               78,567             76,917


 Minority interest.........................................................             2,514              2,542
 Partners' capital.........................................................            86,211             85,084
                                                                                       ------             ------

                                       Total liabilities & partners' capital       $  167,292         $  164,543
                                                                                      =======            =======







                     See accompanying notes to the unaudited consolidated financial statements

                                                       17

</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                    COSO POWER DEVELOPERS
                                       AND SUBSIDARY
                       UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Dollars in thousands)


                                                                  Three-Months          Three-Months
                                                                      Ended                 Ended
                                                                    March 31,             March 31,
                                                                      2004                  2003
<S>                                                                <C>                  <C>
Revenue:
   Energy revenues......................................           $   8,422             $   7,278
   Capacity revenues....................................               1,234                 1,234
                                                                       -----                 -----
          Total revenue.................................               9,656                 8,512

Operating expenses:
   Plant operating expenses.............................               2,745                 2,374
   Royalty expense......................................               1,644                 1,472
   Depreciation and amortization........................               2,562                 2,776
                                                                       -----                 -----
          Total operating expenses......................               6,951                 6,622

          Operating income..............................               2,705                 1,890

Other (income) / expenses:
   Interest and other income............................                (128)                 (159)
   Interest expense.....................................               1,594                 1,799
   Noncash interest expense.............................                 112                   107
                                                                       -----                 -----
          Total other expenses..........................               1,578                 1,747
                                                                       -----                 -----

 Income before cumulative effect of change in
   accounting principle.................................               1,127                   143

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

           Net income (loss)............................           $   1,127             $  (1,634)
                                                                       =====                 =====








                See accompanying notes to the unaudited consolidated financial statements

                                                  18
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                    COSO POWER DEVELOPERS
                                       AND SUBSIDIARY
                            UNAUDITED CONSOLIDATED AND CONDENSED
                                  STATEMENTS OF CASH FLOWS
                                   (Dollars in thousands)



                                                                      Three-Months          Three-Months
                                                                          Ended                 Ended
                                                                        March 31,             March 31,
                                                                          2004                  2003

 <S>                                                                  <C>                   <C>
 Net cash provided by (used in) operating activities......            $    6,320            $    6,210
 Net cash provided by (used in) investing activities......                   217                (1,089)
 Net cash provided by (used in) financing activities......                   (28)                  (28)
                                                                           -----                 -----

 Net change in cash and cash equivalents..................            $    6,509            $    5,093
                                                                           =====                 =====










      See accompanying notes to the unaudited consolidated and condensed financial statements

                                               19
</TABLE>
<PAGE>


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


(1)      Organization and Operation

Coso Power Developers (CPD), a general partnership,  is engaged in the operation
of a 80 MW power generation facility located at the Coso Hot Springs, China Lake
California.  CPD sells all electricity  produced to Southern  California  Edison
(Edison) under a 20-year power purchase contract expiring in 2010.

(2)      Basis of Presentation

The accompanying  unaudited condensed financial statements have been prepared in
accordance with accounting principles generally accepted in the United States of
America for interim financial information.  Accordingly, certain information and
footnote  disclosures  normally  included in  financial  statements  prepared in
accordance with accounting principles generally accepted in the United States of
America  have been  condensed  or omitted  pursuant  to such  rules.  Management
believes that the disclosures are adequate to make the information presented not
misleading when read in conjunction with the financial  statements and the notes
thereto in the audited  financial  statements  for the year ended  December  31,
2003.

The preparation of unaudited financial  statements in accordance with accounting
principles  generally accepted in the United States requires CPD to make certain
estimates and  assumptions  for the reporting  periods  covered by the financial
statements.  These  estimates  and  assumptions  affect the reported  amounts of
assets,  liabilities,  revenues and expenses during the reporting period. Actual
results  could differ from these  estimates.  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.

The data for the balance sheets presented herein for March 31, 2004 and December
31, 2003 were derived from CPD's financial statements for the interim period and
fiscal  year  then  ended  and  includes  the  effect  of   consolidating   Coso
Transmission Line Partners ("CTLP"), but does not include all disclosures
required by accounting principles generally accepted in the United States.

(3)      New Accounting Pronouncements

The consolidated  financial statements of CPD include the accounts of CTLP, as a
result  of  the  adoption  of  Financial  Accounting  Standards  Board  ("FASB")
Interpretation No. 46. ("FIN 46") (Consolidation of Variable Interest Entities),
an  interpretation  of  Accounting  Research  Bulletin  No. 51. FIN 46  required
certain variable interest entities to be consolidated by the primary beneficiary
of the entity even though the equity  investors do not have the  characteristics
of a controlling  financial  interest,  or do not have sufficient equity at risk
for the  entity  to  finance  its  activities  without  additional  subordinated
financial  support from other parties.  In December 2003, the FASB issued FIN 46
(R),  which  clarified and replaced FIN 46 that  required all variable  interest
entities,  regardless of when they were created to be evaluated under Fin 46 (R)
no later than the period  ending March 15,  2004.  An entity shall be subject to
consolidation  according to the provisions of this Interpretation if, by design,
the following conditions exist. As a group, the holders of the equity investment
at risk lack any one of the  following  three  characteristics  of a controlling
financial  interest:  (1) the direct or indirect ability to make decisions about
an  entity's  activities  through  voting  rights  or  similar  rights;  (2) the
obligation to absorb the expected losses of the entity if they occur; or (3) the
right to receive the expected  residual returns of the entity if they occur. CPD
believes that CTLP, the entity that holds additional  transmission equipment for
Coso Energy  Developers and CPD is a variable  interest  entity and under FIN 46
(R)  should be  consolidated.  The  additional  transmission  equipment  will be
recorded as CPD's  assets.  The impact to CPD's future  statement of  operations
will be increased depreciation, partially offset by other income.

                                       20

The  consolidated  financial  statements  related  to prior  periods  have  been
restated to consolidate  the accounts of CTLP as a direct result of the adoption
of FIN 46 (R). There was no cumulative  effect recorded upon the adoption of the
Interpretation.

(4)      Accounts Receivable and Revenue Recognition

Accounts receivable primarily consist of receivables from Edison for electricity
delivered  and sold under a power  purchase  contract.  Operating  revenues  are
recognized  as income  during the period in which  electricity  is  delivered to
Edison.

(5)      Reclassifications

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


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

     Except for financial information contained herein, the matters discussed in
this quarterly report may be considered  forward-looking  statements  within the
meaning of Section 27A of the  Securities  Act of 1933, as amended,  and Section
21E of the Securities Exchange Act of 1934, as amended,  and subject to the safe
harbor created by the Securities  Litigation Reform Act of 1995. Such statements
include  declarations  regarding the intent,  belief or current  expectations of
Caithness  Coso Funding  Corp.  ("Funding  Corp."),  Coso  Finance  Partners and
Subsidiary  ("the  Navy  I  Partnership"),  Coso  Energy  Developers  ("the  BLM
Partnership"),   and  Coso  Power   Developers  and  Subsidiary  ("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 future operating results to differ materially
from those  anticipated  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) risks related to the operation
of power plants (iv) the impact of avoided cost pricing along with other pricing
variables,  (v) general  operating risks,  including  resource  availability and
regulatory oversight,  (vi) changes in government regulation,  (vii) the effects
of competition  and (viii) the alleged  manipulation  of the  California  energy
market.

                                       21

General

     Each  Coso  Partnership  owns  an  80MW  geothermal  power  plant,  and its
respective  transmission  lines,  wells,  gathering  systems  and other  related
facilities.  The Coso  Partnerships  are located  near one another at the United
States  Naval  Air  Weapons  Center  at  China  Lake,  California.  The  Navy  I
Partnership owns Navy I and its related facilities. The BLM Partnership owns BLM
and its related facilities. The Navy II Partnership owns Navy II and its related
facilities.

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

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

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

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

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

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

     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. This Agreement was challenged in
the federal courts. After the California State Supreme Court found that no state
laws were  violated,  the United  States Court of Appeals for the Ninth  Circuit
(Ninth  Circuit)  affirmed  the  initial  judgment.  As a  result,  of the Ninth
Circuit's decision, the Agreements remain in full force and effect.

     After the five year period  expires in April 2007,  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.

     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.

                                       22

     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.  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 which was 15% of revenue received by the Navy I
Partnership  through  2003  and  increased  to 20% for  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  $111.0 million.  The BLM Partnerships
geothermal  lease  initially  had a  term  of  ten  years  ending  in  1998  and
subsequently  has an automatic  extension  until  October 31,  2035,  so long as
geothermal  steam is  commercially  produced  resulting  in 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 2010. The Coso Partnerships  also pay other royalties,  at
various rates which in the aggregate are not material.

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

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

     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.

                                       23

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

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


Capacity Utilization

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

     The following  data includes the operating  capacity  factor,  capacity and
electricity  production  (in kWh) for each  Coso  Partnership  on a  stand-alone
basis:


                                                      Three-Months Ended
                                                           March 31

                                                   2004                2003
                                                   ----                ----
Navy I Partnership (stand alone)
  Operating capacity factor                       104.3%              100.5%
  Capacity (MW) (average)                          83.40               80.42
  kWh produced (000s)                             180,150             173,706

BLM Partnership (stand alone)
  Operating capacity factor                        89.4%               88.6%
  Capacity (MW) (average)                          71.49               70.92
  kWh produced (000s)                             154,410             153,177

Navy II Partnership (stand alone)
  Operating capacity factor                       109.7%               98.3%
  Capacity (MW) (average)                          87.77               78.61
  kWh produced (000s)                             189,580             169,795

     Total  energy  production  for  the  Coso  Partnerships  increased  for the
three-months ended March 31, 2004 as compared to the same period in 2003, due to
the  success  of  the  effort  to  increase   production  overall  through  well
maintenance  and capital  improvements,  including the  enhancement  of existing
production  wells and  additional  steam-field  piping  modifications.  The Coso
Partnerships  expect to further enhance the steam  utilization and efficiency of
the projects through a turbine  enhancement  program and additional  steam-field
piping modifications.  With respect to the reservoir,  an injection augmentation
program,  aimed at improving reservoir pressure and minimizing resource decline,
is currently in the engineering  design phase.  The funds necessary to implement
the capital  improvement  program are available from reserves  established under
the Notes and from excess cash flow generated after debt service.

                                       24


Results of Operations for the three-months ended March 31, 2004 and 2003

     The following  discusses the results of operations of the Coso Partnerships
for the three-months ended March 31, 2004 and 2003 (dollar amounts in tables are
in thousands, except per kWh data):


Revenue

                                    Three-Months                Three-Months
                                        Ended                       Ended
                                   March 31, 2004              March 31, 2003


                                   $      Cents/kWh           $      Cents/kWh
Total Operating Revenues           -      ---------           -      ---------
including steam transfers
  Navy I Partnership             13,111       7.3           12,553       7.2
  BLM Partnership                 9,099       5.9            9,334       6.1
  Navy II Partnership             9,656       5.1            8,512       5.0


     The Coso Partnerships sell all electricity  generated to Edison under their
respective  power  purchase  agreement.  Total  operating  revenues  consist  of
capacity payments, capacity bonus payments, and energy payments, including steam
transfers discussed above.


     Total operating revenues for the Navy I and Navy II Partnerships  increased
for the three-months ended March 31, 2004 as compared to the same period in 2003
primarily  due  to  the  increase  in  production,   discussed  above.  The  BLM
Partnership's  increase  in  energy  revenues  resulting  from the  increase  in
production, was offset by their increase in steam transfers.


Plant Operating Expense
                                    Three-Months                Three-Months
                                        Ended                       Ended
                                   March 31, 2004              March 31, 2003


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

  Navy I Partnership              2,679       1.5            2,286       1.3
  BLM Partnership                 3,406       2.2            2,785       1.8
  Navy II Partnership             2,745       1.4            2,374       1.3

     Plant operating  expense consists of labor and related  expenses,  supplies
and  maintenance,   property  taxes,  insurance,  workovers  and  administrative
expense.  The increase in plant operating  expense for the Coso Partnerships for
the  three-months  ended March 31, 2004, as compared to the same period in 2003,
was primarily due to increased  well  workovers in 2004 to assist in remediating
the decline in steam production, discussed above.

                                       25

Royalty Expense
                                    Three-Months                Three-Months
                                        Ended                       Ended
                                   March 31, 2004              March 31, 2003


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

  Navy I Partnership              2,226       1.2            2,681       1.5
  BLM Partnership                   (33)      0.0               25       0.0
  Navy II Partnership             1,644       0.9            1,472       0.9


     Royalty expense for the Navy I Partnership  decreased for the  three-months
ended March 31, 2004 as compared to the same period in 2003,  primarily due to a
decrease in Unit 1 royalty,  resulting  from  reduced  tariff  rates  charged by
Edison.  The decrease was partially  offset by increased  royalties from Units 2
and 3 resulting  from the scheduled  increase in royalty rate  discussed  above.
Royalty expense for the BLM  Partnership  decreased for the  three-months  ended
March 31, 2004 as compared to the same period in 2003,  due to the current  year
reconciliation performed under the netback royalty calculation.  Royalty expense
for the Navy II Partnership  increased for the three-months ended March 31, 2004
as  compared  to the same  period  in 2003  due to the  increase  in  production
discussed above.


Depreciation and Amortization

     Depreciation and amortization for the Coso  Partnerships  decreased for the
three-months ended March 31, 2004 as compared to the same period in 2003, due to
older  wells and plant  overhauls  being  fully  depreciated  during  2003.  The
decrease  for the Navy I  Partnership  was offset by an increase in  capitalized
assets associated with the new well placed in service in 2003.


Interest and Other Income

     Interest  and other  income  for the Coso  Partnerships  decreased  for the
three-months ended March 31, 2004 as compared to the same period in 2003, due to
a decrease in the rate of return on  investments  due to lower  market rates for
fixed income investments during that period in 2004.


Interest Expense

     Interest expense for the Coso  Partnerships  decreased for the three-months
ended  March  31,  2004 as  compared  to the same  period  in  2003,  due to the
reduction in the principal amount of the project loan from Funding Corp.


Liquidity and Capital Resources

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

                                       26

     The Coso  Partnerships  cash flow  obligations  over the next several years
consist of debt service  payments to Funding  Corp.,  as they come due under the
Funding Corp. senior secured notes (Notes).  The Coso Partnerships  expect to be
able to meet these  obligations  from  operating  cash flow.  Historically,  any
excess cash after debt service has either been reserved for capital improvements
or distributed to the partners.

     The Coso  Partnerships  ability to meet their  obligations as they come due
will depend upon the ability of Edison to meet its  obligations  under the terms
of the standard offer No. 4 power purchase agreements and the Coso Partnerships'
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.  California  Supreme
Court has accepted  the Ninth  Circuit  Court of Appeals  request to address the
issues referred to it in the September 23, 2002 ruling.  The California  Supreme
Court  found  that  the   stipulated   judgment  did  not  violate  state  laws.
Consequently,  the Agreement  remains in full force and effect and it is unknown
if any additional appeals are planned. Immediately after this settlement, Edison
and each of the Coso Partnerships  entered into an amendment of their respective
Agreement (referenced above) pertaining to past due obligations.  The Agreement,
as amended,  was approved by CPUC in January of 2002, and  established the fixed
energy rates discussed above and set payment terms for the past due amounts owed
to  the  Coso  Partnerships  by  Edison.  Edison's  failure  to pay  its  future
obligations may have a material adverse effect on the Coso Partnerships  ability
to make debt  service  payments  to  Funding  Corp.,  as they come due under the
Notes.

     Net cash from operating activities for the Navy I Partnership increased for
the  three-months  ended  March 31, 2004 as compared to the same period in 2003,
primarily due to increased net income and trade  payables  during 2004. Net cash
from operating activities for the BLM Partnership decreased for the three-months
ended March 31, 2004 as  compared to the same period in 2003,  primarily  due to
decreased trade payables during 2004. Net cash used in investing  activities for
the Coso  Partnerships  decreased for the  three-months  ended March 31, 2004 as
compared to the same period in 2003,  due to reduced  capital  expenditures  and
lower restricted cash requirements associated with the Notes during 2004.


Item 3.  Control and Procedures

     The Registrant's  Chief Executive  Officer and Chief Financial Officer (the
Registrant's  principal  executive  officer  and  principal  financial  officer,
respectively)  have concluded,  based on their  evaluation as of March 31, 2004,
that the design and  operation  of the  Registrant's  "disclosure  controls  and
procedures" (as defined in Rules 13a-15(e) under the Securities  Exchange Act of
1934,  as amended  ("Exchange  Act") are  effective  to ensure that  information
required to be disclosed by the  Registrant in the reports filed or submitted by
the  Registrant  under the Exchange  Act is  accumulated,  recorded,  processed,
summarized  and  reported  to  the   Registrant's   management,   including  the
Registrant's  principal  executive officer and principal  financial officer,  as
appropriate  to allow timely  decisions  regarding  whether or not disclosure is
required.

                                       27

     During  the  quarter  ended  March 31,  2004,  there were no changes in the
Registrant's  "internal  controls over financial  reporting" (as defined in Rule
13a-15(f)  under  the  Exchange  Act)  that  have  materially  affected,  or are
reasonably likely to materially affect, the Registrant's  internal controls over
financial reporting.


PART II.     OTHER INFORMATION


ITEM 1.      Legal Proceedings

General

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

ITEM 2.      Change in Securities and Use of Proceeds

                    None.

ITEM 3.      Defaults Upon Senior Securities

                    None.

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

                    None.

ITEM 5.      Other Information

             Supplemental Consolidated and Combined Financial Information for
             the Coso Partnerships and Subsidiaries

     The following  information  presents  unaudited  consolidated  and combined
financial statements of the Coso Partnerships and Subsidiaries.  These financial
statements  represent a consolidated and combination of the financial statements
of Caithness Coso Funding Corp., Coso Finance Partners,  Coso Energy Developers,
Coso  Power  Developers,  New  CLPSI  Company,  LLC and Coso  Transmission  Line
Partners 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 and Subsidiaries as a whole, which jointly and severally  guarantee
the repayment of the Notes. The unaudited  consolidated  and combined  financial
statements should be read in conjunction with each individual Coso Partnership's
and Subsidiaries 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.

                                       28
<PAGE>
<TABLE>
<CAPTION>
                                                COSO PARTNERSHIPS
                               UNAUDITED CONSOLIDATED AND COMBINED BALANCE SHEETS
                                             (Dollars in thousands)



                                                                                           March 31,          December 31,
                                                                                             2004                2003
 <S>                                                                                    <C>                  <C>
                               Assets:
 Current Assets:
    Cash and cash equivalents...................................................         $   22,442           $    2,135
    Restricted cash and cash equivalents........................................             27,934               29,567
    Accounts receivable, net....................................................             20,892               21,740
    Prepaid expenses and other assets...........................................              1,537                2,796
    Inventory...................................................................              5,324                5,270
    Amounts due from related parties............................................              6,757                6,829
                                                                                             ------               ------
                                            Total current assets                             84,886               68,337


 Restricted cash and cash equivalents...........................................             14,023               13,526
 Property, plant and equipment, net.............................................            381,058              386,899
 Power purchase agreement, net..................................................             41,069               42,323
 Deferred financing costs, net..................................................              4,528                4,725
                                                                                             ------              -------

                                            Total assets                                 $  525,564           $  515,810
                                                                                            =======              =======


                               Liabilities and Partners' Capital:

 Current Liabilities:
    Accounts payable and accrued liabilities....................................         $    5,320           $    8,508
    Amounts due to related parties..............................................              7,978                1,588
    Current portion of project loans............................................             31,332               31,332
                                                                                             ------               ------
                                            Total current liabilities                        44,630               41,428


 Other liabilities..............................................................             46,131               45,523
 Project loans..................................................................            222,282              222,282
                                                                                            -------              -------
                                            Total liabilities                               313,043              309,233

 Partners' capital..............................................................            212,521              206,577
                                                                                            -------              -------

                                            Total liabilities & partners'capital         $  525,564          $   515,810
                                                                                            =======              =======








                      See accompanying notes to the unaudited consolidated and combined financial statements.

                                                            29
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                         COSO PARTNERSHIPS
                                UNAUDITED CONSOLIDATED AND COMBINED
                                     STATEMENTS OF OPERATIONS
                                      (Dollars in thousands)



                                                                      Three-Months            Three-Months
                                                                          Ended                   Ended
                                                                        March 31,               March 31,
                                                                          2004                    2003
 <S>                                                                  <C>                     <C>
 Revenue:
    Energy revenues.....................................              $    28,150             $    26,683
    Capacity revenues...................................                    3,716                   3,716
                                                                           ------                  ------
           Total revenue................................                   31,866                  30,399

 Operating expenses:
    Plant operating expenses............................                    8,761                   7,362
    Royalty expense.....................................                    3,837                   4,178
    Depreciation and amortization.......................                    7,767                   7,654
                                                                           ------                  ------
           Total operating expenses.....................                   20,365                  19,194

           Operating income.............................                   11,501                  11,205

 Other (income)/expenses:
    Interest and other income...........................                     (461)                   (538)
    Interest expense....................................                    5,676                   6,293
    Noncash interest expense............................                      342                     329
                                                                            -----                   -----
           Total other expenses.........................                    5,557                   6,084
                                                                            -----                   -----

 Income before cumulative effect of change
    in accounting principle.............................                    5,944                   5,121


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

            Net income..................................              $     5,944             $       640
                                                                            =====                   =====








         See accompanying notes to the unaudited consolidated and combined financial statements.

                                                 30
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                    COSO PARTNERSHIPS
                           UNAUDITED CONSOLIDATED AND CONDENSED
                             COMBINED STATEMENTS OF CASH FLOWS
                                  (Dollars in thousands)


                                                                      Three-Months          Three-Months
                                                                          Ended                 Ended
                                                                        March 31,             March 31,
                                                                          2004                  2003

<S>                                                                   <C>                   <C>
 Net cash provided by (used in) operating activities.....             $   19,850            $   19,245
 Net cash provided by (used in) investing activities.....                    492                (4,727)
 Net cash provided by (used in) financing activities.....                    (35)                   (4)
                                                                          ------                ------


 Net change in cash and cash equivalents.................             $   20,307            $   14,514
                                                                          ======                ======







   See accompanying notes to the unaudited consolidated and condensed combined financial statements.

                                              31
</TABLE>
<PAGE>
                                COSO PARTNERSHIPS
                             NOTES TO THE UNAUDITED
                           CONSOLIDATED AND COMBINED
                              FINANCIAL STATEMENTS
                             (Dollars in thousands)

(1)      Basis of Presentation

The accompanying  unaudited  consolidated and combined financial statements were
derived from the stand alone  unaudited  financial  statements of Caithness Coso
Funding Corp., Coso Finance Partners and Subsidiary,  Coso Energy Developers and
Coso Power Developers and Subsidiary ("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  consolidated and combined financial  statements should be read in
conjunction with each individual Partnership's unaudited financial statements.

The preparation of unaudited financial  statements in accordance with accounting
principles   generally   accepted  in  the  United  States   requires  the  Coso
Partnerships to make certain estimates and assumptions for the reporting periods
covered by the financial statements.  These estimates and assumptions affect the
reported  amounts of  assets,  liabilities,  revenues  and  expenses  during the
reporting  period.  Actual  results  could  differ  from  these  estimates.  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. The Coso Partnerships  have experienced  significant
quarterly   fluctuations  in  operating   results  and  it  expects  that  these
fluctuations in energy revenues, expenses and net income will continue.

The data for the balance sheets presented herein for March 31, 2004 and December
31, 2003 were derived from the Coso Partnership's  financial  statements for the
interim   period  and  fiscal  year  then  ended  and  includes  the  effect  of
consolidating  New CLPSI  Company,  LLC  ("CLPSI")  and Coso  Transmission  Line
Partners ("CTLP"),  but does not include all disclosures  required by accounting
principles generally accepted in the United States.

(2)      New Accounting Pronouncements

The  consolidated  financial  statements  of the Coso  Partnerships  include the
accounts of CPLSI and CTLP, as a result of the adoption of Financial  Accounting
Standards Board ("FASB")  Interpretation  No. 46. ("FIN 46")  (Consolidation  of
Variable Interest  Entities),  an interpretation of Accounting Research Bulletin
No. 51. FIN 46 required certain variable interest entities to be consolidated by
the primary  beneficiary  of the entity even though the equity  investors do not
have the  characteristics of a controlling  financial  interest,  or do not have
sufficient  equity at risk for the  entity to  finance  its  activities  without
additional  subordinated financial support from other parties. In December 2003,
the FASB issued FIN 46 (R),  which  clarified  and replaced FIN 46 that required
all  variable  interest  entities,  regardless  of when they were  created to be
evaluated  under Fin 46 (R) no later than the period  ending March 15, 2004.  An
entity shall be subject to  consolidation  according to the  provisions  of this
Interpretation  if, by design,  the following  conditions exist. As a group, the
holders of the equity  investment  at risk lack any one of the  following  three
characteristics of a controlling financial interest:  (1) the direct or indirect
ability to make decisions about an entity's  activities through voting rights or
similar  rights;  (2) the obligation to absorb the expected losses of the entity
if they occur; or (3) the right to receive the expected  residual returns of the
entity if they occur.  The Coso  Partnerships  believe that CLPSI and CTLP,  the
entities that holds the inventory and transmission  assets are variable interest
entities and under FIN 46 (R) should be  consolidated.  The  inventory,  related
physical assets, and payables will be recorded as the Coso Partnership's  assets
and liabilities. The impact to the Coso Partnership's future statement of
operations will be increased depreciation, partially offset by other income.

                                       32

The  consolidated  financial  statements  related  to prior  periods  have  been
restated to consolidate the accounts of CLPSI and CTLP as a direct result of the
adoption  of FIN 46 (R).  There  was no  cumulative  effect  recorded  upon  the
adoption of the Interpretation.

(3)      Accounts Receivable and Revenue Recognition

Accounts receivable primarily consist of receivables from Edison for electricity
delivered  and sold under a power  purchase  contract.  Operating  revenues  are
recognized as income during the period in which electricity is delivered to
Edison.

(4)      Reclassifications

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

                                       33
<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

<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    3 - MOS
                                          ---  ---      ---  ---
                                              X YEAR          YEAR
                                             ---           ---
                                            (for annual report filings)
                                              OTHER           OTHER
                                          ----           ----
FISCAL YEAR END
(example: DEC-31-1997)                      Dec - 31 - 2003      DEC - 31 - 2004
                                            ---------------      ---------------
                                            mmm - dd - yyyy      mmm - dd - yyyy

PERIOD START
(example: JAN-01-1997)                      Jan - 01 - 2003      JAN - 01 - 2004
                                            ---------------      ---------------
                                            mmm - dd - yyyy      mmm - dd - yyyy

PERIOD END
(example: SEP-30-1997)                      Dec - 31 - 2003      MAR - 31 - 2004
                                            ---------------      ---------------
                                            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 3 MOS
                                                     ----                        -----
<S>                                                     <C>                       <C>
CASH                                                         0                           0
SECURITIES                                                   0                           0
RECEIVABLES                                            254,622                     260,297
ALLOWANCES                                                   0                           0
INVENTORY                                                    0                           0
CURRENT ASSETDS                                         32,340                      38,015
PP&E                                                         0                           0
DEPRECIATION                                                 0                           0
TOTAL ASSETS                                           254,622                     260,297
CURRENT LIABILITIES                                     32,340                      38,015
BONDS                                                  253,614                     253,614
PREFERRED MANDATORY                                          0                           0
PREFERRED                                                    0                           0
COMMON                                                       0                           0
OTHER SE                                                     0                           0
TOTAL LIABILITY AND EQUITY                             254,622                     260,297
SALES                                                        0                           0
TOTAL REVENUES                                          24,828                       5,675
CGS                                                          0                           0
TOTAL COSTS                                                  0                           0
OTHER EXPENSES                                               0                           0
LOSS PROVISION                                               0                           0
INTEREST EXPENSES                                       24,828                       5,675
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 AND SUBSIDIARY
                                            ------------------------------------
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   3 - MOS
                                          ---  ---       --- ---
                                              X YEAR          YEAR
                                             ---           ---
                                            (for annual report filings)
                                              OTHER           OTHER
                                          ----           ----
FISCAL YEAR END
(example: DEC-31-1997)                      Dec - 31 - 2003      DEC - 31 - 2004
                                            ---------------      ---------------
                                            mmm - dd - yyyy      mmm - dd - yyyy

PERIOD START
(example: JAN-01-1997)                      Jan - 01 - 2003      JAN - 01 - 2004
                                            ---------------      ---------------
                                            mmm - dd - yyyy      mmm - dd - yyyy

PERIOD END
(example: SEP-30-1997)                      Dec - 31 - 2003      MAR - 31 - 2004
                                            ---------------      ---------------
                                            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 3 MOS
                                                     ----                        -----
<S>                                                     <C>                        <C>
CASH                                                     1,454                       8,477
SECURITIES                                              24,657                      24,287
RECEIVABLES                                              8,996                       9,300
ALLOWANCES                                                 546                         546
INVENTORY                                                    0                           0
CURRENT ASSETS                                          27,454                      33,580
PP&E                                                   247,215                     247,610
DEPRECIATION                                           111,344                     113,904
TOTAL ASSETS                                           187,265                     191,357
CURRENT LIABILITIES                                     15,671                      16,086
BONDS                                                   97,547                      97,547
PREFERRED MANDATORY                                          0                           0
PREFERRED                                                    0                           0
COMMON                                                       0                           0
OTHER SE                                                     0                           0
TOTAL LIABILITY AND EQUITY                             187,265                     191,357
SALES                                                   59,792                      13,111
TOTAL REVENUES                                          61,416                      13,202
CGS                                                          0                           0
TOTAL COSTS                                                  0                           0
OTHER EXPENSES                                          33,675                       7,753
LOSS PROVISION                                               0                           0
INTEREST EXPENSES                                       10,257                       2,319
INCOME PRETAX                                                0                           0
INCOME TAX                                                   0                           0
INCOME CONTINUING                                            0                           0
DISCONTINUED                                                 0                           0
EXTRAORDINARY                                                0                           0
CHANGES                                                  1,780                           0
NET INCOME                                              15,704                       3,130
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   3 - MOS
                                          ---  ---       --- ---
                                               X YEAR          YEAR
                                             ---           ---
                                            (for annual report filings)
                                              OTHER           OTHER
                                          ----           ----
FISCAL YEAR END
(example: DEC-31-1997)                      Dec - 31 - 2003      DEC - 31 - 2004
                                            ---------------      ---------------
                                            mmm - dd - yyyy      mmm - dd - yyyy

PERIOD START
(example: JAN-01-1997)                      Jan - 01 - 2003      JAN - 01 - 2004
                                            ---------------      ---------------
                                            mmm - dd - yyyy      mmm - dd - yyyy

PERIOD END
(example: SEP-30-1997)                      Dec - 31 - 2003      MAR - 31 - 2004
                                            ---------------      ---------------
                                            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 3 MOS
                                                     ----                        -----
<S>                                                     <C>                         <C>
CASH                                                       603                       7,378
SECURITIES                                              10,155                       9,691
RECEIVABLES                                              7,272                       6,765
ALLOWANCES                                                   0                           0
INVENTORY                                                    0                           0
CURRENT ASSETS                                          18,982                      24,289
PP&E                                                   250,930                     251,120
DEPRECIATION                                           120,411                     122,499
TOTAL ASSETS                                           170,556                     173,595
CURRENT LIABILITIES                                     13,507                      14,863
BONDS                                                   84,821                      84,821
PREFERRED MANDATORY                                          0                           0
PREFERRED                                                    0                           0
COMMON                                                       0                           0
OTHER SE                                                     0                           0
TOTAL LIABILITY AND EQUITY                             170,556                     173,595
SALES                                                   46,869                       9,099
TOTAL REVENUES                                          48,010                       9,410
CGS                                                          0                           0
TOTAL COSTS                                                  0                           0
OTHER EXPENSES                                          24,820                       5,730
LOSS PROVISION                                               0                           0
INTEREST EXPENSES                                        8,385                       1,993
INCOME PRETAX                                                0                           0
INCOME TAX                                                   0                           0
INCOME CONTINUING                                            0                           0
DISCONTINUED                                                 0                           0
EXTRAORDINARY                                                0                           0
CHANGES                                                    924                           0
NET INCOME                                              13,881                       1,687
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 AND SUBSIDIARY
                                            ------------------------------------
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   3 - MOS
                                          ---  ---        --- ---
                                              X YEAR          YEAR
                                             ---           ---
                                            (for annual report filings)
                                              OTHER           OTHER
                                          ----           ----
FISCAL YEAR END
(example: DEC-31-1997)                      Dec - 31 - 2003      DEC - 31 - 2004
                                            ---------------      ---------------
                                            mmm - dd - yyyy      mmm - dd - yyyy

PERIOD START
(example: JAN-01-1997)                      Jan - 01 - 2003      JAN - 01 - 2004
                                            ---------------      ---------------
                                            mmm - dd - yyyy      mmm - dd - yyyy

PERIOD END
(example: SEP-30-1997)                      Dec - 31 - 2003      MAR - 31 - 2004
                                            ---------------      ---------------
                                            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 3 MOS
                                                     ----                        -----
<S>                                                     <C>                         <C>
CASH                                                        78                       6,587
SECURITIES                                               8,281                       7,979
RECEIVABLES                                             14,479                      13,923
ALLOWANCES                                                  82                          82
INVENTORY                                                    0                           0
CURRENT ASSETS                                          23,451                      28,728
PP&E                                                   225,873                     225,958
DEPRECIATION                                           105,364                     107,227
TOTAL ASSETS                                           164,543                     167,292
CURRENT LIABILITIES                                     13,800                      15,392
BONDS                                                   71,246                      71,246
PREFERRED MANDATORY                                          0                           0
PREFERRED                                                    0                           0
COMMON                                                       0                           0
OTHER SE                                                     0                           0
TOTAL LIABILITY AND EQUITY                             164,543                     167,292
SALES                                                   46,149                       9,656
TOTAL REVENUES                                          46,575                       9,784
CGS                                                          0                           0
TOTAL COSTS                                                  0                           0
OTHER EXPENSES                                          27,410                       6,951
LOSS PROVISION                                               0                           0
INTEREST EXPENSES                                        7,500                       1,706
INCOME PRETAX                                                0                           0
INCOME TAX                                                   0                           0
INCOME CONTINUING                                            0                           0
DISCONTINUED                                                 0                           0
EXTRAORDINARY                                                0                           0
CHANGES                                                  1,777                           0
NET INCOME                                               9,888                       1,127
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  and  Subsidiary,   Coso  Energy
     Developers,  and Coso Power  Developers and Subsidiary  (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:  May 17, 2004                      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  and  Subsidiary,   Coso  Energy
     Developers,  and Coso Power  Developers and Subsidiary  (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:  May 17, 2004                      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  and  Subsidiary,  Coso  Energy  Developers,  and  Coso  Power
Developers and Subsidiary (collectively,  the "Registrant") on Form 10-Q for the
period  ending  March  31,  2004 as  filed  with  the  Securities  and  Exchange
Commission on the date hereof (the  "Report"),  I, James D. Bishop,  Sr.,  Chief
Executive  Officer of the Registrant,  certify,  to the best of my knowledge and
belief,  pursuant to 18 U.S.C.  ss. 1350, as adopted  pursuant to ss. 906 of the
Sarbanes-Oxley Act of 2002, that:

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

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


Date:  May 17, 2004                     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  and  Subsidiary,  Coso  Energy  Developers,  and  Coso  Power
Developers and Subsidiary (collectively,  the "Registrant") on Form 10-Q for the
period  ending  March  31,  2004 as  filed  with  the  Securities  and  Exchange
Commission on the date hereof (the "Report"), I, Christopher T. McCallion, Chief
Financial  Officer of the Registrant,  certify,  to the best of my knowledge and
belief,  pursuant to 18 U.S.C.  ss. 1350, as adopted  pursuant to ss. 906 of the
Sarbanes-Oxley Act of 2002, that:

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

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


Date:  May 17, 2004                    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:  May 17, 2004                     By:  /S/ CHRISTOPHER T. MCCALLION
                                             ----------------------------
                                                 Christopher T. McCallion
                                                 Executive Vice President &
                                                 Chief Financial Officer
                                                 (Principal Financial and
                                                 Accounting Officer)


                                       COSO FINANCE PARTNERS AND SUBSIDIARY
                                       a California general Partnership

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

Date:  May 17, 2004                     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:  May 17, 2004                     By:  /S/ CHRISTOPHER T. MCCALLION
                                             ----------------------------
                                                 Christopher T. McCallion
                                                 Executive Vice President &
                                                 Chief Financial Officer
                                                 (Principal Financial and
                                                 Accounting Officer)



                                       COSO POWER DEVELOPERS AND SUBSIDIARY
                                       a California general Partnership

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

Date:  May 17, 2004                     By:  /S/ CHRISTOPHER T. MCCALLION
                                             ----------------------------
                                                 Christopher T. McCallion
                                                 Executive Vice President &
                                                 Chief Financial Officer
                                                 (Principal Financial and
                                                 Accounting Officer)