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

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

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

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

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

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

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


1114 Avenue of the Americas, 41st Floor, New York, New York      10036-7790
-----------------------------------------------------------      ----------
      (Address of principal executive offices)                   (Zip Code)

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

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


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

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

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

        300 shares in Caithness Coso Funding Corp. as of August 13, 2001
        ----------------------------------------------------------------



<PAGE>



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


PART I.  FINANCIAL INFORMATION                                          Page No.

ITEM 1.  Financial Statements


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

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

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

                                       2

   Coso Power Developers
   Unaudited condensed balance sheets at June 30, 2001 and
     December 31, 2000                                                      16
   Unaudited condensed statements of operations for the three-months
     ended June 30, 2001, the three-months ended June 30, 2000,
     the six-months ended June 30, 2001, and the six-months ended
     June 30, 2000                                                          17
   Unaudited condensed statements of cash flows for the six-months
     ended June 30, 2001 and the six-months ended June 30, 2000             18
   Notes to the unaudited condensed financial statements                    19

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

PART II. OTHER INFORMATION

ITEM 1.  Legal Proceedings                                                  29
ITEM 2.  Change in Securities and Use of Proceeds                           29
ITEM 3.  Defaults upon Senior Securities                                    29
ITEM 4.  Submission of Matters to a Vote of Security Holders                29
ITEM 5.  Other Information                                                  29
   Supplemental condensed combined financial information for the
     Coso Partnerships
   Unaudited condensed combined balance sheets at June 30, 2001
   and December 31, 2000                                                    30
   Unaudited condensed combined statements of operations  for the
     three-months ended June 30, 2001, the three-months ended
     June 30, 2000, the six-months ended June 30, 2001, and the
     six-months ended June 30, 2000                                         31
   Unaudited condensed combined statements of cash flows for the
     six-months ended June 30, 2001 and the six-months ended
     June 30, 2000                                                          32
   Notes to the unaudited condensed combined financial statements           33

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

                                       3

<PAGE>

                          CAITHNESS COSO FUNDING CORP.
                       UNAUDITED CONDENSED BALANCE SHEETS
                             (Dollars in thousands)

<TABLE>
<CAPTION>



                                                                June 30,           December 31,
                                                                 2001                 2000
                                                                                     (Note)

<S>                                                          <C>                 <C>

Assets:
   Accrued interest receivable.......................         $   1,254          $    1,286
   Project loan to Coso Finance Partners.............           129,893             134,984
   Project loan to Coso Energy Developers............            99,040             100,907
   Project loan to Coso Power Developers.............            89,925              94,176
                                                                -------             -------

                                                              $ 320,112          $  331,353
                                                                =======             =======




Liabilities and Stockholders' Equity:
   Senior secured notes:
      Accrued interest payable.......................         $   1,254          $    1,286
      6.80% notes due 2001...........................            15,858              27,067
      9.05% notes due 2009...........................           303,000             303,000
                                                                -------             -------
                                                                320,112             331,353
Stockholders' equity.................................               ---                 ---
                                                                -------             --------

                                                              $ 320,112          $  331,353
                                                                =======             =======
</TABLE>





Note: The condensed  balance sheet at December 31, 2000 has been derived from
      the audited  financial  statements at that date but does not include all
      of the information  and  footnotes  required  by  generally  accepted
      accounting principles for complete financial statements.





     See accompanying notes to the unaudited condensed financial statements

                                       4

<PAGE>

<TABLE>
<CAPTION>

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

<S>                             <C>                 <C>              <C>             <C>

                                Three-Months       Three-Months        Six-Months      Six-Months
                                    Ended             Ended              Ended           Ended
                                   June 30,          June 30,           June 30,        June 30,
                                     2001              2000               2001            2000

 Interest income..........       $  5,997          $  7,708           $  14,598       $  16,929
 Interest expense.........         (5,997)           (7,708)            (14,598)        (16,929)
                                   ------            ------             -------         -------

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

</TABLE>





     See accompanying notes to the unaudited condensed financial statements

                                       5

<PAGE>


                          CAITHNESS COSO FUNDING CORP.
                  UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
                             (Dollars in thousands)




                                                Six-Months            Six-Months
                                                  Ended                 Ended
                                                 June 30,              June 30,
                                                   2001                  2000



Cash flows from investing activities.......     $  11,241            $  64,969
Cash flows from financing activities.......       (11,241)             (64,969)
                                                  -------              -------
Net change in cash and cash equivalents....     $     ---            $     ---
                                                  =======              =======

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





     See accompanying notes to the unaudited condensed financial statements

                                       6

<PAGE>


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



(1)      Organization and Operations

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

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

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

(2)      Basis of Presentation

The accompanying  unaudited condensed financial statements have been prepared in
accordance with generally accepted  accounting  principles for interim financial
information.  Accordingly, certain information and footnote disclosures normally
included in financial  statements prepared in accordance with generally accepted
accounting  principles  have been  condensed or omitted  pursuant to such rules.
Management  believes that the  disclosures  are adequate to make the information
presented not misleading when read in conjunction with the financial  statements
and the notes  thereto in the audited  financial  statements  for the year ended
December 31, 2000.

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

(3)      New Accounting Pronouncements

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

                                       7

<PAGE>


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


                                                                                     June 30,          December 31,
                                                                                       2001                2000
                                                                                                          (Note)


<S>                                                                                  <C>               <C>
Assets:
   Cash and cash equivalents....................................................   $    5,646          $   3,506
   Restricted cash and investments..............................................       23,572             22,996
   Accounts receivable, net.....................................................        7,045                521
   Prepaid expenses & other assets..............................................           51                809
   Amounts due from related parties.............................................        7,591              1,960
   Property, plant & equipment, net.............................................      145,178            149,076
   Power purchase agreement, net................................................       11,666             12,240
   Investment in China Lake Plant Services, Inc.................................        4,050              4,072
   Deferred financing costs, net................................................        2,970              3,229
                                                                                      -------            -------

                                                                                   $  207,769         $  198,409
                                                                                      =======            =======

Liabilities and Partners' Capital:
   Accounts payable and accrued liabilities.....................................   $   22,795         $   15,857
   Amounts due to related parties...............................................        3,060                697
   Project loans................................................................      129,893            134,984
                                                                                      -------            -------
                                                                                      155,748            151,538
   Partners' capital............................................................       52,021             46,871
                                                                                      -------            -------

                                                                                   $  207,769         $  198,409
                                                                                      =======            =======



</TABLE>



Note:     The condensed balance sheet at December 31, 2000 has been derived from
          the audited  financial  statements at that date but does not include
          all of the information  and footnotes  required by generally  accepted
          accounting principles for complete financial statements.





     See accompanying notes to the unaudited condensed financial statements

                                       8

<PAGE>


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

                                                         Three-Months       Three-Months         Six-Months        Six-Months
                                                            Ended               Ended              Ended             Ended
                                                           June 30,           June 30,            June 30,          June 30,
                                                             2001               2000                2001              2000

<S>                                                       <C>                <C>                 <C>               <C>
Revenue:
   Energy revenues...........................             $  16,022           $  9,458           $  46,637         $  17,183
   Capacity revenues.........................                 3,566              3,566               4,821             4,821
   Interest and other income.................                 1,043                459               1,178               782
                                                             ------             ------              ------            ------
           Total revenue.....................                20,631             13,483              52,636            22,786

Operating expenses:
   Plant operating expenses..................                 2,812              2,274               4,574             4,346
   Royalty expense...........................                 2,984              2,016               6,754             3,205
   Provision for doubtful accounts...........                (4,204)               ---              21,613               ---
   Depreciation and amortization.............                 2,541              2,235               5,040             4,588
                                                             ------             ------              ------            ------
          Total operating expenses...........                 4,133              6,525              37,981            12,139

          Operating income...................                16,498              6,958              14,655            10,647

Other expenses:
    Interest expense.........................                 2,971              3,120               5,955             6,293
    Amortization on deferred financing.......                   130                129                 260               259
                                                             ------             ------              ------            ------
          Total other expenses...............                 3,101              3,249               6,215             6,552


           Net income........................             $  13,397           $  3,709           $   8,440         $   4,095
                                                             ======             ======              ======            ======




</TABLE>




     See accompanying notes to the unaudited condensed financial statements

                                       9

<PAGE>


                              COSO FINANCE PARTNERS
                  UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
                             (Dollars in thousands)

<TABLE>
<CAPTION>


                                                                 Six-Months        Six-Months
                                                                   Ended             Ended
                                                                  June 30,          June 30,
                                                                    2001              2000


<S>                                                              <C>               <C>

Net cash provided by operating activities................         $ 11,665         $   4,071
Net cash provided by (used in) investing activities......           (1,144)            1,777
Net cash provided by (used in) financing activities......           (8,381)          (10,048)
                                                                    ------           -------
Net change in cash and cash equivalents..................         $  2,140         $  (4,200)
                                                                    ======           =======

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



</TABLE>


     See accompanying notes to the unaudited condensed financial statements

                                       10

<PAGE>


                              COSO FINANCE PARTNERS
              NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS



(1)      Organization and Operation

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

(2)      Basis of Presentation

The accompanying  unaudited  condensed combined  financial  statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information. Accordingly, certain information and footnote disclosures
normally included in financial  statements prepared in accordance with generally
accepted  accounting  principles have been condensed or omitted pursuant to such
rules.  Management  believes  that  the  disclosures  are  adequate  to make the
information presented not misleading when read in conjunction with the financial
statements  and the notes thereto in the audited  financial  statements  for the
year ended December 31, 2000.

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

(3)      New Accounting Pronouncements

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

                                       11

<PAGE>


                             COSO ENERGY DEVELOPERS
                       UNAUDITED CONDENSED BALANCE SHEETS
                             (Dollars in thousands)

<TABLE>
<CAPTION>


                                                                                 June 30,          December 31,
                                                                                   2001               2000
                                                                                                     (Note)
<S>                                                                              <C>               <C>
Assets:
   Cash and cash equivalents..............................................      $   4,977           $   5,862
   Restricted cash and investments........................................         12,417              14,502
   Accounts receivable, net...............................................          6,775                  40
   Prepaid expenses and other assets......................................             52               1,013
   Amounts due from related parties.......................................          1,110                 365
   Property, plant and equipment, net.....................................        152,791             153,618
   Power purchase agreement, net..........................................         18,974              19,510
   Investment in Coso Transmission Line Partners..........................          2,871               2,871
   Investment in China Lake Plant Services, Inc...........................            908               1,051
   Deferred financing costs, net..........................................          2,321               2,480
                                                                                  -------             -------

                                                                                $ 203,196           $ 201,312
                                                                                  =======             =======


Liabilities and Partners' Capital:
   Accounts payable and accrued liabilities...............................      $   9,279           $   6,839
   Amounts due to related parties.........................................         26,452              24,321
   Project loans..........................................................         99,040             100,907
                                                                                  -------             -------
                                                                                  134,771             132,067
Partners' capital.........................................................         68,425              69,245
                                                                                  -------             -------

                                                                                $ 203,196           $ 201,312
                                                                                  =======             =======


</TABLE>




Note:     The  condensed  balance  sheet at December  31, 2000 has been  derived
          from the audited financial statements at that date but does not
          include all of the information and footnotes required by generally
          accepted  accounting principles for complete financial statements.







     See accompanying notes to the unaudited condensed financial statements

                                       12

<PAGE>


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


                                                   Three-Months      Three-Months    Six-Months      Six-Months
                                                      Ended             Ended          Ended           Ended
                                                     June 30,          June 30,       June 30,        June 30,
                                                       2001              2000           2001            2000

<S>                                                <C>               <C>               <C>             <C>
Revenue:
   Energy revenues.............................     $  14,708          $  7,778       $  40,255       $  13,731
   Capacity revenues...........................         3,484             3,484           4,712           4,711
   Interest and other income...................         1,217               366           1,837           5,681
                                                       ------            ------          ------          ------
          Total revenue........................        19,409            11,628          46,804          24,123

Operating expenses:
   Plant operating expenses....................         2,847             2,878           5,208           5,417
   Royalty expense.............................         1,158               513           4,026             578
   Provisions for doubtful accounts............        (4,120)              ---          21,830             ---
   Depreciation and amortization...............         3,929             3,538           7,875           7,414
                                                       ------            ------          ------          ------
          Total operating expenses.............         3,814             6,929          38,939          13,409

          Operating income.....................        15,595             4,699           7,865          10,714

Other expenses:
   Interest expense............................         2,251             2,275           4,508           4,583
   Amortization of deferred financing..........            80                79             159             159
                                                       ------            ------          ------          ------
          Total other expenses.................         2,331             2,354           4,667           4,742


          Net income...........................     $  13,264          $  2,345       $   3,198       $   5,972
                                                       ======            ======          ======          ======




</TABLE>



     See accompanying notes to the unaudited condensed financial statements

                                       13

<PAGE>


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

<TABLE>
<CAPTION>


                                                                         Six-Months      Six-Months
                                                                            Ended           Ended
                                                                           June 30,        June 30,
                                                                            2001             2000


<S>                                                                      <C>             <C>
Net cash provided by operating activities......................          $   9,427       $  10,384
Net cash provided by (used in) investing activities............             (4,427)          2,406
Net cash provided by (used in) financing activities............             (5,885)         (5,182)
                                                                            ------          ------
Net change in cash and cash equivalents........................          $    (885)      $   7,608
                                                                            ======          ======

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




</TABLE>


     See accompanying notes to the unaudited condensed financial statements

                                       14

<PAGE>


                             COSO ENERGY DEVELOPERS
              NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS



(1)      Organization and Operation

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

(2)      Basis of Presentation

The accompanying  unaudited condensed financial statements have been prepared in
accordance with generally accepted  accounting  principles for interim financial
information.  Accordingly, certain information and footnote disclosures normally
included in financial  statements prepared in accordance with generally accepted
accounting  principles  have been  condensed or omitted  pursuant to such rules.
Management  believes that the  disclosures  are adequate to make the information
presented not misleading when read in conjunction with the financial  statements
and the notes  thereto in the audited  financial  statements  for the year ended
December 31, 2000.

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

(3)      New Accounting Pronouncements

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

                                       15

<PAGE>


                                                COSO POWER DEVELOPERS
                                         UNAUDITED CONDENSED BALANCE SHEETS
                                               (Dollars in thousands)

<TABLE>
<CAPTION>


                                                                                        June 30,      December 31,
                                                                                          2001           2000
                                                                                                        (Note)

<S>                                                                                     <C>          <C>
Assets:
   Cash and cash equivalents................................................         $   1,496        $   7,741
   Restricted cash and investments..........................................             9,725           10,214
   Accounts receivable, net.................................................             6,632               29
   Prepaid expenses and other assets........................................                50              849
   Amounts due from related parties.........................................             4,869            5,953
   Property, plant and equipment, net.......................................           131,154          136,947
   Power purchase agreement, net............................................            24,218           25,614
   Investment in Coso Transmission Line Partners............................             3,528            3,528
   Investment in China Lake Plant Services, Inc.............................             1,978            1,963
   Deferred financing costs, net............................................             2,470            2,855
                                                                                       -------          -------

                                                                                     $ 186,120        $ 195,693
                                                                                       =======          =======

Liabilities and Partners' Capital:
   Accounts payable and accrued liabilities.................................         $  16,120        $  12,278
   Amounts due to related parties...........................................             8,075            1,816
   Project loans............................................................            89,925           94,176
                                                                                       -------          -------
                                                                                       114,120          108,270
Partners' capital...........................................................            72,000           87,423
                                                                                       -------          -------

                                                                                     $ 186,120        $ 195,693
                                                                                       =======          =======





</TABLE>

Note:    The condensed balance sheet at December 31, 2000 has been derived
         from the audited financial statements at that date but does not include
         all of the information and footnotes required by generally accepted
         accounting principles for complete financial statements.






     See accompanying notes to the unaudited condensed financial statements

                                       16

<PAGE>


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

<TABLE>
<CAPTION>

                                                   Three-Months      Three-Months      Six-Months      Six-Months
                                                      Ended             Ended            Ended           Ended
                                                     June 30,          June 30,         June 30,        June 30,
                                                      2001              2000              2001            2000

<S>                                                <C>               <C>               <C>              <C>
Revenue:
   Energy revenues...........................      $   11,467         $   7,435        $  34,678       $  15,989
   Capacity revenues.........................           3,505             3,504            4,738           4,738
   Interest and other income.................             896               873            1,254           1,402
                                                      -------            ------           ------          ------
          Total revenue......................          15,868            11,812           40,670          22,129

Operating expenses:
   Plant operating expenses..................           2,875             2,541            4,850           4,646
   Royalty expense...........................           2,181             1,986            5,893           3,761
   Provision for doubtful accounts...........          (4,265)              ---           22,733             ---
   Depreciation and amortization.............           3,831             3,708            7,584           7,406
                                                      -------            ------           ------          ------
          Total operating expenses...........           4,622             8,235           41,060          15,813

          Operating income (loss)............          11,246             3,577             (390)          6,316

Other expenses:
   Interest expense..........................           2,062             2,307            4,137           4,661
   Amortization on deferred finnancing.......             193               193              385             385
                                                      -------            ------           ------          ------
          Total other expenses...............           2,255             2,500            4,522           5,046

          Net income (loss)..................      $    8,991        $    1,077        $  (4,912)      $   1,270
                                                      =======            ======           ======          ======




</TABLE>





     See accompanying notes to the unaudited condensed financial statements

                                       17


<PAGE>


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

<TABLE>
<CAPTION>


                                                                 Six-Months      Six-Months
                                                                    Ended           Ended
                                                                   June 30,        June 30,
                                                                     2001            2000

<S>                                                               <C>             <C>

Net cash provided by operating activities......................   $   8,423       $  16,999
Net cash provided by (used in) investing activities............          94          42,508
Net cash provided by (used in) financing activities............     (14,762)        (49,616)
                                                                    -------         -------
Net change in cash and cash equivalents........................   $  (6,245)      $   9,891
                                                                    =======         =======

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




</TABLE>





     See accompanying notes to the unaudited condensed financial statements

                                       18


<PAGE>


                              COSO POWER DEVELOPERS
              NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS



(1)      Organization and Operation

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

(2)      Basis of Presentation

The accompanying  unaudited condensed financial statements have been prepared in
accordance with generally accepted  accounting  principles for interim financial
information.  Accordingly, certain information and footnote disclosures normally
included in financial  statements prepared in accordance with generally accepted
accounting  principles  have been  condensed or omitted  pursuant to such rules.
Management  believes that the  disclosures  are adequate to make the information
presented not misleading when read in conjunction with the financial  statements
and the notes  thereto in the audited  financial  statements  for the year ended
December 31, 2000.

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

(3)      New Accounting Pronouncements

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

                                       19


<PAGE>

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

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


General

     The Coso projects consist of three 80MW geothermal power plants,  which are
referred  to as Navy I, BLM and Navy II, and their  transmission  lines,  wells,
gathering  systems and other related  facilities.  The Coso projects are located
near one another at the United  States  Naval Air Weapons  Center at China Lake,
California.  The Navy I Partnership owns Navy I and its related facilities.  The
BLM  Partnership  owns BLM and its related  facilities.  The Navy II Partnership
owns Navy II and its related facilities. Affiliates of Caithness Corporation and
CalEnergy Company, Inc. ("CalEnergy"),  which is now known as MidAmerican Energy
Holdings  Company,  formed  the  Coso  Partnerships  in the  1980s  to  develop,
construct,  own and operate the Coso  projects.  On February 25, 1999  Caithness
Acquisition  Company,  LLC, (CAC) purchased all of CalEnergy's  interests in the
Coso projects for $205.0 million in cash plus the assumption of CalEnergy's  and
its  affiliates'  share of debt  outstanding  at the Coso  projects  which  then
totaled approximately $67.0 million.

     Each Coso Partnership  sells 100% of the electrical energy generated at its
plant to Edison under a long-term Standard Offer No.4 power purchase  agreement.
Each power purchase  agreement expires after the final maturity date of the 6.8%
Senior Secured Notes and the 9.05% Senior Secured Notes issued by Funding Corp.

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

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

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

                                       20

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

     Energy  payments were fixed for the first ten years of firm operation under
each power purchase  agreement.  After the first ten years of firm operation and
until a Coso Partnership's power purchase agreement expires, Edison makes energy
payments to the Coso  Partnership  based on Edison's  "avoided  cost of energy".
Edison's  avoided  cost of energy is Edison's  cost to generate  electricity  if
Edison were to produce it itself or buy it from another  power  producer  rather
than buy it from the Coso  Partnerships.  The power  purchase  agreement for the
Navy I Partnership will expire in August 2011, the power purchase  agreement for
the BLM Partnership will expire in March 2019, and the power purchase  agreement
for the Navy II Partnership  will expire in January 2010. The fixed energy price
period expired in August 1997 for the Navy I Partnership,  in March 1999 for the
BLM Partnership and in January 2000 for the Navy II Partnership.

     For the six-months  ended June 30, 2001,  Edison's  average avoided cost of
energy paid to the Coso  Partnerships was 11.7 cents per kWh, as compared to 3.7
cents per kWh for the six-months  ended June 30, 2000. On June 19, 2001,  Edison
entered  into an  agreement  with the Coso  Partnerships,  that  establishes  an
average short run avoided cost of 5.37  cents/kWh for energy sales to Edison for
five years,  subject to the  enactment of enabling  legislation  and  California
Public Utilities Commission (CPUC) approval.

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

     The Coso  Partnerships  are required to make  royalty  payments to the U.S.
Navy and the Bureau of Land  Management.  The Navy I Partnership  pays a royalty
for Unit I through  reimbursement  of  electricity  supplied to the U.S. Navy by
Edison from  electricity  generated at the Navy I plant.  The  Reimbursement  is
based on a pricing formula that is included in the U.S. Navy Contract. For Units
2 and 3, the Navy I  Partnership's  royalty  expense paid to the U.S.  Navy is a
fixed  percentage of electricity  sales at 15% of revenue received by the Navy I
Partnership  through 2003 and will increase to 20% from 2004 through  2009.  The
BLM Partnership pays a 10% royalty to the Bureau of Land Management based on the
value of steam produced. The Navy II Partnership pays a royalty to the U.S. Navy
based on a fixed percentage of electricity sales to Edison. The royalty rate was
10% of  electricity  sales through  1999,  and increased to 18% for 2000 through
2004 and will  increase to 20% from 2005 through the end of the  contract  term.
The Coso Partnerships also pay other royalties at various rates.

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

     On May 28,  1999,  Funding  Corp.  issued  $110.0  million of 6.80%  senior
secured notes due in 2001 and $303.0  million of 9.05% senior  secured notes due
in 2009.  The proceeds from the notes were loaned to the Coso  Partnerships  and
are payable to Funding  Corp from  payments  of  principal  and  interest on the
notes.  Funding Corp. does not conduct any other  operations  apart from issuing
the notes.

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

                                       21

     Increases in natural gas prices and an imbalance between supply and demand,
among other factors, has led to significant  increases in wholesale  electricity
prices in California.  Edison had previously  agreed to fixed tariffs with their
retail customers that were  significantly  below the wholesale prices it pays in
California.  This  resulted  in  significant  under-recoveries  by Edison of its
electricity  purchase  costs.  On January 16, 2001 Edison  announced that it was
temporarily  suspending  payments  for  energy  provided,  including  the energy
provided by the Coso Partnerships, pending a permanent solution to its liquidity
crisis.  Pursuant to a CPUC order,  Edison resumed  making  payments to the Coso
Partnerships  beginning with power generated on March 27, 2001.  Edison has made
payments for power  generated in April,  May June and the first  fifteen days of
July. Additionally, Edison made a payment equal to 10% of the unpaid balance for
power  generated  from November 1, 2000 to March 26, 2001,  plus interest on the
outstanding  amount  at 7% per  annum.  This  payment  was made  pursuant  to an
agreement  between  Edison  and the Coso  Partnerships  that will,  among  other
things, pay Coso for all outstanding power deliveries (including interest at 7%)
and  provide for a fixed short run  avoided  cost of 5.37  cents/kWh  for energy
sales for five years.  This  agreement  is subject to the  enactment of enabling
legislation and CPUC approval.


Capacity Utilization

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

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

<TABLE>
<CAPTION>

                                                Three-Months Ended                   Six-Months Ended
                                                      June 30                            June 30

                                              2001             2000               2001              2000
                                              ----             ----               ----              ----
   <S>                                           <C>              <C>                <C>               <C>
Navy I Partnership (stand alone)
  Operating capacity factor                  103.8%           109.3%             106.7%            111.3%
  Capacity (MW) (average)                     83.06            87.42              85.36             89.04
  kWh produced (000s)                        181,398          190,991            370,820           388,907

BLM Partnership (stand alone)
  Operating capacity factor                  108.1%           108.1%             105.2%            107.3%
  Capacity (MW) (average)                     86.49            86.50              84.12             85.82
  kWh produced (000s)                        188,896          189,023            365,420           374,881

Navy II Partnership (stand alone)
  Operating capacity factor                  102.1%           106.4%             104.3%            110.1%
  Capacity (MW) (average)                     81.66            85.14              83.43             88.06
  kWh produced (000s)                        178,353          185,752            362,420           384,658


</TABLE>

                                       22

     The Navy I Partnership's  energy production was 181.4 million kWh and 370.8
million kWh for the three and six-months ended June 30, 2001,  respectively,  as
compared  to 191.0  million kWh and 388.9  million  kWh for the same  periods in
2000, decreases of 5.0% and 4.7% respectively.  The Navy II Partnership's energy
production  was  178.4  million  kWh and  362.4  million  kWh for the  three and
six-months ended June 30, 2001,  respectively,  as compared to 185.8 million kWh
and 384.7 million kWh for the same periods in 2000,  decreases of 4.0% and 5.8%,
respectively.  These  decreases in energy  production  were  primarily  due to a
deferment of certain capital and maintanence  projects by the Coso  Partnerships
due to  non-payment  by Edison during the period  November 1, 2000 through March
26, 2001.  These  projects  have been resumed as Edison has resumed  payment for
production starting in late March 2001.


Results of Operations for the three and six months ended June 30, 2001 and 2000

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


Revenue

<TABLE>
<CAPTION>

                                   Three-Months         Three-Months          Six-Months           Six-Months
                                       Ended               Ended                Ended                Ended
                                   June 30, 2001        June 30, 2000        June 30, 2001        June 30, 2000

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

<S>                             <C>        <C>         <C>         <C>        <C>        <C>         <C>         <C>
Total Operating Revenues
  Navy I Partnership            19,588     10.8        13,024     6.8      51,458    13.9       22,004    5.7
  BLM Partnership               18,192      9.6        11,262     6.0      44,967    12.3       18,442    4.9
  Navy II Partnership           14,972      8.4        10,939     5.9      39,416    10.9       20,727    5.4

Capacity & Capacity Bonus
Revenues
  Navy I Partnership             3,566      2.0         3,566     1.9       4,821     1.3        4,821    1.2
  BLM Partnership                3,484      1.8         3,484     1.8       4,712     1.3        4,711    1.3
  Navy II Partnership            3,505      2.0         3,504     1.9       4,738     1.3        4,738    1.2

Energy Revenues
  Navy I Partnership            16,022      8.8         9,458     5.0      46,637    12.6       17,183    4.4
  BLM Partnership               14,708      7.8         7,778     4.1      40,255    11.0       13,731    3.7
  Navy II Partnership           11,467      6.4         7,435     4.0      34,678     9.6       15,989    4.2


</TABLE>


     Total  operating  revenues  for the Navy I  Partnership,  which  consist of
capacity  payments,  capacity  bonus  payments and energy  payments,  were $19.6
million and $51.5  million  for the three and  six-months  ended June 30,  2001,
respectively,  as  compared  to $13.0  million  and $22.0  million  for the same
periods  in  2000,  increases  of 50.8%  and  134.1%,  respectively.  The Navy I
Partnership's energy revenues were $16.0 million and $46.6 million for the three
and six-months  ended June 30, 2001,  respectively,  as compared to $9.5 million
and $17.2  million for the same periods in 2000,  increases of 68.4% and 170.9%,
respectively.

     Total operating revenues for the BLM Partnership, which consist of capacity
payments,  capacity bonus payments and energy  payments,  were $18.2 million and
$45.0 million for the three and six-months ended June 30, 2001, respectively, as
compared  to $11.3  million  and $18.4  million  for the same  periods  in 2000,
increases  of 61.1%  and  144.6%,  respectively.  The BLM  Partnership's  energy
revenues were $14.7 million and $40.3 million for the three and six-months ended
June 30, 2001,  respectively,  as compared to $7.8 million and $13.7 million for
the same periods in 2000, increases of 88.5% and 194.2%, respectively.

                                       23

     Total  operating  revenues for the Navy II  Partnership,  which  consist of
capacity  payments,  capacity  bonus  payments and energy  payments,  were $15.0
million and $39.4  million  for the three and  six-months  ended June 30,  2001,
respectively,  as  compared  to $10.9  million  and $20.7  million  for the same
periods  in  2000,  increases  of 37.6%  and  90.3%,  respectively.  The Navy II
Partnership's energy revenues were $11.5 million and $34.7 million for the three
and six-months  ended June 30, 2001,  respectively,  as compared to $7.4 million
and $16.0  million for the same periods in 2000,  increases of 55.4% and 116.9%,
respectively.

     Each Coso  Partnership's  increase in operating and energy revenues for the
three and six-month periods ended June 30, 2001, as compared to the same periods
in 2000, were due to increases in the average avoided cost of energy paid to the
respective  partnership,  offset somewhat by previously  discussed  decreases in
generation.  Avoided  cost of  energy  increased  from 4.3 cents per kWh for the
three-month period in 2000 to 8.1 cents per kWh for the same period in 2001, and
from 3.7 cents per kWh for the  six-month  period in 2000 to 11.6  cents per kWh
for the same  period in 2001.  Estimates  of  Edison's  future  avoided  cost of
energy,  which fluctuate with the price of natural gas, may vary  significantly,
and no one can predict the likely level of future avoided cost of energy prices.



Interest and Other Income

<TABLE>
<CAPTION>

                                   Three-Months         Three-Months          Six-Months           Six-Months
                                      Ended                Ended                Ended                Ended
                                   June 30, 2001        June 30, 2000        June 30, 2001        June 30, 2000

<S>                               <C>    <C>            <C>   <C>           <C>    <C>           <C>  <C>

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

  Navy I Partnership             1,043      0.6          459      0.2       1,178     0.3          782    0.2
  BLM Partnership                1,217      0.6          366      0.2       1,837     0.5        5,681    1.5
  Navy II Partnership              896      0.5          873      0.5       1,254     0.3        1,402    0.4

</TABLE>


     The Navy I  Partnership's  interest  and other  income was $1.0 million and
$1.2 million for the three and six-months ended June 30, 2001, respectively,  as
compared  to $0.5  million  and  $0.8  million  for the  same  periods  in 2000,
increases of 100.0% and 50.0%,  respectively.  The  increases  for the three and
six-months  ended June 30, 2001,  as compared to the same periods in 2000,  were
primarily due to interest on amounts in arrears paid by Edison in June of 2001.

     The BLM  Partnership's  interest and other income was $1.2 million and $1.8
million  for the three and  six-months  ended June 30,  2001,  respectively,  as
compared to $0.4  million  and $5.7  million  for the same  periods in 2000,  an
increase of $0.8 million and a decrease of 68.4%, respectively. The increase for
the  three-month  period ended June 30, 2001,  as compared to the same period in
2000, was primarily due to interest on amounts in arrears paid by Edison in June
of 2001. The decrease for the six-months ended June 30, 2001, as compared to the
same period in 2000, was primarily due to a legal  settlement of $5 million with
Dow Chemical Company paid to the BLM Partnership in January of 2000.

     The Navy II  Partnership's  interest  and other income was $1.3 million for
the  six-months  ended June 30,  2001,  as compared to $1.4 million for the same
period in 2000, a decrease of 7.1%. The decrease for the  six-months  ended June
30, 2001,  as compared to the same period in 2000,  was  primarily  due to lower
average  cash  balances  as a result of payment on the  project  loan to Funding
Corp., partially offset by interest on amounts in arrears paid by Edison in June
of 2001.

                                       24

Plant Operations

<TABLE>
<CAPTION>

                                   Three-Months         Three-Months          Six-Months           Six-Months
                                      Ended                Ended                Ended                Ended
                                   June 30, 2001        June 30, 2000        June 30, 2001        June 30, 2000


  <S>                              <C>   <C>             <C>   <C>           <C>   <C>            <C>  <C>
                                  $      Cents/kWh        $     Cents/kWh     $     Cents/kWh      $     Cents/kWh
                                  -      ---------        -     ---------     -     ---------      -     ---------
  Navy I Partnership            2,812       1.6         2,274      1.2      4,574      1.2       4,346      1.1
  BLM Partnership               2,847       1.5         2,878      1.5      5,208      1.4       5,417      1.4
  Navy II Partnership           2,875       1.6         2,541      1.4      4,850      1.3       4,646      1.2

</TABLE>


     The  Navy I  Partnership's  operating  expenses,  including  operating  and
general and administrative  expenses, were $2.8 million and $4.6 million for the
three and  six-months  ended June 30,  2001,  respectively,  as compared to $2.3
million and $4.3  million for the same  periods in 2000,  increases of 21.7% and
7.0%,  respectively.  The increases for the three and six-months  ended June 30,
2001, as compared to the same periods in 2000,  were  primarily due to increased
well  workover  costs and higher  legal  expenses  due to the  Edison  situation
incurred during those periods in 2001.

     The Navy II  Partnership's  operating  expenses,  including  operating  and
general and administrative  expenses, were $2.9 million and $4.9 million for the
three and  six-months  ended June 30,  2001,  respectively,  as compared to $2.5
million and $4.6  million for the same  periods in 2000,  increases of 16.0% and
6.5%  respectively.  The increases for the three and  six-months  ended June 30,
2001, as compared to the same periods in 2000,  were  primarily due to increased
chemical  costs and higher legal expenses due to the Edison  situation  incurred
during those periods in 2001.


Royalty Expense

<TABLE>
<CAPTION>

                                   Three-Months         Three-Months          Six-Months           Six-Months
                                      Ended                Ended                Ended                Ended
                                   June 30, 2001        June 30, 2000        June 30, 2001        June 30, 2000


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

  Navy I Partnership             2,984      1.6         2,016     1.1       6,754     1.8        3,205    0.8
  BLM Partnership                1,158      0.6           513     0.3       4,026     1.1          578    0.2
  Navy II Partnership            2,181      1.2         1,986     1.1       5,893     1.6        3,761    1.0

</TABLE>


     The Navy I  Partnership's  royalty  expenses  were  $3.0  million  and $6.8
million  for the three and  six-months  ended June 30,  2001,  respectively,  as
compared  to $2.0  million  and  $3.2  million  for the  same  periods  in 2000,
increases of 50.0% and $3.6 million, respectively. The BLM Partnership's royalty
expenses were $1.2 million and $4.0 million for the three and  six-months  ended
June 30,  2001,  respectively,  as compared to $0.5 million and $0.6 million for
the  same  periods  in  2000,  increases  of  $0.7  million  and  $3.4  million,
respectively.  The Navy II Partnership's  royalty expenses were $2.2 million and
$5.9 million for the three and six-months ended June 30, 2001, respectively,  as
compared  to $2.0  million  and  $3.8  million  for the  same  periods  in 2000,
increases of 10.0% and 55.3%, respectively.

     Each Coso  Partnership's  increase  in  royalty  expense  for the three and
six-month  periods ended June 30, 2001, as compared to the same periods in 2000,
were due to  increases  in the average  avoided  cost of energy  avoided cost of
energy paid to the  partnerships.  The average avoided cost of energy  increased
from 4.3 cents per kWh for the  three-month  period in 2000 to 8.1 cents per kWh
for the same period in 2001, and from 3.7 cents per kWh for the six-month period
in 2000 to 11.7  cents  per kWh for the same  period in 2001.

                                       25

Depreciation and Amortization

<TABLE>
<CAPTION>

                                   Three-Months         Three-Months          Six-Months           Six-Months
                                      Ended                Ended                Ended                Ended
                                  June 30, 2001        June 30, 2000         June 30, 2001        June 30, 2000


  <S>                              <C>   <C>             <C>   <C>           <C>   <C>            <C>  <C>
                                   $      Cents/kWh       $    Cents/kWh      $    Cents/kWh       $   Cents/kWh
                                   -      ---------       -    ---------      -    ---------       -   ---------
  Navy I Partnership             2,541       1.4        2,235     1.2       5,040     1.4        4,588    1.2
  BLM Partnership                3,929       2.1        3,538     1.9       7,875     2.2        7,414    2.0
  Navy II Partnership            3,831       2.1        3,708     2.0       7,584     2.1        7,406    1.9

</TABLE>


     The Navy I Partnership's  depreciation  and  amortization  expense was $2.5
million  and $5.0  million  for the three and  six-months  ended June 30,  2001,
respectively,  as compared to $2.2 million and $4.6 million for the same periods
in 2000,  increases  of 13.6%  and  8.7%,  respectively.  The BLM  Partnership's
depreciation and amortization  expense was $3.9 million and $7.9 million for the
three and  six-months  ended June 30,  2001,  respectively,  as compared to $3.5
million and $7.4  million for the same  periods in 2000,  increases of 11.4% and
6.8%,  respectively.  Both  the  Navy  I  and  BLM  Partnership's  increases  in
depreciation  and  amortization  expense for the three and six-months ended June
30,  2001,  as  compared  to the same  periods in 2000,  were  primarily  due to
increases in capitalized assets during those periods in 2001.


Interest Expense

<TABLE>
<CAPTION>

                                   Three-Months         Three-Months          Six-Months           Six-Months
                                      Ended                Ended                Ended                Ended
                                   June 30, 2001        June 30, 2000        June 30, 2001        June 30, 2000


  <S>                              <C>   <C>             <C>   <C>           <C>   <C>            <C>  <C>
                                   $     Cents/kWh        $    Cents/kWh      $    Cents/kWh       $   Cents/kWh
                                   -     ---------        -    ---------      -    ---------       -   ---------
  Navy I Partnership             2,971      1.6         3,120     1.6       5,955     1.6        6,293    1.6
  BLM Partnership                2,251      1.2         2,275     1.2       4,508     1.2        4,583    1.2
  Navy II Partnership            2,062      1.2         2,307     1.2       4,137     1.1        4,661    1.2

</TABLE>


     The  Navy II  Partnership's  interest  expense  was $2.1  million  and $4.1
million  for the three and  six-months  ended June 30,  2001,  respectively,  as
compared  to $2.3  million  and  $4.7  million  for the  same  periods  in 2000,
decreases of 8.7% and 12.8%,  respectively.  These decreases in interest expense
for the three and  six-months  ended  June 30,  2001,  as  compared  to the same
periods in 2000 were due to reductions  in the  principal  amount of the project
loan from Funding Corp.


Provision for Doubtful Accounts

     Edison experienced  significant cash flow problems earlier this year due in
part to the  difference  between  revenues  received from its customers  through
frozen  electric  rates  and the cost of  producing  service  to its  customers,
including  the  cost to  acquire  electricity.  This  cash  flow  shortfall  has
adversely  affected  Edison's  liquidity  and in turn  it did  not pay the  Coso
Partnerships  for energy delivered from November 2000 through March 26, 2001. On
June 19, 2001,  Edison entered into an agreement with the Coso Partnerships that
addressed energy pricing and payment issues.  On June 21, 2001, the Navy I, BLM,
and Navy II  Partnerships  received their first  payments of $4,139,  $4,118 and
$4,227,  respectively,  for partial  payment of amounts due from  November  2000
through  March 26, 2001.  Any future  payments  are subject to the  enactment of
enabling  legislation and CPUC approval.  Despite this partial payment of 10% of
the  uncollected  amount on June 21, 2001, the Coso  Partnerships  are unable to
determine the time frame during which they can expect  payment for the remainder
of the receivable.

                                       26

Liquidity and Capital Resources

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

     The Coso  Partnership's  ability to meet their obligations as they come due
will depend upon the ability of Edison to meet its  obligations  under the terms
of the  standard  offer No. 4 power  purchase  agreements.  Edison's  increasing
shortfall in collections,  coupled with its near term capital  requirements  has
materially  and adversely  affected its  liquidity.  Unless actions are taken to
restore  Edison's  financial  condition,  there is  uncertainty of collection of
receivables owed to the Coso  Partnerships for revenues  generated from November
2000 through March 26, 2001 and forward. Edison's failure to pay its obligations
will have a material  adverse effect on the Coso  Partnership's  ability to make
debt service  payments to Funding Corp. as they come due under the Funding Corp.
notes.

     On March 27, 2001 the California Public Utility Commission ("CPUC") ordered
Edison to resume paying  qualifying  facilities such as the Coso Partnerships at
rates stipulated by the CPUC. For the month of April, the CPUC ordered Edison to
prepay  by  mid-month  for  April  generation.   On  April  19,  2001  the  Coso
Partnerships received the payment which was based on historical output. On April
30, 2001 a second payment was received for generation sold in the last five days
of March. Since April, Edison has resumed full payments to the Coso Partnerships
for current purchase of electricity generated. On June 21, 2001, Edison paid 10%
of their unpaid liabilities to the Coso  Partnerships,  for power generated from
November 2000 through March 26, 2001, amounting to $12,485.

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

<TABLE>
<CAPTION>

                                                                      Six-Months           Six-Months
                                                                         Ended                Ended
                                                                     June 30, 2001        June 30, 2000
<S>                                                                  <C>                    <C>
Navy I Partnership (stand alone)
  Net cash provided by operating activities                          $  11,665             $   4,071
  Net cash provided by (used in) investing activities                   (1,144)                1,777
  Net cash provided by (used in) financing activities                   (8,381)              (10,048)
                                                                       -------               -------
      Net change in cash and cash equivalents                        $   2,140             $  (4,200)
                                                                       =======               =======

BLM Partnership (stand alone)
  Net cash provided by operating activities                          $   9,427             $  10,384
  Net cash provided by (used in) investing activities                   (4,427)                2,406
  Net cash provided by (used in) financing activities                   (5,885)               (5,182)
                                                                       -------               -------
      Net change in cash and cash equivalents                        $    (885)            $   7,608
                                                                       =======               =======

Navy II Partnership (stand alone)
  Net cash provided by operating activities                          $   8,423             $  16,999
  Net cash provided by (used in) investing activities                       94                42,508
  Net cash provided by (used in) financing activities                  (14,762)              (49,616)
                                                                       -------               -------
      Net change in cash and cash equivalents                        $  (6,245)            $   9,891
                                                                       =======               =======

</TABLE>


     The Navy I Partnership's cash flows from operating  activities increased by
$7.6 million for the  six-months  ended June 30,  2001,  as compared to the same
period in 2000, primarily due to increases in trade payables and energy revenues
resulting  from the increase in the average  avoided  cost of energy,  partially
offset by increased  receivables  resulting from Edison's non-payment for energy
delivered.

     Cash used in investing  activities at the Navy I  Partnership  increased by
$2.9 million for the  six-months  ended June 30,  2001,  as compared to the same
period in 2000,  primarily due to the decrease in restricted  cash  requirements
associated with the project loan from Funding Corp.

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

     The BLM  Partnership's  cash flows from operating  activities  decreased by
$1.0 million for the  six-months  ended June 30,  2001,  as compared to the same
period  in 2000,  primarily  due to  increases  in  receivables  resulting  from
Edison's non-payment for energy delivered,  partially offset by increased energy
revenues resulting from the increase in the average avoided cost of energy.

     Cash used in investing activities at the BLM Partnership  increased by $6.8
million for the  six-months  ended June 30, 2001, as compared to the same period
in 2000, primarily due to an increase in capital expenditures.

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

     The Navy II Partnership's cash flows from operating activities decreased by
$8.6 million for the  six-months  ended June 30,  2001,  as compared to the same
period in 2000,  primarily  due to increases in trade  payables and  receivables
resulting from Edison's  non-payment for energy  delivered,  partially offset by
increased  energy  revenues  resulting from the increase in the average  avoided
cost of energy.

     Cash from  investing  activities  at the Navy II  Partnership  increased by
$42.4  million for the  six-months  ended June 30, 2001, as compared to the same
period in 2000,  primarily due to the decrease in restricted  cash  requirements
associated with the project loan from Funding Corp.

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

                                       28

New Accounting Pronouncements

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


PART II.  OTHER INFORMATION


ITEM 1.   Legal Proceedings

Edison Litigation

     The Edison  litigation  has been  resolved as discussed in the 8-K filed on
June 28, 2001.

General

     Except as otherwise  described above,  the Coso  Partnerships are currently
parties to various  minor  items of  litigation,  none of which,  if  determined
adversely,  would  be  material  to  the  financial  condition  and  results  of
operations of the Coso Partnerships, either individually or taken as a whole.


ITEM 2.   Change in Securities and Use of Proceeds

                  None.

ITEM 3.   Defaults Upon Senior Securities

                  None.

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

                  None.

ITEM 5.   Other Information

          Supplemental Condensed Combined Financial Information for the Coso
          Partnerships

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

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

                                       29

<PAGE>


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

<TABLE>
<CAPTION>


                                                                              June 30,            December 31,
                                                                               2001                  2000

<S>                                                                         <C>               <C>
Assets:
   Cash and cash equivalents.......................................        $   12,119             $   17,109
   Restricted cash and investments.................................            45,714                 47,712
   Accounts receivable, net........................................            20,452                    590
   Prepaid expenses and other assets...............................               153                  2,671
   Amounts due from related parties................................             5,041                  6,191
   Property, plant and equipment, net..............................           429,123                439,641
   Power purchase agreement, net...................................            54,858                 57,364
   Investments.....................................................            13,335                 13,485
   Deferred financing costs, net...................................             7,761                  8,564
                                                                              -------                -------

                                                                           $  588,556             $  593,327
                                                                              =======                =======

Liabilities and Partners' Capital:
   Accounts payable and accrued liabilities........................        $   49,448             $   36,260
   Amounts due to related parties..................................            27,804                 23,460
   Project loans...................................................           318,858                330,067
                                                                              -------                -------
                                                                              396,110                389,787
Partners' capital..................................................           192,446                203,540
                                                                              -------                -------

                                                                           $  588,556             $  593,327
                                                                              =======                =======

</TABLE>


See accompanying notes to the unaudited condensed combined financial statements.

                                       30

<PAGE>


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

<TABLE>
<CAPTION>

                                                  Three-Months    Three-Months      Six-Months      Six-Months
                                                     Ended            Ended           Ended           Ended
                                                    June 30,         June 30,        June 30,        June 30,
                                                      2001             2000            2001            2000


<S>                                                <C>            <C>              <C>             <C>
Revenue:
   Energy revenues............................    $   42,198      $   24,671       $  121,570      $   46,903
   Capacity revenues..........................        10,554          10,554           14,271          14,270
   Interest and other income..................         3,156           1,698            4,269           7,865
                                                     -------          ------          -------          ------
          Total revenue.......................        55,908          36,923          140,110          69,038


Operating expenses:
   Plant operating expenses...................         8,535           7,693           14,632          14,409
   Royalty expense............................         6,322           4,515           16,673           7,544
   Provision for doubtful accounts............       (12,589)            ---           66,176             ---
   Depreciation and amortization..............        10,301           9,481           20,499          19,408
                                                     -------          ------          -------          ------
          Total operating expenses............        12,569          21,689          117,980          41,361

          Operating income....................        43,339          15,234           22,130          27,677

   Other expenses:
   Interest expense...........................         7,284           7,702           14,600          15,537
   Amortization on deferred financing.........           403             401              804             803
                                                     -------          ------          -------          ------
          Total other expenses................         7,687           8,103           15,404          16,340



          Net income..........................    $   35,652      $    7,131       $    6,726      $   11,337
                                                     =======          ======          =======          ======



</TABLE>


 See accompanying notes to the unaudited condensed combined financialstatements.

                                       31


<PAGE>





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

<TABLE>
<CAPTION>

                                                                      Six-Months           Six-Months
                                                                        Ended                Ended
                                                                       June 30,             June 30,
                                                                         2001                 2000

    <S>                                                             <C>                  <C>
    Net cash provided by (used in) operating activities...          $   29,515            $  31,454
    Net cash provided by (used in) investing activities...              (5,477)              46,691
    Net cash provided by (used in) financing activities...             (29,028)             (64,846)
                                                                       -------              -------
    Net change in cash and cash equivalents...............          $   (4,990)           $  13,299
                                                                       =======              =======
    Supplemental cash flow disclosure:
         Cash paid for interest...........................          $   14,631            $  15,660
                                                                       =======              =======

</TABLE>



See accompanying notes to the unaudited condensed combined financial statements.

                                       32

<PAGE>





                                COSO PARTNERSHIPS
                    NOTES TO THE UNAUDITED CONDENSED COMBINED
                              FINANCIAL STATEMENTS


(1)      Basis of Presentation

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

(2)      New Accounting Pronouncements

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

                                       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


(b)      Reports on Form 8-K

         1.    The Coso  Partnerships  filed  current  reports on Form 8-K dated
               June 28, 2001  reporting  an  agreement  entered into on June 19,
               2001  between  Edison and the Coso  Partnerships  that  addresses
               renewable energy pricing and payment issues.

         2.    The Coso  Partnerships  filed a second set of current  reports on
               Form 8-K dated June 28,  2001  reporting  the  California  Public
               Utilities Commission's approval of a confidential settlement with
               Edison and the  execution of mutual  releases of  liability  that
               dismissed litigation between the Coso Partnerships and Edison.

                                       34

<PAGE>

                                  EXHIBIT 27.1

                                    Form S-X

                       Commercial and Industrial Companies

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

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

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

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

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

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

CURRENCY                                       CURRENCY OF FINANCIAL DATA:
Is the currency used other than US
Dollars? Use in conjunction with
EXCHANGE RATE tag.
                      Yes  X No
                   ---    ---
PERIOD TYPE                                     - MOS       X  6 - MOS
                                         -- ----           -- ---
                                                X YEAR             YEAR
                                               ---              ---
                                            (for annual report filings)
                                                  OTHER            OTHER
                                              ----             ----
FISCAL YEAR END
(example: DEC-31-1997)                      Dec-31-2000           DEC-31-2001
                                            -----------           -----------
                                            mmm-dd-yyyy           mmm-dd-yyyy
PERIOD START
(example: JAN-01-1997)                      Jan-01-2000           JAN-01-2001
                                            -----------           -----------
                                            mmm-dd-yyyy           mmm-dd-yyyy
PERIOD END
(example: SEP-30-1997)                      Dec-31-2000           JUN-30-2001
                                            -----------           -----------
                                            mmm-dd-yyyy           mmm-dd-yyyy

EXCHANGE RATE                               EXCHANGE RATE:       EXCHANGE RATE:

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

<TABLE>
<CAPTION>
                                         PERIOD TYPE Year            PERIOD TYPE 6 MOS
                                                     ----                        -----
<S>                                                     <C>                         <C>
CASH                                                         0                           0
SECURITIES                                                   0                           0
RECEIVABLES                                            331,353                     320,112
ALLOWANCES                                                   0                           0
INVENTORY                                                    0                           0
CURRENT ASSETDS                                          1,286                       1,254
PP&E                                                         0                           0
DEPRECIATION                                                 0                           0
TOTAL ASSETS                                           331,353                     320,112
CURRENT LIABILITIES                                      1,286                       1,254
BONDS                                                  300,067                     318,858
PREFERRED MANDATORY                                          0                           0
PREFERRED                                                    0                           0
COMMON                                                       0                           0
OTHER SE                                                     0                           0
TOTAL LIABILITY AND EQUITY                             331,353                     320,112
SALES                                                        0                           0
TOTAL REVENUES                                          30,799                      14,598
CGS                                                          0                           0
TOTAL COSTS                                                  0                           0
OTHER EXPENSES                                               0                           0
LOSS PROVISION                                               0                           0
INTEREST EXPENSES                                       30,799                      14,598
INCOME PRETAX                                                0                           0
INCOME TAX                                                   0                           0
INCOME CONTINUING                                            0                           0
DISCONTINUED                                                 0                           0
EXTRAORDINARY                                                0                           0
CHANGES                                                      0                           0
NET INCOME                                                   0                           0
EPS BASIC                                                    0                           0
(Value may contain up to 3 decimal places)
EPS DILUTED                                                  0                           0
(Value may contain up to 3 decimal places)

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


<PAGE>
                                  EXHIBIT 27.2

                                    Form S-X

                       Commercial and Industrial Companies

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

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

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

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

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

CURRENCY                                       CURRENCY OF FINANCIAL DATA:
Is the currency used other than US
Dollars? Use in conjunction with
EXCHANGE RATE tag.
                      Yes  X No
                   ---    ---
PERIOD TYPE                                     - MOS    X    6 - MOS
                                         -- ----         -- ----
                                                X YEAR            YEAR
                                               ---             ---
                                            (for annual report filings)
                                                  OTHER           OTHER
                                              ----            ----
FISCAL YEAR END
(example: DEC-31-1997)                      Dec-31-2000          DEC-31-2001
                                            -----------          -----------
                                            mmm-dd-yyyy          mmm-dd-yyyy
PERIOD START
(example: JAN-01-1997)                      Jan-01-2000          JAN-01-2001
                                            -----------          -----------
                                            mmm-dd-yyyy          mmm-dd-yyyy
PERIOD END
(example: SEP-30-1997)                      Dec-31-2000          JUN-30-2001
                                            -----------          -----------
                                            mmm-dd-yyyy          mmm-dd-yyyy

EXCHANGE RATE                               EXCHANGE RATE:       EXCHANGE RATE:

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

<TABLE>
<CAPTION>
                                         PERIOD TYPE Year            PERIOD TYPE 6 MOS
                                                     ----                        -----
<S>                                                     <C>                         <C>
CASH                                                     3,506                       5,646
SECURITIES                                              22,996                      23,572
RECEIVABLES                                             17,715                      51,483
ALLOWANCES                                              15,234                      36,847
INVENTORY                                                    0                           0
CURRENT ASSETS                                           6,796                      20,333
PP&E                                                   228,718                     229,573
DEPRECIATION                                            79,642                      84,395
TOTAL ASSETS                                           198,409                     207,769
CURRENT LIABILITIES                                     16,554                      25,855
BONDS                                                  134,984                     129,893
PREFERRED MANDATORY                                          0                           0
PREFERRED                                                    0                           0
COMMON                                                       0                           0
OTHER SE                                                     0                           0
TOTAL LIABILITY AND EQUITY                             198,409                     207,769
SALES                                                   67,653                      51,458
TOTAL REVENUES                                          70,159                      52,636
CGS                                                          0                           0
TOTAL COSTS                                                  0                           0
OTHER EXPENSES                                          44,358                      37,981
LOSS PROVISION                                               0                           0
INTEREST EXPENSES                                       13,013                       6,215
INCOME PRETAX                                                0                           0
INCOME TAX                                                   0                           0
INCOME CONTINUING                                            0                           0
DISCONTINUED                                                 0                           0
EXTRAORDINARY                                                0                           0
CHANGES                                                      0                           0
NET INCOME                                              12,788                       8,440
EPS BASIC                                                    0                           0
(Value may contain up to 3 decimal places)
EPS DILUTED                                                  0                           0
(Value may contain up to 3 decimal places)

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


<PAGE>

                                  EXHIBIT 27.3

                                    Form S-X

                       Commercial and Industrial Companies

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

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

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

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

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

CURRENCY                                       CURRENCY OF FINANCIAL DATA:
Is the currency used other than US
Dollars? Use in conjunction with
EXCHANGE RATE tag.
                      Yes  X No
                   ---    ---
PERIOD TYPE                                     - MOS     X   6  - MOS
                                         -- ----         -- ----
                                                X YEAR            YEAR
                                               ---             ---
                                            (for annual report filings)
                                                  OTHER           OTHER
                                              ----            ----
FISCAL YEAR END
(example: DEC-31-1997)                      Dec-31-2000          DEC-31-2001
                                            -----------          -----------
                                            mmm-dd-yyyy          mmm-dd-yyyy
PERIOD START
(example: JAN-01-1997)                      Jan-01-2000          JAN-01-2001
                                            -----------          -----------
                                            mmm-dd-yyyy          mmm-dd-yyyy
PERIOD END
(example: SEP-30-1997)                      Dec-31-2000          JUN-30-2001
                                            -----------          -----------
                                            mmm-dd-yyyy          mmm-dd-yyyy

EXCHANGE RATE                               EXCHANGE RATE:       EXCHANGE RATE:

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

<TABLE>
<CAPTION>
                                         PERIOD TYPE Year            PERIOD TYPE 6 MOS
                                                     ----                        -----
<S>                                                     <C>                         <C>
CASH                                                     5,862                       4,977
SECURITIES                                              14,502                      12,417
RECEIVABLES                                             15,684                      44,994
ALLOWANCES                                              15,279                      37,109
INVENTORY                                                    0                           0
CURRENT ASSETS                                           7,280                      12,914
PP&E                                                   238,244                     244,830
DEPRECIATION                                            84,626                      92,039
TOTAL ASSETS                                           201,312                     203,196
CURRENT LIABILITIES                                     31,160                      35,731
BONDS                                                  100,907                      99,040
PREFERRED MANDATORY                                          0                           0
PREFERRED                                                    0                           0
COMMON                                                       0                           0
OTHER SE                                                     0                           0
TOTAL LIABILITY AND EQUITY                             201,312                     203,196
SALES                                                   57,453                      44,967
TOTAL REVENUES                                          65,578                      46,804
CGS                                                          0                           0
TOTAL COSTS                                                  0                           0
OTHER EXPENSES                                          46,693                      38,939
LOSS PROVISION                                               0                           0
INTEREST EXPENSES                                        9,492                       4,667
INCOME PRETAX                                                0                           0
INCOME TAX                                                   0                           0
INCOME CONTINUING                                            0                           0
DISCONTINUED                                                 0                           0
EXTRAORDINARY                                                0                           0
CHANGES                                                      0                           0
NET INCOME                                               9,393                       3,198
(Value may contain up to 3 decimal places)
EPS DILUTED                                                  0                           0
(Value may contain up to 3 decimal places)

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



<PAGE>

                                  EXHIBIT 27.4

                                    Form S-X

                       Commercial and Industrial Companies

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

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

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

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

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

CURRENCY                                       CURRENCY OF FINANCIAL DATA:
Is the currency used other than US
Dollars? Use in conjunction with
EXCHANGE RATE tag.
                      Yes  X No
                   ---    ---
PERIOD TYPE                                     - MOS     X   6  - MOS
                                         -- ----         -- ----
                                                X YEAR            YEAR
                                               ---             ---
                                            (for annual report filings)
                                                  OTHER           OTHER
                                              ----            ----
FISCAL YEAR END
(example: DEC-31-1997)                      Dec-31-2000          DEC-31-2001
                                            -----------          -----------
                                            mmm-dd-yyyy          mmm-dd-yyyy
PERIOD START
(example: JAN-01-1997)                      Jan-01-2000          JAN-01-2001
                                            -----------          -----------
                                            mmm-dd-yyyy          mmm-dd-yyyy
PERIOD END
(example: SEP-30-1997)                      Dec-31-2000          JUN-30-2001
                                            -----------          -----------
                                            mmm-dd-yyyy          mmm-dd-yyyy

EXCHANGE RATE                               EXCHANGE RATE:       EXCHANGE RATE:

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

<PAGE>

<TABLE>
<CAPTION>
                                         PERIOD TYPE Year            PERIOD TYPE 6 MOS
                                                     ----                        -----
<S>                                                     <C>                         <C>
CASH                                                     7,741                       1,496
SECURITIES                                              10,214                       9,725
RECEIVABLES                                             21,294                      49,546
ALLOWANCES                                              15,312                      38,045
INVENTORY                                                    0                           0
CURRENT ASSETS                                          14,572                      13,047
PP&E                                                   209,605                     210,250
DEPRECIATION                                            72,658                      79,096
TOTAL ASSETS                                           195,693                     186,120
CURRENT LIABILITIES                                     14,094                      24,195
BONDS                                                  94,176                       89,925
PREFERRED MANDATORY                                          0                           0
PREFERRED                                                    0                           0
COMMON                                                       0                           0
OTHER SE                                                     0                           0
TOTAL LIABILITY AND EQUITY                             195,639                     186,120
SALES                                                   58,366                      39,416
TOTAL REVENUES                                          61,234                      40,670
CGS                                                          0                           0
TOTAL COSTS                                                  0                           0
OTHER EXPENSES                                          49,895                      41,060
LOSS PROVISION                                               0                           0
INTEREST EXPENSES                                        9,899                       4,522
INCOME PRETAX                                                0                           0
INCOME TAX                                                   0                           0
INCOME CONTINUING                                            0                           0
DISCONTINUED                                                 0                           0
EXTRAORDINARY                                                0                           0
CHANGES                                                      0                           0
NET INCOME                                               1,440                      (4,912)
EPS BASIC                                                    0                           0
(Value may contain up to 3 decimal places)
EPS DILUTED                                                  0                           0
(Value may contain up to 3 decimal places)

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



<PAGE>



                                   SIGNATURES


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


Date:  August 13, 2001              CAITHNESS COSO FUNDING CORP.,
                                    a Delaware corporation

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


                                    COSO FINANCE PARTNERS
                                    a California general partnership

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

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


                                    COSO ENERGY DEVELOPERS
                                    a California general partnership

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

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


                                    COSO POWER DEVELOPERS
                                    a California general partnership

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

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