EXHIBIT 99.2

                          CAITHNESS COSO FUNDING CORP.

                         NOTICE OF GUARANTEED DELIVERY

                                 For Tender of
                  6.80% Series A Senior Secured Notes Due 2001
                  9.05% Series A Senior Secured Notes Due 2009

     This Notice of Guaranteed Delivery or one substantially equivalent hereto
must be used to accept the Exchange Offer (as defined below) if (i) certificates
for the Company's (as defined below) 6.80% Series A Senior Secured Notes due
2001 and/or 9.05% Series A Senior Secured Notes due 2009 (collectively, the
"Series A Notes") are not immediately available, (ii) Series A Notes, the Letter
of Transmittal and any other documents required by the Letter of Transmittal
cannot be delivered to U.S. Bank Trust National Association (the "Exchange
Agent") on or prior to the Expiration Date (as defined in the Prospectus
referred to below) or (iii) the procedures for book-entry transfer cannot be
completed on a timely basis.  This Notice of Guaranteed Delivery may be
delivered by hand or sent by facsimile transmission, overnight courier, telex,
telegram or mail to the Exchange Agent.  See "The Exchange Offer--Guaranteed
Delivery Procedures" in the Prospectus dated October 7, 1999 (which, together
with the related Letter of Transmittal, constitutes the "Exchange Offer") of
Caithness Coso Funding Corp., a Delaware corporation (the "Company").



                             U.S. Bank Trust National Association
                                                        
 By Registered or Certified Mail:           By Hand:          By Overnight Delivery or Courier:
     U.S. Bank Trust National            U.S. Bank Trust          U.S. Bank Trust National
            Association               National Association               Association
       180 East Fifth Street          180 East Fifth Street         180 East Fifth Street
        St. Paul, MN  55101            St. Paul, MN  55101           St. Paul, MN  55101

                                          Attention:
                                  4th Floor Bond Drop Window

                                Facsimile Transmission Number:
                               (For Eligible Institutions Only)
                                        (651) 244-1537

                                     Confirm by Telephone:
                                   Bondholder Communications
                                        (800) 934-6802


     DELIVERY OF THIS NOTICE OF GUARANTEED DELIVERY TO AN ADDRESS OTHER THAN AS
SET FORTH ABOVE OR TRANSMISSION OF THIS NOTICE OF GUARANTEED DELIVERY VIA A
FACSIMILE TRANSMISSION TO A NUMBER OTHER THAN AS SET FORTH ABOVE WILL NOT
CONSTITUTE A VALID DELIVERY.

     THIS NOTICE OF GUARANTEED DELIVERY IS NOT TO BE USED TO GUARANTEE
SIGNATURES.  IF A SIGNATURE ON A LETTER OF TRANSMITTAL IS REQUIRED TO BE
GUARANTEED BY AN "ELIGIBLE INSTITUTION" UNDER THE INSTRUCTIONS THERETO, SUCH
SIGNATURE GUARANTEE MUST APPEAR IN THE APPLICABLE SPACE PROVIDED ON THE LETTER
OF TRANSMITTAL.

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THE EXCHANGE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 5:00 P.M., NEW YORK
 CITY TIME, ON MONDAY, NOVEMBER 8, 1999, UNLESS THE OFFER IS EXTENDED.
- ------------------------------------------------------------------------------


Ladies and Gentlemen:

     The undersigned hereby tenders to the Company, upon the terms and subject
to the conditions set forth in the Prospectus dated October 7, 1999
("Prospectus") and in the related Letter of Transmittal (which, together with
any amendments or supplements thereto, collectively constitute the "Exchange
Offer"), receipt of each of which is hereby acknowledged, the principal amount
of Series A Notes indicated below pursuant to the guaranteed delivery procedures
set forth in the Prospectus under the caption "The Exchange Offer--Guaranteed
Delivery Procedures."



                                                      
Signature(s) ________________________________            Address(es) __________________________________
                                                         ______________________________________________
Name(s) of Eligible Holders                                                                   Zip Code
____________________________________________             Area Code and Tel. No(s). ____________________
____________________________________________
               Please Type or Print                      (Check box if Series A Notes will be tendered by
                                                          book-entry transfer)
Principal Amount of Series A Notes Tendered for
 Exchange $ ________________________                      [_]  The Depository Trust Company
Series A Note Certificate No(s). (If available)
____________________________________________              Account Number _______________________________
____________________________________________
____________________________________________
Dated ________________________________, 1999



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                   THE FOLLOWING GUARANTEE MUST BE COMPLETED

                             GUARANTEE OF DELIVERY
                    (NOT TO BE USED FOR SIGNATURE GUARANTEE)

     The undersigned, a firm which is a member of a registered national
securities exchange or a member of the National Association of Securities
Dealers, Inc. or a commercial bank or trust company having an office or
correspondent in the United States, hereby guarantees to deliver to the Exchange
Agent, at one of its addresses set forth above, either the certificates for all
physically tendered Series A Notes, in proper form for transfer, or confirmation
of the book-entry transfer of such Series A Notes to the Exchange Agent's
account at The Depository Trust Company ("DTC"), pursuant to the procedures for
book-entry transfer set forth in the Prospectus, in either case together with
any other documents required by the Letter of Transmittal, within three New
York Stock Exchange trading days after the date of execution of this Notice of
Guaranteed Delivery.

     The undersigned acknowledges that it must deliver the Series A Notes
tendered hereby to the Exchange Agent within the time period set forth above and
that failure to do so could result in a financial loss to the undersigned.



X
- -------------------------------------              -----------------------
       Authorized Signature                                  Date


Name:
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                                       (Please Print)

Capacity:    -----------------------------------------------------------------
                                    (Include Full Title)

Name of Firm:
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Address:
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             -----------------------------------------------------------------
                                     (Include Zip Code)

Area Code and Telephone Number:
                               -----------------------------------------------

NOTE:  DO NOT SEND SERIES A NOTES WITH THIS NOTICE OF GUARANTEED DELIVERY.
       ACTUAL SURRENDER OF SERIES A NOTES MUST BE MADE PURSUANT TO, AND BE
       ACCOMPANIED BY, A PROPERLY COMPLETED AND FULLY EXECUTED LETTER OF
       TRANSMITTAL AND ANY OTHER REQUIRED DOCUMENTS.

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