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
----------------------------------------------------------------
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
CAITHNESS COSO FUNDING CORP.
UNAUDITED CONDENSED BALANCE SHEETS
(Dollars in thousands)
June 30, December 31,
2001 2000
(Note)
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
======= =======
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
CAITHNESS COSO FUNDING CORP.
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
(Dollars in thousands)
Three-Months Three-Months Six-Months Six-Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
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....... $ --- $ --- $ --- $ ---
====== ====== ======= =======
See accompanying notes to the unaudited condensed financial statements
5
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
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
COSO FINANCE PARTNERS
UNAUDITED CONDENSED BALANCE SHEETS
(Dollars in thousands)
June 30, December 31,
2001 2000
(Note)
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
======= =======
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
COSO FINANCE PARTNERS
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
(Dollars in thousands)
Three-Months Three-Months Six-Months Six-Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2001 2000 2001 2000
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
====== ====== ====== ======
See accompanying notes to the unaudited condensed financial statements
9
COSO FINANCE PARTNERS
UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
Six-Months Six-Months
Ended Ended
June 30, June 30,
2001 2000
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
====== =======
See accompanying notes to the unaudited condensed financial statements
10
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
COSO ENERGY DEVELOPERS
UNAUDITED CONDENSED BALANCE SHEETS
(Dollars in thousands)
June 30, December 31,
2001 2000
(Note)
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
======= =======
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
COSO ENERGY DEVELOPERS
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
(Dollars in thousands)
Three-Months Three-Months Six-Months Six-Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2001 2000 2001 2000
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
====== ====== ====== ======
See accompanying notes to the unaudited condensed financial statements
13
COSO ENERGY DEVELOPERS
UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
Six-Months Six-Months
Ended Ended
June 30, June 30,
2001 2000
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
====== ======
See accompanying notes to the unaudited condensed financial statements
14
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
COSO POWER DEVELOPERS
UNAUDITED CONDENSED BALANCE SHEETS
(Dollars in thousands)
June 30, December 31,
2001 2000
(Note)
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
======= =======
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
COSO POWER DEVELOPERS
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
(Dollars in thousands)
Three-Months Three-Months Six-Months Six-Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2001 2000 2001 2000
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
======= ====== ====== ======
See accompanying notes to the unaudited condensed financial statements
17
COSO POWER DEVELOPERS
UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
Six-Months Six-Months
Ended Ended
June 30, June 30,
2001 2000
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
======= =======
See accompanying notes to the unaudited condensed financial statements
18
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
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:
Three-Months Ended Six-Months Ended
June 30 June 30
2001 2000 2001 2000
---- ---- ---- ----
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
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
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
- --------- - --------- - --------- - ---------
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
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
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
- --------- - --------- - --------- - ---------
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
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
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
- --------- - --------- - --------- - ---------
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
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
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
- --------- - --------- - --------- - ---------
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
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
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
- --------- - --------- - --------- - ---------
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
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
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
- --------- - --------- - --------- - ---------
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
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.
Six-Months Six-Months
Ended Ended
June 30, 2001 June 30, 2000
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
======= =======
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
COSO PARTNERSHIPS
UNAUDITED CONDENSED COMBINED BALANCE SHEETS
(Dollars in thousands)
June 30, December 31,
2001 2000
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
======= =======
See accompanying notes to the unaudited condensed combined financial statements.
30
COSO PARTNERSHIPS
UNAUDITED CONDENSED COMBINED STATEMENTS OF OPERATIONS
(Dollars in thousands)
Three-Months Three-Months Six-Months Six-Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2001 2000 2001 2000
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
======= ====== ======= ======
See accompanying notes to the unaudited condensed combined financialstatements.
31
COSO PARTNERSHIPS
UNAUDITED CONDENSED COMBINED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
Six-Months Six-Months
Ended Ended
June 30, June 30,
2001 2000
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
======= =======
See accompanying notes to the unaudited condensed combined financial statements.
32
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
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
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
--- ---
PERIOD TYPE Year PERIOD TYPE 6 MOS
---- -----
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)
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
--- ---
PERIOD TYPE Year PERIOD TYPE 6 MOS
---- -----
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)
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
--- ---
PERIOD TYPE Year PERIOD TYPE 6 MOS
---- -----
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)
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
--- ---
PERIOD TYPE Year PERIOD TYPE 6 MOS
---- -----
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)
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)