+ 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 September 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 November 7, 2001
------------------------------------------------------------------
CAITHNESS COSO FUNDING CORP.
Form 10-Q
For the Quarter Ended September 30, 2001
PART I. FINANCIAL INFORMATION Page No.
ITEM 1. Financial Statements
Caithness Coso Funding Corp.
Unaudited condensed balance sheets at September 30, 2001 and
December 31, 2000 4
Unaudited condensed statements of operations for the three-months
ended September 30, 2001, the three-months ended September 30, 2000,
the nine-months ended September 30, 2001, and the nine-months ended
September 30, 2000 5
Unaudited condensed statements of cash flows for the nine-months
ended September 30, 2001 and the nine-months ended September 30, 2000 6
Notes to the unaudited condensed financial statements 7
Coso Finance Partners
Unaudited condensed balance sheets at September 30, 2001 and
December 31, 2000 8
Unaudited condensed statements of operations for the three-months
ended September 30, 2001, the three-months ended September 30, 2000,
the nine-months ended September 30, 2001, and the nine-months ended
September 30, 2000 9
Unaudited condensed statements of cash flows for the nine-months
ended September 30, 2001 and the nine-months ended September 30, 2000 10
Notes to the unaudited condensed financial statements 11
Coso Energy Developers
Unaudited condensed balance sheets at September 30, 2001 and
December 31, 2000 12
Unaudited condensed statements of operations for the three-months
ended September 30, 2001, the three-months ended September 30, 2000,
the nine-months ended September 30, 2001, and the nine-months ended
September 30, 2000 13
Unaudited condensed statements of cash flows for the nine-months
ended September 30, 2001 and the nine-months ended September 30, 2000 14
Notes to the unaudited condensed financial statements 15
2
Coso Power Developers
Unaudited condensed balance sheets at September 30, 2001 and
December 31, 2000 16
Unaudited condensed statements of operations for the three-months
months ended September 30, 2001, the three-months ended September 30,
2000, the nine-months ended September 30, 2001, and the nine-months
ended September 30, 2000 17
Unaudited condensed statements of cash flows for the nine-months
ended September 30, 2001 and the nine-months ended September 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 30
ITEM 2. Change in Securities and Use of Proceeds 30
ITEM 3. Defaults upon Senior Securities 30
ITEM 4. Submission of Matters to a Vote of Security Holders 30
ITEM 5. Other Information 31
Supplemental condensed combined financial information for the
Coso Partnerships
Unaudited condensed combined balance sheets at September 30, 2001
and December 31, 2000 32
Unaudited condensed combined statements of operations for the three-
months ended September 30, 2001, the three-months ended September
30, 2000, the nine-months ended September 30, 2001, and the nine-
months ended September 30, 2000 33
Unaudited condensed combined statements of cash flows for the nine-
months ended September 30, 2001 and the nine-months ended
September 30, 2000 34
Notes to the unaudited condensed combined financial statements 35
ITEM 6. Exhibits and Reports on Form 8-K 36
3
CAITHNESS COSO FUNDING CORP.
UNAUDITED CONDENSED BALANCE SHEETS
(Dollars in thousands)
September 30, December 31,
2001 2000
(Note)
Assets:
Accrued interest receivable....................... $ 8,359 $ 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
------ ------
$ 327,217 $ 331,353
======= =======
Liabilities and Stockholders' Equity:
Senior secured notes:
Accrued interest payable....................... $ 8,359 $ 1,286
6.80% notes due 2001........................... 15,858 27,067
9.05% notes due 2009........................... 303,000 303,000
------- -------
327,217 331,353
Stockholders' equity................................. --- ---
------- -------
$ 327,217 $ 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 accounting
principles generally accepted in the United States of America 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 Nine-Months Nine-Months
Ended Ended Ended Ended
September 30, September 30, September 30, September 30,
2001 2000 2001 2000
Interest income.......... $ 7,105 $ 7,671 $ 21,703 $ 24,600
Interest expense......... (7,105) (7,671) (21,703) (24,600)
------ ----- ------ ------
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)
Nine-Months Nine-Months
Ended Ended
September 30, September 30,
2001 2000
Cash flows from investing activities....... $ 4,136 $ 57,298
Cash flows from financing activities....... (4,136) (57,298)
----- ------
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 accounting principles generally accepted in the United States of
America for interim financial information. Accordingly, certain information and
footnote disclosures normally included in financial statements prepared in
accordance with accounting principles generally accepted in the United States of
America have been condensed or omitted pursuant to such rules. Management
believes that the disclosures are adequate to make the information presented not
misleading when read in conjunction with the financial statements and the notes
thereto in the audited financial statements for the year ended December 31,
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 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)
September 30, December 31,
2001 2000
(Note)
Assets:
Cash and cash equivalents.................................................. $ 13,719 $ 3,506
Restricted cash and investments............................................ 24,414 22,996
Accounts receivable, net................................................... 5,178 521
Prepaid expenses & other assets............................................ 942 809
Amounts due from related parties........................................... 7,115 1,960
Property, plant & equipment, net........................................... 142,697 149,076
Power purchase agreement, net.............................................. 11,380 12,240
Investment in China Lake Plant Services, Inc............................... 4,046 4,072
Deferred financing costs, net.............................................. 2,840 3,229
------- -------
$ 212,331 $ 198,409
======= =======
Liabilities and Partners' Capital:
Accounts payable and accrued liabilities................................... $ 24,100 $ 15,857
Amounts due to related parties............................................. 4,217 697
Project loans.............................................................. 129,893 134,984
------- -------
158,210 151,538
Partners' capital.......................................................... 54,121 46,871
------- -------
$ 212,331 $ 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 accounting principles
generally accepted in the United States of America 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 Nine-Months Nine-Months
Ended Ended Ended Ended
September 30, September 30, September 30, September 30,
2001 2000 2001 2000
Revenue:
Energy revenues.............................. $ 7,666 $ 14,322 $ 54,303 $ 31,505
Capacity revenues............................ 8,190 8,190 13,011 13,011
Interest and other income.................... 977 417 2,155 1,199
------ ------ ------ ------
Total revenue......................... 16,833 22,929 69,469 45,715
Operating expenses:
Plant operating expenses..................... 2,055 2,167 6,629 6,513
Royalty expense.............................. 7,005 4,484 13,759 7,689
Provision for doubtful accounts.............. --- --- 21,613 ---
Depreciation and amortization................ 2,647 2,497 7,687 7,085
------ ------ ------ ------
Total operating expenses.............. 11,707 9,148 49,688 21,287
Operating income...................... 5,126 13,781 19,781 24,428
Other expenses:
Interest expense............................ 2,896 3,094 8,851 9,387
Amortization on deferred financing.......... 130 131 390 390
------ ------ ------ ------
Total other expenses.................. 3,026 3,225 9,241 9,777
Net income............................ $ 2,100 $ 10,556 $ 10,540 $ 14,651
====== ====== ====== ======
See accompanying notes to the unaudited condensed financial statements
9
COSO FINANCE PARTNERS
UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
Nine-Months Nine-Months
Ended Ended
September 30, September 30,
2001 2000
Net cash provided by operating activities.................... $ 20,461 $ 14,752
Net cash provided by (used in) investing activities.......... (1,867) 614
Net cash provided by (used in) financing activities.......... (8,381) (10,048)
------ ------
Net change in cash and cash equivalents...................... $ 10,213 $ 5,318
====== ======
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 accounting principles generally accepted in the
United States of America for interim financial information. Accordingly, certain
information and footnote disclosures normally included in financial statements
prepared in accordance with accounting principles generally accepted in the
United States of America have been condensed or omitted pursuant to such rules.
Management believes that the disclosures are adequate to make the information
presented not misleading when read in conjunction with the financial statements
and the notes thereto in the audited financial statements for the year ended
December 31, 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 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)
September 30, December 31,
2001 2000
(Note)
Assets:
Cash and cash equivalents.............................................. $ 18,216 $ 5,862
Restricted cash and investments........................................ 8,160 14,502
Accounts receivable, net............................................... 4,239 40
Prepaid expenses and other assets...................................... 1,226 1,013
Amounts due from related parties....................................... 1,200 365
Property, plant and equipment, net..................................... 152,055 153,618
Power purchase agreement, net.......................................... 18,705 19,510
Investment in Coso Transmission Line Partners.......................... 2,874 2,871
Investment in China Lake Plant Services, Inc........................... 871 1,051
Deferred financing costs, net.......................................... 2,242 2,480
------- -------
$ 209,788 $ 201,312
======= =======
Liabilities and Partners' Capital:
Accounts payable and accrued liabilities............................... $ 8,871 $ 6,839
Amounts due to related parties......................................... 28,021 24,321
Project loans.......................................................... 99,040 100,907
------- -------
135,932 132,067
Partners' capital......................................................... 73,856 69,245
------- -------
$ 209,788 $ 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 accounting
principles generally accepted in the United States of America 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 Nine-Months Nine-Months
Ended Ended Ended Ended
September 30, September 30, September 30, September 30,
2001 2000 2001 2000
Revenue:
Energy revenues........................... $ 6,039 $ 11,828 $ 46,294 $ 25,559
Capacity revenues......................... 8,016 8,017 12,728 12,728
Interest and other income................. 1,040 466 2,877 6,147
------ ------ ------ ------
Total revenue...................... 15,095 20,311 61,899 44,434
Operating expenses:
Plant operating expenses.................. 2,384 2,605 7,592 8,022
Royalty expense........................... 967 1,813 4,993 2,391
Provisions for doubtful accounts.......... --- --- 21,830 ---
Depreciation and amortization............. 4,009 4,013 11,884 11,427
------ ------ ------ ------
Total operating expenses........... 7,360 8,431 46,299 21,840
Operating income................... 7,735 11,880 15,600 22,594
Other expenses:
Interest expense......................... 2,225 2,287 6,733 6,870
Amortization of deferred financing....... 79 79 238 238
------ ------ ------ ------
Total other expenses............... 2,304 2,366 6,971 7,108
Net income........................ $ 5,431 $ 9,514 $ 8,629 $ 15,486
====== ====== ====== ======
See accompanying notes to the unaudited condensed financial statements
13
COSO ENERGY DEVELOPERS
UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
Nine-Months Nine-Months
Ended Ended
September 30, September 30,
2001 2000
Net cash provided by operating activities.................... $ 21,413 $ 19,739
Net cash provided by (used in) investing activities.......... (3,174) 1,895
Net cash provided by (used in) financing activities.......... (5,885) (5,182)
------ ------
Net change in cash and cash equivalents...................... $ 12,354 $ 16,452
====== ======
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 accounting principles generally accepted in the United States of
America for interim financial information. Accordingly, certain information and
footnote disclosures normally included in financial statements prepared in
accordance with accounting principles generally accepted in the United States of
America have been condensed or omitted pursuant to such rules. Management
believes that the disclosures are adequate to make the information presented not
misleading when read in conjunction with the financial statements and the notes
thereto in the audited financial statements for the year ended December 31,
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 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)
September 30, December 31,
2001 2000
(Note)
Assets:
Cash and cash equivalents.............................................. $ 11,346 $ 7,741
Restricted cash and investments........................................ 10,728 10,214
Accounts receivable, net............................................... 1,982 29
Prepaid expenses and other assets...................................... 948 849
Amounts due from related parties....................................... 5,633 5,953
Property, plant and equipment, net..................................... 127,898 136,947
Power purchase agreement, net.......................................... 23,519 25,614
Investment in Coso Transmission Line Partners.......................... 3,531 3,528
Investment in China Lake Plant Services, Inc........................... 1,954 1,963
Deferred financing costs, net.......................................... 2,278 2,855
------- -------
$ 189,817 $ 195,693
======= =======
Liabilities and Partners' Capital:
Accounts payable and accrued liabilities............................... $ 16,211 $ 12,278
Amounts due to related parties......................................... 8,488 1,816
Project loans.......................................................... 89,925 94,176
------- -------
114,624 108,270
Partners' capital...................................................... 75,193 87,423
------- -------
$ 189,817 $ 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 accounting principles
generally accepted in the United States of America 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 Nine-Months Nine-Months
Ended Ended Ended Ended
September 30, September 30, September 30, September 30,
2001 2000 2001 2000
Revenue:
Energy revenues........................ $ 5,006 $ 11,600 $ 39,684 $ 27,589
Capacity revenues...................... 8,047 8,047 12,785 12,785
Interest and other income.............. 881 560 2,135 1,962
----- ------ ------ ------
Total revenue................... 13,934 20,207 54,604 42,336
Operating expenses:
Plant operating expenses............... 2,360 2,230 7,210 6,876
Royalty expense........................ 2,316 3,267 8,209 7,028
Provision for doubtful accounts........ --- --- 22,733 ---
Depreciation and amortization.......... 3,870 3,883 11,454 11,289
----- ------ ------ ------
Total operating expenses........ 8,546 9,380 49,606 25,193
Operating income................ 5,388 10,827 4,998 17,143
Other expenses:
Interest expense....................... 2,003 2,286 6,140 6,947
Amortization on deferred financing..... 192 192 577 577
----- ------ ------ -------
Total other expenses............ 2,195 2,478 6,717 7,524
Net income (loss)............... $ 3,193 $ 8,349 $ (1,719) $ 9,619
===== ====== ====== ======
See accompanying notes to the unaudited condensed financial statements
17
COSO POWER DEVELOPERS
UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
Nine-Months Nine-Months
Ended Ended
September 30, September 30,
2001 2000
Net cash provided by operating activities.................... $ 19,184 $ 26,052
Net cash provided by (used in) investing activities.......... (817) 37,714
Net cash provided by (used in) financing activities.......... (14,762) (49,616)
------ ------
Net change in cash and cash equivalents...................... $ 3,605 $ 14,150
====== ======
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 accounting principles generally accepted in the United States of
America for interim financial information. Accordingly, certain information and
footnote disclosures normally included in financial statements prepared in
accordance with accounting principles generally accepted in the United States of
America have been condensed or omitted pursuant to such rules. Management
believes that the disclosures are adequate to make the information presented not
misleading when read in conjunction with the financial statements and the notes
thereto in the audited financial statements for the year ended December 31,
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 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 three months ended September 30, 2001, Edison's average avoided
cost of energy paid to the Coso Partnerships was 3.6 cents per kWh, as compared
to 6.2 cents per kWh for the three months ended September 30, 2000. On June 19,
2001, Edison entered into an agreement with the Coso Partnerships that would
establish an average short run avoided cost of 5.37 cents/kWh for energy sales
to Edison for five years. The agreement requires the approval by the California
legislature, which is now not expected to be received. Subsequent to that
agreement with the Coso Partnerships, Edison entered into a settlement agreement
with the CPUC on October 2, 2001 whereby Edison will recover in retail electric
rates their historical shortfall in electricity purchase costs with interest by
December 31, 2005. That settlement which was approved in federal court on
October 5, 2001, was stayed, by an appeals court on October 30, 2001 so that
certain intervenors can provide opposition briefs to the court. The Coso
Partnerships and Edison are now in discussion regarding the implementation of
average short run avoided cost of 5.37 cents/kWh for the five year period in
light of the developments that occurred after the June 19, 2001 agreement was
reached. There can be no assurances as to the ultimate outcome of these
discussions.
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. This
formula is largely based upon the tariff rates charged by Edison, which have
recently been increased by the CPUC. Negotiations with the U.S. Navy are
continuing to re-adjust the formula to reflect recent activity in the local
energy market. 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, which are not material at various rates.
21
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 million of 6.80% senior secured
notes due in 2001 and $303 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 a depositary agreement with the trustee for the notes, 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.
Periodic increases in natural gas prices and imbalances between supply and
demand, among other factors, have at times led to significant increases in
wholesale electricity prices in California. During those periods, Edison had
fixed tariffs with their retail customers that were significantly below the
wholesale prices it 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. Subsequently, pursuant to a
California Public Utilities Commission (CPUC) order, Edison resumed making
payments to the Coso Partnerships beginning with power generated on March 27,
2001. Edison also made a payment equal to 10% of the unpaid balance for power
generated from November 1, 2000 to March 26, 2001, and continues to pay interest
on the outstanding amount at 7% per annum. That payment was made pursuant to the
June 19, 2001 agreement between Edison and the Coso Partnerships described
above. Subsequent to that agreement with the Coso Partnerships, Edison entered
into the settlement agreement discussed above. The Coso Partnerships and Edison
are now in discussions regarding the timing and amounts of payments to be made
to the Coso Partnerships in light of the developments that occurred after June
19, 2001 agreement was reached. There can be no assurances as to the ultimate
outcome of these discussions.
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.
22
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 Nine-Months
Ended Ended
September 30 September 30
2001 2000 2001 2000
---- ---- ---- ----
Navy I Partnership (stand alone)
Operating capacity factor 110.1% 113.0% 107.9% 111.9%
Capacity (MW) (average) 88.10 90.39 86.29 89.49
kWh produced (000s) 194,525 199,573 565,345 588,479
BLM Partnership (stand alone)
Operating capacity factor 99.3% 111.7% 103.2% 108.8%
Capacity (MW) (average) 79.45 89.39 82.55 87.02
kWh produced (000s) 175,417 197,369 540,837 572,251
Navy II Partnership (stand alone)
Operating capacity factor 102.0% 112.3% 103.5% 110.8%
Capacity (MW) (average) 81.64 89.86 82.83 88.66
kWh produced (000s) 180,257 198,402 542,677 583,061
The BLM Partnership's energy production was 175.4 million kWh and 540.8
million kWh for the three and nine-months ended September 30, 2001,
respectively, as compared to 197.4 million kWh and 572.3 million kWh for the
same periods in 2000, decreases of 11.1% and 5.5%, respectively. The Navy II
Partnership's energy production was 180.3 million kWh and 542.7 million kWh for
the three and nine-months ended September 30, 2001, respectively, as compared to
198.4 million kWh and 583.1 million kWh for the same periods in 2000, decreases
of 9.1% and 6.9%, respectively. The decreases in energy production were
primarily due to the deferment of certain capital and maintenance 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 nine-months ended September 30, 2001 and
2000
The following discusses the results of operations of the Coso Partnerships
for the three and nine-months ending September 30, 2001 and 2000 (dollar amounts
in tables are in thousands, except per kWh data):
23
Revenue
Three-Months Three-Months Nine-Months Nine-Months
Ended Ended Ended Ended
September 30, September 30, September 30, September 30,
2001 2000 2001 2000
$ Cents/kWh $ Cents/kWh $ Cents/kWh $ Cents/kWh
- --------- - --------- - --------- - ---------
Total Operating Revenues
Navy I Partnership 15,856 8.2 22,512 11.3 67,314 11.9 44,516 7.6
BLM Partnership 14,055 8.0 19,845 10.1 59,022 10.9 38,287 6.7
Navy II Partnership 13,053 7.2 19,647 9.9 52,469 9.7 40,374 6.9
Capacity & Capacity Bonus
Revenues
Navy I Partnership 8,190 4.2 8,190 4.1 13,011 2.3 13,011 2.2
BLM Partnership 8,016 4.6 8,017 4.1 12,728 2.4 12,728 2.2
Navy II Partnership 8,047 4.5 8,047 4.1 12,785 2.4 12,785 2.2
Energy Revenues
Navy I Partnership 7,666 3.9 14,322 7.2 54,303 9.6 31,505 5.4
BLM Partnership 6,039 3.4 11,828 6.0 46,294 8.6 25,559 4.5
Navy II Partnership 5,006 2.8 11,600 5.8 39,684 7.3 27,589 4.7
Total operating revenues for the Navy I Partnership, which consist of
capacity payments, capacity bonus payments and energy payments, were $15.9
million and $67.3 million for the three and nine-months ended September 30,
2001, respectively, as compared to $22.5 million and $44.5 million for the same
periods in 2000, a decrease of 29.3% and an increase of 51.2%, respectively. The
Navy I Partnership's energy revenues were $7.7 million and $54.3 million for the
three and nine-months ended September 30, 2001, respectively, as compared to
$14.3 million and $31.5 million for the same periods in 2000, a decrease of
46.2% and an increase of 72.4%, respectively.
Total operating revenues for the BLM Partnership, which consist of capacity
payments, capacity bonus payments and energy payments, were $14.1 million and
$59.0 million for the three and nine-months ended September 30, 2001,
respectively, as compared to $19.8 million and $38.3 million for the same
periods in 2000, a decrease of 28.8% and an increase of 54.0%, respectively. The
BLM Partnership's energy revenues were $6.0 million and $46.3 million for the
three and nine-months ended September 30, 2001, respectively, as compared to
$11.8 million and $25.6 million for the same periods in 2000, a decrease of
49.2% and an increase of 80.9%, respectively.
Total operating revenues for the Navy II Partnership, which consist of
capacity payments, capacity bonus payments and energy payments, were $13.1
million and $52.5 million for the three and nine-months ended September 30,
2001, respectively, as compared to $19.6 million and $40.4 million for the same
periods in 2000, a decrease of 33.2% and an increase of 30.0%, respectively. The
Navy II Partnership's energy revenues were $5.0 million and $39.7 million for
the three and nine-months ended September 30, 2001, respectively, as compared to
$11.6 million and $27.6 million for the same periods in 2000, a decrease of
56.9% and an increase of 43.8%, respectively.
Each Coso Partnership's decrease in operating and energy revenues for the
three-month period ended September 30, 2001, as compared to the same period in
2000, were due to decreases in the average avoided cost of energy paid to the
respective partnership, as well as previously discussed decreases in generation.
The average avoided cost of energy decreased from 6.2 cents per kWh for the
three-month period ended September 30, 2000, to 3.6 cents per kWh for the same
period in 2001. Each Coso Partnership's increase in operating and energy
revenues for the nine-month period ended September 30, 2001, as compared to the
same period in 2000, were due to increases in the average avoided cost of energy
paid to the respective partnerships, offset, somewhat by previously discussed
decreases in generation. The average avoided cost of energy increased from 4.6
cents per kWh for the nine-month period ended September 30, 2000, to 8.9 cents
per kWh for the same period in 2001. Estimates of Edison's future avoided cost
of energy, which fluctuate with the prices of natural gas, may vary
significantly, and no one can predict the likely level of future avoided cost of
energy prices.
24
Interest and Other Income
Three-Months Three-Months Nine-Months Nine-Months
Ended Ended Ended Ended
September 30, 2001 September 30, 2000 September 30, 2001 September 30, 2000
$ Cents/kWh $ Cents/kWh $ Cents/kWh $ Cents/kWh
- --------- - --------- - --------- - ---------
Navy I Partnership 977 0.5 417 0.2 2,155 0.4 1,199 0.2
BLM Partnership 1,040 0.6 466 0.2 2,877 0.5 6,147 1.1
Navy II Partnership 881 0.5 560 0.3 2,135 0.4 1,962 0.3
The Navy I Partnership's interest and other income was $1.0 million and
$2.2 million for the three and nine-months ended September 30, 2001,
respectively, as compared to $0.4 million and $1.2 million for the same periods
in 2000, increases of $0.6 million and 83.3%, respectively. The increases for
the three and nine-months ended September 30, 2001, as compared to the same
periods in 2000, were primarily due to interest on amounts in arrears owed by
Edison in 2001.
The BLM Partnership's interest and other income was $1.0 million and $2.9
million for the three and nine-months ended September 30, 2001, respectively, as
compared to $0.5 million and $6.1 million for the same periods in 2000, an
increase of 100% and a decrease of 52.5%, respectively. The increase for the
three-month period ended September 30, 2001, as compared to the same period in
2000, was primarily due to interest on amounts in arrears owed by Edison in
2001. The decrease for the nine-months ended September 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,
partially offset by an increase in interest income on amounts in arrears owed by
Edison in 2001.
The Navy II Partnership's interest and other income was $0.9 million and
$2.1 million for the three and nine-months ended September 30, 2001,
respectively, as compared to $0.6 million and $2.0 million for the same periods
in 2000, increases of 50.0% and 5.0%, respectively. The increases for the three
and nine-months ended September 30, 2001, as compared to the same periods in
2000, were primarily due to interest on amounts in arrears owed by Edison in
2001.
25
Plant Operations
Three-Months Three-Months Nine-Months Nine-Months
Ended Ended Ended Ended
September 30, 2001 September 30, 2000 September 30, 2001 September 30, 2000
$ Cents/kWh $ Cents/kWh $ Cents/kWh $ Cents/kWh
- --------- - --------- - --------- - ---------
Navy I Partnership 2,055 1.1 2,167 1.1 6,629 1.2 6,513 1.1
BLM Partnership 2,384 1.4 2,605 1.3 7,592 1.4 8,022 1.4
Navy II Partnership 2,360 1.3 2,230 1.1 7,210 1.3 6,876 1.2
The BLM Partnership's operating expenses, including operating and general
and administrative expenses, were $2.4 million and $7.6 million for the three
and nine-months ended September 30, 2001, respectively, as compared to $2.6
million and $8.0 million for the same periods in 2000, decreases of 7.7% and
5.0% respectively. The decreases for the three and nine-months ended September
30, 2001, as compared to the same periods in 2000, were primarily due to an
offset of current property taxes from a partial refund of an appealed amount and
lower well maintenance and workover costs during those periods in 2001.
The Navy II Partnership's operating expenses, including operating and
general and administrative expenses, was $2.4 million for the three-months ended
September 30, 2001, as compared to $2.2 million for the same period in 2000, an
increases of 9.1%. The increase for the three-months ended September 30, 2001,
as compared to the same periods in 2000, was primarily due to increased well
maintenance and workover costs, partially reduced by an offset of current
property taxes from a partial refund of an appealed amount.
Royalty Expense
Three-Months Three-Months Nine-Months Nine-Months
Ended Ended Ended Ended
September 30, 2001 September 30, 2000 September 30, 2001 September 30, 2000
$ Cents/kWh $ Cents/kWh $ Cents/kWh $ Cents/kWh
- --------- - --------- - --------- - ---------
Navy I Partnership 7,005 3.6 4,484 2.2 13,759 2.4 7,689 1.3
BLM Partnership 967 0.6 1,813 0.9 4,993 0.9 2,391 0.4
Navy II Partnership 2,316 1.3 3,267 1.6 8,209 1.5 7,028 1.2
The Navy I Partnership's royalty expenses were $7.0 million and $13.8
million for the three and nine-months ended September 30, 2001, respectively, as
compared to $4.5 million and $7.7 million for the same periods in 2000,
increases of 55.6% and 79.2%, respectively. The increase for the three-month
period ended September 30, 2001, as compared to the same period in 2000, was due
to the increase in electricity price used to calculate the Navy I Partnership's
Unit 1 royalty. The increase for the nine-month period ended September 30, 2001
as compared to the same period in 2000, was due to the increase in the average
avoided cost of energy paid to the Navy I Partnership during that period in
2001.
The BLM Partnership's royalty expenses were $1.0 million and $5.0 million
for the three and nine-months ended September 30, 2001, respectively, as
compared to $1.8 million and $2.4 million for the same periods in 2000, a
decrease of $0.8 million and an increase of $2.6 million, respectively. The
decrease for the three-month period ended September 30, 2001 as compared to the
same period in 2000, was due to the decrease in the average avoided cost of
energy paid to the BLM Partnership during that period in 2001. The increase for
the nine-month period ended September 30, 2001 as compared to the same period in
2000, was due to the increase in the average avoided cost of energy paid to the
BLM Partnership during that period in 2001.
26
The Navy II Partnership's royalty expenses were $2.3 million and $8.2
million for the three and nine-months ended September 30, 2001, respectively, as
compared to $3.3 million and $7.0 million for the same periods in 2000, a
decrease of 30.3% and an increase of 17.1%, respectively. The decrease for the
three-month period ended September 30, 2001 as compared to the same period in
2000, was due to the decrease in the average avoided cost of energy paid to the
Navy II Partnership during that period in 2001. The increase for the nine-month
period ended September 30, 2001 as compared to the same period in 2000, was due
to the increase in the average avoided cost of energy paid to the Navy II
partnership during that period in 2001.
Depreciation and Amortization
Three-Months Three-Months Nine-Months Nine-Months
Ended Ended Ended Ended
September 30, 2001 September 30, 2000 September 30, 2001 September 30, 2000
$ Cents/kWh $ Cents/kWh $ Cents/kWh $ Cents/kWh
- --------- - --------- - --------- - ---------
Navy I Partnership 2,647 1.4 2,497 1.3 7,687 1.4 7,085 1.2
BLM Partnership 4,009 2.3 4,013 2.0 11,884 2.2 11,427 2.0
Navy II Partnership 3,870 2.1 3,883 2.0 11,454 2.1 11,289 1.9
The Navy I Partnership's depreciation and amortization expense was $7.7
million for the nine-months ended September 30, 2001, as compared to $7.1
million for the same period in 2000, an increase of 8.5%. The Navy I
Partnership's increase in depreciation and amortization expense for the
nine-months ended September 30, 2001, as compared to the same period in 2000,
was primarily due to an increase in capitalized assets in 2001.
Interest Expense
Three-Months Three-Months Nine-Months Nine-Months
Ended Ended Ended Ended
September 30, 2001 September 30, 2000 September 30, 2001 September 30, 2000
$ Cents/kWh $ Cents/kWh $ Cents/kWh $ Cents/kWh
- --------- - --------- - --------- - ---------
Navy I Partnership 2,896 1.5 3,094 1.6 8,851 1.6 9,387 1.6
BLM Partnership 2,225 1.3 2,287 1.2 6,733 1.2 6,870 1.2
Navy II Partnership 2,003 1.1 2,286 1.2 6,140 1.1 6,947 1.2
The Navy I Partnership's interest expense was $2.9 million and $8.9 million
for the three and nine-months ended September 30, 2001, respectively, as
compared to $3.1 million and $9.4 million for the same periods in 2000,
decreases of 6.5% and 5.3%, respectively. The Navy II Partnership's interest
expense was $2.0 million and $6.1 million for the three and nine-months ended
September 30, 2001, respectively, as compared to $2.3 million and $6.9 million
for the same periods in 2000, decreases of 13.0% and 11.6%, respectively. These
decreases in interest expense for the three and nine-months ended September 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.
27
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. The
Navy I, BLM and Navy II Partnerships fully reserved their receivables of
$15,234, $15,279 and $15,312, respectively, from Edison for energy delivered
during this period. 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 further
negotiations with Edison subsequent to its settlement with the CPUC on October
2, 2001. That settlement, which was approved in federal court on October 5,
2001, allows Edison to recover in retail electric rates its historical shortfall
in electricity purchase costs with interest by December 31, 2005. Despite the
partial payment of 10% of the uncollected amount on June 21, 2001, the Coso
Partnerships are unable to determine the time frame during which any future
payments may be received.
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 shortfall in
collections, coupled with its near term capital requirements, materially and
adversely affected its liquidity. In resolution of that issue, Edison settled
with the CPUC on October 2, 2001, enabling it to recover in retail electric
rates its historical shortfall in electric purchase costs. Accordingly, that
will eliminate some of the uncertainty of collection of current receivables owed
to the Navy I, BLM and Navy II Partnerships of $15,234, $15,279 and $15,312,
respectively, for revenues generated from November 2000 through March 26, 2001
and forward. Edison's failure to pay its future obligations may 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. Current year
cash flow from operations should be sufficient to fully retire the $110 million
senior secured note due on December 15, 2001.
On March 27, 2001 the CPUC ordered Edison to resume paying qualifying
facilities such as the Coso Partnerships at rates stipulated by the CPUC. Since
April, Edison has resumed full payments to the Coso Partnerships for current
purchases of electricity generated. On June 21, 2001, Edison paid 10% of its
unpaid liabilities to the Coso Partnerships, for power generated from November
2000 through March 26, 2001, amounting to $12,485 and continues to pay interest
on the outstanding amount at 7% per annum.
The following table sets forth a summary of each Coso Partnership's cash
flows for the nine-months ended September 30, 2001 and September 30, 2000.
28
Nine-Months Nine-Months
Ended Ended
September 30, September 30,
2001 2000
Navy I Partnership (stand alone)
Net cash provided by operating activities $ 20,461 $ 14,752
Net cash provided by (used in) investing activities (1,867) 614
Net cash provided by (used in) financing activities (8,381) (10,048)
------ ------
Net change in cash and cash equivalents $ 10,213 $ 5,318
====== ======
BLM Partnership (stand alone)
Net cash provided by operating activities $ 21,413 $ 19,739
Net cash provided by (used in) investing activities (3,174) 1,895
Net cash provided by (used in) financing activities (5,885) (5,182)
------ ------
Net change in cash and cash equivalents $ 12,354 $ 16,452
====== ======
Navy II Partnership (stand alone)
Net cash provided by operating activities $ 19,184 $ 26,052
Net cash provided by (used in) investing activities (817) 37,714
Net cash provided by (used in) financing activities (14,762) (49,616)
------ ------
Net change in cash and cash equivalents $ 3,605 $ 14,150
====== ======
The Navy I Partnership's cash flows from operating activities increased by
$5.7 million for the nine-months ended September 30, 2001, as compared to the
same period in 2000, primarily due to increases in trade payables partially
offset by an increase in amounts due from related parties.
Cash used in investing activities at the Navy I Partnership increased by
$2.5 million for the nine-months ended September 30, 2001, as compared to the
same period in 2000, primarily due to an increase in restricted cash
requirements associated with the project loan from Funding Corp., partially
offset by a decrease in capital expenditures in 2001.
The Navy I Partnership's cash used in financing activities decreased by
$1.7 million for the nine-months ended September 30, 2001, as compared to the
same period in 2000, due to a decrease in the payment amount on the project loan
from Funding Corp., partially offset by increased distributions in 2001.
The BLM Partnership's cash flows from operating activities increased by
$1.7 million for the nine-months ended September 30, 2001, as compared to the
same period in 2000, primarily due to increases in trade payables.
Cash used in investing activities at the BLM Partnership increased by $5.1
million for the nine-months ended September 30, 2001, as compared to the same
period in 2000, primarily due to an increase in capital expenditures in 2001.
The BLM Partnership's cash used in financing activities increased by $0.7
million for the nine-months ended September 30, 2001, as compared to the same
period in 2000, due to an increase in distributions in 2001, partially offset by
a decrease in the payment amount on the project loan from Funding Corp.
29
The Navy II Partnership's cash flows from operating activities decreased by
$6.9 million for the nine-months ended September 30, 2001, as compared to the
same period in 2000, primarily due to an increases in trade payables and amounts
due to related parties in 2001.
Cash from investing activities at the Navy II Partnership increased by
$38.5 million for the nine-months ended September 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 nine-months ended September 30, 2001, as compared to the
same period in 2000, due to a decrease in the payment amount on the project loan
from Funding Corp., partially offset by increased distributions in 2001.
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 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
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.
30
ITEM 5. Other Information
Supplemental Condensed Combined Financial Information for the Coso
Partnerships
The following information presents unaudited condensed combined financial
statements of the Coso Partnerships. These financial statements represent a
combination of the financial statements of Caithness Coso Funding Corp., Coso
Finance Partners, Coso Energy Developers and Coso Power Developers for the
periods indicated. This supplemental financial information is not required by
accounting principles generally accepted in the United States of America and has
been provided to facilitate a more comprehensive understanding of the financial
position, operating results and cash flows of the Coso Partnerships as a whole,
which jointly and severally guarantee the repayment of Caithness Coso Funding
Corp's senior notes. The unaudited condensed combined financial statements
should be read in conjunction with each individual Coso Partnership's financial
statements and their accompanying notes.
The financial information herein presented reflects all adjustments,
consisting only of normal recurring adjustments, which are, in the opinion of
management, necessary for a fair statement of the results for interim periods
presented. The results for the interim periods are not necessarily indicative of
results to be expected for the full year.
31
COSO PARTNERSHIPS
UNAUDITED CONDENSED COMBINED BALANCE SHEETS
(Dollars in thousands)
September 30, December 31,
2001 2000
Assets:
Cash and cash equivalents......................... $ 43,281 $ 17,109
Restricted cash and investments................... 43,302 47,712
Accounts receivable, net.......................... 11,399 590
Prepaid expenses and other assets................. 3,116 2,671
Amounts due from related parties.................. 6,152 6,191
Property, plant and equipment, net................ 422,650 439,641
Power purchase agreement, net..................... 53,604 57,364
Investments....................................... 13,276 13,485
Deferred financing costs, net..................... 7,360 8,564
------- -------
$ 604,140 $ 593,327
======= =======
Liabilities and Partners' Capital:
Accounts payable and accrued liabilities.......... $ 57,541 $ 36,260
Amounts due to related parties.................... 24,571 23,460
Project loans..................................... 318,858 330,067
------- -------
400,970 389,787
Partners' capital.................................... 203,170 203,540
------- -------
$ 604,140 $ 593,327
======= =======
See accompanying notes to the unaudited condensed combined financial statements.
32
COSO PARTNERSHIPS
UNAUDITED CONDENSED COMBINED STATEMENTS OF OPERATIONS
(Dollars in thousands)
Three-Months Three-Months Nine-Months Nine-Months
Ended Ended Ended Ended
September 30, September 30, September 30, September 30,
2001 2000 2001 2000
Revenue:
Energy revenues............................... $ 18,711 $ 37,750 $ 140,281 $ 84,653
Capacity revenues............................. 24,253 24,254 38,524 38,524
Interest and other income..................... 2,898 1,443 7,167 9,308
------ ------ ------- -------
Total revenue.......................... 45,862 63,447 185,972 132,485
Operating expenses:
Plant operating expenses...................... 6,799 7,002 21,431 21,411
Royalty expense............................... 10,288 9,564 26,961 17,108
Provision for doubtful accounts............... --- --- 66,176 ---
Depreciation and amortization................. 10,526 10,393 31,025 29,801
------ ------ ------- -------
Total operating expenses............... 27,613 26,959 145,593 68,320
Operating income....................... 18,249 36,488 40,379 64,165
Other expenses:
Interest expense.............................. 7,124 7,667 21,724 23,204
Amortization on deferred financing............ 401 402 1,205 1,205
------ ------ ------- -------
Total other expenses................... 7,525 8,069 22,929 24,409
Net income............................. $ 10,724 $ 28,419 $ 17,450 $ 39,756
====== ====== ====== ======
See accompanying notes to the unaudited condensed combined financial statements.
33
COSO PARTNERSHIPS
UNAUDITED CONDENSED COMBINED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
Nine-Months Nine-Months
Ended Ended
September 30, September 30,
2001 2000
Net cash provided by (used in) operating activities.... $ 61,058 $ 60,543
Net cash provided by (used in) investing activities.... (5,858) 40,223
Net cash provided by (used in) financing activities.... (29,028) (64,846)
------ ------
Net change in cash and cash equivalents................ $ 26,172 $ 35,920
====== ======
Supplemental cash flow disclosure:
Cash paid for interest............................. $ 14,631 $ 15,660
====== ======
See accompanying notes to the unaudited condensed combined financial statements.
34
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 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.
35
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
None
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 9 - 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 SEP-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 9 MOS
---- ----
CASH 0 0
SECURITIES 0 0
RECEIVABLES 331,353 327,217
ALLOWANCES 0 0
INVENTORY 0 0
CURRENT ASSETDS 1,286 8,359
PP&E 0 0
DEPRECIATION 0 0
TOTAL ASSETS 331,353 327,217
CURRENT LIABILITIES 1,286 8,359
BONDS 300,067 318,858
PREFERRED MANDATORY 0 0
PREFERRED 0 0
COMMON 0 0
OTHER SE 0 0
TOTAL LIABILITY AND EQUITY 331,353 327,217
SALES 0 0
TOTAL REVENUES 30,799 21,703
CGS 0 0
TOTAL COSTS 0 0
OTHER EXPENSES 0 0
LOSS PROVISION 0 0
INTEREST EXPENSES 30,799 21,703
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 9 - 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 SEP-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 9 MOS
---- ---
CASH 3,506 13,719
SECURITIES 22,996 24,414
RECEIVABLES 17,715 49,140
ALLOWANCES 15,234 36,847
INVENTORY 0 0
CURRENT ASSETS 6,796 26,954
PP&E 228,718 229,552
DEPRECIATION 79,642 86,855
TOTAL ASSETS 198,409 212,331
CURRENT LIABILITIES 16,554 28,317
BONDS 134,984 129,893
PREFERRED MANDATORY 0 0
PREFERRED 0 0
COMMON 0 0
OTHER SE 0 0
TOTAL LIABILITY AND EQUITY 198,409 212,331
SALES 67,653 67,314
TOTAL REVENUES 70,159 69,469
CGS 0 0
TOTAL COSTS 0 0
OTHER EXPENSES 44,358 49,688
LOSS PROVISION 0 0
INTEREST EXPENSES 13,013 9,241
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 10,540
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 9 - 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 SEP-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 9 MOS
---- ---
CASH 5,862 18,216
SECURITIES 14,502 8,160
RECEIVABLES 15,684 42,548
ALLOWANCES 15,279 37,109
INVENTORY 0 0
CURRENT ASSETS 7,280 24,881
PP&E 238,244 247,265
DEPRECIATION 84,626 95,210
TOTAL ASSETS 201,312 209,788
CURRENT LIABILITIES 31,160 36,892
BONDS 100,907 99,040
PREFERRED MANDATORY 0 0
PREFERRED 0 0
COMMON 0 0
OTHER SE 0 0
TOTAL LIABILITY AND EQUITY 201,312 209,788
SALES 57,453 59,022
TOTAL REVENUES 65,578 61,899
CGS 0 0
TOTAL COSTS 0 0
OTHER EXPENSES 46,693 46,299
LOSS PROVISION 0 0
INTEREST EXPENSES 9,492 6,971
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 8,629
(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 9 - 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 SEP-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 9 MOS
---- ---
CASH 7,741 11,346
SECURITIES 10,214 10,728
RECEIVABLES 21,294 45,660
ALLOWANCES 15,312 38,045
INVENTORY 0 0
CURRENT ASSETS 14,572 19,909
PP&E 209,605 210,230
DEPRECIATION 72,658 82,332
TOTAL ASSETS 195,693 189,817
CURRENT LIABILITIES 14,094 24,699
BONDS 94,176 89,925
PREFERRED MANDATORY 0 0
PREFERRED 0 0
COMMON 0 0
OTHER SE 0 0
TOTAL LIABILITY AND EQUITY 195,639 189,817
SALES 58,366 52,469
TOTAL REVENUES 61,234 54,604
CGS 0 0
TOTAL COSTS 0 0
OTHER EXPENSES 49,895 49,606
LOSS PROVISION 0 0
INTEREST EXPENSES 9,899 6,717
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 (1,719)
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: November 7, 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)