FORM 10-Q -- QUARTERLY REPORT UNDER SECTION 13
OR 15(d) OF THE SECURITES EXCHANGE ACT OF 1934
(Mark One)
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 For the quarterly period ended June 30, 2000
-------------
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
---------
Coso Finance Partners
---------------------
(Exact name of registrant as specified in its charter)
California 68-0133679
---------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
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.
Not Applicable
--------------
<PAGE>
COSO FINANCE PARTNERS
Form 10-Q
For the Quarter Ended June 30, 2000
<TABLE>
<CAPTION>
<S> <C>
PART I. FINANCIAL INFORMATION Page No.
ITEM 1. Financial Statements
CAITHNESS COSO FUNDING CORP.
Unaudited condensed balance sheet at June 30, 2000 and
December 31, 1999 4
Unaudited condensed statement of operations for the three-months
ended June 30, 2000, the three-months ended June 30, 1999, the
six-months ended June 30, 2000, and the six-months ended
June 30, 1999 5
Unaudited condensed statement of cash flows for the six-months
ended June 30, 2000 and the six-months ended June 30, 1999 6
Notes to the unaudited condensed financial statements 7
COSO FINANCE PARTNERS
Unaudited condensed combined balance sheets at June 30, 2000
and December 31, 1999 8
Unaudited condensed combined statements of operations for the three
June 30, 2000, the three-months ended June 30, 1999,
the six-months ended June 30, 2000, the two-months ended February
28, 1999, the four months ended June 30, 1999 and the six-months
ended June 30, 1999 9
Unaudited condensed combined statements of cash flows for the six-
months ended June 30, 2000, the two-months ended February 28,
1999, the four months ended June 30, 1999 and the six-months ended
June 30, 1999. 10
Notes to the unaudited condensed combined financial statements 11
COSO ENERGY DEVELOPERS
Unaudited condensed balance sheets at June 30, 2000
and December 31, 1999 12
Unaudited condensed statements of operations for the three
months ended June 30, 2000, the three-months ended June 30, 1999,
the six-months ended June 30, 2000, the two-months ended February 28,
1999, the four months ended June 30, 1999 and the six-months ended
June 30, 1999 13
Unaudited condensed statements of cash flows for the six-months
ended June 30, 2000, the two-months ended February 28, 1999, the
four months ended June 30, 1999 and the six-months ended June 30,
1999. 14
Notes to the unaudited condensed financial statements 15
COSO POWER DEVELOPERS
Unaudited condensed balance sheets at June 30, 2000
and December 31, 1999 16
Unaudited condensed statements of operations for the three-
months ended June 30, 2000, the three-months ended June 30, 1999,
the six-months ended June 30, 2000, the two-months ended February 28,
1999, the four months ended June 30, 1999 and the six-months ended
June 30, 1999 17
Unaudited condensed statements of cash flows for the six-months
ended June 30, 2000, the two-months ended February 28, 1999, the four
months ended June 30, 1999 and the six-months ended June 30, 1999. 18
Notes to the unaudited condensed financial statements 19
2
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 30
ITEM 3. Defaults upon Senior Securities 30
ITEM 4. Submission of Matters to a Vote of Security Holders 30
ITEM 5. Other Information 30
ITEM 6. Exhibits and Reports on Form 8-K 30
3
</TABLE>
<PAGE>
CAITHNESS COSO FUNDING CORP.
UNAUDITED CONDENSED BALANCE SHEET
(Dollars in thousands)
June 30, December 31,
2000 1999
(Note)
Assets:
Accrued interest receivable.................. $ 1,269 $ 1,392
Project loan to Coso Finance Partners........ 141,502 151,550
Project loan to Coso Energy Developers....... 102,718 107,900
Project loan to Coso Power Developers........ 103,934 153,550
------- --------
$ 349,423 $ 414,392
======= ========
Liabilities and Stockholders' Equity:
Senior secured notes:
Accrued interest payable.................. $ 1,269 $ 1,392
6.80% notes due 2001...................... 45,154 110,000
9.05% notes due 2009...................... 303,000 303,000
-------- --------
Total liabilities............................... 349,423 414,392
Stockholders' equity............................ --- ---
-------- --------
$ 349,423 $ 414,392
======== ========
Note: The condensed balance sheet at December 31, 1999 has been derived from
the audited financial statements at that date but does not include all
of the information and footnotes required by generally accepted
accounting principles for complete financial statements.
See accompanying notes to the unaudited condensed financial statements
4
<PAGE>
CAITHNESS COSO FUNDING CORP.
UNAUDITED CONDENSED STATEMENT OF OPERATIONS
(Dollars in thousands)
<TABLE>
<CAPTION>
Three-Months Three-Months Six-Months Six-Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
<S> <C> <C> <C> <C>
Interest income.......... $ 7,708 $ 4,986 $ 16,929 $ 4,986
Interest expense......... (7,708) (4,986) (16,929) (4,986)
------- ------- ------- ------
Net Income............ $ --- $ --- $ --- $ ---
======= ======= ======= ======
See accompanying notes to the unaudited condensed financial statements
</TABLE>
5
<PAGE>
CAITHNESS COSO FUNDING CORP.
UNAUDITED CONDENSED STATEMENT OF CASH FLOWS
(Dollars in thousands)
<TABLE>
<CAPTION>
Six-Months Six-Months
Ended Ended
June 30, June 30,
2000 1999
<S> <C> <C>
Cash flows from investing activities..... $ 64,969 $ (413,000)
Cash flows from financing activities..... (64,969) 413,000
------- -------
Net change in cash ...................... $ --- $ ---
======= =======
Supplemental cash flow disclosure:
Cash paid for interest................. $ 15,660 $ ---
======= =======
See accompanying notes to the unaudited condensed financial statements
</TABLE>
6
<PAGE>
CAITHNESS COSO FUNDING CORP.
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS
(1) Organization and Operations
Caithness Coso Funding Corp. (Funding Corp.) was incorporated on April 22, 1999,
in Delaware. Funding Corp. is a special purpose corporation that was formed for
the purpose of issuing senior secured notes on behalf of Coso Finance Partners,
Coso Energy Developers and Coso Power Developers (the Coso Partnerships),
affiliates of Funding Corp. Funding Corp. has loaned all of the proceeds from
the offering of 6.80% senior secured notes due 2001 and 9.05% senior secured
notes due 2009 (a total of $413 million) to the Coso Partnerships, and the Coso
Partnerships have jointly and severally guaranteed on a senior secured basis,
repayment of the senior secured notes.
Funding Corp. has no material assets other than the loans, and the accrued
interest thereon, that have been made to the Coso Partnerships. Also, Funding
Corp. does not conduct any business, other than issuing the senior secured notes
and making the loans to the Coso 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, 1999.
The financial information herein presented reflects all adjustments, consisting
only of normal recurring adjustments, which are, in the opinion of management,
necessary for a fair statement of the results for interim periods presented. The
results for the interim periods are not necessarily indicative of results to be
expected for the full year.
7
<PAGE>
<TABLE>
<CAPTION>
COSO FINANCE PARTNERS
UNAUDITED CONDENSED COMBINED BALANCE SHEETS
(Dollars in thousands)
June 30, December 31, 1999
2000 (Note)
<S> <C> <C>
Assets:
Cash....................................................................... $ 3,621 $ 7,821
Restricted cash and investments............................................ 20,532 25,001
Accounts receivable........................................................ 9,384 5,154
Prepaid expenses & other assets............................................ 47 --
Amounts due from related parties........................................... 3,918 4,508
Property, plant & equipment, net........................................... 152,557 153,879
Power purchase agreement, net.............................................. 12,814 13,388
Investment in China Lake Plant Services, Inc............................... 4,270 4,212
Deferred financing costs, net.............................................. 3,490 3,749
------- -------
$ 210,633 $ 217,712
======= =======
Liabilities and Partners' Capital:
Accounts payable and accrued liabilities................................... $ 15,159 $ 16,236
Amounts due to related parties............................................. 515 564
Project loan............................................................... 141,502 151,550
------- -------
157,176 168,350
Partners' capital............................................................. 53,457 49,362
------- -------
$ 210,633 $ 217,712
======= =======
Note: The condensed balance sheet at December 31, 1999 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 combined financial statements
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
COSO FINANCE PARTNERS
UNAUDITED CONDENSED COMBINED STATEMENTS OF OPERATIONS
(Dollars in thousands)
Three-Months Three-Months Six-Months Two-Months Four-Months Six-Months
Ended Ended Ended Ended Ended Ended
June 30, June 30, June 30, February 28, June 30, June 30,
2000 1999 2000 1999 1999 1999
(New Basis) (New Basis) (New Basis) (Old Basis) (New Basis)
<S> <C> <C> <C> <C> <C> <C>
Revenue:
Energy revenues..................... $ 9,458 $ 9,169 $ 17,183 $ 8,098 $ 13,568 $ 21,666
Capacity............................ 3,566 3,232 4,821 474 3,469 3,943
Interest and other income........... 459 247 782 824 1,074 1,898
------- ------- ------- ------- ------- -------
Total revenue.................. 13,483 12,648 22,786 9,396 18,111 27,507
Operating expenses:
Plant operating expenses............. 2,274 2,456 4,346 3,125 3,914 7,039
Royalty expense...................... 2,016 2,134 3,205 987 2,585 3,572
Depreciation and amortization........ 2,235 2,391 4,588 1,604 3,174 4,778
------- ------- ------- ------- ------- -------
Total operating expenses....... 6,525 6,981 12,139 5,716 9,673 15,389
Operating income............... 6,958 5,667 10,647 3,680 8,438 12,118
Other expenses:
Interest expense.................... 3,120 1,638 6,293 663 1,962 2,625
Interest expense - acquisition debt. -- 1,315 -- -- 1,962 1,962
Costs related to acquisition debt... 129 1,368 259 -- 2,027 2,027
------- ------- ------- ------- ------- -------
Total other expenses........... 3,249 4,321 6,552 663 5,951 6,614
Income before extraordinary item 3,709 1,346 4,095 3,017 2,487 5,504
Extraordinary item - Loss on
extinguishment of debt................ -- 2,375 -- -- 2,375 2,375
------- ------- ------- ------- ------- -------
Net income (loss)............ $ 3,709 $ (1,029) $ 4,095 $ 3,017 $ 112 $ 3,129
======= ======= ======= ======= ======= =======
See accompanying notes to the unaudited condensed combined financial statements
</TABLE>
9
<PAGE>
<TABLE>
<CAPTION>
COSO FINANCE PARTNERS
UNAUDITED CONDENSED COMBINED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
Six-Months Two-Months Four-Months Six-Months
Ended Ended Ended Ended
June 30, February June 30, June 30,
2000 1999 1999 1999
(New Basis) (Old Basis) (New Basis)
<S> <C> <C> <C> <C>
Net cash provided by operating activities.............. $ 4,071 $ 6,592 $ 2,716 $ 9,308
Net cash provided by (used in) investing activities.... 1,777 (538) (21,194) (21,732)
Net cash provided by (used in) financing activities.... (10,048) (1,926) 17,399 15,473
------- ------- ------- -------
Net change in cash and cash equivalents................ $ (4,200) $ 4,128 $ (1,079) $ 3,049
======= ======= ======= =======
Supplemental cash flow disclosure:
Cash paid for interest............................ $ 6,342 $ --- $ 3,428 $ 3,428
======= ======= ======= =======
See accompanying notes to the unaudited condensed combined financial statements
</TABLE>
10
<PAGE>
COSO FINANCE PARTNERS
NOTES TO THE UNAUDITED CONDENSED
COMBINED 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, 1999.
On May 27, 1999 Coso Finance Partners II was merged into CFP to form one
Partnership.
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) Acquisition
On February 25, 1999, Caithness Acquisition Company, LLC (Caithness
Acquisition), a wholly owned subsidiary of Caithness Energy LLC, purchased all
of CalEnergy Company Inc.'s (CalEnergy) interest in CFP for approximately $62.0
million. The acquisition was accounted for under the purchase method, and no
goodwill was recorded. After Caithness Acquisition's purchase of CalEnergy's
interest in CFP, a new basis of accounting was adopted and is referred to as
"New Basis" as compared to the former cost basis which is referred to as "Old
Basis" in the financial statements. The purchase price was allocated to the
portion of the assets and liabilities purchased from CalEnergy based upon their
fair values, with the amount of fair value of net assets in excess of the
purchase price being allocated to long-lived assets on a pro-rata basis.
In order to complete the purchase of CalEnergy's interest in CFP, Caithness
Acquisition arranged for short-term debt financing of approximately $77.6
million. This short-term debt was repaid on May 28, 1999 from a portion of the
proceeds from the offering of senior secured notes (see note 4).
(4) Debt Financing
On May 28, 1999 Caithness Coso Funding Corp. loaned approximately $151.6 million
to CFP from a portion of the proceeds from the offering of senior secured notes.
The loan consists of one note of $29.0 million with an interest rate of 6.80%
and another of $122.6 million with an interest rate of 9.05% with maturity dates
of December 15, 2001 and December 15, 2009, respectively. All prior project
loans of approximately $118.2 million were repaid from the proceeds of the
financing and an extraordinary loss from the early extinguishment of this debt
was incurred for approximately $2.4 million. The extraordinary loss was due to a
premium and other costs incurred to pay the prior project loans before maturity.
11
<PAGE>
<TABLE>
<CAPTION>
COSO ENERGY DEVELOPERS
UNAUDITED CONDENSED BALANCE SHEETS
(Dollars in thousands)
June 30, December 31,
2000 1999
(Note)
<S> <C> <C>
Assets:
Cash................................................................... $ 14,031 $ 6,423
Restricted cash and investments........................................ 5,979 9,806
Accounts receivable.................................................... 8,929 6,095
Prepaid expenses and other assets...................................... 148 100
Amounts due from related parties....................................... 1,968 761
Property, plant and equipment, net..................................... 160,161 165,650
Power purchase agreement, net.......................................... 20,045 20,549
Investment in Coso Transmission Line Partners.......................... 2,981 2,981
Investment in China Lake Plant Services, Inc........................... 1,279 1,228
Deferred financing costs, net.......................................... 2,639 2,798
------- -------
$ 218,160 $ 216,391
======= =======
Liabilities and Partners' Capital:
Accounts payable and accrued liabilities............................... $ 7,948 $ 6,681
Amounts due to related parties......................................... 22,172 22,460
Project loan........................................................... 102,718 107,900
------- -------
132,838 137,041
Partners' capital......................................................... 85,322 79,350
------- -------
$ 218,160 $ 216,391
======= =======
Note: The condensed balance sheet at December 31, 1999 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
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
COSO ENERGY DEVELOPERS
UNAUDITED CONDENSED STATEMENT OF OPERATIONS
(Dollars in thousands)
Three-Months Three-Months Six-Months Two-Months Four-Months Six-Months
Ended Ended Ended Ended Ended Ended
June 30, June 30, June 30, February 28, June 30, June 30,
2000 1999 2000 1999 1999 1999
(New Basis) (New Basis) (New Basis) (Old Basis) (New Basis)
<S> <C> <C> <C> <C> <C> <C>
Revenue:
Energy revenues..................... $ 7,778 $ 3,359 $ 13,731 $ 16,716 $ 6,793 $ 23,509
Capacity............................ 3,484 3,484 4,711 817 3,894 4,711
Interest and other income........... 366 254 5,681 78 372 450
------- ------- ------- ------- ------- -------
Total revenue.................. 11,628 7,097 24,123 17,611 11,059 28,670
Operating expenses:
Plant operating expenses............ 2,878 3,912 5,417 4,039 5,516 9,555
Royalty expense..................... 513 332 578 1,592 679 2,271
Depreciation and amortization....... 3,538 3,912 7,414 2,550 5,087 7,637
------- ------- ------- ------- ------- -------
Total operating expenses....... 6,929 8,156 13,409 8,181 11,282 19,463
Operating income............. 4,699 (1,059) 10,714 9,430 (223) 9,207
Other expenses:
Interest expense................... 2,275 1,624 4,583 616 1,927 2,543
Interest expense - acquisition debt -- 954 -- -- 1,415 1,415
Costs related to acquisition debt.. 79 1,053 159 -- 1,522 1,522
------- ------- ------- ------- ------- -------
Total other expenses........... 2,354 3,631 4,742 616 4,864 5,480
Income before extraordinary item 2,345 (4,690) 5,972 8,814 (5,087) 3,727
Extraordinary item - Loss on
extinguishment of debt............ -- 1,822 -- -- 1,822 1,822
------- ------- ------- ------ ------ -------
Net income (loss).............. $ 2,345 $ (6,512) $ 5,972 $ 8,814 $ (6,909) $ 1,905
======= ======= ======= ====== ====== =======
See accompanying notes to the unaudited condensed financial statements
</TABLE>
13
<PAGE>
<TABLE>
<CAPTION>
COSO ENERGY DEVELOPERS
UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
Six-Months Two-Months Four-Months Six-Months
Ended Ended Ended Ended
June 30, February 28, June 30, June 30,
2000 1999 1999 1999
(New Basis) (Old Basis) (New Basis)
<S> <C> <C> <C> <C>
Net cash provided by operating activities.............. $ 10,384 $ 10,367 $ 8,810 $ 19,177
Net cash provided by (used in) investing activities.... 2,406 120 (15,480) (15,360)
Net cash provided by (used in) financing activities.... (5,182) 425 3,911 4,336
------- ------- ------- -------
Net change in cash and cash equivalents................ $ 7,608 $ 10,912 $ (2,759) $ 8,153
======= ======= ======= =======
Supplemental cash flow disclosure:
Cash paid for interest......................... $ 4,612 $ --- $ 2,777 $ 2,777
======= ======= ======= =======
See accompanying notes to the unaudited condensed financial statements
</TABLE>
14
<PAGE>
COSO ENERGY DEVELOPERS
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS
(1) Organization and Operation
Coso Energy Developers (CED), a general Partnership, is engaged in the operation
of a 80 MW power generation facility located at the Coso Hot Springs, China Lake
California. CED sells all electricity produced to Southern California Edison
under a 24-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, 1999.
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) Acquisition
On February 25, 1999, Caithness Acquisition Company, LLC (Caithness
Acquisition), a wholly owned subsidiary of Caithness Energy LLC, purchased all
of CalEnergy Company, Inc.'s (CalEnergy) interest in CED for approximately $69.0
million. The acquisition was accounted for under the purchase method, and no
goodwill was recorded. After Caithness Acquisition's purchase of CalEnergy's
interest in CED, a new basis of accounting was adopted and is referred to as
"New Basis" as compared to the former cost basis which is referred to as "Old
Basis" in the financial statements. The purchase price was allocated to the
portion of the assets and liabilities purchased from CalEnergy based upon their
fair values, with the amount of fair value of net assets in excess of the
purchase price being allocated to long-lived assets on a pro-rata basis.
In order to complete the purchase of CalEnergy's interest in CED, Caithness
Acquisition arranged for short-term debt financing of approximately $55.2
million. This short-term debt was repaid on May 28, 1999 from a portion of the
proceeds from the offering of senior secured notes (see note 4).
(4) Debt Financing
On May 28, 1999 Caithness Coso Funding Corp. loaned approximately $107.9 million
to CED from a portion of the proceeds from the offering of senior secured notes.
The loan consists of one note of $11.7 million with an interest rate of 6.80%
and another of $96.3 million with an interest rate of 9.05% with maturity dates
of December 15, 2001 and December 15, 2009, respectively. All prior project
loans of approximately $93.2 million were repaid from the proceeds of the
financing and an extraordinary loss from the early extinguishment of this debt
was incurred for approximately $1.8 million. The extraordinary loss was due to a
premium and other costs incurred to pay the prior project loans before maturity.
15
<PAGE>
COSO POWER DEVELOPERS
UNAUDITED CONDENSED BALANCE SHEETS
(Dollars in thousands)
<TABLE>
<CAPTION>
June 30, December
2000 1999
(Note)
<S>
Assets: <C> <C>
Cash..................................................................... $ 15,911 $ 6,020
Restricted cash and investments.......................................... 11,688 54,338
Accounts receivable...................................................... 8,997 20,540
Prepaid expenses and other assets........................................ 46 ---
Amounts due from related parties......................................... 8,907 7,058
Property, plant and equipment, net....................................... 141,655 147,522
Power purchase agreement, net............................................ 27,012 28,409
Investment in Coso Transmission Line Partners............................ 3,660 3,660
Investment in China Lake Plant Services, Inc............................. 2,174 2,098
Deferred financing costs, net............................................ 3,239 3,624
------- ------
$ 223,289 $ 273,269
======= =======
Liabilities and Partners' Capital:
Accounts payable and accrued liabilities................................. $ 12,779 $ 12,163
Amounts due to related parties........................................... 975 3,225
Project loan............................................................. 103,934 153,550
------- -------
117,688 168,938
Partners' capital........................................................... 105,601 104,331
------- -------
$ 223,289 $ 273,269
======= =======
Note: The condensed balance sheet at December 31, 1999 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
</TABLE>
16
<PAGE>
<TABLE>
<CAPTION>
COSO POWER DEVELOPERS
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
(Dollars in thousands)
Three-Months Three-Months Six-Months Two-Months Four-Months Six-Months
Ended Ended Ended Ended Ended Ended
June 30, June 30, June 30, February 28, June 30, June 30,
2000 1999 2000 1999 1999 1999
(New Basis) (New Basis) (New Basis) (Old Basis) (New Basis)
<S> <C> <C> <C> <C> <C> <C>
Revenue:
Energy revenues........................$ 7,435 $ 24,556 $ 15,989 $ 16,687 $ 31,272 $ 47,959
Capacity............................... 3,504 3,504 4,738 822 3,916 4,738
Interest and other income.............. 873 577 1,402 150 733 883
------- ------- ------- ------- ------- -------
Total revenue................... 11,812 28,637 22,129 17,659 35,921 53,580
Operating expenses:
Plant operating expenses............... 2,541 3,117 4,646 3,195 4,410 7,605
Royalty expense........................ 1,986 2,872 3,761 1,806 3,936 5,742
Depreciation and amortization.......... 3,708 3,566 7,406 2,339 4,754 7,093
------ ------- ------- ------- ------- -------
Total operating expenses........ 8,235 9,555 15,813 7,340 13,100 20,440
Operating income................ 3,577 19,082 6,316 10,319 22,821 33,140
Other expenses:
Interest expense 2,307 1,899 4,661 953 2,348 3,301
Interest expense - acquisition debt... -- 1,355 -- -- 2,010 2,010
Costs related to acquisition debt..... 193 1,400 385 -- 2,088 2,088
------ ------- ------- ------- ------- -------
Total other expenses............ 2,500 4,654 5,046 953 6,446 7,399
Income before extraordinary item 1,077 14,428 1,270 9,366 16,375 25,741
Extraordinary item - Loss on
extinguishment of debt................. -- 2,147 -- -- 2,147 2,147
------ ------ ------- ------- ------- -------
Net income.....................$ 1,077 $ 12,281 $ 1,270 $ 9,366 $ 14,228 $ 23,594
======= ======= ======= ======= ======= ======
See accompanying notes to the unaudited condensed financial statements
</TABLE>
17
<PAGE>
<TABLE>
<CAPTION>
COSO POWER DEVELOPERS
UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
Six-Months Two-Months Four-Months Six-Months
Ended Ended Ended Ended
June 30, February 28, June 30, June 30,
2000 1999 1999 1999
(New Basis) (Old Basis) (New Basis)
<S> <C> <C> <C>
Net cash provided by operating activities.............. $ 16,999 $ 12,016 $ 16,941 $ 28,957
Net cash provided by (used in) investing activities.... 42,508 (1,126) (19,448) (20,574)
Net cash provided by (used in) financing activities.... (49,616) 1,766 2,075 3,841
------- ------- ------- -------
Net change in cash and cash equivalents................ $ 9,891 $ 12,656 $ (432) $ 12,224
======= ======= ======= =======
Supplemental cash flow disclosure:
Cash paid for interest........................... $ 4,706 $ --- $ 4,191 $ 4,191
======= ======= ======= =======
See accompanying notes to the unaudited condensed financial statements
</TABLE>
18
<PAGE>
COSO POWER DEVELOPERS
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS
(1) Organization and Operation
Coso Power Developers (CPD), a general Partnership, is engaged in the operation
of a 80 MW power generation facility located at the Coso Hot Springs, China Lake
California. CPD sells all electricity produced to Southern California Edison
under a 24-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, 1999.
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) Acquisition
On February 25, 1999, Caithness Acquisition Company, LLC (Caithness
Acquisition), a wholly owned subsidiary of Caithness Energy LLC, purchased all
of CalEnergy Company, Inc.'s (CalEnergy) interest in CPD for approximately $74.5
million. The acquisition was accounted for under the purchase method, and no
goodwill was recorded. After Caithness Acquisition's purchase of CalEnergy's
interest in CPD, a new basis of accounting was adopted and is referred to as
"New Basis" as compared to the former cost basis which is referred to as "Old
Basis" in the financial statements. The purchase price was allocated to the
portion of the assets and liabilities purchased from CalEnergy based upon their
fair values, with the amount of fair value of net assets in excess of the
purchase price being allocated to long-lived assets on a pro-rata basis.
In order to complete the purchase of CalEnergy's interest in CPD, Caithness
Acquisition arranged for short-term debt financing of approximately $78.6
million. This short-term debt was repaid on May 28, 1999 from a portion of the
proceeds from the offering of senior secured notes (see note 4).
(4) Debt Financing
On May 28, 1999 Caithness Coso Funding Corp. loaned approximately $153.6 million
to CPD from a portion of the proceeds from the offering of senior secured notes.
The loan consists of one note of $69.4 million with an interest rate of 6.80%
and another note of $84.2 million with an interest rate of 9.05% with maturity
dates of December 15, 2001 and December 15, 2009, respectively. All prior
project loans of approximately $140.0 million were repaid from the proceeds of
the financing and an extraordinary loss from the early extinguishment of this
debt was incurred for approximately $2.1 million. The extraordinary loss was due
to a premium and other costs incurred to pay the prior project loans before
maturity.
19
<PAGE>
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Except for historical financial information contained herein, the
matters discussed in this quarterly report may be considered forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and
subject to the safe harbor created by the Securities Litigation Reform Act of
1995. Such statements include declarations regarding the intent, belief or
current expectations of Caithness Coso Funding Corp. ("Funding Corp."), Coso
Finance Partners (the "Navy I Partnership"), Coso Energy Developers (the "BLM
Partnership"), and Coso Power Developers the ("Navy II Partnership", and
together with the Navy I Partnership and the BLM Partnership "Coso" or the "Coso
Partnerships") 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) that the information is of a preliminary
nature and may be subject to further adjustment, (ii) risks related to the
operation of power plants, (iii) the impact of avoided cost pricing, (iv)
general operating risks, (v) the dependence on third parties, (vi) changes in
government regulation, (vii) the effects of competition, (viii) the dependence
on senior management, (ix) fluctuations in quarterly results and (x)
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 system 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
MidAmerican Energy Holdings Company, formerly known as CalEnergy Company, Inc.
("CalEnergy"), formed the Coso Partnerships in the 1980s to develop, construct,
own and operate the Coso projects. On February 25, 1999 Caithness Acquisition
Company, LLC, purchased all of CalEnergy's interests in the Coso projects for
$205.0 million in cash, plus $5.0 million in contingent payments, 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 Southern California Edison ("Edison") under a long-term Standard
Offer No.4 power purchase agreement. Each partnership's power purchase agreement
expires after the final maturity date of both the 6.8% Series B Senior Secured
Notes and the 9.05% Series B Senior Secured Notes issued by Funding Corp.
Each Coso Partnership receives the following payments under its power
purchase agreement:
o Capacity payments for being able to produce electricity at certain levels.
Capacity payments are fixed throughout the life of each power purchase
agreement;
o 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
o Energy payments which are based on the amount of electricity the
Coso Partnership's plant actually produces.
20
Energy payments are fixed for the first ten years of firm operation
under each power purchase agreement. Firm operation was achieved for each Coso
Partnership when Edison and that Coso Partnership agreed that each generating
unit at such Coso Partnership's plant was a reliable source of generation and
could reasonably be expected to operate continuously at its effective rating.
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 the energy
itself or buy it from another power producer rather than buy it from the
relevant Coso Partnership. The power purchase agreement for the Navy I
Partnership will expire in August 2011, the power purchase agreement for the BLM
Partnership will expire March 2019, and the power purchase agreement for the
Navy II Partnership will expire in January 2010. The fixed energy price period
in the power purchase agreement 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 June 30, 2000 Edison's average avoided cost
of energy paid to the Coso Partnerships was 4.3 cents per kWh, which is
substantially below the fixed energy prices earned by the partnerships prior to
the expiration of the fixed energy price periods of their respective power
purchase agreements. It is not possible to predict the likely level of future
avoided cost of energy prices.
The Coso Partnerships have implemented a steam-sharing program, which
they established under a 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 Navy
and the Bureau of Land Management. The Navy I Partnership pays a royalty for
Unit I through reimbursement of electricity supplied to the Navy by Edison from
electricity generated at the Navy I plant. The reimbursement is based on a
pricing formula that is included in the Navy Contract. For Units 2 and 3, the
Navy I Partnership's royalty expense paid to the 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 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.
Coso 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, Coso 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 Coso Funding Corp from payments of principal and interest on the
notes. Coso Funding Corp. does not conduct any other operations apart from
issuing the notes.
Under the note 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 are
deposited in a revenue account and withdrawn upon receipt by the depositary of a
certificate from the relevant partnership detailing the amounts to be paid from
funds in its respective revenue account.
21
Capacity Utilization
For purposes of consistency in financial presentation, the plant
capacity factor for each of the Coso Partnerships is based on a nominal capacity
amount of 80MW (240MW in the aggregate). The Coso Partnerships have a gross
operating capacity that allows for the production of electricity in excess of
their nominal capacity amounts. Utilization of this operating capacity is based
upon a number of factors and can be expected to vary throughout the year under
normal operating conditions.
The following data includes the operating capacity factor, capacity and
electricity production (in kWh) for each Coso Partnership on a stand-alone
basis:
<TABLE>
<CAPTION>
<
Three-Months Ended Six-Months Ended
June 30 June 30
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Navy I Partnership (stand alone)
Operating capacity factor 109.3% 90.7% 112.5% 83.0%
Capacity (MW) (average) 87.42 72.53 90.03 66.41
kWh produced (000s) 190,991 158,271 388,907 287,412
BLM Partnership (stand alone)
Operating capacity factor 108.1% 106.8% 108.5% 108.8%
Capacity (MW) (average) 86.50 85.40 86.78 87.06
kWh produced (000s) 189,023 186,547 374,881 377,603
Navy II Partnership (stand alone)
Operating capacity factor 106.4% 111.9% 111.3% 112.3%
Capacity (MW) (average) 85.14 89.50 89.04 89.82
kWh produced (000s) 185,752 184,858 384,658 375,658
</TABLE>
The Navy I Partnership's energy production was 191.0 million kWh and
388.9 million kWh for the three and six-months ended June 30, 2000,
respectively, as compared to 158.3 million kWh and 287.4 million kWh for the
same periods in 1999, increases of 20.7% and 35.3%, respectively. These
increases for the three and six-months ended June 30, 2000, were attributable to
the outage of one turbine generator unit during those periods in 1999. The
changes in energy production for the BLM and Navy II Partnership's were
insignificant over the two periods.
22
Results of Operations for the three and six-months ended June 30, 2000 and 1999
The following is a discussion of the results of operations of the Coso
Partnerships for the three and six-months ending June 30, 2000 and 1999 (dollar
amounts in tables are in thousands, except per kWh data):
<TABLE>
<CAPTION>
Revenue
Three-Months Three-Months Six-Months Six-Months
Ended Ended Ended Ended
June 30, 2000 June 30, 1999 June 30, 2000 June 30, 1999
$ Cents/kWh $ Cents/kWh $ Cents/kWh $ Cents/kWh
- ---------- - ---------- - ---------- - ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Total Operating Revenues
Navy I Partnership 13,024 6.8 12,401 7.8 22,004 5.7 25,609 8.9
BLM Partnership 11,262 6.0 6,843 3.7 18,442 4.9 28,220 7.4
Navy II Partnership 10,939 5.9 28,060 15.2 20,727 5.4 52,697 14.0
Capacity & Capacity Bonus
Revenues
Navy I Partnership 3,566 1.9 3,232 2.0 4,821 1.2 3,943 1.4
BLM Partnership 3,484 1.8 3,484 1.9 4,711 1.3 4,711 1.2
Navy II Partnership 3,504 1.9 3,504 1.9 4,738 1.2 4,738 1.3
Energy Revenues
Navy I Partnership 9,458 5.0 9,169 5.8 17,183 4.4 21,666 7.5
BLM Partnership 7,778 4.1 3,359 1.8 13,731 3.7 23,509 6.2
Navy II Partnership 7,435 4.0 24,556 13.3 15,989 4.2 47,959 12.8
</TABLE>
Total operating revenues for the Navy I Partnership, which consist of
capacity payments, capacity bonus payments and energy payments, were $13.0
million and $22.0 million for the three and six-months ended June 30, 2000,
respectively, as compared to $12.4 million and $25.6 million for the comparable
periods in 1999, an increase of 4.8% and a decrease of 14.1%, respectively. The
Navy I Partnership capacity and capacity bonus revenues were $3.6 million and
$4.8 million for the three and six-months ended June 30, 2000, respectively as
compared to $3.2 million and $3.9 million for the comparable periods in 1999,
increases of 12.5% and 23.1%, respectively. The Navy I Partnership's energy
revenues were $9.5 million and $17.2 million for the three and six-months ended
June 30, 2000, respectively as compared to $9.2 million and $21.7 million for
the comparable periods in 1999, an increase of 3.3% and a decrease of 20.7%,
respectively. The increases in operating and energy revenues for the three-month
period ended June 30, 2000, as compared to the same period in 1999, were due to
the increase in average avoided cost of energy from 2.8 cents per kWh to 4.3
cents per kWh. The decreases in operating and energy revenues for the six-month
period ended June 30, 2000, as compared to the same period in 1999 were due to a
reduction in steam transfers from the Navy I Partnership to the BLM Partnership
and the Navy II Partnership. Steam transfer revenues for the six-month period
ended June 30, 2000, were $2.3 million as compared to $12.9 million during the
same period in 1999, a decrease of $10.6 million. The decrease in steam transfer
revenues corresponds to the expiration of the fixed energy price period under
the BLM and Navy II Partnerships' power purchase agreements. During the first
three-months of 1999 for the BLM Partnership and during the entire year of 1999
for the Navy II Partnership, both partnerships were receiving higher fixed
energy prices under their respective power purchase agreements and were passing
along the additional revenue to the Navy I Partnership. Capacity and capacity
bonus revenues for the three and six-months ended June 30, 2000, increased due
to the outage of one of the Navy I units during most of that period in 1999.
This outage resulted in reduced bonus revenues in 1999.
23
Total operating revenues for the BLM Partnership were $11.3 million and
$18.4 million for the three and six-months ended June 30, 2000, respectively as
compared to $6.8 million and $28.2 million for the comparable periods in 1999,
an increase of 66.2% and a decrease of 34.8%, respectively. The BLM
Partnership's energy revenues were $7.8 million and $13.7 million for the three
and six-months ended June 30, 2000, respectively as compared to $3.4 million and
$23.5 million for the comparable periods in 1999, an increase of 129.4% and a
decrease of 41.7%, respectively. The increases in both operating revenues and
energy revenues for the three month period ended June 30, 2000, as compared to
the same period in 1999 were due to the increase in avoided cost of energy from
2.8 cents per kWh to 4.3 cents per kWh. The significant decreases in both
operating revenues and energy revenues for the six-month period ended June 30,
2000, as compared to the same period in 1999, were due to the expiration of the
fixed energy price period under the BLM Partnership's power purchase agreement
in March 1999 and the receipt of energy payments based on Edison's avoided cost
of energy since that time. Until March 1999 the BLM Partnership received
approximately 14.6 cents per kWh for energy delivered. Under the avoided cost of
energy formula for the current year, the BLM Partnership has been receiving an
average of approximately 3.7 cents per kWh for energy delivered. The decrease in
revenues due to the reduction in energy price has been partially offset by a
reduction in steam transfer payments to the Navy I Partnership of $4.7 million
compared to the same period in 1999. The steam transfer payments were reduced in
conjunction with the BLM Partnership's expiration of the fixed energy price
period in March 1999.
Total operating revenues for the Navy II Partnership were $10.9 million
and $20.7 million for the three and six-months ended June 30, 2000, respectively
as compared to $28.1 million and $52.7 million for the comparable periods in
1999, decreases of 61.2% and 60.7%, respectively. The Navy II Partnership's
energy revenues were $7.4 million and $16.0 million for the three and six-months
ended June 30, 2000, respectively as compared to $24.6 million and $48.0 million
for the same periods in 1999, decreases of 69.9% and 66.7%, respectively. These
decreases in operating revenue and energy revenues for both the three and
six-months ended June 30, 2000, as compared to the same period in 1999, were due
to the expiration in January 2000 of the fixed energy price period under the
Navy II Partnership's power purchase agreement and the receipt of energy
payments based on Edison's avoided cost of energy since that time. Until January
11, 2000, the Navy II Partnership received approximately 14.6 cents per kWh for
energy delivered. Under the avoided cost of energy formula for the current year,
the Navy II Partnership has been receiving an average of approximately 3.7 cents
per kWh for energy delivered. Similar decreases are expected in the upcoming
quarters as the Navy II Partnership experiences the full effect of the
expiration of the fixed energy price period. The decrease in revenues due to the
reduction in energy price has been partially offset by a reduction in steam
transfer payments to the Navy I Partnership of $6.0 million compared to the same
period in 1999. The steam transfer payments were reduced in conjunction with the
Navy II Partnership's expiration of the fixed energy price period in January
2000.
Interest and Other Income
<TABLE>
<CAPTION>
Three-Months Three-Months Six-Months Six-Months
Ended Ended Ended Ended
June 30, 2000 June 30, 1999 June 30, 2000 June 30, 1999
$ Cents/kWh $ Cents/kWh $ Cents/kWh $ Cents/kWh
-- --------- - --------- - --------- - ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Navy I Partnership 459 0.2 247 0.2 782 0.2 1,898 0.7
BLM Partnership 366 0.2 254 0.1 5,681 1.5 450 0.1
Navy II Partnership 873 0.5 577 0.3 1,402 0.4 883 0.2
</TABLE>
24
The Navy I Partnership's interest and other income were $459,000 and
$782,000 for the three and six-months ended June 30, 2000, respectively as
compared to $247,000 and $1.9 million for the comparable periods in 1999, an
increase of 85.8% and a decrease of 58.8%, respectively. The increase for the
three-months ended June 30, 2000, as compared to the same period in 1999, is
attributable to larger average restricted cash balances as compared to the same
period in 1999. The decrease for the six-months ended June 30, 2000, as compared
to the same period in 1999, is due to a $1.6 million insurance recovery recorded
during the first quarter of 1999 in connection with the shut-down of one of the
Navy I Partnership's turbine generator units. The Navy I Partnership has
recovered $500,000 with respect to the insurance and has reserved the remaining
$1.1 million pending resolution of the insurance claim. The BLM Partnership's
interest and other income was $366,000 and $5.7 million for the three and
six-months ended June 30, 2000, respectively as compared to $254,000 and
$450,000 for the comparable periods in 1999, increases of $112,000 and $5.2
million, respectively. The increase for the three-months ended June 30, 2000, is
attributable to larger average restricted cash balances as compared to the same
period in 1999. The increase for the six-months ended June 30, 2000, as compared
to the same period in 1999 was primarily due to a legal settlement of $5 million
with Dow Chemical Company paid to the BLM Partnership. The Navy II Partnership's
interest and other income was $873,000 and $1.4 million for the three and
six-months period ending June 30, 2000, respectively as compared to $577,000 and
$883,000 for the comparable periods in 1999, increases of 51.3% and 58.6%,
respectively. The increases for both the three and six month periods ended June
30, 2000, as compared to the same periods in 1999 resulted from larger average
restricted cash balances required by the senior secured notes.
Plant Operations
<TABLE>
<CAPTION>
Three-Months Three-Months Six-Months Six-Months
Ended Ended Ended Ended
June 30, 2000 June 30, 1999 June 30, 2000 June 30, 1999
$ Cents/kWh $ Cents/kWh $ Cents/kWh $ Cents/kWh
- --------- - --------- - --------- - ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Navy I Partnership 2,274 1.2 2,456 1.6 4,346 1.1 7,039 2.4
BLM Partnership 2,878 1.5 3,912 2.1 5,417 1.4 9,555 2.5
Navy II Partnership 2,540 1.4 3,117 1.7 4,645 1.2 7,605 2.0
</TABLE>
The Navy I Partnership's operating expenses, including operating and
general and administrative expenses, were $2.3 million and $4.3 million for the
three and six-months ended June 30, 2000, respectively as compared to $2.5
million and $7.0 million for the comparable periods in 1999, decreases of 8.0%
and 38.6%, respectively. The BLM Partnership's operating expenses, including
operating and general and administrative expenses, were $2.9 million and $5.4
million for the three and six-months ended June 30, 2000, respectively as
compared to $3.9 million and $9.6 million for the comparable periods in 1999,
decreases of 25.6% and 43.8%, respectively. The Navy II Partnership's operating
expenses, including operating and general and administrative expenses, were $2.5
million and $4.6 million for the three and six-months ended June 30, 2000,
respectively as compared to $3.1 million and $7.6 million for the same periods
in 1999, decreases of 19.4% and 39.5%, respectively. The decreases for each of
the Coso Partnerships for the three and six-months ended June 30, 2000, as
compared to the same periods in 1999, were primarily due to reductions in legal
expenses as a result of a settlement agreement with Edison that is subject to
California Public Utility Commission approval, and reductions in operator and
management committee fees due to the replacement of the Coso project's prior
operator and managing partner. Operating costs (with the exception of property
taxes) were also reduced, as compared to the same periods in 1999 through the
implementation of management's ongoing plan to reduce head count and other
operating costs. The Coso Partnerships experienced a significant increase in
property taxes in 1999 as a result of the purchase of CalEnergy's interests in
the project which led to a dispute with the county of Inyo over the assessed
value of the three power plants. Each partnership filed an appeal to protest the
new assessed value of the properties and withheld payment of a portion of the
assessed taxes. The Coso Partnerships have established a reserve for the full
amount of the withheld taxes and are continuing to work with county officials to
resolve a number of issues concerning the assessment.
25
Royalty Expenses
<TABLE>
<CAPTION>
Three-Months Three-Months Six-Months Six-Months
Ended Ended Ended Ended
June 30, 2000 June 30, 1999 June 30, 2000 June 30, 1999
$ Cents/kWh $ Cents/kWh $ Cents/kWh $ Cents/kWh
- --------- - --------- - --------- - ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Navy I Partnership 2,015 1.1 2,134 1.3 3,204 0.8 3,572 1.2
BLM Partnership 513 0.3 332 0.2 578 0.2 2,271 0.6
Navy II Partnership 1,986 1.1 2,872 1.6 3,761 1.0 5,742 1.5
</TABLE>
The Navy I Partnership's royalty expenses were $2.0 million and $3.2
million for the three and six-months ended June 30, 2000, respectively as
compared to $2.1 million and $3.6 million for the comparable periods in 1999,
decreases of 4.8% and 11.1%, respectively. These decreases were due to decreased
steam sharing revenues over the same periods in 1999. The BLM Partnership's
royalty expenses were $513,000 and $578,000 for the three and six-months ended
June 30, 2000, respectively as compared to $332,000 and $2.3 million for the
comparable periods in 1999, an increase of 54.5% and a decrease of 74.9%,
respectively. The increase in royalty expense for the three-month period ended
June 30, 2000 as compared to the same period in 1999, is due to increased
revenues over the same period in 1999. The decrease for the six-months ended
June 30, 2000 is due to a reduction in BLM Partnership's revenue caused by the
expiration of the fixed energy price period under the BLM Partnership's power
purchase agreement in March 1999 and the receipt of energy payments under
Edison's avoided cost of energy since that time. The Navy II Partnership's
royalty expenses were $2.0 million and $3.8 million for the three and six-months
ended June 30, 2000, respectively as compared to $2.9 million and $5.7 million
for the same periods in 1999, decreases of 31.0% and 33.3%, respectively. These
decreases were due to a reduction in Navy II Partnership's revenues caused by
the expiration of the fixed energy price period under the Navy II Partnership's
power purchase agreement in January 2000 and the receipt of energy payments
under Edison's avoided cost of energy since that time. The decrease in royalty
expenses for the period ended June 30, 2000 were partially offset by an increase
in royalty rate.
<TABLE>
<CAPTION>
Depreciation and Amortization
Three-Months Three-Months Six-Months Six-Months
Ended Ended Ended Ended
June 30, 2000 June 30, 1999 June 30, 2000 June 30, 1999
$ Cents/kWh $ Cents/kWh $ Cents/kWh $ Cents/kWh
- --------- - ---------- - ---------- - ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Navy I Partnership 2,236 1.2 2,391 1.5 4,589 1.2 4,778 1.7
BLM Partnership 3,538 1.9 3,912 2.1 7,414 2.0 7,637 2.0
Navy II Partnership 3,709 2.0 3,566 1.9 7,407 1.9 7,093 1.9
</TABLE>
26
The Navy I Partnership's depreciation and amortization expense was $2.2
million and $4.6 million for the three and six-months ended June 30, 2000,
respectively as compared to $2.4 million and $4.8 million for the comparable
periods in 1999, decreases of 8.3% and 4.2%, respectively. The BLM Partnership's
depreciation and amortization expense was $3.5 million and $7.4 million for the
three and six-months ended June 30, 2000, respectively as compared to $3.9
million and $7.6 million for the comparable periods in 1999, decreases of 10.3%
and 2.6%, respectively. Both the Navy I and BLM Partnership's decreases in
depreciation and amortization expense for the three and six-months ended June
30, 2000 as compared to the same periods in 1999, were primarily due to the
cessation of depreciation expense for certain fixed assets which became fully
depreciated during 1999. The Navy II Partnership's depreciation and amortization
expense was $3.7 million and $7.4 million for the three and six-months ended
June 30, 2000, respectively as compared to $3.6 million and $7.1 million for the
same periods in 1999, increases of 2.8% and 4.2%, respectively. These increases
were primarily due to an increase in capital improvements.
Interest Expense
<TABLE>
<CAPTION>
Three-Months Three-Months Ended Six-Months Six-Months
Ended Ended Ended Ended
June 30, 2000 June 30, 1999 June 30, 2000 June 30, 1999
$ Cents/kWh $ Cents/kWh $ Cents/kWh $ Cents/kWh
- --------- - --------- - --------- - ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Navy I Partnership 3,120 1.6 1,638 1.0 6,293 1.6 2,626 0.9
BLM Partnership 2,275 1.2 1,624 0.9 4,583 1.2 2,543 0.7
Navy II Partnership 2,307 1.2 1,899 1.0 4,661 1.2 3,301 0.9
</TABLE>
The Navy I Partnership's interest expense was $3.1 million and $6.3
million for the three and six-months ended June 30, 2000, respectively as
compared to $1.6 million and $2.6 million for the comparable periods in 1999,
increases of 93.8% and 142.3%, respectively. The BLM Partnership's interest
expense was $2.3 million and $4.7 million for the three and six-months ended
June 30, 2000, respectively as compared to $1.6 million and $2.5 million for the
comparable periods in 1999, increases of 43.8% and 84.0%, respectively. The Navy
II Partnership's interest expense was $2.3 million and $4.7 million for the
three and six-months ended June 30, 2000, respectively as compared to $1.9
million and $3.3 million for the comparable periods in 1999, increases of 21.1%
and 42.4%, respectively. These increases were due to the allocation of
outstanding debt balances resulting from the $413 million senior secured
financing which closed on May 28, 1999.
Interest Expense - Acquisition Debt
The Navy I, BLM and Navy II Partnerships incurred interest expense - acquisition
debt of $2.0 million, $1.4 million, and $2.0 million, respectively for the
six-months ended June 30, 1999. This interest expense related to acquisition
debt in the amount of $211.5 million incurred on February 25, 1999 to acquire
CalEnergy's interest in the Coso Partnerships. This acquisition debt was repaid
with the proceeds of the $413.0 million senior secured notes issued on May 28,
1999.
Costs Related to Acquisition Debt
The Navy I, BLM and Navy II Partnerships incurred other expenses of $2.0
million, $1.5 million and $2.1 million, respectively for the six-months ended
June 30, 1999. These other expenses, which consist primarily of lending, legal
and other fees, related to the acquisition debt in the amount of $211.5 million
incurred on February 25, 1999 to acquire CalEnergy's interest in the Coso
Partnerships. This acquisition debt was repaid with the proceeds of the $413.0
million senior secured notes issued on May 28, 1999.
27
Loss on early extinguishment of debt
The Navy I, BLM and Navy II Partnerships recorded a loss on the early
extinguishment of their previous debt in the amounts of $2.4 million, $1.8
million and $2.1 million, respectively for the six-months ended June 30, 1999.
This loss was due to premium and other costs incurred to repay the existing
project debt of the Coso Partnerships before its scheduled maturity date. These
costs included tender premiums paid to the holders of the previous debt and the
write off of the remaining balance of deferred financing costs related to the
issuance of the previous debt. The previous debt was repaid with the proceeds of
the $413.0 million senior secured notes issued on May 28, 1999.
Liquidity and Capital Resources
Each of the Coso Partnerships 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 development
costs, distributions to partners and payments with respect to the project debt.
The following table sets forth a summary of each Coso Partnership's
cash flows for the six-months ended June 30, 2000 and June 30, 1999.
<TABLE>
<CAPTION>
Six-Months Six-Months
Ended Ended
June 30, 2000 June 30, 1999
<S> <C> <C>
Navy I Partnership (stand alone)
Net cash provided by operating activities $ 4,071 $ 9,308
Net cash provided by (used in) investing activities 1,777 (21,732)
Net cash provided by (used in) financing activities (10,048) 15,473
------- -------
Net change in cash and cash equivalents $ (4,200) $ 3,049
======= =======
BLM Partnership (stand alone)
Net cash provided by operating activities $ 10,384 $ 19,177
Net cash provided by (used in) investing activities 2,406 (15,360)
Net cash provided by (used in) financing activities (5,182) 4,336
------- -------
Net change in cash and cash equivalents $ 7,608 $ 8,153
======= =======
Navy II Partnership (stand alone)
Net cash provided by operating activities $ 16,999 $ 28,957
Net cash provided by (used in) investing activities 42,508 (20,574)
Net cash provided by (used in) financing activities (49,616) 3,841
------- -------
Net change in cash and cash equivalents $ 9,891 $ 12,224
======= =======
</TABLE>
The Navy I Partnership's cash flows from operating activities decreased
by $5.2 million for the six-months ended June 30, 2000 as compared to June 30,
1999, primarily due to financing costs associated with the short term debt
obtained to complete the purchase of CalEnergy's interest in the Navy I
Partnership during the six-month period ended June 30, 1999.
28
Cash used in investing activities at the Navy I Partnership decreased
by $23.5 million for the six- months ended June 30, 2000 as compared to June 30,
1999, primarily due to the use of restricted cash for repayment of the project
loan.
The Navy I Partnership's cash flows from financing activities decreased
by $25.5 million for the six-months ended June 30, 2000 as compared to June 30
1999, primarily due to repayment of the project loan during the six-month period
ended June 30, 2000 offset by an increase in the project loan from Funding
Corp., decreased by distributions made to partners during the six-month period
ended June 30, 1999.
The BLM Partnership's cash flows from operating activities decreased by
$8.8 million for the six-months ended June 30, 2000 as compared to June 30,
1999, primarily due to financing costs associated with the short term debt
obtained to complete the purchase of CalEnergy's interest in the BLM Partnership
and a reduction in trade receivables resulting from the switch to avoided cost
of energy from fixed energy prices during the six-month period ended June 30,
1999.
Cash used in investing activities at the BLM Partnership decreased by
$17.8 million for the six-months ended June 30, 2000 as compared to June 30,
1999, primarily due to the use of restricted cash for repayment of the project
loan.
The BLM Partnership's cash flows from financing activities decreased by
$9.5 million for the six-months ended June 30, 2000 as compared to June 30,
1999, primarily due to repayment of the project loan during the six-month period
ended June 30, 2000 offset by an increase in the project loan from Funding
Corp., decreased by distributions made to partners during the six-month period
ended June 30, 1999.
The Navy II Partnership's cash flows from operating activities
decreased by $12.0 million for the six-months ended June 30, 2000 as compared to
June 30, 1999, primarily due to financing costs associated with the short term
debt obtained to complete the purchase of CalEnergy's interest in the Navy II
Partnership during that period in 1999, and a reduction in net income caused by
the expiration, in early January 2000, of the fixed energy price period under
the Navy II Partnership's power purchase agreement and the receipt of energy
payments based on Edison's avoided cost of energy since that time. The decrease
in cash flow was partially offset by an increase in accounts receivable.
Cash used in investing activities at the Navy II Partnership's
decreased by $63.1 million for the six-months ended June 30, 2000 as compared to
June 30, 1999, primarily due to the use of restricted cash for repayment of the
project loan.
The Navy II Partnership's cash flows from financing activities
decreased by $53.5 million for the six-months ended June 30, 2000 as compared to
June 30, 1999, primarily due to repayment of the project loan during the
six-month period ended June 30, 2000 offset by an increase in the project loan
from Funding Corp., decreased by distributions made to partners during the
six-month period ended June 30, 1999.
Year 2000
In 1999, the Coso Partnership's developed a plan to identify, assess
and remediate "Year 2000" issues within each of their significant computer
programs and certain machinery and equipment. The Coso Partnerships have not
experienced disruptions to their financial or operating activities caused by
failure of computerized systems from Year 2000 issues. In addition, the Coso
Partnerships have not experienced disruptions to operations caused by failure of
computerized systems of suppliers or customers from Year 2000 issues. Management
of the Coso Partnerships do not expect Year 2000 issues to have a material
adverse effect on their power plant's operations or financial results in 2000.
29
PART II. OTHER INFORMATION
ITEM 1. Legal Proceedings
General
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
None
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
30
<PAGE>
EXHIBIT 27.1
Form S-X
Commercial and Industrial Companies
Financial Data Schedule Worksheet for: CAITHNESS COSO FUNDING CORP
---------------------------
Review the following list of tags for Article 5 and fill in the correct data in
the column(s) provided. Generally, only one column of information will be
required, however, two columns are provided if required in the Financial Data
Schedule.
Unless otherwise noted, all tags are required. A response is required for each
item within the schedule. Use the value "0" (zero) if information is immaterial,
inapplicable or unknown. Decimals may not be used to state financial data except
as indicated. Values not provided will be entered as "0" (zero). Missing dates
will be entered as "TO COME". Please be sure to verify all information in the
EDGARized exhibit.
To include a footnote, place a number in parentheses next to the value and
provide the text of each corresponding footnote at the end of the worksheet
form.
Do you wish to include a LEGEND? This schedule contains summary financial
Yes X No information extracted from *___________
--- --- and is qualified 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 filed period?
Yes X No
--- ---
CIK Use this section only for coregistrant
Does this data apply to a coregistrant filings.
Yes No
--- --- COREGISTRANT CIK:
NAME Use this section only for coregistrant
Does this data apply to a coregistrant filings.
Yes No
--- --- COREGISTRANT NAME:
MULTIPLIER X 1,000 1,000,000,000
Do the financials require a multiplier --- ---
other than 1 (one)? 1,000,000 1,000,000,000,000
X Yes No --- ---
--- ---
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-31-1999 DEC-31-2000
----------- -----------
mmm-dd-yyyy mmm-dd-yyyy
PERIOD START
(example: JAN-01-1997) JAN-01-1999 JAN-01-2000
----------- -----------
mmm-dd-yyyy mmm-dd-yyyy
PERIOD END
(example: SEP-30-1997) DEC-31-1999 JUN-30-2000
----------- -----------
mmm-dd-yyyy mmm-dd-yyyy
EXCHANGE RATE EXCHANGE RATE: EXCHANGE RATE:
Is the exchange rate other than 1
(one)? (Value may contain up to 5
decimal places) Use in conjunction
with CURRENCY tag.
Yes X No
--- ---
<PAGE>
<TABLE>
<CAPTION>
PERIOD TYPE: Year PERIOD TYPE: 6-M0S
---- ------
<S> <C> <C>
CASH 0 0
SECURITIES 0 0
RECEIVABLES 414,392 349,423
ALLOWANCES 0 0
INVENTORY 0 0
CURRENT ASSETS 1,392 1,269
PP&E 0 0
DEPRECIATION 0 0
TOTAL ASSETS 414,392 349,423
CURRENT LIABILITIES 1,392 1,269
BONDS 413,000 348,154
PREFERRED MANDATORY 0 0
PREFERRED 0 0
COMMON 0 0
OTHER SE 0 0
TOTAL LIABILITY AND EQUITY 414,392 349,423
SALES 0 0
TOTAL REVENUES 20,491 16,929
CGS 0 0
TOTAL COSTS 0 0
OTHER EXPENSES 0 0
LOSS PROVISION 0 0
INTEREST EXPENSE 20,491 16,929
INCOME PRETAX 0 0
INCOME TAX 0 0
INCOME CONTINUING 0 0
DISCONTINUED 0 0
EXTRAORDINARY 0 0
CHANGES 0 0
NET INCOME 0 0
EPS BASIC 0 0
(Value may contain up to 3 decimal places)
EPS DILUTED 0 0
(Value may contain up to 3 decimal places)
Footnote Text: (Note: Each footnote cannot exceed 256 characters, including spaces)
</TABLE>
<PAGE>
EXHIBIT 27.2
Form S-X
Commercial and Industrial Companies
Financial Data Schedule Worksheet for: COSO FINANCE PARTNERS
----------------------
Review the following list of tags for Article 5 and fill in the correct data in
the column(s) provided. Generally, only one column of information will be
required, however, two columns are provided if required in the Financial Data
Schedule.
Unless otherwise noted, all tags are required. A response is required for each
item within the schedule. Use the value "0" (zero) if information is immaterial,
inapplicable or unknown. Decimals may not be used to state financial data except
as indicated. Values not provided will be entered as "0" (zero). Missing dates
will be entered as "TO COME". Please be sure to verify all information in the
EDGARized exhibit.
To include a footnote, place a number in parentheses next to the value and
provide the text of each corresponding footnote at the end of the worksheet
form.
Do you wish to include a LEGEND? This schedule contains summary financial
Yes X No information extracted from *___________
--- --- and is qualified 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 filed period?
Yes X No
--- ---
CIK Use this section only for coregistrant
Does this data apply to a coregistrant filings.
Yes No
--- --- COREGISTRANT CIK:
NAME Use this section only for coregistrant
Does this data apply to a coregistrant filings.
Yes No
--- --- COREGISTRANT NAME:
MULTIPLIER X 1,000 1,000,000,000
Do the financials require a multiplier --- ---
other than 1 (one)? 1,000,000 1,000,000,000,000
X Yes No --- ---
--- ---
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-31-1999 DEC-31-2000
----------- -----------
mmm-dd-yyyy mmm-dd-yyyy
PERIOD START
(example: JAN-01-1997) JAN-01-1999 JAN-01-2000
----------- -----------
mmm-dd-yyyy mmm-dd-yyyy
PERIOD END
(example: SEP-30-1997) DEC-31-1999 JUN-30-2000
----------- -----------
mmm-dd-yyyy mmm-dd-yyyy
EXCHANGE RATE EXCHANGE RATE: EXCHANGE RATE:
Is the exchange rate other than 1
(one)? (Value may contain up to 5
decimal places) Use in conjunction
with CURRENCY tag.
Yes X No
--- ---
<PAGE>
<TABLE>
<CAPTION>
PERIOD TYPE: Year PERIOD TYPE: 6- MOS
<S> <C> <C>
CASH 7,821 3,621
SECURITIES 25,001 20,532
RECEIVABLES 9,662 13,302
ALLOWANCE 0 0
INVENTORY 0 0
CURRENT ASSETS 17,483 16,970
PP&E 225,157 227,825
DEPRECIATION 71,278 75,268
TOTAL ASSETS 217,712 210,633
CURRENT LIABILITIES 16,800 15,674
BONDS 151,550 141,502
PREFERRED MANDATORY 0 0
PREFERRED 0 0
COMMON 0 0
OTHER SE 0 0
TOTAL LIABILITY AND EQUITY 217,712 210,633
SALES 55,666 22,004
TOTAL REVENUES 57,442 22,786
CGS 0 0
TOTAL COSTS 0 0
OTHER EXPENSES 31,671 12,139
LOSS PROVISION 0 0
INTEREST EXPENSE 13,575 6,552
INCOME PRETAX 0 0
INCOME TAX 0 0
INCOME CONTINUING 0 0
DISCONTINUED 0 0
EXTRAORDINARY 2,375 0
CHANGES 0 0
NET INCOME 9,821 4,095
EPS BASIC 0 0
(Value may contain up to 3 decimal places)
EPS DILUTED 0 0
(Value may contain up to 3 decimal places)
Footnote Text: (Note: Each footnote cannot exceed 256 characters, including spaces)
</TABLE>
<PAGE>
EXHIBIT 27.3
Form S-X
Commercial and Industrial Companies
Financial Data Schedule Worksheet for: COSO ENERGY DEVELOPERS
-----------------------
Review the following list of tags for Article 5 and fill in the correct data in
the column(s) provided. Generally, only one column of information will be
required, however, two columns are provided if required in the Financial Data
Schedule.
Unless otherwise noted, all tags are required. A response is required for each
item within the schedule. Use the value "0" (zero) if information is immaterial,
inapplicable or unknown. Decimals may not be used to state financial data except
as indicated. Values not provided will be entered as "0" (zero). Missing dates
will be entered as "TO COME". Please be sure to verify all information in the
EDGARized exhibit.
To include a footnote, place a number in parentheses next to the value and
provide the text of each corresponding footnote at the end of the worksheet
form.
Do you wish to include a LEGEND? This schedule contains summary financial
Yes X No information extracted from *___________
--- --- and is qualified 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 filed period?
Yes X No
--- ---
CIK Use this section only for coregistrant
Does this data apply to a coregistrant filings.
Yes No
--- --- COREGISTRANT CIK:
NAME Use this section only for coregistrant
Does this data apply to a coregistrant filings.
Yes No
--- --- COREGISTRANT NAME:
MULTIPLIER X 1,000 1,000,000,000
Do the financials require a multiplier --- ---
other than 1 (one)? 1,000,000 1,000,000,000,000
X Yes No --- ---
--- ---
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-31-1999 DEC-31-2000
----------- -----------
mmm-dd-yyyy mmm-dd-yyyy
PERIOD START
(example: JAN-01-1997) JAN-01-1999 JAN-01-2000
----------- -----------
mmm-dd-yyyy mmm-dd-yyyy
PERIOD END
(example: SEP-30-1997) DEC-31-1999 JUN-30-2000
----------- -----------
mmm-dd-yyyy mmm-dd-yyyy
EXCHANGE RATE EXCHANGE RATE: EXCHANGE RATE:
Is the exchange rate other than 1
(one)? (Value may contain up to 5
decimal places) Use in conjunction
with CURRENCY tag.
Yes X No
--- ---
<PAGE>
<TABLE>
<CAPTION>
PERIOD TYPE: Year PERIOD TYPE 6- MOS
<S> <C> <C>
CASH 6,423 14,031
SECURITIES 9,806 5,979
RECEIVABLES 6,856 10,897
ALLOWANCE 0 0
INVENTORY 0 0
CURRENT ASSETS 13,379 25,076
PP&E 237,183 237,781
DEPRECIATION 71,533 77,620
TOTAL ASSETS 216,391 218,160
CURRENT LIABILITIES 29,141 30,120
BONDS 107,900 102,718
PREFERRED MANDATORY 0 0
PREFERRED 0 0
COMMON 0 0
OTHER SE 0 0
TOTAL LIABILITY AND EQUITY 216,391 218,160
SALES 49,877 18,442
TOTAL REVENUES 50,943 24,123
CGS 0 0
TOTAL COSTS 0 0
OTHER EXPENSES 38,534 13,409
LOSS PROVISION 0 0
INTEREST EXPENSE 10,235 4,742
INCOME PRETAX 0 0
INCOME TAX 0 0
INCOME CONTINUING 0 0
DISCONTINUED 0 0
EXTRAORDINARY 1,822 0
CHANGES 0 0
NET INCOME 352 5,972
EPS BASIC 0 0
(Value may contain up to 3 decimal places)
EPS DILUTED 0 0
(Value may contain up to 3 decimal places)
Footnote Text: (Note: Each footnote cannot exceed 256 characters, including spaces)
</TABLE>
<PAGE>
EXHIBIT 27.4
Form S-X
Commercial and Industrial Companies
Financial Data Schedule Worksheet for: COSO POWER DEVELOPERS
----------------------
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 qualified 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 filed period?
Yes X No
--- ---
CIK Use this section only for coregistrant
Does this data apply to a coregistrant filings.
Yes No
--- --- COREGISTRANT CIK:
NAME Use this section only for coregistrant
Does this data apply to a coregistrant filings.
Yes No
--- --- COREGISTRANT NAME:
MULTIPLIER X 1,000 1,000,000,000
Do the financials require a multiplier --- ---
other than 1 (one)? 1,000,000 1,000,000,000,000
X Yes No --- ---
--- ---
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-31-1999 DEC-31-2000
----------- -----------
mmm-dd-yyyy mmm-dd-yyyy
PERIOD START
(example: JAN-01-1997) JAN-01-1999 JAN-01-2000
----------- -----------
mmm-dd-yyyy mmm-dd-yyyy
PERIOD END
(example: SEP-30-1997) DEC-31-1999 JUN-30-2000
----------- -----------
mmm-dd-yyyy mmm-dd-yyyy
EXCHANGE RATE EXCHANGE RATE: EXCHANGE RATE:
Is the exchange rate other than 1
(one)? (Value may contain up to 5
decimal places) Use in conjunction
with CURRENCY tag.
Yes X No
--- ---
<PAGE>
<TABLE>
<CAPTION>
PERIOD TYPE: Year PERIOD TYPE: Year
<S> <C> <C>
CASH 6,020 15,911
SECURITIES 54,338 11,688
RECEIVABLES 27,598 17,904
ALLOWANCE 0 0
INVENTORY 0 0
CURRENT ASSETS 33,618 33,861
PP&E 208,048 208,367
DEPRECIATION 60,526 66,712
TOTAL ASSETS 273,269 223,289
CURRENT LIABILITIES 15,388 13,754
BONDS 153,550 103,934
PREFERRED MANDATORY 0 0
PREFERRED 0 0
COMMON 0 0
OTHER SE 0 0
TOTAL LIABILITY AND EQUITY 273,269 223,289
SALES 113,746 20,727
TOTAL REVENUES 115,920 22,129
CGS 0 0
TOTAL COSTS 0 0
OTHER EXPENSES 43,577 15,813
LOSS PROVISION 0 0
INTEREST EXPENSE 13,991 5,046
INCOME PRETAX 0 0
INCOME TAX 0 0
INCOME CONTINUING 0 0
DISCONTINUED 0 0
EXTRAORDINARY 2,147 0
CHANGES 0 0
NET INCOME 56,205 1,270
EPS BASIC 0 0
(Value may contain up to 3 decimal places)
EPS DILUTED 0 0
(Value may contain up to 3 decimal places)
Footnote Text: (Note: Each footnote cannot exceed 256 characters, including spaces)
</TABLE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: August 4, 2000 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)
