FORM 8-K

                                 CURRENT REPORT

                     PURSUANT TO SECTION 13 OR 15 (d) of the
                         SECURITIES EXCHANGE ACT OF 1934


         Date of Report (Date of earliest event reported) February 4, 2000
                                                          ----------------

                          CAITHNESS COSO FUNDING CORP.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

                                    Delaware
                          -----------------------------
                          (State or Other Jurisdiction
                               of Incorporation)

      333-83815                                               94-3328762
 --------------------                                     -------------------
(Commission File No.)                                    (IRS Employer
                                                          Identification No.)

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

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

                                 Not Applicable
          -------------------------------------------------------------
          (Former name or former address, if changed since last report)






ITEM 5.    Other Events

                  Coso Finance Partners (the "Navy I partnership"),  Coso Energy
Developers  (the  "BLM  partnership"),  Coso  Power  Developers  (the  "Navy  II
partnership", and, together with the BLM partnership and the Navy I partnership,
the "Coso  partnerships"),  each an affiliate of Caithness  Coso Funding  Corp.,
have entered into confidential settlement agreements with mutual releases of the
parties  thereto  with no  admission  of  liability,  to resolve  the  following
litigation  proceedings involving the Coso partnerships:  the Edison litigation,
the  Dow  litigation  and  the  Fuji  litigation.  The  Edison  litigation,  the
settlement  of  which is  subject  to  California  Public  Utilities  Commission
("CPUC") approval,  involved,  among other things, claims by Southern California
Edison Company and its affiliates ("Edison") of surreptitious venting of certain
non-condensable gases, claims for other damages and various cross-claims made by
the Coso partnerships and their affiliates.  The Dow litigation  involved claims
for  damages  incurred  by the BLM  partnership  prior  to 1998 as a  result  of
problems associated with the installation by the Dow Chemical Company in 1992 of
a hydrogen sulfide abatement system at the BLM partnership's  project.  The Fuji
litigation involved a breach of warranty claim related to the Coso partnerships'
eight  geothermal  turbine  rotors  purchased  from Fuji  Electric  Co.  and its
affiliates.

                  The aggregate  financial  result of the settlements  described
above  (subject,  in case of the Edison  settlement,  to CPUC approval) will not
have a material financial effect on Caithness Coso Funding Corp.

                                   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 hereunto duly authorized.



                                                    CAITHNESS COSO FUNDING CORP.
                                                     a Delaware corporation

                                              By:   /s/ Christopher T. McCallion
                                                   -----------------------------
                                                    Christopher T. McCallion
                                                    Executive Vice President and
                                                    Chief Financial Officer

Dated:   February 23, 2000