Securities and Exchange Commission
Washington, DC 20549
Form 8-K
Current Report
Pursuant to Section 13 to 15(d) of the
Securities Exchange Act 1934
Date of Report December 2, 1994
(Date of earliest event reported)
California Energy Company, Inc.
(Exact name of registrant as specified in its charter)
Delaware 1-9874 94-2213782
(State of other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
10831 Old Mill Road Omaha, Nebraska 68154
(Address of principal executive offices) Zip Code
Registrant's Telephone Number, including area code: (402)330-8900
N/A
(Former name or former address, if changed since last report)
<PAGE>
ITEM 5. Other Events
On December 2, 1994, the Registrant announced that its
subsidiary, Patuha Power, Ltd., signed a Joint Operating Contract
for the development of the geothermal steam field with Pertamina
(the Indonesian national oil and natural gas company) and an
Energy Sales Contract with Pertamina and PLN (the Indonesian
national electric utility) to build, own and operate a geothermal
power facility at the Patuha geothermal field in Western Java.
Additionally, Registrant announced that definitive project
agreements (Joint Operating Contract and Energy Sales Agreement)
have been executed for its Dieng Project pursuant to the
undertaking announced on November 16, 1994.
A copy of the press release issued by the Registrant is set
forth as Exhibit 1 hereto and is incorporated herein by
reference.
ITEM 7. Financial Statements and Exhibits
Exhibit 1 - Press Release dated December 2, 1994.
<PAGE>
SIGNATURE
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.
California Energy Company, Inc.
By: /s/ Douglas L. Anderson
Douglas L. Anderson
Assistant Secretary
Dated: December 6, 1994
FOR IMMEDIATE RELEASE
David L. Sokol - Chairman and Chief Executive Officer (402) 330-8900
Dale R. Schuster - Vice President (402) 330-8900
CALIFORNIA ENERGY ANNOUNCES THE SIGNING OF INDONESIAN
CONTRACTS TOTALING UP TO U.S. $2 BILLION
OMAHA, NEBRASKA, DECEMBER 2, 1994 - California Energy Company, Inc.
("CE") (NYSE, PSE, LSE: CE) announced today that its subsidiary, Patuha
Power, Ltd., has signed definitive contracts to build, own and operate a
geothermal power facility at the Patuha geothermal field, located in Western
Java (the "Patuha Project"). CE executed the Joint Operation Contract for
the development and operation of the geothermal steam field with Pertamina
(the Indonesian national oil and natural gas company) and a "take or pay"
Energy Sales Contract with both Pertamina and PLN (the Indonesian national
electric utility).
Additionally, CE's Dieng Project definitive project agreements, pursuant
to CE's November 16, 1994 announced award and Undertaking to Sign, were also
executed.
The Patuha Project is structured as a Build-Own-Operate-Transfer
("BOOT") project under which CE and its joint venture partner, P.T. Enerindo
Supra Abadi, will construct a series of power production facilities up to a
maximum total aggregate output of 400 net megawatts (MW), own and operate
them for a 30-year cooperation period and, following repayment of the project
debt and recovery of invested capital during the cooperation period, will
transfer the facility to Pertamina at no cost. CE will maintain a majority
equity interest in the project and will be the managing partner of the joint
venture. P.T. Enerindo Supra Abadi maintains a 10% equity interest in the
Project with the option to increase its interest to 30%. Field development
and well drilling is expected to begin in early 1995 with construction to
follow in late 1995 or early 1996. Commercial operation of the initial unit
is expected to begin in early 1998. The cost of the full project could reach
U.S. $1 billion.
David Sokol stated, "We are very pleased to have signed our second
geothermal energy sales contract in Indonesia. I would like to express my
sincere gratitude to the Indonesian government for their hard work,
cooperation and high level of professionalism during the negotiation process
for this project and the previously announced Dieng Project." Mr. Sokol
added, "The Patuha Project, combined with our recently announced Dieng
Project, will bring our total megawatts under contract in Indonesia to 800
MW's and our total potential investment in Indonesia to nearly U.S. $2
billion. This investment represents approximately U.S. $1.2 billion in
United States exports of goods and services. We are very optimistic about
our future in the region and look forward to working with the Indonesian
government on meeting their current and future energy needs."
These two projects are the fourth and fifth major energy projects CECI
has placed under contract in Asia in the past 18 months. The company has
successfully financed and begun construction on more than U.S. $500 million
in geothermal power projects in the Philippines, totaling 300 MW's and
utilizing over U.S. $400 million in U.S. goods and services. In addition,
CECI recently signed contracts for a 140 MW combined hydroelectric and
irrigation project on the island of Luzon in the Philippines.
California Energy Company is a leading international developer, owner
and operator of geothermal and other environmentally responsible power
generation facilities. Its six existing facilities currently produce in
excess of 325 MW's of power, with an additional 300 MW's under construction
and 970 MW's now under contract. # # #
