Securities and Exchange Commission
Washington, DC 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act 1934
Date of Report September 24, 1997
(Date of earliest event reported)
CalEnergy 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)
302 South 36th Street, Suite 400, Omaha, NE 68131
(Address of principal executive offices) Zip Code
Registrant's Telephone Number, including area code: (402) 341-4500
N/A
(Former name or former address, if changed since last report)
Item 5. Other Events
On September 24, 1997, the Registrant announced that, in
light of recent Indonesian government announcements regarding the
possible delay of certain private power contracts due to
fluctuations in the value of the Indonesian currency, it had
received assurances from Indonesian government officials
confirming the status of its Indonesia geothermal projects and
that its existing construction schedule for such projects should
be unaffected. A Press release issued by the Registrant is
attached hereto as Exhibit 1 and is incorporated herein by
reference.
Item 7. Financial Statements and Exhibits
Exhibit 1 - Press Release dated September 24, 1997
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.
CalEnergy Company, Inc.
By: \s\ Douglas L. Anderson
Douglas L. Anderson
Assistant General Counsel
and Assistant Secretary
Dated: September 24, 1997
Exhibit 1
FOR IMMEDIATE RELEASE
Craig M. Hammett - Vice President, Chief Financial Officer 402-341-4500
Jeffrey S. Laudin - Manager, Investor Relations 402-341-4500
CalEnergy Confirms Status of Geothermal Projects in Indonesia
and Existing Construction Schedule Unchanged
Omaha, NE, September 24, 1997: CalEnergy Company, Inc.
("CalEnergy") (NYSE, PSE, and LSE Symbol: CE) announced today
that its planned operations in Indonesia should not be affected
by recent announcements by the government of Indonesia regarding
the possible delay of private power projects due to recent
fluctuations in the value of the Indonesian currency. On
September 20, 1997, a Presidential Decree was issued in
Indonesia, providing for government action to the effect that, in
order to address certain recent fluctuations in the value of the
Indonesia currency, the start-up dates for a number of private
power projects would be: (i) continued according to their
initial schedule (because construction process was underway),
(ii) postponed as to their start-up dates (because they are not
yet in progress) until economic conditions have recovered, or
(iii) reviewed with a view to being continued, postponed or
rescheduled, depending on the status of those projects.
"We have confirmed with the Indonesian government that the
government's proposed delay in the start-up dates of certain
private power projects will not impact the construction schedule
for our existing projects at Dieng, Patuha and Bali which have
already commenced well drilling, construction related work or for
which financing has been arranged. Dieng Units 1, 2 and 3,
Patuha Units 1 and 2 and Bali Units 1 and 2 fall into this
category," stated Don O'Shei, Jr., President and Chief Operating
Officer of CalEnergy, Asia.
"Moreover, the existing construction build-out schedule for
the later units (Dieng Unit 4, Patuha Units 3 and 4 and Bali
Units 3 and 4) should not be impacted by any proposed delay since
these units were not scheduled to commence construction until
after 1998 in any event. In this regard, the Company notes that,
unlike certain other private power contracts, the Company's
contracts and government undertakings for the Dieng, Patuha and
Bali projects do not by their terms permit any delays by the
government and the Indonesian government has confirmed that it
intends to fully honor all existing obligations. Moreover, given
Indonesia's demonstrated need for power and its emphasis on
maintaining sufficient amounts of oil for export, the Company's
geothermal projects are significantly advantaged by their
indigenous fuel source," Mr. O'Shei stated.
"These Indonesian projects, as is the case with all our
Asian projects, are paid in U.S. dollars and carry political risk
insurance for our equity investment," said David L. Sokol,
Chairman and Chief Executive Officer. "We believe our projects
continue to set a good example of how the public and private
sectors can work together to develop infrastructure projects and
we are very pleased with the support we have received from the
Republic of Indonesia."
CalEnergy, which manages and owns interests in over 5,000
net MW of power generation facilities in operation, construction
and development worldwide, currently operates 20 generating
facilities and also supplies and distributes electricity to 1.5
million customers.