CALENERGY CO INC
8-K, 1998-09-18
COGENERATION SERVICES & SMALL POWER PRODUCERS
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               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 17, 1998
               (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)
<PAGE>
Item 5.  Other Events

     On September 17, 1998, the Registrant announced that it has
arranged for the sale of $1.4 billion aggregate principal amount of
its Senior Notes and Bonds.  The Senior Notes and Bonds are subject
to optional redemption at any time at par plus payment of a make-
whole premium.

     Certain information included in this report contains forward-
looking statements made pursuant to the Private Securities
Litigation Reform Act of 1995 ("Reform Act").  Such statements are
based on current expectations and involve a number of known and
unknown risks and uncertainties that could cause the actual results
and performance of the Registrant to differ materially from any
expected future results or performance, expressed or implied, by
the forward-looking statements.  In connection with the safe harbor
provisions of the Reform Act, the Registrant has identified
important factors that could cause actual results to differ
materially from such expectations, including development
uncertainty, operating uncertainty, acquisition uncertainty,
uncertainties relating to doing business outside of the United
States, uncertainties relating to geothermal resources,
uncertainties relating to domestic and international (and in
particular, Indonesian) economic and political conditions and
uncertainties regarding the impact of regulations, changes in
government policy, industry deregulation and competition.
Reference is made to all of the Registrant's SEC Filings, including
the Registrant's Report on Form 8-K dated March 6, 1998,
incorporated herein by reference, for a description of such
factors.  The Company assumes no responsibility to update forward-
looking information contained herein.


Item 7.  Financial Statements and Exhibits

Exhibit 1 - Press Release dated September 17, 1998

<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.

                                   CalEnergy Company, Inc.




                                    By: \s\ Douglas L. Anderson
                                        Douglas L. Anderson
                                        Assistant Secretary and
                                        Assistant General Counsel




Dated: September 17, 1998

<PAGE>
EXHIBIT 1

FOR IMMEDIATE RELEASE

Craig M. Hammett - Senior Vice President, Chief Financial Officer 402-341-4500
Craig S. Allen - Manager, Investor Relations         402-341-4500
Patti J. McAtee - Director, Corporate Communications 402-341-4500
Kate Inverarity - Brunswick                          212-333-3810

  CalEnergy Announces $1.4 Billion Senior Note and Bond Offering

     OMAHA, NEBRASKA, September 17, 1998 -- CalEnergy Company, Inc.
("CalEnergy"  or the "Company") (NYSE:  CE; PCX and LSE)  announced
today  that it has arranged for the sale of $1.4 billion  aggregate
principal amount of its Senior Notes and Bonds having the following
interest rates, principal amounts and maturities:  $215 million  of
its  6.96% Senior Notes due 2003, $260 million of its 7.23%  Senior
Notes due 2005, $450 million of its 7.52% Senior Notes due 2008 and
$475  million of its 8.48% Senior Bonds due 2028.  The Senior Notes
and  Bonds  are subject to optional redemption at any time  at  par
plus payment of a make-whole premium.
     
     Approximately $830 million in net proceeds of the Senior  Note
and  Bond Offering, together with approximately $600 million in net
proceeds  from  an  expected equity offering later  this  year  and
approximately  $740 million in net proceeds from an  expected  non-
recourse financing later this year are expected to be used to  fund
the proposed MidAmerican merger.  Approximately $543 million of the
net proceeds of the Senior Note and Bond Offering is expected to be
used  to  refinance  the  Company's outstanding  10  1/4  %  Senior
Discount Notes, which become callable on
January 15, 1999.
     
     Credit  Suisse First Boston Corporation, Lehman Brothers  Inc.
and  Goldman, Sachs & Co. are managers of the Senior Note and  Bond
Offering.
     
     A prospectus relating to these securities may be obtained from
Credit Suisse First Boston,
11 Madison Avenue, New York, New York  10010-3629, (212) 325-2000.

      This  release shall not constitute an offer to  sell  or  the
solicitation  of an offer to buy nor shall there  be  any  sale  of
these securities in any state in which such offer, solicitation, or
sale would be unlawful prior to registration or qualification under
the securities law of any such state.

     CalEnergy  is  a global energy company that manages  and  owns
interests   in  over  5,000  net  megawatts  of  power   generation
facilities  in  operation, construction and development  worldwide.
The  Company  develops  and produces energy from  diversified  fuel
sources   including  geothermal,  natural  gas  and  hydroelectric.
Through  its  subsidiary Northern Electric, CalEnergy supplies  and
distributes  electricity and gas to 2.0 million  customers  in  the
United Kingdom.  CalEnergy conducts business in the U.S., U.K., the
Philippines, Indonesia, Poland and Australia, and employs more than
4,200  people  worldwide.  For the year ended  December  31,  1997,
CalEnergy generated revenues of over $2.2 billion and had assets of
approximately $7.5 billion.
     
                         www.calenergy.com
                                 
                               # # #

<PAGE>


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