content: 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 January 25, 1999
                   (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  January  25, 1999, CalEnergy Company, Inc.  ("CalEnergy")
  announced  that  it  signed  an  agreement  to  sell  its  minority
  ownership  interests  in the Coso geothermal  power  projects  (the
  "Projects") to Caithness Energy LLC ("Caithness") for an  aggregate
  consideration of $227 million dollars.  The price is  comprised  of
  $205  million  in cash and $5 million in contingent payments  along
  with  the  assumption of CalEnergy's affiliate's share  of  Project
  debt  totaling $67 million.  A copy of the press release issued  by
  CalEnergy  is  attached  hereto as Exhibit 1  and  is  incorporated
  herein by reference.
  
        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 including expectations regarding the
  future  results of operations of Registrant and MidAmerican  Energy
  Holdings  Company and the combined company, the intended  financing
  of  the  merger and receipt of regulatory approvals.  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  Proxy Statement and 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 January 25, 1999
  
  
  <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: January 25, 1999
  <PAGE>
                               EXHIBIT 1
  
  FOR IMMEDIATE RELEASE
  CalEnergy Signs Agreement to Sell Ownership Interests in Coso Power
  Projects
                                   
       OMAHA, NEBRASKA, January 25, 1999 -- CalEnergy Company, Inc.
  ("CalEnergy" or the "Company") (NYSE: CE; PCX; London) announced
  today the Company has signed an agreement to sell its minority
  ownership interests in the Coso geothermal power projects (the
  "Projects") to Caithness Energy LLC ("Caithness") for an aggregate
  consideration of $277 million dollars.  The price is comprised of
  $205 million in cash and $5 million in contingent payments along
  with the assumption of CalEnergy's affiliate's share of Project
  debt totaling $67 million.  The transaction, which is not subject
  to financing, is scheduled to close on February 25, 1999, at which
  time management of the Projects and ownership interests will be
  transferred to Caithness.
       
       CalEnergy's subsidiaries own interests of 46.4, 48 and 50
  percent respectively in the three Projects, Coso Finance Partners
  (Navy I), Coso Energy Developers (BLM) and Coso Power Developers
  (Navy II) (the "Coso Partnerships").  Caithness has been
  CalEnergy's partner in the Coso Partnerships since the Projects
  began commercial operation.
       
       CalEnergy will sell all of its indirect ownership interests in
  each of the Coso Partnerships in advance of the Company's proposed
  merger with MidAmerican Energy Holdings Company.  This sale is
  being implemented in order to comply with the Federal Energy
  Regulatory Commission's December 17, 1998 ruling to ensure the
  facilities will maintain their status as qualifying facilities
  under federal regulatory requirements.
       
       "We appreciate the dedication to excellence the Coso employees
  have demonstrated over the years and believe this to be a very
  positive transaction for both companies," said David L. Sokol,
  Chairman of the Board and Chief Executive Officer of CalEnergy.
  "Caithness has been a long-standing partner with our Company at
  Coso and has been involved with several renewable energy projects
  throughout California."
       
       "As one of the original developers of the Coso projects, we
  look forward to the opportunity to build upon the strong
  performance Coso has experienced in the past," said James Bishop,
  Sr., Chairman of Caithness.  "The importance of renewable forms of
  energy will become more evident as we enter the 21st century and we
  believe Coso to be one of the premier renewable resources in the
  U.S."
       
  
  
       CalEnergy Company, Inc. is a global energy company that
  manages and owns interests in approximately 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 approximately 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 4,400 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.
  
       Caithness is a privately owned developer and owner of
  interests in 15 operating power plants with a combined capacity of
  over 1,000 megawatts of electricity.  Caithness is based in New
  York City specializing in natural resource exploration and power
  plant development around the world.
                                   
  Press Contacts:
  CalEnergy Company, Inc.
  Craig Hammett - Senior Vice President & CFO       402-341-4500
  Patti McAtee - Director, Corp. Communications     402-341-4500
  Kate Inverarity - Brunswick, Media Relations      212-333-3810
  
  Caithness Energy LLC
  James D. Bishop, Jr.                         212-921-9099
  Leslie J. Gelber                             212-921-9099
  Christopher T. McCallion                     212-921-9099
  
  <PAGE>
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metadata_filer: {"company-data": {"conformed-name": "CALENERGY CO INC", "cik": "0000720556", "assigned-sic": "4991", "irs-number": "942213782", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-09874", "film-number": "99512511"}, "business-address": {"street1": "302 S 36TH ST", "street2": "STE 400", "city": "OMAHA", "state": "NE", "zip": "68131", "phone": "4023414500"}, "mail-address": {"street1": "302 SOUTH 36TH STREET", "street2": "SUITE 400-A", "city": "OMAHA", "state": "NE", "zip": "68131"}, "former-company": {"former-conformed-name": "CALIFORNIA ENERGY CO INC", "date-changed": "19920703"}}
text: 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 January 25, 1999
                   (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  January  25, 1999, CalEnergy Company, Inc.  ("CalEnergy")
  announced  that  it  signed  an  agreement  to  sell  its  minority
  ownership  interests  in the Coso geothermal  power  projects  (the
  "Projects") to Caithness Energy LLC ("Caithness") for an  aggregate
  consideration of $227 million dollars.  The price is  comprised  of
  $205  million  in cash and $5 million in contingent payments  along
  with  the  assumption of CalEnergy's affiliate's share  of  Project
  debt  totaling $67 million.  A copy of the press release issued  by
  CalEnergy  is  attached  hereto as Exhibit 1  and  is  incorporated
  herein by reference.
  
        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 including expectations regarding the
  future  results of operations of Registrant and MidAmerican  Energy
  Holdings  Company and the combined company, the intended  financing
  of  the  merger and receipt of regulatory approvals.  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  Proxy Statement and 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 January 25, 1999
  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: January 25, 1999
  EXHIBIT 1
  
  FOR IMMEDIATE RELEASE
  CalEnergy Signs Agreement to Sell Ownership Interests in Coso Power
  Projects
                                   
       OMAHA, NEBRASKA, January 25, 1999 -- CalEnergy Company, Inc.
  ("CalEnergy" or the "Company") (NYSE: CE; PCX; London) announced
  today the Company has signed an agreement to sell its minority
  ownership interests in the Coso geothermal power projects (the
  "Projects") to Caithness Energy LLC ("Caithness") for an aggregate
  consideration of $277 million dollars.  The price is comprised of
  $205 million in cash and $5 million in contingent payments along
  with the assumption of CalEnergy's affiliate's share of Project
  debt totaling $67 million.  The transaction, which is not subject
  to financing, is scheduled to close on February 25, 1999, at which
  time management of the Projects and ownership interests will be
  transferred to Caithness.
       
       CalEnergy's subsidiaries own interests of 46.4, 48 and 50
  percent respectively in the three Projects, Coso Finance Partners
  (Navy I), Coso Energy Developers (BLM) and Coso Power Developers
  (Navy II) (the "Coso Partnerships").  Caithness has been
  CalEnergy's partner in the Coso Partnerships since the Projects
  began commercial operation.
       
       CalEnergy will sell all of its indirect ownership interests in
  each of the Coso Partnerships in advance of the Company's proposed
  merger with MidAmerican Energy Holdings Company.  This sale is
  being implemented in order to comply with the Federal Energy
  Regulatory Commission's December 17, 1998 ruling to ensure the
  facilities will maintain their status as qualifying facilities
  under federal regulatory requirements.
       
       "We appreciate the dedication to excellence the Coso employees
  have demonstrated over the years and believe this to be a very
  positive transaction for both companies," said David L. Sokol,
  Chairman of the Board and Chief Executive Officer of CalEnergy.
  "Caithness has been a long-standing partner with our Company at
  Coso and has been involved with several renewable energy projects
  throughout California."
       
       "As one of the original developers of the Coso projects, we
  look forward to the opportunity to build upon the strong
  performance Coso has experienced in the past," said James Bishop,
  Sr., Chairman of Caithness.  "The importance of renewable forms of
  energy will become more evident as we enter the 21st century and we
  believe Coso to be one of the premier renewable resources in the
  U.S."
       
  
       CalEnergy Company, Inc. is a global energy company that
  manages and owns interests in approximately 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 approximately 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 4,400 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.
  
       Caithness is a privately owned developer and owner of
  interests in 15 operating power plants with a combined capacity of
  over 1,000 megawatts of electricity.  Caithness is based in New
  York City specializing in natural resource exploration and power
  plant development around the world.
                                   
  Press Contacts:
  CalEnergy Company, Inc.
  Craig Hammett - Senior Vice President & CFO       402-341-4500
  Patti McAtee - Director, Corp. Communications     402-341-4500
  Kate Inverarity - Brunswick, Media Relations      212-333-3810
  
  Caithness Energy LLC
  James D. Bishop, Jr.                         212-921-9099
  Leslie J. Gelber                             212-921-9099
  Christopher T. McCallion                     212-921-9099