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 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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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": "98711399"}, "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 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)
  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
  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
  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
                                   
                                 # # #