June 28, 1996


The Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC  20549

Attention:    Filing Desk, Stop 1-4
         
   Re:   California Energy Company, Inc.
         401(k) Plan - Annual Report on Form 11-K    

Gentlemen:

   Submitted herewith via electronic transmission pursuant to EDGAR is
the Annual Report on Form 11-K for the fiscal year ended December 31,
1996 of California Energy Company, Inc. 

   The Form 11-K (including exhibits) is also being filed with the New
York Stock Exchange and the Pacific Stock Exchange concurrently
herewith.  

                         Sincerely,

                         /s/Douglas L. Anderson

                         Douglas L. Anderson
                         Assistant Secretary and
                         Assistant General Counsel
                         (U.S. and Corporate)


DLA:vmm
Enclosures
(edgar.11k)

cc:      John Sylvia
         Steven A. McArthur
         Greg Abel  
         Gary Yocum, Deloitte & Touche

                SECURITIES AND EXCHANGE COMMISSION
                      Washington, D.C.  20549


                             FORM 11-K
                           ANNUAL REPORT
                 Pursuant to Section 15(d) of the
                  Securities Exchange Act of 1934


(Mark One)

   [X]   ANNUAL REPORT PURSUANT 15(d) OF THE SECURITIES EXCHANGE ACT OF
         1934 [FEE REQUIRED].  For fiscal year ended December 31, 1995.


   [ ]   TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934 [NO FEE REQUIRED].  For this transition
         period from _________________ to ____________________.


Commission file number 1-9874


   A.    Full title of the plan and the address of the plan, if
different from that of the issuer named below:


               CALENERGY COMPANY, INC. 401 (k) PLAN


   B.    Name of issuer of the securities held pursuant to the plan and
the address of its principal executive office:

                      CALENERGY COMPANY, INC.
                  302 So. 36th Street, Suite 400
                      Omaha, Nebraska  68131








                SECURITIES AND EXCHANGE COMMISSION
                      Washington, D.C.  20548



                             FORM 11-K
                           ANNUAL REPORT

                 Pursuant to Section 15(d) of the
                  Securities Exchange Act of 1934




REQUIRED INFORMATION


The following financial statements are furnished for the plan:

1. Independent auditors' report.

2. Audited statements of net assets available for plan benefits as of
   December 31, 1995 and 1994.

3. Audited statements of changes in net assets available for plan
   benefits for the years ended December 31, 1995 and 1994.

4. Notes to financial statements.

5. Item 27(a) schedule of assets held for investment purposes at
   December 31, 1995.

6. Item 27(d) schedule of transactions in excess of 5% of plan value for
   the year ended December 31, 1995.

7. Exhibit I - Consent of independent public accountants with respect to
   the plan annual financial statements incorporated by reference on
   Form S-8.