FOR IMMEDIATE RELEASE
Exhibit 1
                                                                 
                                                                 
Craig M. Hammett - Vice President, Chief Financial Officer 402-341-4500
Jeffrey S. Laudin - Manager, Investor Relations            402-341-4500

      CalEnergy Closes $150 Million Financing and Commences Construction
                 of Patuha Unit 1 Geothermal Project in Indonesia
                                
     OMAHA, NE, September 2, 1997: CalEnergy Company, Inc.
("CalEnergy") (NYSE, PSE, and LSE Symbol:  CE) announced today it
closed the project financing for the Patuha Unit 1 geothermal
project located in Indonesia.  Patuha Unit 1 is an 80 net MW
geothermal project which constitutes the second phase of a
planned geothermal development by CalEnergy of approximately
1,200 MW under contract in Indonesia.  The first phase, Dieng
Unit 1, commenced construction in 1996 and is currently expected
to begin commercial operation in the fourth quarter of 1997.
With the existence of successful production wells at the Patuha
well-field, Patuha Unit 1 is currently expected to begin
commercial operation in mid-year 1999.  The Company intends to
continue developing the Dieng, Patuha and Bali steam fields in
Indonesia on a modular basis over the next three years with
construction of several additional generating units under
existing contracts as the well-fields are further successfully
developed.

     The Patuha Unit 1 construction loan of $150 million was
funded by Credit Suisse First Boston and a syndicate of
international commercial banks under the $400 million revolving
credit construction facility arranged earlier this year for CE
Indonesia Funding Corp. (CalEnergy's Indonesia funding vehicle)
to fund the construction of successive units.  The flexible
revolving credit structure contemplates investment grade debt
issuances in the capital markets by CE Indonesia Funding Corp. as
successive units are placed into commercial operation.  CE
Indonesia Funding Corp. is rated BBB- by Standard and Poor's and
has an indicative rating of Baa3 from Moody's.  CalEnergy owns a
44% equity interest in the Patuha project, and will operate and
manage the project as the managing general partner.

     "The closing of the Patuha Unit 1 financing and commencement
of construction marks the seventh international power project
which CalEnergy has successfully developed, financed and placed
into construction.  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 Credit Suisse First Boston and the Republic of
Indonesia."

     CalEnergy, which manages and owns interest 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.

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