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 $350 Million 7.63% Senior Note Offering
                                
     OMAHA, NE, October 28, 1997:  CalEnergy Company, Inc.
("CalEnergy" or the "Company") (NYSE, PCX and LSE Symbol: CE)
announced today that it closed the sale of $350 million aggregate
principal amount of its 7.63% Senior Notes due 2007 ("Notes").
The notes have been rated BB+, Bal and BBB- by Standard & Poor's,
Moody's and Duff & Phelps, respectively.

     The Company will use the net proceeds from the $350 million
Senior Note Offering, together with approximately $700 million in
net proceeds from the issuance of 19.1 million shares of common
stock which closed on October 17 and general corporate funds of
the Company, to complete the acquisition of all of the interests
of Kiewit Diversified Group Inc. ("KDG") in the various
international power generation projects ("Joint Venture Energy
Projects") which are jointly owned with the Company and managed
by the Company, as well as the repurchase of all of KDG's
outstanding ownership interests in the Company's Common Stock.
The KDG acquisition agreement provides that the Company will pay
$1,155,000,000 for KDG's ownership interest in the Joint Venture
Energy Projects and the Company's Common Stock.  The closing
under the KDG acquisition agreement is expected to occur in
January, 1998.

     The Company, which manages and owns interests 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.
www.calenergy.com

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