EXHIBIT 1


FOR IMMEDIATE RELEASE

Craig M. Hammett - Senior Vice President, Chief Financial Officer
(402) 341-4500


      CalEnergy Closes Kiewit Energy Project Joint Venture
                Acquisition and Stock Repurchase
                                
                                
     OMAHA, NE, January 5, 1998:  CalEnergy Company, Inc. (the
"Company") (NYSE, PCX and LSE Symbol:  CE) announced today that
on Friday, January 2, 1998 it completed the previously announced
acquisition of all of the interests of Kiewit Diversified Group
Inc. ("KDG") in the various international power generation
projects and the 30% interest in Northern Electric plc (a
regional electric distribution and supply company with over 1.5
million customers in the U.K.) 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 (20,231,065 shares).

     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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