CALENERGY COMPANY, INC.
401(K) SAVINGS PLAN
Financial Statements for the Years Ended
December 31, 1997 and 1996, Supplemental
Schedules for the Year Ended December 31, 1997
and Independent Auditors' Report
CALENERGY COMPANY, INC. 401(K) SAVINGS PLAN
TABLE OF CONTENTS
Page
Independent Auditors' Report 1
Financial Statements:
Statements of Net Assets Available for Benefits
as of December 31, 1997 and 1996 2-3
Statements of Changes in Net Assets Available for Benefits
for the Years Ended December 31, 1997 and 1996 4-5
Notes to Financial Statements 6-8
Supplemental Schedules:
Item 27a - Schedule of Assets Held for Investment Purposes at
December 31, 1997 9
Item 27d - Schedule of Reportable Transactions for
the Year Ended December 31, 1997 10
Supplemental schedules not listed above are omitted because of the
absence of conditions under which they are required.
Exhibit I - Independent Auditors' Consent 11
INDEPENDENT AUDITORS' REPORT
To the Trustees of CalEnergy Company, Inc.
401(k) Savings Plan
We have audited the accompanying statements of net assets
available for benefits of CalEnergy Company, Inc. 401(k) Savings
Plan (the "Plan") as of December 31, 1997 and 1996, and the
related statements of changes in net assets available for
benefits for the years then ended. These financial statements
are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all
material respects, the net assets available for benefits of the
Plan as of December 31, 1997 and 1996, and changes in net assets
available for benefits for the years then ended in conformity
with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion
on the basic financial statements taken as a whole. The
supplemental schedules listed in the table of contents are
presented for the purpose of additional analysis and are not a
required part of the basic financial statements, but are
supplementary information required by the Department of Labor's
Rules and Regulations for Reporting and Disclosure under the
Employee Retirement Income Security Act of 1974. The
supplemental information by fund in the statements of net assets
available for benefits and the statements of changes in net
assets available for benefits is presented for purposes of
additional analysis rather than to present net assets available
for benefits and changes in net assets available for benefits of
the individual funds. The supplemental schedules and
supplemental information by fund is the responsibility of the
Plan's management. Such supplemental schedules and supplemental
information by fund have been subjected to the auditing
procedures applied in the audits of the basic financial
statements and, in our opinion, are fairly stated in all material
respects when considered in relation to the basic financial
statements taken as a whole.
DELOITTE & TOUCHE LLP
Omaha, Nebraska
June 23, 1998
CALENERGY COMPANY,
INC. 401(k) SAVINGS
PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1997
Supplemental Information by Fund
Dreyfus Dreyfus
Capital Capital New Dreyfus
Preservation Value Leaders GNMA Loan
ASSETS Total Fund Fund Fund Fund Fund
INVESTMENTS, at fair value:
Capital Preservation Fund $3,701,224 $3,701,224 $ - $ - $ - $ -
Dreyfus Capital Value Fund 177,737 - 177,737 - - -
Dreyfus New Leaders Fund 8,239,774 - - 8,239,774 - -
Dreyfus GNMA Fund 2,360,965 - - - 2,360,965 -
Loan Fund 1,512,997 - - - - 1,512,997
CalEnergy Stock 5,722,543 - - - - -
Money Market Fund 19,560 - - - - -
Dreyfus Strategic Income 177,367 - - - - -
Dreyfus Disciplined Stock
Fund 1,804,476 - - - - -
Dreyfus Apprecation Fund 1,609,851 - - - - -
Total investments 25,326,494 3,701,224 177,737 8,239,774 2,360,965 1,512,997
CONTRIBUTIONS RECEIVABLE:
Employer 160,625 20,892 - 50,766 13,474 -
NET ASSETS AVAILABLE
FOR BENEFITS 25,487,119 3,722,116 177,737 8,290,540 2,374,439 1,512,997
The accompanying notes are an integral part of the financial statements.
CALENERGY COMPANY,
INC. 401(k) SAVINGS
PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1997
Supplemental Information by Fund
Dreyfus
Dreyfus Disciplined Dreyfus
CalEnergy Strategic Stock Appreciation
ASSETS Total Stock Income Fund Fund
INVESTMENTS, at fair value:
Capital Preservation Fund $3,701,224 - - - -
Dreyfus Capital Value Fund 177,737 - - - -
Dreyfus New Leaders Fund 8,239,774 - - - -
Dreyfus GNMA Fund 2,360,965 - - - -
Loan Fund 1,512,997 - - - -
CalEnergy Stock 5,722,543 5,722,543 - - -
Money Market Fund 19,560 19,560 - - -
Dreyfus Strategic Income 177,367 - 177,367 - -
Dreyfus Disciplined Stock
Fund 1,804,476 - - 1,804,476 -
Dreyfus Apprecation Fund 1,609,851 - - - 1,609,851
Total investments 25,326,494 5,742,103 177,367 1,804,476 1,609,851
CONTRIBUTIONS RECEIVABLE:
Employer 160,625 40,098 2,375 14,253 18,767
NET ASSETS AVAILABLE
FOR BENEFITS 25,487,119 5,782,201 179,742 1,818,729 1,628,618
The accompanying notes are an integral part of the financial statements.
CALENERGY COMPANY, INC.
401(k) SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1996
Supplemental Information by Fund
Dreyfus Dreyfus New
England
Capital Capital New Dreyfus Guaranteed
Preservation Value Leaders GNMA Investment Loan
ASSETS Total Fund Fund Fund Fund Fund Fund
INVESTMENTS,
at fair value:
Capital Preservation
Fund 3,965,776 3,965,776 - - - - -
Dreyfus Capital Value
Fund 590,229 - 590,229 - - - -
Dreyfus New
Leaders Fund 7,590,567 - - 7,590,567 - - -
Dreyfus GNMA Fund 2,756,684 - - - 2,756,684 - -
Loan Fund 1,523,623 - - - - - 1,523,623
CalEnergy Stock 5,535,919 - - - - - -
Money Market Fund 30,046 17,800 - 18 - - -
New England Guaranteed
Investment Fund 800,191 - - - - 800,191 -
Dreyfus Strategic Income 36,926 - - - - - -
Dreyfus Disciplined
Stock Fund 918,447 - - - - - -
Dreyfus Apprecation Fund 346,410 - - - - - -
Total investments 24,094,818 3,983,576 590,229 7,590,585 2,756,684 800,191 1,523,623
CONTRIBUTIONS RECEIVABLE:
Employer 188,642 34,638 - 75,660 20,321 - -
Employee 94,110 20,043 - 36,168 10,997 - -
Total contributions
receivable 282,752 54,681 - 111,828 31,318 - -
NET ASSETS AVAILABLE
FOR BENEFITS 24,377,570 4,038,257 590,229 7,702,413 2,788,002 800,191 1,523,623
The accompanying notes are an integral part of the financial statements.
CALENERGY COMPANY, INC.
401(k) SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1996
Supplemental Information by Fund
Dreyfus
Dreyfus Disciplined Dreyfus
CalEnergy Strategic Stock Appreciation
ASSETS Total Stock Income Fund Fund
INVESTMENTS,
at fair value:
Capital Preservation
Fund 3,965,776 - - - -
Dreyfus Capital Value
Fund 590,229 - - - -
Dreyfus New Leaders
Fund 7,590,567 - - - -
Dreyfus GNMA Fund 2,756,684 - - - -
Loan Fund 1,523,623 - - - -
CalEnergy Stock 5,535,919 5,535,919 - - -
Money Market Fund 30,046 12,161 - 12 55
New England Guaranteed
Investment Fund 800,191 - - - -
Dreyfus Strategic Income 36,926 - 36,926 - -
Dreyfus Disciplined
Stock Fund 918,447 - - 918,447 -
Dreyfus Appreciation
Fund 346,410 - - - 346,410
Total investments 24,094,818 5,548,080 36,926 918,459 346,465
CONTRIBUTIONS RECEIVABLE:
Employer 188,642 41,619 892 6,844 8,668
Employee 94,110 19,763 542 2,764 3,833
Total contributions
receivable 282,752 61,382 1,434 9,608 12,501
NET ASSETS AVAILABLE
FOR BENEFITS 24,377,570 5,609,462 38,360 928,067 358,966
The accompanying notes are an integral part of the financial statements.
CALENERGY COMPANY, INC. 401(k) SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR
BENEFITS
YEAR ENDED DECEMBER 31, 1997
Supplemental Information by Fund
Dreyfus Dreyfus New
England
Capital Capital New Dreyfus Guaranteed
Preservation Value Leaders GNMA Investment Loan
Total Fund Fund Fund Fund Fund Fund
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Investment Income:
Interest 471,309 224,613 - 93,261 - 19,665 131,899
Dividend income 206,514 85 25,923 - 144,741 - -
Net appreciation
(depreciation)
in the fair value
of investments 789,966 - (137,083) 1,320,440 (26,354) - -
Net investment
income 1,467,789 224,698 (111,160) 1,413,701 118,387 19,665 131,899
Contributions:
Employer 1,204,795 193,090 - 443,543 116,622 - -
Employee 2,518,823 449,717 - 862,098 261,667 - -
Rollovers 47,501 846 - 5,381 1,270 - -
Total
contributions 3,771,119 643,653 - 1,311,022 379,559 - -
Total additions 5,238,908 868,351 (111,160) 2,724,723 497,946 19,665 131,899
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Distributions to terminated
participants (2,064,257)(537,906) (41,161) (647,236) (175,303) - (207,553)
Other
distributions (2,065,102)(453,827) (43,947) (319,144) (153,203)(819,856) (15,943)
Total
deductions (4,129,359)(991,733) (85,108) (966,380) (328,506)(819,856)(223,496)
NET TRANSFERS
AMONG FUNDS - (192,759) (216,224)(1,170,216)(583,003) - 80,971
NET INCREASE
(DECREASE) 1,109,549 (316,141) (412,492) 588,127 (413,563)(800,191) (10,626)
NET ASSETS AVAILABLE
FOR BENEFITS,
Beginning of
the Year 24,377,570 4,038,257 590,229 7,702,413 2,788,002 800,191 1,523,623
NET ASSETS AVAILABLE
FOR BENEFITS,
End of the
Year 25,487,119 3,722,116 177,737 8,290,540 2,374,439 - 1,512,997
The accompanying notes are an integral part of the financial statements.
CALENERGY COMPANY, INC. 401(k) SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR
BENEFITS
YEAR ENDED DECEMBER 31, 1997
Dreyfus
Dreyfus Disciplined Dreyfus
CalEnergy Strategic Stock Appreciation
Total Stock Income Fund Fund
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Investment Income:
Interest 471,309 1,871 - - -
Dividend income 206,514 - 11,262 11,781 12,722
Net appreciation
(depreciation)
in the fair value of
investments 789,966 (943,866) 6,199 374,662 195,968
Net investment
income 1,467,789 (941,995) 17,461 386,443 208,690
Contributions:
Employer 1,204,795 285,704 9,634 68,417 87,785
Employee 2,518,823 580,897 20,220 144,895 199,329
Rollovers 47,501 10,269 1,270 13,212 15,253
Total contributions 3,771,119 876,870 31,124 226,524 302,367
Total additions 5,238,908 (65,125) 48,585 612,967 511,057
DEDUCTIONS FROM NET
ASSETS ATTRIBUTED TO:
Distributions to terminated
participants (2,064,257) (299,251) (38,665) (84,961) (32,221)
Other
distributions (2,065,102) (163,310) (14,360) (28,390) (53,122)
Total deductions (4,129,359) (462,561) (53,025) (113,351) (85,343)
NET TRANSFERS AMONG
FUNDS - 700,425 145,822 391,046 843,938
NET INCREASE
(DECREASE) 1,109,549 172,739 141,382 890,662 1,269,652
NET ASSETS AVAILABLE
FOR BENEFITS,
Beginning of
the Year 24,377,570 5,609,462 38,360 928,067 358,966
NET ASSETS AVAILABLE
FOR BENEFITS,
End of the Year 25,487,119 5,782,201 179,742 1,818,729 1,628,618
The accompanying notes are an integral part of the financial statements.
CALENERGY COMPANY, INC.
401(k) SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR
BENEFITS
YEAR ENDED DECEMBER 31, 1996
Supplemental Information by Fund
Dreyfus Dreyfus New
England
Capital Capital New Dreyfus Guaranteed
Preservation Value Leaders GNMA Investment Loan
Total Fund Fund Fund Fund Fund Fund
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Investment Income:
Interest 384,959 214,522 - 12,315 - 35,569 120,577
Dividend income 786,843 189 35,545 520,210 166,792 - -
Net appreciation
(depreciation)
in the fair value of
investments 2,444,956 - (74,146) 415,476 (53,702) - -
Net investment income 3,616,758 214,711 (38,601) 948,001 113,090 35,569 120,577
Contributions:
Employer 1,067,142 216,504 54,462 407,741 149,427 - -
Employee 2,531,202 518,477 136,949 959,108 359,584 - -
Rollovers 2,097,877 68,708 3,995 1,019,270 137,118 - 67,312
Total contributions 5,696,221 803,689 195,406 2,386,119 646,129 - 67,312
Total additions 9,312,979 1,018,400 156,805 3,334,120 759,219 35,569 187,889
DEDUCTIONS FROM
NET ASSETS
ATTRIBUTED TO:
Distributions to terminated
participants (1,516,408) (455,486) (75,924) (414,302)(246,237) - (93,423)
NET TRANSFERS
AMONG FUNDS - (260,433)(188,591) 58,928 (427,428) - 264,189
NET INCREASE
(DECREASE) 7,796,571 302,481 (107,710)2,978,746 85,554 35,569 358,655
NET ASSETS AVAILABLE
FOR BENEFITS,
Beginning of
the Year 16,580,999 3,735,776 697,939 4,723,667 2,702,448 764,622 1,164,968
NET ASSETS AVAILABLE
FOR BENEFITS,
End of the Year 24,377,570 4,038,257 590,229 7,702,413 2,788,002 800,191 1,523,623
The accompanying notes are an integral part of the financial statements.
CALENERGY COMPANY, INC.
401(k) SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR
BENEFITS
YEAR ENDED DECEMBER 31,1996
Dreyfus Disciplined Dreyfus
CalEnergy Strategic Stock Appreciation
Total Stock Income Fund Fund
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Investment Income:
Interest 384,959 1,976 - - -
Dividend income 786,843 - 241 60,626 3,240
Net appreciation
(depreciation)
in the fair value
of investments 2,444,956 2,177,781 127 (21,458) 878
Net investment
income 3,616,758 2,179,757 368 39,168 4,118
Contributions:
Employer 1,067,142 222,604 892 6,844 8,668
Employee 2,531,202 529,522 1,973 9,492 16,097
Rollovers 2,097,877 35,138 - 766,336 -
Total contributions 5,696,221 787,264 2,865 782,672 24,765
Total additions 9,312,979 2,967,021 3,233 821,840 28,883
DEDUCTIONS FROM
NET ASSETS
ATTRIBUTED TO:
Distributions
to terminated
participants (1,516,408)(231,036) - - -
NET TRANSFERS AMONG
FUNDS - 81,898 35,127 106,227 330,083
NET INCREASE
(DECREASE) 7,796,571 2,817,883 38,360 928,067 358,966
NET ASSETS AVAILABLE
FOR BENEFITS,
Beginning of
the Year 16,580,999 2,791,579 - - -
NET ASSETS AVAILABLE
FOR BENEFITS,
End of the Year 24,377,570 5,609,462 38,360 928,067 358,966
The accompanying notes are an integral part of the financial statements.
CALENERGY COMPANY, INC. 401(K) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1997 AND 1996
1. DESCRIPTION OF PLAN
The following description of the CalEnergy Company, Inc. 401(k)
Savings Plan (the "Plan") provides only general information.
Participants should refer to the Summary Plan Description for a
more complete description of the Plan's provisions.
General - On August 26, 1989, CalEnergy Company, Inc. (the
"Company") established the Plan with an effective date
retroactive to January 1, 1989. The Plan is a defined
contribution plan covering all active employees of the Company.
It is subject to the provisions of the Employee Retirement
Income Security Act of 1974 (ERISA), as amended. Effective
November 5, 1996, assets of $1,816,337 of the Falcon Seaboard
Resources, Inc. 401(k) Profit Sharing Plan were merged into the
Plan.
Trustee - The Dreyfus Trust Company ("Dreyfus") is the Plan
Trustee and executes all investment transactions and
recordkeeping. All investment transactions are determined based
on the allocation of investments as directed by the
participants.
Contributions - Participants may make salary deferrals up to a
maximum of the lesser of 15% of the participant's eligible
salary or $9,500 per year in 1997 and 1996.
The Company matches employee contributions at 100 percent of the
first $1,000 of employees deferral up to a maximum of 10 percent
of each participant's eligible earnings as defined and 30
percent of the amount above $1,000 up to 10 percent of each
participant's eligible earnings as defined.
Participant Accounts - Each participant's account is credited
with the participant's contribution and an allocation of (a) the
Company's contribution and (b) Plan earnings (or losses).
Allocations are based on participant earnings on account
balances, as defined. The benefit to which a participant is
entitled is the benefit that can be provided from the
participant's account.
Vesting - Participants are immediately vested in their salary
deferral contributions, the Company's matching contributions and
net earnings thereon.
Payment of Benefits - Upon termination of service, a participant
may elect to receive a lump-sum distribution equal to the fair
value of his or her account or maintain the account with the
Plan until retirement. "Pre-'91 Accruals," as defined, may be
payable in the form of non-transferable annuity contracts.
2. SUMMARY OF ACCOUNTING POLICIES
Basis of Accounting - The accompanying financial statements have
been prepared on the accrual basis of accounting.
Investments - Investments are stated at fair value. The Company
common stock is valued at the last published sales price at the
end of the Plan year. The Dreyfus funds and the Capital
Preservation Fund are valued at quoted market prices.
Participant loans are valued at cost which approximates fair
value.
The CalEnergy stock fund includes a balance of 199,045 and
164,637 shares of the Company's common stock at December 31,
1997 and 1996, respectively.
Net Appreciation (Depreciation) in the Fair Value of Investments
- The Plan presents in the statement of changes in net assets
available for benefits the net appreciation (depreciation) in
the fair value of investments which consists of the realized
gains or losses and the unrealized appreciation (depreciation)
on those investments. Such amounts are based on the beginning
of the year fair value, or cost if purchased during the year.
Administrative Expenses - All costs of Plan administration are
paid by the Company.
Use of Estimates - The preparation of financial statements in
conformity with generally accepted accounting principles
requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and the
disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could
differ from those estimates.
3. OTHER DISTRIBUTIONS
Effective July 1, 1997, the accounts for employees of a
subsidiary of the Company were transferred to a third party in
connection with the sale of that subsidiary on June 30, 1997.
Total assets transferred amounted to $2,065,102.
4. TAX STATUS
The Internal Revenue Service has determined and informed the
Company by a letter dated October 31, 1996, that the Plan and
related trust are designed in accordance with applicable
sections of the Internal Revenue Code (IRC). The Plan has been
amended since receiving the determination letter. However, the
Plan sponsor believes that the Plan is designed and is currently
being operated in compliance with the applicable requirements of
the IRC. Therefore, no provision for income taxes has been
included in the Plan's financial statements.
5. PLAN TERMINATION
Although it has not expressed any intent to do so, the Company
has the right to discontinue its contributions at any time and
to terminate the Plan subject to the provisions of ERISA. In
the event the Plan is terminated, affected participants will
receive all amounts credited to their accounts.
6. LOANS TO PARTICIPANTS
Active participants may borrow from their vested account
balances subject to certain limitations. These loans bear
interest at the prime rate plus 1% (which is fixed at the
inception of the loan) and maturities may not exceed five years.
At December 31, 1997 and 1996, loans outstanding bear interest
rates ranging from 9.25% to 10.0%.
7. RELATED PARTY TRANSACTIONS
Certain Plan investments are shares of mutual funds managed by
the Dreyfus Trust Company. The Dreyfus Trust Company is the
trustee as defined by the Plan and, therefore, these
transactions qualify as party-in-interest. In addition,
transactions of the CalEnergy stock fund qualify as party-in-
interest.
CALENERGY COMPANY, INC.
401(k)SAVINGS PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1997
Column A Column B Column C Column D Column E
Description of
Investment,
Including Collateral,
Rate
Identity of Issuer, of Interest, Maturity Date Current
Borrower, Lessor, or Par, or Maturity Value Cost Value
Similar Party
LaSalle National Trust Capital Preservation Fund $3,701,224 $3,701,224
* Dreyfus Corporation Capital Value Fund 319,142 177,737
* Dreyfus Corporation New Leaders Fund 7,099,314 8,239,774
* Dreyfus Corporation GNMA Fund 2,400,351 2,360,965
* CalEnergy CalEnergy Common Stock,
Company, Inc. 199,045 shares 4,890,555 5,742,103
* Dreyfus Corporation Loan Fund, interest rates - 1,512,997
ranging from 9.25% to 10%
* Dreyfus Corporation Strategic Income 192,617 177,367
* Dreyfus Corporation Disciplined Stock Fund 1,685,375 1,804,476
* Dreyfus Corporation Appreciation Fund 1,452,286 1,609,851
Total investments $21,740,864$25,326,494
* Party-in-interest.
CALENERGY COMPANY, INC. 401(k) SAVINGS PLAN
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
Series Transactions, When Aggregated, Involving an Amount in Excess of
Five Percent of the Current Value of Plan Assets
Column A Column B Column C Column D Column E Column F Column G
Total Total
Dollar Dollar
Number of Number of Value Value Net Gain
Identity of Party Description of Purchases Sales Purchases Sales (Loss)
Involved Asset
* Dreyfus Appreciation Fund 137 32 $1,348,543 $ 364,398 $ 26,365
Corporation
* CalEnergy Common Stock 109 41 2,268,901 1,360,850 561,610
Company, Inc.
* Dreyfus New Leaders 100 103 1,735,695 2,474,721 334,937
Corporation Fund
* Dreyfus GNMA Fund 63 115 555,130 972,657 8,659
Corporation
LaSalle Capital 112 117 1,800,490 2,041,381 -
National Trust Preservation Fund
* Dreyfus Disciplined 115 38 849,617 396,215 38,529
Corporation Stock Fund
* Party-in-Interest.
EXHIBIT I
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration
Statement No. 33-52147 of CalEnergy Company, Inc. on Form S-8 of
our report dated June 23, 1998, appearing in this Annual Report
on Form 11-K of CalEnergy Company, Inc. 401(k) Savings Plan for
the year ended December 31, 1997.
DELOITTE & TOUCHE LLP
Omaha, Nebraska
June 26, 1998