EXHIBIT 99.1



                              LETTER OF TRANSMITTAL
                                    TO TENDER
         UNREGISTERED 7.416% SENIOR SECURED BONDS DUE DECEMBER 15, 2018
                    AND (INCLUDING THOSE IN BOOK-ENTRY FORM)
                                       OF
                               CE GENERATION, LLC
    PURSUANT TO THE EXCHANGE OFFER AND PROSPECTUS DATED JANUARY 27, 2000

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  THE EXCHANGE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 5:00 P.M., NEW YORK
  CITY TIME, ON MARCH 6, 2000 (THE "EXPIRATION DATE"), UNLESS THE EXCHANGE
  OFFER IS EXTENDED BY THE REGISTRANT.
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                  THE EXCHANGE AGENT FOR THE EXCHANGE OFFER IS:
                            CHASE MANHATTAN BANK AND
                       TRUST COMPANY, NATIONAL ASSOCIATION
                                   DELIVER TO:


                                                                  
              By Registered or Certified Mail                                   By Hand Delivery:
                  or Overnight Delivery:
                                                                               Chase Manhattan Bank
                   Chase Manhattan Bank                              and Trust Company, National Association
          and Trust Company, National Association                          c/o The Chase Manhattan Bank
       c/o Chase Bank of Texas, National Association                 55 Water Street, Room 234 North Building
                 Corporate Trust Services                                       New York, NY 10041
               1201 Main Street, 18th Floor
                     Dallas, TX 75202
    Attention: Frank Ivins (Personal and Confidential)





                                  By Facsimile
                        (for Eligible Institutions Only):

                                 (214) 672-5746

                               For Information or
                           Confirmation by Telephone:

                                 (415) 954-9508

                THE INFORMATION AGENT FOR THE EXCHANGE OFFER IS:

                            MACKENZIE PARTNERS, INC.
                                156 Fifth Avenue
                            New York, New York 10010
                                 (212) 929-5500
                                       or
                           (800) 322-2885 (Toll Free)


           ORIGINALS OF ALL DOCUMENTS SENT BY FACSIMILE SHOULD BE SENT
                PROMPTLY BY REGISTERED OR CERTIFIED MAIL, BY HAND
                        OR BY OVERNIGHT DELIVERY SERVICE.

         DELIVERY OF THIS LETTER OF TRANSMITTAL TO AN ADDRESS OR TRANSMISSION OF
INSTRUCTIONS VIA FACSIMILE OTHER THAN AS SET FORTH ABOVE WILL NOT CONSTITUTE A
VALID DELIVERY.

         IF YOU WISH TO EXCHANGE UNREGISTERED 7.416% SENIOR SECURED BONDS DUE
DECEMBER 15, 2018 (THE "OLD SECURITIES") FOR AN EQUAL AGGREGATE PRINCIPAL AMOUNT
OF REGISTERED 7.416% SENIOR SECURED BONDS DUE DECEMBER 15, 2018 (THE "NEW
SECURITIES") PURSUANT TO THE EXCHANGE OFFER, YOU MUST VALIDLY TENDER (AND NOT
WITHDRAW) OLD SECURITIES TO THE EXCHANGE AGENT PRIOR TO THE EXPIRATION DATE.



                          SIGNATURES MUST BE PROVIDED.

           PLEASE READ THE ACCOMPANYING INSTRUCTIONS CAREFULLY BEFORE
                      COMPLETING THIS LETTER OF TRANSMITTAL






         This Letter of Transmittal is to be completed by holders of Old
Securities either if Old Securities are to be forwarded herewith or if tenders
of Old Securities are to be made by book-entry transfer to an account maintained
by Chase Manhattan Bank and Trust Company, National Association (the "Exchange
Agent"), at The Depository Trust Company pursuant to the procedures set forth in
"The Exchange Offer -- Procedures for Tendering" in the Prospectus (as defined).

         Holders of Old Securities whose certificates for such Old Securities
are not immediately available or who cannot deliver their certificates and all
other required documents to the Exchange Agent on or prior to the Expiration
Date or who cannot complete the procedures for book-entry transfer on a timely
basis, must tender their Old Securities according to the guaranteed delivery
procedures set forth in "The Exchange Offer -- Guaranteed Delivery Procedures"
in the Prospectus.

                     DESCRIPTION OF TENDERED OLD SECURITIES



                                                                                             
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                                                                                                       AGGREGATE
               NAMES(S) AND ADDRESS(ES) OF REGISTERED OWNER(S)                     CERTIFICATE      PRINCIPAL AMOUNT
       AS IT APPEARS ON THE 7.416% SECURED BONDS DUE DECEMBER 15, 2018              NUMBER(S)      OF OLD SECURITIES
                          (PLEASE FILL IN, IF BLANK)                                 OF OLD             TENDERED
                                                                                   SECURITIES
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                                                                                ------------------ -------------------


                                                                                ------------------ -------------------


                                                                                ------------------ -------------------


                                                                                ------------------ -------------------
                                                                                TOTAL PRINCIPAL
                                                                                AMOUNT OF OLD
                                                                                SECURITIES
                                                                                TENDERED
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(BOXES BELOW TO BE CHECKED BY ELIGIBLE INSTITUTIONS ONLY)

[ ]    CHECK HERE IF TENDERED OLD SECURITIES ARE BEING DELIVERED BY BOOK-ENTRY
       TRANSFER MADE TO THE ACCOUNT MAINTAINED BY THE EXCHANGE AGENT WITH THE
       BOOK-ENTRY TRANSFER FACILITY AND COMPLETE THE FOLLOWING:

       Name of Tendering Institution
                                     ------------------------------------------
       Account Number
                      ---------------------------------------------------------
       Transaction Code Number
                              -------------------------------------------------

[ ]    CHECK HERE AND ENCLOSE A COPY OF THE NOTICE OF GUARANTEED DELIVERY IF
       TENDERED OLD SECURITIES ARE BEING DELIVERED PURSUANT TO A NOTICE OF
       GUARANTEED DELIVERY AND COMPLETE THE FOLLOWING:

       Name of Registered Holder(s)
                                   --------------------------------------------
       Window Ticket Number (if any)
                                    -------------------------------------------
       Date of Execution of Notice of Guaranteed Delivery
                                                         ----------------------
       Name of Institution which Guaranteed Delivery
                                                    ---------------------------
If Guaranteed Delivery is to be made By Book-Entry Transfer:

       Name of Tendering Institution
                                     ------------------------------------------
       Account Number
                     ----------------------------------------------------------
       Transaction Code Number
                              -------------------------------------------------

[ ]    CHECK HERE IF TENDERED BY BOOK-ENTRY TRANSFER AND NON-EXCHANGED OLD
       SECURITIES ARE TO BE RETURNED BY CREDITING THE BOOK-ENTRY TRANSFER
       FACILITY ACCOUNT NUMBER SET FORTH ABOVE.

[ ]    CHECK HERE IF YOU ARE A BROKER-DEALER WHO ACQUIRED THE OLD SECURITIES FOR
       ITS OWN ACCOUNT AS A RESULT OF MARKET MAKING OR OTHER TRADING ACTIVITIES
       (A "PARTICIPATING BROKER-DEALER") AND WISH TO RECEIVE 10 ADDITIONAL
       COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS
       THERETO.

       Name:
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       Address:
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LADIES AND GENTLEMEN:


     1. The undersigned hereby tenders to CE Generation, LLC (the "Registrant")
the Old Securities described above pursuant to the Registrant's offer of $1,000
principal amount of New Securities in exchange for each $1,000 principal amount
of Old Securities upon the terms and subject to the conditions contained in the
Prospectus dated January 27, 2000 (the "Prospectus"), receipt of which is hereby
acknowledged, and in this Letter of Transmittal (which together constitute the
"Exchange Offer").


     2. The undersigned hereby represents and warrants that it has full
authority to tender the Old Securities described above. The undersigned will,
upon request, execute and deliver any additional documents deemed by the
Registrant to be necessary or desirable to complete the tender of Old
Securities.

     3. The undersigned understands that the tender of the Old Securities
pursuant to all of the procedures set forth in the Prospectus will constitute an
agreement between the undersigned and the Registrant as to the terms and
conditions set forth in the Prospectus.

     4. Unless the box under the heading "Special Registration Instructions" is
checked, the undersigned hereby represents and warrants that:

          (i) the New Securities acquired pursuant to the Exchange Offer in
     exchange for Old Securities are being obtained in the ordinary course of
     business of the undersigned and any beneficial owner(s) of such Old
     Securities or interests therein, whether or not the undersigned is the
     holder;

          (ii) neither the undersigned nor any such other person is engaging in
     or intends to engage in a distribution of such New Securities;

          (iii) neither the undersigned nor any such other person has an
     arrangement or understanding with any person to participate in the
     distribution of such New Securities;

          (iv) if the undersigned or such other person is a resident of the
     State of California, it falls under the self-executing institutional
     investor exemption set forth under Section 25102(i) of the Corporate
     Securities Law of 1968 and Rules 260.102.10 and 260.105.14 of the
     California Blue Sky Regulations;

          (v) if the undersigned or such other person is a resident of the
     Commonwealth of Pennsylvania, it falls under the self-executing
     institutional investor exemption set forth under Sections 203(c), 102(d)
     and (k) of the Pennsylvania Securities Act of 1972, Section 102.111 of the
     Pennsylvania Blue Sky Regulations and an interpretive opinion dated
     November 16, 1985;

          (vi) the undersigned acknowledges and agrees that any person who is a
     broker-dealer registered under the Securities Exchange Act of 1934, as
     amended (the "Exchange Act"), or is participating in the Exchange Offer for
     the purpose of distributing the New


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     Securities must comply with the registration and prospectus delivery
     requirements of the Securities Act in connection with a secondary resale
     transaction of the New Securities or interests therein acquired by such
     person and cannot rely on the position of the staff of the Commission set
     forth in certain no-action letters;

          (vii) the undersigned understands that a secondary resale transaction
     described in clause (vi) above and any resales of New Securities or
     interests therein obtained by such holder in exchange for Old Securities or
     interests therein originally acquired by such holder directly from the
     Registrant should be covered by an effective registration statement
     containing the selling security holder information required by Item 507 or
     Item 508, as applicable, of Regulation S-K of the Commission; and

          (viii) neither the holder nor any such other person is an "affiliate,"
     as such term is defined under Rule 405 promulgated under the Securities Act
     of 1933, as amended (the "Securities Act"), of the Registrant.

     5. The undersigned may, if and only if unable to make all of the
representations and warranties contained in Item 4 above, elect to have its Old
Securities registered in the shelf registration described in the Exchange and
Registration Rights Agreement, dated as of March 2, 1999, among Credit Suisse
First Boston Corporation, Lehman Brothers Inc. and the Registrant, in the form
filed as an exhibit to the registration statement of which the Prospectus is a
part. Such election may be made by checking the box under "Special Registration
Instructions" on page 9. By making such election, the undersigned agrees,
jointly and severally, as a holder of transfer restricted securities
participating in a shelf registration, to indemnify and hold harmless the
Registrant, their respective directors and officers and each Person who controls
the Registrant, within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act, against any and all losses, claims, damages and
liabilities whatsoever (including, without limitation, the reasonable legal and
other expenses actually incurred in connection with any suit, action or
proceeding or any claim asserted) caused by, arising out of or based upon (i)
any untrue statement or alleged untrue statement of any material fact contained
in the shelf registration statement filed with respect to such Old Securities or
the Prospectus or in any amendment thereof or supplement thereto or (ii) the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, in each case to the
extent, but only to the extent, that any such loss, claim, damage or liability
arises out of or is based upon any untrue statement or alleged untrue statement
or omission or alleged omission made therein in reliance upon and in conformity
with information relating to the undersigned furnished to the Registrant in
writing by or on behalf of the undersigned expressly for use therein. Any such
indemnification shall be governed by the terms and subject to the conditions set
forth in the Exchange and Registration Rights Agreement, including, without
limitation, the provisions regarding notice, retention of counsel, contribution
and payment of expenses set forth therein. The above summary of the
indemnification provision of the Exchange and Registration Rights Agreement is
not intended to be exhaustive and is qualified in its entirety by reference to
the Exchange and Registration Rights Agreement.


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     6. If the undersigned is not a broker-dealer, the undersigned represents
that it is not engaged in, and does not intend to engage in, a distribution of
New Securities . If the undersigned is a broker-dealer that will receive New
Securities for its own account in exchange for Old Securities that were acquired
as a result of market-making activities or other trading activities, it
acknowledges that it will deliver a prospectus in connection with any resale of
such New Securities, however, by so acknowledging and delivering a prospectus,
the undersigned will not be deemed to admit that it is an "underwriter" within
the meaning of the Securities Act. If the undersigned is a broker-dealer and Old
Securities held for its own account were not acquired as a result of
market-making or other trading activities, such Old Securities cannot be
exchanged pursuant to the Exchange Offer.

     7. Any obligation of the undersigned hereunder shall be binding upon the
successors, assigns, executors, administrators, trustees in bankruptcy and legal
and personal representatives of the undersigned.

     8. Unless otherwise indicated herein under "Special Delivery Instructions,"
the certificates for the New Securities will be issued in the name of the
undersigned.

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                          SPECIAL DELIVERY INSTRUCTIONS
                               (See Instruction 1)

         To be completed ONLY IF the New Securities are to be issued or sent to
  someone other than the undersigned or to the undersigned at an address other
  than that provided above.

          Mail [ ]  Issue [ ]   (check appropriate boxes) certificates to:

 Name:
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                                 (PLEASE PRINT)
Address:
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                              (INCLUDING ZIP CODE)




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                        SPECIAL REGISTRATION INSTRUCTIONS
                                  (See Item 5)

     To be completed ONLY IF (i) the undersigned satisfies the conditions set
forth in Item 5 above, (ii) the undersigned elects to register its Old
Securities in the shelf registration described in the Exchange and Registration
Rights Agreement and (iii) the undersigned agrees to indemnify certain entities
and individuals as set forth in the Exchange and Registration Rights Agreement
and summarized in Item 5 above.

    [ ] By checking this box the undersigned hereby (i) represents that it is
unable to make all of the representations and warranties set forth in Item 4
above, (ii) elects to have its Old Securities registered pursuant to the shelf
registration described in the Exchange and Registration Rights Agreement and
(iii) agrees to indemnify certain entities and individuals identified in, and to
the extent provided in, the Exchange and Registration Rights Agreement and
summarized in Item 5 above.
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                                    SIGNATURE

         To be completed by all exchanging bondholders. Must be signed by
  registered holder exactly as name appears on the Old Securities. If signature
  is by trustee, executor, administrator, guardian, attorney-in-fact, officer of
  a corporation or other person acting in a fiduciary or representative
  capacity, please set forth full title. See Instruction 3.

X
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X
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          SIGNATURE(S) OF REGISTERED HOLDER(S) OR AUTHORIZED SIGNATURE


Dated:
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Names(s):
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                             (PLEASE TYPE OR PRINT)


Capacity:
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Address:
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                              (INCLUDING ZIP CODE)

Area Code and Telephone

No.:
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               SIGNATURE GUARANTEE (IF REQUIRED BY INSTRUCTION 1)

        Certain Signatures Must be Guaranteed by an Eligible Institution


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             (NAME OF ELIGIBLE INSTITUTION GUARANTEEING SIGNATURES)


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    (ADDRESS (INCLUDING ZIP CODE) AND TELEPHONE NUMBER (INCLUDING AREA CODE)
                                    OF FIRM)


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                             (AUTHORIZED SIGNATURE)


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                                 (PRINTED NAME)


                                     (TITLE)


Dated:
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                     PLEASE READ THE FOLLOWING INSTRUCTIONS,
                 WHICH FORM A PART OF THIS LETTER OF TRANSMITTAL


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                                  INSTRUCTIONS

     1. GUARANTEE OF SIGNATURES. Signatures on this Letter of Transmittal must
be guaranteed by an eligible guarantor institution that is a member of or
participant in the Securities Transfer Agents Medallion Program, the New York
Stock Exchange Medallion Signature Program or by an "eligible guarantor
institution" within the meaning of Rule l7Ad-15 promulgated under the Exchange
Act (an "Eligible Institution") unless the box entitled "Special Registration
Instructions" or "Special Delivery Instructions" above has not been completed or
the Old Securities described above are tendered for the account of an Eligible
Institution.

     2. DELIVERY OF LETTER OF TRANSMITTAL AND OLD SECURITIES. The Old
Securities, together with a properly completed and duly executed Letter of
Transmittal (or copy thereof), should be mailed or delivered to the Exchange
Agent at the address set forth above.

     THE METHOD OF DELIVERY OF OLD SECURITIES AND THE LETTER OF TRANSMITTAL AND
ALL OTHER REQUIRED DOCUMENTS TO THE EXCHANGE AGENT IS AT THE ELECTION AND RISK
OF THE HOLDER. INSTEAD OF DELIVERY BY MAIL, IT IS RECOMMENDED THAT HOLDERS USE
AN OVERNIGHT OR HAND DELIVERY SERVICE. IN ALL CASES, SUFFICIENT TIME SHOULD BE
ALLOWED TO ASSURE DELIVERY TO THE EXCHANGE AGENT BEFORE THE EXPIRATION DATE. NO
LETTER OF TRANSMITTAL OR OLD SECURITIES SHOULD BE SENT TO THE REGISTRANT.
HOLDERS MAY REQUEST THEIR RESPECTIVE BROKERS, DEALERS, COMMERCIAL BANKS, TRUST
COMPANIES, OR NOMINEES TO EFFECT THE ABOVE TRANSACTIONS FOR SUCH HOLDERS.

     3. SIGNATURE ON LETTER OF TRANSMITTAL, BOND POWERS AND ENDORSEMENTS. If
this Letter of Transmittal is signed by a person other than a registered holder
of any Old Securities, such Old Securities must be endorsed or accompanied by
appropriate bond powers, signed by such registered holder exactly as such
registered holder's name appears on such Old Securities.

     If this Letter of Transmittal or any Old Securities or bond powers are
signed by trustees, executors, administrators, guardians, attorneys-in-fact,
officers of corporations, or others acting in a fiduciary or representative
capacity, such persons should so indicate when signing, and, unless waived by
the Registrant, proper evidence satisfactory to the Issuers of their authority
to so act must be submitted with this Letter of Transmittal.

     4. MISCELLANEOUS. All questions as to the validity, form, eligibility
(including time of receipt), acceptance, and withdrawal of tendered Old
Securities will be determined by the Registrant in its sole discretion, which
determination will be final and binding on all parties. The Registrant reserves
the absolute right to reject any or all Old Securities not properly tendered or
any Old Securities the Registrant's acceptance of which would, in the opinion of
counsel for the Registrant, be unlawful. The Registrant also reserves the right
to waive any defects, irregularities, or conditions of tender as to particular
Old Securities. The Registrant's interpretation of the terms and conditions of
the Exchange Offer (including the instructions in


                                       10




this Letter of Transmittal) will be final and binding. Unless waived, any
defects or irregularities in connection with tenders of Old Securities must be
cured within such time as the Issuers shall determine. Neither the Registrant,
the Exchange Agent, nor any other person shall be under any duty to give
notification of defects in such tenders or shall incur any liability for failure
to give such notification. Tenders of Old Securities will not be deemed to have
been made until such defects or irregularities have been cured or waived. Any
Old Securities received by the Exchange Agent that are not properly tendered and
as to which the defects or irregularities have not been cured or waived will be
returned by the Exchange Agent to the tendering holder thereof as soon as
practicable following the Expiration Date.




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