EXHIBIT 15.2


30 June 1997

The Board of Directors
Northern Electric plc
Carliol House
Market Street
Newcastle Upon Tyne 
NEI 6NE

Dear Sirs

We are aware of the incorporation by reference in the Registration Statement
(Form S-3) of CalEnergy Company, Inc. and CalEnergy Capital Trust II for the
registration  of 3,600,000 6-1/4% Trust Convertible Preferred Securities, 
$180,000,000 6-1/4% Convertible Junior Subordinated Debentures of CalEnergy
Company, Inc. and 4,195,800 shares of Common Stock of CalEnergy Company, Inc.
of our report dated November 29, 1996 relating to the unaudited condensed
interim financial statements of Northern Electric plc that are included in
the Current Report on Form 8-K/A dated February 18, 1997 of CalEnergy
Company, Inc.

Pursuant to Rule 436(c) of the Securities Act of 1933 our report is not part of
the registration statement prepared or certified by accountants within the 
meeting of Sections 7 or 11 of the Securities Act of 1933.


ERNST & YOUNG