Exhibit 15.2


24 July 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 Amendment No. 1 to the 
Registration Statement (Form S-3 No. 333-30537) 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.

Yours faithfully

ERNST & YOUNG