[ERNST & YOUNG LOGO]

						4 August 1997

The Board of Directors
Northern Electric plc
Carliol House
Market Street
Newcastle upon Tyne
NE1 6NE

Dear Sirs

We are aware of the incorporation by reference in the Registration Statement
(Form S-3) of CalEnergy Company, Inc. for the registration of its Senior
Debt Securities and Subordinated Debt Securities, Preferred Stock and
Common Stock and CalEnergy Capital Trust III, CalEnergy Capital Trust IV and
CalEnergy Capital Trust V for the registration of their Convertible Preferred
Securities, in aggregate amount of $1,500,000,000 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 meaning of Sections 7 or 11 of the Securities Act of 1933.

Yours faithfully

Ernst & Young