EXHIBIT 15.2 

4 February 1998 
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 III for the 
registration of 5,400,000 6-1/2% Convertible Preferred Securities, 
$270,000,000 6-1/2% Convertible Junior Subordinated Debentures of CalEnergy 
Company, Inc. and 5,653,800 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 meaning of Sections 7 or 11 of the Securities Act of 1933. 

Yours faithfully
ERNST & YOUNG