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CALIFORNIA ENERGY AWARDED TWO PHILIPPINE GEOTHERMAL PROJECTS

 OMAHA, Neb., Aug. 2 /PRNewswire/ -- California Energy Company, Inc. (AMEX, PSE symbol: CE) (CECI) today announced that the Philippine National Oil Company -- Energy Development Corporation (PNOC) has awarded to CECI a 180 MW geothermal project at the Mahanagdong geothermal field in the Philippines. The project's target completion date is June 1997. CECI had submitted its bid for this project on April 23, 1993. CECI made the bid jointly with Kiewit Diversified Group, Inc. (Kiewit), a subsidiary of Peter Kiewit Sons' Inc. pursuant to an investment arrangement in which CECI and Kiewit will share development costs and equity funding equally and CECI will manage the venture and act as the operator of the geothermal project.
 In addition, CECI announced that PNOC has awarded an additional 120 MW geothermal project at the Upper Mahiao geothermal field in the Philippines to a consortium consisting of CECI and Ormat, Inc. under which Ormat will act as turnkey contractor and CECI will operate the project. This project's target completion date is July 1996.
 The total combined construction cost of the projects is estimated to be in excess of $350,000,000. Both geothermal awards are structured as Build, Own, Operate, Transfer projects under which PNOC supplies geothermal steam and fluids pursuant to quantity and quality specifications. CECI and its venture partners build the power plant and operate it for a 10 year cooperation period and are paid by PNOC for converting the geothermal resources into electricity, which is sold by PNOC to the Philippine National Power Corporation. Following the repayment of debt and recovery of invested capital during the cooperation period, the plant is transferred at no cost to PNOC.
 David Sokol, chief executive officer of CECI stated, "We are very pleased to have been selected by PNOC for these awards and look forward to working closely with the PNOC staff toward the goal of constructing, owning and operating world class geothermal power facilities." Sokol further stated, "Given the large demand for electrical power in the Philippines, we are particularly proud to have the opportunity to construct, own and operate a combined 300 megawatts of electrical generation which will provide an environmentally sound portion of the energy needs for the Philippines."
 Both geothermal project awards are subject to definitive contract negotiations and other contingencies and no assurance can be given that such definitive contracts will be executed, or that such projects will be consummated.
 California Energy Company develops environmentally responsible power generating facilities. Its five operating facilities currently produce in excess of 250 net megawatts.
 -0- 8/02/93
 /CONTACT: David Sokol, president and chief executive officer, or John Sylvia, vice president and chief financial officer, both of California Energy, 402-330-8900/
 (CE)


CO: California Energy Company; Philippine National Oil Company; Kiewit
 Diversified Group, Inc. ST: Nebraska IN: UTL SU:


DS -- MN005 -- 8142 08/02/93 07:59 EDT
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Publication:PR Newswire
Date:Aug 2, 1993
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