CalEnergy Co. and MidAmerican Energy Holdings Co. filed anapplication for review of proposal for reorganization with the IowaUtilities Board (IUB) in conjunction with their proposed merger.The merger agreement is also subject to approval by theshareholders of both companies, for which special meetings will becalled later this year. Completion of the merger is expected tooccur by the end of the first quarter of 1999.

The application with the IUB is the last major regulatory filingthat the companies expect to make. To date, filings have been madewith Federal Energy Regulatory Commission, the Nuclear RegulatoryCommission, the Department of Justice and the Federal TradeCommission. These filings, along with CalEnergy’s closing of $1.4billion in debt securities Tuesday, are continued steps to thecompletion of the merger.

CalEnergy and MidAmerican announced merger plans last month. Thecombined enterprise will have total assets of about $13 billion,total annual revenues of more than $4.2 billion and will serve morethan 3.3 million retail customers.

Joe Fisher, Houston

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