Exhibit 10.36


                         AMENDMENT NO. 1

                             TO THE

                      EMPLOYMENT AGREEMENT

                             BETWEEN

                     CALENERGY COMPANY, INC.

                               AND

                        CRAIG M. HAMMETT

          This Amendment No. 1 (the "Amendment") to the
Employment Agreement dated January 11, 1998 (the "Employment
Agreement") by and between CalEnergy Company, Inc., a Delaware
corporation (the "Company"), and Craig M. Hammett (the
"Executive"), is entered into as of January 12, 1998.

          WHEREAS, the Company and the Executive are presently
parties to the Employment Agreement; and

          WHEREAS, the Company and the Executive desire to amend
the Employment Agreement as set forth herein;

          NOW, THEREFORE, the Employment Agreement is hereby
amended as follows:

          (1) By adding the following sentences at the end of
Section 4(c):

                "The Executive shall also be eligible to be paid
             other bonuses for each fiscal year as determined by
             the Chairman of the Board.  The Executive's annual
             incentive merit bonus, together with all such other
             bonuses paid or payable for the fiscal year
             (including any amounts for which receipt is
             otherwise deferred pursuant to a plan or
             arrangement with the Company), is referred to
             herein as `Annual Bonus Compensation.'"

          (2) By adding the following sentence after the last
sentence of Section 6(a):

                "The preceding sentence notwithstanding, if the
             Executive's resignation occurs upon or after a
             Change in Control, he shall not be precluded from
             accepting employment or providing services to Peter
             Kiewit Sons', Inc. or any affiliate thereof."

          (3)    By deleting from the first sentence of Section
8(b) the language following the parenthetical "(iii)" and
replacing it with the following:

                "commencing one month after the month of his
             Termination Date, 24 monthly payments each equal to
             1/24 of a sum equal to two times the average Annual
             Bonus Compensation payable to the Executive in
             respect of the two fiscal years immediately
             preceding the year in which the Executive's
             employment with the Company terminates (with any
             such year for which no bonus was payable included
             in such two year average as a zero)."

          (4)    By deleting current Section 8(d) and inserting
new Section 8(d), to read as follows:

                "(d) If the employment of the Executive is
             terminated pursuant to subsections (ii) or (vi) of
             Section 7(a), any Performance Accelerated Stock
             Options ("PASOs") held by the Executive on the
             Termination Date will become vested and immediately
             exercisable on such Termination Date and shall
             otherwise remain exercisable for their term in
             accordance with the terms thereof." "

          (5)    By inserting immediately following Section 8(d)
a new Section 8(e) to read as follows:

                "(e) If the employment of the Executive is
             terminated for any reason after a Change in
             Control, then without further action by the
             Company, the Board of any committee thereof, the
             Executive may exercise any vested stock options
             (including any vested PASOs) held by the Executive
             pursuant to existing procedures approved by the
             Stock Option Committee for cashless exercise, by
             surrendering previously owned shares, electing to
             have the Company withhold shares otherwise
             deliverable upon exercise of such options, or by
             providing an irrevocable direction to a broker to
             sell shares and deliver all or a portion of the
             proceeds to the Company, in any case in an amount
             equal to the aggregate exercise price and any tax
             withholding obligation attendant to the exercise."

          (6) By inserting immediately following Section 8 a new
Section 8A, which shall read in its entirety as follows:

                               "Section 8A.  Certain Additional
                          Payments by the Company.

                         (a)  Anything in this Agreement to the
             contrary notwithstanding, in the event it shall be
             determined that any payment, distribution, waiver
             of Company rights, acceleration of vesting of any
             stock options or restricted stock, or any other
             payment or benefit in the nature of compensation to
             or for the benefit of the Executive, alone or in
             combination (whether such payment, distribution,
             waiver, acceleration or other benefit is made
             pursuant to the terms of this Agreement or any
             other agreement, plan or arrangement providing
             payments or benefits in the nature of compensation
             to or for the benefit of the Executive, but
             determined without regard to any additional
             payments required under this Section 8A) (a
             "Payment") would be subject to the excise tax
             imposed by Section 4999 of the Code (or any
             successor provision) or any interest or penalties
             are incurred by the Executive with respect to such
             excise tax (such excise tax, together with any such
             interest and penalties, are hereinafter
             collectively referred to as the "Excise Tax"), then
             the Executive shall be entitled to receive an
             additional payment (a "Gross-Up Payment") in an
             amount such that after payment by the Executive of
             all taxes with respect to the Gross-Up Payment
             (including any interest or penalties imposed with
             respect to such taxes), including, without
             limitation, any income taxes (and any interest and
             penalties imposed with respect thereto) and Excise
             Tax imposed upon the Gross-Up Payment, the
             Executive retains an amount of the Gross-Up Payment
             equal to the Excise Tax imposed upon the Payments.

                         (b)  Subject to the provisions of
             Section 8A(c), all determinations required to be
             made under this Section 8A, including whether and
             when a Gross-Up Payment is required and the amount
             of such Gross-Up Payment and the assumptions to be
             utilized in arriving at such determination, shall
             be made by Deloitte and Touche LLP, or such other
             nationally recognized accounting firm then auditing
             the accounts of the Company (the "Accounting Firm")
             which shall provide detailed supporting
             calculations both to the Company and the Executive
             within 15 business days of the receipt of notice
             from the Executive that there has been a Payment,
             or such earlier time as is requested by the
             Company.  In the event that the Accounting Firm is
             unwilling or unable to its obligations pursuant to
             this Section 8A, the Executive shall appoint
             another nationally recognized accounting firm to
             make the determinations required hereunder (which
             accounting firm shall then be referred to hereunder
             as the Accounting Firm).  All fees and expenses of
             the Accounting Firm shall be borne solely by the
             Company.  Any Gross-Up Payment, determined pursuant
             to this Section 8A, shall be paid by the Company to
             the Executive within five days of the receipt of
             the Accounting Firm's determination.  Any
             determination by the Accounting Firm shall be
             binding upon the Company and the Executive.  The
             parties hereto acknowledge that, as a result of the
             potential uncertainty in the application of Section
             4999 of the Code (or any successor provision) at
             the time of the initial determination by the
             Accounting Firm hereunder, it is possible that the
             Company will not have made Gross-Up Payments which
             should have been made consistent with the
             calculations required to be made hereunder (an
             "Underpayment").  In the event that the Company
             exhausts its remedies pursuant to Section 8A(c) and
             the Executive thereafter is required to make a
             payment of any Excise Tax, the Accounting Firm
             shall determine the amount of the Underpayment that
             has occurred and any such Underpayment shall be
             promptly paid by the Company to or for the benefit
             of the Executive.

                   (c)  The Executive shall notify the Company
             in writing of any claim by the Internal Revenue
             Service that, if successful, would require the
             payment by the Company of the Gross-Up Payment.
             Such notification shall be given as soon as
             practicable but no later than 20 business days
             after the Executive is informed in writing of such
             claim and shall apprise the Company of the nature
             of such claim and the date on which such claim is
             requested to be paid.  The Executive shall not pay
             such claim prior to the expiration of the 30-day
             period following the date on which he gives such
             notice to the Company (or such shorter period
             ending on the date that any payment of taxes with
             respect to such claim is due).  If the Company
             notifies the Executive in writing prior to the
             expiration of such period that it desires to
             contest such claim, the Executive shall:

                          (i)      give the Company any
                    information reasonably requested by the
                    Company relating to such claim,

                          (ii)     take such action in connection
                    with contesting such claim as the Company
                    shall reasonably request in writing from time
                    to time, including, without limitation,
                    accepting legal representation with respect
                    to such claim by an attorney reasonably
                    selected by the Company,

                          (iii)    cooperate with the Company in
                    good faith in order effectively to contest
                    such claim, and

                          (iv)     permit the Company to
                    participate in any proceedings relating to
                    such claim;

                providing, however, that the Company shall bear
             and pay directly all costs and expenses (including
             additional interest and penalties) incurred in
             connection with such contest and shall indemnify
             and hold the Executive harmless, on an after-tax
             basis, for any Excise Tax or income tax (including
             interest and penalties with respect thereto)
             imposed as a result of such representation and
             payment of costs and expenses.  Without limiting
             the foregoing provisions of this Section 8A(c), the
             Company shall control all proceedings taken in
             connection with such contest and, at its sole
             option, may pursue or forgo any and all
             administrative appeals, proceedings, hearings and
             conferences with the taxing authority in respect of
             such claim and may, at its sole option, either
             direct the Executive to pay the tax claimed and sue
             for a refund or contest and claim in any
             permissible manner, and the Executive agrees to
             prosecute such contest to a determination before
             any administrative tribunal, in a court of initial
             jurisdiction and in one or more appellate courts,
             as the Company shall determine; provided, however,
             that if the Company directs the Executive to pay
             such claim and sue for a refund, the Company shall
             advance the amount of such payment to the
             Executive, on an interest-free basis, and shall
             indemnify and hold the Executive harmless, on an
             after-tax basis, from any Excise Tax or income tax
             (including interest or penalties with respect
             thereto) imposed with respect to such advance or
             with respect to any imputed income with respect to
             such advance; and further provided that any
             extension of the statute of limitations relating to
             payment of taxes for the taxable year of the
             Executive with respect to which such contested
             amount is claimed to be due is limited solely to
             such contested amount.  Furthermore, the Company's
             control of the contest shall be limited to issues
             with respect to which a Gross-Up Payment would be
             payable hereunder and the Executive shall be
             entitled to settle or contest, as the case may be,
             any other issue raised by the Internal Revenue
             Service or any other taxing authority.

                         (d)  If, after the receipt by the
             Executive of an amount advanced by the Company
             pursuant to Section 8A(c), the Executive becomes
             entitled to receive any refund with respect to such
             claim, the Executive shall (subject to the
             Company's complying with the requirements of
             Section 8A(c)) promptly pay to the Company the
             amount of such refund (together with any interest
             paid or credited thereon after taxes applicable
             thereto).  If, after the receipt by the Executive
             of an amount advanced by the Company pursuant to
             Section 8A(c), a determination is made that the
             Executive shall not be entitled to any refund with
             respect to such claim and the Company does not
             notify the Executive in writing of its intent to
             contest such denial of refund prior to the
             expiration of 30 days after such determination,
             then such advance shall be forgiven and shall not
             be required to be repaid and the amount of such
             advance shall offset, to the extent thereof, the
             amount of Gross-Up Payment required to be paid."

          Except as provided herein and to the extent necessary
to give full effect to the provisions of this
Amendment, the terms of the Employment Agreement shall remain in
full force and effect.

          IN WITNESS WHEREOF, the parties hereto have entered
into this Amendment effective as of January 12,1998.

                                             CALENERGY COMPANY,
                    INC.




                               By:/s/ David L. Sokol
                               Name:   David L. Sokol
                               Title:  Chairman of the Board



                                             EXECUTIVE



                               By:/s/ Craig M. Hammett
                                        Craig M. Hammett