SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-Q


              Quarterly Report Pursuant to Section 13 or 15 (d) of
                       the Securities Exchange Act of 1934


                    For the quarter ended September 30, 2000
                          Commission File No. 333-89521


                               CE Generation, LLC
             (Exact name of registrant as specified in its charter)


             Delaware                                            47-0818523
         (State or other jurisdiction of                      (I.R.S. Employer
         Incorporation or organization)                      Identification No.)

         302 South 36th Street, Suite 400 Omaha, NE              68131
         (Address of principal executive offices)             (Zip Code)


       Registrant's telephone number, including area code: (402) 341-4500

         Securities registered pursuant to Section 12(b) of the Act: N/A

         Securities registered pursuant to Section 12(g) of the Act: N/A

          Indicate  by check  mark  whether  the  Registrant  (1) has  filed all
reports  required to be filed by Section 13 or 15(d) of the Securities  Exchange
Act of 1934 during the preceding 12 months (or for such shorter  period that the
Registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days:


                                 Yes x        No _____


         The members equity  accounts are held 50% by  MidAmerican  Energy
Holdings  Company and 50% by El Paso Merchant  Energy  Company as of October 31,
2000.


<PAGE>


                                                           TABLE OF CONTENTS


Part I ....................................................................... 1
  Item 1.    Financial Statements............................................. 1
  Item 2.    Management's Discussions and Analysis of Financial Condition and
                Results of Operations......................................... 9

Part II.......................................................................16
  Item 1.    Legal Proceedings................................................16
  Item 2.    Changes in Securities and Use of Proceeds........................16
  Item 3.    Defaults on Senior Securities ...................................16
  Item 4.    Submission of Matters to a Vote of Security Holders..............16
  Item 5.    Other Information ...............................................16
  Item 6.    Exhibits and Reports on Form 8-K.................................16

Signatures....................................................................17

Exhibit Index.................................................................18





<PAGE>




                         INDEPENDENT ACCOUNTANTS' REPORT

Board of Directors
CE Generation, LLC

     We  have  reviewed  the  accompanying  consolidated  balance  sheet  of  CE
Generation,  LLC (the  "Company")  as of  September  30,  2000,  and the related
consolidated statements of operations for the three and nine month periods ended
September  30, 2000 and 1999 and of cash flows for the nine month  periods ended
September 30, 2000 and 1999. These financial  statements are the  responsibility
of the Company's management.

     We conducted our review in accordance  with  standards  established  by the
American  Institute  of  Certified  Public  Accountants.  A  review  of  interim
financial  information consists principally of applying analytical procedures to
financial data and of making inquiries of persons  responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted in
accordance with auditing  standards  generally  accepted in the United States of
America,  the objective of which is the  expression of an opinion  regarding the
financial  statements taken as a whole.  Accordingly,  we do not express such an
opinion.

     Based on our review,  we are not aware of any material  modifications  that
should be made to such financial  statements  for them to be in conformity  with
accounting principles generally accepted in the United States of America.

     We have previously audited, in accordance with auditing standards generally
accepted in the United States of America,  the consolidated  balance sheet of CE
Generation,  LLC  as of  December  31,  1999,  and  the  related  statements  of
operations,  members'  equity  and cash  flows  for the  year  then  ended  (not
presented  herein);  and in our report  dated  January 25, 2000 we  expressed an
unqualified opinion on those consolidated financial statements.  In our opinion,
the information set forth in the accompanying  consolidated  balance sheet as of
December 31, 1999 is fairly stated, in all material respects, in relation to the
consolidated balance sheet from which it has been derived.


DELOITTE & TOUCHE LLP
Omaha, Nebraska
October 21, 2000



<PAGE>

                       CE GENERATION, LLC AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                             (Amounts in Thousands)
<TABLE>
<CAPTION>

                                                                        September 30,        December 31,
                                                                           2000                     1999
                                                                        (Unaudited)
 ASSETS
<S>                                                             <C>                       <C>
 Cash and cash equivalents                                      $         68,930          $         29,120
 Restricted cash                                                          13,790                     6,776
 Accounts receivable                                                      76,554                    40,688
 Prepaid expenses and other assets                                        46,996                    30,195
 Due from affiliates                                                         ---                     3,794
 Deferred income taxes                                                     9,256                     9,256
 Total current assets                                                    215,526                   119,829

 Restricted cash                                                          22,092                    25,836
 Properties, plants, contracts and equipment, net                      1,360,027                 1,017,342
 Equity investments                                                          ---                   118,637
 Excess of cost over fair value of net assets acquired, net              278,692                   285,888
 Note receivable from related party                                      140,520                   140,520
 Deferred financing charges and other assets                              12,630                    17,359

 Total assets                                                   $      2,029,487          $      1,725,411

 LIABILITIES AND MEMBERS' EQUITY
 Liabilities:
 Accounts payable and other accrued liabilities                 $         71,167          $         41,314
 Notes payable to related parties                                         13,000                       ---
 Due to affiliates                                                         5,697                       ---
 Current portion of long term debt                                        52,988                    51,520
 Total current liabilities                                               142,852                    92,834

 Project loan                                                            208,077                    60,173
 Salton Sea notes and bonds                                              532,078                   543,948
 Senior secured bonds                                                    383,300                   389,600
 Deferred income taxes                                                   249,767                   246,576
 Total liabilities                                                     1,516,074                 1,333,131
 Minority interest                                                        70,819                       ---
 Commitments and contingencies (Note 3)

 Members' equity                                                         442,594                   392,280

 Total liabilities and equity                                   $      2,029,487          $      1,725,411

                              The accompanying notes are an integral part of these financial statements.
</TABLE>

<PAGE>

                       CE GENERATION, LLC AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                             (Amounts in Thousands)
                                    Unaudited

<TABLE>
<CAPTION>
                                                       Three Months Ended                Nine Months Ended
                                                          September 30                      September 30,
                                                      2000           1999                2000           1999
                                                      ----           ----                ----           ----
 Revenue:

<S>                                            <C>            <C>                 <C>            <C>
 Sales of electricity and steam                $     146,522  $      90,028       $     348,955  $     231,613

 Equity earnings in subsidiaries                         ---          5,381                 ---         17,718

 Interest and other income                             3,236          4,702               7,778         17,665

 Total revenues                                      149,758        100,111             356,733        266,996



 Cost and Expenses:

 Plant operations                                     61,748         29,281             157,355         84,848

 General and administrative                            1,182          1,338               4,036          3,333

 Depreciation and amortization                        20,564         14,474              59,661         43,400

 Interest expense                                     21,992         19,611              66,793         58,343

 Less interest capitalized                               (74)        (1,569)             (4,291)        (2,614)

 Total expenses                                      105,412         63,135             283,554        187,310



 Income before provision for income taxes             44,346         36,976              73,179         79,686

 Provision for income taxes                            8,490         14,162              11,627         30,520

 Income before minority interest and

      extraordinary item                              35,856         22,814              61,552         49,166

 Minority interest                                     4,447            ---              11,238            ---

 Income before extraordinary item                     31,409         22,814              50,314         49,166

 Extraordinary item, net of tax                          ---            ---                 ---        (17,478)

 Net income                                    $      31,409  $      22,814       $      50,314  $      31,688



                          The accompanying notes are an integral part of these financial statements.
</TABLE>

<PAGE>

                       CE GENERATION, LLC AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (Amounts in Thousands)
                                    Unaudited
<TABLE>
<CAPTION>
                                                                                        Nine Months Ended
                                                                                           September 30,
                                                                                      2000              1999
 Cash flows from operating activities:
<S>                                                                          <C>               <C>
 Net income                                                                  $      50,314     $      31,688
 Adjustments to reconcile to cash flows from
     operating activities:
 Extraordinary item, net of tax                                                        ---            17,478
 Depreciation and amortization                                                      59,661            43,400
 Provision for deferred income taxes                                                 3,191            10,108
 Distribution from equity investments in excess of related
     equity earnings                                                                   ---             5,123
 Distributions to minority interest in excess of related income                                (5,688)                     ---
 Changes in other items, net of Saranac conversion:
    Accounts receivable                                                            (20,767)            5,658
    Due from affiliates                                                              7,257               ---
    Accounts payable and other accrued liabilities                                  20,660            20,547
    Other assets                                                                    (6,125)           14,784

 Net cash flows from operating activities                                          108,503           148,786

 Cash flows from investing activities:
 Capital expenditures                                                              (45,534)         (135,322)
 Consolidation of former equity investment's cash                                    2,559               ---
 Change in restricted cash                                                          11,222            66,122

 Net cash flows from investing activities                                          (31,753)          (69,200)

 Cash flows from financing activities:
 Repayment of Salton Sea notes and bonds                                           (22,552)          (28,918)
 Proceeds from related party notes                                                  13,000               ---
 Proceeds from Senior Secured bonds                                                    ---           400,000
 Repayment of note payable to related party                                            ---          (269,300)
 Repayment of project loans                                                        (27,343)          (10,701)
 Distributions to MEHC, net of advances                                                ---          (122,080)
 Change in restricted cash                                                             (45)            9,620

 Net cash flows from financing activities                                          (36,940)          (21,379)

 Net increase in cash and cash equivalents                                          39,810            58,207

 Cash and cash equivalents at beginning of period                                   29,120            25,774

 Cash and cash equivalents at end of period                                  $      68,930     $      83,981

 Supplemental disclosure:
 Interest paid                                                               $      66,793     $      37,620
 Income taxes paid                                                           $       8,720     $       9,125

See note 2 regarding conversion of Saranac from equity investment to consolidated subsidiary.

                          The accompanying notes are an integral part of these financial statements.
</TABLE>

<PAGE>


                       CE GENERATION, LLC AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. General:

     In the opinion of the  management of CE  Generation,  LLC the  accompanying
unaudited consolidated financial statements contain all adjustments  (consisting
only of normal  recurring  accruals)  necessary to present  fairly the financial
position as of September  30, 2000 and the results of  operations  for the three
and nine months  ended  September  30, 2000 and 1999 and cash flows for the nine
months ended  September  30, 2000 and 1999.  The results of  operations  for the
three and nine months  ended  September  30,  2000 and 1999 are not  necessarily
indicative of the results to be expected for the full year.

     The  unaudited   consolidated   financial  statements  should  be  read  in
conjunction  with the  financial  statements  included in CE  Generation,  LLC's
annual report on Form 10-K for the year ended December 31, 1999.

2. Equity Investment in Saranac:

     CE  Generation   indirectly  holds   noncontrolling   general  and  limited
partnership  interests in Saranac Power  Partners,  L.P.  ("Saranac")  which was
formed to build,  own and operate natural gas fired combined cycle  cogeneration
facilities.  Under the Saranac partnership agreement,  the economic interests of
the partners flip after certain limited  partners achieve fixed rates of return.
In January 2000, TPC Saranac, a limited partner, achieved an after tax return of
8.35%.  Following this  achievement,  CE Generation's  economic  interest in the
partnership  increased to approximately 64%. Effective January 2000, the Saranac
Project  investment is no longer  reported as an equity  investment but is fully
consolidated into CE Generation  financial results.  The following is summarized
financial information for Saranac as of December 31, 1999 (in thousands):

         Cash and investments                        $  2,559
         Restricted cash                                7,223
         Accounts receivable                           15,099
         Property, plant and equipment, net           349,105
         Other assets                                  13,683

         Current liabilities                            9,022
         Project loans                                181,108
         Due to affiliates                              2,223
         Total equity                                 195,316

     CE  Generation  will  have an  approximate  80%  economic  interest  in the
partnership  after General  Electric  Capital  Company,  another Saranac limited
partner, achieves an after tax return of 7.252%.

3. Commitments and Contingencies

     On  February  14,  1995,  NYSEG  filed  with  the  FERC  a  Petition  for a
Declaratory  Order,  Complaint,  and Request for  Modification of Rates in Power
Purchase  Agreements Imposed Pursuant to the Public Utility Regulatory  Policies
Act of 1978  ("Petition")  seeking FERC (i) to declare that the rates NYSEG pays
under  the  Saranac  PPA,  which was  approved  by the New York  Public  Service
Commission  (the "PSC"),  were in excess of the level  permitted under PURPA and
(ii) to  authorize  the PSC to reform the Saranac  PPA. On March 14,  1995,  the
Saranac Partnership  intervened in opposition to the Petition  asserting,  inter
alia,  that the Saranac PPA fully  complied with PURPA,  that NYSEG's action was
untimely and that the FERC lacked  authority to modify the Saranac PPA. On April
12, 1995,  the FERC by a unanimous  (5-0)  decision  issued an order denying the
various forms of relief  requested by NYSEG and finding that the rates  required
under the Saranac PPA were consistent with PURPA and the FERC's regulations.  On
May 11, 1995,  NYSEG requested  rehearing of the order and, by order issued July
19, 1995, the FERC unanimously  (5-0) denied NYSEG's request.  On June 14, 1995,
NYSEG petitioned the United States Court of Appeals for the District of Columbia
Circuit (the "Court of Appeals") for review of FERC's April 12, 1995 order. FERC
moved to dismiss  NYSEG's  petition for review on July 28, 1995.  On October 30,
1996,  all  parties  filed  final  briefs  and the Court of  Appeals  heard oral
arguments on December 2, 1996. On July 11, 1997, the Court of Appeals  dismissed
NYSEG's appeal from FERC's denial of the petition on jurisdictional grounds.
<PAGE>

     On August 7, 1997,  NYSEG filed a complaint in the U.S.  District Court for
the Northern  District of New York against the FERC,  the PSC (and the Chairman,
Deputy  Chairman  and the  Commissioners  of the  PSC as  individuals  in  their
official capacity), the Saranac Partnership and Lockport Energy Associates, L.P.
("Lockport")  concerning the power purchase  agreements  that NYSEG entered into
with Saranac  Partners and  Lockport.  NYSEG's suit asserts that the PSC and the
FERC improperly  implemented  PURPA in authorizing the pricing terms that NYSEG,
the Saranac  Partnership and Lockport agreed to in those  contracts.  The action
raises  similar legal  arguments to those  rejected by the FERC in its April and
July 1995 orders.  NYSEG in addition  asks for  retroactive  reformation  of the
contracts  as of the date of  commercial  operation  and  seeks a refund of $281
million from the Saranac Partnership.  The Saranac Partnership and other parties
filed motions to dismiss and oral arguments on those motions were heard on March
2, 1998 and again on March 3, 1999.  On September  30, 2000 the  District  Court
granted the  motions to  dismiss.  NYSEG filed a Notice of Appeal on October 25,
2000 appealing the decision to the United States Court of Appeals for the Second
Circuit.  The Saranac Partnership believes that NYSEG's claims are without merit
for the same reasons  described  in the FERC's  order and the  District  Court's
decision.

     CE  Generation's  geothermal  and  cogeneration  facilities  are qualifying
facilities under the Public Utility Regulatory  Policies Act of 1978 (PURPA) and
their  contracts for the sale of electricity  are subject to  regulations  under
PURPA.  In order to promote open  competition in the industry,  legislation  has
been proposed in the U.S.  Congress that calls for either a repeal of PURPA on a
prospective basis or the significant  restructuring of the regulations governing
the electric industry,  including sections of PURPA. Current federal legislative
proposals would not abrogate,  amend, or modify existing contracts with electric
utilities.  The ultimate outcome of any proposed  legislation is unknown at this
time.

4. New Borrowings:

     On May 26, 2000, CE Generation  issued a $6.5 million 10% note due June 15,
2005, in favor of  MidAmerican  Energy  Holdings  Company and a $6.5 million 10%
note due June 15, 2005 in favor of El Paso Merchant  Energy  Company.  The notes
were prepaid, without premium or penalty, on October 16, 2000.

     On July 21,  1995,  Salton Sea Funding  Corporation  obtained a $15 million
seven year revolving  credit  agreement  between Credit Suisse as bank and agent
and other lenders.  The interest rate is at the Adjusted Base Rate plus .375% or
at the LIBOR rate plus 100 basis  points.  On May 26,  2000,  Salton Sea Funding
Corporation borrowed $15 million under its revolving credit agreement.  The loan
was repaid in two  installments,  $5 million on July 26, 2000 and $10 million on
August 28, 2000.

5. Yuma Power Purchase Agreement Termination:

     On April 11, 2000, Yuma Cogeneration  Associates  ("YCA") and San Diego Gas
and Electric  Company  ("SDG&E")  entered into a  termination  agreement for the
termination  of the Standard  Offer No. 2 Power  Purchase  with a Firm  Capacity
Qualifying  Facility  ("YCA  PPA"),  subject to the  approval of the  California
Public Utilities Commission ("CPUC"). If CPUC approval is received, an affiliate
of El Paso Energy Corporation ("El Paso") has agreed to purchase the Project.

<PAGE>
6. Related Party Transactions:

     Salton Sea Power LLC ("Salton Sea Power"),  a Salton Sea Guarantor,  and El
Paso Merchant  Energy L.P.  ("EPME")  entered into a power  marketing  agreement
commencing  June 13,  2000 and ending on June 30,  2000.  Under the terms of the
agreement, EPME purchased and Salton Sea Power sold all available power from the
Salton Sea Unit V  project.  EPME sold the  available  power into the bulk power
market.  The  purchase  price of the  available  power is the  value of the cash
actually  received  by EPME  for  the  sale of such  power,  plus  any  realized
renewable premiums.

     On June 9, 2000,  Salton Sea Power,  entered  into an agreement to sell all
available  power from the Salton Sea Unit V project to EPME.  Under the terms of
the agreement  commencing on July 1, 2000 and ending on September 30, 2000, EPME
purchased  up to 25 MW of  available  power for $53 per MWh,  together  with any
premiums  related to such power.  EPME also marketed any  available  power which
exceeded 25 MW on behalf of Salton Sea Power.

On  September  29,  2000,  Salton Sea Power LLC and CE Turbo LLC entered into an
agreement  to sell all  available  power from the Salton Sea Unit V and CE Turbo
projects to EPME. Under the terms of the agreement,  commencing  October 1, 2000
and ending  September 30, 2001,  EPME will purchase all available power and sell
available  power,  on behalf of Salton Sea Power,  into the PX or California ISO
markets.  The purchase price for the available  power shall be equivalent to the
value actually received by EPME for the sale of such power,  including renewable
premiums.

<PAGE>

Item 2. Management's  Discussion and Analysis of Financial Condition and Results
of Operations

     The  following  is  management's  discussion  and  analysis of  significant
factors  which  have  affected  CE  Generation,  LLC's ("CE  Generation"  or the
"Company")  financial  condition  and results of  operations  during the periods
included in the  accompanying  statements of  operations.  The Company's  actual
results in the future could differ significantly from the historical results.

Recent Events

     Effective January 2000, CE Generation's  economic  ownership in the Saranac
Project increased to approximately  64%. This increase resulted from TPC Saranac
achieving an after tax return of 8.35%. This achievement  resulted in lower cash
flows  to TPC  Saranac  and  higher  cash  flows  to CE  Generation.  Due to the
increased ownership,  the project is now fully consolidated into CE Generation's
results of  operations.  The project was  previously  accounted for as an equity
investment.

     On April 11, 2000, Yuma Cogeneration  Associates  ("YCA") and San Diego Gas
and Electric  Company  ("SDG&E")  entered into a  termination  agreement for the
termination  of the Standard  Offer No. 2 Power  Purchase  with a Firm  Capacity
Qualifying  Facility  ("YCA  PPA"),  subject to the  approval of the  California
Public Utilities Commission ("CPUC"). If CPUC approval is received, an affiliate
of El Paso Energy Corporation ("El Paso") has agreed to purchase the Project.

Business

     MidAmerican  completed a strategic  restructuring  in conjunction  with its
acquisition  in March 1999 of MHC Inc.  (formerly  MidAmerican  Energy  Holdings
Company) in which  MidAmerican's  common stock  interests in Magma Power Company
("Magma"),  Falcon Seaboard Resources,  Inc. ("FSRI") and CalEnergy  Development
Company ("CEDC"),  and their subsidiaries  (which own the geothermal and natural
gas-fired  combined  cycle  cogeneration   facilities   described  below),  were
contributed by MidAmerican to CE Generation. This restructuring was completed in
February 1999.

     The consolidated  financial  statements reflect the consolidated  financial
statements  of  Magma  and  subsidiaries  (excluding  wholly-owned  subsidiaries
retained by MidAmerican), FSRI and its subsidiaries and YCA, each a wholly-owned
subsidiary.  The  consolidated  financial  statements  present  CE  Generation's
financial  position,  results of  operations  and cash flows as if CE Generation
were a separate legal entity for all periods presented.  The basis in assets and
liabilities have been carried over from MidAmerican.  All material  intercompany
transactions and balances have been eliminated in consolidation.

     The following table sets out information concerning CE Generation Projects:

PROJECT              FUEL             COMMERCIAL       CAPACITY       LOCATION
                                       OPERATION

Vulcan               Geothermal       1986             34 MW          California
Del Ranch            Geothermal       1989             38 MW          California
Elmore               Geothermal       1989             38 MW          California
Leathers             Geothermal       1990             38 MW          California
CE Turbo             Geothermal       2000(1)          10 MW          California
Salton Sea I         Geothermal       1987             10 MW          California
Salton Sea II        Geothermal       1990             20 MW          California
Salton Sea III       Geothermal       1989             49.8 MW        California
Salton Sea IV        Geothermal       1996             39.6 MW        California
Salton Sea V         Geothermal       2000(1)          49 MW          California
Power Resources      Gas              1988             200 MW         Texas
Yuma                 Gas              1994             50 MW          Arizona
Saranac              Gas              1994             240 MW         New York

     (1) The Salton Sea V Project and the CE Turbo Project commenced  commercial
operation in the third quarter of 2000.
<PAGE>

     The Vulcan Project, Del Ranch Project, Elmore Project, Leathers Project and
CE Turbo Project are referred to as the Partnership  Projects.  The Salton Sea I
Project,  Salton Sea II Project,  Salton Sea III Project,  Salton Sea IV Project
and Salton  Sea V Project  are  referred  to as the  Salton  Sea  Projects.  The
Partnership Projects and the Salton Sea Projects are collectively referred to as
the Imperial  Valley  Projects.  The Power Resources  Project,  Yuma Project and
Saranac Project are collectively referred to as the Gas Projects.

Factors Affecting Results of Operations

     The capacity factor for a particular  project is determined by dividing the
total quantity of electricity sold by the product of the project's  capacity and
the total hours in the year.  Each plant  possesses  an  operating  margin which
allows for production in excess of the amounts listed above. Utilization of this
operating  margin is based upon a variety of factors and can be expected to vary
throughout the year under normal  operating  conditions.  The amount of revenues
received  by these  projects is affected by the extent to which they are able to
operate and generate electricity.  Accordingly, the capacity and capacity factor
figures  provide  information  on  operating  performance  that has affected the
revenues received by these projects.

Power Purchase Agreements

     Imperial  Valley  Projects.  The  operating  Partnership  Projects sell all
electricity  generated  by  the  respective  plants  under  four  long-term  SO4
Agreements  between the  Partnership  Projects  and Southern  California  Edison
Company ("Edison"). These SO4 Agreements provide for capacity payments, capacity
bonus  payments and energy  payments.  Edison  makes fixed  annual  capacity and
capacity bonus payments to the Partnership  Projects to the extent that capacity
factors exceed  benchmarks set forth in the  agreements.  The price for capacity
and capacity bonus payments is fixed for the life of the SO4 Agreements.  Energy
is sold at  increasing  scheduled  rates  for the first  ten  years  after  firm
operation  and  thereafter  at rates  based on the cost  that  Edison  avoids by
purchasing  energy from the  Imperial  Valley  Partnership  Projects  instead of
obtaining the energy from other sources.

     The scheduled energy price periods of the Partnership  Projects'  long-term
agreements  extended  until  February  1996,  December  1998,  December 1998 and
December 1999 for each of the Vulcan Project, Del Ranch Project,  Elmore Project
and Leathers  Project,  respectively.  For 2000,  the  Partnership  Projects are
receiving  Edison's  avoided  cost of energy  pursuant to their  respective  SO4
Agreements.

     Salton  Sea Unit I Project  sells  electricity  to  Edison  under a 30-year
negotiated  power  purchase  agreement,  which  provides for capacity and energy
payments.  The energy payment is calculated  using a base price which is subject
to quarterly  adjustments based on a basket of indices. The time period weighted
average  energy  payment  for Salton Sea Unit I was 5.6 cents per  kilowatt-hour
during the nine months ended  September 30, 2000. As the Salton Sea Unit I Power
Purchase  Agreement  ("PPA") is not a SO4 Agreement,  the energy payments do not
revert to payments  based on the cost that Edison  avoids by  purchasing  energy
from Salton Sea Unit I instead of obtaining the energy from other  sources.  The
capacity payment is approximately $1.1 million per annum.
<PAGE>

     Salton Sea Unit II Project and Salton Sea Unit III Project sell electricity
to Edison  under  30-year  modified  SO4  Agreements  that  provide for capacity
payments,  capacity bonus payments and energy  payments.  The price for contract
capacity  and  contract  capacity  bonus  payments  is fixed for the life of the
modified  SO4  Agreements.  The energy  payments  for each of the first ten year
periods, which periods expired in April 2000 and February 1999 for Salton Sea II
and Salton Sea III,  respectively,  were  levelized  at a time  period  weighted
average  of 10.6 cents per  kilowatt-hour  and 9.8 cents per  kilowatt-hour  for
Salton Sea Unit II and Salton Sea Unit III, respectively. Currently, the monthly
energy  payments are based on the cost that Edison avoids by  purchasing  energy
from  Salton Sea Unit II or III  instead  of  obtaining  the  energy  from other
sources. For Salton Sea Unit II only, Edison is entitled to receive, at no cost,
5% of all  energy  delivered  in  excess  of 80% of  contract  capacity  through
September 30, 2004.  The annual  capacity and bonus payments for Salton Sea Unit
II and Salton Sea Unit III are  approximately  $3.3  million  and $9.7  million,
respectively.

     Salton Sea Unit IV Project sells electricity to Edison under a modified SO4
Agreement  which  provides  for  contract  capacity  payments on 34 megawatts of
capacity at two  different  rates based on the  respective  contract  capacities
deemed  attributable to the original Salton Sea Unit I PPA option (20 megawatts)
and to the original Fish Lake PPA (14 megawatts). The capacity payment price for
the 20 megawatts  portion adjusts quarterly based upon specified indices and the
capacity  payment price for the 14 megawatts  portion is a fixed levelized rate.
The energy payment (for deliveries up to a rate of 39.6 megawatts) is at a fixed
rate for 55.6% of the total energy  delivered by Salton Sea Unit IV and is based
on an energy payment  schedule for 44.4% of the total energy delivered by Salton
Sea Unit IV.  The  contract  has a 30-year  term but Edison is not  required  to
purchase the 20 megawatts of capacity and energy originally  attributable to the
Salton Sea Unit I PPA option after September 30, 2017, the original  termination
date of the Salton Sea Unit I PPA.

     Salton  Sea Unit V Project  will sell  approximately  one-third  of its net
output to a zinc facility,  which is owned by a subsidiary of MidAmerican and is
expected to commence  operation in the fourth  quarter of 2000. The remainder of
the Salton Sea Unit V output is sold through the California  Power Exchange (the
"PX") or in other market  transactions.  The PX was created to establish markets
for the sale of power on a daily and hourly basis.  Thus, PX prices are expected
to have the characteristics of short term spot prices and to fluctuate from time
to time in a manner that cannot be predicted with accuracy.

     For the nine months ended  September  30, 2000 and 1999,  Edison's  average
price  paid  for  energy  was  4.6  cents  and  2.9  cents,   respectively   per
kilowatt-hour.  Estimates  of  Edison's  future  avoided  cost  of  energy  vary
substantially from year to year and therefore cannot be predicted with accuracy.

     Gas  Projects.  The Saranac  Project sells  electricity  to NYSEG under the
Saranac PPA, which provides for capacity and energy payments. Capacity payments,
which for the nine  months  ended  September  30,  2000  totaled  2.47 cents per
kilowatt-hour,  are received  for  electricity  produced  during "peak hours" as
defined in the Saranac PPA and escalate at  approximately  4.1% annually for the
remaining term of the contract.  Energy  payments,  which averaged 7.4 cents per
kilowatt-hour  for the  nine  months  ended  September  30,  2000,  escalate  at
approximately  4.4%  annually  for the  remaining  term of the Saranac  PPA. The
Saranac PPA expires in June of 2009.

     The Power Resources Project sells  electricity to Texas Utilities  Electric
Company under the Power  Resources  PPA,  which provides for capacity and energy
payments. Capacity payments and energy payments, which for the nine months ended
September 30, 2000 were $3.4 million per month and 3.16 cents per kilowatt-hour,
respectively,  escalate at 3.5%  annually  for the  remaining  term of the Power
Resources PPA. The Power Resources PPA expires in September 2003.
<PAGE>

     The Yuma Project sells  electricity to SDG&E under the Yuma PPA. The energy
is sold at a price based on the cost that SDG&E avoids by purchasing energy from
the Yuma  Project  instead of  obtaining  the energy from other  sources and the
capacity  is sold to SDG&E at a fixed  price for the life of the Yuma  PPA.  The
power is delivered to SDG&E over  transmission  lines  constructed  and owned by
Arizona Public Service Company ("APS").

Results of Operations

     Sales of  electricity  and steam  increased to $146.5 million for the three
months ended  September 30, 2000 from $90.0 million for the same period in 1999.
$43  million  of this  increase  was a result  of a change in  ownership  in the
Saranac Project, which resulted in full consolidation of the Project's financial
results versus equity  accounting in 1999. $7.7 million of the increase reflects
the  addition of Salton Sea Unit V and CE Turbo  Projects.  $3.3 million of this
increase is attributed  to higher SRAC rates in the third  quarter of 2000.  For
the nine  months  ended  September  30,  2000,  sales of  electricity  and steam
increased  to $349.0  million  from $231.6  million for the same period in 1999.
$128.4  million of this  increase was a result of the change in ownership of the
Saranac  Project.  $10.1 million of the increase is the result of the additional
operations  of the Salton Sea Unit V and CE Turbo  Projects.  This  increase was
partially  offset by the  expiration  of fixed price  periods for the Salton Sea
Units II and III and Leathers  Projects and reduced  production  at the Imperial
Valley Projects.

     The  following   operating  data  represents  the  aggregate  capacity  and
electricity production of the Imperial Valley Projects:

                           Three Months Ended            Nine Months Ended
                              September 30,                 September 30,
                          2000              1999     2000                 1999

Overall capacity factor     90.1%          101.3%       82.0%             97.3%
Megawatt-hours produced   642,300         597,800   1,557,500         1,704,500
Capacity (net megawatts)
   (weighted average)       323.0          267.4        288.7             267.4

The overall  capacity factor for the Imperial Valley Projects  decreased for the
three and nine months ended  September  30, 2000 compared to the same periods in
1999 due to the scheduled and more extensive overhauls in 2000 than in 1999. The
megawatt hours produced for the three months ended  September 30, 2000 increased
from 1999 due to the addition of Salton Sea Unit V and the CE Turbo project.

<PAGE>

     The  following   operating  data  represents  the  aggregate  capacity  and
electricity production of the Gas Projects:

                                   Three Months Ended      Nine Months Ended
                                      September 30,           September 30,
                                 2000              1999  2000              1999

Overall capacity factor            91.9%          85.5%     89.6%          87.0%
Megawatt-hours produced          994,034      1,076,200 2,886,413      3,260,600
Capacity (net megawatts)(average)    490            570       490            570

     The overall  capacity  factor of the Gas  Projects  reflects  the effect of
contractual  curtailments.  The capacity factors adjusted for these  contractual
curtailments  during the nine  months  ended  September  30,  2000 and 1999 were
relatively  consistent  at 94.9%  and  96.6%,  respectively.  The  decreases  in
capacity  and  megawatt-hours  produced  are due to the  transfer  of the NorCon
Project to GE Capital in December 1999.

     The  decrease  in equity  earnings of  subsidiaries  for the three and nine
months  ended  September  30, 2000 from the same  periods in 1999  reflects  the
change in the  reporting of Saranac  Project  results from the equity  method in
1999 to full consolidation in 2000.

     Interest and other income decreased to $3.2 million during the three months
ended September 30, 2000 from $4.7 million for the same period in 1999. Interest
and  other  income  decreased  to $7.8  million  during  the nine  months  ended
September  30,  2000 from  $17.7  million  for the same  period  in 1999.  These
decreases  are  primarily  the result of the  recognition  of East Mesa  royalty
income in the first quarter of 1999 and lower interest  earned due to lower cash
balances as construction funds were expended.

     Plant operating  expenses increased during the three months ended September
30, 2000 to $61.7 million from $29.3 million for the same period in 1999.  $21.9
million of this  increase  was due to fully  consolidating  the Saranac  Project
results  versus  equity  reporting  in 1999.  For the nine  month  period  ended
September 30, 2000  operating  expenses  increased to $157.4  million from $84.8
million  in 1999.  $64.5  million of the  increase  was  primarily  due to fully
consolidating the Saranac Project results versus equity reporting in 1999. These
costs include operating,  maintenance,  resource, fuel and other plant operating
expenses.

     General and  administrative  expenses  decreased to $1.2 million during the
three months ended  September  30, 2000 from $1.3 million for the same period in
1999.  For the nine months ended  September 30, 2000 general and  administrative
costs  increased to $3.7 million from $3.3 million in 1999.  These costs include
administrative   services  provided  to  CE  Generation,   including  executive,
financial,  legal, tax and other corporate functions.  The year to date increase
is primarily due to increased legal and accounting services.

     Depreciation and  amortization  increased to $20.6 million during the three
months ended  September 30, 2000 from $14.5 million for the same period in 1999.
For the nine months  ended  September  30, 2000  depreciation  and  amortization
increased  to $59.7  million  from $43.4  million in 1999.  The  increases  were
primarily due to the full  consolidation of the Saranac Project results in 2000,
partially  offset by  reduced  step up  depreciation  after the end of the fixed
price  periods for the  Leathers  and Salton Sea Units II and III  Projects as a
result of greater value being  assigned to the  scheduled  price periods for the
contracts relating to these projects at the time of acquisition.

     Interest  expense,  less amounts  capitalized,  increased  during the three
months ended September 30, 2000 to $21.9 million from $18.0 million for the same
period in 1999.  For the nine months ended  September  30, 2000  interest,  less
amounts capitalized,  increased to $62.5 million from $55.7 million in 1999. The
increases resulted from CE Generation's  issuance of the senior secured notes in
March  of 1999  and the  consolidation  of  Saranac's  interest  expense.  These
variances were partially  offset by lower  interest  expense  resulting from the
paydown of Salton Sea Funding  Corporation and Power Resources  Project debt and
year to date higher  capitalized  interest due to the construction of Salton Sea
Unit V and CE Turbo.
<PAGE>

     The provision for income taxes  decreased to $8.5 million  during the three
months ended  September 30, 2000 from $14.2 million for the same period in 1999.
For the nine months ended  September  30,  2000,  the  provision  for income tax
decreased to $11.6 million from $30.5 million in 1999.  The changes from year to
year in the  effective  rate are due  primarily to the  generation of energy tax
credits related to the capital expenditures for CE Turbo and Salton Sea Unit V.

     The  extraordinary  item of $17.5 million in 1999 reflects the premium paid
and deferred  finance costs  associated with the repayment of its 9 7/8% limited
recourse senior secured notes.

Liquidity and Capital Resources

     Cash and cash  equivalents  were $68.9  million at  September  30,  2000 as
compared to $29.1 million at December 31, 1999. In addition, restricted cash was
$35.9  million and $32.6  million at  September  30, 2000 and December 31, 1999,
respectively.

     On May 26, 2000, CE Generation  issued a $6.5 million 10% note due June 15,
2005, in favor of  MidAmerican  Energy  Holdings  Company and a $6.5 million 10%
note due June 15, 2005 in favor of El Paso CE Generation  Holding  Company.  The
notes were prepaid without premium or penalty on October 16, 2000.

     On July 21,  1995,  Salton Sea Funding  Corporation  obtained a $15 million
seven year revolving  credit  agreement  between Credit Suisse as bank and agent
and other lenders.  The interest rate is at the Adjusted Base Rate plus .375% or
at the LIBOR rate plus 100 basis  points.  On May 26,  2000,  Salton Sea Funding
Corporation borrowed $15 million under its revolving credit agreement.  The loan
was repaid in two  installments,  $5 million on July 26, 2000 and $10 million on
August 28, 2000.

     Salton  Sea  Power  LLC,  one  of  CE  Generation's  indirect  wholly-owned
subsidiaries,  completed  construction and began operations of Salton Sea Unit V
in the third quarter of 2000. Salton Sea Unit V is a 49 net megawatt  geothermal
power plant which will sell approximately  one-third of its net output to a zinc
facility,  which is owned by a  MidAmerican  subsidiary  and is currently  under
construction.  The  remainder  is being sold  through the PX or in other  market
transactions.

     CE Turbo LLC, one of CE Generation's  indirect  wholly-owned  subsidiaries,
completed  construction and began operation of the CE Turbo Project in the third
quarter of 2000.  The CE Turbo Project has a capacity of 10 net  megawatts.  The
net output of the CE Turbo  Project is being sold to the zinc  facility  or sold
through the PX or in other market transactions.

     The  Partnership  Projects have upgraded the  geothermal  brine  processing
facilities  at the  Vulcan  and Del Ranch  Projects  with the  brine  facilities
construction.

     The net revenues,  equity  distributions and royalties from the Partnership
Projects are used to pay principal and interest  payments on outstanding  senior
secured bonds issued by the Salton Sea Funding Corporation,  the final series of
which  is  scheduled  to  mature  in  November  2018.  The  Salton  Sea  Funding
Corporation  debt is  guaranteed  by  subsidiaries  of Magma and  secured by the
capital stock of the Salton Sea Funding Corporation.  The proceeds of the Salton
Sea Funding  Corporation debt were loaned by the Salton Sea Funding  Corporation
under  loan  agreements  and  notes  to  subsidiaries  of  Magma  and  used  for
construction  of the  Salton  Sea  Unit V  Project  and  the CE  Turbo  Project,
refinancing of  indebtedness  and other  purposes.  Debt service on the Imperial
Valley loans is used to repay debt service on the Salton Sea Funding Corporation
debt.  The Imperial  Valley loans and the  guarantees  of the Salton Sea Funding
Corporation  debt  are  secured  by  substantially  all  of  the  assets  of the
guarantors,  including the Imperial Valley Projects, and by the equity interests
in the guarantors.
<PAGE>

     The  proceeds  of Series F of the Salton Sea Funding  Corporation  debt are
being used in part to construct the zinc  facility,  and the direct and indirect
owners of the zinc  facility are among the  guarantors of the Salton Sea Funding
Corporation debt.  MidAmerican has guaranteed the payment by the zinc guarantors
of a specified  portion of the  scheduled  debt service on the  Imperial  Valley
loans  described in the preceding  paragraph,  including  the current  principal
amount of $140.5 million and associated interest.

     Certain  information  included  in  this  report  contains  forward-looking
statements made pursuant to the Private Securities Litigation Reform Act of 1995
("Reform Act"). Such statements are based on current  expectations and involve a
number of known and unknown risks and uncertainties  that could cause the actual
results and  performance of the Company to differ  materially  from any expected
future  results or  performance,  expressed or implied,  by the  forward-looking
statements. In connection with the safe harbor provisions of the Reform Act, the
Company has  identified  important  factors that could cause  actual  results to
differ materially from such expectations, including development and construction
uncertainty,  operating  uncertainty,  acquisition  uncertainty,   uncertainties
relating to doing business outside of the United States,  uncertainties relating
to geothermal  resources,  uncertainties  relating to domestic and international
economic and  political  conditions  and  uncertainties  regarding the impact of
regulations,   changes  in  government   policy,   industry   deregulation   and
competition. Reference is made to all of the Company's SEC filings, incorporated
herein by reference,  for a description of such factors.  The Company assumes no
responsibility to update forward-looking information contained herein.

<PAGE>

                           Part II Other Information.

Item 1 - Legal Proceedings

     Neither CE  Generation  nor its  subsidiaries  are parties to any  material
legal matters except those described in Footnote 3 of CE Generation's  financial
statements.

Item 2 - Changes in Securities

         Not applicable.

Item 3 - Default on Senior Securities

         Not applicable.

Item 4 - Submission of Matters to a Vote of Security Holders.

         Not applicable.

Item 5 - Other Information

         Not applicable.

Item 6 - Exhibits and Reports on Form 8-K

(a)      Exhibits
                  Exhibit 27 - Financial Data Schedule

(b)      Report on Form 8-K
                  None.



<PAGE>

SIGNATURES

Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  Registrant  has duly  caused  this report to be signed on its
behalf by the undersigned thereunto duly authorized,  in the City of Des Moines,
State of Iowa, on this 14th day of November, 2000.

                                 CE Generation, LLC

                                /s/ Joseph M. Lillo
                                By:  Joseph M. Lillo
                                Vice President and Controller


<PAGE>

                                  EXHIBIT INDEX

Exhibit                                                                 Page
   No.                                                                   No.

  27                      Financial Data Schedule                        19