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 June 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 CE Generation Holding Company as of July 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
  Item 3.    Quantative and Qualitative Disclosures About Market Risk.........15

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  June  30,  2000,  and  the  related
consolidated  statements of operations for the three and six month periods ended
June 30,  2000 and 1999 and of cash flows for the six month  periods  ended June
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 sheets 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
July 21, 2000

<PAGE>

                       CE GENERATION, LLC AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

                             (Amounts in Thousands)

<TABLE>
<CAPTION>

                                                                       June 30,               December  31,
                                                                         2000                      1999
                                                                  --------------            --------------
 ASSETS

<S>                                                             <C>                       <C>
 Cash and cash equivalents                                      $         29,924          $         29,120
 Restricted cash                                                          13,566                     6,776
 Accounts receivable                                                      59,899                    40,688
 Prepaid expenses and other assets                                        43,410                    30,195
 Due from affiliates                                                         748                     3,794
 Deferred income taxes                                                     9,256                     9,256
                                                                ----------------          ----------------
 Total current assets                                                    156,803                   119,829

 Restricted cash                                                          14,911                    25,836
 Properties, plants, contracts and equipment, net                      1,373,679                 1,017,342
 Equity investments                                                          ---                   118,637
 Excess of cost over fair value of net assets acquired, net              281,092                   285,888
 Note receivable from related party                                      140,520                   140,520
 Deferred financing charges and other assets                              13,706                    17,359
                                                                ----------------          ----------------

 Total assets                                                   $      1,980,711          $      1,725,411
                                                                ================          ================

 LIABILITIES AND MEMBERS' EQUITY
 Liabilities:
 Accounts payable and other accrued liabilities                 $         40,868          $         41,314
 Revolving loan                                                           15,000                       ---
 Notes payable to related parties                                         13,000                       ---
 Current portion of long term debt                                        52,988                    51,520
                                                                ----------------          ----------------
 Total current liabilities                                               121,856                    92,834

 Project loan                                                            216,651                    60,173
 Salton Sea notes and bonds                                              532,078                   543,948
 Senior secured bonds                                                    383,300                   389,600
 Deferred income taxes                                                   242,727                   246,576
                                                                ----------------          ----------------
 Total liabilities                                                     1,496,612                 1,333,131
 Minority interest                                                        72,914                       ---
 Commitments and contingencies (Note 3)

 Members' equity                                                         411,185                   392,280
                                                                ----------------          ----------------

 Total liabilities and equity                                   $      1,980,711          $      1,725,411
                                                                ================          ================
</TABLE>

     The accompanying notes are an integral part of these financial statements.

<PAGE>

                       CE GENERATION, LLC AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS

                             (Amounts in Thousands)

<TABLE>
<CAPTION>

                                                       Three Months Ended                Six Months Ended
                                                            June 30                          June 30,
                                                      2000           1999                2000           1999
                                                      ----           ----                ----           ----

 Revenue:

<S>                                            <C>            <C>                 <C>            <C>
 Sales of electricity and steam                $     110,456  $      72,924       $     202,433  $     141,585

 Equity earnings in subsidiaries                         ---          6,135                 ---         12,337

 Interest and other income                             2,049          4,861               4,542         12,963
                                               -------------  -------------       -------------  -------------

 Total revenues                                      112,505         83,920             206,975        166,885



 Cost and Expenses:

 Plant operations                                     47,988         28,770              95,607         55,567

 General and administrative                            1,877            896               2,854          1,995

 Depreciation and amortization                        19,722         14,474              39,097         28,926

 Interest expense                                     22,406         20,228              44,801         38,732

 Less interest capitalized                            (1,866)          (645)             (4,217)        (1,045)
                                               -------------- --------------      -------------- --------------

 Total expenses                                       90,127         63,723             178,142        124,175
                                               -------------  -------------       -------------  -------------



 Income before provision for income taxes             22,378         20,197              28,833         42,710

 Provision for income taxes                            2,749          8,472               3,137         16,358
                                               -------------  -------------       -------------  -------------

 Income before minority interest and

      extraordinary item                              19,629         11,725              25,696         26,352

 Minority interest                                     2,690            ---               6,791            ---
                                               -------------  -------------       -------------  -------------

 Income before extraordinary item                     16,939         11,725              18,905         26,352

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

 Net income                                    $      16,939  $      11,725       $      18,905  $       8,874
                                               =============  =============        ============  =============
</TABLE>

     The accompanying notes are an integral part of these financial statements.

<PAGE>

                       CE GENERATION, LLC AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                             (Amounts in Thousands)

<TABLE>
<CAPTION>

                                                                                       Six Months Ended
                                                                                           June 30,

                                                                                     2000              1999
                                                                                     ----              ----
 Cash flows from operating activities:

<S>                                                                          <C>               <C>
 Net income                                                                  $      18,905     $       8,874
 Adjustments to reconcile to cash flows from
     operating activities:
 Extraordinary item, net of tax                                                        ---            17,478
 Depreciation and amortization                                                      39,097            28,926
 Provision for deferred income taxes                                                (3,849)            6,340
 Distribution from equity investments in excess of related
     equity earnings                                                                   ---             4,128
 Distributions to minority interest in excess of related income                     (3,765)              ---
 Changes in other items:
    Accounts receivable                                                             (4,112)            7,958
    Due from affiliates                                                                812            (1,590)
    Accounts payable and other accrued liabilities                                  (9,639)           (2,913)
    Other assets                                                                    (3,394)           12,233
                                                                             --------------    -------------

 Net cash flows from operating activities                                           34,227            81,434

 Cash flows from investing activities:

 Capital expenditures                                                              (41,243)          (81,724)
 Consolidation of former equity investment's cash                                    2,559               ---
 Decrease (increase) in restricted cash                                             18,403           (10,123)
                                                                             -------------     --------------

 Net cash flows from investing activities                                          (20,281)          (91,847)

 Cash flows from financing activities:

 Proceeds from revolving loan                                                       15,000               ---
 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                                                        (41,321)          (29,686)
 Distributions to MEHC, net of advances                                                ---          (122,080)
 Decrease in restricted cash                                                           179            21,168
                                                                             -------------     -------------

 Net cash flows from financing activities                                          (13,142)              102
                                                                             --------------    -------------

 Net increase (decrease) in cash and cash equivalents                                  804           (10,311)

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

 Cash and cash equivalents at end of period                                  $      29,924     $      15,463
                                                                             =============     =============

 Supplemental disclosure:
 Interest paid                                                               $      49,501     $      48,021
                                                                             =============     =============
 Income taxes paid                                                           $       7,202     $       5,371
                                                                             =============     =============
</TABLE>

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

  The accompanying notes are an integral part of these financial statements.

<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 June 30, 2000 and the results of operations for the three and six
months ended June 30, 2000 and 1999 and cash flows for the six months ended June
30, 2000 and 1999.  The results of operations for the three and six months ended
June 30,  2000 and 1999 are not  necessarily  indicative  of the  results  to be
expected for the full year.

         The  unaudited   combined   financial   statements  shall  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 approximately 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

<PAGE>

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.

         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 have filed motions to dismiss and oral  arguments on those motions
were heard on March 2, 1998 and again on March 3, 1999. The Saranac  Partnership
believes that NYSEG's claims are without merit for the same reasons described in
the FERC's orders.

         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 CE Generation  Holding  Company.  The
notes may be prepaid at any time  without  premium or penalty.  The proceeds are
being used to fund the construction projects in the Imperial Valley.

         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
is due 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  subsidiary  of  CE
Generation,  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 and CE Turbo  projects to EPME.
Under  the  terms of the  agreement  commencing  on July 1,  2000 and  ending on
September 30, 2000,  EPME will  purchase up to 25 MW of available  power for $53
per MWh, together with any premiums related to such power. EPME will also market
any  available  power which  exceeds 25 MW on behalf of Salton Sea Power and any
available power from CE Turbo LLC.

<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
<PAGE>

 (1)     The Salton  Sea V Project  commenced  testing in the second  quarter of
         2000.  The CE Turbo  Project  is under  construction  and  expected  to
         commence commercial operation in the third quarter of 2000.

         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.  The capacity  factors for the Vulcan  Project,
Hoch (Del Ranch) Project,  Elmore Project and Leathers  Project plants are based
on  capacity  amounts  of 34,  38, 38 and 38 net  megawatts,  respectively.  The
capacity  factors  for Salton Sea Unit I  Project,  Salton Sea Unit II  Project,
Salton Sea Unit III  Project,  Salton Sea Unit IV Project  and Salton Sea Unit V
Project  plants are based on capacity  amounts of 10, 20, 49.8,  39.6 and 49 net
megawatts,  respectively.  The capacity factors for the Saranac  Project,  Power
Resources  Project and Yuma Project plants are based on capacity amounts of 240,
200 and 50 net megawatts, respectively. Each plant possesses an operating margin
which allows for production in excess of the amount 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.

<PAGE>

         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 5.5 cents per  kilowatt-hour
during  the six  months  ended  June 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.

         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.  Thereafter,  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 third  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 six months ended June 30, 2000 and 1999, Edison's average price
paid for  energy was 3.8 cents and 2.7 cents,  respectively  per  kilowatt-hour.
Estimates of Edison's future avoided cost of energy vary substantially from year
to year.  The Company cannot predict the likely level of energy prices under the
SO4  Agreements  and  the  modified  SO4  Agreements  at the  expiration  of the
scheduled  payment  periods.  If the Leathers  Project  received avoided cost of
energy rates in 1999 rather than the contract energy prices, revenues would have
decreased  from $29.1 million to $7.7 million in the six month period ended June
30, 1999.

         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  six  months   ended  June  30,  2000   totaled  2.5  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 six months ended June 30, 2000,  escalate at approximately
4.4% annually for the remaining term of the Saranac PPA. The Saranac PPA expires
in June of 2009.

<PAGE>

         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 six months
ended  June  30,   2000  were  $3.4   million  per  month  and  3.27  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.

         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 $110.5  million for the
three months ended June 30, 2000 from $72.9 million for the same period in 1999.
For the six months ended June 30, 2000, sales of electricity and steam increased
to $202.4 million from $141.6 million for the same period in 1999. $85.4 million
of this  increase was a result of a change in ownership of the Saranac  Project,
which resulted in full  consolidation of the Project's  financial results versus
equity  accounting in 1999. 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          Six Months Ended
                                June 30,                   June 30,
                             2000     1999              2000      1999
                         ----------------------   -------------------------

Overall capacity factor      88.9%     94.0%            77.2%       95.3%
Megawatt-hours produced    519,600   549,200          902,100   1,106,700
Capacity (net megawatts)
   (weighted average)        267.4     267.4            267.4       267.4

         The overall capacity factor for the Imperial Valley Projects  decreased
for the three and six months ended June 30, 2000 compared to the same periods in
1999 due to the scheduled and more extensive overhauls in 2000 than in 1999.

<PAGE>

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

                                   Three Months Ended      Six Months Ended
                                         June 30,               June 30,
                                     2000       1999       2000           1999
                                 ----------------------  -----------------------

Overall capacity factor              86.8%      89.3%       88.5%          89.2%
Megawatt-hours produced            927,900  1,110,100   1,892,300      2,184,400
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 six months  ended June 30, 2000 and 1999 were 96.6% and
94.2%,  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 six
months ended June 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 $2.0 million  during the three
months  ended  June 30,  2000 from  $4.9  million  for the same  period in 1999.
Interest and other income  decreased to $4.5 million during the six months ended
June 30, 2000 from $13.0  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 June
30, 2000 to $48.0  million from $28.8  million for the same period in 1999.  For
the six month period ended June 30, 2000 operating  expenses  increased to $95.6
million from $55.6 million in 1999. These costs include operating,  maintenance,
resource,  fuel and other plant operating expenses. The increases were primarily
due to fully  consolidating  the Saranac Project results versus equity reporting
in 1999.

         General and  administrative  expenses  increased to $1.9 million during
the three  months  ended June 30, 2000 from $0.9  million for the same period in
1999.  For the six months ended June 30, 2000 general and  administrative  costs
increased  to $2.9  million  from $2.0  million  in 1999.  These  costs  include
administrative   services  provided  to  CE  Generation,   including  executive,
financial, legal, tax and other corporate functions. The increases are primarily
due to increased legal and accounting services.

         Depreciation  and  amortization  increased to $19.7 million  during the
three months ended June 30, 2000 from $14.5 million for the same period in 1999.
For the six months ended June 30, 2000  depreciation and amortization  increased
to $39.1 million from $28.9 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 June 30,  2000 to $20.5  million  from $19.6  million for the same
period in 1999.  For the six months ended June 30, 2000  interest,  less amounts
capitalized increased to $40.6 million from $37.7 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 higher capitalized
interest due to the continued construction of Salton Sea Unit V.

<PAGE>

         The  provision  for income taxes  decreased to $2.7 million  during the
three  months ended June 30, 2000 from $8.7 million for the same period in 1999.
For the six months ended June 30, 2000,  the  provision for income tax decreased
to $3.1 million from $16.5 million in 1999. The changes from year to year in the
effective rate are due primarily to the generation and utilization of energy tax
credits and depletion deductions.

         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  $29.9  million  at June 30,  2000 as
compared to $29.1 million at December 31, 1999. In addition, restricted cash was
$28.5  million  and  $32.6  million  at June 30,  2000 and  December  31,  1999,
respectively.  The decrease in  restricted  cash was primarily due to the use of
restricted cash for  construction at the Imperial Valley partially offset by the
full  consolidation  of the Saranac  Project balance sheet in 2000 versus equity
accounting in 1999.

         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 may be prepaid at any time  without  premium or penalty.  The proceeds are
being used to fund the construction projects in the Imperial Valley.

         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
is due 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,  is constructing  and testing Salton Sea Unit V. 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 currently under construction. The remainder is being sold through
the PX or in other market transactions.

         Salton  Sea Unit V is being  constructed  pursuant  to a date  certain,
fixed price,  turn-key  engineering,  procurement and  construction  contract by
Stone & Webster Engineering  Corporation.  Total project costs of the Salton Sea
Unit V Project are expected to be  approximately  $119.1  million which is being
funded by $83.3  million of debt from Salton Sea Funding  Corporation  and $35.8
million from equity contributions.  Salton Sea Power has incurred  approximately
$102.2 million of these costs through June 30, 2000.

         CE  Turbo   LLC,   one  of  CE   Generation's   indirect   wholly-owned
subsidiaries,  is constructing  the CE Turbo Project.  The CE Turbo Project will
have a capacity of 10 net megawatts. The net output of the CE Turbo Project will
be  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 CE Turbo  Project  is being  and the  brine  facilities  have  been
constructed by Stone & Webster pursuant to a date certain, fixed price, turn-key
engineering,  procurement  and  construction  contract.  The CE Turbo Project is
scheduled to commence  initial  operations  in the third quarter of 2000 and the
brine  facilities  is in  operation.  Total  project costs for both the CE Turbo
Project and the brine facilities are expected to be approximately  $63.7 million
which  is  being  funded  by $44.6  million  of debt  from  Salton  Sea  Funding
Corporation  and $19.1  million  from  equity  contributions.  The  Company  has
incurred approximately $54.5 million of these costs through June 30, 2000.

<PAGE>

         The EPC contractor's parent, Stone & Webster, Incorporated, voluntarily
filed Chapter 11 bankruptcy  on June 2, 2000 and has sold  substantially  all of
its  assets  to  Shaw  Group  Inc.  Shaw  Group  Inc.  has  agreed  to  complete
substantially  all of  Stone  &  Websters'  contracts  for  future  and  current
projects.  The Company does not believe this  situation  will cause any material
adverse effect on the final completion of those projects or the Company.

         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.

         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.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk:

         On June 9, 2000,  Salton Sea Power LLC, a subsidiary of CE  Generation,
entered into an agreement to sell all available power from the Salton Sea Unit V
and CE Turbo  projects to El Paso Merchant  Energy,  L.P. Under the terms of the
agreement  commencing  on July 1, 2000 and ending on September 30, 2000, El Paso
Merchant  Energy will  purchase up to 25 MW of available  power for $53 per MWh,
together with any premiums  related to such power.  El Paso will also market any
available  power  which  exceeds 25 MW on behalf of Salton Sea Power LLC and any
available power from CE Turbo LLC.

<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 Omaha, State
of Nebraska, on this 14th day of August, 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