Securities and Exchange Commission
                                 
                       Washington, DC  20549
                                 
                             Form 8-K
                                 
                          Current Report
                                 
              Pursuant to Section 13 or 15(d) of the
                   Securities Exchange Act 1934
                                 
                                 
                  Date of Report February 2, 1999
                 (Date of earliest event reported)
                                 
                                 
                                 
                  Salton Sea Funding Corporation
      (Exact name of registrant as specified in its charter)
                                 


  Delaware                    33-95538            47-0790493
(State of other          (Commission File       (IRS Employer
 jurisdiction of                Number)       Identification No.)
 incorporation)



 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




                              N/A
 (Former name or former address, if changed since last report)

Item 5.  Other Events

      On  February  2,  1999, CalEnergy announced that  Salton  Sea
Funding  Corporation commenced a consent solicitation  relating  to
its  6.69%  Senior  Secured Series A Notes due 2000,  7.37%  Senior
Secured  Series  B  Bonds due 2005, 7.84% Senior Secured  Series  C
Bonds due 2010, 7.02% Senior Secured Series D Notes due 2000, 8.30%
Senior  Secured  Series E Bonds due 2011, and 7.45% Senior  Secured
Series F Bonds due 2018.
A  copy of the press release is attached hereto as Exhibit 1 and is
incorporated herein by reference.

      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 Registrant to differ materially  from  any
expected  future results or performance, expressed or  implied,  by
the forward-looking statements including expectations regarding the
future  results of operations of Registrant and MidAmerican  Energy
Holdings  Company and the combined company, the intended  financing
of  the  merger and receipt of regulatory approvals.  In connection
with  the  safe harbor provisions of the Reform Act, the Registrant
has identified important factors that could cause actual results to
differ  materially  from such expectations,  including  development
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  (and  in
particular,  Indonesian)  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 Registrant's SEC Filings, including
the  Proxy Statement and the Registrant's Report on Form 8-K  dated
March  6, 1998, incorporated herein by reference, for a description
of  such factors.  The Company assumes no responsibility to  update
forward-looking information contained herein.


Item 7.  Financial Statements and Exhibits

Exhibit 1 - Press Release dated February 2, 1999



                           SIGNATURE


     Pursuant to the requirements of the Securities Exchange Act of
1934,  the  Registrant has duly caused this report to be signed  on
its behalf by the undersigned hereunto duly authorized.

                                   Salton Sea Funding Corporation




                              By:   \s\ Douglas L. Anderson
                                        Douglas L. Anderson
                                        Assistant Secretary and
                                        Assistant General Counsel




Dated: February 2, 1999


FOR IMMEDIATE RELEASE

Craig Hammett - Senior Vice President, Chief Financial Officer  402-341-4500
Patti McAtee - Director, Corporate Communications               402-341-4500
Kate Inverarity - Brunswick                                     212-333-3810
Mark Harnett - MacKenzie Partners, Inc.                         212-929-5500

   Salton Sea Funding Corporation Commences Consent Solicitation
                                 
$48,436,000 6.69% Senior Secured Series A Notes due 2000 (Cusip No. 795770AD8)
$106,980,000 7.37% Senior Secured Series B Bonds due 2005(Cusip No. 795770AE6)
$109,250,000 7.84% Senior Secured Series C Bonds due 2010(Cusip No. 795770AF3)
$12,150,000 7.02% Senior Secured Series D Notes due 2000 (Cusip No. 795770AJ5)
$65,000,000 8.30% Senior Secured Series E Bonds due 2011 (Cusip No. 795770AK2)
$285,000,000 7.475% Senior Secured Series F Bonds due 2018(Cusip No. 795770ALO)

     OMAHA, NEBRASKA, February 2, 1999:  CalEnergy Company, Inc.
("CalEnergy" or the "Company") (NYSE:  CE; PCX and London)
announced today that Salton Sea Funding Corporation (the "Funding
Corp."), a special purpose Delaware corporation and wholly-owned
indirect subsidiary of the Company, commenced a consent
solicitation relating to its 6.69% Senior Secured Series A Notes
due 2000 (the "Series A Notes"), 7.37% Senior Secured Series B
Bonds due 2005 (the "Series B Notes"), 7.84% Senior Secured Series
C Bonds due 2010 (the "Series C Bonds"), 7.02% Senior Secured
Series D Notes due 2000 (the "Series D Notes"), 8.30% Senior
Secured Series E Bonds due 2011 (the "Series E Bonds"), and 7.475%
Senior Secured Series F Bonds due 2018 (the "Series F Bonds") in
the aggregate principal amount currently outstanding of $
626,816,000 (collectively, the "Securities").  The Securities were
issued pursuant to the trust indenture, dated as of July 21, 1995,
as amended (the "Indenture"), among the Funding Corp. and Chase
Manhattan Bank and Trust Company National Association (the
"Trustee").  The Funding Corp. is soliciting consents to certain
amendments to the Indenture (the "Consents") pursuant to a Consent
Solicitation Statement.

     As more fully described in the Consent Solicitation Statement,
the proposed amendment will enable CalEnergy, among other things,
to divest that portion of its direct or indirect ownership
interests in those of its subsidiaries (the "Subsidiaries") that
directly or indirectly own its geothermal power generating
facilities located in the Imperial Valley, California
(collectively, the "Qualifying Facilities") such that, following
such divestiture or divestitures, it will own 50% of such
Qualifying Facilities (the "Divestiture").  The Divestiture is
required in order to meet certain regulatory requirements in
connection with CalEnergy's pending acquisition of MidAmerican
Energy Holdings Company.  The Indenture currently requires
CalEnergy to directly or indirectly own 51% of the Qualifying
Facilities.
     
     
                              -more-

CalEnergy Company, Inc.
February 2, 1999
Page -2-
     
     
     The fee to be paid for each consent properly delivered prior
to the expiration of the consent solicitation will be: a cash
payment of (i) $1.50 with respect to the Series A Notes, Series B
Notes and Series D Notes, (ii) $2.00 with respect to the Series C
Bonds and Series E Bonds, and (iii) $2.50 with respect to the
Series F Bonds, in each case per $1,000 in principal amount of the
Securities (the "Consent Payment") in respect of which such Consent
has been delivered and not revoked.  The payment of the Consent
Payment is subject to a number of conditions which are set forth in
the Consent Solicitation Statement including the receipt of the
requisite Consents from at least 51% in aggregate principal amount
of the Securities outstanding (the "Requisite Consents").
Revocations of Consents may be made at any time prior to delivery
of the Requisite Consents.
     
     The consent solicitation will be open until 5 p.m., Eastern
Standard Time, on February 12, 1999 unless otherwise amended or
extended.  MacKenzie Partners, Inc. is the Information Agent and
IBJ Whitehall Financial Group is the Tabulation Agent in connection
with the Consent Solicitation.  Questions regarding the terms of
the consent solicitation, the delivery procedures for the consents
and requests for additional copies of the consent solicitation
statement or related documents may be directed to Jeanne Carr or
Mark Harnett at the Information Agent at (800) 322-2885 or (212)
929-5500 (call collect).

     CalEnergy is a global energy company that manages and owns
interests in over 5,000 net megawatts of power generation
facilities in operation, construction and development worldwide.
The Company develops and produces energy from diversified fuel
sources including geothermal, natural gas and hydroelectric.
Through its subsidiary Northern Electric, CalEnergy supplies and
distributes electricity and gas to approximately 2.0 million
customers in the United Kingdom.  CalEnergy conducts business in
the U.S., U.K., the Philippines, Indonesia, Poland and Australia,
and employs more than 4,400 people worldwide.  For the year ended
December 31, 1998, CalEnergy generated revenues of nearly $2.7
billion and at December 31, 1998 had assets of approximately $9.1
billion.

                         www.calenergy.com