MidAmerican relies on $290m insurance policy

MidAmerican relies on $290m insurance policy

CHICAGO (Dow Jones): MidAmerican Energy Holdings Co. (MEC)
said Thursday that it won't take a US$285 million charge as a
result of failed investments in Indonesian power plants.

Though MidAmerican received a favorable judgment late Tuesday
of $575 million against the Indonesian Ministry of Finance from
an international panel that reviewed the case, the company doubts
it will see a payment as a result.

That means MidAmerican would instead rely on an international
insurance policy it took out before the projects began. The $290
million policy covers the company's investments, a spokeswoman
said.

"We hope that they would cut a check right now, but they
haven't," said Robert S. Silverman, president of CalEnergy
International Inc., the MidAmerican subsidiary that has oversight
of the Indonesian projects. "We're still hopeful about the
process, but we've already filed with the insurers."

MidAmerican spokesman Kevin Waetke said the company had no
immediate comment about any impact on future earnings.

Two MidAmerican subsidiaries, Himpurna California Energy Ltd.
and Patuha Power Ltd., were awarded contracts to build and
operate power plants in Indonesia in 1994. But after the
country's economy collapsed in 1997, the Indonesian government
forced the two companies to suspend development.

The insurance policy is from the Overseas Private Investment
Corp., a U.S. agency that protects assets of U.S. companies in
foreign countries.

The matter is expected to be resolved by the end of the year,
Waetke said.

In 1997, the company reported an $87 million initial charge
related to the Indonesian plants.