COMMERCE ENERGY GROUP, INC.

COMMERCE ENERGY GROUP, INC.

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Company Overview
Commerce Energy Group, Inc., with headquarters in Orange County, California, is a US-based independent energy marketer of retail electric power and natural gas supply to residential, commercial, industrial and institutional customers. The company also provides consulting, technology and transaction data management services to energy-related businesses. The company is publicly traded on the American Stock Exchange (Amex) under the symbol: EGR. The company was originally founded in 1997 to participate in the deregulation of the electricity market in California.
Commerce operates through its two wholly-owned subsidiaries, Commerce Energy, Inc. and Skipping Stone Inc. Commerce Energy, Inc. is licensed by the Federal Energy Regulatory Commission, or FERC, and by state regulatory agencies as an unregulated retail marketer of natural gas and electricity. Skipping Stone Inc. provides energy-related consulting and technologies to utilities, electricity generators, natural gas pipelines, wholesale energy merchants, energy technology providers and financial institutions.
Commerce serves a broad base of residential, small business, commercial and industrial customers located across the U.S. in energy deregulated states. The company provides electricity to its customers in the variously deregulated California, Pennsylvania, Michigan, New Jersey, Maryland and Texas electricity markets. In addition to the states in which the company operates, the company is also licensed to supply retail electricity by applicable state agencies in New York, Ohio and Virginia. The company also provides natural gas to customers in California, Georgia, Maryland, New York, Ohio, and Pennsylvania.
Commerce is a leading independent U.S. electricity and natural gas marketing company. The company’s vision is to be recognized and trusted as the most innovative energy retailer, offering customer’s value in energy services and products that improves their lives, their businesses and the environment.
Business Summary
Commerce Energy Group, Inc. (Commerce) is an independent energy marketer of retail electric power and natural gas supply to residential, commercial, industrial and institutional customers. The Company operates through its two wholly owned subsidiaries: Commerce Energy, Inc. (Commerce Energy) and Skipping Stone Inc. (Skipping Stone). As of July 31, 2008, Commerce delivered electricity and natural gas supply to customers in 10 states and 23 utility service territories. The Company operates in one business segment, energy retailing. On October 24, 2008, Commerce Energy completed the sale of all of its electric service contracts with its customers in Texas and certain assets related to these contracts to Ambit Energy, L.P. (Ambit). In December 2008, the Company, through its wholly owned subsidiary Commerce Gas and Electric Corp., acquired Commerce Energy, Inc.
Description and history
Commerce Energy Group, Inc. (Commerce), incorporated in December 18, 2003, is an independent energy marketer of retail electric power and natural gas supply to residential, commercial, industrial and institutional customers. The Company operates through its two wholly owned subsidiaries: Commerce Energy, Inc. (Commerce Energy) and Skipping Stone Inc. (Skipping Stone). As of July 31, 2008, Commerce delivering electricity and natural gas supply to customers in 10 states and 23 utility service territories. The Company operates in one business segment, energy retailing. On October 24, 2008, Commerce Energy completed the sale of all of its electric service contracts with its customers in Texas and certain assets related to these contracts to Ambit Energy, L.P. (Ambit). In December 2008, the Company, through its wholly owned subsidiary Commerce Gas and Electric Corp., acquired Commerce Energy, Inc.

Commerce Energy, doing business as electricAmerica, is an unregulated retail marketer of natural gas and electricity. The Company provides natural gas and electricity to residential, commercial, industrial and institutional customers in 10 states. Skipping Stone provides energy-related consulting and information to utilities, electricity generators, pipelines, wholesale energy merchants, and investment banks.

Commerce Energy, Inc.

Commerce Energy sells electricity and natural gas service to customers under both month-to-month and longer-term service contracts. The electricity and natural gas the Company sells is generally metered and delivered to its customers by the local utilities. The local utilities also provide billing and collection services for many of the Company’s customers on its behalf.

The Company buys electricity and natural gas in the wholesale market in time-specific, bulk or block quantities usually at fixed prices. Independent system operators (ISOs) and regional transmission organizations (RTOs) perform real-time load balancing for each of the electric grids, in which it operates. Similarly, balancing is performed by Commerce Energy in connection with agreements with the local distribution company (LDC) utilities or by the LDCs themselves on behalf of Commerce Energy, for each of the natural gas markets, in which it operates. Commerce Energy is charged or credited by the ISOs and LDCs for balancing the electricity and natural gas purchased and sold to its customers.

Skipping Stone, Inc.

Commerce divested its energy consulting business, Skipping Stone Inc. (Skipping Stone), and closed its offices in Houston and Boston, used primarily by Skipping Stone, during the fiscal year ended July 31, 2008, (fiscal 2008). The Company entered into an agreement with Skipping Stone to sell substantially all of the assets of Skipping Stone. During fiscal 2008, Skipping Stone accounted for less than 1% of the Company’s net revenues.

Business Line
Energy marketer of retail electric power and natural gas supply
Subsidiary

Advisor
HEIN & ASSOCIATES
IPO date
7/2004
US SIC Code
4911
Company Address
Suite 2000
600, Anton Boulevard
City province or state postal code
92626, COSTA MESA, CA
Phone: +1 714 259 2500
Fax: +1 714 259 2501
Country address: UNITED STATES OF AMERICA
Website url: www.commerceenergygroup.com