EGR Commerce Energy Grp.,

COSTA MESA, Calif., March 30 /PRNewswire-FirstCall/ -- Commerce Energy Group, Inc. (AMEX:EGR), a leading U.S. electricity and natural gas marketing company, filed a Demand for Arbitration on March 23, 2006, with the American Arbitration Association in New York, New York relating to the Sales Agency Agreement between American Communications Network ("ACN") and its wholly owned subsidiary, Commerce Energy, Inc., ("Commerce"). ACN terminated the Sales Agency Agreement effective February 9, 2006, and had previously delivered a Demand for Arbitration to Commerce asserting various allegations and claims for damages. The Demand for Arbitration filed by the Company asserts claims for declaratory relief, material breach of contract and breach of the implied covenant of good faith and fair dealing and seeks compensatory damages in an amount to be determined at the arbitration hearing. "We continue to believe that the allegations made by ACN against us are without merit and we will continue to aggressively defend ourselves. We also believe that we have been damaged and the filing of our Demand for Arbitration is the first step in asserting that position. We look forward to resolving this entire dispute as quickly and efficiently as possible on behalf of our stockholders," said Steven S. Boss, the Company's Chief Executive Officer. About Commerce Energy Group, Inc. Commerce Energy Group, Inc. is a leading independent U.S. electricity and natural gas marketing company, operating through its wholly owned subsidiaries, Commerce Energy, Inc. and Skipping Stone, Inc. Commerce Energy, Inc. is a FERC-licensed unregulated retail marketer of natural gas and electricity to homeowners, commercial and industrial consumers and institutional customers operating in nine states. Skipping Stone is an energy consulting firm serving utilities, pipelines, merchant trading and technology companies. For more information, visit http://www.commerceenergygroup.com/. Forward Looking Statements Except for historical information contained in this release, statements in this release, including those of Mr. Boss, may constitute forward-looking statements regarding the company's assumptions, projections, expectations, targets, intentions or beliefs about future events. Words or phrases such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "targets," "will likely result," "will continue," "may," "could" or similar expressions identify forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed. Commerce Energy cautions that while such statements are made in good faith and the company believes such statements are based upon reasonable assumptions, including without limitation, management's examination of historical operating trends, data contained in records, and other data available from third parties, the company cannot assure that it projections will be achieved. In addition to other factors and matters discussed from time to time in our filings with the U.S. Securities and Exchange Commission, or the SEC, some important factors that could cause actual results or outcomes for Commerce Energy Group, Inc. or its subsidiaries to differ materially from those discussed in forward-looking statements include: the uncertainties of litigation, arbitration or other dispute resolution procedures, the volatility of the energy market, competition, operating hazards, uninsured risks, failure of performance by suppliers and transmitters, changes in general economic conditions, decisions by our energy suppliers requiring us to post additional collateral for our energy purchases, seasonal weather or force majeure events that adversely effect electricity or natural gas supply or infrastructure, increased or unexpected competition, adverse state or federal legislation or regulation or adverse determinations by regulators, including failure to obtain regulatory approvals. Any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by law, Commerce Energy undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for management to predict all such factors. DATASOURCE: Commerce Energy Group, Inc. CONTACT: Investor Relations of Commerce Energy Group, Inc., 1-800-962-4655, or ; Cecilia Wilkinson, , or Wade Huckabee, , both of PondelWilkinson Inc., +1-310-279-5980, for Commerce Energy Group Web site: http://www.commerceenergygroup.com/

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