EGR Commerce Energy Grp.,

COSTA MESA, Calif., May 10 /PRNewswire-FirstCall/ -- Commerce Energy Group, Inc. (AMEX:EGR), (the "Company"), a leading U.S. electricity and natural gas marketing company, today announced that on May 4, 2006, American Communications Network, Inc. ("ACN") filed with the American Arbitration Association ("AAA") in New York its demand for arbitration of its dispute with Commerce Energy, Inc. ("Commerce"), a wholly-owned subsidiary of the Company. In its filed demand, ACN alleges claims against Commerce related to the Sales Agency Agreement terminated by ACN effective February 9, 2006, for breach of contract and breach of implied duty of good faith and fair dealing, seeking damages and restitution in amounts to be determined at the hearing. As previously reported on March 2, 2006, ACN delivered to Commerce an arbitration demand claim, alleging that Commerce was liable for significant actual, consequential and punitive damages and restitution on a variety of causes of action including anticipatory breach of contract, unjust enrichment, tortuous interference with prospective economic advantage and prima facie tort with respect to alleged future commissions. This claim was delivered by mail to Commerce but was not filed with the AAA. On March 23, 2006, Commerce filed a demand for arbitration with the AAA, alleging breach of contract by ACN and seeking unspecified damages. As noted above, in its response claim filed with AAA on May 4, 2006, ACN has not included claims for tortuous interference with prospective economic advantage and prima facie tort and has not included specific damage amounts. "We continue to believe that ACN's claim is completely without merit, and we are pleased that this dispute is now properly before the AAA in New York where we will vigorously pursue resolution before the arbitration panel," said Steven S. Boss, the Company's Chief Executive Officer. About Commerce Energy Group, Inc. Commerce Energy Group, Inc. (AMEX:EGR) 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/. Contacts: Commerce Energy Group, Inc. Investor Relations (800) 962-4655 PondelWilkinson Inc. Cecilia Wilkinson/Wade Huckabee 310-279-5980 / 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 its 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, 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, Inc. Web site: http://www.commerceenergygroup.com/

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