EGR Commerce Energy Grp.,

Realigns Operational Functions Currently in Detroit COSTA MESA, Calif., May 15 /PRNewswire-FirstCall/ -- Commerce Energy Group, Inc. (AMEX:EGR), a leading U.S. energy service provider, today announced plans to open a new sales and operations office in Dallas in October 2006. "Combining with the resources of our current sales office in Houston, this office in Dallas reflects our commitment to increase our sales, marketing and operational focus in a market that is strategically important to achieving our significant growth objectives," stated Chief Executive Officer Steven S. Boss. Given the strong base of electricity and natural gas industry talent that is located in Texas, Commerce plans to use this opportunity to realign and strengthen its sales and operational support capabilities for its customers in Texas, as well as its customers in the other eight states in which it operates. As part of the realignment, Commerce will transition to the new Dallas office operational functions currently performed in Detroit. This realignment and transition of employees and operational functions is expected to be completed by October 2006 and result in additional expenses for one-time severance, retention and relocation costs of approximately $500,000. The financial impact of these costs will be reflected partly in the fourth quarter of fiscal 2006 and the remainder in the first quarter of fiscal 2007. "We do not expect this realignment to significantly impact the total number of employees supporting our operational capabilities once it is completed. We will continue to focus on the strategic positioning and optimal efficiency of our offices and operations so that we can offer our customers the best service to be found anywhere," said Senior Vice President of Sales and Marketing Tom L. Ulry. 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. 600 Anton Boulevard, Suite 2000 Costa Mesa, CA 92626 Public Relations Linda Ames, Corporate Communications (800) 962-4655 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: Linda Ames, Corporate Communications of Commerce Energy Group, Inc., +1-800-962-4655, Web site: http://www.commerceenergygroup.com/

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