EGR Commerce Energy Grp.,

COSTA MESA, Calif., June 27 /PRNewswire-FirstCall/ -- Commerce Energy Group, Inc. (AMEX:EGR), a leading independent U.S. electricity and natural gas marketing company, announced it has signed a natural gas agreement with the Los Angeles Unified School District (LAUSD). The natural gas supply contract awarded to Commerce Energy will serve 217 schools in Los Angeles and Southern California beginning in July 2006. "We are very pleased that LAUSD has selected Commerce Energy to provide its natural gas service, and we look forward to helping the school district mitigate and manage the significant price volatility that energy markets have recently experienced," said Steven S. Boss, Commerce Energy chief executive officer. "For nearly a decade, we have successfully brought energy choices, such as this one made by LAUSD, to California customers and customers in eight other states." About LAUSD The Los Angeles Unified School district is the nation's second largest school district, with a K-12 student enrollment of 727,000 students. Geographically, it encompasses 704 square miles, an area that includes the City of Los Angeles and all or part of 26 other cities, as well as some unincorporated areas of Los Angeles County. 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 licensed by the Federal Energy Regulatory Commission and by the state regulatory agencies in 10 states as an unregulated retail marketer of natural gas and electricity to homeowners, commercial and industrial consumers and institutional customers. Commerce Energy currently operates in nine states and serves over 120,000 customers. Skipping Stone is an energy consulting firm serving utilities, pipelines, merchant trading and technology companies. For almost a decade customers have relied on Commerce Energy to deliver competitive pricing, innovative product offerings and personalized customer care in addition to quality gas and electric services. Headquartered in the Plaza Tower in Orange County, California, the company also has offices in Houston, Detroit and Boston. For more information, visit http://www.commerceenergy.com/. Media Contact: Linda Ames Corporate Communications Commerce Energy 714-259-2539 - office 949-349-6665 - cell DATASOURCE: Commerce Energy Group, Inc. CONTACT: Linda Ames, Corporate Communications of Commerce Energy Group, Inc., +1-714-259-2539, or cell +1-949-349-6665, Web site: http://www.commerceenergy.com/

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