EGR Commerce Energy Grp.,

- Executes Supply Agreement With Pacific Summit Energy - COSTA MESA, Calif., Sept. 25 /PRNewswire-FirstCall/ -- Commerce Energy Group, Inc. (AMEX:EGR), an independent U.S. electricity and natural gas marketing company, announced today it has completed the acquisition of approximately 300 commercial and industrial natural gas customer accounts from Houston Energy Services Company (HESCO) at a purchase price of approximately $4 million. The acquired customers have accounts in five states -- California, Florida, Nevada, Kentucky and Texas -- and are expected to consume more than 12 billion cubic feet of natural gas annually. Concurrently, Commerce Energy executed an agreement establishing a multi-year strategic supply relationship with Pacific Summit Energy, LLC (PSE) to be the exclusive supplier of natural gas for the customers acquired. PSE is an existing natural gas supplier of Commerce Energy and a subsidiary of Sumitomo Corporation group, a leading, fully integrated trading and investing enterprise and a major distributor of energy commodities. Commerce Energy also entered into an agreement with Advanta Energy Corp. to provide marketing services to certain of the customers acquired from HESCO and additional customer acquisition services. "The transaction is an excellent fit with key elements of our plan to significantly grow the size of our customer portfolio, both organically and through acquisitions, and to deliver on our energy supply needs through agreements with strategic wholesale supply partners. In addition to significantly expanding our commercial customer base, we expect this transaction to triple the size of our natural gas sales volumes, increase our annual natural gas revenues nearly $100 million and be immediately accretive to our fiscal 2007 operating results," said Steven S. Boss, Commerce Energy'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 is publicly traded on the American Stock Exchange (AMEX) under the symbol: EGR. The company is licensed by the Federal Energy Regulatory Commission and by state regulatory agencies as an unregulated retail marketer of natural gas and electricity to homeowners, commercial and industrial consumers and institutional customers. Commerce Energy currently operates in 12 states and serves more than 140,000 customers. Skipping Stone is an energy consulting firm serving utilities, pipelines, merchant trading and technology companies. For nearly 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 Orange County, California, the company also has an office in Dallas, Texas, as well as several area offices located around the U.S. For more information, visit http://www.commerceenergygroup.com/. Forward Looking Statements and Other Risks Except for historical information, statements in this release 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 Group, Inc. cautions that while such statements in this news release, whether expressed or implied, including, but not limited to, future natural gas consumption and related sales volumes from the acquired customers, expected annual revenues from the acquired accounts, and whether the transaction is expected to be accretive, 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 the results contemplated by such forward-looking statements will be realized or 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: higher than expected attrition of the acquired accounts, unforeseen operating difficulties related to the acquired accounts, the volatility of the energy market, operating hazards, uninsured risks, failure of performance by suppliers and transmitters, changes in general economic conditions, weather or force majeure events that adversely effect electricity or natural gas supply or infrastructure, decisions by our energy suppliers requiring us to post additional collateral for our energy purchases, 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 Group, Inc. 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. Contacts: Commerce Energy Group, Inc. PondelWilkinson Inc. Linda Ames Robert Jaffe Corporate Communications 310-279-5980 714-259-2539 DATASOURCE: Commerce Energy Group, Inc. CONTACT: Linda Ames, Corporate Communications of Commerce Energy Group, Inc., +1-714-259-2539, ; or Robert Jaffe of PondelWilkinson Inc., +1-310-279-5980, , for Commerce Energy Group, Inc. Web site: http://www.commerceenergygroup.com/

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