Commerce Energy Expects to Receive Settlement Payment
March 07 2007 - 5:00PM
Business Wire
Commerce Energy Group, Inc. (AMEX:EGR), a leading U.S. electricity
and natural gas marketing company, said today that it expects to
receive up to $6.5 million from APX, Inc. as part of a settlement
agreement approved by the Federal Energy Regulatory Commission
(FERC). During the years 2000 to 2001, Commerce Energy bought, sold
and scheduled power in the California wholesale energy markets
through the markets and services of APX. Commerce Energy became
involved in proceedings at FERC related to sales and schedules in
the California Power Exchange Corporation (PX) and the California
Independent System Operator Corporation (CAISO) markets. A part of
those proceedings are related to APX�s involvement in those
markets. On January 5, 2007, the settling parties, including
Commerce Energy, filed a proposed settlement agreement with FERC in
the proceedings, to, among other things, establish a mechanism for
allocating refunds owed to APX and to resolve certain other matters
and claims related to APX�s participation in the PX and CAISO
centralized spot markets for wholesale electricity from May 1, 2000
through June 20, 2001. The effectiveness of the settlement
agreement was subject to receipt of FERC�s approval, which was
received on March 1, 2007. Under the settlement agreement, several
parties, including Commerce Energy, will be entitled to payments
from APX. The actual amount and timing of disbursements are subject
to, among other things, verification of settlement calculations.
Commerce Energy expects to receive an initial portion of the
settlement amount as early as March 2007, although payments are not
guaranteed. �We are pleased to have been able to work with the
other settling parties to reach an amicable settlement in this
complex matter,� said Steven S. Boss, Chief Executive Officer of
Commerce Energy. The settlement agreement is subject to rehearing
review at FERC, requests for which must be made no later than March
30, 2007, and possible court review. Under certain circumstances,
Commerce Energy could be required to return or redistribute some or
all of the funds received under the settlement agreement. 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 is publicly traded on
the American Stock Exchange (AMEX) under the symbol: EGR. Commerce
Energy, Inc. 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.
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 nearly a decade, customers have relied on
Commerce to deliver competitive pricing, innovative product
offerings and personalized customer care in addition to quality gas
and electric services. For more information, visit
www.CommerceEnergy.com. Forward Looking Statements Except for
historical information contained in this release, 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 new release, whether
express or implied, 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: challenges
to the settlement agreement or the amounts payable thereunder,
higher than expected attrition of, and/or unforeseen operating
difficulties relating to, customer accounts, 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, 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.
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