Commonwealth Energy Completes Reorganization as Commerce Energy Group; Common Stock Expected to Commence Trading on the AMEX on

Commonwealth Energy Completes Reorganization as Commerce Energy
Group; Common Stock Expected to Commence Trading on the AMEX on July 8, 2004



COSTA MESA, Calif., July 8  /PRNewswire-FirstCall/ -- Commerce Energy Group,
Inc. (AMEX:EGR) and Commonwealth Energy Corporation, a leading U.S. electricity
service provider, jointly announced that the reorganization approved by
Commonwealth's shareholders at the Special Meeting of Shareholders held on May
20, 2004 was completed on July 6, 2004.  As a result, Commonwealth Energy
Corporation has become a wholly-owned subsidiary of Commerce Energy Group,
Inc., which has become a public holding company with its shares of common stock
to be listed on the American Stock Exchange.  Trading in the common shares of
Commerce Energy Group, Inc. on the AMEX is expected to commence on Thursday
morning, July 8, 2004, under the ticker symbol "EGR".

In the completed reorganization, existing shares of common stock of
Commonwealth Energy Corporation were automatically converted on a one-for-one
basis into shares of Commerce Energy.  Prior to the effective time of the
reorganization, all shares of preferred stock in Commonwealth Energy
Corporation were converted into shares of common stock of Commonwealth Energy.

"I thank the Commonwealth shareholders for their overwhelming support in
adopting our reorganization plan.  We are gratified to complete this portion of
our strategic plan to prepare the company for future growth, to simplify the
capital structure and to provide liquidity for our shareholders by listing the
stock of the new holding company on the AMEX," said Ian Carter, Commerce
Energy's and Commonwealth Energy's Chairman and Chief Executive Officer.

Prior to the shareholders approving the reorganization, Mr. Joseph Saline and
Mr. Joseph Ogundiji filed a lawsuit attempting to enjoin the reorganization. 
Their initial request to enjoin the shareholder vote was denied by the court on
May 4, 2004.  Subsequent to the effective date of the reorganization, a second
request for a temporary restraining order enjoining the reorganization was
denied by the court on July 6, 2004.  A further hearing on this matter is
scheduled for August 13, 2004.

About Commerce Energy Group, Inc. and Commonwealth Energy Corporation.

Commerce Energy Group, Inc. is a provider of energy products and services to
homeowners, commercial and industrial consumers, utilities, governments and
energy asset owners.  Operating since 1998 as Commonwealth Energy Corporation,
Commerce Energy Group now operates through its subsidiaries including
Commonwealth Energy Corporation, which holds FERC and state licenses for retail
and wholesale energy commodities and is a retail electricity provider to homes
and businesses in California, Michigan, Pennsylvania and New Jersey under the
brand name "electricAmerica"; Skipping Stone, an energy consulting firm; and
utiliHost, an outsourcing services and technology provider.  For more
information visit http://www.commerceenergy.com/ .

   Contact:
   Investor Relations
   Richard L. Boughrum
   Senior Vice President, Chief Financial Officer,
   Commerce Energy Group, Inc. and Commonwealth Energy Corp.
   

   Public Relations
   Roy Reeves
   Vice President of Marketing
   Commonwealth Energy Corp.
   

   Commerce Energy Group, Inc. / Commonwealth Energy Corporation
   600 Anton Boulevard, Suite 2000
   Costa Mesa, CA 92626
   Tel: [phone]



Forward-Looking Statements: Certain statements contained within this press
release including, without limitation, statements containing the words
"believe," "anticipate," "expect," "estimate," "await," "continue," "intend,"
"plan" and similar expressions are forward-looking statements that involve
risks and uncertainties.  These forward-looking statements are not guarantees
of future performance and involve certain risks, uncertainties and assumptions
that are difficult to predict.  Actual outcomes and results may differ
materially from what is expressed in, or implied by, such forward-looking
statements.  The risks and uncertainties that could cause actual results to
differ materially from those expressed in, or implied by, the forward-looking
statements include, but are not limited to, the volatility of the energy
market, competition, operating hazards, uninsured risks, changes in energy-
related state legislation, failure of performance by suppliers and
transmitters, uncertainties relating to the pending litigation regarding the
completed reorganization, changes in general economic conditions, increased or
unexpected competition, costs related to the proposed reorganization, and other
matters disclosed in Commerce Energy's and Commonwealth Energy's filings with
the Securities and Exchange Commission.  Further, Commerce Energy or
Commonwealth Energy undertakes no obligation to release publicly any revisions
to these forward-looking statements that may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events. 

DATASOURCE: Commerce Energy Group, Inc.; Commonwealth Energy Corporation



CONTACT:  investor relations, Richard L. Boughrum, Senior Vice President,

Chief Financial Officer of Commerce Energy Group, Inc. and Commonwealth Energy

Corporation, [phone], or  ; or public relations,

Roy Reeves, Vice President of Marketing of Commonwealth Energy Corporation,

[phone], or  



Web site:  http://www.commerceenergy.com/ 

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