Commerce Energy (CMNR) 8-K/A Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review

Exhibit 7.1

[Ernst & Young LLP Letterhead]

July 26, 2005

Securities and Exchange Commission
100 F Street N.E.
Washington, D.C. 20549

We have been furnished with a copy of the response to Item 4.02 of Form 8-K for the event that occurred on June 8, 2005, filed by our client, Commerce Energy Group, Inc. We agree with the statements made in response to that Item insofar as they related to our Firm.

Very truly yours,

/s/ Ernst & Young LLP

Ernst & Young LLP