Commerce Energy (CMNR) 8-K Commerce Energy Announces Fiscal 2007 Full-Year and Fourth Quarter Results

Fourth Quarter 2007
Earnings Conference

October 24, 2007

Exhibit 99.2

This presentation contains forward-looking statements within the
meaning of the federal securities laws. Forward-looking statements are
based upon management’s belief and assumptions made by, and
information currently available to, management. Our actual

This presentation contains forward-looking statements within the
meaning of the federal securities laws. Forward-looking statements are
based upon management’s belief and assumptions made by, and
information currently available to, management. Our actual

results could differ materially from the results
anticipated in these forward-looking statements
as a result of numerous factors including factors
identified from time to time in our filings with the
Securities and Exchange Commission. Any
forward-looking statement speaks only as of the
date on which such statement is made, and,
except as required by law, we undertake 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.

results could differ materially from the results
anticipated in these forward-looking statements
as a result of numerous factors including factors
identified from time to time in our filings with the
Securities and Exchange Commission. Any
forward-looking statement speaks only as of the
date on which such statement is made, and,
except as required by law, we undertake 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.

2

Forward Looking

statements

Copyright© 2007 Commerce Energy, Inc. All Rights Reserved

The Commerce Energy Logo and Clear Choice Clean Energy Logo  is a trademark of Commerce Energy Inc.

The Green-e logo is a registered trademark of Center for Resource Solutions

2

Opening Remarks

Steven Boss, CEO

3

4

2007 highlights

• Financial Highlights

ШNet Income increased to $5.5 million, $0.18 EPS

ШGross Profit nearly doubled to $57.2 million

ШAPX & ACN, net $1.9 million

•$6.52 million APX settlement

•$3.90 million ACN legal settlement

•$0.72 million ACN legal expenses

•Continued Strong Customer Growth

Ш196,000 customers as of July 31, 2007

Ш43% increase over July 31, 2006

•Estimated FY 2008 Earnings and Year-End Customers

ШEarnings estimate $6.1 to $6.6 million

ШEquals $0.20 - $0.22 EPS

Ш8% - 10% customer growth

4

quarter & YTD

•YTD adds above expectations

•Quarterly churn rate of 9%

       Q4 ‘07                                    YTD ‘07

5

customer adds & drops

5

6

•43% increase in customer count over 7/31/06

•120,000 gross customer adds in FY 2007

 FY 2006 

 FY 2007  

 quarter-to-quarter comparison

customer growth

6

7/31/07

7/31/08

Customers:196,000  215,000

EPS $0.20 - $0.22

$0.12

$0.20 - $0.22

7

2007

year-end customer count estimate

APX/ACN

$0.06*

EPS $0.18

* Includes $721K of ACN expenses related to ACN arbitration

2008

Actual

Estimate

2008 annual earnings estimate

7

Financial Review

Bob Hipps, Interim CFO

8

$1.1

$0.7

Net Income ―       $0.4

Q4 ($ in millions)

9

•APX and ACN Impact — $1.3

•Net Revenue up 106%; Gross Profit up 73%

•Operating expenses up 61%

net income

9

Net Revenue ―     $55.6106%

$52.3

$107.9

Q4 ($ in millions)

$46.2

$6.1

$80.7

$25.7

10

    Electricity 

        MWh

243K    57%

      Gas 

      DTH 
2,561K   390%

$1.5

net revenue

10

        Gas 

$0.4    23%

Gross Profit ―       $6.373%

Q4 ($ in millions)

$8.7

$15.0

$7.1

$ 1.2

$12.3

     Electricity

$5.2     74%

$1.6

11

$1.5

gross profit

11

Sales & Marketing ―

$1.476%

$3.3

$1.9

Q4 ($ in millions)

$10.3

$6.6

G & A ― 

$3.7     56%

12

operating expenses

12

$5.5

FY ‘07 ($ in millions)

YTD Net Income (loss) ―     $7.7

$(2.2)

11

13

net income (loss)

13

Net Revenue ―     $124.550%

FY ‘07 ($ in millions)

$247.1

$371.6

$185.4

$  61.7

$239.1

$126.0

14

    Electricity 

       MWh

290K     16%

Gas 

 DTH

9,673K   188%

   Gas      Electricity 

             APX 

$6.5

net revenue

14

Gross Profit ―       $28.499%

FY ‘07 ($ in millions)

$28.8

$57.2

$ 5.9

$22.9

$40.1

$10.6

15

    Electricity ―  

$17.2     75%

   Gas ―  

$4.7     80%

$ 6.5

gross profit

15

*

16

YTD

Sales & Marketing ―

$5.4103%

FY ‘07 ($ in millions)

$10.6

$5.2

YTD

   G & A ― 

$10.4     38%

$37.3

$26.9

operating expenses

16

($ in thousands)

cash & liquidity

	07/31/07		07/31/06
Cash and cash equivalents.	$	6,559	$	22,941
Account receivables. . . . . . .	$	65,231	$	30,650
Working capital . . . . . . . . . .	$	38,900	$	32,253
Current ratio*  . . . . . . . . . . .	1.8:1.0		2.0:1.0
Restricted cash . . . . . . . . . .	$	10,457	$	17,117
Short-term borrowings  . . . . .	$	—	$	—
Primary cash flow uses:	12 Mos. Ended  Jul ’07		12 Mos. Ended  Jul ’06
Property and equipment . . .	$	4,532	$	4,714
HESCO purchase . . . . . . . .	$	4,453	$	—

 

*  Current assets to current liabilities

 

15

17

17

Closing
Comments

18

•APX and ACN Settlements

19

•196,000 Year-end Customers

•Gross profit doubled to $57.2 million
from $28.8 million last year

2007 highlights

•Net income increased to $5.5 million from a
net loss of $2.2 million in FY 2006

19

20