Exhibit 99.1
FOR IMMEDIATE RELEASE
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Court Upholds Commonwealth Energy's Reorganization
as Commerce Energy Group
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COSTA MESA, CA. - August 20, 2004 - Commerce Energy Group, Inc. (AMEX: EGR) and
Commonwealth Energy Corporation, a leading U.S. electricity service provider,
jointly announced today that the Orange County Superior Court of the State of
California has denied a motion seeking a preliminary injunction to unwind the
companies' recently-completed reorganization transaction. Under the
reorganization, which was completed on July 6, 2004, Commonwealth Energy
Corporation became a wholly-owned subsidiary of Commerce Energy Group, Inc. 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 common stock. 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. As a result
of the reorganization, Commerce Energy became a public holding company with its
shares of common stock listed on the American Stock Exchange.
The motion that the Court denied was made by former Commonwealth director Mr.
Joseph Saline and by Mr. Joseph Ogundiji, who filed a lawsuit prior to
Commonwealth's shareholders approving the reorganization 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. Mr. Saline, who is not a
member of Commerce Energy's board of directors, is no longer a member of
Commonwealth's board of directors.
About Commerce Energy Group, Inc.
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 www.CommerceEnergy.com.
For more information, contact:
Investor Relations
David Barnes
Vice President Finance &
Investor Relations
dbarnes@electric.com
714-259-2500
Commerce Energy Group, Inc. / Commonwealth Energy Corporation
600 Anton Boulevard, Suite 2000
Costa Mesa, CA 92626
Tel: 1-800-ELECTRIC(R)