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The Evolving Roles and Responsibilities of Gas Utilities In Today’s Markets: Giving Customers More Choices. November 13, 2007. Company overview. Commerce Energy Group, Inc. (Amex: EGR) is a leading independent U.S. electricity and natural gas marketing company.
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The Evolving Roles and Responsibilities of Gas Utilities In Today’s Markets: Giving Customers More Choices November 13, 2007
Company overview Commerce Energy Group, Inc. (Amex: EGR) is a leading independent U.S. electricity and natural gas marketing company. We serve residential, small business, commercial and industrial customers located in energy deregulated states. Commerce Energy, Inc. is licensed by the Federal Energy Regulatory Commission and by state regulatory agencies. Headquartered in Orange County, California, we also have offices in Houston and Dallas, Texas and Boston, Massachusetts. 2
Company facts Established:1997 Amex (EGR):July 2004 Fiscal Year:July 31st Annual Revenue:$372 million (as of 7/31/07) Employees:263 Customers:196,000 (as of 7/31/07) States Served:10 3
Strong customer growth Current Footprint Gas & Electricity Electricity Gas License/Certificate
Company highlights • Strong Market Positions • Large footprint – serving electricity and gas partners in 10 states • Diversified customer mix – residential, small business and C&I • Strategic wholesale partners • Unique Presence in California • Potential re-opening of CA market offers significant growth opportunities • Established market presence with over 50,000 customers • Consistent customer growth • FY 2007 customer growth of approximately 43% • Currently 196,000 customers 5
Sales & marketing - customers Value to Our Customers • We’re in the business of helping customers control their energy cost • Reseller of natural gas and electric power • We own no production or generation • Customer segmentation focus • Multi-location commercial & industrial businesses • Hospitality chains • School districts • Retail outlets • Mass markets • Small businesses • Residential customers
Choices for Our Customers • Energy is an essential service • Customers are already buying and using energy • High energy cost is on the minds of customers • Customers are looking for choices in controlling their energy costs • We provide rate options not available from the utility • Fixed-rate plans are very popular during periods of high price volatility • 85% + of our sales are fixed-rate plans 7
Sustainable foundation Program Overview
Sustainable foundation Program Overview
Sustainable foundation Program Overview
Sustainable foundation Sure Choice Traditional Energy Innovation • Allows customer to choose service plans designed to fit their needs • Smooth out energy price spikes and lock in a competitive rate with a 12- or 24-month Sure Choice fixed- rate service plan Education • Learn how to lower energy cost with online tips and products at the Energy Store Commitment • We promise to educate consumers on how to control energy costs 11