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November 13, 2007 The Evolving Roles and Responsibilities of Gas Utilities In Today’s Markets: Giving Customers More Choices
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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 overview
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Established: 1997 Amex (EGR): July 2004 Fiscal Year: July 31 st Annual Revenue: $372 million (as of 7/31/07) Employees: 263 Customers: 196,000 (as of 7/31/07) States Served:10 3 Company facts
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4 Gas & Electricity Electricity Gas License/Certificate Strong customer growth Current Footprint
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5 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 Company highlights
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6 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
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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
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8 Sustainable foundation Program Overview
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9 Sustainable foundation Program Overview
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10 Sustainable foundation Program Overview
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11 Sustainable foundation Sure Choice Traditional Energy 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 Innovation 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
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