ex99-2.htm

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.

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

Opening Remarks

Steven Boss, CEO

2007 highlights

•
            
 Financial Highlights

Ш
            
Net Income increased to $5.5 million, $0.18 EPS

Ш
            
Gross Profit nearly doubled to $57.2 million

Ш
            
APX & 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

Ш
            
196,000 customers as of July 31, 2007

Ш
            
43% increase over July 31, 2006

•
            
Estimated FY 2008 Earnings and Year-End Customers

Ш
            
Earnings estimate $6.1 to $6.6 million

Ш
            
Equals $0.20 - $0.22 EPS

Ш
            
8% - 10% customer growth

quarter & YTD

•
            
YTD adds above expectations

•
            
Quarterly churn rate of 9%

       Q4 ‘07                                    YTD ‘07

customer adds & drops

•
            
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

7/31/07

7/31/08

Customers:  196,000                                                              215,000

EPS $0.20 - $0.22

$0.12

$0.20 - $0.22

year-end customer count estimate

APX/ACN

$0.06*

EPS $0.18

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

Actual

Estimate

2008 annual earnings estimate

Financial Review

Bob Hipps, Interim CFO

$1.1

$0.7

Net Income ―       $0.4

Q4 ($ in millions)

•
            
APX and ACN Impact — $1.3

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

•
            
Operating expenses up 61%

net income

Net Revenue ―     $55.6      106%

$52.3

$107.9

Q4 ($ in millions)

$46.2

$6.1

$80.7

$25.7

    Electricity

MWh

       243K    57%

Gas

      DTH      
2,561K   390%

$1.5

net revenue

Gas

     $0.4    23%

Gross Profit ―       $6.3        73%

Q4 ($ in millions)

$8.7

$15.0

$7.1

$ 1.2

$12.3

     Electricity

     $5.2     74%

$1.6

$1.5

gross profit

Sales & Marketing ―

       $1.4        76%

$3.3

$1.9

Q4 ($ in millions)

$10.3

$6.6

G & A ―

    $3.7     56%

operating expenses

$5.5

FY ‘07 ($ in millions)

YTD Net Income (loss) ―     $7.7

$(2.2)

net income (loss)

Net Revenue ―     $124.5      50%

FY ‘07 ($ in millions)

$247.1

$371.6

$185.4

$  61.7

$239.1

$126.0

    Electricity

MWh

      290K     16%

Gas

DTH

   9,673K   188%

   Gas      Electricity

APX

$6.5

net revenue

Gross Profit ―       $28.4        99%

FY ‘07 ($ in millions)

$28.8

$57.2

$ 5.9

$22.9

$40.1

$10.6

    Electricity ―

    $17.2     75%

   Gas ―

    $4.7     80%

$ 6.5

gross profit

YTD

Sales & Marketing ―

       $5.4        103%

FY ‘07 ($ in millions)

$10.6

$5.2

YTD

   G & A ―

    $10.4     38%

$37.3

$26.9

operating expenses

($ 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

Closing
Comments

•
            
APX and ACN Settlements

•
            
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

	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	$	—