Commerce Energy
Encyclopedia
Commerce Energy Group, Inc., based in Costa Mesa, California
, was the parent company of a wholly owned independent electricity and natural gas marketing company, Commerce Energy Inc. The company was purchased by Universal Energy Group
on December 11, 2008.
As of July 31, 2008, Commerce had 155,000 customers. Revenue for fiscal year 2008, ending July 31, 2008, was $460 million. The company had 200 employees as of July 31, 2008.
, California
in 1997 as Commonwealth Energy Corporation by Fred Bloom. On April 1, 1998, Commerce began supplying electricity to customers in California.
Commerce's stature grew significantly with the acquisition of ACN Energy on February 9, 2005. This purchase boosted Commerce's customer count by 80,000.
On September 20, 2006, Commerce purchased a portfolio of about 300 commercial and industrial natural gas customers in five states from Houston Energy Services Company. This transaction tripled Commerce's natural gas sales volumes.
Gregory L. Craig was named CEO and Chairman of the Board on February 20, 2008, supplanting Steven S. Boss and Dennis R. Leibel in those positions, respectively.
On June 3, 2008, Commerce announced a staff reduction of 80 people, or 31 percent of its workforce. The company also announced a sale of its energy consulting firm, Skipping Stone Inc., to that company's former president and a closure of offices in Houston, Texas, and Boston
, Massachusetts
.
On October 27, 2008, Commerce announced a sale of its entire Texas business—roughly 58,000 customers—to Ambit Energy
for $14.5 million. On November 12, 2008, Commerce announced its intention to sell its customer books in Ohio, Pennsylvania, New Jersey, Maryland and Michigan to Universal Energy Group
for $16 million. Universal would also own 49% of outstanding Commerce stock, with warrants to increase its stake to 66.67%. The deal would require shareholder approval due to the significant common stock
dilution. On December 11, Commerce instead announced that Universal had purchased 100 percent of Commerce after Commerce underwent a consensual foreclosure by its lenders.
Universal shut down Commerce's remaining operations in Dallas, Texas
on March 27, 2009. A small staff was left in place in Costa Mesa, California until June 2009.
Costa Mesa, California
Costa Mesa is a city in Orange County, California. The population was 109,960 at the 2010 census. Since its incorporation in 1953, the city has grown from a semi-rural farming community of 16,840 to a primarily suburban and "edge" city with an economy based on retail, commerce, and light...
, was the parent company of a wholly owned independent electricity and natural gas marketing company, Commerce Energy Inc. The company was purchased by Universal Energy Group
Universal Energy Group
Universal Energy Group, Ltd., abbreviated as UEG, is a Canadian energy company. It owns two subsidiaries, Universal Energy Corporation and ethanol producer Terra Grain Fuels. The company is publicly traded on the Toronto Stock Exchange under the symbol UEG. On December 11, 2008, UEG announced that...
on December 11, 2008.
As of July 31, 2008, Commerce had 155,000 customers. Revenue for fiscal year 2008, ending July 31, 2008, was $460 million. The company had 200 employees as of July 31, 2008.
History
Commerce was founded in TustinTustin
-Places:United States* Tustin Legacy, Tustin, California, a master-planned community* Tustin Ranch, Tustin, California, a master-planned community* North Tustin, California, unincorporated area north of the City of Tustin* Tustin, Michigan...
, California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
in 1997 as Commonwealth Energy Corporation by Fred Bloom. On April 1, 1998, Commerce began supplying electricity to customers in California.
Commerce's stature grew significantly with the acquisition of ACN Energy on February 9, 2005. This purchase boosted Commerce's customer count by 80,000.
On September 20, 2006, Commerce purchased a portfolio of about 300 commercial and industrial natural gas customers in five states from Houston Energy Services Company. This transaction tripled Commerce's natural gas sales volumes.
Gregory L. Craig was named CEO and Chairman of the Board on February 20, 2008, supplanting Steven S. Boss and Dennis R. Leibel in those positions, respectively.
On June 3, 2008, Commerce announced a staff reduction of 80 people, or 31 percent of its workforce. The company also announced a sale of its energy consulting firm, Skipping Stone Inc., to that company's former president and a closure of offices in Houston, Texas, and Boston
Boston
Boston is the capital of and largest city in Massachusetts, and is one of the oldest cities in the United States. The largest city in New England, Boston is regarded as the unofficial "Capital of New England" for its economic and cultural impact on the entire New England region. The city proper had...
, Massachusetts
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
.
On October 27, 2008, Commerce announced a sale of its entire Texas business—roughly 58,000 customers—to Ambit Energy
Ambit Energy
Ambit Energy is an American retail electricity provider that serves residential and commercial customers in markets where energy has been deregulated by the state. Those states include: Texas, New York, Maryland, Illinois and Pennsylvania...
for $14.5 million. On November 12, 2008, Commerce announced its intention to sell its customer books in Ohio, Pennsylvania, New Jersey, Maryland and Michigan to Universal Energy Group
Universal Energy Group
Universal Energy Group, Ltd., abbreviated as UEG, is a Canadian energy company. It owns two subsidiaries, Universal Energy Corporation and ethanol producer Terra Grain Fuels. The company is publicly traded on the Toronto Stock Exchange under the symbol UEG. On December 11, 2008, UEG announced that...
for $16 million. Universal would also own 49% of outstanding Commerce stock, with warrants to increase its stake to 66.67%. The deal would require shareholder approval due to the significant common stock
Common stock
Common stock is a form of corporate equity ownership, a type of security. It is called "common" to distinguish it from preferred stock. In the event of bankruptcy, common stock investors receive their funds after preferred stock holders, bondholders, creditors, etc...
dilution. On December 11, Commerce instead announced that Universal had purchased 100 percent of Commerce after Commerce underwent a consensual foreclosure by its lenders.
Universal shut down Commerce's remaining operations in Dallas, Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
on March 27, 2009. A small staff was left in place in Costa Mesa, California until June 2009.