content: <html>
  
  <head>
  
  
  
  
  
  </head>
  
  <body lang="EN-US">
  
  <div style="font-family:Times New Roman;">
  
  <div style="border:none;border-top:double windowtext 6.0pt;padding:0in 0in 0in 0in;">
  
  <p style="border:none;margin:0in 0in .0001pt;padding:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  </div>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">UNITED STATES</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">SECURITIES AND EXCHANGE COMMISSION</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Washington,
  D.C. 20549</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div align="center" style="margin:0in 0in .0001pt;text-align:center;"><hr size="1" width="25%" noshade color="black" align="center"></div>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">FORM&nbsp;8-K</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">CURRENT REPORT</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">Pursuant to Section&nbsp;13 or 15(d)&nbsp;of
  the Securities Exchange Act of 1934</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date of Report
  (Date of earliest event reported): <b>May&nbsp;28, 2008</b></font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">COMMERCE ENERGY GROUP, INC.</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact name of
  registrant as specified in its charter)</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  
  <div align="center">
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Delaware</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">001-32239</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">20-0501090</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State or other
    jurisdiction of</font></p>
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">incorporation)</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission File
    Number)</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(IRS Employer</font></p>
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Identification
    No.)</font></p>
    </td>
   </tr>
   <tr>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="66%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:66.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">600
    Anton Blvd., Suite&nbsp;2000</font></b><font size="2" style="font-size:10.0pt;"><br>
    <b>Costa Mesa, California</b></font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="bottom" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">92626</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="66%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:66.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of
    principal executive offices)</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Zip Code)</font></p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Registrant&#146;s telephone number, including area code: <b>(714) 259-2500</b></font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Not Applicable</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Former name or
  former address, if changed since last report)</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Check the
  appropriate box below if the Form&nbsp;8-K filing is intended to simultaneously
  satisfy the filing obligation of the registrant under any of the following
  provisions:</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Wingdings" style="font-size:10.0pt;font-weight:bold;">o</font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;"> Written communications pursuant
  to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Wingdings" style="font-size:10.0pt;font-weight:bold;">o</font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;"> Soliciting material pursuant to Rule&nbsp;14a-12
  under the Exchange Act (17 CFR 240.14a-12)</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Wingdings" style="font-size:10.0pt;font-weight:bold;">o</font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;"> Pre-commencement communications
  pursuant to Rule&nbsp;14d-2(b)&nbsp;under the Exchange Act (17 CFR 240.14d-2
  (b))</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Wingdings" style="font-size:10.0pt;font-weight:bold;">o</font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;"> Pre-commencement communications
  pursuant to Rule&nbsp;13e-4(c)&nbsp;under the Exchange Act (17 CFR 240.13e-4(c))</font></b></p>
  
  <div style="border:none;border-bottom:double windowtext 6.0pt;padding:0in 0in 0in 0in;">
  
  <p style="border:none;margin:0in 0in .0001pt;padding:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  </div>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='',FILE='C:\JMS\105588\08-15833-1\task2971907\15833-1-ba.htm',USER='105588',CD='Jun  4 00:29 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 2.02&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Results of Operations and Financial Condition.</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The information being furnished in this Item 2.02 and
  in Exhibit&nbsp;99.1 relating to the asset and goodwill impairment charge
  relating to Skipping Stone Inc. (&#147;Skipping Stone&#148;), the wholly-owned subsidiary
  of Commerce Energy Group, Inc, (the &#147;Company&#148;) shall not be deemed &#147;filed&#148; for
  purposes of Section&nbsp;18 of the Securities Exchange Act of 1934, as amended
  (the &#147;Exchange Act&#148;), or incorporated by referenced in any filing under the
  Securities Act of 1933, as amended, or the Exchange Act, except as shall be
  expressly set forth by specific reference in such filing.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On June&nbsp;3, 2008, the Company issued a press
  release which described the restructuring plan which is discussed in Item 2.05
  of this Report.&#160; As part of the discussion
  in the release, the Company disclosed that it was exiting its energy consulting
  business conducted by its wholly-owned subsidiary, Skipping Stone Inc.&#160; In connection with discussing the Skipping
  Stone business, the Company disclosed in the release that in connection with
  the preparation of financial statements for its third quarter ended April&nbsp;30,
  2008, it expects to recognize an asset and goodwill impairment charge of
  approximately $1.4 million in connection with Skipping Stone, all to be recorded
  in the third quarter of the fiscal year ending July&nbsp;31, 2008 (&#147;fiscal 2008&#148;).&#160; A copy of the press release is attached
  hereto as Exhibit&nbsp;99.1 and is hereby incorporated by reference herein.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 2.05&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Costs Associated with Exit or Disposal Activities.</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On May&nbsp;28, 2008, the
  Company committed to a company-wide restructuring plan designed to
  significantly reduce costs and streamline functions, as well as to eliminate
  those costs and positions not contributing significantly to the efficiency or
  potential growth of the Company.&#160; The
  cost reduction measures include a reduction of the Company&#146;s work force by 80
  employees, which represents approximately 31% of its regular full-time staff
  and exiting its energy consulting business, Skipping Stone Inc., a business
  whose revenue, net of inter-company eliminations, accounted for less than 1% of
  total net revenue during fiscal 2007 and 2006.&#160;
  The restructuring plan is designed to centralize all core functions in
  the Company&#146;s Orange County, California headquarters.&#160; In that regard, the Company&#146;s Irving, Texas
  office will reduce its space and the two Skipping Stone offices in Boston,
  Massachusetts and Houston, Texas will be closed.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company expects that
  the personnel actions necessary to implement the reduction in force to be
  substantially completed by June&nbsp;5, 2008 and anticipates that the remaining
  aspects of the restructuring plan will be completed over the next three to four
  months.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In connection with the
  restructuring, the Company has entered into an agreement with the former president
  of Skipping Stone to sell substantially all of the assets of Skipping Stone,
  including the name &#147;Skipping Stone,&#148; for an acquisition price of a nominal
  amount of cash and the assumption of substantially all of its liabilities
  (valued at approximately $300,000), including the assumption of the Boston,
  Massachusetts office lease.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In connection with this
  restructuring plan, the Company expects to incur restructuring charges estimated
  to range between &#160;$575,000 to $650,000 all
  of which is expected to be recorded in the fourth quarter of fiscal 2008.&#160; Such restructuring charges and costs include:</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt 76.5pt;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160; Employee severance and termination costs
  estimated to be approximately $500,000; and;</font></p>
  
  <p style="margin:0in 0in .0001pt 76.5pt;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160; Lease termination costs and related
  facilities closing expenses estimated to be between $75,000 and $150,000.</font></p>
  
  <p style="margin:0in 0in .0001pt 76.5pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A copy of the press release describing the
  restructuring is attached hereto as Exhibit&nbsp;99.1 and (absent the
  information identified in Item 2.02 which is not deemed &#147;filed&#148;) is hereby
  incorporated by reference herein.</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='2',FILE='C:\JMS\105588\08-15833-1\task2971907\15833-1-ba.htm',USER='105588',CD='Jun  4 00:29 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <p style="font-weight:bold;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 9.01.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Financial
  Statements and Exhibits.</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="96%" style="border-collapse:collapse;margin-left:.25in;width:96.66%;">
   <tr>
    <td width="12%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.64%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit&nbsp;No.</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.3%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="85%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:85.06%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Description</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="12%" valign="top" style="padding:0in 0in 0in 0in;width:12.64%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.3%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="85%" valign="top" style="padding:0in 0in 0in 0in;width:85.06%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Press Release dated
    June&nbsp;3, 2008.</font></p>
    </td>
   </tr>
  </table>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Forward-Looking
  Statements</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Certain statements in
  this Current Report may be deemed to be forward-looking statements within the
  meaning of Section&nbsp;27A of the Securities Act of 1933 and Section&nbsp;21E
  of the Securities Exchange Act of 1934.&#160;
  The Company intends that all such statements be subject to the &#147;safe
  harbor&#148; provisions contained in those sections.&#160;&#160; These statements include, but are not
  limited to, the Company&#146;s estimates regarding the restructuring charges,
  estimates regarding the implementation of the Company&#146;s cost reduction measures
  and other forward-looking statements.&#160;&#160;
  Many important factors may cause the Company&#146;s actual results to differ
  from those discussed in any such forward-looking statements, including higher
  than expected attrition of Company personnel; the success and effects&#160; of the Company&#146;s realignment of corporate and
  regional functions and how effective the Company is in its implementation of
  new strategies; the volatility of the energy market; higher than expected
  attrition of, and/or unforeseen operating difficulties relating to, customer
  accounts, the volatility of the energy markets, competition, operating hazards,
  uninsured risks, failure of performance by suppliers and transmitters, changes
  in general economic conditions and seasonal weather or force majeure events that
  adversely affect electricity or natural gas supply or infrastructure; decisions
  by our energy suppliers requiring us to post additional collateral for our
  energy purchases; uncertainties in the capital or debt markets should we seek
  to raise additional capital or debt; uncertainties arising from federal and
  state proceedings regarding the 2000-2001 California energy crisis; accounts
  receivable collection issues caused by unfavorable changes in regulations or
  economic trends, increased or unexpected competition, adverse state or federal
  legislation or regulation, or adverse determinations by regulators; and other
  risks and uncertainties described in the Company&#146;s other filings with the U.S.
  Securities and Exchange Commission.&#160;
  Although the Company believes that the assumptions underlying the
  forward-looking statements are reasonable, any of the assumptions could prove
  inaccurate and, therefore, the Company cannot assure you that the results
  contemplated in forward-looking statements will be realized in the timeframe
  anticipated or at all.&#160; In light of the
  uncertainties inherent in the forward-looking information included herein, the
  inclusion of such information should not be regarded as a representation by the
  Company or any other person that the Company&#146;s objectives or plans will be
  achieved. &#160;Accordingly, investors are
  cautioned not to place undue reliance on our forward-looking statements.&#160; The Company undertakes no obligation to
  publicly update or revise any forward-looking statements, whether as a result
  of new information, future events or otherwise, except as required by law.&#160; New factors emerge from time to time, and it
  is not possible for management to predict all such factors.</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='3',FILE='C:\JMS\105588\08-15833-1\task2971907\15833-1-ba.htm',USER='105588',CD='Jun  4 00:29 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="line-height:normal;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SIGNATURES</font></b></p>
  
  <p style="line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to the requirements of the Securities
  Exchange Act of 1934, Commerce Energy Group,&nbsp;Inc. has duly caused this
  report to be signed on its behalf by the undersigned, thereunto duly
  authorized.</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="50%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">COMMERCE ENERGY GROUP,
    INC.</font></p>
    </td>
   </tr>
   <tr>
    <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="50%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a Delaware corporation</font></p>
    </td>
   </tr>
   <tr>
    <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="50%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="50%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: June&nbsp;3, 2008</font></p>
    </td>
    <td width="50%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.88%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
    </td>
    <td width="47%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:47.12%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp; /s/ C. DOUGLAS MITCHELL</font></p>
    </td>
   </tr>
   <tr>
    <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="50%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
    <p style="margin:0in 0in .0001pt 50.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">C.
    Douglas Mitchell</font></p>
    </td>
   </tr>
   <tr>
    <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="50%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
    <p style="margin:0in 0in .0001pt 50.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Interim
    Chief Financial Officer</font></p>
    </td>
   </tr>
  </table>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='4',FILE='C:\JMS\105588\08-15833-1\task2971907\15833-1-ba.htm',USER='105588',CD='Jun  4 00:29 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT
  INDEX</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="12%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.22%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit&nbsp;No.</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.24%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="85%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:85.56%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Description</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="12%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:12.22%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.24%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="85%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:85.56%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Press Release dated
    June&nbsp;3, 2008.</font></p>
    </td>
   </tr>
  </table>
  
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='',FILE='C:\JMS\105588\08-15833-1\task2971907\15833-1-ba.htm',USER='105588',CD='Jun  4 00:29 2008' -->
  
  
  </body>
  
  </html>
metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "a08-15833_18k.htm", "description": "8-K", "secsgml_size_bytes": 34597}]
metadata_filer: {"company-data": {"conformed-name": "COMMERCE ENERGY GROUP, INC.", "cik": "0001274150", "assigned-sic": "4911", "irs-number": "200501090", "state-of-incorporation": "DE", "fiscal-year-end": "0731"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-32239", "film-number": "08878326"}, "business-address": {"street1": "600 ANTON BOULEVARD, STE. 2000", "city": "COSTA MESA", "state": "CA", "zip": "92626", "phone": "(714) 259-2500"}, "mail-address": {"street1": "600 ANTON BOULDVARD, STE. 2000", "city": "COSTA MESA", "state": "CA", "zip": "92626"}, "former-company": [{"former-conformed-name": "COMMERCE ENERGY GROUP INC", "date-changed": "20040223"}, {"former-conformed-name": "AMERICAN ENERGY GROUP INC", "date-changed": "20031222"}]}
text: UNITED STATES
  SECURITIES AND EXCHANGE COMMISSION
  Washington,
  D.C. 20549
  FORM 8-K
  CURRENT REPORT
  Pursuant to Section 13 or 15(d) of
  the Securities Exchange Act of 1934
  Date of Report
  (Date of earliest event reported):
  May 28, 2008
  COMMERCE ENERGY GROUP, INC.
  (Exact name of
  registrant as specified in its charter)
  Delaware
  001-32239
  20-0501090
  (State or other
    jurisdiction of
  incorporation)
  (Commission File
    Number)
  (IRS Employer
  Identification
    No.)
  600
    Anton Blvd., Suite 2000
  Costa Mesa, California
  92626
  (Address of
    principal executive offices)
  (Zip Code)
  Registrant's telephone number, including area code:
  (714) 259-2500
  Not Applicable
  (Former name or
  former address, if changed since last report)
  Check the
  appropriate box below if the Form 8-K filing is intended to simultaneously
  satisfy the filing obligation of the registrant under any of the following
  provisions:
  o
  Written communications pursuant
  to Rule 425 under the Securities Act (17 CFR 230.425)
  o
  Soliciting material pursuant to Rule 14a-12
  under the Exchange Act (17 CFR 240.14a-12)
  o
  Pre-commencement communications
  pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2
  (b))
  o
  Pre-commencement communications
  pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
  Item 2.02               Results of Operations and Financial Condition.
  The information being furnished in this Item 2.02 and
  in Exhibit 99.1 relating to the asset and goodwill impairment charge
  relating to Skipping Stone Inc. ("Skipping Stone"), the wholly-owned subsidiary
  of Commerce Energy Group, Inc, (the "Company") shall not be deemed "filed" for
  purposes of Section 18 of the Securities Exchange Act of 1934, as amended
  (the "Exchange Act"), or incorporated by referenced in any filing under the
  Securities Act of 1933, as amended, or the Exchange Act, except as shall be
  expressly set forth by specific reference in such filing.
  On June 3, 2008, the Company issued a press
  release which described the restructuring plan which is discussed in Item 2.05
  of this Report.  As part of the discussion
  in the release, the Company disclosed that it was exiting its energy consulting
  business conducted by its wholly-owned subsidiary, Skipping Stone Inc.  In connection with discussing the Skipping
  Stone business, the Company disclosed in the release that in connection with
  the preparation of financial statements for its third quarter ended April 30,
  2008, it expects to recognize an asset and goodwill impairment charge of
  approximately $1.4 million in connection with Skipping Stone, all to be recorded
  in the third quarter of the fiscal year ending July 31, 2008 ("fiscal 2008").  A copy of the press release is attached
  hereto as Exhibit 99.1 and is hereby incorporated by reference herein.
  Item 2.05               Costs Associated with Exit or Disposal Activities.
  On May 28, 2008, the
  Company committed to a company-wide restructuring plan designed to
  significantly reduce costs and streamline functions, as well as to eliminate
  those costs and positions not contributing significantly to the efficiency or
  potential growth of the Company.  The
  cost reduction measures include a reduction of the Company's work force by 80
  employees, which represents approximately 31% of its regular full-time staff
  and exiting its energy consulting business, Skipping Stone Inc., a business
  whose revenue, net of inter-company eliminations, accounted for less than 1% of
  total net revenue during fiscal 2007 and 2006. 
  The restructuring plan is designed to centralize all core functions in
  the Company's Orange County, California headquarters.  In that regard, the Company's Irving, Texas
  office will reduce its space and the two Skipping Stone offices in Boston,
  Massachusetts and Houston, Texas will be closed.
  The Company expects that
  the personnel actions necessary to implement the reduction in force to be
  substantially completed by June 5, 2008 and anticipates that the remaining
  aspects of the restructuring plan will be completed over the next three to four
  months.
  In connection with the
  restructuring, the Company has entered into an agreement with the former president
  of Skipping Stone to sell substantially all of the assets of Skipping Stone,
  including the name "Skipping Stone," for an acquisition price of a nominal
  amount of cash and the assumption of substantially all of its liabilities
  (valued at approximately $300,000), including the assumption of the Boston,
  Massachusetts office lease.
  In connection with this
  restructuring plan, the Company expects to incur restructuring charges estimated
  to range between  $575,000 to $650,000 all
  of which is expected to be recorded in the fourth quarter of fiscal 2008.  Such restructuring charges and costs include:
  ·
  Employee severance and termination costs
  estimated to be approximately $500,000; and;
  ·
  Lease termination costs and related
  facilities closing expenses estimated to be between $75,000 and $150,000.
  A copy of the press release describing the
  restructuring is attached hereto as Exhibit 99.1 and (absent the
  information identified in Item 2.02 which is not deemed "filed") is hereby
  incorporated by reference herein.
  2
  Item 9.01.              Financial
  Statements and Exhibits.
  Exhibit No.
  Description
  99.1
  Press Release dated
    June 3, 2008.
  Forward-Looking
  Statements
  Certain statements in
  this Current Report may be deemed to be forward-looking statements within the
  meaning of Section 27A of the Securities Act of 1933 and Section 21E
  of the Securities Exchange Act of 1934. 
  The Company intends that all such statements be subject to the "safe
  harbor" provisions contained in those sections.   These statements include, but are not
  limited to, the Company's estimates regarding the restructuring charges,
  estimates regarding the implementation of the Company's cost reduction measures
  and other forward-looking statements.  
  Many important factors may cause the Company's actual results to differ
  from those discussed in any such forward-looking statements, including higher
  than expected attrition of Company personnel; the success and effects  of the Company's realignment of corporate and
  regional functions and how effective the Company is in its implementation of
  new strategies; the volatility of the energy market; higher than expected
  attrition of, and/or unforeseen operating difficulties relating to, customer
  accounts, the volatility of the energy markets, competition, operating hazards,
  uninsured risks, failure of performance by suppliers and transmitters, changes
  in general economic conditions and seasonal weather or force majeure events that
  adversely affect electricity or natural gas supply or infrastructure; decisions
  by our energy suppliers requiring us to post additional collateral for our
  energy purchases; uncertainties in the capital or debt markets should we seek
  to raise additional capital or debt; uncertainties arising from federal and
  state proceedings regarding the 2000-2001 California energy crisis; accounts
  receivable collection issues caused by unfavorable changes in regulations or
  economic trends, increased or unexpected competition, adverse state or federal
  legislation or regulation, or adverse determinations by regulators; and other
  risks and uncertainties described in the Company's other filings with the U.S.
  Securities and Exchange Commission. 
  Although the Company believes that the assumptions underlying the
  forward-looking statements are reasonable, any of the assumptions could prove
  inaccurate and, therefore, the Company cannot assure you that the results
  contemplated in forward-looking statements will be realized in the timeframe
  anticipated or at all.  In light of the
  uncertainties inherent in the forward-looking information included herein, the
  inclusion of such information should not be regarded as a representation by the
  Company or any other person that the Company's objectives or plans will be
  achieved.  Accordingly, investors are
  cautioned not to place undue reliance on our forward-looking statements.  The Company undertakes no obligation to
  publicly update or revise any forward-looking statements, whether as a result
  of new information, future events or otherwise, except as required by law.  New factors emerge from time to time, and it
  is not possible for management to predict all such factors.
  3
  SIGNATURES
  Pursuant to the requirements of the Securities
  Exchange Act of 1934, Commerce Energy Group, Inc. has duly caused this
  report to be signed on its behalf by the undersigned, thereunto duly
  authorized.
  COMMERCE ENERGY GROUP,
    INC.
  a Delaware corporation
  Date: June 3, 2008
  By:
  /s/ C. DOUGLAS MITCHELL
  C.
    Douglas Mitchell
  Interim
    Chief Financial Officer
  4
  EXHIBIT
  INDEX
  Exhibit No.
  Description
  99.1
  Press Release dated
    June 3, 2008.