8-K

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): December 23, 2003

COMMONWEALTH ENERGY CORPORATION
(Exact Name of registrant as specified in its charter)

California	000-33069	33-0769555
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

15901 Red Hill Avenue, Suite 100 Tustin, California	92780
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (714) 258-0470

Not Applicable
(Former name or former address, if changed since last report)

TABLE OF CONTENTS

	Item 7. Exhibits.
	Item 12. Results of Operations and Financial Condition.
SIGNATURES
EXHIBIT 99

Item 7. Exhibits.

Exhibit No.	Description
99	Press Release, dated as of December 23, 2003.

Item 12. Results of Operations and Financial Condition.

     On December 23, 2003, Commonwealth Energy Corporation (“Commonwealth”) issued a press release announcing its operating results for the first quarter of the fiscal year ending July 31, 2004. Attached as Exhibit 99 to this report is a copy of the Commonwealth press release, which is incorporated herein by reference.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: December 23, 2003	COMMONWEALTH ENERGY CORPORATION
	By:	/s/ JAMES L. OLIVER James L. Oliver Chief Financial Officer

EX-99 3 a95382exv99.htm EXHIBIT 99

EXHIBIT 99

FOR IMMEDIATE RELEASE

Commonwealth Energy Corporation Announces Results for First Quarter Ended
October 31, 2003

Tustin, California, December 23, 2003. Commonwealth Energy Corporation, a leading U.S. electric service provider, announced results for the first quarter ended October 31, 2003.

Commonwealth Energy’s revenues for the first quarter of fiscal 2004 were $58.4 million, up 73% as compared to the first quarter of fiscal 2003. This increase in revenues was due to an increase in sales in Pennsylvania of 114% over the first quarter in fiscal 2003 and sales in Michigan of $9.6 million versus no sales in fiscal year 2003. In addition, California experienced a sales increase of 10% over the same period last year. Despite the increased sales, Commonwealth experienced a net loss due to increases in energy costs in all markets, reduced profit in California as a result of utility price reductions, a California Independent System Operator cost assessment, and losses in Power Efficiency Corporation, whose losses are consolidated under Commonwealth’s financial statement.

The Company at October 31, 2003 had total assets of $119.3 million, equity of $91.9 million, unrestricted cash of $51.7 million and no long-term debt.

“Our first quarter’s performance is positive in terms of growth. Unfortunately the utility price reductions hurt our bottom line because our pricing strategy is a discount off the utilities’ price. We believe this is a short-term utility strategy that we expect will be reversed in the near future. Expanding into new markets should help alleviate some of the negative impact of California utility strategies on our pricing. The more we can diversify, the better we are protected.” stated Ian Carter, Commonwealth’s Chairman and CEO.

About Commonwealth Energy Corporation

Headquartered in Tustin, California, and operating under the brand name “electricAmerica,” Commonwealth Energy Corporation is one of the largest energy service providers in California, and also provides retail electric service to the Philadelphia, Pennsylvania, Detroit, Michigan, and New Jersey market areas. Commonwealth is licensed by the Federal Energy Regulatory Commission as a power marketer and is a recognized leader in the deregulated energy marketplace, offering retail electricity and energy efficiency products and services. Commonwealth currently serves commercial, industrial and residential electricity customers in multiple U.S. markets.

For more information about Commonwealth, please contact: Roy Reeves, Vice President of Marketing, Commonwealth Energy Corporation, 15901 Red Hill Avenue, Suite 100, Tustin, California 92780; Telephone: 1-800-ELECTRIC; e-mail: rreeves@electric.com.

Forward Looking Statements

This press release contains information about future expectations, plans and prospects that may constitute forward-looking statements for purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. For this purpose, any statement contained herein, including those of our Chairman and CEO, that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words “believe,” “anticipate,” “expect,” “estimate,” “await,” “continue,” “intend,” “plan” and similar expressions, are intended to identify forward-looking statements and projections (which include statements concerning plans and objectives of management for future operations) that are based on management’s belief, as well as assumptions made by, and information currently available to, management. While the Company believes that its expectations are based upon reasonable assumptions, there can be no assurances that the Company’s goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect the Company’s actual results and may cause results to differ materially from those expressed in forward-looking statements made by or on behalf of the Company. Some of these factors include: (a) legislative and regulatory initiatives regarding deregulation and restructuring of the electric utility industry; (b) volatility in commodity prices and interest rates; (c) the extent and timing of the entry of additional competition in the markets in which the Company competes; (d) the Company’s dependence upon a limited number of third parties to generate and supply to the Company electricity and timely perform their contracts with the Company; (e) the Company’s dependence upon limited number of utilities to transmit and distribute the electricity the Company sells to its customers and to timely perform their contracts with the Company; (f) the Company’s ability to obtain credit necessary to support future growth and profitability; (g) the Company’s continued ability to obtain and maintain licenses from the states in which the Company operates; and (h) and other factors detailed in the Company’s periodic reports and registration statements filed with the SEC. Commonwealth Energy specifically disclaims any obligation to update or revise any forward-looking statement whether as a result of new information, future developments or otherwise.

Summary Financial Results

	First Quarter Ended October 31,
(In thousands except per share data)	2003			2002			% Change
	(Unaudited)			(Unaudited)
Net revenue	$	58,396		$	33,682			73.4	%
Direct energy costs		54,075			26,206			106.3	%
Gross profit		4,321			7,476			-42.2	%
Selling & marketing expenses		970			1,310			-26.0	%
General and administrative expenses		6,221			4,629			34.4	%
Income (loss) from operations		(2,870	)		1,537			-286.7	%
Loss on litigation award		—			(2,200	)		-100.0	%
Loss on equity investments		—			(233	)		-100.0	%
Minority interest		544			—		nm
Interest income, net		130			234			-44.4	%
Loss before benefit of income taxes		(2,196	)		(662	)		231.7	%
Benefit from income taxes		1,074			136			689.7	%
Net loss	$	(1,122	)	$	(526	)		113.3	%
Earnings per share — basic	$	(0.04	)	$	(0.02	)		100.0	%
Earnings per share — fully diluted	$	(0.04	)	$	(0.02	)		100.0	%

Condensed Consolidated Balance Sheet

			October 31,		July 31,
(Dollars in thousands)			2003		2003
			(Unaudited)		(Audited)
Assets
	Cash & cash equivalents		$	51,722	$	40,921
	Accounts receivable, net			23,510		37,861
	Prepaid and other current assets			9,537		9,692
		Total current assets		84,769		88,474
	Restricted cash and cash equivalents			18,436		20,773
	Property, and equipment, net			3,075		2,984
	Goodwill			2,479		3,007
	Other assets			10,560		10,632
		Total assets	$	119,319	$	125,870
Liabilities and Shareholder Equity
	Accounts payable		$	19,028	$	24,936
	Accrued liabilities			7,434		7,127
		Total current liabilities		26,462		32,063
	Deferred income tax liabilities			187		187
	Minority interest			775		603
	Shareholder’s equity			91,895		93,017
		Total liabilities and shareholders’ equity	$	119,319	$	125,870

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EX-99

Exhibit 99