NACEL Energy Receives Permitting at Texas Wind Project

NACEL Energy Corporation (OTCBB: NCEN) (FRANKFURT: 4FC) ("NACEL Energy"), a wind power company in business to generate clean, renewable energy, today announced the completion of major environmental assessment work at its Blue Creek wind power project in Moore County, Texas. In addition, the Company recently received Federal Aviation Administration (FAA) permits covering the placement of 27 turbines at Blue Creek — completing the development phase permitting for this project.

Consistent and steady progress on NACEL Energy’s Blue Creek wind power project has occurred. Work initially began early in 2009 with an ALTA/ACSM survey on the 2,073 acre parcel leased by the Company under a long term wind development rights agreement (see Company’s Form 8-K filed on November 8, 2008) including access roads to the site. The Company then commissioned work for a series of necessary evaluations and other efforts including an archaeological/cultural site evaluation needed for the U.S. Army Corps of Engineers; a biological resources evaluation including wildlife habitat assessment; a storm water pollution prevention plan; a U.S. Army of Corps of Engineers jurisdictional waters evaluation and the aforementioned application for FAA turbine permits.

In addition to environmental and permitting work, NACEL Energy has also completed significant pre-construction work for the Blue Creek project including turbine and electrical collection engineering as part of the Company’s project interconnection plan submitted to Southwestern Public Service (see Company’s Form 8-K filed on June 18, 2009).

The Company cautions that important milestones remain to be undertaken and completed prior to project commissioning (operations) at Blue Creek, currently anticipated for July 2010. Such milestones include a final interconnection agreement, negotiation of a power purchase agreement and consummating turbine (debt) financing.

NACEL Energy’s Chief Executive Officer, Paul Turner, Ph. D., stated:

"NACEL Energy’s wind development business model based upon phased project expansion and multiple interconnection options is unique in the American wind energy industry. We look forward to updating shareholders and other interested parties concerning the achievement of future milestones at Blue Creek, as well as our five other wind power generation projects."

As early as the 1990’s, Pacific Gas & Electric (the California utility) concluded that wind would ultimately become America’s least expensive source of energy. In 2002, the Department of Energy’s National Renewable Energy Laboratory (NREL) graphed the historical cost-trends of wind energy.

The NREL’s projection in 2002 accurately forecast that today in 2009, the cost of energy produced from wind turbines is competitive with mainstream power technologies, such as natural gas (Combined Cycle Gas Turbine or CCGT), nuclear and even coal-fired generation (Integrated Gasification Combined Cycle or IGCC).

The mix of America’s energy production is approximately as follows; coal (51 percent), natural gas (18 percent) and nuclear (20 percent). However, most new electric energy plants constructed since the mid 1990’s are natural gas fired (CCGT). But, the cost of natural gas has increased steadily since that time, when it averaged less than $2 per thousand cubic feet, to today’s cost of approximately $6 per thousand cubic feet. The result is that the cost of natural gas fired electric energy generation can be unpredictable. For example, in January 2003, when natural gas costs reached $15 per thousand cubic feet in some markets, the cost of natural gas generated power reached as 20 cents per kWh in peak hours, in those same markets.

While wind energy cannot entirely replace base-load generation (from natural gas, coal, nuclear, hydro), in contrast to natural gas, the cost of wind energy has continued to decline. In fact, the cost of wind energy has dropped by approximately 15% with each doubling of installed capacity worldwide, and capacity doubled three times during the 1990s. Wind energy today costs only about one-sixth as it did in the 1980’s and its cost is expected to further decline by another 25% by 2010.

It’s not surprising that wind energy is the fastest growing source of power generation in America and the world given the direct economic benefits. But, if indirect environmental costs were factored in, wind energy’s competitiveness would increase even further because of its low environmental impact. Wind energy produces no emissions, but less obviously, wind energy is also free of the additional environmental costs resulting from mining or drilling, processing and shipping other “fuels”. In contrast, coal, which provides half of America’s electric energy as mentioned above, has been linked to illness, acid rain and mercury pollution, and releases greenhouse gases and therefore may contribute to global warming. Although natural gas is less polluting than coal, it also releases greenhouse gases that also may affect our world’s climate. The use of wind energy does not pollute our air or water and, unlike nuclear power, requires no hazardous waste storage. Finally, an increasingly important economic and strategic benefit of wind energy is its contribution in reducing our dependence upon of imported energy from less secure regions across the globe.

About NACEL Energy Corporation (OTCBB: NCEN)

Wind power it’s a clean, profitable, renewable, energy business. Important advances in turbine technology have made power generated from wind the only form of renewable energy now truly cost-competitive with fossil-fuels. And, wind’s role in our nation’s energy policy mix is rapidly gaining importance – 33 States and the Federal Government have implemented legislation to speed-up wind energy development. Today, wind is the fastest growing source of energy in America and it is an important solution in our overall quest for energy independence and a cleaner environment.

NACEL Energy is engaged in the business of generating clean, profitable, renewable energy from wind. We offer shareholders the unique opportunity to participate in America’s fastest growing energy business through our portfolio of utility class wind power generation projects. The total planned generating capacity of NACEL Energy’s domestic and international wind power projects is 1000 MW – enough energy to power 300,000 average American homes.

NACEL Energy was founded as private company in February 2006. In December, 2007 we successfully completed our IPO (initial public offering). Our business office is located in Denver, CO.

NACEL Energy is fully compliant with all Securities and Exchange Commission (SEC) regulations regarding disclosure of material events and quarterly and annual reporting of operating and financial statements. Our stock’s trading symbol ("NCEN") is quoted by the National Association of Securities Dealers Automatic Quotation (NASDAQ) system and also trades in Europe on the Frankfurt Stock Exchange (Frankfurt: "4FC").

NACEL Energy is one of the first publicly traded companies in America exclusively developing clean, renewable, utility scale wind power. NACEL Energy has commenced work on its new Snowflake project in Arizona in addition to Leila Lakes, Hedley Pointe, Swisher, Channing Flats and Blue Creek, all located in the Texas Panhandle. NACEL Energy currently anticipates generating an aggregate 120 MW, or more, of new wind power upon their completion. In addition, the Company is currently assessing the feasibility of additional project opportunities in Kansas, Illinois and the Dominican Republic. NACEL Energy was founded in 2006 and successfully completed its IPO in December of 2007.