NACEL Energy Agreement With Southwest Power Pool for 20 MW Leila Lake Wind Power Project

NACEL Energy Corporation (NCEN) (FRANKFURT: 4FC) ("NACEL Energy" or the "Company") announced it has entered into a Feasibility Study Agreement with Southwest Power Pool, Inc. (SPP) to assess the impact of connecting the Company’s 20 MW Leila Lake wind farm project to the electric grid. The completion of this study is a key milestone leading to the signing of a formal interconnection agreement with SPP.

As NACEL Energy previously advised two weeks ago (see Company’s 8-K filed January 26, 2010), it has submitted a comprehensive bid, with the input of a tier one wind turbine manufacturer, for the supply of 20 MW of wind power from Leila Lake to American Electric Power Service Corporation (AEPSC), a subsidiary of American Electric Power Company of Columbus, OH, one of the nation’s largest electric utilities.

AEPSC has received NACEL Energy’s bid documents and is expected to announce its short list decision March 1, 2010.

NACEL Energy Chief Executive Officer Paul Turner, Ph.D. stated: "In preparation for our bid to AEPSC, we engaged Delenova Energy LLC (‘Delenova’) to study the impact of 20 MW of new wind power from Leila Lake on SPP’s transmission network. The results of the Delenova study of Leila Lake were positive, demonstrating no major adverse impacts. We anticipate a similar favorable outcome from SPP’s study and look forward to signing a final interconnection agreement for Leila Lake."

The Company cautions further milestones remain to be undertaken and completed at Leila Lake prior to project commissioning (operations). Such milestones include signing the aforementioned formal interconnection agreement with SPP, negotiating a power purchase agreement and arranging construction and turbine (debt) financing.

NACEL Energy Corporation (NCEN) 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 latest Snowflake wind energy project in Arizona in addition to Leila Lake, Hedley Pointe, Swisher, Channing Flats and Blue Creek, all located in the Texas Panhandle.

NACEL Energy currently anticipates generating an aggregate 130 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 and Illinois. NACEL Energy was founded in 2006 and successfully completed its IPO in December of 2007.