NACEL Energy Completes Key Milestone at Snowflake Wind Project in Arizona

PHOENIX AZ, NACEL Energy Corporation (OTC BB: “NCEN”) (FRANKFURT: “4FC”), a wind power company in business to generate clean, renewable energy, today confirmed it has delivered engineering drawings and other technical documentation, including wind turbine selection and a proposed date of commissioning (operations), pursuant to a recent submission of a formal request for interconnection, to Arizona Public Service (APS), for the Company’s Snowflake wind power project, located in Navajo County, Arizona.

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

“On July 28, 2009 we announced our Snowflake wind power project, stating we would complete the engineering and gather the technical documentation required for our interconnection to APS, in a period of months. This important step in the development of Snowflake has been achieved. In addition, we are also able to advise shareholders and other interested parties that the size of the Snowflake project has been increased from 10 MW to 20 MW.”

NACEL Energy now has six active requests for the interconnection of 130 MW of new wind energy generation facilities to the nation’s electric grid. In addition to 20 MW at Snowflake, the Company’s 30 MW Blue Creek project in Moore County, Texas is now before Southwestern Public Service Company (a subsidiary of XCEL Energy), the 20 MW Channing Flats, also in Moore County, is before Southwest Power Pool, the 20 MW Swisher and 10 MW Hedley Pointe projects, both in Donley County, Texas, are before Golden Spread Electric Cooperative (as agent for Swisher Electric Cooperative) and the 20 MW Leila Lake project, also in Donley County, is before Southwest Power Pool.

NACEL Energy anticipates a period of several months, or longer, before a final interconnection agreement is executed at Snowflake. In the interim, other important milestones are also underway including, without limitation, obtaining turbine debt financing and a power purchase agreement. Accordingly, the Company cautions that commissioning (operations) at Snowflake is not expected until the fourth quarter 2010, or later depending on future events.