NACEL Energy Corp. (NCEN.OB) Submits Long Term Power Supply Bid to American Electric Power

The company announced today it submitted a comprehensive bid with the input of a tier-one wind turbine manufacturer for the supply of 20 megawatts of clean, renewable energy from NACEL’s Leila Lake wind project located in Donley County, Texas to American Electric Power Service Corporation (AEPSC), a subsidiary of one the nation’s largest electric utilities – American Electric Power Company.

On June 1, 2009, AEPSC issued a formal request for the provision of 1100 megawatts of new renewable energy to its seven utility subsidiaries, including Southwestern Electric which serves Arkansas, Louisiana and east Texas (the location of the company’s Leila Lake project). AEPSC requested bids be received by January 15, 2010 for projects in-service before December 31, 2011. All power supplied by successful bidders is expected to be contracted with AEPSC under long term 20 year power purchase agreements.

NACEL Energy is able to submit its bid because of the significant progress the company has made in its Leila Lake project:

• The company installed a NRG Systems meteorological tower to quantify the wind resource prevalent in the Texas panhandle.
• NACEL submitted a plan of electrical interconnection and completed additional important engineering work related to wind turbine placement and power collection.
• The company engaged Delanova Energy to study the potential impacts of 20 megawatts of new wind power on the electrical grid generated from Leila Lake – there were no adverse impacts.
• NACEL also obtained the input of a major wind turbine manufacturer, whose turbines the company found to be ideally suited to the wind characteristics at Leila Lake.

The company will anxiously await the decision from AEPSC, which will announces its short list decision on March 1, 2010.