NACEL Energy submits interconnection plan to SPS

MOORE COUNTY, TEXAS - NACEL Energy Corporation, a wind power company in business to generate clean, renewable energy, confirmed it has filed an Application for Interconnection with Southwestern Public Service Company (SPS), a subsidiary of XCEL Energy, for the company's 30 MW Blue Creek wind power project located in Moore County, Texas.

SPS is a regulated utility and owner of electric transmission infrastructure in the Texas Panhandle. NACEL Energy's complete submission to SPS included requisite engineering drawings, wind turbine selection and proposed date of commissioning (operations).

NACEL Energy identifies interconnection points in the nation's electric grid, and then leases nearby acreage where 6 to 18 utility class wind turbines can be constructed, without incurring the often significant transmission and related electric infrastructure upgrade costs and delays which can adversely impact other company's wind power projects.

The company's work in this regard is currently focused in Texas, Arizona, Kansas and Illinois.

As NACEL Energy previously advised November 7, 2008, an NRG Systems meteorological tower was erected at the company's Blue Creek wind energy project site. According to the Texas State Energy Conservation Office (SECO), the Texas Panhandle exhibits the State's "greatest expanse of high quality winds." Last quarter, the Company commissioned an interim analysis of site wind data collected at Blue Creek and results met expectations.

NACEL Energy anticipates a period of months, or longer, before a final interconnection agreement can be executed with SPS. In the interim, important additional development milestones are underway including, without limitation, obtaining turbine debt financing and a power purchase agreement.

Accordingly, the company cautions that commissioning (operations) at Blue Creek is not expected until July 2010, or later depending on future events.



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