NACEL Energy Corp. has announced its application for the interconnection of the first phase of the Blue Creek wind power generation project to the electric grid has now been reviewed and approved by Southwestern Public Service Co. (SPS), a subsidiary of Xcel Energy.

NACEL first submitted its plan of interconnection to SPS earlier in 2009. After considering NACEL's submission, SPS provided NACEL with a scope of work, including a detailed cost estimate of the transmission equipment and engineering resources required to accommodate the Blue Creek project. Following an internal review, NACEL then formally executed the necessary document from SPS, accepting the scope of work without revision, and additionally forwarded $135,000 for the immediate commencement of the work to be performed by SPS. SPS estimates a period of 24 weeks before all engineering and the installation and modification of equipment in conjunction with the interconnection is to be completed.

The company cautions that additional milestones remain to be undertaken and completed prior to project commissioning (operations) at Blue Creek, anticipated for the third quarter of 2010, or later depending on future events. Such milestones include the completion of the aforementioned interconnection work, obtaining a power purchase agreement and consummating turbine (debt) financing.