| þ |   | QUARTERLY      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|--------|--------|---------------------------------------------------------------------------------------------|

| o |   | TRANSITION      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|--------|----------------------------------------------------------------------------------------------|

| Incorporated      in Wyoming |   | IRS      ID# 20-4315791 |
|------------------------------|--------|-------------------------|

| Large      accelerated filer o                                                  | Accelerated      filer o                  |
|---------------------------------------------------------------------------------|-------------------------------------------|
| Non-accelerated      filer o (Do      not check if a smaller reporting company) | Smaller      reportingcompany      þ |

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| PART      I. FINANCIAL INFORMATION              |   |   | 3 |   |
|-------------------------------------------------|--------|--------|---|--------|
| Item      1.  Financial Statements    |   |   | 3 |   |
| Consolidated      Balance Sheets                |   |   | 3 |   |
| Consolidated      Statements of Expenses        |   |   | 4 |   |
| Consolidated      Statements of Cash Flows      |   |   | 5 |   |
| Notes      to Consolidated Financial Statements |   |   | 6 |   |
| Item      4.  Controls and Procedures |   |   | 8 |   |
| PART      II. OTHER INFORMATION                 |   |   | 9 |   |
| Item      6.  Exhibits                |   |   | 9 |   |

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|                                                                                                                            |   | June      30, |       |   | March 31, |   |
|---------------------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|----------------|--------|
|                                                                                                                            |   | 2009          |       |   | 2009           |   |
| ASSETS                                                                                                                          |   |          |       |   |           |   |
| Current      Assets                                                                                                             |   |          |       |   |           |   |
| Cash                                                                                                                            |   | $             | 189,218    |   |           | $      | 564,677 |   |
| Other      current assets                                                                                                       |   |          | 64,943     |   |           |   | - |   |
| Total      current assets                                                                                                       |   |          | 254,161    |   |           |   | 564,677 |   |
| Property,      plant and equipment, net of accumulated depreciation of $5,764 and $1,682,      respectively                     |   |          | 162,413    |   |           |   | 166,495 |   |
| TOTAL      ASSETS                                                                                                               |   | $             | 416,574    |   |           | $      | 731,172 |   |
|                                                                                                                            |   |          |       |   |           |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY (DEFICIT)                                                                             |   |          |       |   |           |   |   |   |
| Current      Liabilities                                                                                                        |   |          |       |   |           |   |   |   |
| Accounts      payable                                                                                                           |   | $             | 22,183     |   |           | $      | 7,537 |   |
| Accrued      interest                                                                                                           |   |          | -     |   |           |   | 3,894 |   |
| Total      current liabilities                                                                                                  |   |          | 22,183     |   |           |   | 11,431 |   |
| Shareholder      line of credit                                                                                                 |   |          | 400,000    |   |           |   | 250,000 |   |
| Total      liabilities                                                                                                          |   |          | 422,183    |   |           |   | 261,431 |   |
| Stockholders'      equity                                                                                                       |   |          |       |   |           |   |   |   |
| Common      stock of $.001 par value. Authorized 50,000,000 issued 21,801,000 at June      30, and 21,786,000 at March 31, 2009 |   |          | 21,801     |   |           |   | 21,786 |   |
| Additional      paid-in capital                                                                                                 |   |          | 3,655,171  |   |           |   | 3,636,886 |   |
| Deficit      accumulated during the development stage                                                                           |   |          | (3,682,581 | )      |           |   | (3,188,931 | ) |
| Total      stockholders' equity (deficit)                                                                                       |   |          | (5,609)    |   |           |   | 469,741 |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                                                                       |   | $             | 416,574    |   |           | $      | 731,172 |   |

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|                                                              |   | Three Months Ended       June 30, |       |   | Inceptionthrough |    |
|-------------------------------------------------------------------|--------|--------------------------------------------------|------------|--------|------------------|---------|
|                                                              |   | 2009                                             |       |   | 2008             |    |   | June      30, 2009 |   |
|                                                              |   |                                             |       |   |             |    |   |   |   |
| General      and administrative expenses                          |   | $                                                | 202,454    |   |             | $       | 1,304,673 |   |   | $ | 2,195,296 |   |
|                                                              |   |                                             |       |   |             |    |   |   |   |   |   |   |
| Wind      projects donated by related party                       |   |                                             | -          |   |             |    | - |   |   |   | 490,000 |   |
|                                                              |   |                                             |       |   |             |    |   |   |   |   |   |   |
| Wind      project development costs                               |   |                                             | 287,661    |   |             |    | 46,929 |   |   |   | 974,429 |   |
|                                                              |   |                                             |       |   |             |    |   |   |   |   |   |   |
| Net      loss from operations                                     |   |                                             | 490,115    |   |             |    | 1,351,602 |   |   |   | 3,659,725 |   |
|                                                              |   |                                             |       |   |             |    |   |   |   |   |   |   |
| Other      (income) expense                                       |   |                                             |       |   |             |    |   |   |   |   |   |   |
|                                                              |   |                                             |       |   |             |    |   |   |   |   |   |   |
| Interest      expense                                             |   |                                             | 3,535      |   |             |    | 2,630 |   |   |   | 27,123 |   |
|                                                              |   |                                             |       |   |             |    |   |   |   |   |   |   |
| Interest      income                                              |   |                                             | -          |   |             |    | - |   |   |   | (3,848 | ) |
|                                                              |   |                                             |       |   |             |    |   |   |   |   |   |   |
| Other      income                                                 |   |                                             | -          |   |             |    | (279) |   |   |   | (419 | ) |
|                                                              |   |                                             |       |   |             |    |   |   |   |   |   |   |
| Total      other (income) expense                                 |   |                                             | 3,535      |   |             |    | 2,351 |   |   |   | 22,856 |   |
|                                                              |   |                                             |       |   |             |    |   |   |   |   |   |   |
| Net      loss                                                     |   |  $                                          | (493,650   | )      |             |  $ | (1,353,953 | ) |   |  $ | (3,682,581 | ) |
|                                                              |   |                                             |       |   |             |    |   |   |   |   |   |   |
| Basic      and diluted net loss per share                         |   | $                                                | (0.02      | )      |             | $       | (0.06 | ) |   |   | N/A |   |
|                                                              |   |                                             |       |   |             |    |   |   |   |   |   |   |
| Basic      and diluted weighted average common shares outstanding |   |                                             | 21,793,747 |   |             |    | 21,487,758 |   |   |   | N/A |   |

----

|                                                                                  |   |                                      |      |   |    |   |       | Inception          |   |
|---------------------------------------------------------------------------------------|--------|-------------------------------------------|-----------|--------|---------|--------|------------|--------------------|--------|
|                                                                                  |   | Three Months Ended June30, |      |   | through |   |
|                                                                                  |   | 2009                                      |      |   | 2008    |   |       | June      30, 2009 |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES                                             |   |                                      |      |   |    |   |       |               |   |
| Net      loss                                                                         |   | $                                         | (493,650  | )      |    | $      | (1,353,953 | )                  |   | $ | (3,682,581 | ) |
| Adjustments      to reconcile net loss to net cash used in operating      activities: |   |                                      |      |   |    |   |       |               |   |   |   |   |
| Depreciation                                                                          |   |                                      | 4,082     |   |    |   | -          |               |   |   | 5,764 |   |
| Stock      for services                                                               |   |                                      | 18,300    |   |    |   | 62,240     |               |   |   | 176,490 |   |
| Wind      projects donated by related party                                           |   |                                      | -         |   |    |   | -          |               |   |   | 490,000 |   |
| Imputed      interest                                                                 |   |                                      | -         |   |    |   | 2,630      |               |   |   | 15,725 |   |
| Stock      issued for executive compensation                                          |   |                                      | -         |   |    |   | 1,007,500  |               |   |   | 1,007,500 |   |
| Changes      in:                                                                      |   |                                      |      |   |    |   |       |               |   |   |   |   |
| Prepaid      and other current assets                                                 |   |                                      | (64,943   | )      |    |   | 1,277      |               |   |   | (64,943 | ) |
| Accounts      payable                                                                 |   |                                      | 14,646    |   |    |   | (78,660)   |               |   |   | 22,183 |   |
| Accrued      interest                                                                 |   |                                      | (3,894)   |   |    |   | -          |               |   |   | - |   |
| Net      Cash Used in Operating Activities                                            |   |                                      | (525,459  | )      |    |   | (358,966   | )                  |   |   | (2,029,862 | ) |
| CASH      FLOWS FROM INVESTING ACTIVITIES                                             |   |                                      |      |   |    |   |       |               |   |   |   |   |
| Purchase      of fixed assets                                                         |   |                                      | -         |   |    |   | (42,564)   |               |   |   | (168,177 | ) |
| Net      Cash Used in Investing Activities                                            |   |                                      | -         |   |    |   | (42,564)   |               |   |   | (168,177 | ) |
| CASH      FLOWS FROM FINANCING ACTIVITIES                                             |   |                                      |      |   |    |   |       |               |   |   |   |   |
| Proceeds      from shareholder line of credit                                         |   |                                      | 150,000   |   |    |   | -          |               |   |   | 397,257 |   |
| Proceeds      from sale of common stock                                               |   |                                      | -         |   |    |   | -          |               |   |   | 790,000 |   |
| Proceeds      from exercise of warrant                                                |   |                                      | -         |   |    |   | 690,373    |               |   |   | 1,200,000 |   |
| Net      cash Provided by Financing Activities                                        |   |                                      | 150,000   |   |    |   | 690,373    |               |   |   | 2,387,257 |   |
| NET      INCREASE IN CASH                                                             |   |                                      | (375,459) |   |    |   | 288,843    |               |   |   | 189,218 |   |
| CASH      AT BEGINNING OF PERIOD                                                      |   |                                      | 564,677   |   |    |   | 380,567    |               |   |   | - |   |
| CASH      AT END OF PERIOD                                                            |   | $                                         | 189,218   |   |    | $      | 669,410    |               |   | $ | 189,218 |   |
|                                                                                  |   |                                      |      |   |    |   |       |               |   |   |   |   |
| Non-cash      investing and financing activities:                                     |   |                                      |      |   |    |   |       |               |   |   |   |   |
| Subscription      receivable                                                          |   |                                      | -         |   |    |   | -          |               |   |   | - |   |
|                                                                                  |   |                                      |      |   |    |   |       |               |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURES OF CASH FLOW INFORMATION                                |   |                                      |      |   |    |   |       |               |   |   |   |   |
| CASH      PAID FOR:                                                                   |   |                                      |      |   |    |   |       |               |   |   |   |   |
| Interest                                                                              |   | $                                         | 7,429     |   |    | $      | -          |               |   | $ | 11,398 |   |
| Income      taxes                                                                     |   | $                                         | -         |   |    | $      | -          |               |   | $ | - |   |

----

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| Exhibit No. |   | Document                                                                                                                                                                                                            |
|------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |   |                                                                                                                                                                                                                |
| 31.1             |   | Certification      Pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002 (Mark      Schaftlein, Principal Executive Officer and Principal Accounting      Officer)                                           |
|             |   |                                                                                                                                                                                                                |
| 32.1             |   | Certification      Pursuant to 18 U.S.C. §1350, as Adopted Pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002 (Mark Schaftlein, Principal Executive Officer      and Principal Accounting Officer) |

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| NACEL      ENERGY CORPORATION |                                                                    |
|-------------------------------|-------------------------------------------------------------------------|
|                          |                                                                    |   |
| By:                           | /s/ Mark      Schaftlein                                           |   |
|                          | Mark      Schaftlein                                                    |   |
|                          | Chief      Executive Officer andPrincipal      Accounting Officer  |   |
| Date:                         | May      12, 2010                                                       |   |

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