INVESTMENT IN CROWNBUTTE WIND POWER, INC. AND RELATED PARTY RECEIVABLE	6 Months Ended
Jun. 30, 2011
INVESTMENT IN CROWNBUTTE WIND POWER, INC. AND RELATED PARTY RECEIVABLE	NOTE 8 – INVESTMENT IN CROWNBUTTE WIND POWER, INC. AND RELATED PARTY RECEIVABLE Nacel accounts for its investment in Crownbutte Wind Power, Inc. ("CWP") as an equity-method investment under ASC 323-10 “Investments – Equity Method and Joint Ventures”. For the quarter ended June 30, 2011, Nacel allocated losses from CWP of $199,381 to its investment account. Nacel also performed services for Crownbutte and received a five-year warrant to purchase 3,500,000 shares of Crownbutte common stock for $0.0225 per share. Nacel recorded this transaction as an addition to the investment account, using the fair value of $350,000 on the grant date. The net change in the investment account was $150,619, which is recorded as income from equity-method investment. This results in an investment balance of $414,324 at June 30, 2011. As a result of additional issuance of common stock by CWP, Nacel’s ownership percentage was reduced to 28% as of June 30, 2011. As of June 30, 2011, the aggregate market value of Nacel’s shares in CWP was $630,000. During the quarter ended June 30, 2011, Nacel advanced $324,551 to CWP for payment of various expenses. The advances do not bear interest and are due on demand. On May 31, 2011, Crownbutte granted Nacel the option to convert $111,687 of its payable to Nacel into Crownbutte common stock at a price of $0.0225 per share. CWP has a fiscal year end of December 31. CWP’S net loss for the six months ended June 30, 2011 and 2010 was $852,636 and $1,878,929, respectively. CWP's net loss for the quarters ended June 30, 2011 and 2010 was $731,534 and $1,485,359, respectively.

INVESTMENT IN CROWNBUTTE WIND POWER, INC. AND RELATED PARTY RECEIVABLE

6 Months Ended

Jun. 30, 2011

INVESTMENT IN CROWNBUTTE WIND POWER, INC. AND RELATED PARTY RECEIVABLE

NOTE 8 – INVESTMENT IN CROWNBUTTE WIND POWER, INC. AND RELATED PARTY RECEIVABLE

Nacel accounts for its investment in Crownbutte Wind Power, Inc. ("CWP") as an equity-method investment under ASC 323-10 “Investments – Equity Method and Joint Ventures”.

For the quarter ended June 30, 2011, Nacel allocated losses from CWP of $199,381 to its investment account. Nacel also performed services for Crownbutte and received a five-year warrant to purchase 3,500,000 shares of Crownbutte common stock for $0.0225 per share. Nacel recorded this transaction as an addition to the investment account, using the fair value of $350,000 on the grant date. The net change in the investment account was $150,619, which is recorded as income from equity-method investment. This results in an investment balance of $414,324 at June 30, 2011.

As a result of additional issuance of common stock by CWP, Nacel’s ownership percentage was reduced to 28% as of June 30, 2011. As of June 30, 2011, the aggregate market value of Nacel’s shares in CWP was $630,000.

During the quarter ended June 30, 2011, Nacel advanced $324,551 to CWP for payment of various expenses. The advances do not bear interest and are due on demand. On May 31, 2011, Crownbutte granted Nacel the option to convert $111,687 of its payable to Nacel into Crownbutte common stock at a price of $0.0225 per share.

CWP has a fiscal year end of December 31. CWP’S net loss for the six months ended June 30, 2011 and 2010 was $852,636 and $1,878,929, respectively. CWP's net loss for the quarters ended June 30, 2011 and 2010 was $731,534 and $1,485,359, respectively.

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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NACEL ENERGY CORP 10-Q/A