Summary of ENVIRONMENTAL POWER CORP

ITEM 3.01. NOTICE OF DELISTING OR FAILURE TO SATISFY A CONTINUED LISTING RULE OR STANDARD; TRANSFER OF LISTING.

On September 22, 2009, Environmental Power Corporation (the "Company"), received a letter dated November 15, 2009 from the Nasdaq Listings Qualifications Department providing notification that for 30 consecutive business days the bid price of the Company's common stock on The Nasdaq Capital Market has closed below the minimum $1.00 per share required for continued inclusion under Nasdaq Listing Rule 5550(a)(2) (the "Minimum Bid Price Rule"). In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has 180 calendar days, or until March 15, 2010 (the "Required Date"), to regain compliance with the Minimum Bid Price Rule. The Nasdaq Listings Qualifications Department informed the Company that if, at any time before the Required Date, the bid price of the Company's common stock closes at $1.00 per share or more for a minimum of 10 consecutive business days, Nasdaq will provide written notification that the Company has achieved compliance with the Minimum Bid Price Rule, although Nasdaq may, in its discretion, require that an issuer maintain a bid price of at least $1.00 per share for a period in excess of 10 consecutive business days, but generally no more than 20 consecutive business days, before determining that the issuer has demonstrated an ability to maintain long-term compliance.

In the event the Company does not regain compliance with the Minimum Bid Price Rule by the Required Date, Nasdaq will provide written notification that the Company's securities will be subject to delisting from The Nasdaq Capital Market. At that time, the Company may appeal Nasdaq's determination to delist the Company's securities to a Nasdaq Hearings Panel. Alternatively, the Company may be eligible for an additional grace period if it meets the initial listing standards for The Nasdaq Capital Market, with the exception of the Minimum Bid Price Rule, in which case Nasdaq will notify the Company that it has been granted an additional 180 calendar day grace period to regain compliance with the Minimum Bid Price Rule.

The Company has not yet determined what action, if any, it will take in response to this notice, although the Company intends to monitor the closing bid price of its common stock between now and the Required Date. The Company will consider available options if its common stock does not trade at a level likely to result in the Company regaining compliance with the Minimum Bid Price Rule. The Company disclaims any intention or obligation to update the statements in this report for purposes of disclosing any action or response that the Company decides to take after the date hereof.

The Company's press release dated September 22, 2009 with respect to the notification from Nasdaq described above is attached to this Form 8-K as Exhibit 99.1 and is incorporated herein by reference.