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FuelCell Energy wins DG contract for California resort

4 October 2006 -- FuelCell Energy, Inc., a manufacturer of distributed generation electric power plants for commercial and industrial customers, announced the sale of a 750 kW generating plant to a hospitality and entertainment resort in California. The unit was sold through FuelCell Energy's distribution partner, Alliance Power, Inc.

The facility will use the Direct FuelCell (DFC) power plant to provide baseload power around the clock for hotel operations, and will transform the plant's heat byproduct into hot water for the guests, adding to the system's overall operating efficiency.

Alliance Power, a FuelCell Energy distributor, will provide technical guidance during the installation phase that will be performed directly by the facility and operations group of the resort. This DFC power plant installation will be the second installation performed directly by an end user-- a trend that FuelCell Energy said it expects will increase. The expected operations date for the DFC power plant is April 2007 and FuelCell Energy will provide on-going maintenance services under a multi-year service contract. Financial terms of the sale were not disclosed.

Pacific Gas and Electric, administrator for The California Public Utilities Commission's (CPUC) Self-Generation Incentive Program for their service territory, has issued a reservation letter that will provide incentive funding of approximately $1.9 million for this fuel cell installation. In addition, late last week




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