FuelCell shares fall after size of DPUC projects disappoints

By Sharangdhar Limaye

BANGALORE, Dec 24 (Reuters) - FuelCell Energy Inc (FCEL.O: Quote, Profile, Research) said the Connecticut Department of Public Utility Control (DPUC) issued a draft decision approving 16.2 MW of projects using the company's energy power plants, a deal that fell short of investor expectations, and its shares fell more than 17 percent.

The approval for the projects, which incorporate six of its DFC3000 fuel cells, represents an estimated $43 million in potential product sales, the developer of fuel cell power plants said in a statement on Monday.

The final decision by the DPUC is scheduled for January 9, 2008, the company said.

Raymond James analyst Pavel Molchanov said by phone that the deal fell short of both market and his expectations. He had expected the approvals to be in the range of 20 MW to 30 MW.

"The state approved...16.2 MW of projects out of 68 that they (FuelCell) were in the running to get," Molchanov said.

Shares of the company were trading at $10.64, down $2.24, in morning trade, making them the second biggest percentage loser on the Nasdaq. (Editing by Deepak Kannan)