<SEC-DOCUMENT>0001193125-14-368490.txt : 20141208
<SEC-HEADER>0001193125-14-368490.hdr.sgml : 20141208
<ACCEPTANCE-DATETIME>20141010095236
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-14-368490
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20141010

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FUELCELL ENERGY INC
		CENTRAL INDEX KEY:			0000886128
		STANDARD INDUSTRIAL CLASSIFICATION:	MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690]
		IRS NUMBER:				060853042
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		3 GREAT PASTURE RD
		CITY:			DANBURY
		STATE:			CT
		ZIP:			06813
		BUSINESS PHONE:		2038256000

	MAIL ADDRESS:	
		STREET 1:		3 GREAT PASTURE ROAD
		CITY:			DANBURY
		STATE:			CT
		ZIP:			06813

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ENERGY RESEARCH CORP /NY/
		DATE OF NAME CHANGE:	19930328
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
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 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">October&nbsp;10, 2014 </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr.&nbsp;Brian Cascio </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Accounting Branch Chief </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">United States Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">450 Fifth
Street, N.W. </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, D.C. 20549 </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top"><B>Re:</B></TD>
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<TD VALIGN="bottom"><B>FuelCell Energy, Inc.</B></TD></TR>
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<TD VALIGN="bottom"><B>Form 10-K for the Fiscal Year Ended October&nbsp;31, 2013</B></TD></TR>
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<TD VALIGN="bottom"><B>Filed January&nbsp;6, 2014</B></TD></TR>
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<TD VALIGN="bottom"><B>File No.&nbsp;001-14204</B></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dear Mr.&nbsp;Cascio: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">This
correspondence is in response to your letter dated September&nbsp;26, 2014, to Michael Bishop, Senior Vice-President and Chief Financial Officer of FuelCell Energy, Inc. (&#147;FuelCell&#148;, &#147;FCE&#148; or the &#147;Company&#148;). In that
letter, you requested that FuelCell respond to your comments following a review of its 2014 Annual Report on Form 10-K filed on January&nbsp;6, 2014. We will respond to the comments in the order presented. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">For the Staff&#146;s reference, we have included, in this response letter, the original Staff comment in italics which is followed by FuelCell&#146;s
response. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Form 10-K for the fiscal year ended October&nbsp;31, 2013 </U></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Report of Independent Registered Public Accounting Firm, page 65 </U></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>1. We note that neither Management&#146;s Annual Report on Internal Control Over Financial Reporting presented on page 93 nor the Report of Independent
Registered Public Accounting Firm identify the version of the Committee of Sponsoring Organizations of the Treadway Commission&#146;s Internal Control &#150; Integrated Framework that was used to perform your assessment &#150; i.e., whether the 1992
Framework or Updated Framework issued in 2013 was used. In future filings, please include reports that identify the version of the COSO Integrated Framework you and your auditor used in the assessment. Please refer to Item&nbsp;308(a)(2) of
Regulation S-K and paragraphs 167(l) and (m)&nbsp;of PCAOB Auditing Standard No.&nbsp;2. </I></P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I>FuelCell Response: </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We acknowledge the Staff&#146;s comment and in future filings we and our auditor will include reports that identify the version of the COSO Integrated
Framework used in our assessment of internal control over financial reporting. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top"><FONT STYLE="font-size:8pt">FuelCell Energy, Inc.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>phone</I> 203 825.6000</FONT></TD>
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<TD VALIGN="top">3 Great Pasture Road&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>fax</I> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;203 825.6100</TD>
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<TD VALIGN="top">Danbury, CT 06813-1305&nbsp;&nbsp;&nbsp;&nbsp;www.fuelcellenergy.com</TD>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. Cascio </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">October 10, 2014 </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Note 1. Nature of Business, Basis of Presentation and Significant Accounting Policies </U></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Revenue Recognition, page 71 </U></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>2. We note the disclosure
in the fourth paragraph of your revenue recognition policy that construction services revenue is recorded as part of product sales. Please describe for us in greater detail the accounting basis for presenting service revenues within product sales.
Please tell us why you have not included construction service revenues from other service arrangements. </I></P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I>FuelCell Response: </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We acknowledge the Staff&#146;s comment and would like to clarify that construction services is referring to the engineering, procurement and construction
(&#147;EPC&#148;) services component of the overall fuel cell project. The installation of a power plant at a customer site includes significant site preparation which is included in the EPC component and is required to be completed before
integration of the fuel cell power plant. The majority of cost of this EPC scope includes procuring assets such as switch gear and ancillary equipment and building a complete power plant asset on concrete foundations with associated piping, cabling
and interconnection. The Company has recently been more frequently requested by customers to perform this EPC work in conjunction with construction, installation, and integration of a fuel cell power plant rather than our customers undertaking the
responsibility of this initial phase. This allows the Company to maintain control over quality and timeliness of the overall project and to alleviate this burden on customers. We only provide EPC services in instances where we are also contracted to
construct, install, and integrate a fuel cell power plant. Furthermore, when EPC services are provided they are typically included as additional scope in the fuel cell power plant sales contract. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Company believes that because the EPC services are such an integral component of the entire fuel cell project and is typically included in the same
contract, that inclusion of EPC revenue in product sales is more meaningful to investors, rather than combined with service agreement and license revenues. Service agreement and license revenues substantially includes revenue recognized under
separately priced extended warranty agreements (referred to in our filings as service agreements) whereby we maintain a customer&#146;s power plant over a fixed period of time under a separate service agreement subsequent to completion of the fuel
cell power plant construction contract. We will expand our disclosures in future filings to explain our rationale for inclusion of EPC revenues within the product sales financial statement caption. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. Cascio </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">October 10, 2014 </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>3. In this regard, please tell us how you have concluded that you are not required to report revenues for
each product and service or each group of similar products and services in accordance with FASB ASC 280-10-50-40. Please tell us how you have concluded that, for example, service agreements and license revenues or product sales and construction
services are considered similar. </I></P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I>FuelCell Response: </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We acknowledge the Staff&#146;s comment and our response to the Staff&#146;s question #2 above discusses our explanation for inclusion of EPC and product sales
within the same revenue caption as they are integral in delivering a full fuel cell turn-key project. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">With regard to inclusion of separately priced
extended warranty agreements (service agreements) and license and royalty revenues within the same revenue caption, the Company believes that it has followed the guidance of FASB ASC 280-10-50-40 by grouping similar services from external customers.
Service agreement revenue is the result of providing operations and maintenance services on our customers&#146; completed fuel cell power plants and is recorded over the service period consistent with the guidance under ASC 605-20-25-1. License and
royalty revenue is the result of providing a specific customer access rights to our technology and/or regional sales exclusivity whereby the license revenue is recorded over the license period and royalties are recorded upon being earned. The
license agreement in place with this customer has provisions for the parties to work together in sharing know how to service fuel cell plants. The service agreement in place with this customer includes provisions whereby royalties are payable as
certain service milestones occur. Thus, the Company views service and license and royalty revenue as similar revenue streams over these long-term agreements. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In determining the proper classification of license and royalty revenues, the Company also reviewed Rule 5-03 of Regulation S-X and determined that separate
classification on the Consolidated Statements of Operations was not required as license and royalty revenue did not represent 10 percent of the sum of all classes of revenue identified within Rule 5-03 of Regulation S-X. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Note 2. Acquisitions, page 75 </U></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>4. We see that on
December&nbsp;20, 2012 you acquired the remaining 69 percent ownership of Versa Power Systems, Inc. through the issuance of approximately 3.5&nbsp;million shares. We also see that you accounted for the transaction as a step-acquisition and recorded
an impairment charge of $3.6 million in the fourth quarter of 2012. Please describe for us in greater detail your accounting for the business combination achieved in stages as proscribed in paragraphs 25-9 and 25-10 of FASB ASC 805-10. In
particular, please tell us how you remeasured and valued your previously held equity interest in the acquiree at its acquisition-date fair value. In this regard, please tell us how your current disclosure complies with the requirements of FASB ASC
805-10-50-2(g). </I></P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. Cascio </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">October 10, 2014 </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I>FuelCell Response: </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We acknowledge the Staff&#146;s comment. The Company owned 39 percent of Versa Power Systems, Inc. (&#147;Versa&#148;) prior to December&nbsp;20, 2012 and
accounted for Versa using the equity method of accounting. Additionally, the Company had provided Versa with debt funding through several convertible notes prior to December&nbsp;30, 2012. On October&nbsp;5, 2012, the Company signed a non-binding
term sheet with the four other owners of Versa to purchase the remaining 61 percent of Versa in exchange for shares of the Company&#146;s common stock. As the offer price per share of Versa was significantly lower than the Company&#146;s carrying
value per share, the Company identified this as an indicator that the investment in Versa was impaired. The Company remeasured the fair value of its existing investment in Versa by multiplying the price per share offered and agreed to for the
remaining shares in Versa by the total number of shares of Versa owned by the Company and (b)&nbsp;the carrying value of convertible debt owed by Versa to the Company. Due to the fact a third party market participant purchasing Versa would have to
not only pay the owners for their shares in Versa but would also trigger the change in control provisions in the convertible notes owed to the Company, and would therefore have to either repay the loans or inject sufficient cash into Versa to repay
the loans, the Company determined that the carrying value of the convertible notes should be considered in assessing the fair value of Versa from the perspective of a market participant. On December&nbsp;20, 2012, prior to filing the Form 10-K for
the fiscal year ended October&nbsp;31, 2012, the Company finalized the acquisition of the remaining 61 percent ownership interest in Versa with terms consistent with those agreed to in the October&nbsp;5, 2012 non-binding term sheet. The transaction
was consummated on an arm&#146;s-length basis by knowledgeable, unrelated parties, and therefore, the price per share negotiated and agreed to by the parties was considered fair value. In accounting for the business combination achieved in stages,
the re-measured fair value of our existing investment in Versa was added to the fair value of the Company&#146;s common shares that were provided to the other four owners of Versa in exchange for their shares in Versa in order to determine the
consideration for the acquisition consistent with the guidance in ASC 805-10-25-9. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Company has reviewed the disclosures to ensure compliance with
FASB ASC 805-10-50-2(g) and notes the following: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">The Company will include in future filings the acquisition-date fair value of the equity interest in Versa immediately prior to the acquisition date to comply with FASB ASC 805-10-50-2(g)(1). </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">The Company disclosed the amount of the impairment loss to comply with FASB ASC 805-10-50-2(g)(2) and there was a separate line item on the income statement for this impairment, however, this was not directly outlined
in the footnote disclosure. We will include this information in future filings to comply with the disclosure requirements. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Although the Company indicated that the step-acquisition method was used, the Company did not provide further clarify as to which valuation technique was used. We will expand our disclosures in future filings to include
that the market approach was used and our reasons for selecting this approach to comply with FASB ASC 805-10-50-2(g)(3). </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">The Company will include in future filings information to assess the inputs used to develop the fair value of the equity interest in Versa immediately prior to acquisition to comply with FASB ASC 805-10-50-2(g)(4).
</TD></TR></TABLE>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. Cascio </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">October 10, 2014 </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Note 10. Debt and Leases, page 70 </U></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>5. We see that with the issuance of the $38 million Senior Unsecured Convertible Notes in June 2013, you recorded embedded derivatives with a fair value of
$3.2 million upon issuance which were subsequently valued at $4.7 million at year-end. Please tell us how your fair value disclosure for these instruments complies with FASB ASC 820-10-50. In this regard, please tell us how you have applied this
disclosure guidance to any other assets or liabilities recorded at fair value, if significant. </I></P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I>FuelCell Response: </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We acknowledge the Staff&#146;s comment. As discussed in the Company&#146;s Form 10-Q filing for the Quarter Ended July&nbsp;31, 2014, all of the outstanding
principal of the $38 million Senior Unsecured Convertible Notes (the &#147;Notes) were converted during fiscal year 2014. There was a high probability that the Notes would be converted which is confirmed with the conversions of all the Notes during
the course of Fiscal Year 2014. The information to comply with FASB ASC 820-10-50 was included in Item&nbsp;7a. Quantitative and Qualitative Disclosures About Market Risk on Form 10-K for the Fiscal Year Ended October&nbsp;31, 2013. The disclosures
will be expanded in the Debt footnote in future filings to comply with FASB ASC 820-10-50. The expanded disclosure will include the following information: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The change in control put redemption feature and the interest make-whole payments upon conversion embedded in the Senior Unsecured Convertible Notes meet the
definition of derivatives that each require bifurcation from the host contract. As a result of the conversion of all the outstanding Senior Unsecured Convertible Notes, there is no remaining derivative balance at October&nbsp;31, 2014. The aggregate
fair value of these derivatives at October&nbsp;31, 2013 was $4.7 million. The fair values were determined using a lattice-based valuation model. In determining the fair value of these bifurcated derivatives, various assumptions were used. Stock
price was projected assuming a log-normal distribution. The stock volatility, the interest rate curve, the borrowing cost and credit spread are all assumed to be deterministic. The value was calculated as the difference between the value of the
original note and a note with no change of control or make-whole payments upon conversion features. The inputs used to estimate the fair value of the control put redemption feature and make-whole payment embedded derivatives include several
significant unobservable inputs (Level 3). </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. Cascio </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">October 10, 2014 </P>
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 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Company believes that it has addressed the Staff&#146;s comments. FuelCell acknowledges the following:
</P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">The Company is responsible for the adequacy and accuracy of the disclosure in the filing; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to the filing; and </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">The Company may not assert staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States. </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Sincerely, </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


<TR>
<TD WIDTH="100%"></TD></TR>


<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Michael S. Bishop</P></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Michael S. Bishop</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Sr. Vice President&nbsp;&amp; CFO</TD></TR>
</TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="97%"></TD></TR>


<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">cc:</TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom">Arthur A. Bottone, President&nbsp;&amp; CEO, FuelCell Energy, Inc.</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom">Peter J. Schaeffer, Partner, Patterson Belknap Webb&nbsp;&amp; Tyler LLP</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom">Richard Krantz, Partner, Robinson&nbsp;&amp; Cole</TD></TR>
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