FSX:SE Fresnel Ramp with Alpha affects diffuse

Has anyone got this to work, as described in the SDK, under 5th example, "Fresnel w/Alpha Affects Diffuse"?

FresnelAlpha.jpg

Basically, object's edge gets blended with background. This could be used for some really neat effects.
I can get the diffuse channel in Fresnel to work with all kinds of effects is in first 4 examples, but as in the 5th example, nothing in Alpha channel seems to show up. I tried all dds formats, DXT1, DXT3, DXT5...
 
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