For things viewed through engine wash, explosions, and maybe for things viewed through the lensflare effects that are being tinkered with. Toned down a bit, and possibly applied only to the second LOD. Perhaps limiting the effect to non-capitol ships might be the way to go as well.
As has been mentioned, turrets do are not affected, but also any other mobile sub-models. Most installations, except the Arcadia for some reason are not affected either.
Well, under the right circumstances the effect would be a really good addition to the eye candy. It's a cool idea that just needs a little refinement.
Keep up the good work Bob.